HOUSEHOLD CONSUMPTION EXPENDITURES IN TURKEY: A COMPARATIVE QUANTILE REGRESSION ANALYSIS

Abstract

Consumption is one of the key concepts in economics due to its animate connections with GDP, savings, and utility. The current study aims to analyse the relationship between household consumption expenditures and some household characteristics in Turkey through Household Budget Surveys of TurkStat for the years 2002 and 2018. With the implementation of quantile regression estimations, it is shown that disposable income emerges as a very important determinant of consumption expenditures as suggested by the conventional theories of consumption. Most of the households, who intensify their savings, especially to purchase real estate, reduce their consumption levels. It is also observed that the household-heads who are single or enjoy a higher level of education spend more. Although the age of the household head is positively associated with the level of consumption in 2002, this relationship seems to be reversed in 2018. Regarding economic growth trends in the Turkish economy, such an observation might support the lifecycle theory. The households who use credit cards and online shopping are associated with a higher level of consumption expenditure compared to those who do not use these opportunities.

Keywords

• Consumer Economics: Empirical Analysis
• Quantile Regressions
• Household Consumption

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