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Advertising, Consumption and Economic Growth: An Empirical Investigation

Rehme, Günther ; Weisser, Sara-Frederike (2007)
Advertising, Consumption and Economic Growth: An Empirical Investigation.
Report, Bibliographie

Kurzbeschreibung (Abstract)

It is sometimes argued that more advertising raises consumption which in turn stimulates output and so economic growth. We test this hypothesis using annual German data expressed in terms of GDP for the period 1950-2000. We find that advertising does not Granger-cause growth but Granger-causes consumption. Consumption, in turn, Granger-causes GDP growth. The data imply that the immediate impact of more advertising on consumption is positive. However, the long-run effect is negative. Further- more, the immediate impact of higher consumption on growth is negative. But the long-run effect is positive. These results raise interesting questions for standard theory, political debates and advertising practioners.

Typ des Eintrags: Report
Erschienen: 2007
Autor(en): Rehme, Günther ; Weisser, Sara-Frederike
Art des Eintrags: Bibliographie
Titel: Advertising, Consumption and Economic Growth: An Empirical Investigation
Sprache: Englisch
Publikationsjahr: Februar 2007
Ort: Darmstadt
Reihe: Darmstadt Discussion Papers in Economics
Band einer Reihe: 178
URL / URN: http://econstor.eu/bitstream/10419/32093/1/524536694.PDF
Kurzbeschreibung (Abstract):

It is sometimes argued that more advertising raises consumption which in turn stimulates output and so economic growth. We test this hypothesis using annual German data expressed in terms of GDP for the period 1950-2000. We find that advertising does not Granger-cause growth but Granger-causes consumption. Consumption, in turn, Granger-causes GDP growth. The data imply that the immediate impact of more advertising on consumption is positive. However, the long-run effect is negative. Further- more, the immediate impact of higher consumption on growth is negative. But the long-run effect is positive. These results raise interesting questions for standard theory, political debates and advertising practioners.

Freie Schlagworte: Advertising, Consumption, Economic Growth
Zusätzliche Informationen:

JEL Classification: O4, M3, E2

Fachbereich(e)/-gebiet(e): 01 Fachbereich Rechts- und Wirtschaftswissenschaften
01 Fachbereich Rechts- und Wirtschaftswissenschaften > Volkswirtschaftliche Fachgebiete
01 Fachbereich Rechts- und Wirtschaftswissenschaften > Volkswirtschaftliche Fachgebiete > Fachgebiet Wirtschaftstheorie
Hinterlegungsdatum: 11 Sep 2009 10:20
Letzte Änderung: 03 Jun 2018 21:23
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