Free market economy: Is the market or prices free? Theory and evidence from the United States

Karacan R., Yardımcı M. E.

AMERICAN JOURNAL OF ECONOMICS AND SOCIOLOGY, cilt.83, sa.1, ss.59-74, 2024 (SSCI) identifier identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 83 Sayı: 1
  • Basım Tarihi: 2024
  • Doi Numarası: 10.1111/ajes.12513
  • Dergi Adı: AMERICAN JOURNAL OF ECONOMICS AND SOCIOLOGY
  • Derginin Tarandığı İndeksler: Social Sciences Citation Index (SSCI), Scopus, IBZ Online, International Bibliography of Social Sciences, Periodicals Index Online, ABI/INFORM, American History and Life, Business Source Elite, Business Source Premier, EconLit, Educational research abstracts (ERA), Historical Abstracts, Index Islamicus, MLA - Modern Language Association Database, PAIS International, Political Science Complete, Public Administration Abstracts, Public Affairs Index, Social services abstracts, Sociological abstracts, vLex, Worldwide Political Science Abstracts
  • Sayfa Sayıları: ss.59-74
  • Kocaeli Üniversitesi Adresli: Evet

Özet

Global price increases have reached their highest levels in recent times. Finding the reasons for the price increase is very important for economic stabilization. In this paper, it has been estimated that exorbitant price increases may be related to a free market economy. For this purpose, unlike other studies, a comparative analysis of the impact of the free market economy on prices was conducted. The study covers the period 1990-2020, and using the U.S. economy, which is a free market economy, the relationship between property rights, the size of government in the economy, and prices were examined using the autoregressive distributed lag model. The results show that the free market model has a positive effect on the price increase, while the size of the government's economy does not affect the price increase in the same direction. This study aims to provide a different perspective to policymakers in the fight against price instability, which is one of the most important problems facing the economy.