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Real business cycles in emerging economies: Turkish case

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  • Taştan, Hüseyin

Abstract

This paper attempts to answer the following question: Can a small-open-economy real business cycle (RBC) model driven by nonstationary productivity shocks explain business cycles in emerging economies? This question is addressed by estimating a dynamic stochastic general equilibrium model for Turkish economy using Bayesian methods in line with those suggested in the recent small open economy RBC literature. Results indicate that the standard RBC model driven by both stationary and nonstationary productivity shocks is not successful in replicating some of the key features of economic fluctuations. The alternative model with financial frictions provides a more realistic picture of business cycles.

Suggested Citation

  • Taştan, Hüseyin, 2013. "Real business cycles in emerging economies: Turkish case," Economic Modelling, Elsevier, vol. 34(C), pages 106-113.
    • Handle: RePEc:eee:ecmode:v:34:y:2013:i:c:p:106-113
    DOI: 10.1016/j.econmod.2013.01.030
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    References listed on IDEAS

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    Cited by:

    1. Kónya, István & Baksa, Dániel, 2017. "Növekedés és pénzügyi környezet [Growth and the financial environment]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(4), pages 349-376.
    2. Dániel Baksa & István Kónya, 2017. "Interest premium and economic growth: the case of CEE," NBP Working Papers 266, Narodowy Bank Polski.
    3. Dániel Baksa & István Kónya, 2021. "Convergence stories of post‐socialist Central‐Eastern European countries," Manchester School, University of Manchester, vol. 89(3), pages 239-258, June.
    4. Hüseyin Taştan & Bekir Aşık, 2014. "A Bayesian Estimation of Real Business-Cycle Models for the Turkish Economy," Ekonomi-tek - International Economics Journal, Turkish Economic Association, vol. 3(2), pages 27-50, May.
    5. Daniel Baksa & Istvan Konya, 2019. "Convergence, productivity and debt: the case of Hungary," CERS-IE WORKING PAPERS 1916, Institute of Economics, Centre for Economic and Regional Studies.

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    More about this item

    Keywords

    Real business cycle models; Emerging economies; Turkey;
    All these keywords.

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

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