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Sustainability Of Fiscal Policy: Estimating A Fiscal Reaction Function For Turkey
2018
Journal:  
Uluslararası Yönetim İktisat ve İşletme Dergisi
Author:  
DOI:  
10.17130/ijmeb.2018239936
Abstract:

In this study a Fiscal policy analysis is used for Turkey between the periods 2006:1-2016:2 to assess the sustainability of fiscal policy. A fiscal reaction function is estimated to analyze the effects of public debt and fluctuations in GDP on the primary balance. The fiscal reaction function is obtained from the intertemporal government budget constraint in order to depict the behaviour of government towards the public debt. The results suggest that the primary budget balance reacts significantly to the previous increase in GDP gap.

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Uluslararası Yönetim İktisat ve İşletme Dergisi

Journal Type :   Uluslararası

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