The Unemployment Insurence Benefit as an Automatic Stabilizator: Turkey Case

AKAR S., UYSAL ŞAHİN Ö.

MALIYE DERGISI, no.174, pp.154-174, 2018 (ESCI) identifier

  • Publication Type: Article / Article
  • Volume: Issue: 174
  • Publication Date: 2018
  • Journal Name: MALIYE DERGISI
  • Journal Indexes: Emerging Sources Citation Index (ESCI), TR DİZİN (ULAKBİM)
  • Page Numbers: pp.154-174
  • Çanakkale Onsekiz Mart University Affiliated: Yes

Abstract

In this study, whether the unemployment benefit is an automatic stabilizer in the business cycle of Turkey analyzed by Johansen Cointegration, Vector Error Correction model and Granger causality test. The data set covers the period from January, 2004 to October, 2017. According to the results, in line with expectations, it was determined that there is a short-term causality relationship among the industrial production index, given unemployment benefit and unemployment rate. Moreover, there is a bidirectional relationship between the industrial production index and the unemployment benefit, while there is a unidirectional relationship among the other variables.