publication . Preprint . 1997

Advertising and Consumer Welfare: Scaling versus Translating

Alston, Julian M.; Chalfant, James A.; Piggott, Nicholas E.;
Open Access
  • Published: 17 Jan 1997
Controversy has surrounded the welfare effects of advertising, mainly concerning the consumer welfare effects. Unfortunately, the measures of consumer welfare effects in most studies have been ad hoc and incorrect. The consumer welfare consequences of advertising can be measured consistently when consumer demand equations are derived from an expenditure function. This is illustrated using the Almost Ideal demand system, which is popular in econometric estimation of food demand systems. An empirical application uses data on Australian meat consumption to evaluate generic advertising of meats. The results from using a theoretically correct money-metric measure of ...
ACM Computing Classification System: TheoryofComputation_GENERAL
free text keywords: advertising, consumer welfare, social welfare, Almost Ideal demand system, Demand and Price Analysis,
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