The Relationship Between Government Size and Economic Growth: Evidence From a Panel Data Analysis

Using a panel data analysis, the relationship between government size and economic growth is investigated for the 1994-2001 period. The results show that relatively small sizes of government are detrimental to economic growth, while medium sized government affects it positively.government size, economic growth, panel data, new European Union members and candidates

A Preliminary Analysis on the Long run Relationship between Taxation and Growth in Turkey

Although higher taxation may lead to a fall in growth rates through distortion of decisions to invest and save, certain tax policies of the government may also enhance economic growth when government investments aiming at improving the infrastructure induces private investment. This study aims to explore the effects of taxation on growth in Turkey during the period of 1975-2004, by the use of time series analysis. In addition to total taxation, direct and indirect taxes are considered separately (income tax, goods and services tax and foreign trade tax). Engle-Granger two-step cointegration results show that as total taxation/GDP ratio and trade taxation/GDP ratio increase, growth rate decreases. There is no evidence of a long run relationship between goods and services tax/GDP ratio and growth. As for the nondistortionary income taxation, the relationship is in the reverse direction: as growth rate increases, income tax/GDP ratio increases.

Personal Income Tax Elasticity in Turkey: 1975-2005

The estimation of tax elasticity; the response of tax revenues to changes in income, is important for at least three reasons: i) formulating government budgets and monitoring tax collections (Sen, 2002), ii) the specification of tax functions, iii) the automatic stabilizing properties of the tax system and the public sector deficit (Hutton, Lambert; 1980, 1982). Among the various approaches to tax elasticity calculation in literature (Tanzi, 1969, 1976; Greytak and McHugh, 1978; Hutton and Lambert, 1980; Ehdaie, 1990), the most famous approach is Tanzi’s Method due to its simplicity and the consensus about its correctness of elasticity estimates. Johansen cointegration tests for the period 1975 - 2005 show that personal income tax elasticity in Turkey is around 0.95, indicating almost unit elasticity. Increasing income can be considered as insurance to maintain an equivalent increase in tax revenue; however it doesn’t seem to be the way to obtain higher tax revenues.Personal income tax, tax elasticity, Tanzi method

The Effects of Political Fragmentation on Fiscal Deficits in Turkey

Recent theoretical and empirical research has considered how differences in political arrangements affecting national policy formation might explain variation in fiscal policies pursued (Volkerink and de Haan, 2001). The experience of high government deficits of developed nations in the 1980s led researchers to analyze the reasons for this and among other factors they have argued that political variables could also explain budget deficits (Sutter, 2003). This study aims to investigate the effects of the political parties for fiscal deficits in Turkey for 1976-2004 period. Our results show that the most important variable in explaining the budget deficit to GDP ratio in Turkey is its lagged value. The political dispersion index variable, which measures the effect of the number of parties in the government in power, has proven to have a minor effect. Only the coalition governments with two or more parties are found to have higher budget deficit to GDP ratios. Ideology of the governments in power is important for the budget deficit to GDP ratio when it is considered with the number of parties in the government in power. In general, it can be said that polarization, fragmentation and ideology of the governments do not play an important role in explaining the budget deficit to GDP ratio.Budget deficits, political fragmentation, dispersion indexes

Turkiye'de Bolgesel Gelirin Yakinsamasi: Gelir Dagilimi Acisindan Bir Degerlendirme

Gelir dagilimindaki adaletsizlik ve yoksulluk gunumuzde dunyanin karsilastigi en buyuk sorunlardandir. Kisi basina gelir duzeyinin dusuk oldugu Turkiye’de, gelir dagiliminin bozuk olmasi bolgesel yoksulluk sorununu da beraberinde getirmektedir. 2000 yýlýna ait kisi basina GSYIH endeks verilerine gore, Marmara ve Ege Bolgeleri Turkiye ortalamasinin uzerinde, Akdeniz ve Ic Anadolu bolgeleri Turkiye ortalamasina yakin, Karadeniz, Guneydogu Anadolu ve Dogu Anadolu Bolgeleri ise Turkiye ortalamasinin altinda bir gelir seviyesine sahiptir. Gelir dagilimi esitsizliginin giderilmesinin bir yolu da bolgeler arasý kisi basina gelir duzeylerinin birbirlerine yakin hale getirilmesi olabilir. Bu politikayi uygulayabilmek icin, ilk olarak bolgeler arasi gelirin yakinsayip yakinsamadiginin tespit edilmesi gerekmektedir. Bu konudaki calismalar (Azzoni, 2001; Mccoskey, 2002; Tomljanovich ve Vogelsang, 2002) genellikle panel birim kok testlerini kullanmaktadirlar. Bu testler, geleneksel birim kok testlerine gore istatistiksel olarak daha guclu araclardir. Diger bir ifadeyle, geleneksel birim kok testleri, birim kokun varligina dair bos hipotezi reddetmekte gucsuz kalmaktadirlar (Fleissig ve Strauss, 1999). Panel birim kok testleri, ele alinan panel icin ortak bir birim kokun varligini test etmektedir. Ortak bir birim kok bulunduguna dair bos hipotezin reddedilmesi, panel uyelerinin soz konusu degisken acisindan birbirine yakinsadigini gostermektedir. Bu calýsmada, Turkiye’de bolgelerarasi gelirin ve kisi basina gelirin yakiýnsayip yakinsamadiginin arastirilmasi amaclanmaktadir. Bunun icin, 1990:1–2001:4 donemini kapsayan ceyrekli veriler kullanilarak, Turkiye’nin yedi ana bolgesine (Akdeniz, Dogu Anadolu, Ege, Guneydogu Anadolu, Ic Anadolu, Karadeniz ve Marmara) ait kisi basina GSYIH’nin yakinsamasi yeni gelistirilen panel birim kok testleri kullanilarak test edilecektir. Test sonuclari, Turkiye’nin bolgelerarasi gelir dagilimi farkliliklarini ortaya koyacaktir. Ampirik bulgular isiginda, Turkiye’nin (olasi) gelir dagilimi esitsizligine karsi alinabilecek alternatif onlemler ve cozum onerileri sunulacaktir.

Turkiye'de Makroekonomik Istikrar Ve Ozellestirme

Kuresellesmeyle gelen yeni ekonomi kavramý, ulkelerin liberalizasyon, deregulasyon ve ozellestirme calismalarinin hizlandirmasina yol acmistir. Ozellestirme, piyasa aksakliklarindan ve yanlis yapilanmalardan dogan zararlari ortadan kaldirarak, ulkelere sosyal refah artirici verimlilik kazanclari getirir. Ozellestirmenin hangi kosullar altinda yapilacagi da ozellestirmenin basarili olabilmesi icin cok onemlidir. Bu calismada makroekonomik istikrarin Turkiye’de devletin ozellestirme cabalarina etkileri arastirilmaktadir. Incelenecek olan hipotez; zaten makroekomik istikrari yakalamakta ve surdurmekte guçluk ceken Turkiye ekonomisi’nin, bu sebepten dolayi ozellestirmede de basarisiz oldugudur. Bu hipotezi test etmek icin, devletin elde ettigi ozellestirme gelirlerini reel buyume, enflasyon, döviz kuru, iþsizlik, butce aciklari, devletin borc stogu, faiz oranlari ve kamu ve ozel sektor yatirimlarini iceren makroekonomik degiskenler üzerine tahmin eden bir model kullanilmistir. Sonuclar, tum faktorler (temel makroekonomik, kamu sektoru ve finansal) birarada degerlendirildiginde, kamu sektoru ve finansal degiskenlerin en onemlileri oldugu isaret etmektedir. Butce aciklari, ozellestirmeyi ters yönde etkilerken, borc stogunun etkisi belirsizdir. Döviz kuru devaluasyonlarý ve ozel sektor yatirimlarinin ise, ozellestirme gelirlerine artirici etkileri oldugu bulunmustur.

Microscopic Aspects of Stretched Exponential Relaxation (SER) in Homogeneous Molecular and Network Glasses and Polymers

Because the theory of SER is still a work in progress, the phenomenon itself can be said to be the oldest unsolved problem in science, as it started with Kohlrausch in 1847. Many electrical and optical phenomena exhibit SER with probe relaxation I(t) ~ exp[-(t/{\tau}){\beta}], with 0 < {\beta} < 1. Here {\tau} is a material-sensitive parameter, useful for discussing chemical trends. The "shape" parameter {\beta} is dimensionless and plays the role of a non-equilibrium scaling exponent; its value, especially in glasses, is both practically useful and theoretically significant. The mathematical complexity of SER is such that rigorous derivations of this peculiar function were not achieved until the 1970's. The focus of much of the 1970's pioneering work was spatial relaxation of electronic charge, but SER is a universal phenomenon, and today atomic and molecular relaxation of glasses and deeply supercooled liquids provide the most reliable data. As the data base grew, the need for a quantitative theory increased; this need was finally met by the diffusion-to-traps topological model, which yields a remarkably simple expression for the shape parameter {\beta}, given by d*/(d* + 2). At first sight this expression appears to be identical to d/(d + 2), where d is the actual spatial dimensionality, as originally derived. The original model, however, failed to explain much of the data base. Here the theme of earlier reviews, based on the observation that in the presence of short-range forces only d* = d = 3 is the actual spatial dimensionality, while for mixed short- and long-range forces, d* = fd = d/2, is applied to four new spectacular examples, where it turns out that SER is useful not only for purposes of quality control, but also for defining what is meant by a glass in novel contexts. (Please see full abstract in main text