Central Bank independence and financing government spending

Cataloged from PDF version of article.This paper incorporates the effect of the central bank's independence into the government's optimum financing model. When the implications of the hypotheses are tested for eighteen OECD countries, this paper shows that countries with higher levels of central bank independence generate less seigniorage revenue

Measuring Monetary Policy for a Small Open Economy: Turkey

Cataloged from PDF version of article.This paper proposes a measure to assess the monetary policy for a highly inflationary small open economy: Turkey. The empirical evidence suggests that positive innovations in the spread between the Central Bank's interbank interest rate and the depreciation rate of the local currency mimic the properties of the tight monetary policy. These innovations, when they are positive, decrease income and prices, and appreciate the local currency. For prices and the exchange rate, the effects are permanent; but for income the effect is transitory. (c) 2007 Elsevier Inc. All rights reserved

Stock Market Return and Volatility: Day-of-the-week Effect

Cataloged from PDF version of article.This paper examines the stock market returns and volatility relationship using US daily returns from May 26, 1952 to September 29, 2006. The empirical evidence reported here does not support the proposition that the return-volatility relationship is present and the same for each day of the week. © 2010 Springer Science+Business Media, LLC

Effects of Soccer on Stock Markets: The Return-Volatility Relationship

Cataloged from PDF version of article.This paper assesses the effects of domestic soccer teams' performances against foreign rivals on stock market returns as well as on the return-volatility relationship. Data from Chile, Spain, Turkey and the United Kingdom support propositions that soccer teams results in international cups affect stock market returns and the return-volatility relationship. Evidence from Spain and the UK, soccer powerhouses, suggests that losses are associated with lower returns and higher risk aversion but evidence from Chile and Turkey, where soccer is the most important sport but teams are not as successful, reveals that wins are associated with higher returns and lower risk aversion. Crown Copyright (C) 2012 Published by Elsevier Inc. on behalf of Western Social Science Association. All rights reserved

Turkish Monetary Policy and Components of Aggregate Demand: A VAR Analysis with Sign Restrictions Model

Cataloged from PDF version of article.This article estimates the effects of monetary policy on components of aggregate demand using quarterly data on Turkish economy from 1987-2008 by means of structural Vector Autoregression (VAR) methodology. This study adopts Uhlig's (2005) sign restrictions on the impulse responses of main macroeconomic variables to identify monetary shock. This study finds that expansionary monetary policy stimulates output through consumption and investment in the short-run. However, expansionary monetary policy is ineffective in the long-run

Soccer, Stock Returns, and Fanatiscism: Evidence from Turkey

Cataloged from PDF version of article.This paper assesses the effect of three major soccer teams' wins on the returns of the Istanbul Stock Exchange (ISE). We argue that the effect of soccer wins on ISE returns increases with the fanaticism of the teams' supporters. (C) 2009 Western Social Science Association. Published by Elsevier Inc. All rights reserved

Output-Employment Relationship across the Employment Status: Evidence from Turkey

Cataloged from PDF version of article.This paper investigates output-employment relationships across different employment statuses and formal versus informal employment divisions for Turkey. Even if we fail to find a long-run relationship between aggregate output and total employment, there are long-run relationships between the aggregate output with all of the formal employment statuses. A further investigation for short-run relationships reveals no statistically significant relationships between aggregate output and total employment and between aggregate output and casual employment but there is a significant short-run relationship between aggregate output and total regular employment. Thus, a sustainable economic growth policy should aim to create formal and regular employment. © 2013 Taylor & Francis

The relative effects of crude oil price and exchange rate on petroleum product prices: Evidence from a set of Northern Meditteranean countries

Cataloged from PDF version of article.This paper provides a set of empirical evidence from five Northern Mediterranean countries that are subject to similar refinery reference prices regarding the relative sensitivity of crude oil prices and exchange rate on (pre-tax) petroleum product prices. The empirical evidence reveals that a one percent increase in exchange rate (depreciation) increases petroleum product prices less than a one percent increase in crude oil prices does in the long run. In the short run, however, a one percent increase in exchange rate increases petroleum product prices more than a one percent increase in crude oil prices does. © 2014 Elsevier B.V. All rights reserved

External Income Shocks and turkish Exports: A Sectoral Analysis

Cataloged from PDF version of article.This study assesses how the growth rates of Turkish trading partners affected Turkish exports in various sectors for the period 1996:01 to 2009:12. To determine this, we modeled the destination countries and the export demand for each sector separately. Each model is estimated as a system of equations, where each equation represents a country using a seemingly unrelated regression method. The empirical evidence suggests that Motor Vehicles, Basic Metals, and Radio-Television are the sectors with the highest income elasticities for most of the analyzed countries, whereas the Food Products and Beverages sector has the lowest income elasticity. We also performed simulations for the effect of a 1% increase in the growth rate of each country on Turkish exports. © 2013 Elsevier B.V

Effects of Growth Volatility on Economic Performance

Cataloged from PDF version of article.This paper examines the relationship between growth and growth volatility for a small open economy with high growth volatility: Turkey. Quarterly data for the period from 1987Q1 to 2007Q3 suggests that growth volatility reduces growth and that this result is robust under different specifications. This paper contributes to the literature by focusing on how growth volatility affects a set of variables that are crucial for growth. Empirical evidence from Turkey suggests that higher growth volatility reduces total factor productivity, investment, and the foreign currency value of local currency (depreciation). Moreover, it increases employment, though the evidence for this is not statistically significant. © 2011 Elsevier B.V. All rights reserved