Abstract:

The annual public expenditure (PE) and tax revenues (TR) using the data, put forward by the peacock and the wiseman "Displacement Thesis" were analyzed for the period 1924-2016 in terms of the validity of coups in Turkey. The analyzed period, which extends from the founding of the Republic of Turkey for the first year until today, covers all the data of the country and includes extraordinary period in the history of the country, such as war and coup. The validity of the displacement thesis was tested using the Kapetanios (2005) test, which permits multiple structural breaks, taking into account structural breaks. Both public expenditure and tax revenue series are stable under structural breaks. When considering the dates of the series in breaking leap occurred in Turkey the hypothesis has been found to be generally valid.