CONSUMPTION AND WEALTH EFFECT I N TURKEY

Date

1983

Author

GAZİOĞLU, Şaziye

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This paper examines the long run properties and dynamic specification of a coınplex stock adjustment model and its application to Turkish data. We analyse the dynamic properties of tlıe preferred equations and present estimates of the mean ccmsumption lag tequal to the product of wealth/income ratio and income elasticity of weaith). The adjustment speed is estimated to be such that more than half the adjustment takes place in 4 years. The equilibrium wealth/mcome ratio is found to fail by nearly 6 % when the growth rat© increases by 1 %. Thus a rise in the growth rate iınduces a fail in the ratio of private assets to income while expenditure rises.

URI

https://hdl.handle.net/11511/110933

Collections

Department of Economics, Article