Siyaset Ekonomi ve Yönetim Araştırmaları Dergisi

Yazarlar: Oğuz TÜMTÜRK

Konular:-

Anahtar Kelimeler:Welfare Cost of Inflation,Money Demand,Cointegration,Interest Rate Elasticity

Özet: This paper follows Bailey 1956 and estimates the welfare cost of inflation in Turkey by using annual data for the period 1970-2013. In this study, two functional form of money demand specifications are estimated: Meltzer’s 1963 log-log specification, and 2 Cagan’s 1956 semi-log specification. Based on the results of the two competing specifications, it is decided to rely more on the welfare cost measure obtained under the log-log money demand specification. Estimation results suggest that welfare cost generated by an increase in inflation from 0 to 10 percent ranges between 0.52 and 0.54 percent of GDP using M1 as the measure of money.

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