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Journals / Dumlupınar Üniversitesi Sosyal Bilimler Dergisi / 2019 / Cilt: 0 - Sayı: 59

Determination of Money Demand Function in Turkey

TÜRKİYE’DE PARA TALEBİ FONKSİYONUNUN BELİRLENMESİ

Onur BAYRAM
Hasan Fevzi UCA
Pages
1–12
Publication Date
2022-10-11
DOI
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AI Summary & Key Takeaways

AI Insight
⚡ TL;DR(Too Long; Didn't Read)

Results show that broad money supply can be used as an effective policy instrument.

📌 3 Key Takeaways

🎯
Objective & Hypothesis:Determining the factors affecting money demand are very important.
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Key Findings & Data:In this study aimed to determine the money demand function in Turkey using quarterly data including the period 2006-2017.
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Conclusion & Impact:Results show that broad money supply can be used as an effective policy instrument.
🔬Design:Modeling & Simulation
📍Scope:2006-2017 Verileri
⚙️Variables:Para Talebi · Eşbütünleşme · İstikrar

Abstract

Determining the factors affecting money demand are very important. Monetary authorities can influence macroeconomic magnitudes by providing control over money balances. In order to make a reliable estimation of money demand firstly one must set the determinants of the money demand and its stability. In this study aimed to determine the money demand function in Turkey using quarterly data including the period 2006-2017. The autoregressive distrubuted lag (ARDL) approach, also known as bound test, was used to determine short and long-term relationships and a long-run cointegrating relationship was found between the variables. According to the findings, the coefficients are statistically significant and coefficient signs are consistent with theory. The long-run income, interest rate and exchange rate elasticities are 0.77, -0.01 and 0.17, respectively. The fact that the exchange rate variable has a positive effect is supported by the literature on wealth effect. The CUSUM and CUSUMSQ tests, which were applied to test the structural stability of the model, demonstrate that the model has stable over long-run. Results show that broad money supply can be used as an effective policy instrument.

Özet

Bu çalışmada 2006-2017 dönemini kapsayan çeyrek yıllık veriler kullanılarak Türkiye için para talebi fonksiyonunun belirlenmesi amaçlanmıştır. Değişkenler arasındaki kısa ve uzun dönemli ilişkilerin ortaya konulması amacıyla sınır testi olarak da bilinen Autoregressive Distrubuted Lag (ARDL) yaklaşımından faydalanılmış ve değişkenler arasında uzun dönemli eşbütünleşik ilişki tespit edilmiştir. Elde edilen bulgulara göre katsayılar istatistiksel olarak anlamlı ve katsayı işaretleri teoriyle uyumludur. Uzun dönemli gelir,faiz oranı ve döviz kuru esneklikleri sırasıyla 0.77, -0.01 ve 0.17’dir. Döviz kuru değişkeninin pozitif işarete sahip olması literatürdeki servet etkisi görüşünü desteklemektedir. Modelin yapısal kararlılığını test etmek amacıyla uygulanan CUSUM ve CUSUMSQ testleri ise modelin uzun dönemde istikrarlı olduğu sonucunu ortaya koymaktadır.

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Cite This Article

BAYRAM, O., UCA, H. F. (2022). Determination of Money Demand Function in Turkey. Dumlupınar Üniversitesi Sosyal Bilimler Dergisi, Cilt: 0 - Sayı: 59, 1–12. https://ajindex.com/articles/492532

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