SUSTAINABILITY OF BUDGET DEFICIT WITHIN THE FRAMEWORK OF INTERTEMPORAL EXTERNAL BALANCE APPROACHES IN TURKEY

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In this study sustainability of budget deficit in Turkey was analysed by using three different model with the data of 1987:M1-2013:M2 periods. In models, it was tested by using central government real budget revenues and central government real budget expenditures (including interest payments) series with Johansen co-integration method. In the analysis, 1987:M1-2013:M2 period was searched as two sub-terms and full term in order to see the effects of “The New Economic Stability Program”. As a result, it was determined that the budget deficit in Turkey in 1987-2001 periods was sustainable in very weak-form, in 2001-2013 periods was sustainable in strongform and in 1987-2013 periods was sustainable in weak-form.

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Budget Deficit , Sustainability , Intertemporal Balance Constraint

Journal Of Economics and Administrative Sciences, Ataturk University

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Journal Of Economics and Administrative Sciences, Ataturk University