International Journal of Business and Social Science

ISSN 2219-1933 (Print), 2219-6021 (Online) DOI: 10.30845/ijbss

Designing Cost of Living Index for Classification of Statistical Region Units-Level 2
Hüseyin ÖZER, Ahmet SARI

The cost of living index is one of the indicators for preparation of more efficient policies of income distribution, wage and investment and for determination of the cost of continuation a given life standart for different areas. By taking this index consideration , it would be possible to make master plans for reduction of migration tendency, minimization of cost of living differences among regions and overcoming of wealth differences among residental areas. Also, by the aid of this index, the cost of the same life standart would be comparable for different residental areas. The aim of this study is to design a cost of living index for Statistical Area formed in Turkey and to compare this index with consumer prices index. The most comprehensive research conducted by TURKSTAT for Turkey, 2003 Household Budget Survey’s data set is used in this study and definitions, explanation and mean price values for commodity basket are inferred from 2003 Consumer Prices Index’s data set. At the phase of index counting, the method of ACCRA (AMERICAN CHAMBERS OF COMMERCE RESEARCHERS ASSOCIATION), applied in usa, is used. The calculated values of index basket on the same matter, or the same level of benefit for different regions to obtain to cost were compared. As a result, within Classification of Statistical Region Units (SRE)- level 2, the Istanbul Region is more expensive compared to other statistical areas have been identified.

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