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Some Empirical Methods Of Estimating Advertising Effects In Demand Systems: An Application To Dried Fruits

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  • Green, Richard D.
  • Carman, Hoy F.
  • McManus, Kathleen

Abstract

Two different methods of incorporating advertising effects into Almost Ideal Demand Systems (AIDS) are presented. Both advertising schemes are designed to allow theoretical restrictions to hold globally rather than at particular sample points. The models are estimated for California figs, prunes, and raisins. Empirical results indicate that generic advertising effects for these three dried fruits are generally weak when compared to price and total expenditure effects. Estimated cross-commodity effects also are relatively small except for the negative effect of raisin advertising on the quantity of prunes demanded.

Suggested Citation

  • Green, Richard D. & Carman, Hoy F. & McManus, Kathleen, 1991. "Some Empirical Methods Of Estimating Advertising Effects In Demand Systems: An Application To Dried Fruits," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 16(1), pages 1-9, July.
    • Handle: RePEc:ags:wjagec:32627
    DOI: 10.22004/ag.econ.32627
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    1. Richards, Timothy J. & Gao, Xiaoming & Patterson, Paul M., 1999. "Advertising And Retail Promotion Of Washington Apples: A Structural Latent Variable Approach To Promotion Evaluation," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 31(1), pages 1-14, April.
    2. Capps Jr., Oral & Bessler, David A. & Davis, George C. & Nichols, John P., 1996. "Economic Evaluation of the Cotton Checkoff Program," Economic Evaluation of Commodity Promotion Programs in the Current Legal and Political Environment, October 7-8, 1996, Monterey, California 279664, Regional Research Projects > NECC-63: Research Committee on Commodity Promotion.
    3. Shiptsova, Rimma & Goodwin, Harold L., Jr. & Holcomb, Rodney B., 2004. "Household Expenditure Patterns for Carbohydrate Sources in Russia," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 29(2), pages 1-12, August.
    4. Govindasamy, Ramu & Italia, John, 1999. "The Influence of Socio-Economic Characteristics on Food Advertisement Usage," P Series 36719, Rutgers University, Department of Agricultural, Food and Resource Economics.
    5. Lariviere, Eric & Larue, Bruno & Chalfant, Jim, 2000. "Modeling the demand for alcoholic beverages and advertising specifications," Agricultural Economics, Blackwell, vol. 22(2), pages 147-162, March.
    6. Okrent, Abigail M. & MacEwan, Joanna P., 2014. "The Effects of Prices, Advertising, Expenditures, and Demographics on Demand for Nonalcoholic Beverages," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 43(1), pages 1-22, April.
    7. Coulibaly, Nouhoun & Brorsen, B. Wade, 1998. "Resolving The Conflicts Between Previous Meat Generic Advertising Studies," 1998 Annual meeting, August 2-5, Salt Lake City, UT 20897, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    8. Alston, Julian M. & Carman, Hoy F. & Chalfant, James A. & Crespi, John M. & Sexton, Richard J. & Venner, Raymond J., 1998. "The California Prune Board's Promotion Program: An Evaluation," Research Reports 11926, University of California, Davis, Giannini Foundation.
    9. Cardwell, Ryan T., 2004. "Is The Efficacy Of Agricultural Promotion Programs Overestimated? The Importance Of Dynamics In Advertising Demand Systems," 2004 Annual meeting, August 1-4, Denver, CO 19949, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    10. Dengjun Zhang, 2015. "The trade effect of price risk: a system-wide approach," Empirical Economics, Springer, vol. 48(3), pages 1149-1167, May.
    11. Kinnucan, Henry W., 1996. "Relationship Between Price and Advertising in Two-Stage Demand Models," Economic Evaluation of Commodity Promotion Programs in the Current Legal and Political Environment, October 7-8, 1996, Monterey, California 279669, Regional Research Projects > NECC-63: Research Committee on Commodity Promotion.
    12. Alston, Julian M. & Chalfant, James A. & Piggott, Nicholas E., 1995. "Demand Response And Returns To Incremental Advertising In The Australian Meat Industry," Economic Analysis of Meat Promotion, June 2-3, 1995, Denver, Colorado 279609, Regional Research Projects > NECC-63: Research Committee on Commodity Promotion.
    13. Yeboah, Godfred & Maynard, Leigh J., 2004. "The Impact Of Bse, Fmd, And U.S. Export Promotion Expenditures On Japanese Meat Demand," 2004 Annual meeting, August 1-4, Denver, CO 19978, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    14. H. W. Kinnucan, 1996. "A Note On Measuring Returns To Generic Advertising In Interrelated Markets," Journal of Agricultural Economics, Wiley Blackwell, vol. 47(1‐4), pages 261-267, January.
    15. Ho, Shuay-Tsyr & Rickard, Bradley J. & Liaukonyte, Jura, 2014. "Economic and Nutritional Implications from Changes in U.S. Agricultural Promotion Efforts," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 46(4), pages 1-20, November.
    16. Alston, Julian M. & Carman, Hoy F. & Chalfant, James A., 1994. "EVALUATING PRIMARY PRODUCT PROMOTION: The Returns to Generic Advertising by a Producer Cooperative in a Small, Open Economy," Promotion in the Marketing Mix: What Works, Where and Why, April 28-29, 1994, Toronto, Canada 279601, Regional Research Projects > NECC-63: Research Committee on Commodity Promotion.
    17. Silva, Andres & Garcia, Marian & Bailey, Alastair, 2012. "The Impact of Child Obesity News on Household Food Expenditure in the United Kingdom," 2012 AAEA/EAAE Food Environment Symposium 123526, Agricultural and Applied Economics Association.
    18. Conley, Dennis M. & Wade, Mark A., 2007. "Consumer Responses to Food Safety Information from Print Media," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 10(3), pages 1-22.
    19. Richards, Timothy J. & Kagan, Albert & Gao, Xiaoming, 1997. "Factors Influencing Changes In Potato And Potato Substitute Demand," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 26(1), pages 1-15, April.
    20. Okrent, Abigail M. & MacEwan, Joanna P., 2014. "The Effects of Prices, Advertising, Expenditures, and Demographics on Demand for Nonalcoholic Beverages," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 0, pages 1-22.
    21. Duffy, Randy & Goddard, Ellen, 1995. "The Benefits To Canadian Hog Producers Of Generic Vs. Brand Advertising Of Pork," Economic Analysis of Meat Promotion, June 2-3, 1995, Denver, Colorado 279614, Regional Research Projects > NECC-63: Research Committee on Commodity Promotion.
    22. Valenciano, Jaime de Pablo & Manso, José Ramos Pires & Battistuzzi, Miguel Ángel Giacinti, 2017. "Drivers of the International Pear Market: A Panel data Approach," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 0(Issue 1), January.

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    Demand and Price Analysis; Marketing;

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