This paper compares the effectiveness of market discipline mechanisms in the banking sector before and after the 2001 financial crisis in Turkey. It employs an empirical model that incorporates the contemporaneous feedback effects between deposits growth rate and the implicit interest rate....

We examine a class of popular structural models of exchange rate determination and compare them to a random walk with and without drift. Given almost any set of conditioning variables, we find parametric specifications fail. Our findings are based on broad entropy functional of the whole...

By modeling the current account balances (as a percentage of GDP) in a dynamic AR (1) Model, Taylor (2002) proposed to use speed of mean reversion of the dynamics of the current account as a tool for measurement of capital mobility and confirmed the stylized fact of U-Shape degree of capital...

In Monte Carlo experiment with simulated data, we show that as a point forecast criterion, the Clark and West's (2006) unconditional test of mean squared prediction errors does not reflect the relative performance of a superior model over a relatively weaker one. The simulation results show that...

The literature has not settled down on safe haven property of gold in emerging and developing countries. Therefore, in this study, we revisit the international evidence on hedging and safe haven role of gold for 34 emerging and developing countries with a span of daily data covering January 2000...

We empirically investigate the effect of net external debt positions on the size of medium-term current account balances. We utilize an approach where net external debt positions dampen the widening of the current account balances. In a simple accounting framework, we find supportive evidence of...

In this paper, we contribute to the current literature on market disciplining of the sovereign governments of the developing countries by distinguishing both sides of the market discipline hypothesis by adopting three-stage least square estimation to incorporate the contemporaneous feedback...

This paper contributes to the current literature on market disciplining of the sovereign governments in two ways: Firstly, it distinguishes both sides of the market discipline hypothesis (MDH) by adopting 3SLS to incorporate the contemporaneous feedback effects between primary structural budget...

This paper empirically investigates the effect of net external debt holdings on the size of medium-term current account balances. It utilizes an approach where net external debt holdings behave like a "shadow interest rate" in affecting the current account imbalances. This paper has four major...