Levent, Korap (2006): Seigniorage revenue and Turkish economy. Published in: Cumhuriyet Üniversitesi İktisadi ve İdari Bililer Dergisi , Vol. 7, No. 2 (2006): pp. 101-120.
Download (191kB) | Preview
In our paper, we try to investigate the courses of inflation tax and seigniorage revenue for policy makers of the Turkish economy. For this purpose, we first construct an ex-ante seigniorage revenue maximizing inflation model, and then calculate annual inflation tax and seigniorage revenues for the post-1980 period Turkish economy. Following these theoretical issues, an empirical model is constructed upon the Turkish economy, and our expost estimation results reveal that inside the period considered, the Turkish economy lies on the correct or efficient side of the seigniorage maximizing Laffer curve.
|Item Type:||MPRA Paper|
|Original Title:||Seigniorage revenue and Turkish economy|
|English Title:||Seigniorage revenue and Turkish economy|
|Keywords:||Seigniorage ; Inflation Tax ; Laffer Curve ; Turkish Economy ;|
|Subjects:||C - Mathematical and Quantitative Methods > C3 - Multiple or Simultaneous Equation Models; Multiple Variables > C32 - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models
E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles > E31 - Price Level; Inflation; Deflation
E - Macroeconomics and Monetary Economics > E4 - Money and Interest Rates > E41 - Demand for Money
|Depositing User:||Levent Korap|
|Date Deposited:||18. Jan 2010 17:00|
|Last Modified:||11. Feb 2013 22:51|
Adam, Christopher, Ndulu, Benno and Sowa, Nii Kwaku (1996), “Liberalisation and Seigniorage Revenue in Kenya, Ghana and Tanzania”, Development Studies, Vol 32/4; 531-553.
Akçay, Cevdet (1995), “Inflation Tax in a Post-Liberalization Environment: Evidence from Turkey, 1980-1990”, in Balim, Ç. et al. (eds), Turkey: Political, Social and Economic Challenges in the 1990s, Leiden, New York, Köln: E.J. Brill; 210-229.
Altınkemer, Melike (1994), “Financeable Deficit & Revenues from Monetization The Case of Turkey”, CBRT Research Department Working Paper, No. 9413.
Anand, Ritu and van Wijnbergen, Sweder (1988), “Inflation, External Debt and Financial Sector Reform: A Quantitative Approach to Consistent Fiscal Policy with an Application to Turkey”, NBER Working Paper, No. 2731.
Begg, David, Fischer, Stanley and Dornbusch, Rudiger (1994), Economics, Fourth Ed., McGraw-Hill Book Company
Blanchard, Olivier (1997), Macroeconomics, International Edition, Prentice-Hall International, Inc.
Bruno, Michael and Fischer, Stanley (1990), “Seigniorage, Operating Rules, and the High Inflation Trap”, The Quarterly Journal of Economics, Vol 105/2; 353-374.
Cagan, Phillip (1956), “The Monetary Dynamics of Hyperinflation”, in Friedman, M. (ed.), Studies in the Quantity Theory of Money, Chicago: The University of Chicago Press, 25-117.
Calvo, Guillermo A. and Leiderman, Leonardo (1992), “Optimal Inflation Tax under Precommitment: Theory and Evidence”, The American Economic Review, Vol 82/1; 179-194.
Cheung, Yin-Wong and Lai, Kon S. (1993), “Finite-sample Sizes of Johansen’s Likelihood Ratio Tests for Cointegration”, Oxford Bulletin of Economics and Statistics, Vol 55; 313-28.
De Haan, Jakob, Zelhorst, Dick and Roukens, Onno (1993), “Seigniorage in Developing Countries”, Applied Financial Economics, Vol 3; 307-314.
Dickey, David A., Jansen, Dennis W. and Thornton, Daniel L. (1991), “A Primer on Cointegration with An Application to Money and Income”, Federal Reserve Bank of St. Louis Review, March/April; 58-78.
Domaç, İlker (2004), “Explaining and Forcasting Inflation in Turkey”,World Bank Policy Research Working Paper, 3287, April.
Dornbusch, Rudiger and Fischer, Stanley (1994), Macroeconomics, Sixth Edition, McGraw-Hill, Inc.
Easterly, William R., Mauro, Paolo and Schmidt-Hebbel, Klaus (1995), “Money Demand and Seigniorage-Maximizing Inflation”, Journal of Money, Credit and Banking, Vol 27/2; 583-603.
Engle, Robert F. and Granger, C. W. J. (1987). "Co-integration and Error Correction: Representation, Estimation, and Testing", Econometrica, Vol 55; 251-276.
Fischer, Stanley (1982), “Seigniorage and the Case for a National Money”, The Journal of Political Economy, Vol 90/2; 295-313.
Friedman, Milton (1971), “Government Revenue from Inflation”, The Journal of Political Economy, Vol 79/4; 846-856.
Gonzalo, Jesus (1994), “Five Alternative Methods of Estimating Long-Run Equilibrium Relationships”, Journal of Econometrics, Vol 60; 203-233.
Granger, C.W.J. and Newbold, Paul (1974), “Spurious Regressions in Economics”, Journal of Econometrics, Vol 2/2; 111-120.
Harris, R.I.D. (1995), Using Cointegration Analysis in Econometric Modelling, Prentice Hall.
International Monetary Fund (2005), World Economic Outlook, April.
Johansen, Sǿren (1995), Likelihood-based Inference in Cointegrated Vector Autoregressive Models, Oxford University Press.
Johansen, Sǿren and Juselius, Katarina (1992), “Testing Structural Hypotheses in a Multivariate Cointegration Analysis of the PPP and the UIP for UK”, Journal of Econometrics, Vol 53; 211-244.
Johansen, Sǿren and Juselius, Katarina (1990), “Maximum Likelihood Estimation and Inference on Cointegration-with applications to the demand for money”, Oxford Bulletin of Economics and Statistics, Vol 52; 169-210.
Kiguel, Miguel A. and Neumeyer, Pablo Andres (1995), “Seigniorage and Inflation: The Case of Argentina”, Journal of Money, Credit and Banking, Vol 27/3; 672-682.
Koru, Ayça-Tekin and Özmen, Erdal (2003), “Budget Deficits, Money Growth and Inflation: The Turkish Evidence”, Applied Economics, Vol 35/5; 591-596.
Kural, Vural (1997), “Para İkamesi Altında Enflasyonist Finansman”, Hazine Dergisi, Ocak, Vol 5; 45-57.
MacKinnon, James G. (1996), “Numerical Distribution Functions for Unit Root and Cointegration Tests”, Journal of Applied Econometrics, Vol 11; 601-618.
MacKinnon, James G., Haug, Alfred A. and Michelis, Leo (1999), "Numerical Distribution Functions of Likelihood Ratio Tests For Cointegration" Journal of Applied Econometrics, Vol 14; 563-577.
Metin, Kıvılcım and Muslu, İlker (1999), “Money Demand, the Cagan Model, Testing Rational Expectations vs Adaptive Expectations: The Case of Turkey”, Empirical Economics, Vol 24; 415-426.
Osterwald-Lenum, Michael (1992), “A note with Quantiles of the Asymptotic Distribution of the Maximum Likelihood Cointegration Rank Test Statistics”, Oxford Bulletin of Economics and Statistics, Vol 54; 461-472.
Özdemir, K Azim and Turner, Paul (2004), “The Demand for Base Money in Turkey: Implications for Inflation and Seigniorage”, CBRT Research Department Working Paper, No. 04/12.
Özmen, Erdal (1998), “Is Currency Seigniorage Exogeneous for Inflation Tax in Turkey”, Applied Economics, Vol 30/4; 545-552.
Pantula, S.G. (1989), “Testing for Unit Roots in Time Series Data”, Econometric Theory, Vol 5; 256-271. Paya, Merih (1997), Makroiktisat, Filiz Kitabevi, İstanbul.
Phylaktis, Kate and Taylor, Mark P. (1993), “Money Demand, The Cagan Model and the Inflation Tax: Some Latin American Evidence”, The Review of Economics and Statistics, Vol 75/1; 32-37.
QMS (2004), EViews 5 User’s Guide, April.
Rodrik, Dani (1990), “Premature Liberalization, Incomplete Stabilization: The Ozal Decade in Turkey”, NBER Working Paper, No. 3300.
Saatçioğlu, Cem and Korap, Levent (2006), “Determinants of Turkish Inflation”, Turkish Economic Association Discussion Paper, 2006/7.
Selçuk, Faruk (2001), “Seigniorage, Currency Substitution and Inflation in Turkey”, Russian and East European Finance and Trade, Vol 37/6; 41-50.
Soydan, Aylin (2003), “Financial Liberalization, Currency Substitution and Seigniorage Evidence from Turkey”, Paper Presented to the Conference on Policy Modeling, July 3-5, Istanbul.
Sönmez, Sinan (1998), “Türkiye’de Kamu (Açığının) Finansmanı ve Enflasyon Vergisi”, ODTÜ Gelişme Dergisi, Vol 25/2; 361-377.
Şıklar, İlyas (1998), “Currency Substitution and Seigniorage Revenue in a Developing Country: The Turkish Case”, Yapı Kredi Economic Review, Vol 9/1; 3-14.