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

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

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Bildirici, M.
Cosar, N.

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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.

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Publisher Info
Article provided by Euro-American Association of Economic Development in its journal International Journal of Applied Econometrics and Quantitative Studies .

Volume (Year): 2 (2005)
Issue (Month): 1 ()
Pages: 69-88
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Handle: RePEc:eaa:ijaeqs:v:2:y2005:i:1_4

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Find related papers by 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
C5 - Mathematical and Quantitative Methods - - Econometric Modeling

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