Household consumption expenditure affecting factors in Turkey and European Union

In present study, the effectng factors are affecting the consumption expenditure of hosuhold whom live in Turkey an European Union (EU). Some hypothesis ( Absolute Income hypothesis, Relative Income Hypothesis…) are taken to investigate to concept of consumption in terms of economic. The goal of study is determine some macro ecoonomic factors are affecting households' consumption live in Turkey and EU. Also, the changes occuring in consumer spending power is to put forward an explanation. In the study, VAR analysis (Vector Autoregressive) and Granger Causality test results were evaluated in order to test the power of macroeconomic variables (income, interest and unemployment) to explain changes in consumption expenditures in the quarter period of 2003Q1-2018Q4. According to results, it was obtained that the statement of changes which are in consumer spending was inadequate income alone in Turkey's period. In addition, the interest variable was identified as the most important variable explaining the change in consumption expenditures. VAR model showed that for the EU region, the income variable was insufficient in explaining the change in consumption expenditures. On the other hand, the unemployment variable was identified as the most important variable explaining the changes in consumption expenditures.