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An Analysis of Political and Institutional Power Dispersion: The Case of Turkey

Author

Listed:
  • Ibrahim Tutar

    (Penetra Consulting)

  • Aysit Tansel

    (Department of Economics, METU)

Abstract

This study examines the effects of fragmented governments and fiscal authorities on budget deficits in Turkey along with political business cycle effects. For econometric analysis we will use annual data from the period of 1960-2009. This paper sheds light on various dispersion indices and their use in the field of political power and fiscal performance. The results show that the power dispersion indices of governments and fiscal institutions significantly explain the increases in the ratio of budget deficit to GNP. The paper draws attention to the unification and better coordination of fiscal authorities in Turkey. The analysis has important policy implications for Turkey and other developing countries from the viewpoint of fragmented political and administrative dispersion of power and poor budget performances.

Suggested Citation

  • Ibrahim Tutar & Aysit Tansel, 2011. "An Analysis of Political and Institutional Power Dispersion: The Case of Turkey," ERC Working Papers 1101, ERC - Economic Research Center, Middle East Technical University, revised Mar 2011.
    • Handle: RePEc:met:wpaper:1101
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    More about this item

    Keywords

    Political Business Cycles; Fragmentation and Power Dispersion; Public Budget; Turkey;
    All these keywords.

    JEL classification:

    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation

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