Household Consumption, Household Indebtedness, and Inequality in Turkey: A Microeconometric Analysis

Albayrak, Ozlem

doi:10.2139/ssrn.3589407

Cited by 7 publications

(7 citation statements)

References 53 publications

(71 reference statements)

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“…Albayrak found that relative income, inequality, and household indebtedness affected household consumption in Turkey. 26 The same study detected a negative connection between relative income and consumption, even after controlling for absolute income level, and thereby concluded that people were consuming to gain or to keep a social status because of the "keeping up with the Joneses effect". 27 Ceritoğlu found a positive relationship between the growth rate of consumption and expected real income changes.…”

Section: Literaturementioning

confidence: 95%

Household Consumption Expenditures in Turkey: A Comparative Quantile Regression Analysis

Dönmez

Güneş

2021

Marmara Üniversitesi İktisadi Ve İdari Bilimler Dergisi

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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.

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Section: Literaturementioning

confidence: 95%

Household Consumption Expenditures in Turkey: A Comparative Quantile Regression Analysis

Dönmez

Güneş

2021

Marmara Üniversitesi İktisadi Ve İdari Bilimler Dergisi

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“…As an actual illustration, the 2008 financial crisis in the US created new interests that caused consumption behavior, income distribution, and household debt to increase. This explains the dynamics of the crisis (Albayrak, 2020). The paradigm has continued to flow since the 1980s, and economists assume that household consumption has decreased.…”

Section: Theoretical Lensmentioning

confidence: 98%

Understanding Market Behavior on Corn Commodity: Phenomenon at Year End

Darma

Hakim

et al. 2022

5005

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The cause of market failure is the lack of synchronization between supply and demand, or vice versa. Initially, corn was considered as a substitute and a complementary commodity for food, but now it has turned into a basic need for people in Indonesia, especially when they celebrate the new year. The main aim of this study is to examine the interaction between the demand side and the supply side. The study was carried out by inviting 9,850 respondents in Samarinda City to be surveyed regarding interest, tradition, taste, price, opportunity, profit, production cost, and distribution. Empirical testing was used to interpret the data, including correlation, reliability, and validity. Constructive validity was found in the market behavior function, where the indicators of consumer demand (p < 0.01) and produce supply (p < 0.01) have a significant effect. Also highlighted were production cost and distribution, both of which have a positive channel and are closely related to the other six indicators. The consistent performance of production cost and distribution supported further evidence providing stability of measurement results. Additionally, tradition and opportunity also produced high coefficients in the reliability test. We can further examine empirical results by including other dimensions, such as social, psychological and individual factors. In addition, diagnostic transformations need to be highlighted where market trends can change along with the growth of other commodities.

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“…Moreover, Albayrak (2020), Costa and Farinha (2012) and Kim and Hwang (2016) considered how the asset ownership and characteristics of households influence the relationship between household indebtedness and consumption differently. In detail, Costa and Farinha (2012) analysed Portuguese households’ indebtedness based on microeconomic information from the Household Finance and Consumption Survey (HFCS).…”

Section: Literature Reviewmentioning

confidence: 99%

“…Additionally, Albayrak (2020) investigated whether income inequality within the reference group of relative income and household characteristics affects household consumption. They controlled for household income groups, the age, gender and educational level of the household head, the number of household members as a proportion of the total household size, and the regional age group.…”

Section: Literature Reviewmentioning

confidence: 99%

The nexus between households’ indebtedness and consumption: the role of gender, geographical area and income groups

Wong

Kusairi

Halim

2022

IJDI

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Purpose The persistent increase in household indebtedness is an alarming issue that is becoming a major concern for economists and governments in developing nations. Although household consumption is an essential source of economic growth, households’ failure to meet their financial obligations will be one of the causes of economic problems if the increase in consumption is largely financed by household borrowing. Therefore, this study aims to analyse the nexus between households’ indebtedness and consumption and the roles of household characteristics. Design/methodology/approach This study uses a microdata set of the Household Expenditure and Income Survey in 2019, which contained a simple random sampling of 4,730 households. Findings Using a simultaneous equations model, our results show a negative nexus between households’ consumption and their indebtedness. We find that household savings and size have an indirect impact on the debt service ratio, while the assets and total debt repayment instalments indirectly influence household consumption. We also identify differences in the relationship between the gender of the household head, rural and urban locations and income groups in consumption and indebtedness. Research limitations/implications The implication of this study is that governments should adopt several programmes to increase the awareness of household financial and debt management, especially for those in the low-income group. Originality/value This study contributes to the empirical literature by establishing a microeconomic perspective of consumption and an indebtedness model focusing on the differences in household characteristics in explaining consumption and indebtedness.

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Household Consumption, Household Indebtedness, and Inequality in Turkey: A Microeconometric Analysis

Cited by 7 publications

References 53 publications

Household Consumption Expenditures in Turkey: A Comparative Quantile Regression Analysis

Household Consumption Expenditures in Turkey: A Comparative Quantile Regression Analysis

Understanding Market Behavior on Corn Commodity: Phenomenon at Year End

The nexus between households’ indebtedness and consumption: the role of gender, geographical area and income groups

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