The Effect of Inflation on Household Expenditures

Authors : Tacinur Akça

Pages : 169-184

Doi:10.18657/yonveek.1447033

View : 102 | Download : 128

Publication Date : 2025-03-12

Article Type : Research Paper

Abstract :The study focuses on the effect of household expenditures on the general level of prices. For this purpose, the rate of household consumption expenditures in GDP and the personal loans (housing, vehicles, credit cards, etc.) provided by public and private banks in Türkiye, especially in the period between 2004 and 2022, were preferred as data because it is an important factor that two variables are directly related as measurement indicators of household expenditures. The effect of price increases on household expenditures was examined using Hacker and Hatemi-J (2006) symmetric and Hatemi-J (2012) asymmetric tests. The findings indicate that there is no symmetric causal relationship between inflation rates and both personal loans and household consumption expenditures. Another finding of the study is that positive shocks in personal loans are effective in negative shocks to inflation, while positive shocks in household consumption expenditures are effective in both negative and positive shocks to inflation. Key Words: Inflation, Household Expenditures, Personal Loans, Household Consumption JEL Classification: E1, E21, E31, E51
Keywords : enflasyon, hanehalkı harcamaları, bireysel krediler, hanehalkı tüketimi