Review of Economics of the Household

, Volume 16, Issue 4, pp 1085–1118 | Cite as

Self-insurance and consumption risk-sharing between birth-year cohorts in Turkey

  • Evren Ceritoğlu


This paper tests the empirical validity of the consumption risk-sharing hypothesis across urban and rural regions in Turkey. For this purpose, I analyze fourteen consecutive waves of the TURKSTAT Household Budget Surveys from 2003 to 2016 and prepare a pseudo-panel data set for birth-year cohorts. The empirical analysis shows that there is imperfect consumption risk-sharing between birth-year cohorts in Turkey. We observe that the growth of cohort consumption is positively and significantly associated with both the growth of cohort income and the growth of aggregate consumption. Finally, we find that cohorts would have sacrificed modest amounts to insure their consumption.


Consumption risk-sharing Income and consumption smoothing Cohort Pseudo-panel 

JEL Classification

C23 D11; D12 


Compliance with ethical standards

Conflict of interest

The authors declare that they have no conflict of interest.


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Copyright information

© Springer Science+Business Media, LLC, part of Springer Nature 2018

Authors and Affiliations

  1. 1.Economist, Structural Economic Research DepartmentCentral Bank of the Republic of Turkey (CBRT)AnkaraTurkey

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