Developing countries are more sensitive to developments in global markets and capital movements. Therefore, their financial stress should not be high enough to put the economic recovery in danger when faced with problems originating from financial markets. In this paper, it is aimed to provide benefit to policymakers by creating a financial stress index that covers the period from 1990:01 to 2017:02 for Turkey in order to monitor financial stability. The variables included in the index are chosen among the variables that define the high stress conditions in financial markets. Markov regime switching models have been defined for this financial stress index, with the help of these models, low stress, normal stress and high stress periods in financial markets have been determined. The findings have been reached that high stress periods concentrated in the crisis years

Purpose This study aims to examine the hysteresis hypothesis in unemployment using monthly data from 13 countries in transition. Design/methodology/approach Stationarity in the unemployment rate of selected transition economies was analyzed using four different group unit root tests, namely, linear, structural breaks, non-linear and structural breaks and non-linear. Findings The empirical results show that the unemployment hysteresis hypothesis is valid for the majority of transition economies, including Bulgaria, Croatia, the Czech Republic, Estonia, Hungary, the Kyrgyz Republic, Latvia, Lithuania, Poland, Romania and Slovenia. However, the results strongly reject the null hypothesis of unemployment hysteresis for the Kazakhstan and the Slovak Republics. Originality/value This study revealed that, for countries in transition, advanced unit root tests exhibit greater validity when compared to standard tests

It is very important that the housing market, which meets the most basic need of people is needed for shelter from the past to the present, has a stable structure. The instability structure of the housing market is generally associated with the presence of housing bubbles. The deviation of housing prices from their basic value and not being able to be explained by economic fundamentals leads to the formation of housing bubbles. Housing bubbles can lead to permanent losses, as it may take a long time to return to normal prices. For Turkey as a developing country, it is important to identify an unstable structure in house prices discuss the basic economic factors related to this. After the global increases in housing prices, inflation, and depreciation in the Turkish lira, Turkey has become the country with the highest housing price increases globally in 2020. In the study, the presence of bubbles in the housing market for Ankara, Izmir, Istanbul, and Turkey in general, was investigated by SADF and GSADF unit root tests for the period 2010:01-2021:02. In this context, the study examines the presence of bubbles in housing prices for Ankara, Izmir, Istanbul, and Turkey in general, which are the three cities with the highest price increases. As a result of the study, the presence of bubbles in the housing market has been determined for Ankara, Istanbul, Izmir, and Turkey in general.

We examine the stationarity properties of primary energy consumption for "Fragile Five" countries and assesses whether shocks on coal, natural gas, and oil consumption are permanent or temporary. The findings suggest that shocks on coal consumption are temporary for Brazil, South Africa, and Turkey, while are permanent for India and Indonesia. Moreover, the effect of shocks on natural gas consumption is temporary for five fragile countries except for South Africa. Finally, it is found that shocks on oil consumption are temporary for only India and Indonesia.

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