The long term macroeconomic effects of fiscal discipline in turkey

Fiscal discipline has been important subject on the public finance literature since long term. This is because the Keynesian views advocating to compromise the fiscal discipline prevails and so the macroeconomic performance is influenced negatively. As a matter of fact, a lot of study supporting theoretical arguments about macroeconomic effects of fiscal indiscipline was made.In this study, the long term macroeconomic effects of fiscal indiscipline in Turkey are tested with using different econometric analysis. In the context of Vector Autoregression (VAR) Model, Granger Causality Test, Impulse-Response Test and Variance Decomposition are applied.