The Lınear Expendıture System And Its Applıcatıon To Turkısh Commodıty Groups

Abstract

The paper aims to develop marginal budget share, income and price elasticities of household commodity groups’ consumption for Turkey by applying the Linear Expenditure System (LES) to the data between 2002 and 2011 Household Budget Survey. In this study, data of the Household Budget Survey (HBS) conducted and calculated by the Turkish Statistical Institute (TurkStat). Marginal budget share, income and price elasticities under commodity groups were estimated within the framework of the Linear Expenditure System (LES) approach in Turkey. Findings for the price elasticities are consistent with economic theory and that time, price
elasticities are negative. While income elasticity of some goods exceed unity, income elasticity of some goods don’t exceed unity.