Household Consumption Expenditures in Türkiye: Socio-Economic Determinants, Spending Patterns, and Policy Perspectives

This study investigates the socio-economic determinants of household consumption in Türkiye from 2005 to 2019, using the Marshallian demand function and a negative binomial regression model to address data overdispersion. Based on a uniquely constructed dataset combining Household Budget Surveys and regional Consumer Price Index, the analysis examines how income, education, household size, and demographic structure influence spending across expenditure categories. Results show that higher-income households allocate more to discretionary goods, while lower-income groups focus on necessities. Education is a key driver of spending on housing and human capital, with a nonlinear effect. Consumption rises with age and size but later declines, reflecting life-cycle and scale effects. In-kind transfers reduce direct spending, mortgage debt limits consumption, and single-parent households face greater financial pressure, unlike extended families who benefit from economies of scale. These findings underscore the complex relationship between socio-economic factors and consumption, offering policy insights into household welfare and inequality.