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The Effect of Private Sector Balance on Government Budget: An Empirical Examination

Author

Listed:
  • Taner Turan

    (Gebze Technical University,)

  • Orhan Emre Elma

    (Adana Science and Technology University)

Abstract

This paper aims to examine the effect of private sector balan¬ce (PSB) on government budget balance (BD) in Turkey by using growth rate (GE), financial account balance (FA), and household consumption expenditures (CH). In this context, ARDL approach is employed. Findings suggest that PSB does not have a significant effect on BD. FA has been found to be the only variable which has a significant effect on BD in both the long and short run.

Suggested Citation

  • Taner Turan & Orhan Emre Elma, 2016. "The Effect of Private Sector Balance on Government Budget: An Empirical Examination," Journal of Finance Letters (Maliye ve Finans Yazıları), Maliye ve Finans Yazıları Yayıncılık Ltd. Şti., vol. 31(105), pages 15-30, April.
    • Handle: RePEc:acc:malfin:v:31:y:2016:i:105:p:15-30
    DOI: https://doi.org/10.33203/mfy.312130
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • F00 - International Economics - - General - - - General
    • H60 - Public Economics - - National Budget, Deficit, and Debt - - - General

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