OECD Ülkelerinde Gelir Eşitsizliği-Gösteriş Tüketimi İlişkisi: Uzun Dönemli Bir Analiz(The Relationship between Income Inequality and Conspicuous Consumption in OECD Countries: A Long-run Analysis)

Abstract

This study analyzes the relationship between income distribution and consumption expenditures in OECD countries. In this framework, a data set covering 34 OECD countries and the period 1970-2021 is used. In the study, the "Dynamic panel data" technique is applied to eliminate the endogeneity problem and to better explain the dynamic process in the long run. In addition, the relationship analyzed through three different income distribution indicators. The hypotheses of Frank (2014) and Christensen and Morgan (2005), which are considered extensions of the relative income hypothesis, are tested, and it is also questioned whether the results are robust. The findings show that an increase in income inequality increases total expenditures. This result confirms the "conspicuous consumption" phenomenon and therefore supporting Duesenberry's (1949) hypothesis. Accordingly, an increase in income inequality increases total expenditures through conspicious consumption.

Keywords

• consumption expenditures
• income distribution
• panel data analysis