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Advertising and Cigarette Consumption

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Author Info
Khosrow Doroodian (Ohio University)
Barry J. Seldon (University of Texas, Dallas)
Abstract

The authors examine two questions that are relevant to current policy issues: (1) is there a positive response of aggregate demand to advertising? (2) what is the reaction of consumers to government health warnings and media policy? The results support the hypothesis that advertising increases aggregate demand for cigarettes. However, the advent of health warnings and media policies seems to have eradicated this aggregate advertising effect. The findings also support some previous studies that suggest that aggregate advertising effects depreciate within one year.

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File URL: http://college.holycross.edu/eej/Volume17/V17N3P359_366.pdf
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Publisher Info
Article provided by Eastern Economic Association in its journal Eastern Economic Journal.

Volume (Year): 17 (1991)
Issue (Month): 3 (Jul-Sep)
Pages: 359-366
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:eej:eeconj:v:17:y:1991:i:3:p:359-366

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Related research
Keywords: Advertising; Consumer; Health;

Find related papers by JEL classification:
D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
M37 - Business Administration and Business Economics; Marketing; Accounting - - Marketing and Advertising - - - Advertising
I12 - Health, Education, and Welfare - - Health - - - Health Production

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. McGuinness, Tony & Cowling, Keith, 1975. "Advertising and the aggregate demand for cigarettes," European Economic Review, Elsevier, vol. 6(3), pages 311-328, July. [Downloadable!] (restricted)
  2. Baltagi, Badi H & Levin, Dan, 1986. "Estimating Dynamic Demand for Cigarettes Using Panel Data: The Effects of Bootlegging, Taxation and Advertising Reconsidered," The Review of Economics and Statistics, MIT Press, vol. 68(1), pages 148-55, February. [Downloadable!] (restricted)
  3. Hamilton, James L, 1972. "The Demand for Cigarettes: Advertising, the Health Scare, and the Cigarette Advertising Ban," The Review of Economics and Statistics, MIT Press, vol. 54(4), pages 401-11, November. [Downloadable!] (restricted)
  4. Leu, Robert E., 1984. "Anti-smoking publicity, taxation, and the demand for cigarettes," Journal of Health Economics, Elsevier, vol. 3(2), pages 101-116, August. [Downloadable!] (restricted)
  5. McLeod, Paul B., 1986. "Advertising bans, tobacco and cigarette consumption," Economics Letters, Elsevier, vol. 20(4), pages 391-396. [Downloadable!] (restricted)
  6. Witt, Stephen F & Pass, Christopher L, 1981. "The Effects of Health Warnings and Advertising on the Demand for Cigarettes," Scottish Journal of Political Economy, Scottish Economic Society, vol. 28(1), pages 86-91, February.
  7. Hausman, Jerry A, 1978. "Specification Tests in Econometrics," Econometrica, Econometric Society, vol. 46(6), pages 1251-71, November. [Downloadable!] (restricted)
  8. Durbin, J, 1970. "Testing for Serial Correlation in Least-Squares Regression When Some of the Regressors are Lagged Dependent Variables," Econometrica, Econometric Society, vol. 38(3), pages 410-21, May. [Downloadable!] (restricted)
  9. Schneider, Lynne & Klein, Benjamin & Murphy, Kevin M, 1981. "Governmental Regulation of Cigarette Health Information," Journal of Law & Economics, University of Chicago Press, vol. 24(3), pages 575-612, December.
    Other versions:
  10. Ashley, R & Granger, C W J & Schmalensee, R, 1980. "Advertising and Aggregate Consumption: An Analysis of Causality," Econometrica, Econometric Society, vol. 48(5), pages 1149-67, July. [Downloadable!] (restricted)
  11. Ashenfelter, Orley & Sullivan, Daniel, 1987. "Nonparametric Tests of Market Structure: An Application to the Cigarette Industry," Journal of Industrial Economics, Blackwell Publishing, vol. 35(4), pages 483-98, June. [Downloadable!] (restricted)
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