The Gibson Paradox: An Empirical Investigation for Turkey
AbstractThis paper tests the existence of Gibson paradox using the traditional and modern time series techniques in the case of annual Turkish data. Even though the results from the traditional Gibson paradox regression suggested a positive relationship between the interest rates and the prices levels in Turkish data, subsequently it was proven to be spurious. On analyzing the time series properties of the variables and the results from the Johansen cointegration procedure, we reveal that there is no support of the Gibson paradox in Turkish data.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 3556.
Date of creation: 2004
Date of revision:
Publication status: Published in European Research Studies Journal 1-2.7(2004): pp. 111-119
Gibson paradox; co-integration; Turkey;
Find related papers by JEL classification:
- E50 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - General
- E4 - Macroeconomics and Monetary Economics - - Money and Interest Rates
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