Households’ Censored Mobile Phone Spending and Its Determinants in Turkey: An Inverse-Hyperbolic Sine Double-hurdle Model

Abstract The roles of socio-demographic and economic characteristics in the probability and levels of household mobile phone spending were determined by estimating the inverse hyperbolic sine double-hurdle model (IHS-DH). Data were obtained from the Household Budget Surveys conducted by the Turkish Statistical Institute (TSI) during 2019. The IHS-DH model has a statistical advantage over all other competing models. In addition, statistical test results have provided support for the heteroscedastic error specification and use of instruments in parameter identification. Findings suggest that most of the socio-demographic and economic characteristics of the household and the head of household have significant effects on the probability to spend and levels of spending on mobile phones. In particular, the creation of different policy and intervention structures suitable for the statistically significant characteristics of the family will both ensure the efficiency of resource allocation and facilitate the adoption of appropriate marketing strategies in the country. The Global System for Mobile Communications operators are thought to be one of the biggest beneficiaries of the returns to be received from all kinds of subventions or investment incentives made in areas where the telecommunication infrastructure is insufficient.