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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
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    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.

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    Bibliographic Info

    Article provided by Taylor & Francis Journals in its journal Applied Economics.

    Volume (Year): 40 (2008)
    Issue (Month): 14 ()
    Pages: 1807-1826

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    Handle: RePEc:taf:applec:v:40:y:2008:i:14:p:1807-1826

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