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Nonparametric Estimation of the Effects of Advertising: The Case of Lydia Pinkham

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  • Petr Mariel

    (Universidad del Pais Vasco, Bilbao, Spain)

Abstract

This article reexamines some of the issues raised subsequent to the classical research by Palda (1964). We use a nonparametric estimation method that allows us to incorporate both seasonal and smoothness constraints to estimate the parameters of a demand function using monthly data on Lydia Pinkham's vegetable compound. The analysis indicates that the parameters of the estimated demand equation are not constant throughout the long period of the data, which covers the whole life cycle of the product.

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Bibliographic Info

Article provided by University of Chicago Press in its journal Journal of Business.

Volume (Year): 78 (2005)
Issue (Month): 2 (March)
Pages: 649-674

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Handle: RePEc:ucp:jnlbus:v:78:y:2005:i:2:p:649-674

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Web page: http://www.journals.uchicago.edu/JB/

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Cited by:
  1. Zakaria Babutsidze, 2009. "Learning How to Consume and Returns to Product Promotion," Papers on Economics and Evolution 2009-05, Philipps University Marburg, Department of Geography.
  2. Zakaria Babutsidze, 2011. "Returns to product promotion when consumers are learning how to consume," Journal of Evolutionary Economics, Springer, vol. 21(5), pages 783-801, December.
  3. Stengos, T. & Zacharias, E., 2003. "Intertemporal Pricing and Price Discrimination: A Semiparametric Hedonic Analysis of the Personal Computer Market," Working Papers 2003-9, University of Guelph, Department of Economics and Finance.
  4. Mariel Chladkova, Petr & Rodríguez González, Carlos & Orbe Mandaluniz, Susan, 2007. "A time varying coefficient model for panel data: Foreign Direct Investment in European OECD countries," BILTOKI 2007-03, Universidad del País Vasco - Departamento de Economía Aplicada III (Econometría y Estadística).

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