STABILITY OF AVERAGE CONSUMPTION TENDENCY: THE CASE OF TURKEY
ORTALAMA TÜKETİM EĞİLİMİNİN DURAĞANLIĞI: TÜRKİYE ÖRNEĞİ

Author : Sefa ÖZBEK - Burak UĞUR - Sena TÜRKMEN
Number of pages : 294-307

Summary

This article investigates whether average propensity to consume is stationary for Turkish economy. For this purpose, we used Augmented Dickey-Fuller (ADF), Phillips-Perron (PP) unit root tests and structural break Lee-Strazicich unit root test. Our findings suggest that, APC is not generally stationary. As a result of these findings, we can generally assert that APC is not mean reverting in the long run and any temporary shock will have permanent effects on APC. Thus, APC does not converge towards a constant in the long run. These results supportes Absolute Income Hypothesıs of Keynes (1936), Marxian Undercompensating Theory, The Involuntary Savings Theory of Deaton (1977).

Keywords

Consumption Income Ratio, Average Propensity To Consume, Unit Root Tests, Turkish Economy.

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