Not-quite-great depressions of Turkey: A quantitative analysis of economic growth over 1968–2004Deniz Çiçek and Ceyhun Elgin Economic Modelling, 2011, vol. 28, issue 6, 2691-2700 Abstract: Following the great depressions methodology suggested by Kehoe and Prescott (2002, 2007), we use growth accounting and perfect foresight dynamic general equilibrium models to study growth performance of Turkey from 1968 to 2004. Our benchmark model without any frictions and taxes accounts for 86% of the observed change in the growth rate of GDP per-working age person and once we extend the model with taxes and capital adjustment costs it accounts for 60% of the observed reduction in hours worked per-working age person and 35% of the change in the growth of capital-output ratio. Also, we identify that the Turkish economy experienced a depression from 1976 to 1984 and the extended model performs remarkably well to account for the depression period. Our findings generally suggest that rigidities affecting capital accumulation and government policies using distortionary taxes have a crucial role in the evolution of various variables of the Turkish economy. Keywords: Growth accounting; Total factor productivity; Great depressions; Turkey; Dynamic general equilibrium (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:28:y:2011:i:6:p:2691-2700 DOI: 10.1016/j.econmod.2011.08.010 Access Statistics for this article Economic Modelling is currently edited by S. Hall and P. Pauly More articles in Economic Modelling from Elsevier |
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