Do Private Savings Offset Public Savings in Turkey?

Muhittin, Kaplan (2012) Do Private Savings Offset Public Savings in Turkey? In: 3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo.

[img]
Preview
Text
25. Do Private Savings Offset Public Savings in Turkey.pdf

*- Download (328kB) | Preview

Abstract

The issue of whether public savings offset private savings, and visa vice, has important implications for the effectiveness of fiscal policy. This study examines long-run relationship between public and private savings rates using annual Turkish data for the period 1975-2005. The result of Engle-Granger cointegration test has shown that there is no long-run relationship between private and public savings ratios. However,once endogenously determined structural break is allowed, the test results confirm the existence of the cointegration relationship between private and public savings. Econometric estimation of the offset coefficients using both FMOLS and DOLS yields values of between -0.11 and -0.82. The results also indicate that the potency of fiscal policy significantly reduced with the liberalization of financial markets.Keywords: Savings, Offset coefficient, Ricardian Equivalence, DOLS, FMOLS. JEL Classificiation: E6, H6, E21

Item Type: Conference or Workshop Item (Paper)
Subjects: H Social Sciences > H Social Sciences (General)
H Social Sciences > HB Economic Theory
H Social Sciences > HG Finance
H Social Sciences > HJ Public Finance
Divisions: Faculty of Economics > Management Department
Depositing User: Users 173 not found.
Date Deposited: 31 Oct 2012 12:26
Last Modified: 31 Oct 2012 12:26
URI: http://eprints.ibu.edu.ba/id/eprint/1299

Actions (login required)

View Item View Item