Advertising and Cigarette Consumption
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.
Volume (Year): 17 (1991)
Issue (Month): 3 (Jul-Sep)
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- Benjamin Klein & Kevin M. Murphy & Lynne Schneider, 1981.
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UCLA Economics Working Papers
200, UCLA Department of Economics.
- Schneider, Lynne & Klein, Benjamin & Murphy, Kevin M, 1981. "Governmental Regulation of Cigarette Health Information," Journal of Law and Economics, University of Chicago Press, vol. 24(3), pages 575-612, December.
- 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.
- McGuinness, Tony & Cowling, Keith, 1975. "Advertising and the aggregate demand for cigarettes," European Economic Review, Elsevier, vol. 6(3), pages 311-328, July.
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