Household Consumption Expenditures in Türkiye: Socio-Economic Determinants, Spending Patterns, and Policy Perspectives

Household consumption expenditures, which influence both short-term macroeconomic goals and long-term determinants of total factor productivity such as education, health, and cultural expenditures, are among the critical economic indicators for the Turkish economy. However, existing literature often...

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Main Authors: Dilek Başar, Emre Yüksel
Format: Article
Language:English
Published: Ekonomi ve Finansal Araştırmalar Derneği 2025-06-01
Series:Ekonomi, Politika & Finans Araştırmaları Dergisi
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Online Access:https://dergipark.org.tr/tr/download/article-file/4708723
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author Dilek Başar
Emre Yüksel
author_facet Dilek Başar
Emre Yüksel
author_sort Dilek Başar
collection DOAJ
description Household consumption expenditures, which influence both short-term macroeconomic goals and long-term determinants of total factor productivity such as education, health, and cultural expenditures, are among the critical economic indicators for the Turkish economy. However, existing literature often relies on short time spans or limited theoretical frameworks, leaving significant gaps in understanding. This study aims to address these gaps by investigating the socio-economic determinants of household consumption expenditures in Türkiye from 2005 to 2019 using the Marshallian demand function. By merging data from the Household Budget Surveys and regional consumer price indices, a comprehensive dataset is constructed to explore how factors such as income, education, household size, and demographic composition shape spending behaviors across various categories. Additionally, negative binomial regression is employed to account for overdispersion in the data. Key findings reveal that higher-income households allocate more to discretionary expenditures, while lower-income groups prioritize essentials. Education emerges as a key determinant, driving investments in housing and education, with a non-linear effect on consumption patterns. Consumption growth peaks and then declines as household size and age increase, following an inverse U-shape. Additionally, in-kind assistance reduces overall spending by replacing direct expenditures, while mortgage loans constrain consumption due to financial burdens. Household type also plays a crucial role, as extended families benefit from shared resources, whereas single-parent households face financial strain.
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language English
publishDate 2025-06-01
publisher Ekonomi ve Finansal Araştırmalar Derneği
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series Ekonomi, Politika & Finans Araştırmaları Dergisi
spelling doaj-art-e0fb98cda6334f5a91051ae922d2e9342025-08-20T02:43:50ZengEkonomi ve Finansal Araştırmalar DerneğiEkonomi, Politika & Finans Araştırmaları Dergisi2587-151X2025-06-0110246748310.30784/epfad.1661884957Household Consumption Expenditures in Türkiye: Socio-Economic Determinants, Spending Patterns, and Policy PerspectivesDilek Başar0https://orcid.org/0000-0001-6501-8760Emre Yüksel1https://orcid.org/0000-0002-3884-6795HACETTEPE UNIVERSITYT.C. Cumhurbaşkanlığı Strateji ve Bütçe BaşkanlığıHousehold consumption expenditures, which influence both short-term macroeconomic goals and long-term determinants of total factor productivity such as education, health, and cultural expenditures, are among the critical economic indicators for the Turkish economy. However, existing literature often relies on short time spans or limited theoretical frameworks, leaving significant gaps in understanding. This study aims to address these gaps by investigating the socio-economic determinants of household consumption expenditures in Türkiye from 2005 to 2019 using the Marshallian demand function. By merging data from the Household Budget Surveys and regional consumer price indices, a comprehensive dataset is constructed to explore how factors such as income, education, household size, and demographic composition shape spending behaviors across various categories. Additionally, negative binomial regression is employed to account for overdispersion in the data. Key findings reveal that higher-income households allocate more to discretionary expenditures, while lower-income groups prioritize essentials. Education emerges as a key determinant, driving investments in housing and education, with a non-linear effect on consumption patterns. Consumption growth peaks and then declines as household size and age increase, following an inverse U-shape. Additionally, in-kind assistance reduces overall spending by replacing direct expenditures, while mortgage loans constrain consumption due to financial burdens. Household type also plays a crucial role, as extended families benefit from shared resources, whereas single-parent households face financial strain.https://dergipark.org.tr/tr/download/article-file/4708723hanehalkı tüketim harcamasısosyo-ekonomik belirleyicilertalep fonksiyonunegatif binominal regresyontüketici davranışıhousehold consumption expendituressocio-economic determinantsdemand functionnegative binominal regressionconsumer behavior.
spellingShingle Dilek Başar
Emre Yüksel
Household Consumption Expenditures in Türkiye: Socio-Economic Determinants, Spending Patterns, and Policy Perspectives
Ekonomi, Politika & Finans Araştırmaları Dergisi
hanehalkı tüketim harcaması
sosyo-ekonomik belirleyiciler
talep fonksiyonu
negatif binominal regresyon
tüketici davranışı
household consumption expenditures
socio-economic determinants
demand function
negative binominal regression
consumer behavior.
title Household Consumption Expenditures in Türkiye: Socio-Economic Determinants, Spending Patterns, and Policy Perspectives
title_full Household Consumption Expenditures in Türkiye: Socio-Economic Determinants, Spending Patterns, and Policy Perspectives
title_fullStr Household Consumption Expenditures in Türkiye: Socio-Economic Determinants, Spending Patterns, and Policy Perspectives
title_full_unstemmed Household Consumption Expenditures in Türkiye: Socio-Economic Determinants, Spending Patterns, and Policy Perspectives
title_short Household Consumption Expenditures in Türkiye: Socio-Economic Determinants, Spending Patterns, and Policy Perspectives
title_sort household consumption expenditures in turkiye socio economic determinants spending patterns and policy perspectives
topic hanehalkı tüketim harcaması
sosyo-ekonomik belirleyiciler
talep fonksiyonu
negatif binominal regresyon
tüketici davranışı
household consumption expenditures
socio-economic determinants
demand function
negative binominal regression
consumer behavior.
url https://dergipark.org.tr/tr/download/article-file/4708723
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