We examine several discrete-time versions of the Cox, Ingersoll and Ross (CIR) model for the term structure, in which the short rate is subject to discrete shifts. Our empirical analysis suggests that careful consideration of which parameters of the short-term interest rate equation that are...

This brief country case study on Turkey aims to summarize the fundamental developments in the banking sector, which represents almost 90 percent of the financial sector in the country. The brief has two parts. The first covers the 2001 financial crisis and the developments until end of 2007, the...

This paper studies the long-term consequences of polices designed to curb the rapid growth in pension deficits in Turkey where the mismanagement of pension funds has begun to generate considerable losses, despite a relatively young population that is just beginning to face population aging. With...