RESEARCH
Arizona State University, Job Market Paper, 2017
ABSTRACT - This paper explains the U-shape female labor supply over economic development. For that, I develop a general equilibrium model with home production and multiple sectors at home and in the market. The theoretical results show that uneven technological growth and its alternating impact on three forces is the root of this pattern. These three forces are structural transformation, marketization and women's leisure-work decisions. According to this, structural transformation mainly causes the decrease in labor force whereas marketization and leisure-work choices are the main causes for the increase. The model parameters are calibrated for the US data and a cross-national analysis is made. Results confirm the theoretical implications.
Arizona State University, Third Year Paper Requirement, 2015
ABSTRACT - This paper develops a methodology to verify and compute the existence of recursive equilibrium in dynamic economies with capital accumulation and elastic labor supply. The method I develop stems from the multi-step monotone mapping methodology which is based on monotone operators and solving a fixed point problem at each step. The methodology is not only useful for verifying and computing the recursive competitive equilibrium, but also useful for obtaining intra- and inter-temporal comparative dynamics. I provide robust intra-temporal comparative statics about how consumption and leisure decisions change in response to changes in capital stock and inverse marginal utility of consumption. I also provide inter-temporal equilibrium comparative dynamics about how recursive equilibrium consumption and investment respond to changes in discount factor and production externality. Different from intra-temporal comparative statics, these are not robust as they only apply to a subclass of equilibrium where
investment level is monotone.
Bilkent University, Master's Thesis, 2012
ABSTRACT - Following the recent financial crisis, reserve requirements have become a policy instrument preferred in many emerging markets such as China, Brazil and Turkey for various purposes. Therefore, the formulating a theoretical framework to study the policy effectiveness remains an important issue. In this thesis, I develop a DSGE model with the financial accelerator mechanism so as to see the effectiveness of reserve requirement in small open economies, especially in influencing the external imbalances. External imbalances can either be interpreted as current account imbalances or its mirroring capital account imbalances. The main channel through which the external balances play a role is via the banking sector, which is modelled as engaging in international borrowing. This framework allows examination of the responses of the external imbalances to shocks to the reserve requirement ratio As a result, higher reserve requirements make domestic borrowing cheaper than foreign borrowing and by this way, changes in net foreign liabilities create a current account surplus. Thus, a country with current account deficit can use reserve requirements to readjust its external imbalances.