Özet:

A change in the long-term interest rate is a key function of accumulated savings, the cost of borrowing, the sustainability of fiscal deficits and making decisions related to investments. In this study, it is aim to investigate determinants of long term interest rates in OECD countries. In this context, the study was conducted on 33 OECD countries for the period 2006-2014 by using Augmented Mean Group (AMG) methodology. This study examines the effects of changes in gross domestic product (gdp), government debt, inflation and short term interest rates on long term interest rates. In respect of empirical findings indicate that inflation and short term interest rates have turned out to significant and positive impact on the long term interest rate of OECD countries. However, the impact of gross domestic product (gdp) and government debt on long term interest rates are estimated to be negative and statistically significant. In addition, the effect of short term interest rate is higher than the effect of gross domestic product (gdp), government debt and inflation.

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