THE LINKAGE BETWEEN FISCAL POLICY AND NON-PERFORMING HOUSEHOLD LOANS IN TURKEY

Main Article Content

Ercan Özen Sabina Hodžić Ahmet Eren Yildirim

Abstract

Frequent changes in fiscal policies are the main cause of credit risk. To prevent households from increasing their non-performing loans, the government can use various policies and instruments. One of these tools is tax regulations, with a particular focus on the value-added tax. This paper examines whether tax poli- cies have affected non-performing household loans in Turkey over the period from 2017 to 2021. To acquire meaningful empirical results, the Autoregressive Distributed Lag (ARDL) cointegration model have been ap- plied. The results of analysis indicated that the effect of tax regulations on non-performing household loans is quite strong. It can be demonstrated that the strength of the income effect generated by tax cuts might be robust.

Article Details

How to Cite
Özen, E., Hodžić, S., & Yildirim, A. (2022). THE LINKAGE BETWEEN FISCAL POLICY AND NON-PERFORMING HOUSEHOLD LOANS IN TURKEY. The South East European Journal of Economics and Business, 17(2), 113-124. Retrieved from http://journal.efsa.unsa.ba/index.php/see/article/view/1965
Section
Scientific and Professional papers: Economics and Business
Author Biographies

Ercan Özen, Faculty of Applied Sciences, University of Uşak, Turkey

Associate Professor
Faculty of Applied Sciences, University of Uşak, Turkey
E-mail: ercan.ozen@usak.edu.tr
ORCID: https://orcid.org/0000-0002-7774-5153

Sabina Hodžić, Faculty of Tourism and Hospitality Management, University of Rijeka, Croatia

(corresponding author)
Associate Professor
Faculty of Tourism and Hospitality Management, University of Rijeka, Croatia
Primorska 46, POB 97, Ika, 51410 Opatija
E-mail: sabinah@fthm.hr
ORCID: https://orcid.org/0000-0002-4202-3548

Ahmet Eren Yildirim, Faculty of Applied Sciences, University of Uşak, Turkey

Assistant Professor
Faculty of Applied Sciences, University of Uşak, Turkey E-mail: ahmet.yildirim@usak.edu.tr
ORCID: https://orcid.org/0000-0002-2405-3081