Economic Approach to Consumption in the Process of Global Crisis: 2007–2009 Period

Abstract

According to the micro theory, the household’s consumption of goods is strongly related to income. Consumption of some goods may not change as in the proportion of income change. Consumers generally increase luxury consumption, decrease necessary goods’ consumption while their incomes increase. At least, it is true in the micro theory. The global crisis, which started in the USA and spread into other parts of the world, can have significant effects on consumption of households. The aim of this study is to research consumption habits of rich and poor Turkish citizens after the start of the global crisis. At first, I want to describe movements of consumptions by studying related literature and at last study Turkish data that was published by TUIK.