The Stability Of The Turkish Phillips Curve And Alternative Regime Shifting Models
Diğer yayınlar > Diğer · 2006
Yazarlar: Asiye Özlem ÖNDER
Diğer, Uluslararası, 2006,
Özet
This paper presents empirical evidence supporting instability of the Phillips curve in Turkey. We employ the multiple structural break models and the Markov switching models and then evaluate the performance of the two models. The data pertains to the monthly inflation rate in Turkey for the period of 1987-2004. The results show that the Turkish Phillips curve is not linear. There exists no evidence on the asymmetry in the inflation response to output gap. The persistence of inflation is found to be much lower than in linear models. After 2001 slight decline in persistence of inflation is observed.