The Time-Varying Effect of Asset Prices on Turkey’s Circular Economy

The study aims to examine the effects of spillovers from stock prices on consumption and interest rates in Turkey. From the circular economy viewpoint, there should be sustainable consumption to achieve sustainable development with the help of consumers and other stakeholders. A time-varying vector...

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Autores principales:	Mehmet Balcilar, Evrim Toren
Formato:	article
Lenguaje:	EN
Publicado:	MDPI AG 2021
Materias:	circular economy sustainable development stochastic volatility TVP-VAR Environmental effects of industries and plants TD194-195 Renewable energy sources TJ807-830 Environmental sciences GE1-350
Acceso en línea:	https://doaj.org/article/efceebc80dbf4edbb6946f01399cf870
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spelling	oai:doaj.org-article:efceebc80dbf4edbb6946f01399cf8702021-11-25T19:00:30ZThe Time-Varying Effect of Asset Prices on Turkey’s Circular Economy10.3390/su1322123732071-1050https://doaj.org/article/efceebc80dbf4edbb6946f01399cf8702021-11-01T00:00:00Zhttps://www.mdpi.com/2071-1050/13/22/12373https://doaj.org/toc/2071-1050The study aims to examine the effects of spillovers from stock prices on consumption and interest rates in Turkey. From the circular economy viewpoint, there should be sustainable consumption to achieve sustainable development with the help of consumers and other stakeholders. A time-varying vector autoregressive (TVP-VAR) model with stochastic volatility is used in the study. The aim is to obtain dynamics that stimulate growth, development, recession or change within the Turkish economy according to the emphases on circular economy. In order to analyze the relationship between real consumption, nominal interest rate and real stock prices, the TVP-VAR model is specified as a three-variable, time-varying model. The sample data that have been gathered from the Central Bank of the Republic of Turkey cover the period between Q1 1987 and Q3 2013. Overall, this study provides significant evidence of spillovers on consumption and interest rate during financial crises in Turkey, and the implications of monetary policy. In addition, the TVP model with stochastic volatility offers remarkable results regarding the influence of price shock on consumption in Turkey. However, we do not find any significant effect from interest rate to real consumption.Mehmet BalcilarEvrim TorenMDPI AGarticlecircular economysustainable developmentstochastic volatilityTVP-VAREnvironmental effects of industries and plantsTD194-195Renewable energy sourcesTJ807-830Environmental sciencesGE1-350ENSustainability, Vol 13, Iss 12373, p 12373 (2021)
institution	DOAJ
collection	DOAJ
language	EN
topic	circular economy sustainable development stochastic volatility TVP-VAR Environmental effects of industries and plants TD194-195 Renewable energy sources TJ807-830 Environmental sciences GE1-350
spellingShingle	circular economy sustainable development stochastic volatility TVP-VAR Environmental effects of industries and plants TD194-195 Renewable energy sources TJ807-830 Environmental sciences GE1-350 Mehmet Balcilar Evrim Toren The Time-Varying Effect of Asset Prices on Turkey’s Circular Economy
description	The study aims to examine the effects of spillovers from stock prices on consumption and interest rates in Turkey. From the circular economy viewpoint, there should be sustainable consumption to achieve sustainable development with the help of consumers and other stakeholders. A time-varying vector autoregressive (TVP-VAR) model with stochastic volatility is used in the study. The aim is to obtain dynamics that stimulate growth, development, recession or change within the Turkish economy according to the emphases on circular economy. In order to analyze the relationship between real consumption, nominal interest rate and real stock prices, the TVP-VAR model is specified as a three-variable, time-varying model. The sample data that have been gathered from the Central Bank of the Republic of Turkey cover the period between Q1 1987 and Q3 2013. Overall, this study provides significant evidence of spillovers on consumption and interest rate during financial crises in Turkey, and the implications of monetary policy. In addition, the TVP model with stochastic volatility offers remarkable results regarding the influence of price shock on consumption in Turkey. However, we do not find any significant effect from interest rate to real consumption.
format	article
author	Mehmet Balcilar Evrim Toren
author_facet	Mehmet Balcilar Evrim Toren
author_sort	Mehmet Balcilar
title	The Time-Varying Effect of Asset Prices on Turkey’s Circular Economy
title_short	The Time-Varying Effect of Asset Prices on Turkey’s Circular Economy
title_full	The Time-Varying Effect of Asset Prices on Turkey’s Circular Economy
title_fullStr	The Time-Varying Effect of Asset Prices on Turkey’s Circular Economy
title_full_unstemmed	The Time-Varying Effect of Asset Prices on Turkey’s Circular Economy
title_sort	time-varying effect of asset prices on turkey’s circular economy
publisher	MDPI AG
publishDate	2021
url	https://doaj.org/article/efceebc80dbf4edbb6946f01399cf870
work_keys_str_mv	AT mehmetbalcilar thetimevaryingeffectofassetpricesonturkeyscirculareconomy AT evrimtoren thetimevaryingeffectofassetpricesonturkeyscirculareconomy AT mehmetbalcilar timevaryingeffectofassetpricesonturkeyscirculareconomy AT evrimtoren timevaryingeffectofassetpricesonturkeyscirculareconomy
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The Time-Varying Effect of Asset Prices on Turkey’s Circular Economy

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