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The science and art of promotion evaluation

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  • George C. Davis

    (Department of Agricultural Economics, Texas A&M University, College Station, TX 77843-2124)

Abstract

Over the past two decades commodity checkoff programs have proliferated. In 1996 legislation was passed that requires these programs to be evaluated at least once every 5 years. Because of this legislation there are now potential legal and monetary implications associated with these evaluations. Consequently, for all parties concerned two questions naturally arise: what is the scientific status of promotion evaluations? How can promotion evaluations be improved?This article attempts to answer these questions by exploring the scientific and artistic aspects of the central activity involved in all promotion evaluations: modeling. Attention centers on the scientific assumption choice set that is available to modelers, the tradeoffs involved in making certain assumption choices, and how assumption choices may be improved in general. These ideas are discussed in the context of a sample of promotion evaluation studies. [Econ-Lit citations: B4, D6, Q13] © 1999 John Wiley & Sons, Inc.

Suggested Citation

  • George C. Davis, 1999. "The science and art of promotion evaluation," Agribusiness, John Wiley & Sons, Ltd., vol. 15(4), pages 465-483.
  • Handle: RePEc:wly:agribz:v:15:y:1999:i:4:p:465-483 DOI: 10.1002/(SICI)1520-6297(199923)15:4<465::AID-AGR4>3.0.CO;2-D
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    References listed on IDEAS

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    1. David L. Edgerton, 1997. "Weak Separability and the Estimation of Elasticities in Multistage Demand Systems," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(1), pages 62-79.
    2. Hausman,Daniel M., 1992. "The Inexact and Separate Science of Economics," Cambridge Books, Cambridge University Press, number 9780521425230, March.
    3. Lewbel, Arthur, 1996. "Aggregation without Separability: A Generalized Composite Commodity Theorem," American Economic Review, American Economic Association, vol. 86(3), pages 524-543, June.
    4. Forni, Mario & Lippi, Marco, 1999. "Aggregation of linear dynamic microeconomic models," Journal of Mathematical Economics, Elsevier, vol. 31(1), pages 131-158, February.
    5. Musgrave, Alan, 1981. "'Unreal Assumptions' in Economic Theory: The F-Twist Untwisted," Kyklos, Wiley Blackwell, vol. 34(3), pages 377-387.
    6. Stoker, Thomas M, 1993. "Empirical Approaches to the Problem of Aggregation Over Individuals," Journal of Economic Literature, American Economic Association, vol. 31(4), pages 1827-1874, December.
    7. George C. Davis, 1997. "Product Aggregation Bias as a Specification Error in Demand Systems," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(1), pages 100-109.
    8. Hausman,Daniel M., 1992. "The Inexact and Separate Science of Economics," Cambridge Books, Cambridge University Press, number 9780521415019, March.
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    Cited by:

    1. Shumway, C. Richard & Davis, George C., 2001. "Does consistent aggregation really matter?," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 45(2), June.
    2. 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).
    3. Zhang, Mingxia & Sexton, Richard J., 2000. "Optimal Commodity Promotion In Imperfectly Competitive Markets," 2000 Annual meeting, July 30-August 2, Tampa, FL 21823, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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