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Budget Deficits and Indirect Taxes during the Political Instability Periods in Turkey: Cointegration Analysis and EC Model Estimation, 1985-2003

Author

Listed:
  • Bildirici, M.
  • Cosar, N.

Abstract

The main purpose of this study is to examine a relationship between budget deficit and indirect taxes in political instability. Between 1985 and 2003, budget policies were influenced by unstable political conditions. In order to explain the financing of the budget deficits under the political instabilities. In the first part of the study, theoretical developments will be explained. Second, Turkish political and economic conditions will be analyzed. Third, econometric tests and results will be discussed. We propose that indirect taxes are more utilized than direct taxes during the political instability periods.

Suggested Citation

  • Bildirici, M. & Cosar, N., 2005. "Budget Deficits and Indirect Taxes during the Political Instability Periods in Turkey: Cointegration Analysis and EC Model Estimation, 1985-2003," International Journal of Applied Econometrics and Quantitative Studies, Euro-American Association of Economic Development, vol. 2(1), pages 69-88.
  • Handle: RePEc:eaa:ijaeqs:v:2:y2005:i:1_4
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    Cited by:

    1. Rajmund MIRDALA, 2016. "Effects of Fiscal Policy Shocks in the Euro Area Lessons Learned from Fiscal Consolidation," Journal of Advanced Research in Law and Economics, ASERS Publishing, vol. 7(8), pages 2236-2276.

    More about this item

    Keywords

    Budget Deficit; taxes; cointegration analysis;
    All these keywords.

    JEL classification:

    • H61 - Public Economics - - National Budget, Deficit, and Debt - - - Budget; Budget Systems
    • H62 - Public Economics - - National Budget, Deficit, and Debt - - - Deficit; Surplus
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • C5 - Mathematical and Quantitative Methods - - Econometric Modeling

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