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The Effects of Advertising in an Inverse Demand System: Norwegian Vegetables Revisited

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  • Rickersten, Kyrre

Abstract

Rickertsen et al. (1995) found no significant positive effects of advertising on vegetable demand using the almost ideal demand (AID) system. Using SUR in a quantity-dependent system assumes that prices are predetermined. During the Norwegian growing season, strict import regulations have been applied and quantities are apparently predetermined. To investigate whether the AID or a corresponding inverse demand system is appropriate, the endogeneity of prices and quantities are tested. Advertising expenditures are included as shift variables in both systems. Quantities appear to be predetermined, while prices are endogenous and the inverse model is selected. No positive effects of advertising are found. Copyright 1998 by Oxford University Press.

Suggested Citation

  • Rickersten, Kyrre, 1998. "The Effects of Advertising in an Inverse Demand System: Norwegian Vegetables Revisited," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 25(1), pages 129-140.
  • Handle: RePEc:oup:erevae:v:25:y:1998:i:1:p:129-40
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    Cited by:

    1. Beatrice D. Simo-Kengne & Johane Dikgang & Sunita Prugsamatz Ofstad, 2018. "Effect of marine protected areas and macroeconomic environment on meat consumption in SEAFO countries," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 6(1), pages 1-13, December.
    2. Verbeke, Wim & Ward, Ronald W., 2001. "A fresh meat almost ideal demand system incorporating negative TV press and advertising impact," Agricultural Economics, Blackwell, vol. 25(2-3), pages 359-374, September.
    3. Sven Anders & Anke Mőser, 2010. "Consumer Choice and Health: The Importance of Health Attributes for Retail Meat Demand in Canada," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 58(2), pages 249-271, June.
    4. Stathis Klonaris & Garyfallos Arabatzis, 2009. "Empirical Demand Analysis For Long - Length Roundwood (Sawlogs) In Greece," Working Papers 2009-03, Agricultural University of Athens, Department Of Agricultural Economics.
    5. Eric Sjöberg, 2015. "Pricing on the Fish Market--Does Size Matter?," Marine Resource Economics, University of Chicago Press, vol. 30(3), pages 277-296.
    6. H. Holly Wang & Paul Gardner de Beville, 2017. "The media impact of animal disease on the US meat demand," Agribusiness, John Wiley & Sons, Ltd., vol. 33(4), pages 493-504, September.
    7. Steen, Marie, 2006. "Flower Power at the Dutch Flower Auctions? Application of an Inverse Almost Ideal Demand System," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25441, International Association of Agricultural Economists.

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