Akademik Veri Yönetim Sistemi
Tezin Türü: Yüksek Lisans
Tezin Yürütüldüğü Kurum: Orta Doğu Teknik Üniversitesi, İktisadi ve İdari Bilimler Fakültesi, İktisat Bölümü, Türkiye
Tezin Onay Tarihi: 2016
Öğrenci: ELİF SEMRA CEYLAN
Danışman: NADİR ÖCAL
Özet:In this study, we estimate the local government spending multiplier for Turkey using the province-level variation in government spending for 2002-2013. The main diffculty is that there is no official province-level GDP reported for this period. We use the night lights data as a proxy to construct province-level GDP indices for Turkey between 2002-2013. Employing an instrumental variables (IV) strategy motivated by the structure/timing of local elections in Turkey, we find that 1 Turkish lira public investment generates up to 2.7 Turkish lira national income. This suggests that the fiscal multiplier is around 2.7 in Turkey, which is above the fiscal multiplier estimates reported in the literature. This results contributes to the recent debates on the effectiveness of government spending by showing that fiscal policy has a great potential to lift economic growth. In this study, we estimate the local government spending multiplier for Turkey using the province-level variation in government spending for 2002-2013. The main diffculty is that there is no official province-level GDP reported for this period. We use the night lights data as a proxy to construct province-level GDP indices for Turkey between 2002-2013. Employing an instrumental variables (IV) strategy motivated by the structure/timing of local elections in Turkey, we find that 1 Turkish lira public investment generates up to 2.7 Turkish lira national income. This suggests that the fiscal multiplier is around 2.7 in Turkey, which is above the fiscal multiplier estimates reported in the literature. This results contributes to the recent debates on the effectiveness of government spending by showing that fiscal policy has a great potential to lift economic growth.