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Article
Role of Investment Shocks in Explaining Business Cycles in Turkey
Central Bank of the Republic of Turkey Working Papers (2013)
  • Canan Yuksel
Abstract

This paper aims to understand the role of investment shocks in explaining output fluctuations observed in Turkish economy. For this purpose a small open economy DSGE model is estimated on Turkish data for 2002:1-2012:2 period by Bayesian methods. Variance decomposition analysis shows that permanent technology shock is the key driving force of business cycles in Turkish economy and the role of investment shock is less spelled.

Keywords
  • Open economy,
  • Bayesian estimation,
  • Business cycle.
Disciplines
Publication Date
February, 2013
Citation Information
Canan Yuksel. "Role of Investment Shocks in Explaining Business Cycles in Turkey" Central Bank of the Republic of Turkey Working Papers Vol. 13/12 (2013)
Available at: http://works.bepress.com/cyuksel/5/