Tüketim ve Kamu Harcamaları: VECM Modeli

Consumption expenditure is an important component of aggregate demand. Recenttheoretical and empirical studies search for possible Keynesian / Non Keynesian fiscalimpacts on household consumption decisions. Besides providing insight to determinants ofconsumption decisions, these studies also provide guide to policy solutions to high and risky current account deficits and high and persisting inflation rate problems. This empirical study for Turkey is another attempt to search for possible Keynesian fiscal policy effects on private sector consumption decisions. Distinguishing long run and short run affects indicate that expansionary Keynesian impact of fiscal policy on private sector consumption decision is significant only if fiscal policy is sustainable