International Conference on Eurasian Economies
9-11 September 2015 – Kazan, RUSSIA
Paper detail
Paper ID : 1285
Status : Paper published
Language : English
Topic : Finance and Financial Crises
Presenter: Ph.D. candidate Evrim Tören
Session : 2A Macroeconomics
Fiscal Policy Shocks and the Dynamics of Asset Prices in Turkey
Fiscal Policy Shocks and the Dynamics of Asset Prices in Turkey
- Ph.D. candidate Evrim Tören (Eastern Mediterranean University, TR of Northern Cyprus)
- Prof. Dr. Mehmet Balcılar (Eastern Mediterranean University, TR of Northern Cyprus)
Abstract
Asset markets and the asset prices affect financial institutions, consumers, producers and policy makers while they are making decisions. There is an important relationship not only between the financial market and banking system but also between the housing market and the credit market. Therefore, the study analyzes the impact of fiscal policy on asset prices by using beyasian vector autoregressive models. The sample data has been gathered from the Central Bank of the Republic of Turkey. The aim is to demonstrate the effects of fiscal policy shocks on stock prices and housing prices. The data covers the period between 1988:Q1 and 2014:Q2. Overall, the results confirm that the spending shocks coming from fiscal policy have a greater influence on the stock prices. In addition, the government revenue shocks are more influential on the house prices compared to the stock prices in Turkey.
JEL codes: E62, G10, C11
Tören, Evrim, Balcılar, Mehmet (2015). "Fiscal Policy Shocks and the Dynamics of Asset Prices in Turkey" in Proceedings of International Conference of Eurasian Economies 2015, pp.16-23, Kazan, RUSSIA.
DOI: https://doi.org/10.36880/C06.01285
