TU Darmstadt / ULB / TUprints

Advertising, Consumption and Economic Growth: An Empirical Investigation

Rehme, Günther and Weisser, Sara-Frederike :
Advertising, Consumption and Economic Growth: An Empirical Investigation.
In: Darmstadt Discussion Papers in Economics, 178. Darmstadt
[Report], (2007)

[img]
Preview
Text
ddpie_178.pdf
Available under Only rights of use according to UrhG.

Download (721kB) | Preview
Item Type: Report
Title: Advertising, Consumption and Economic Growth: An Empirical Investigation
Language: English
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.

Series Name: Darmstadt Discussion Papers in Economics
Volume: 178
Place of Publication: Darmstadt
Uncontrolled Keywords: Advertising, Consumption, Economic Growth
Classification DDC: 300 Sozialwissenschaften > 330 Wirtschaft
Divisions: 01 Law and Economics > Volkswirtschaftliche Fachgebiete > Economic Theory
01 Law and Economics > Volkswirtschaftliche Fachgebiete
01 Law and Economics
Date Deposited: 11 Sep 2009 10:20
Last Modified: 28 Jan 2016 13:10
URN: urn:nbn:de:tuda-tuprints-47460
Additional Information:

JEL Classification: O4, M3, E2

Additional Information:

JEL Classification: O4, M3, E2

URI: http://tuprints.ulb.tu-darmstadt.de/id/eprint/4746
Export:
Actions (login required)
View Item View Item

Downloads

Downloads per month over past year