Rehme, Günther ; Weisser, Sara-Frederike (2007):
Advertising, Consumption and Economic Growth: An Empirical Investigation.
In: Darmstadt Discussion Papers in Economics, 178, Darmstadt, [Report]
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Item Type: | Report |
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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: | Darmstadt Discussion Papers in Economics |
Series Volume: | 178 |
Place of Publication: | Darmstadt |
Uncontrolled Keywords: | Advertising, Consumption, Economic Growth |
Classification DDC: | 300 Sozialwissenschaften > 330 Wirtschaft |
Divisions: | 01 Department of Law and Economics > Volkswirtschaftliche Fachgebiete > Economic Theory 01 Department of Law and Economics > Volkswirtschaftliche Fachgebiete 01 Department of 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 |
URI: | https://tuprints.ulb.tu-darmstadt.de/id/eprint/4746 |
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