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A Nonparametric Test Of Advertising'S Effectiveness

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  • Chalfant, James A.
  • Eshel, Dafna M. Disegni

Abstract

Nonparametric demand analysis uses axioms of revealed preference to test a data set for compatibility with the hypothesis of stable preferences. Previous applications have tested for the presence of structural change using this approach. This paper shows how to include demand shifters such as advertising in the analysis. It is shown that the implied results for changes in tastes depend on restrictions on advertising's effects.

Suggested Citation

  • Chalfant, James A. & Eshel, Dafna M. Disegni, 2001. "A Nonparametric Test Of Advertising'S Effectiveness," 2001 Annual meeting, August 5-8, Chicago, IL 20529, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  • Handle: RePEc:ags:aaea01:20529
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    File URL: http://purl.umn.edu/20529
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    References listed on IDEAS

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    1. Varian, Hal R, 1982. "The Nonparametric Approach to Demand Analysis," Econometrica, Econometric Society, vol. 50(4), pages 945-973, July.
    2. Burton, Michael, 1994. "The Power of Non-parametric Demand Analysis When Applied to British Meat and Fish Consumption Data," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 21(1), pages 59-71.
    3. Jean-Paul Chavas & Thomas L. Cox, 1994. "A Primal-Dual Approach to Nonparametric Productivity Analysis: the Case of U.S. Agriculture," Wisconsin-Madison Agricultural and Applied Economics Staff Papers 372, Wisconsin-Madison Agricultural and Applied Economics Department.
    4. Chalfant, James A & Alston, Julian M, 1988. "Accounting for Changes in Tastes," Journal of Political Economy, University of Chicago Press, vol. 96(2), pages 391-410, April.
    5. Yong Sakong & Dermot J. Hayes, 1993. "Testing the Stability of Preferences: A Nonparametric Approach," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 75(2), pages 269-277.
    6. James A. Chalfant & Bin Zhang, 1997. "Variations on Invariance or Some Unpleasant Nonparametric Arithmetic," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(4), pages 1164-1176.
    7. Nicholas E. Piggott & James A. Chalfant & Julian M. Alston & Garry R. Griffith, 1996. "Demand Response to Advertising in the Australian Meat Industry," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(2), pages 268-279.
    8. Cox, Thomas L & Chavas, Jean-Paul, 1990. "A Nonparametric Analysis of Productivity: The Case of U.S. Agriculture," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 17(4), pages 449-464.
    9. Rafael Cortez & Ben Senauer, 1996. "Taste Changes in the Demand for Food by Demographic Groups in the United States: A Nonparametric Empirical Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, pages 280-289.
    10. Landsburg, Steven E, 1981. "Taste Change in the United Kingdom, 1900-1955," Journal of Political Economy, University of Chicago Press, vol. 89(1), pages 92-104, February.
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    Keywords

    Marketing;

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