Show/Hide Menu
Hide/Show Apps
Logout
Türkçe
Türkçe
Search
Search
Login
Login
OpenMETU
OpenMETU
About
About
Open Science Policy
Open Science Policy
Open Access Guideline
Open Access Guideline
Postgraduate Thesis Guideline
Postgraduate Thesis Guideline
Communities & Collections
Communities & Collections
Help
Help
Frequently Asked Questions
Frequently Asked Questions
Guides
Guides
Thesis submission
Thesis submission
MS without thesis term project submission
MS without thesis term project submission
Publication submission with DOI
Publication submission with DOI
Publication submission
Publication submission
Supporting Information
Supporting Information
General Information
General Information
Copyright, Embargo and License
Copyright, Embargo and License
Contact us
Contact us
Information frictions and the effects of news media bias on consumption /
Download
index.pdf
Date
2014
Author
Aşçıoğlu, Mert
Metadata
Show full item record
Item Usage Stats
218
views
79
downloads
Cite This
This thesis develops a model that incorporates information frictions and consumption behavior in order to explain the observations of higher volatility of consumption as well as its excess sensitivity to income in the developing countries. The information frictions in the model arise both from the information source, specified as the biased news media, and the conditions of the consumers that affect the costs they face in forming full information rational expectations. These two channels are argued to be more effective in the developing countries. The model in this thesis uses these specifications to define a heuristic by which the consumers dynamically switch their expectation structures. In each period the consumers choose from two types of expectation structures: full information rational expectations, and expectations through the information provided by the news media. The latter may be biased while the former is costlier to use. The simulation results suggest that higher degrees of information frictions cause higher volatility of consumption as well as an excess sensitivity of consumption to income. Therefore, a higher bias in the source of information as well as higher costs of forming full information rational expectations are proposed as candidates for explaining the different dynamics of consumption between the developed and the developing countries.
Subject Keywords
Consumption (Economics).
URI
http://etd.lib.metu.edu.tr/upload/12617677/index.pdf
https://hdl.handle.net/11511/23786
Collections
Graduate School of Social Sciences, Thesis
Suggestions
OpenMETU
Core
The dominance of the dollar and its sustainability in the international monetary system
Köse, Tekin; Ege, Aylin; Department of Economics (2008)
The aim of this thesis is to analyze and evaluate the dominance of the dollar and its sustainability in the international monetary system in the light of recent literature and relevant statistical data. Considering the determinants of an international currency, this thesis focuses on the linkages of the dominance of the dollar with the challenge of the euro as an alternative international currency, the current account deficit of the U.S. and foreign exchange reserve accumulation and reserve diversification ...
Macroeconomic impact of workers' remittances on output growth: evidence from Turkey
Yaşar, Pınar; Tansel, Aysıt; Department of Economics (2005)
In this study, a demand oriented simultaneous equation macroeconometric model with a dynamic perspective is constructed in order to investigate the impact of workers̕ remittances on output growth via their effects on key macro variables such as private consumption, investment and imports for Turkey. The study covers the period of 1964-2003 on an annual basis. Results of the analysis suggest that workers̕ remittances affect output growth in a positive manner through the multiplier process. It is found that t...
Determinants of current account deficits in industrialized and developing coıuntries: an empirical investigation
Kaya Bahçe, Seçil Aysed; Kaya Bahçe, Seçil Aysed; Department of Economics (2005)
This study aims to analyze the determinants of the current account deficits for a broad samples of industrial and developing countries for the period 1984-2001. Using a dynamic panel data estimation procedure, we try to unfold the impact of several macro economic and institutional variables on current account deficits. In this context, we also examine the validity of Feldstein Horioka puzzle and its relevance to the current account imbalances. Results show that better governance, a more sophisticated financ...
Demand estimation, relevant market definition and identification of market power in Turkish Beverage Industry
Kalkan, Ekrem; Taymaz, Erol; Department of Economics (2010)
This dissertation aims to contribute to the field of economics of competition policy by analyzing the demand structure and the market power in the Turkish beverage industry and in the cola market in particular. First, a demand system for the beverage products has been estimated by using a multi-stage linearized Almost Ideal Demand System (AIDS). Using the own-price elasticity of cola in a SSNIP test (Small but Significant Non-Transitory Increase in Price), it is shown that cola market consists of a distinct...
Multiregional social accounting matrix and multiplier analysis: an application for Turkish economy
Erdoğan, Eda; Voyvoda, Ebru; Department of Economics (2011)
Social accounting matrix (SAM) is one of the tools used in regional economic analysis, enabling understanding the structure of the economy as well as analyzing the impacts of policies or exogenous shocks. In this thesis, a two-region SAM of Turkey is constructed for the year 2002 and the findings of multiplier analysis are presented. To this end, first, a two-region input-output (I-O) table is constructed using location quotient (LQ) method and using this two-region I-O table, a two-region SAM is compiled. ...
Citation Formats
IEEE
ACM
APA
CHICAGO
MLA
BibTeX
M. Aşçıoğlu, “Information frictions and the effects of news media bias on consumption /,” M.S. - Master of Science, Middle East Technical University, 2014.