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Journals / Fiscaoeconomia / 2020 / Cilt: 4 - Sayı: 3

How Oil Prices Drive Inflation in Turkish Economy: Two Different Channels

Bilgin BARİ
Zafer ADALI
Pages
705–721
Publication Date
2020-09-20
DOI
—
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AI Summary & Key Takeaways

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

The result indicates that the decreases in oil prices are not taken into account in pricing decisions.

📌 3 Key Takeaways

🎯
Objective & Hypothesis:This study analyzes the impact of changes in oil prices on consumer inflation in Turkey.
📊
Key Findings & Data:These effects differ symmetrically and asymmetrically for the period 2009:01-2020:04.
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Conclusion & Impact:The result indicates that the decreases in oil prices are not taken into account in pricing decisions.
🔬Design:Modeling & Simulation
📍Scope:2009 Verileri
⚙️Variables:Oil Price · Nonlinear ARDL Model · Gasoline Price

Abstract

This study analyzes the impact of changes in oil prices on consumer inflation in Turkey. We compare the effects of the changes in crude oil and gasoline prices on the consumer prices. These effects differ symmetrically and asymmetrically for the period 2009:01-2020:04. For this purpose, inflationary effects are estimated using linear and non-linear ARDL models. According to the findings, changes in both oil and fuel prices have asymmetric effects on inflation in the short run. Both models explain the changes in consumer inflation with the increases in oil prices in the long run. The result indicates that the decreases in oil prices are not taken into account in pricing decisions.

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Cite This Article

BARİ, B., ADALI, Z. (2020). How Oil Prices Drive Inflation in Turkish Economy: Two Different Channels. Fiscaoeconomia, Cilt: 4 - Sayı: 3, 705–721. https://ajindex.com/articles/716267

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