publication . Article . Preprint . 2011

advertising expenditure and consumer prices

Ferdinand Rauch;
Open Access
  • Published: 01 Aug 2011 Journal: International Journal of Industrial Organization, volume 31, pages 331-341 (issn: 0167-7187, Copyright policy)
  • Publisher: Elsevier BV
Abstract
This paper studies the effect of a change in the marginal costs of advertising on advertising expenditures of firms and consumer prices across industries. It makes use of a unique policy change that caused a decrease of the taxation on advertising expenditures in parts of Austria and a simultaneous increase in other parts. Advertising expenditures move immediately in the opposite direction to the marginal costs of advertising. Simultaneously the price reaction to advertising is negative in some industries (food, education) and positive in other industries (alcohol, tobacco, transportation, hotels and restaurants), depending on the information content of advertis...
Subjects
ACM Computing Classification System: ComputingMilieux_MISCELLANEOUS
free text keywords: Advertising, taxation of advertising, effects of advertising, Strategy and Management, Industrial and Manufacturing Engineering, Industrial relations, Aerospace Engineering, Globalization, Marginal cost, Rlab, computer.programming_language, computer, Microeconomics, Poverty, Download, Industrial organization, Public policy, Unemployment, media_common.quotation_subject, media_common, Economics, Advertising, Economic research, jel:H25, jel:M37
Related Organizations
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publication . Article . Preprint . 2011

advertising expenditure and consumer prices

Ferdinand Rauch;