Topics in Middle Eastern and North African Economies
Document Type
Article
Publication Date
9-1-2013
Abstract
This study investigates the validity of both the conventional and tax-adjusted Fisher effects using time series methods such as the ARDL bounds test, and Gregory-Hansen (G-H) cointegration test. To compare the conventional and tax-adjusted Fisher effects, we use two different time series data for interest rates: 1) interest rates adjusted for taxes, and 2) interest rates not adjusted for taxes. Using monthly changes in quarterly and annual interest and inflation rates, both the G-H and ARDL bound tests support the conventional and tax-adjusted Fisher effects. However, the magnitude of the inflation coefficient in the long-run relationship tends to decline for the tax adjusted Fisher effect.
Identifier
2334-282X
Journal Title
Topics in Middle Eastern and North African Economies
ISSN
2334-282X
Publisher
Middle East Economic Association and Loyola University Chicago
Volume
15
Recommended Citation
Lopcu, Kenan; Coşkun, Nuran; and Değirmen, Süleyman, "Do Tax Implications Change the Fisher Effect for the Turkish Economy?". Topics in Middle Eastern and North African Economies, electronic journal, 15, Middle East Economic Association and Loyola University Chicago, 2013, http://www.luc.edu/orgs/meea/
Creative Commons License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License.
Copyright Statement
© 2013 the authors
Comments
Presentation of the articles in the Topics in Middle Eastern and North African Economies was made possible by a limited license granted to Loyola University Chicago and Middle East Economics Association from the authors who have retained all copyrights in the articles. http://www.luc.edu/orgs/meea/volume15/meea15.htm