Extensions of the standard real business cycle model: The case of Turkey

Kötehne, Berna (2022) Extensions of the standard real business cycle model: The case of Turkey. [Thesis]

[thumbnail of 10477833.pdf] PDF

Download (848kB)


In this paper, I analyze a real business cycle model augmented with variable capital utilization, preference shocks, government spending shocks and financial frictions following Letendre (2004) and Garcia-Cicco, Pancrazi, and Uribe (2010). Calibrating the model to Turkey, the results suggest that endogenous capital utilization generates a stronger countercyclicality of trade balance close to that observed in the data. Productivity and government spending shocks analyzed with a higher debtelasticity of risk premium are able to produce excess consumption volatility observed in the data while preference shocks and interest rate shocks have a negligible role in explaining business cycles in Turkey.
Item Type: Thesis
Uncontrolled Keywords: Real business cycle model. -- Small open economy. -- Turkey. -- Emerging markets. -- Reel iş çevrimi modeli. -- Küçük açık ekonomi. --Türkiye. -- Gelişmekte olan piyasalar.
Subjects: H Social Sciences > HB Economic Theory
Divisions: Faculty of Arts and Social Sciences > Academic programs > Economics
Faculty of Arts and Social Sciences
Depositing User: Dila Günay
Date Deposited: 21 Feb 2023 15:51
Last Modified: 13 Apr 2023 14:09
URI: https://research.sabanciuniv.edu/id/eprint/45436

Actions (login required)

View Item
View Item