Demand analysis of important food products according to household income groups in Turkey

The main purpose of this study is to calculate the general demand parameters, expenditure and income elasticities, by taking into account the economic and demographic characteristics of the households. In addition, in the study, households were sorted according to annual disposable income and divited into five equal groups of 20%. Thus, the socioeconomic characteristics of the households, which is another aim of the study, as well as the amaunt and distribution of expenditures were analyzed in terms of these groups. For this purposes, the "Household Budget Survey (HBS)" micro data set for 2015-2016-2017 provided by the Turkish Statistical Institute (TURKSTAT), is used. In the analysis of the data, the Double Logarithm Function method in the econometric analysis of the total expenditures and the Working-Leser model method in the econometric analysis of the main goods and service groups and food sub-product groups are used. In the study, for unbiased and consistent estimates, considering zero-expenditure observations, Reverse Mill's Ratios are estimated and used in the analysis with the Heckman Two-Stage Demand Model method. According to the results obtained from the study; it has been determined that the total annual disposable income of households is unevenly distributed. It has been concluded that this imbalanced distribution is also observed in total expenditures of households and total food expenditures according to income groups. The difference in total expenditure between the first and fifth 20% income groups was 4.86; 4.23; 4.36 times and the total food expenditure difference was 1.91; 1.87; 1.95 times in 2015-2016-2017 respectively, in favor of the fifth higher income group. Food expenditure ratios of households in total expenditures were found as 22.0%; 21.2% and 21.6% in 2015-2016-2017 respectively. It has been observed that "Food and Non-Alcoholic Beverages" expenditures increase in absolute terms and decrease in relative terms with the increase income in all years, as expected. In the study, the expenditures of "Housing and Rent, Water, Electricity, Gas and Other Fuels", "Alcoholic Beverages, Cigarettes, Tobacco Products", "Food and Non-Alcoholic Bevegares" are among the lowest income elasticity and mandatory expenditure items, respectively, for households in all years. "Education" and "Transportation" expenditures are found to be among the highest income elasticity and luxury expenditure items. In terms of income elasticities of food sub-product groups, "Meat and Meat Products" expenditures have the highest income elasticities of less than 1 unit in all years. In the study, food sub-product groups "Coffee and Tea", "Soft Dirinks" and "Bread and Other Cereal Products" (excluding 2017) are estimated as the lowest income elasticities and mandatory food expenditures in all years.