Welfare Costs of Business Cycles in Turkey
METROECONOMICA, cilt.65, sa.2, ss.195-211, 2014 (SSCI, Scopus)
- Yayın Türü: Makale / Tam Makale
- Cilt numarası: 65 Sayı: 2
- Basım Tarihi: 2014
- Doi Numarası: 10.1111/meca.12033
- Dergi Adı: METROECONOMICA
- Derginin Tarandığı İndeksler: Social Sciences Citation Index (SSCI), Scopus
- Sayfa Sayıları: ss.195-211
- Yıldız Teknik Üniversitesi Adresli: Evet
Özet
How large are welfare costs related to economic aggregate fluctuations is a topic of great concern among economists at least since Lucas's (1987) model. Our analysis assesses the magnitude of such costs for Turkey by means of two approaches: aggregate and disaggregate. The former approach uses aggregate data employing three alternative trend-cycle decomposition methods which are Lucas' classical set-up with deterministic linear trend for consumption, Hodrick and Prescott filter and one in which consumption trend is stochastic and whose implementation is performed using Beveridge-Nelson decomposition. The results of both approaches suggest that Turkey has high welfare costs associated with business cycles.