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Efficiency of public expenditures in Turkey: when direct transfers really contribute to citizens’ welfare?

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  • Seyfettin Gursel

    (Bahcesehir University Center for Economic and Social Research (Betam))

  • Renginar Dayangac

    (Galatasaray University)

  • Bilge Ozturk Goktuna

    (Galatasaray University)

Abstract

This paper uses a general equilibrium model of a small open economy to explore the implications of different public expenditure policies. We allow for three types of public expenditures, government can invest in public capital stock thereby making production enhancing public expenditures, make utility or welfare enhancing public expenditures through supply of public services and direct transfers to consumers. In this context, our main concern will be to analyse the optimality of government’s choice among these alternatives regarding the trade-off between growth and welfare, for a given level of fiscal burden as well as the trade-off between tax weight and growth in one hand and welfare on the other hand.

Suggested Citation

  • Seyfettin Gursel & Renginar Dayangac & Bilge Ozturk Goktuna, 2009. "Efficiency of public expenditures in Turkey: when direct transfers really contribute to citizens’ welfare?," Working Papers 003, Bahcesehir University, Betam.
    • Handle: RePEc:bae:wpaper:003
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    File URL: http://betam.bahcesehir.edu.tr/tr/wp-content/uploads/2009/05/WorkingPaper003.pdf
    File Function: First version, 2009
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