Policy regime change and structural break in the velocity of money: the Turkish evidence

2002-09-01
Cakan, E
Ozmen, E
The integration properties of Turkish velocity series are investigated by employing recently developed procedures (Zivot and Andrews (1992) and Perron (Journal of Econometrics, 80, 355-85, 1997)) which allows stationarity around an endogenously estimated structural break point under the alternative hypothesis. The evidence suggests that real currency balances and currency velocity are stationary around a broken trend. The estimated break point coincides with a major policy regime change in Turkey. Broad money velocity and real broad money balances are found to be nonstationary even after allowance for a broken mean and trend.

Citation Formats
E. Cakan and E. Ozmen, “Policy regime change and structural break in the velocity of money: the Turkish evidence,” APPLIED ECONOMICS LETTERS, vol. 9, no. 11, pp. 759–762, 2002, Accessed: 00, 2020. [Online]. Available: https://hdl.handle.net/11511/65799.