EconPapers    
Economics at your fingertips  
 

Forecasting the Growth Cycles of the Turkish Economy

Hüseyin Özbilgin ()

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

Abstract: This paper first specifies the medium-term growth cycles for the Turkish economy. The impact of the frequency transformation methods and the time-serious filters on cycles and potential output are discussed. Then a composite leading indicator (CLI) is constructed that is correlated with the third lead of the GDP with a coefficient of 0.9. The CLI signals 11 out of 13 turning points in the Turkish growth cycle in the 1993-2016 period. The CLI is coincident with the remaining two turning points, hence still providing early warning. Within the same period, only two false signals are generated by the CLI. Finally, building on the seminal paper by Neftci (1982), a method for computation of the turning point probabilities is developed. The virtue of the method is that it takes into account the observed deepness and steepness in the series.

Keywords: Time-series filters; Growth cycles; Composite leading indicators; Turning point probabilities (search for similar items in EconPapers)
JEL-codes: E32 E37 E66 (search for similar items in EconPapers)
Date: 2017
New Economics Papers: this item is included in nep-ara, nep-for 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/2017/17-15 (application/pdf)

Related works:
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:1715

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 2021-02-22
Handle: RePEc:tcb:wpaper:1715