Advertising and Aggregate Consumption
A Bayesian DSGE Assessment
Bibliographic Data
| ID | 9717145 |
|---|---|
| Authors | Benedetto Molinari (0000-0002-6212-2412, University of Malaga and RCEA), Francesco Turino (0000-0002-5291-1346, University of Alicante) |
| Year | 2018 |
| Volume | 128 |
| Issue | 613 |
| Pages | 2106-2130 |
| Publication date | 2018-08-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | The Economic Journal (JOURNAL) |
| Journal identifiers | ISSN: 0013-0133 • E-ISSN: 1468-0297 |
| Publisher | Oxford University Press (OUP) (PUBLISHER) |
| DOI | 10.1111/ecoj.12514 |
| OpenAlex | W640670649 |
| Language | EN |
| Citations received | 3 |
| References cited | 23 |
Aggregate data reveal that in the US, advertising absorbs 2% of GDP. Because the purpose of brand advertising is to foster sales, we ask whether such spending appreciably affects aggregate consumption and economic activity. This question is addressed by developing and estimating a dynamic general equilibrium model in which households’ preferences for differentiated goods depend on brand advertising. Estimated results for the US economy indicate that in the long‐run, the presence of advertising raises aggregate consumption, investment, and hours worked, eventually fostering overall economic activity. We also find that advertising has a relevant impact on fluctuations in consumption and investment
Advertising · Aggregate (composite · Business · Consumption (sociology · Dynamic stochastic general equilibrium · Econometrics · Economics · Investment (military · Microeconomics · Monetary economics · Monetary policy · Economic theories and models · Economics of Agriculture and Food Markets · Monetary Policy and Economic Impact
Neural Correlates of Behavioral Preference for Culturally Familiar Drinks
Production, growth and business cycles
Shocks and Frictions in US Business Cycles
Shrouded Attributes, Consumer Myopia, and Information Suppression in Competitive Markets
An Examination of Selected Marketing Mix Elements and Brand Equity
Optimal Advertising Policy under Dynamic Conditions
Intertemporal Substitution, Risk Aversion and the Euler Equation for Consumption
| Unique citing works | 3 |
|---|---|
| Citations per year | 1 |
| Citation span | 2023 - 2025 (3) |
| Citation velocity | recent |
| Highly cited | No |
| Citation types | Neutral: 3 |