The dynamics of household final consumption: The role of wealth channel

Esra ALP, (University of Huddersfield, United Kingdom)
Ünal SEVEN (Türkiye Cumhuriyet Merkez Bankası, Yapısal Ekonomik Araştırmalar Müdürlüğü, Ankara, Türkiye)
Central Bank Review
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Yıl: 2019 Cilt: 19 Sayı: 1 Sayfa Aralığı: 21 - 32 Metin Dili: İngilizce DOI: 10.1016/j.cbrev.2019.03.002 İndeks Tarihi: 01-09-2020

The dynamics of household final consumption: The role of wealth channel

Öz:
Exploring dynamics of household final consumption is an important concern for policy-makers. Turkeyhad witnessed various financial shocks and crises over the last two decades. These turbulent economicperiods affected consumption behaviour and therefore, other macroeconomic variables. In this paper, weexamine the linkage between household final consumption and wealth in Turkey, arising from equityand housing market channels over the period from 1998 Q1 to 2016 Q2. We employ ARDL and FMOLSmodels in order to analyse long-term relationship and then, variance decomposition and impulseresponse analysis are used for verifying the effects of shocks. The results suggest that income, credit andhousing wealth are positively, interest rate and equity market wealth are negatively associated withconsumption. Variance decomposition and impulse response analyses imply that interest rate drivenshocks may cause to a decline in asset prices and so aggregate consumption through consumptionwealth channel. These evidences may be beneficial for policymakers to understand the role of interestrate and asset prices on the consumption-wealth channel in Turkey.
Anahtar Kelime:

Belge Türü: Makale Makale Türü: Araştırma Makalesi Erişim Türü: Erişime Açık
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APA ALP E, Seven Ü (2019). The dynamics of household final consumption: The role of wealth channel. , 21 - 32. 10.1016/j.cbrev.2019.03.002
Chicago ALP Esra,Seven Ünal The dynamics of household final consumption: The role of wealth channel. (2019): 21 - 32. 10.1016/j.cbrev.2019.03.002
MLA ALP Esra,Seven Ünal The dynamics of household final consumption: The role of wealth channel. , 2019, ss.21 - 32. 10.1016/j.cbrev.2019.03.002
AMA ALP E,Seven Ü The dynamics of household final consumption: The role of wealth channel. . 2019; 21 - 32. 10.1016/j.cbrev.2019.03.002
Vancouver ALP E,Seven Ü The dynamics of household final consumption: The role of wealth channel. . 2019; 21 - 32. 10.1016/j.cbrev.2019.03.002
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ISNAD ALP, Esra - Seven, Ünal. "The dynamics of household final consumption: The role of wealth channel". (2019), 21-32. https://doi.org/10.1016/j.cbrev.2019.03.002
APA ALP E, Seven Ü (2019). The dynamics of household final consumption: The role of wealth channel. Central Bank Review, 19(1), 21 - 32. 10.1016/j.cbrev.2019.03.002
Chicago ALP Esra,Seven Ünal The dynamics of household final consumption: The role of wealth channel. Central Bank Review 19, no.1 (2019): 21 - 32. 10.1016/j.cbrev.2019.03.002
MLA ALP Esra,Seven Ünal The dynamics of household final consumption: The role of wealth channel. Central Bank Review, vol.19, no.1, 2019, ss.21 - 32. 10.1016/j.cbrev.2019.03.002
AMA ALP E,Seven Ü The dynamics of household final consumption: The role of wealth channel. Central Bank Review. 2019; 19(1): 21 - 32. 10.1016/j.cbrev.2019.03.002
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IEEE ALP E,Seven Ü "The dynamics of household final consumption: The role of wealth channel." Central Bank Review, 19, ss.21 - 32, 2019. 10.1016/j.cbrev.2019.03.002
ISNAD ALP, Esra - Seven, Ünal. "The dynamics of household final consumption: The role of wealth channel". Central Bank Review 19/1 (2019), 21-32. https://doi.org/10.1016/j.cbrev.2019.03.002
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