THE STABILITY OF THE INCOME AND CONSUMPTION RELATIONSHIP: EVIDENCE FROM THE QUANTILE REGRESSION MODEL ACCORDING TO EXPENDITURE GROUPS AND TIME

In this study, moving from the traditional consumption function, the relation between income and consumption has been investigated with a quantile regression model. For this purpose, using the data of Household Budget Survey (HBS) which has carried out by Turkish Statistical Institute (TSI), the structure of household consumption trend in Turkey for 2005-2016 years has investigated in terms of expenditure groups. According to the results of the study, the households in the low expenditure group have low consumption tendency and from the lowest to the highest for all other slices of the quantile regression an increase has been observed in the consumption tendency. In the study, it has been found that the marginal consumption tendency for each quantile shows a stable structure by time. However, serious differences among the quantile groups (cross section) have been observed