Turkish Households Consumption Behavior and Flexible Engel Curves

Egemen ipek, Haydar Akyazı

Öz


The aim of this study is to first determine the relationship between the social and economic differences of households and the functional form of their consumption and then test their consumption behavior empirically. To do so, this paper utilizes the empirical framework of “Exact Affine Stone Index” (EASI), which is offered in Lewbel and Pendakur (2009), by using the Household Budget Survey data provided by Turkey Statistical Institute, for the 2003-2011 period. The analysis presented here estimates Engel curves, income and demand elasticities for eleven main consumption bundles of the reference household using the Iterative Three Stage Least Squares (I3SLS) method. Differently to previous studies, the empirical results show that the Engel curves have fifth degree polynomial functional form for all consumption groups, except for hotel expenditures for Turkish households. Moreover, this study is capable of measuring the impacts of changes in taste and preferences of Turkish households on their consumption expenditures over the years.


Anahtar Kelimeler


Household Consumption Behavior, Engel Curves, Demographics Variables, EASI, I3SLS

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Doğuş Üniversitesi Dergisi'nin içeriği Creative Commons Atıf-Gayriticari 4.0 Uluslararası Lisansı ile lisanslanmıştır.
 

İletişim:

Doğuş Üniversitesi Dergisi
Acıbadem Zeamet Sokak, No: 21
34722 - Kadıköy, İSTANBUL
E-posta: journal@dogus.edu.tr