Is there the time-inconsistency problem in Turkey?
Purpose - The purpose of this paper is to analyze the time-inconsistency problem between inflation and unemployment rate series for Turkey. Design/methodology/approach - The validity of the Barro-Gordon model's implications is tested by using state-space form and a Kalman filter. In order to investigate the long-run effects of the time-inconsistency problem, unit root and co-integration tests are applied. First, a Hodrick-Prescott filter is used to test the short-run effects. Then the modified Barro-Gordon model's constraint is applied to the detrended inflation and unemployment rate. Findings - The results of this study suggest that both inflation and unemployment series are not stationary and they include the unit root, but that first differences of the two series are stationary. The co-integration test results also do not support the Barro-Gordon model's implications for the long-run behavior of inflation and unemployment: the two variables are not cointegrated. Originality/value - The results of this study suggest that the time-inconsistency problem for Turkey can be valid in the short-run, but sufficient proof cannot be found to support the Barro- Gordon model's implications for the long-run.
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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 34 (2007)
Issue (Month): 5 (December)
|Contact details of provider:|| Web page: http://www.emeraldinsight.com|
|Order Information:|| Postal: Emerald Group Publishing, Howard House, Wagon Lane, Bingley, BD16 1WA, UK|
Web: http://www.emeraldinsight.com/jes.htm Email:
When requesting a correction, please mention this item's handle: RePEc:eme:jespps:v:34:y:2007:i:5:p:389-400. 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: (Virginia Chapman)
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.