MARKUPS AND WELFARE COSTS OF BUSINESS CYCLES IN TURKEY

Yilmaz E.

BULLETIN OF ECONOMIC RESEARCH, cilt.66, sa.4, ss.346-357, 2014 (SSCI) identifier identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 66 Sayı: 4
  • Basım Tarihi: 2014
  • Doi Numarası: 10.1111/j.1467-8586.2012.00451.x
  • Dergi Adı: BULLETIN OF ECONOMIC RESEARCH
  • Derginin Tarandığı İndeksler: Social Sciences Citation Index (SSCI), Scopus
  • Sayfa Sayıları: ss.346-357
  • Yıldız Teknik Üniversitesi Adresli: Evet

Özet

The paper, using a simple theory-based measure of the variations in aggregate economic efficiency in a New Keynessian structure, analyses the nature of the business fluctuations and estimates their welfare costs in Turkey during the period 1998-2009. The measure contains two components: a price markup and a wage markup. It seems that the latter mainly drives the fluctuations in Turkey. The paper also shows that inefficient fluctuations in the allocation of resources do generate moderate welfare costs on average. However, the aggregate efficiency costs increase much more during deep recessions.