AN ECONOMETRIC STUDY ON THE RELATION OF INCOME AND CONSUMPTION OF IĞDIR UNIVERSITY STUDENTS

Abstract

The aim of this study is to examine the income-consumption relationship of university students in the context of the Engel Law. In this direction, a questionnaire was applied to 384 students using face-to-face interviews and the data obtained were tested with 9 functional models. Income elasticity values for expenditure items are calculated with the help of determined Engel functions. As a result, it has been observed that accommodation, food, transportation, personal care, education, communication-internet and other expenditure groups are compulsory goods, while clothing-footwear, cigarette-alcohol and socio-cultural expenditure groups are luxury goods.