Household Consumption Convergence: Example of IBSS-II

Abstract

Consumption level is the most important indicator representing the welfare of societies, respectively. Any inequality in the consumption level directly affects the welfare of society. The study aims to examine the consumption convergence of IBSS-II (26 sub-regions) and to create an econometric model for this. In the study, the household consumption expenditure panel data set of IBSS-II regions for the years 2003-2019 published by the Turkish Statistical Institute (TUIK) was used. Nine consumption items with the highest share were discussed. As empirical results; it is seen that the coefficients of variation of the consumption items vary between 0.12 and 0.38. The conclusion drawn was that there is interregional convergence only in such items; alcoholic beverages, cigarettes, and tobacco products (0.18), housing and rental expenditures (0.12), and furniture, household appliances, and home care services (0.12). Additionally, the coefficient of variation values for transportation and education services were 0.31 and 0.38, respectively, indicating regional divergence in these consumption items.

Keywords

• Household Consumption Expenditure
• Convergence
• Coefficient of Variation Method

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