Role of Investment Shocks in Explaining Business Cycles in Turkey

Role of Investment Shocks in Explaining Business Cycles in Turkey

Title : Role of Investment Shocks in Explaining Business Cycles in Turkey
Number : 13/12
Author(s) : Canan Yüksel
Language : English
Date : February 2013
Abstract : This paper aims to understand the role of investment shocks in explaining output fluctuations observed in Turkish economy. For this purpose a small open economy DSGE model is estimated on Turkish data for 2002:1-2012:2 period by Bayesian methods. Variance decomposition analysis shows that permanent technology shock is the key driving force of business cycles in Turkish economy and the role of investment shock is less spelled.
Keywords : Open economy, Bayesian estimation, Business cycle
JEL Codes : C11; E3; F4

 

Role of Investment Shocks in Explaining Business Cycles in Turkey
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