Özet:

In this paper validity of the Fiscal Theory of Price Level in Turkey is investigated by using quarterly data and by applying Johansen cointegration test, vektor error correction model and impulse-response functions. The empirical analysis is applied over the period of 1988.4-2013.1 and the subperiods of 1988.4-2001.1 and 2001.2-2013.1. Empirical evidence related to the period of 1988.4-2001.1 indicates a non-Ricardian regime in Turkey, whereas it shows the validity of a Ricardian regime for the period 2001.22013.1. The findings related to the whole period, 1988.4-2013.1, imply that the effects of the economic policy implementation related to 1988.4-2001.1 period outweigh the effects of 2001.2-2013.1 period, meaning the validity of a non-Ricardian regime for the whole period as well.

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