Analysis of Fiscal Sustainability in Türkiye: NARDL Method

Sustainability is the use of existing resources in an economy without excessive destruction, considering the welfare of future generations. The reflection of sustainability, a concept that concerns every field in finance, has been in the form of fiscal sustainability. Fiscal sustainability is associ...

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Main Author: Ebru Karaş
Format: Article
Language:English
Published: Istanbul University Press 2024-11-01
Series:Maliye Çalışmaları Dergisi
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Online Access:https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/1EE693F028DC42A2957BBC3547948D1A
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author Ebru Karaş
author_facet Ebru Karaş
author_sort Ebru Karaş
collection DOAJ
description Sustainability is the use of existing resources in an economy without excessive destruction, considering the welfare of future generations. The reflection of sustainability, a concept that concerns every field in finance, has been in the form of fiscal sustainability. Fiscal sustainability is associated with the state’s ability to pay and is explained through budget deficits and public debt burden indicators. This study determines whether fiscal sustainability exists in Türkiye between 2000 and 2023throughtheNonlinear BoundsTest(NARDL).TheNARDLmethodconsiders the asymmetric effects of the variables included in the model. Accordingly, fiscal sustainability in Türkiye was investigated using two separate models created in the study, considering the positive and negative effects of the variables. When the f indingsobtainedwereevaluated,itwasconcludedthattherewasfiscalsustainability in Türkiye in the period examined. However, the degree of fiscal sustainability was weak in both created models. It was concluded that decreased public expenditures increased public revenues in the long term while reducing public debts increased the budgetbalance.Inaddition, it hasbeenconcludedthattheincreasesanddecreasesin public expenditures, among the variables used in determining fiscal sustainability, have asymmetric effects on public revenues. In this context, taking the existing sustainability into a stronger form by considering its asymmetric effects is crucial for the stability of fiscal policies.
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spelling doaj-art-7a3ab8cfbf1142d4ae4732a03512336e2025-08-20T02:16:06ZengIstanbul University PressMaliye Çalışmaları Dergisi2757-67282024-11-0172647810.26650/mcd2024-1559287123456Analysis of Fiscal Sustainability in Türkiye: NARDL MethodEbru Karaş0https://orcid.org/0000-0003-0625-3722Uşak Üniversitesi, Usak, TurkiyeSustainability is the use of existing resources in an economy without excessive destruction, considering the welfare of future generations. The reflection of sustainability, a concept that concerns every field in finance, has been in the form of fiscal sustainability. Fiscal sustainability is associated with the state’s ability to pay and is explained through budget deficits and public debt burden indicators. This study determines whether fiscal sustainability exists in Türkiye between 2000 and 2023throughtheNonlinear BoundsTest(NARDL).TheNARDLmethodconsiders the asymmetric effects of the variables included in the model. Accordingly, fiscal sustainability in Türkiye was investigated using two separate models created in the study, considering the positive and negative effects of the variables. When the f indingsobtainedwereevaluated,itwasconcludedthattherewasfiscalsustainability in Türkiye in the period examined. However, the degree of fiscal sustainability was weak in both created models. It was concluded that decreased public expenditures increased public revenues in the long term while reducing public debts increased the budgetbalance.Inaddition, it hasbeenconcludedthattheincreasesanddecreasesin public expenditures, among the variables used in determining fiscal sustainability, have asymmetric effects on public revenues. In this context, taking the existing sustainability into a stronger form by considering its asymmetric effects is crucial for the stability of fiscal policies.https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/1EE693F028DC42A2957BBC3547948D1Apublic expenditurespublic revenuespublic debt stockbudget balancenardl method
spellingShingle Ebru Karaş
Analysis of Fiscal Sustainability in Türkiye: NARDL Method
Maliye Çalışmaları Dergisi
public expenditures
public revenues
public debt stock
budget balance
nardl method
title Analysis of Fiscal Sustainability in Türkiye: NARDL Method
title_full Analysis of Fiscal Sustainability in Türkiye: NARDL Method
title_fullStr Analysis of Fiscal Sustainability in Türkiye: NARDL Method
title_full_unstemmed Analysis of Fiscal Sustainability in Türkiye: NARDL Method
title_short Analysis of Fiscal Sustainability in Türkiye: NARDL Method
title_sort analysis of fiscal sustainability in turkiye nardl method
topic public expenditures
public revenues
public debt stock
budget balance
nardl method
url https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/1EE693F028DC42A2957BBC3547948D1A
work_keys_str_mv AT ebrukaras analysisoffiscalsustainabilityinturkiyenardlmethod