Aggregate consumption function and public social security: the first time-series study for a developing country, Turkey

Aydede, Yigit

doi:10.1080/00036840600905167

Cited by 13 publications

(5 citation statements)

References 26 publications

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“…Several papers were then conducted to explore the consumption function for developed economies (Muellbauer 1994;Church, Smith, and Wallis 1994;Hendry 1994;Muellbauer and Lattimore 1995;Craigwell and Rock 1995;Fagan, Henry, and Mestre 2005;Smets and Wouters 2003;Davis and Palumbo 2001;Sapci 2017;Ismail and Rashid 2013). Some studies which have also included wealth effects are: Patterson (1991); Rossi andVisco (1994), Fisher, Huh, andOtto (2012); MacDonald, Mullineux, and Sensarma (2011); for Turkey, Aydede (2008).…”

Section: What We Learn From the Literaturementioning

confidence: 99%

Estimating the household consumption function in Saudi Arabia: an error correction approach

et al. 2019

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We estimate a micro-founded life-cycle consumption model for Saudi Arabia over the period 1970-2017 using error correction model procedures. Dynamic adjustments are significant, and both income and wealth are found to have significant effects, with a long-run marginal propensity to consume out of the income of 0.95 and out of the wealth of 0.06. The sensitivity of consumption to income and wealth, as well as the estimated short-term effects of price and real interest rate, are consistent with the rapidly growing Saudi economy. By capturing the key determinants of the life-cycle model, our approach is useful for the design of macroeconomic policy. We estimate the impact of the recent VAT reform.

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Section: What We Learn From the Literaturementioning

confidence: 99%

Estimating the household consumption function in Saudi Arabia: an error correction approach

et al. 2019

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“…Based on the mentioned consumption theories, consumption behaviour is in a nutshell explained by income, wealth, borrowing (debts), interest rate return and uncertainty. Literally, Aydede (2008) and Estrada et al (2015) also take into account these explanatory variables in estimating consumption function. Therefore, the baseline consumption function can be specified as follows:…”

Section: Model Specificationmentioning

confidence: 99%

Reactions of Long-run Private Consumption in Malaysia to Crises, Economic Leadership and Telecommunication Technology

Tang

Lim

2022

MJES

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We estimate the long-run reactions of private consumption in Malaysia to crises, economic leadership, information and communications technology (ICT), and other key determinants using time series econometrics. This study covers the quarterly sample from 1990:Q1 to 2020:Q4. We find that Malaysia’s private consumption and its key determinants are cointegrated, demonstrating that a reliable long-run private consumption function can be estimated. We find that both economic and health crises, namely the Asian financial crisis in 1997/98, SARS and COVID-19 pandemic are likely to reduce private consumption in Malaysia. However, the long-run estimation results show that ICT and economic leadership are positively related to consumption. Therefore, policymakers should set the goal of encouraging the development of ICT infrastructure and good economic leadership in order to promote private consumption, which eventually sustains long-term economic growth and development.

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“…From their research findings, they conclude that a single percentage point change in stock market indices increases consumption in durables. Aydede [17] investigates the impact of the unfunded social security system on consumption by using the Engle-Granger methodology. In addition, there are two papers-Uluengin and Yentürk [18] and Çimeno glu and Yentürk [19]-that look at the behavior of the growth performance of the Turkish economy: Both studies use vector autoregression (VAR) models to show how private consumption depends on short-term capital inflows in the Turkish stock market.…”

Section: Literature Reviewmentioning

confidence: 99%

The Time-Varying Effect of Asset Prices on Turkey’s Circular Economy

Balcılar

Tören

2021

Sustainability

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The study aims to examine the effects of spillovers from stock prices on consumption and interest rates in Turkey. From the circular economy viewpoint, there should be sustainable consumption to achieve sustainable development with the help of consumers and other stakeholders. A time-varying vector autoregressive (TVP-VAR) model with stochastic volatility is used in the study. The aim is to obtain dynamics that stimulate growth, development, recession or change within the Turkish economy according to the emphases on circular economy. In order to analyze the relationship between real consumption, nominal interest rate and real stock prices, the TVP-VAR model is specified as a three-variable, time-varying model. The sample data that have been gathered from the Central Bank of the Republic of Turkey cover the period between Q1 1987 and Q3 2013. Overall, this study provides significant evidence of spillovers on consumption and interest rate during financial crises in Turkey, and the implications of monetary policy. In addition, the TVP model with stochastic volatility offers remarkable results regarding the influence of price shock on consumption in Turkey. However, we do not find any significant effect from interest rate to real consumption.

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Aggregate consumption function and public social security: the first time-series study for a developing country, Turkey

Cited by 13 publications

References 26 publications

Estimating the household consumption function in Saudi Arabia: an error correction approach

Estimating the household consumption function in Saudi Arabia: an error correction approach

Reactions of Long-run Private Consumption in Malaysia to Crises, Economic Leadership and Telecommunication Technology

The Time-Varying Effect of Asset Prices on Turkey’s Circular Economy

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