This paper investigates the inflation dynamics in Turkey between 1988 and 2000. Using model-free techniques, we first observe that there is strong inertia in Turkish inflation. Next, we look at the correlations between Consumer Price Index (CPI) inflation and the leads and lags of the various...

This article extends the model of Von Hagen and Harden that analyzed the impact of fiscal discipline on budgetary outcomes. We modify the model by adding monetary discipline to interact with fiscal discipline in order to analyze the effects of both on budgetary outcomes. The model predicts that...

This paper contributes to the literature on fiscal decentralization by presenting a formal model of the interaction between the central and local governments (CG and LGs, respectively) where LGs may differ in their degree of political alignment with CG. The non-cooperative optimal behavior of...

We develop a dynamic general equilibrium model where robots can be substituted for unskilled labor and the government uses the tax revenues for social capital investment and compensation of those who do not work. As the main novelty of the paper, we consider that social capital augments the...

This paper presents an empirical analysis of the relationship between domestic absorption, openness and growth performance. While the relationship between growth and openness has been the focus of almost the entirety of the related studies, the role of domestic absorption has been ignored. The...

The outburst of COVID-19 pandemic led to wide ranging social and economic problems to surface around the world since the beginning of 2020. A recently released data by the IMF report fiscal measures that countries adopted to cope with the crisis. Exploiting these novel data, we investigate the...