Abstract
ABSTRACT The paper, using a simple theory‐based measure of the variations in aggregate economic efficiency in a New Keynessian structure, analyses the nature of the business fluctuations and estimates their welfare costs in Turkey during the period 1998–2009. The measure contains two components: a price markup and a wage markup. It seems that the latter mainly drives the fluctuations in Turkey. The paper also shows that inefficient fluctuations in the allocation of resources do generate moderate welfare costs on average. However, the aggregate efficiency costs increase much more during deep recessions.
Keywords
Economics
Welfare
Recession
Business cycle
Aggregate (composite)
Measure (data warehouse)
Markup language
Wage
Econometrics
Microeconomics
Monetary economics
Macroeconomics
Labour economics
Computer science
Market economy
Subject Areas
Monetary Policy and Economic Impact
·General Economics, Econometrics and Finance ·Social Sciences
Economic Theory and Policy
·General Economics, Econometrics and Finance ·Social Sciences
Market Dynamics and Volatility
·Economics and Econometrics ·Social Sciences
OpenAlex SDG Match
SDGs auto-classified by OpenAlex (score ≥ 0.4 shown).
Decent work and economic growth 72%
Loading…