The Unemployment Insurence Benefit as an Automatic Stabilizator: Turkey Case


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

  • Publication Type: Article / Article
  • Volume: Issue: 174
  • Publication Date: 2018
  • Title of Journal : MALIYE DERGISI
  • Page Numbers: pp.154-174


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.