IDEAS home Printed from https://ideas.repec.org/p/ags/aare97/135411.html
   My bibliography  Save this paper

Advertising and Consumer Welfare: Scaling versus Translating

Author

Listed:
  • Alston, Julian M.
  • Chalfant, James A.
  • Piggott, Nicholas E.

Abstract

Controversy has surrounded the welfare effects of advertising, mainly concerning the consumer welfare effects. Unfortunately, the measures of consumer welfare effects in most studies have been ad hoc and incorrect. The consumer welfare consequences of advertising can be measured consistently when consumer demand equations are derived from an expenditure function. This is illustrated using the Almost Ideal demand system, which is popular in econometric estimation of food demand systems. An empirical application uses data on Australian meat consumption to evaluate generic advertising of meats. The results from using a theoretically correct money-metric measure of consumer welfare effects, taking account of cross-commodity effects of advertising and price changes, are compared with ad hoc approaches that some previous studies have proposed. In addition, the consumer welfare measures are combined with measures of producer benefits in order to compute private and social returns.

Suggested Citation

  • Alston, Julian M. & Chalfant, James A. & Piggott, Nicholas E., 1997. "Advertising and Consumer Welfare: Scaling versus Translating," 1997 Conference (41st), January 22-24, 1997, Gold Coast, Australia 135411, Australian Agricultural and Resource Economics Society.
    • Handle: RePEc:ags:aare97:135411
    DOI: 10.22004/ag.econ.135411
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/135411/files/fiche001-report008.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.135411?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Alston, Julian M. & Chalfant, James A. & Piggott, Nicholas E., 1998. "A Globally Flexible Model of the Effects of Generic Advertising of Beef and Pork on U.S. Meat Demand," 1998 Annual meeting, August 2-5, Salt Lake City, UT 269838, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

    More about this item

    Keywords

    Demand and Price Analysis;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aare97:135411. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aaresea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.