Analyzing Financial Insufficiency of Households in Turkey with Multivariate Probit Model

Year 2019, Volume: 19 Issue: 4, 401 - 410, 26.10.2019

Çiler Sigeze Mehmet Sedat Uğur

https://doi.org/10.21121/eab.463383

Abstract

Permanent or particular financial insufficiencies of
households cause crucial interruptions on compulsory payments of households. In
this study, the determining factors of financial insufficiency of 11918
households that surveyed in TurkStat’s Survey of Income and Living Conditions
(SILC) 2012 are analyzed. The financial insufficiency of households can be
denoted by several indicators. The responses of household head for three
questions on financial conditions of household in survey are treated as
indicators for financial insufficiency. Multivariate Probit Model is used to
determine the effects of the properties of households as independent variables
on three dependent variables about financial conditions. The findings show that
household size, being a tenant, changing the job, being unemployment but
looking for a job and being chronic illness for household head have positive,
income, being a female and being a graduate from university or a higher degree
for household head have negative effects on each financial insufficiency
indicators.

Keywords

Multivariate probit model, financial insufficiency, households, Turkey

References

• Acar, A. ve Baslevent, C. (2013) “Examination of the Transition of Turkish Households into and out of Poverty between 2007-2010” (No. 5779), EcoMod.
• Alkire, S. ve Foster, J. (2009) “Counting and Multidimensional Poverty Measurement” OPHI Working Paper. No. 32. December. Oxford Department of International Development, Queen Elizabeth House (QEH), University of Oxford.
• Andriopoulou, E. ve Tsakloglou, P. (2011) “The Determinants of Poverty Transitions in Europe and the Role of Duration Dependence” IZA Discussion Paper No. 5692.
• Bhalla, A. ve Lapeyre, F. (1997) “Social Exclusion: Towards an Analytical and Operational Framework” Development and Change, 28: 413-433.
• Bourguignon, F. ve Chakravarty, S.R (2003) “The Measurement of Multidimensional Poverty” The Journal of Economic Inequality, 1 (1): 25-49.
• Brock, K. (1999) “It’s Not Only Wealth That Matters - It’s Peace of Mind Too: A Review of Participatory Work on Poverty and Illbeing” Washington: World Bank.
• Cappellari, L. ve Jenkins, S. P. (2003) “Multivariate Probit Regression using Simulated Maximum Likelihood” The Stata Journal, 3(3), 278-294.
• Castillo-Manzano, J. I. (2010) “Determinants of Commercial Revenues at Airports: Lessons Learned from Spanish Regional Airports” Tourism Management, 31(6), 788-796.
• Chambers, R. ve Conway, G. (1992) “Sustainable Rural Livelihoods: Practical Concepts for the 21st Century” IDS Discussion Paper. No. 296. Brighton: IDS.
• Çevik, N. K. ve Korkmaz, O. (2014) “Türkiye’de Yaşam Doyumu ve İş Doyumu Arasındaki İlişkinin İki Değişkenli Sıralı Probit Model Analizi” Ömer Halisdemir Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, 7(1), 126.
• Dal, S. ve Sevüktekin, M. (2018) “Türkiye’de Öznel İyi Oluş’un Yaşam Alanları Yaklaşımı İle Ölçülmesi” Uluslararası İktisadi ve İdari İncelemeler Dergisi, 2018: 433-446.
• Dalgıç, B., İyidoğan, P. V. ve Güven, A. (2015) “Yoksulluk ve Yoksulluk Geçişlerinin Belirleyenleri: Türkiye Örneği”, Sosyoekonomi, 23(24):51-70.
• Devicienti, F. (2002) “Poverty Persistence in Britain: A Multivariate Analysis using the BHPS, 1991–1997” Journal of Economics, 9:307-340.
• Diener, E., Suh, E. ve Oishi, S. (1997) “Recent Findings on Subjective Well-being” Indian Journal of Clinical Psychology, 24: 25-41.
• Easterlin, R.A. (1974) “Does Economic Growth Improve the Human lot? Some Empirical Evidence” In David, P.A., and Reder, M.W. (eds.). Nations and Households in Economic Growth: Essays in Honor of Moses Abramowitz (pp. 89- 125). Academic Press, NY.
• Easterlin, R. A. (2001) “Income and Happiness: Towards a Unified Theory”, The Economic Journal, 111(473): 465-484.
• Eren, K. A. ve Aşıcı, A. A. (2017) “The Determinants of Happiness in Turkey: Evidence from City Level Data”, Journal of Happiness Studies, 18(3): 647-669.Golob, T. F. ve Regan, A. C. (2002) “Trucking Industry Adoption of Information Technology: A Multivariate Discrete Choice Model”, Transportation Research Part C: Emerging Technologies, 10(3): 205-228.
• Greene, W. H. (2003) Econometric Analysis, Pearson Education: India.
• Morduch, J. (1994) “Poverty and Vulnerability” The American Economic Review, 84(2): 221-225, Papers and Proceedings of the Hundred and Sixth Annual Meeting of the American Economic Association (May).
• Nussbaum, M. (2000) Women and Human Development, Cambridge University Press.
• Orshansky, M. (1969) “How Poverty is Measured” Monthly Labor Review, 92(2): 37-41.
• Oswald, A. J. (1997) “Happiness and Economic Performance” The Economic Journal, 107(445): 1815-1831.
• Pradhan, M. ve Ravallion, M. (2000) “Measuring Poverty using Qualitative Perceptions of Consumption Adequacy” Review of Economics and Statistics, 82(3): 462-471.
• Ravallion, M. (1996) “Issues in Measuring and Modelling Poverty” The Economic Journal. 106(438): 1328-1343.
• Rodgers, G., Gore, C. ve Figueiredo, J. B. (1995) “Social Exclusion: Rhetoric, Reality, Responses” International Institute for Labour Studies: UNDP.
• Runciman, W.G. (1966) “Relative Deprivation and Social Justice”, Routledge and Kegan Paul: London.
• Selim, S. (2008) “Life Satisfaction and Happiness in Turkey” Social Indicators Research, 88(3):531-562.
• Sen, A. (1985) “Commodities and Capabilities”, Amsterdam: Elsevier.
• Streeten, P., Burki, S. J., ul Haq, M., Hicks, N. ve Stewart, F. (1981) “First Things First: Meeting Basic Human Needs In The Developing Countries” Washington D. C.: OUP.
• Tilak, J. B. (1989) “Education and Its Relation to Economic Growth, Poverty, and Income Distribution: Past Evidence and Further Analysis” World Bank Discussion Paper No.46.
• Timur, B. ve Akay, E. Ç.(2017) “Kadın ve Erkeklerin Mutluluğunu Etkileyen Faktörlerin Genelleştirilmiş Sıralı Logit Modeli ile Analizi” Social Sciences Res. Jou., 6(3): 88-105.
• Townsend, P. (1979) Poverty in the United Kingdom, University of California Press.
• TÜİK (2012) Gelir ve Yaşam Koşulları Araştırması. TÜİK: Ankara.
• ul Haq, M. (1995) Reflections on Human Development. N.Y.: Oxford University Press.
• UNDP (1990) Human Development Report 1990. New York: Oxford University Press.van Praag, B.M.S. (1971) “The Welfare Function of Income in Belgium: An Empirical Investigation” European Economic Review, 2, 337-69.
• van Praag, B.M.S. ve Kapteyn, A. (1973) “Further Evidence on the Individual Welfare Function of Income: An Empirical Investigation in the Netherlands” European Economic Review, 4: 33-62.
• van Praag, B. M., Frijters, P. ve Ferrer-i-Carbonell, A. (2003) “The Anatomy of Subjective Well-being” Journal of Economic Behavior & Organization, 51(1):29-49.
• Veenhoven, R. (1984) The Concept of Happiness, In R. Veenhoven (ed.), Conditions of Happiness (pp. 12-38). Springer: Dordrecht.
• Veenhoven, R. (2000) “The Four Qualities of Life” Journal of Happiness Studies, 1(1), 1-39.
• Veenhoven, R. (2008) “Sociological Theories of Subjective Wellbeing”, In Michael Eid & Randy Larsen (Eds). The Science of Subjective Well-being: A tribute to Ed Diener (pp. 44-61), Guilford Publications, New York.
• Walelign, S. Z., Charlery, L., Smith-Hall, C., Chhetri, B. B. K. ve Larsen, H. O. (2016) “Environmental Income Improves Household-Level Poverty Assessments and Dynamics” Forest Policy and Economics, 71:23-35.
• World Bank (1990) World Development Report 1990: Poverty. New York: OUP.