This paper analyzes the effects of removing the unfunded social security in an economy where entrepreneurs play a critical role in replicating the dispersion of wealth observed in the U.S. data. The quantitative findings reveal that the wealth Gini falls from 0 : 804 to 0 : 521 indicating a more...

This paper uses over-the-counter currency options data to investigate market expectations on Turkish Lira-U.S. Dollar exchange rate. We extract option implied density functions to examine the evolution of market sentiment over the possible values of future exhange rates. Uncertainty is well...

This paper examines the Turkish wage curve using individual data from the Household Labor Force Survey (HLFS) including 26 NUTS-2 regions over the period 2005 - 2008. When the local unemployment rate is treated as predetermined, there is evidence in favor of the wage curve only for younger and...

The credit market imperfections have important consequences for aggregate cycles, especially for developing countries. The research on the relationship between imperfections and output dynamics at the macro level are ample, but the lack of wide coverage micro data sets for developing countries...

In the first quarter of 2008, along with the beginning of the crisis, the employment share of agriculture in Turkey deviated from its long-run trend and started to rise. Both the timing and the direction of the change caused a public debate for an explanation of this phenomenon. Less to the...

Rapid credit growth, short-term capital inflows, and associated macro-financial risks in the aftermath of the global crisis necessitated the use of alternative policy instruments in Turkey. Accordingly, the Central Bank of the Republic of Turkey (CBRT) has designed and adopted a new policy mix...

I analyse the Household Budget Surveys prepared by the Turkish Statistical Institute (TURKSTAT) to reveal the empirical importance of precautionary saving in Turkey. The most difficult aspect of the empirical analysis is the approximation of labour income risk as a proxy variable for future...

Using exchange rate data on five currencies vis-à-vis the US dollar, this paper examines the insample and out-of-sample performance of exchange rate equations derived from alternative empirical and optimal interest rate rules. These rules could have either homogeneous or heterogeneous response...

Bu calismada amaclanan, yapisal butce dengesini hesaplayarak Turkiye’de 2006-2010 doneminde mali durusu ortaya koymak ve butce dengesinin devresel hareketlerden ne olçude etkilendigini belirlemeye calismaktir. Yapisal butce dengesinin uc asamada hesaplandigi bu calismada ilk olarak butce...

Theoretically, the risk premium captured by Credit Default Swap (CDS) and bond yield spreads should be equal. However, data reveals a significant difference between the two spreads. We explore the presence of a mean-reverting behavior in this difference (CDS-bond basis), for selected emerging...