Template-Type: ReDIF-Article 1.0
Author-Name:  E. Simsek
Author-Email:  esraqsimsek@gmail.com
Author-Workplace-Name: Department of Economics, Istanbul Bilgi University, 34060, Istanbul, Turkey
Author-Name:  M. Orhan
Author-Email:  mehmet.orhan@ibu.edu.ba
Author-Workplace-Name: School of Economics and Social Sciences, International Burch University
Author-Name:  F. Macit
Author-Email:  fmacit55@gmail.com
Author-Workplace-Name: Northeast Normal University
Title:  Effect of Government Expenditure on GDP in the Turkish Economy
Abstract:  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
Classification-JEL: E52, H5, C22, C52
Keywords: Lucas Critique, Government Expenditure, Superexogeneity Test
Journal: International Econometric Review
Pages: 69-76
Volume: 9
Issue: 2
Year: 2017
Month: September
File-URL: http://www.era.org.tr/makaleler/336791.pdf
File-Format: Application/pdf
Handle: RePEc:erh:journl:v:9:y:2017:i:2:p:69-76