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Advertising and Cigarette Consumption

  • Khosrow Doroodian

    (Ohio University)

  • Barry J. Seldon

    (University of Texas, Dallas)

Registered author(s):

    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/RePEc/eej/Archive/Volume17/V17N3P359_366.pdf
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    Article provided by Eastern Economic Association in its journal Eastern Economic Journal.

    Volume (Year): 17 (1991)
    Issue (Month): 3 (Jul-Sep)
    Pages: 359-366

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    Handle: RePEc:eej:eeconj:v:17:y:1991:i:3:p:359-366
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    1. 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.
    2. J. A. Hausman, 1976. "Specification Tests in Econometrics," Working papers 185, Massachusetts Institute of Technology (MIT), Department of Economics.
    3. 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.
    4. 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.
    5. 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.
    6. McLeod, Paul B., 1986. "Advertising bans, tobacco and cigarette consumption," Economics Letters, Elsevier, vol. 20(4), pages 391-396.
    7. McGuinness, Tony & Cowling, Keith, 1975. "Advertising and the aggregate demand for cigarettes," European Economic Review, Elsevier, vol. 6(3), pages 311-328, July.
    8. 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.
    9. 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.
    10. 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.
    11. Ashenfelter, Orley & Sullivan, Daniel, 1987. "Nonparametric Tests of Market Structure: An Application to the Cigarette Industry," Journal of Industrial Economics, Wiley Blackwell, vol. 35(4), pages 483-98, June.
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