Abstract

The most important determinant of consumption function is internal revenue and it was tried to expand the theoretical framework of consumption in this study. A regression analysis was conducted by setting up a multivariable consumption function for the period 1980-2015 for Turkey. National income, inflation, savings and import variables were the determinants of consumption in the analysis. In addition, ARDL Error Correction Model analysis was included in the study. According to the regression analysis, a positive relationship was found between national income and consumption, while a negative relationship was found between inflation and savings and consumption. Imports yielded meaningless results in this study. According to the ARDL model predicted in the study, the result was that the short cyclic deviations can be stabilized in the long run.