Levent, Korap (2007): Testing causal relationships between energy consumption, real income and prices: evidence from Turkey. Published in: Beykent University Journal of Social Sciences , Vol. 1, No. 2 (2007): pp. 129.

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Abstract
In this paper, we examine the causal relationships between the changes in energy consumption, real income growth and domestic inflation within the conditions of the Turkish economy. Based on a contemporaneous multivariate cointegrating estimation methodology, our estimation results indicate that a distinction between various categories of energy consumption needs to be made in order for the causality issues of interest to be elucidated. We find as a vital point to be emphasized that domestic inflationary framework is highly endogenous to all the model constructions and thus subject to the changes in especially energy consumption. It is also significant that there seems to be a longrun causal relationship between the variables when the levels of industrial consumption are used as the relevant energy consumption data since they have highly endogenous characteristics against each other within the causality analysis. We conclude that energy policies exante designed have the power of affecting domestic inflation significantly. We also suggest that, for the case of industrial energy consumption data, energy conservation policies may lead to harmful results for the real income growth process though the latter issue is not the relevant case for the residental and commercial energy consumption and total energy consumption data.
Item Type:  MPRA Paper 

Original Title:  Testing causal relationships between energy consumption, real income and prices: evidence from Turkey 
English Title:  Testing causal relationships between energy consumption, real income and prices: evidence from Turkey 
Language:  English 
Keywords:  Energy Consumption ; Real Income ; Prices ; Causality ; Turkish Economy ; 
Subjects:  C  Mathematical and Quantitative Methods > C3  Multiple or Simultaneous Equation Models; Multiple Variables > C32  TimeSeries Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models N  Economic History > N7  Transport, Trade, Energy, Technology, and Other Services > N70  General, International, or Comparative 
Item ID:  21834 
Depositing User:  Levent Korap 
Date Deposited:  07. Apr 2010 06:09 
Last Modified:  19. Feb 2013 02:04 
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URI:  http://mpra.ub.unimuenchen.de/id/eprint/21834 