Role of Investment Shocks in Explaining Business Cycles in Turkey

Canan Yuksel ()

Working Papers from Research and Monetary Policy Department, Central Bank of the Republic of Turkey

Abstract: This paper aims to understand the role of investment shocks in explaining output fluctuations observed in Turkish economy. For this purpose a small open economy DSGE model is estimated on Turkish data for 2002:1-2012:2 period by Bayesian methods. Variance decomposition analysis shows that permanent technology shock is the key driving force of business cycles in Turkish economy and the role of investment shock is less spelled.

Keywords: Open economy; Bayesian estimation; Business cycle (search for similar items in EconPapers)
JEL-codes: C11 E3 F4 (search for similar items in EconPapers)
Date: 2013
New Economics Papers: this item is included in nep-ara, nep-dge and nep-mac
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:tcb:wpaper:1312

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