Fiscal space is a fundamental capacity indicator that enables governments to use fiscal policy effectively and sustainably in the face of economic shocks and to achieve priority policy objectives. Global crises, deteriorations in debt dynamics, demographic transformations, and post-Covid-19 fiscal needs have made its importance more evident in recent years. In the study, numerous fiscal space indicators for OECD countries over 2011-2021 were combined into a single composite measure through principal component analysis, forming a fiscal space index. Testing the index against the output gap shows consistent responses to economic fluctuations. The findings indicate that convergence toward potential expands fiscal space, whereas exceeding potential narrows it.
This study examines the temporal dynamics of relationships among stocks traded on Borsa Istanbul between 2015 and 2025. Using a mutual information-based Minimum Spanning Tree (MST) approach, the network's topological evolution is analyzed through normalized tree length, centrality measures, survival ratios, and power-law tests within a rolling window framework. The findings reveal that networks become tighter and more centralized during crises, while they loosen and diversify during recovery periods. Moreover, degree and strength distributions largely conform to the power law, and significant relationships are identified between network indicators and return, volatility, and tail risk. These results highlight the potential of such metrics as early-warning signals in financial markets.
This study examines the impact of geopolitical risks and economic policy uncertainty on public expenditures in Turkiye using monthly data from 2006 to 2024. The causal relationship between total public expenditures (TPE) and Degi & scedil;en Turkiye Ornegi non-interest public expenditures (NIPE) is analyzed through a time-varying Granger causality approach. The findings indicate that geopolitical risks permanently increase both total public expenditures and non-interest public expenditures, while economic policy uncertainty generates more temporary and volatile effects. The results highlight the sensitivity of Turkiye's fiscal policy to external shocks and underline the importance of resilience in public finance.
Using data from the World Values Survey (2017-2021), this study examines the impact of factors such as ethical values, social norms, and perceived corruption on tax compliance, employing an ordered logistic regression analysis. The findings indicate that individuals' ethical values are the strongest determinant of tax compliance, whereas perceived corruption has a statistically significant but comparatively weaker effect. While a significant portion of the findings are consistent with existing literature, the study's clearer demonstration of the relative impact of ethical values compared to other factors constitutes a complementary contribution to the literature. Overall, the results confirm that tax compliance is shaped not only by economic incentives but also by individuals' values and perceptions. The findings demonstrate the importance of strengthening ethical values and social trust in enhancing voluntary tax compliance.
Tax revenues constitute the main source of public finance, especially in developing economies. While the literature mostly emphasizes supply-side determinants, institutional quality has recently gained attention as a significant factor affecting tax revenues. The study examines the impact of institutional quality on tax revenues in the Turkic Republics by employing annual data for the period 2002-2021 with the Panel ARDL method. The findings indicate that institutional quality has a long-term and statistically significant effect on tax revenues. In addition, it was concluded that GDP per capita, foreign direct investment, and economic globalization, which are used as control variables, also have a positive effect on tax revenues. The results emphasize the importance of institutional reforms in improving tax compliance and broadening the tax base.
