We will conduct Business Cycle Accounting for the Turkish economy to investigate the sources of economic fluctuations within the framework of a standard neoclassical growth model with time-varying wedges across the last four decades. We will then compare the relative importance of different...

Perfectly competitive labor markets without distortionary taxes combined with a profit maximizing behavior of firms should imply that real wages should equal marginal product of labor (MPL). In this paper, we study the Turkish manufacturing industry and find that there exist a significant...