TY  - JOUR
TI  - The dynamics of household final consumption: The role of wealth channel
AB  - 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.
AU  - Seven, Ünal
AU  - ALP, Esra
DO  - 10.1016/j.cbrev.2019.03.002
PY  - 2019
JO  - Central Bank Review
VL  - 19
IS  - 1
SN  - 1303-0701
SP  - 21
EP  - 32
DB  - TRDizin
UR  - http://search/yayin/detay/354855
ER  -