Examining of income-consumption?s relationship with coentegration analyses for Turkey

The relationship between income and consumption is one of the most popular subjects of econometrics and economics science that protects its popularity and became study to many subjects. The researchers have carried out a number of studies upon this subject since the 18th century. There are many improvements, which have been seen on the relationship between income and consumption, from past to present. These are about consumption theories that has been improved firstly by J. Maynard Keynes and the other scientists. In this study, Absolute Income Theory of Keynes for Turkey is forecasted by using the data in period 1987 ? 2007 and the method of cointegration.In the first parts of our study, the function of consumption, macro economics consumption theories, studies about these theories, the critics done to these theories are included. In second part cointegrational analyses are investigated. The last part of the study includes the application part.As a result; the changes occuring in the income level of Turkey do not effect the consumption. Two variables do not take action together and it is seen that they do not effect each other when the long term relations and the short term dynamics are investigated.