Thesis
Effects of the monetary macro-economy on Turkish agricultural prices: a structural vector autoregressive model approach
Washington State University
Master of Science (MS), Washington State University
05/2020
DOI:
https://doi.org/10.7273/000000055
Handle:
https://hdl.handle.net/2376/119264
Abstract
This study examines the importance of monetary macro-economic variables on Turkish
agricultural prices using structural vector autoregressive (SVAR) modeling over the period
December 2005 to December 2019. The research results suggest that Turkish monetary macroeconomic policy as represented by the TL/US exchange rate is the most significant monetary
factor influencing Turkish agricultural price instability. The paper also examines how
agricultural prices and industrial prices respond to a monetary shock and exchange rate shock by
using recursive and non-recursive methods. The results suggest that agricultural prices are less
responsive than industrial prices to a money supply shock over time. This is most likely due to
the inelastic nature of agricultural production as compared to manufacturing/industry where
supply is more elastic and responsive to price changes. According to the results, money is not
neutral in the long run and it does affect the relative price level in the long run. Moreover, the
results imply that industrial prices respond more quickly in the short run to an exchange rate
shock, but this is offset by a more rapid response of agricultural prices in later periods. This
conclusion supports Tweeten’s cost-prize squeeze hypothesis.
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Details
- Title
- Effects of the monetary macro-economy on Turkish agricultural prices: a structural vector autoregressive model approach
- Creators
- Yudum Turgut
- Contributors
- ERIC L JESSUP (Degree Supervisor) - Washington State University, Economic Sciences, School ofH ALAN LOVE (Committee Member) - Washington State University, Economic Sciences, School ofANA FABIOLA ESPINOLA-ARREDONDO (Committee Member) - Washington State University, Economic Sciences, School of
- Awarding Institution
- Washington State University
- Academic Unit
- Economic Sciences, School of
- Theses and Dissertations
- Master of Science (MS), Washington State University
- Publisher
- Washington State University
- Format
- pdf
- Number of pages
- 86
- Identifiers
- 99900591263701842
- Language
- English
- Resource Type
- Thesis