Please use this identifier to cite or link to this item: https://hdl.handle.net/11499/44111
Title: THE TWIN DEFICITS HYPOTHESIS: NEW EVIDENCE FROM GIIPS ACCOUNTING FOR STRUCTURAL SHIFTS IN CAUSAL LINKAGES
Other Titles: İKİZ AÇIK HİPOTEZİ: YAPISAL KIRILMALARIN DİKKATE ALINDIĞI NEDENSELLİK ANALİZİ İLE GIIPS ÜLKELERİ İÇİN YENİ KANITLAR
Authors: Çiftçi, Dilek Durusu
Keywords: İş;İşletme Finans;İletişim;İktisat;Çevre Çalışmaları;Tarih;Uluslararası İlişkiler;Hukuk;İşletme;Siyasi Bilimler;Kamu Yönetimi;Halkla İlişkiler;Sosyal Çalışma;Sosyoloji
Abstract: This study re-examines the dynamic causal link between government budget and current account deficits for five highly indebted European countries: Greece, Ireland, Italy, Portugal and Spain (GIIPS) with newly developed econometric techniques. Utilizing first Toda – Yamamoto causality analysis and then its Fourier approximation to consider structural shifts, this study asks whether accounting structural shifts plays a role on these causal linkages. The results reveal that considering structural shifts is important for the relationship between fiscal and current account imbalances of the GIIPS. The findings of analysis that does not consider structural changes indicate that the twin deficit hypothesis is supported through Keynesian Hypothesis (for Spain) or Current Account Targeting Hypothesis (for Greece and Portugal) but also Barro-Ricardo Equivalence Theorem is acknowledged for Ireland and Italy. On the other hand, the causality analysis that account for structural changes show that current account targeting hypothesis is supported by all countries, except Ireland.
URI: https://hdl.handle.net/11499/44111
https://doi.org/10.11611/yead.447788
ISSN: 2148-029X
2148-029X
Appears in Collections:İktisadi ve İdari Bilimler Fakültesi Koleksiyonu

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