Advanced Search
MyIDEAS: Login

The External Finance Premium and the Financial Accelerator: The Case of Turkey

Contents:

Author Info

  • Birgül Cambazoğlu

    ()
    (Haliç University, Department of Banking and Insurance, 34000, Istanbul, Turkey)

  • Hacer Simay Karaalp

    ()
    (Pamukkale University, Faculty of Economics and Administrative Sciences, 20070, Denizli, Turkey)

Registered author(s):

    Abstract

    The monetary transmission mechanisms have influence on saving and investment decisions of firms and households by affecting their balance sheets. This study examines the effects of monetary policy through the balance sheet channel (also known as 'financial accelerator'), which affects net worth, liquidity and spending of firms and households through external finance premium. The aim of this study is to analyze the effect of monetary contraction which raised the external finance premium and thus the effect of the increase in the external finance premium which diminishes output for Turkey over the period of 2003:01-2010:08 by using VAR (vector autoregressive models), impulse-response analysis and forecast error variance decomposition. The results indicate that contractionary monetary policy shock, which led to increased external finance premium, negatively affected the manufacturing sector and decreased total output. In other words, the monetary shock negatively affected firms' balance sheets in the short-run.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.ijesar.org/docs/volume6_issue1/external_finance_premium.pdf
    Download Restriction: no

    File URL: http://www.ijesar.org/volume6_issue1.php
    Download Restriction: no

    Bibliographic Info

    Article provided by Technological Educational Institute (TEI) of Kavala, Greece in its journal International Journal of Economic Sciences and Applied Research (IJESAR).

    Volume (Year): 6 (2013)
    Issue (Month): 1 (April)
    Pages: 103-121

    as in new window
    Handle: RePEc:tei:journl:v:6:y:2013:i:1:p:103-121

    Contact details of provider:
    Web page: http://www.ijesar.org/
    More information through EDIRC

    Related research

    Keywords: Financial Accelerator; External Finance Premium; Turkey;

    Find related papers by JEL classification:

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:tei:journl:v:6:y:2013:i:1:p:103-121. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Kostas Stergidis).

    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 references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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