Inflation and Output Gaps Reconsidered Assymetries and Nonlinear Phillips Curve Evidence for the Turkish Economy

Bilman A. S., Utkulu U.

Journal of Yasar University, cilt.5, sa.19, 2010 (Hakemli Dergi)

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 5 Sayı: 19
  • Basım Tarihi: 2010
  • Dergi Adı: Journal of Yasar University
  • Derginin Tarandığı İndeksler: TR DİZİN (ULAKBİM)
  • Dokuz Eylül Üniversitesi Adresli: Evet

Özet

In this paper, the relationship between the inflation gap and output gap is investigated by adopting the Markov switching model and using monthly data between 1990:1 and 2008:5. To the findings, the relationship between inflation gap and output gap is nonlinear. The major contribution of this study is that regime probabilities are computed in the context of Markov switching model by following Chen (2006).