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An Analysis of Political and Institutional Power Dispersion: The Case of Turkey

  • Ibrahim Tutar

    ()

    (Penetra Consulting)

  • Aysit Tansel

    ()

    (Department of Economics, METU)

This study examines the effects of fragmented governments and fiscal authorities on budget deficits in Turkey along with political business cycle effects. For econometric analysis we will use annual data from the period of 1960-2009. This paper sheds light on various dispersion indices and their use in the field of political power and fiscal performance. The results show that the power dispersion indices of governments and fiscal institutions significantly explain the increases in the ratio of budget deficit to GNP. The paper draws attention to the unification and better coordination of fiscal authorities in Turkey. The analysis has important policy implications for Turkey and other developing countries from the viewpoint of fragmented political and administrative dispersion of power and poor budget performances.

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File URL: http://www.erc.metu.edu.tr/menu/series11/1101.pdf
File Function: First version, 2011
Download Restriction: no

Paper provided by ERC - Economic Research Center, Middle East Technical University in its series ERC Working Papers with number 1101.

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Length: 34 pages
Date of creation: Mar 2011
Date of revision: Mar 2011
Handle: RePEc:met:wpaper:1101
Contact details of provider: Postal: Ankara 06531
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Web page: http://www.erc.metu.edu.tr
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