Effect of Government Expenditure on GDP in the Turkish Economy
The objective of this article is to investigate the effect of government expenditure on GDP in Turkey from 2000Q1-2015Q4 by the superexogeneity test. As a consequence of satisfying both conditions of weak exogeneity and structural invariance, government expenditure is super exogenous to GDP which...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Econometric Research Association
2017-09-01
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| Series: | International Econometric Review |
| Subjects: | |
| Online Access: | http://www.era.org.tr/makaleler/336791.pdf |
| Summary: | The objective of this article is to investigate the effect of government expenditure on
GDP in Turkey from 2000Q1-2015Q4 by the superexogeneity test. As a consequence of
satisfying both conditions of weak exogeneity and structural invariance, government
expenditure is super exogenous to GDP which implies that the policy regime shift for the
period of the Global Financial Crisis in Turkey did not cause structural variance in
government expenditure. Indeed, the Lucas Critique which indicates that policy regime
shifts cause structural breaks, appears to be refuted. |
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| ISSN: | 1308-8793 1308-8815 |