A GENERAL EQUILIBRIUM INVESTIGATION OF THE OPTIMALITY OF TURKISH STRUCTURAL ADJUSTMENT, 1979 - 1983

Date

1990

Author

Yeldan, A. Erinç

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The paper attempts to assess the optimality of the Turkish structural adjustment programme in response to the 1979/80 external shocks. Using a computable general equilibrium model for Turkey as a planning device, techniques of optimal stochastic control are employed to investigate for the feasibility of a superior set of policy instruments which would have minimized the deviations of the shocked economy from its targeted path. The model results in general do not support many of the unidirectional prescriptions of the orthodox stabilization packages: and indicate that Turkey could have achieved a better adjustment performance by following a dynamic adjustment policy which is first targeted to the stabilization of the external trade and then switched around to the stabilization of the growth related variables.

URI

https://hdl.handle.net/11511/110958

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Department of Economics, Article