Relationship Between Household Consumption and Disaggregated Wealth Components in OECD Countries: Panel Data Analysis for the Period 2010-2017

Ahmet Hamdi Yanık; Ahmet İncekara

Makale detayları

Relationship Between Household Consumption and Disaggregated Wealth Components in OECD Countries: Panel Data Analysis for the Period 2010-2017

Yazarlar:

Ahmet Hamdi Yanık | Ahmet İncekara

Yayıncı:

Istanbul University

Ana Başlıklar:

Makro İktisat (Diğer)

Dergi:

İktisat Politikası Araştırmaları Dergisi Vol.11 Issue 2, pp.370-382

Belge Tipi:

Makale

Yayın Tarihi:

8/2024

Belge Dili:

İngilizce

Document ID (Org No.):

2001326927

pISSN:

2148-3876

Anahtar kelimeler:

Özet:

 Understanding household consumption behaviour and its impact on macroeconomic performance has long played an important role in policymaking. This study examines the empirical relationship between consumption, financial wealth, and housing wealth in OECD countries from 2010 to 2017. This study used short and balanced panel data sets covering 28 OECD countries over an eight-year period. Although most empirical research on wealths effects on consumption tends to focus on national borders, this study aims to assess the impact of these effects on an international scale and makes a valuable contribution to the existing literature in this area. Based on a thorough analysis of the relevant literature, it was decided that a consumption function based on the life-cycle hypothesis was very useful for this study. Based on this framework, three different panel data regression models were estimated, including one or more wealth components as explanatory variables. The results of the Hausman test show that random effect estimators can provide more effective estimates, while the Swamy test shows that heterogeneity in slope parameters should be taken into account. These tests indicate that the coefficients obtained using the augmented mean group estimator, which accounts for heterogeneity, are more reliable. The results show that marginal propensities to consume, calculated as the coefficient of elasticity, are 0.71 for disposable income, 0.04 for financial wealth, and 0.19 for housing wealth. These findings showed that housing wealth played a greater role than financial wealth in influencing OECD households consumption during the period analyzed. The inclusion of housing market dynamics in the consumption function may boost the models explanatory power, according to our findings revealing country-specific differences, but more research is required to confirm this.

 Understanding household consumption behaviour and its impact on macroeconomic performance has long played an important role in policymaking. This study examines the empirical relationship between consumption, financial wealth, and housing wealth in OECD countries from 2010 to 2017. This study used short and balanced panel data sets covering 28 OECD countries over an eight-year period. Although most empirical research on wealths effects on consumption tends to focus on national borders, this study aims to assess the impact of these effects on an international scale and makes a valuable contribution to the existing literature in this area. Based on a thorough analysis of the relevant literature, it was decided that a consumption function based on the life-cycle hypothesis was very useful for this study. Based on this framework, three different panel data regression models were estimated, including one or more wealth components as explanatory variables. The results of the Hausman test show that random effect estimators can provide more effective estimates, while the Swamy test shows that heterogeneity in slope parameters should be taken into account. These tests indicate that the coefficients obtained using the augmented mean group estimator, which accounts for heterogeneity, are more reliable. The results show that marginal propensities to consume, calculated as the coefficient of elasticity, are 0.71 for disposable income, 0.04 for financial wealth, and 0.19 for housing wealth. These findings showed that housing wealth played a greater role than financial wealth in influencing OECD households consumption during the period analyzed. The inclusion of housing market dynamics in the consumption function may boost the models explanatory power, according to our findings revealing country-specific differences, but more research is required to confirm this.

 Understanding household consumption behaviour and its impact on macroeconomic performance has long played an important role in policymaking. This study examines the empirical relationship between consumption, financial wealth, and housing wealth in OECD countries from 2010 to 2017. This study used short and balanced panel data sets covering 28 OECD countries over an eight-year period. Although most empirical research on wealths effects on consumption tends to focus on national borders, this study aims to assess the impact of these effects on an international scale and makes a valuable contribution to the existing literature in this area. Based on a thorough analysis of the relevant literature, it was decided that a consumption function based on the life-cycle hypothesis was very useful for this study. Based on this framework, three different panel data regression models were estimated, including one or more wealth components as explanatory variables. The results of the Hausman test show that random effect estimators can provide more effective estimates, while the Swamy test shows that heterogeneity in slope parameters should be taken into account. These tests indicate that the coefficients obtained using the augmented mean group estimator, which accounts for heterogeneity, are more reliable. The results show that marginal propensities to consume, calculated as the coefficient of elasticity, are 0.71 for disposable income, 0.04 for financial wealth, and 0.19 for housing wealth. These findings showed that housing wealth played a greater role than financial wealth in influencing OECD households consumption during the period analyzed. The inclusion of housing market dynamics in the consumption function may boost the models explanatory power, according to our findings revealing country-specific differences, but more research is required to confirm this.

 Hanehalkı tüketim davranışını ve makroekonomik performans üzerindeki etkisini anlamak, ekonomi politikasının belirlenmesinde uzun süredir önemli bir rol oynamaktadır. Bu çalışma, 2010-2017 yılları arasında OECD ülkelerinde tüketim, finansal zenginlik ve konut serveti arasındaki ampirik ilişkiyi incelemektedir. Çalışmada, sekiz yıllık bir süre boyunca 28 OECD ülkesini kapsayan kısa ve dengeli panel veri setleri kullanılmıştır. Zenginliğin tüketim üzerindeki etkilerine ilişkin ampirik araştırmaların çoğu ulusal sınırlara odaklanma eğiliminde olsa da, çalışmamız bu etkilerin etkisini uluslararası ölçekte değerlendirmeyi ve bu alandaki mevcut literatüre değerli bir katkı sağlamayı amaçlamaktadır. İlgili literatürün kapsamlı bir analizine dayanarak yaşam döngüsü hipotezine dayalı tüketim fonksiyonunun bu çalışma için çok faydalı olacağına karar verilmiştir. Bu çerçeveye dayanarak, açıklayıcı değişkenler olarak bir veya daha fazla servet bileşeni dahil olmak üzere üç farklı panel veri regresyon modeli tahmin edilmiştir. Hausman testinin sonuçları, rastgele etki tahmincilerinin daha verimli tahminler sağlayabileceğini gösterirken, Swamy testi, eğim parametrelerindeki heterojenliği hesaba katma ihtiyacını göstermektedir. Bu testler, heterojenliği hesaba katan artırılmış ortalama grup tahmincisi kullanılarak elde edilen katsayıların daha güvenilir olduğunu göstermektedir. Sonuçlar, esneklik katsayısı olarak hesaplanan marjinal tüketim eğilimlerinin harcanabilir gelir için 0.71, finansal servet için 0.04 ve konut serveti için 0.19 olduğunu göstermektedir. Bu bulgular, analiz edilen dönemde OECD hanehalklarının tüketimini etkilemede konut servetinin finansal servetten daha büyük bir rol oynadığını göstermektedir. Ülkeye özgü farklılıkları ortaya koyan bulgularımıza göre, konut piyasası dinamiklerinin tüketim fonksiyonuna dahil edilmesi, modelin açıklayıcı gücünü artırabilir, ancak bunu doğrulamak için daha fazla araştırmaya ihtiyaç vardır.

Makale detayları

Relationship Between Household Consumption and Disaggregated Wealth Components in OECD Countries: Panel Data Analysis for the Period 2010-2017

Yazarlar:

Ahmet Hamdi Yanık | Ahmet İncekara

Yayıncı:

Istanbul University

Ana Başlıklar:

Makro İktisat (Diğer)

Dergi:

İktisat Politikası Araştırmaları Dergisi Vol.11 Issue 2, pp.370-382

Belge Tipi:

Makale

Yayın Tarihi:

8/2024

Belge Dili:

İngilizce

Document ID (Org No.):

2001326927

pISSN:

2148-3876

Life-Cycle hypothesis

Household consumption

Financial wealth effect

Housing wealth effect

Panel data analysisYaşam döngüsü hipotezi

Hanehalkı tüketimi

Finansal servet etkisi

Konut serveti etkisi

Panel veri analizi

Sayı

Makale detayları

Yazarlar: Ahmet Hamdi Yanık | Ahmet İncekara

Yayıncı: Istanbul University

Ana Başlıklar: Makro İktisat (Diğer)

Dergi: İktisat Politikası Araştırmaları Dergisi Vol.11 Issue 2, pp.370-382

Belge Tipi: Makale

Yayın Tarihi: 8/2024

Belge Dili: İngilizce

Document ID (Org No.): 2001326927

pISSN: 2148-3876

Sayı

Yazarlar:

Ahmet Hamdi Yanık | Ahmet İncekara

Yayıncı:

Istanbul University

Ana Başlıklar:

Makro İktisat (Diğer)

Dergi:

İktisat Politikası Araştırmaları Dergisi Vol.11 Issue 2, pp.370-382

Belge Tipi:

Makale

Yayın Tarihi:

8/2024

Belge Dili:

İngilizce

Document ID (Org No.):

2001326927

pISSN:

2148-3876