REFERENCE GROUPS AND HOUSEHOLD CONSUMPTION: EVIDENCE FROM TURKEY

Ünay TAMGAÇ TEZCAN

Makale detayları

REFERENCE GROUPS AND HOUSEHOLD CONSUMPTION: EVIDENCE FROM TURKEY

Yazarlar:

Ünay TAMGAÇ TEZCAN

Yayıncı:

Türkiye Ekonomi Kurumu Vakfı

Ana Başlıklar:

Ekonomi ve Maliye

Dergi:

Ekonomi-tek 2016 Vol.5 Issue 1, pp.71-107

Belge Tipi:

Makale

Yayın Tarihi:

12/2015

Belge Dili:

İngilizce

Document ID (Org No.):

2000406263

eISSN:

2791-7991

pISSN:

2146-6173

Özet:

 

It is well-known that relative concern influences many economic choices, including consumption decisions. Recently, several studies have linked the gradually falling savings rate in the United States since the 1980s with both relative concern and increased inequality. In this paper, we test for the presence of relative concern (i.e., peer effects) in consumption decisions for Turkey. In particular, we test whether households are affected by the purchases of other households who constitute their reference group. This is one of the few studies that investigate relative concern in a developing-country setting. Drawing on nationally representative data from the Turkish Household Budget Survey for the years 2003-2012, we examine different reference groups comprised of members having the same education level, urban-rural residence status, or age range. We find that the hypothesis is validated and that non-rich households are affected by perceiving the consumption of more prosperous individuals of the same educational background. However, we do not observe any group effects for upper-income households.

 

It is well-known that relative concern influences many economic choices, including consumption decisions. Recently, several studies have linked the gradually falling savings rate in the United States since the 1980s with both relative concern and increased inequality. In this paper, we test for the presence of relative concern (i.e., peer effects) in consumption decisions for Turkey. In particular, we test whether households are affected by the purchases of other households who constitute their reference group. This is one of the few studies that investigate relative concern in a developing-country setting. Drawing on nationally representative data from the Turkish Household Budget Survey for the years 2003-2012, we examine different reference groups comprised of members having the same education level, urban-rural residence status, or age range. We find that the hypothesis is validated and that non-rich households are affected by perceiving the consumption of more prosperous individuals of the same educational background. However, we do not observe any group effects for upper-income households.

Makale detayları

REFERENCE GROUPS AND HOUSEHOLD CONSUMPTION: EVIDENCE FROM TURKEY

Yazarlar: Ünay TAMGAÇ TEZCAN

Yayıncı: Türkiye Ekonomi Kurumu Vakfı

Ana Başlıklar: Ekonomi ve Maliye

Dergi: Ekonomi-tek 2016 Vol.5 Issue 1, pp.71-107

Belge Tipi: Makale

Yayın Tarihi: 12/2015

Belge Dili: İngilizce

Document ID (Org No.): 2000406263

eISSN: 2791-7991

pISSN: 2146-6173

Sayı

Yazarlar:

Ünay TAMGAÇ TEZCAN

Yayıncı:

Türkiye Ekonomi Kurumu Vakfı

Ana Başlıklar:

Ekonomi ve Maliye

Dergi:

Ekonomi-tek 2016 Vol.5 Issue 1, pp.71-107

Belge Tipi:

Makale

Yayın Tarihi:

12/2015

Belge Dili:

İngilizce

Document ID (Org No.):

2000406263

eISSN:

2791-7991

pISSN:

2146-6173