IDEAS home Printed from https://ideas.repec.org/a/sos/sosjrn/200102.html
   My bibliography  Save this article

A Fiscal Space Analysis In Terms Of Turkey’s Domestic Debt

Author

Listed:
  • Süleyman KASAL
  • Özay ÖZPENÇE

Abstract

Restrictions on the use of fiscal policies due to high levels of public debt have affected the fiscal spaces of many countries. In consequence, these countries had to adopt structural economic reforms to create a fiscal space. Fiscal policies adopted in the 2000s has created different results in Turkey than they did in other developing countries. These policies subsequently yielded huge reductions in budget deficits, public debt ratios and interest payments, which have enabled Turkey to create the fiscal space needed. Within this framework, after providing a definition for fiscal space, we calculated Turkish fiscal space for the period between 2000:Q1-2015:Q4. Our estimates suggest that although there is ample fiscal space for Turkey to use fiscal policies, increasing public debt might restrain using such policies and cause fiscal fatigue.

Suggested Citation

  • Süleyman KASAL & Özay ÖZPENÇE, 2020. "A Fiscal Space Analysis In Terms Of Turkey’s Domestic Debt," Sosyoekonomi Journal, Sosyoekonomi Society, issue 28(43).
    • Handle: RePEc:sos:sosjrn:200102
    as

    Download full text from publisher

    File URL: http://dergipark.gov.tr/download/article-file/936916
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Mendoza, Enrique G. & Ostry, Jonathan D., 2008. "International evidence on fiscal solvency: Is fiscal policy "responsible"?," Journal of Monetary Economics, Elsevier, vol. 55(6), pages 1081-1093, September.
    2. Blejer, Mario I & Cheasty, Adrienne, 1991. "The Measurement of Fiscal Deficits: Analytical and Methodological Issues," Journal of Economic Literature, American Economic Association, vol. 29(4), pages 1644-1678, December.
    3. Joshua Aizenman & Yothin Jinjarak, 2010. "De facto Fiscal Space and Fiscal Stimulus: Definition and Assessment," NBER Working Papers 16539, National Bureau of Economic Research, Inc.
    4. Mr. Seok G Park, 2012. "Quantifying Impact of Aging Population on Fiscal Space," IMF Working Papers 2012/164, International Monetary Fund.
    5. Fatih Kaya & Selihan Yýlar, 2011. "Fiscal Transformation in Turkey over the Last Two Decades," OECD Journal on Budgeting, OECD Publishing, vol. 11(1), pages 59-74.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Djedje Hermann Yohou, 2015. "In Search of Fiscal Space in Africa: The Role of the Quality of Government Spending," CERDI Working papers halshs-01222812, HAL.
    2. Sèna Kimm Gnangnon & Jean-François Brun, 2020. "Tax reform and fiscal space in developing countries," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 10(2), pages 237-265, June.
    3. Ioana-Laura Țibulcă, 2021. "Debt Sustainability: Can EU Member States Use Environmental Taxes to Regain Fiscal Space?," Sustainability, MDPI, vol. 13(11), pages 1-15, May.
    4. Sena Kimm Gnangnon, 2019. "De Facto Fiscal Space in Donor-countries and Their Aid Supply: To What Extent is Trade-related Aid Supply Affected?," South Asian Journal of Macroeconomics and Public Finance, , vol. 8(1), pages 1-25, June.
    5. Ms. Anja Baum & Andrew Hodge & Ms. Aiko Mineshima & Ms. Marialuz Moreno Badia & Rene Tapsoba, 2017. "Can They Do It All? Fiscal Space in Low-Income Countries," IMF Working Papers 2017/110, International Monetary Fund.
    6. Nerlich, Carolin & Reuter, Wolf Heinrich, 2015. "Fiscal rules, fiscal space and procyclical fiscal policy," Working Paper Series 1872, European Central Bank.
    7. Carolin Nerlich & Wolf Heinrich Reuter, 2016. "Fiscal Rules, Fiscal Space, and the Procyclicality of Fiscal Policy," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 72(4), pages 421-452, December.
    8. Gerardo Manzo & Antonio Picca, 2020. "The Impact of Sovereign Shocks," Management Science, INFORMS, vol. 66(7), pages 3113-3132, July.
    9. Marc Robinson, 1996. "Can Fiscal Responsibility Legislation be Made to Work?," Agenda - A Journal of Policy Analysis and Reform, Australian National University, College of Business and Economics, School of Economics, vol. 3(4), pages 419-430.
    10. Heer, Burkhard & Polito, Vito & Wickens, Michael R., 2020. "Population aging, social security and fiscal limits," Journal of Economic Dynamics and Control, Elsevier, vol. 116(C).
    11. D’Erasmo, P. & Mendoza, E.G. & Zhang, J., 2016. "What is a Sustainable Public Debt?," Handbook of Macroeconomics, in: J. B. Taylor & Harald Uhlig (ed.), Handbook of Macroeconomics, edition 1, volume 2, chapter 0, pages 2493-2597, Elsevier.
    12. Sergey Pekarski, 2017. "Tight Money and the Sustainability of Public Debt," International Journal of Central Banking, International Journal of Central Banking, vol. 13(1), pages 191-223, February.
    13. Pierre ALDAMA & Jérôme Creel, 2017. "Fiscal policy in the US : Ricardian after all ?," Documents de Travail de l'OFCE 2017-23, Observatoire Francais des Conjonctures Economiques (OFCE).
    14. Maxime MENUET & Alexandru MINEA & Patrick VILLIEU, 2017. "Public Debt, Endogenous Growth Cycles and Indeterminacy," LEO Working Papers / DR LEO 2467, Orleans Economics Laboratory / Laboratoire d'Economie d'Orleans (LEO), University of Orleans.
    15. Munawar-Shah, Syed & Abdul-Majid, Mariani & Hussain-Shah, Syed, 2014. "Assessing Fiscal Sustainability for SAARC and IMT-GT Countries," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 5(2), pages 26-40.
    16. F CvN Fourie & P Burger, 2001. "FISCAL IMPLICATIONS OF PUBLIC‐PRIVATE PARTNERSHIPS (PPPs)," South African Journal of Economics, Economic Society of South Africa, vol. 69(1), pages 147-168, March.
    17. Christopher Sleet, 2004. "Optimal Taxation with Private Government Information," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 71(4), pages 1217-1239.
    18. Paolo Canofari & Alessandro Piergallini & Giovanni Piersanti, 2020. "Assessing sovereign debt sustainability using a wealth-based fiscal indicator," Economics Bulletin, AccessEcon, vol. 40(4), pages 2677-2688.
    19. Daisuke Miyashita, 2023. "Public debt and income inequality in an endogenous growth model with elastic labor supply," International Journal of Economic Policy Studies, Springer, vol. 17(2), pages 447-472, August.
    20. António AFONSO & Priscilla TOFFANO, 2013. "Fiscal regimes in the EU," Working Papers of Department of Economics, Leuven ces13.06, KU Leuven, Faculty of Economics and Business (FEB), Department of Economics, Leuven.

    More about this item

    Keywords

    Fiscal Space; Fiscal Fatigue; Fiscal Reaction Function; Debt Limit; Turkey.;
    All these keywords.

    JEL classification:

    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • H60 - Public Economics - - National Budget, Deficit, and Debt - - - General
    • H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sos:sosjrn:200102. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Aysen Sivrikaya (email available below). General contact details of provider: http://www.sosyoekonomijournal.org/home.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.