M. Burak Onemli - Academia.edu (original) (raw)

Papers by M. Burak Onemli

Kuram Ve Uygulamada Egitim Bilimleri, 2012

Business and Economics Research Journal, Jul 1, 2012

Mandatory network unbundling is one of the most important topics in regulatory economics today. T... more Mandatory network unbundling is one of the most important topics in regulatory economics today. The concept has crucial importance in the deregulation of many previously regulated industries including electricity, telecommunications, gas and railroads. Upon initial examination, determining the correct input prices would seem important for sending the correct price signals to the entrants for their efficient make-or-buy decisions. However, Sappington uses a standard Hotelling location model to show that input prices are irrelevant for an entrant's make or buy decision. In this study, it is shown that this result is closely related to the degree of product differentiation when firms are engaged in price competition. Specifically, it is shown that input prices are irrelevant when firms produce homogeneous products, but are relevant for make-or-buy decisions when the entrant and incumbent produce differentiated products. These results suggest that, in general, it is important for regulators to set correct prices in order to not distort the entrants' efficient make-or-buy decisions.

Mandatory network unbundling is one of the foremost topics in regulatory economics today. The con... more Mandatory network unbundling is one of the foremost topics in regulatory economics today. The concept has crucial importance in the deregulation of many previously regulated industries including telecommunications, gas, electricity and railroads. Moreover, the topic has emerged as one of the more prominent issues associated with the implementation of the 1996 Telecommunication Act in the United States. Upon initial examination, establishing the correct costing standards and/or determining the correct input prices would seem important for sending the correct price signals to the entrants for their efficient make-or-buy decisions. Sappington (AER, 2005) uses a standard Hotelling location model to show that input prices are irrelevant for an entrant's make or buy decision. In this first essay, we show that this result is closely related to the degree of product differentiation when firms are engaged in price competition. Specifically, it is shown that input prices are irrelevant when firms produce homogeneous products, but are relevant for make-or-buy decisions when the entrant and incumbent produce differentiated products. These results suggest that, in general, it is important for regulators to set correct prices in order to not distort the entrants' efficient make-or-buy decisions. The second essay investigates optimal access charges when the downstream markets are imperfectly competitive. Optimal access charges have been examined in the literature mainly under the condition where only the incumbent has market power. However, network industries tend to exhibit an oligopolistic market structure. Therefore, the optimal access charge under imperfect competition is an important consideration when regulators determine access charges. This essay investigates some general principles for setting optimal access charges when downstream markets are imperfectly competitive. One of the primary objectives of this essay is to show the importance of the break-even constraint when first-best access charges are not feasible. Specifically, we show that when the first-best access charges are not feasible, the imposition of the break-even constraint on only the upstream profit of the incumbent is superior to the case where break-even constraint applies to overall incumbent profit, where the latter is the most commonly used constraint in the access pricing literature. Bypass and its implications for optimal access charges and welfare are also explored. The third essay is empirical in nature and investigates two primary issues, both relating to unbundled network element (UNE) prices. First, as Crandall, Ingraham, and Singer (2004) suggested, we will empirically test the stepping stone hypothesis using a state-level data set that spans multiple years. To do this, we will explore the effect of UNE prices on facilities-based entry. Second, in light of those findings, we will investigate whether the form of regulation (e.g. price cap and rate of return regulation) endogenously affects the regulator's behavior with respect to competitive entry. Lehman and Weisman (2000) found evidence that regulators in price cap jurisdictions tend to set more liberal terms of entry in comparison with regulators in rate-of-return jurisdictions. This paper investigates whether their result is robust to various changes in modeling, including specification and econometric techniques.

Eurasian Journal of Business and Economics, May 30, 2015

This study investigates whether there is a political business cycle (PBC) on the agricultural sup... more This study investigates whether there is a political business cycle (PBC) on the agricultural supports in the Turkish economy. In this respect, we investigate the policies of different Turkish governments for the agricultural supports measured by the producer support estimates for the period 1986-2011. To this end, first the series for the producer support estimates are filtered by the Hodrick-Prescott filter, and then an econometric model is employed to estimate the effects of a set of explanatory variables including the economic crisis, the opportunistic and the partisan characteristics of the incumbent parties. Our results provide limited support for the opportunistic type PBC. Moreover, it seems that some Turkish governments have created the partisanship type PBCs.

Advances in finance, accounting, and economics book series, 2016

This chapter aims to analyze the evolution of Turkish wage structure following the introduction o... more This chapter aims to analyze the evolution of Turkish wage structure following the introduction of new labor law in 2003 in the EU accession process. The authors first present a descriptive picture of the changes in wage inequality between 2003 and 2013. They then conduct an econometric analysis of the relative importance of individual, job- and workplace-related factors on wages across the wage distribution to understand what drives this outcome. It is found that wage inequality decreased from 2003 to 2007, and increased during the global economic crisis. Increased returns to college education, skilled white collar jobs as well as returns to construction sector stand out as the major factors increasing wage inequality. Though to a lesser extent, increased returns to blue-collar jobs, formal job status and reduced returns to employment in large firms are factors reducing wage inequality in Turkey in the post-2003 era.

Ege Academic Review, 2012

Mandatory network unbundling is perhaps one of the foremost topics in regulatory economics today.... more Mandatory network unbundling is perhaps one of the foremost topics in regulatory economics today. The concept has crucial importance in the deregulation of many previously regulated industries including telecommunications, gas, electricity and railroads. Moreover, the topic has emerged as one of the more prominent issues associated with the implementation of the 1996 Telecommunication Act in the United States. Upon initial examination, establishing the correct costing standards and/or determining the correct input prices would seem important for sending the correct price signals to the entrants for their efficient make-or-buy decisions. However, Sappington uses a standard Hotelling location model to show that input prices are irrelevant for an entrant's make or buy decision. In this study, we show that this result is closely related to the specific conditions of the Hotelling framework. Specifically, it is shown that input prices are irrelevant when firms produce homogeneous products, but are relevant for makeor-buy decisions when the entrant and incumbent produce differentiated products under Bertrand price competition framework. These results suggest that, in general, it is important for regulators to set correct prices in order to not distort the entrants' efficient make-or-buy decisions.

Muhasebe ve finansman dergisi, Jul 1, 2015

Global ölçekte yaşanan ekonomik krizler, değişken ve zorlu iç ve dış ekonomik koşullar ile rekabe... more Global ölçekte yaşanan ekonomik krizler, değişken ve zorlu iç ve dış ekonomik koşullar ile rekabetçi ortama ayak uyduramayan firmalar, mali ve ekonomik sıkıntılarla karşılaşmakta hatta iflasa kadar sürüklenmektedir. Firmaların bu ağır rekabet koşulları altında varlıklarını sürdürebilmeleri için finansal sıkıntıların önceden tahmin etmeye yardımcı olacak modeller oldukça önem kazanmaktadır. Bu çalışma Borsa İstanbul'da işlem gören gıda, içki ve tütün şirketlerinin 2005-2012 yılları arası verilerini dikkate alarak finansal başarısızlık riskini lojistik model yardımıyla üç yıl öncesinden tahmin etmeyi hedeflemiştir. Finansal başarısızlığın 1 yıl öncesinden öngörülmesini amaçlayan modelin öngörü gücü %91, 2 yıl öncesinden tahminlemeyi hedefleyen modelin öngörü gücü % 91 ve 3 yıl öncesinden öngörülmesini amaçlayan modelin öngörü gücü ise %74,5'dir. Bu sonuçlar lojistik regresyon modelinin işletme başarısızlıklarında önemli bir araç olarak kullanılabileceğini göstermektedir. Bu çalışmada geliştirilen model; işletme yönetimine, yatırımcılara, potansiyel yatırımcılara ve diğer şirket ilgililerine yapacakları değerlendirmeler için yararlı olacaktır.

METU Studies in Development, Aug 18, 2016

Bu calismanin amaci, Turkiye’de yasam memnuniyetine iliskin bolgeler arasi esitsizligi mekânsal b... more Bu calismanin amaci, Turkiye’de yasam memnuniyetine iliskin bolgeler arasi esitsizligi mekânsal bir perspektifte incelemektir. Calismada, 2013 Yasam Memnuniyeti Arastirmasi mikro verileri kullanilmistir. Analize iliskin en temel sorun, anket sorularinin ordinal olcekli olmasi ve soz konusu cevap kategorilerinin bireyler icin esit aralik ifade etmek zorunda olmamasidir. Calismada, ilk olarak bu olcek sorununu cozmeye yonelik alternatif esitsizlik olcutleri incelenmis ve il bazinda mutluluk esitsizligi endeksi hesaplanmistir. Sonrasinda ise mek â nsal yaklasima dayali bir analizle, yasam memnuniyeti esitsizligi illerin gelismislik duzeyi ile iliskilendirilmistir. Analiz sonucunda, yuksek gelismislik gruplarindaki iller icin gelismislik duzeyi arttikca, dusuk gelismislik duzeyindeki iller icinse gelismislik duzeyi azaldikca mutluluk esitsizliginin arttigi gorulmustur.

Pakistan Journal of Statistics and Operation Research, Oct 19, 2011

Review of Economic Perspectives, 2012

The study investigates optimal access charges when the downstream markets are imperfectly competi... more The study investigates optimal access charges when the downstream markets are imperfectly competitive. Optimal access charges have been examined in the literature mainly under the condition where only the incumbent has market power. However, network industries tend to exhibit an oligopolistic market structure. Therefore, the optimal access charge under imperfect competition is an important consideration when regulators determine access charges. This essay investigates some general principles for setting optimal access charges when downstream markets are imperfectly competitive. One of the primary objectives of this essay is to show the importance of the break-even constraint when first-best access charges are not feasible. Specifically, we show that when the first-best access charges are not feasible, the imposition of the break-even constraint on only the upstream profit of the incumbent is superior to the case where break-even constraint applies to overall incumbent profit, where the latter is the most commonly used constraint in the access pricing literature. Bypass and its implications for optimal access charges and welfare are also explored.

The proofs of the central limit theorem are divided into two categories: elementary and non-eleme... more The proofs of the central limit theorem are divided into two categories: elementary and non-elementary. Proofs using the characteristic function are called non-elementary while the other proofs are called elementary. Using differential equation, this paper gives a new non-elementary proof for the central limit theorem. This proof is based on a differential equation and does not use second order Taylor expansion of any characteristic function. It is apparent that given proof may only have a pedagogical importance.

Social Indicators Research

Sosyolojik Bağlam Dergisi, 2021

The primary purpose of this study is to evaluate and compare the relative effects of different de... more The primary purpose of this study is to evaluate and compare the relative effects of different developmental dimensions on happiness. However, such an attempt requires an approach that divides the phenomenon of development into building blocks. In this respect, this study focuses on the dimensions of economic prosperity, good governance, education, health, the sustainable environment, gender equality, trade and financial flows, and mobility. Following the general trend in the literature, the relations between the country's average happiness levels calculated from microdata and the development indicators compiled from the World Bank data were analyzed using the least-squares method. In this analysis, Box-Cox transformation was used to ensure that the dependent variable, the average happiness levels, showed normal distribution. Our study reveals that all dimensions have the expected effects on happiness. However, the economic prosperity, sustainable environment, and government eff...

Economics Bulletin, 2014

To increase competition in local telephone markets, the 1996 Telecommunications Act required incu... more To increase competition in local telephone markets, the 1996 Telecommunications Act required incumbent firms to lease important inputs to competitors at regulated prices. Defending this so-called stepping-stone hypothesis, the Federal Communications Commission argued that new entrants needed a foothold in the market- gained by leasing inputs- before they could build their own facilities. Conversely, critics denied the stepping-stone hypothesis by arguing that easier access to inputs discourages new firms from building facilities. Using a new state-level dataset, we empirically test the stepping-stone hypothesis by exploring the effect of regulated input prices on facilities-based entry. Contradicting key results of existing research, we find that under certain conditions, lower regulated input prices can increase facilities-based entry. These findings partially validate the stepping-stone hypothesis.

METU Studies in Development, 2016

Review of Social Economy, 2019

Using the 2013 Turkish Life Satisfaction Survey, we investigate two hypotheses that are novel to ... more Using the 2013 Turkish Life Satisfaction Survey, we investigate two hypotheses that are novel to the happiness literature. The first of these hypotheses is that income dispersion/inequality within ...

Muhasebe ve Finansman Dergisi, 2015

Pakistan Journal of Statistics and Operation Research, 2011