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Aggregate consumption function and public social security: the first time-series study for a developing country, Turkey

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  • Yigit Aydede

Abstract

This article is the first attempt in the literature to investigate the effects of public social security on aggregate consumption in a time-series setting for a developing country, Turkey that has one of the most generous social security systems in the organization for economic cooperation and development (OECD) region. In order to quantify the social security variable, this article uses the social security wealth (SSW) series calculated for Turkey in a separate study. This study indicates that SSW is the largest part of the household wealth in Turkey, and therefore should not be ignored in the aggregate consumption studies. The results show that its effect on consumption is positive and robust.

Suggested Citation

  • Yigit Aydede, 2008. "Aggregate consumption function and public social security: the first time-series study for a developing country, Turkey," Applied Economics, Taylor & Francis Journals, vol. 40(14), pages 1807-1826.
    • Handle: RePEc:taf:applec:v:40:y:2008:i:14:p:1807-1826
    DOI: 10.1080/00036840600905167
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    References listed on IDEAS

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    1. John Y. Campbell & N. Gregory Mankiw, 1989. "Consumption, Income, and Interest Rates: Reinterpreting the Time Series Evidence," NBER Chapters, in: NBER Macroeconomics Annual 1989, Volume 4, pages 185-246, National Bureau of Economic Research, Inc.
    2. repec:fth:harver:1435 is not listed on IDEAS
    3. Seidman,Laurence S., 1999. "Funding Social Security," Cambridge Books, Cambridge University Press, number 9780521652452.
    4. World Bank, 2003. "Non-bank Financial Institutions and Capital Markets in Turkey," World Bank Publications - Books, The World Bank Group, number 15162, December.
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    Cited by:

    1. Ünay Tamgaç Tezcan, 2016. "Reference Groups And Household Consumption: Evidence From Turkey," Ekonomi-tek - International Economics Journal, Turkish Economic Association, vol. 5(1), pages 71-107, January.
    2. Tang, Le & Sun, Shiyu & Yang, Weiguo, 2021. "Investments in human capital: The evidence from China’s new rural pension scheme," Research in International Business and Finance, Elsevier, vol. 55(C).
    3. Mehmet Balcilar & Evrim Toren, 2021. "The Time-Varying Effect of Asset Prices on Turkey’s Circular Economy," Sustainability, MDPI, vol. 13(22), pages 1-16, November.

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