EFFECTS OF GOVERNMENT FRACTIONALIZATION ON ECONOMY:
TURKISH EXPERIENCE

Yılmaz AKDİ (Ankara University)
Aslı GÜNAY (Bilkent University)

This study analyzes the effects of different types of government structures on various fiscal, monetary¯o variables in Turkey during the 1985:01-2001:11 period. The empirical evidence presented here suggests that when Turkey is governed by minority governments, expenditures increase as expected but there is no significant effect on monetary variables, inflation and output. On the other hand, as the number of parties in a colation government increase; government spending, other expenditure items and monetary aggregates increase and taxes decrease.