Özet:

Maki (2012) extended cointegration tests with an unknown number of breaks using four models and studied the money demand of USA. However, two of four models (level shift with trend and and regime shift models) are not consistent with written equation (2 and 3) in the article. In this context, the purpose of this study is to reveal the data set used in the article and to test Purchasing Power Parity (PPP) hypothesis for Turkish economy. The stability of the relationship between variables is assessed by using the tests proposed by Bai ve Perron (2003). To determine the long-run relationship, when multiple regime shifts are identified endogenously, we test the long-run relationship by using cointegration with multiple structural breaks proposed by Kejriwal (2008) and Maki (2012). Maki (2012) cointegration test result does not support PPP hypothesis while Kejriwal (2008) test results reveal evidence supporting PPP hypothesis. On the other hand, the strong form of the PPP hypothesis is not supported for the post-2001 period in the Turkish economy.

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