Investigation of Asymmetric Relationship Between Consumer and Producer Prices in Turkey: Evidence from Hidden Cointegration and Asymmetric Causality Analyses
Özet
The continuity of price stability is a necessity for the successful management
of economic policy, especially monetary policy. Considering that price
instability will lead to policy failure, it is extremely important that the general
level of prices be accurate and predictable. When the interaction of prices
within its own internal mechanism is considered within the scope of the
production chain, an evaluation can be made with the distinction of producer
and consumer prices. In this regard, the literature has two different views as
supply-side and demand-side price transmission. In this study, it is aimed to
determine which view is dominant between producer and consumer prices in
Turkey. In addition, asymmetric techniques were used while investigating
long and short-term relationships based on the idea that there may be an
asymmetric structure in price transmission. In the analysis process, the
interaction of domestic, agricultural and service producer prices with
consumer prices was investigated. According to the results, although supplyside price transmission is valid in the long run, it is seen that the demand-side
effect is more significant. In the short run, it can be stated that there is a
supply-side price transmission. It is thought that the obtained findings will
make significant contributions to the authorities and researchers in the
formation of policies based on the inflation targeting regime in terms of the
variables used and the analysis technique.
Kaynak
Alanya Akademik BakışCilt
6Sayı
2Bağlantı
https://dergipark.org.tr/tr/download/article-file/2021063https://hdl.handle.net/20.500.12868/1860