By J.P. Nelson, Michael R. Baye
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Additional resources for Advertising and Differentiated Products (Advances in Applied Microeconomics, Vol. 10)
S. , & Brown, M. G. (1992). Commodity Versus Brand Advertising: A Case Study of the Florida Orange Juice Industry. In: H. W. Kinnucan, S. R. Thompson & H-S. Chang (Eds), Commodity Advertising and Promotion (pp. 79–100). Iowa State University Press, Ames. Leone, R. P. (1995). Generalizing What is Known About Temporal Aggregation and Advertising Carryover. Marketing Science, 14, G141-G150. , & Green, R. D. (1994). Maintaining and Testing for Separability in Demand Systems. American Journal of Agricultural Economics, 76, 61–73.
Our ﬁndings indicate that long-run 34 N. EDWARD COULSON, JOHN R. MORAN AND JON P. NELSON beverage demand is both price and income inelastic. The long-run inﬂuence of advertising is notably small, particularly for beer and spirits. We also report estimates of the associated error-correction models, ﬁnding little in the way of short-run dynamics, but signiﬁcant contemporaneous effects associated with changes in the age composition of the population. Section VI contains concluding remarks on the alcohol advertising debate.
27). Both of the estimated income elasticities for beer have negative signs. Our observations on this result are given below. 03. 76. The own-advertising 42 N. EDWARD COULSON, JOHN R. MORAN AND JON P. NELSON Table 5. Long-Run Demand Equations. 173 Notes: Asymptotic standard errors are shown in parentheses for the two cases where a single cointegrating vector is present. When multiple cointegrating vectors are present, there is no readily-available method for calculating the correct standard errors for the chosen vector and normalization, so standard errors are omitted in these cases.