Template-type: ReDIF-Article 1.0
Author-Name: Bedri Kamil Onur Taş
Author-X-Name-First: Bedri Kamil Onur
Author-X-Name-Last: Taş
Author-Homepage: 
Author-Workplace-Name: TOBB University of Economics and Technology
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Author-Name: Hüseyin Ekrem Cunedioğlu
Author-X-Name-First: Hüseyin Ekrem
Author-X-Name-Last: Cunedioğlu
Author-Workplace-Name: Economic Policy Research Foundation of Turkey
Author-Workplace-Homepage: 
Title: How can recessions be brought to an end? Effects of macroeconomic policy actions on durations of recessions
Abstract: This paper analyzes how effective macroeconomic policy actions are in ending recessions.
	We also investigate which structural factors help the country to experience shorter recessions.
	We implement survival regression analysis and conclude that expansionary monetary policy
	significantly decreases durations of recessions whereas fixing the exchange rate does not
	have an effect on the durations of recessions. Expansionary fiscal policy has undesired
	effects and decreases the probability that recession will end, thus increasing the durations
	of recessions. The analysis of country specific factors indicates that emerging countries
	experience shorter recessions. Recessions in countries with higher trade openness last
	significantly longer. Financial openness and institutional quality do not have significant
	effects of recession durations. The empirical analysis takes into account alternative
	probability distributions and endogeneity of policy actions.
Classification-JEL: E32, E52, E62
Keywords: recession, macroeconomic policy, duration analysis
Journal: Journal of Applied Economics
Pages: 179-198
Number: 1
Volume: 17
Year: 2014
Month: May
File-URL: http://www.sciencedirect.com/science/journal/15140326/17/1
File-Format: application/pdf
File-Restriction: Online access is restricted to ScienceDirect
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Handle: RePEc:cem:jaecon:v:17:y:2014:n:1:p:179-198