EconPapers    
Economics at your fingertips  
 

Government Spending Multiplier in Turkey

Cem Çebi ()

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

Abstract: This study aims to measure the size of the government spending multiplier in Turkey for post-2001 financial crisis period within a structural VAR framework. The analysis demonstrates that a positive shock to government spending tends to increase output, tax, real interest rate on impact and the size of the fiscal multiplier is relatively large at first few quarters. The fiscal multiplier reaches a peak value of 1.5 at second quarter and then starts to diminish. Furthermore, investigating the effects of the components of government spending reveals the fact that government investment expenditures, rather than consumption expenditures, have a profound impact on output at first few quarters. However, there is no evidence that multiplier effect of government investment higher than government consumption at the end of the first year.

Keywords: Government spending multiplier; SVAR (search for similar items in EconPapers)
JEL-codes: E62 H30 (search for similar items in EconPapers)
Date: 2015
New Economics Papers: this item is included in nep-ara, nep-cwa and nep-mac
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://www.tcmb.gov.tr/wps/wcm/connect/EN/TCMB+EN ... g+Paperss/2015/15-15 (application/pdf)

Related works:
Journal Article: The Government Spending Multiplier in Turkey (2017) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:tcb:wpaper:1515

Access Statistics for this paper

More papers in Working Papers from Research and Monetary Policy Department, Central Bank of the Republic of Turkey Contact information at EDIRC.
Bibliographic data for series maintained by Sermet Pekin () and Ilker Cakar () and ().

 
Page updated 2021-03-28
Handle: RePEc:tcb:wpaper:1515