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Advertising, intangible assets, and unpriced entertainment

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  • Leonard I. Nakamura

Abstract

This paper addresses two aspects of advertising: its role in supporting entertainment and news, and its role as an investment. The author argues that in both roles advertising?s contribution to output is being undermeasured in the national income accounts. In some cases one unit of nominal advertising input should be counted as two units of real output. In rough orders of magnitude, he argues that it is plausible that two-thirds of advertising expenditure represents unmeasured contributions to output, and the level of real GDP should be increased accordingly.

Suggested Citation

  • Leonard I. Nakamura, 2005. "Advertising, intangible assets, and unpriced entertainment," Working Papers 05-11, Federal Reserve Bank of Philadelphia.
    • Handle: RePEc:fip:fedpwp:05-11
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    References listed on IDEAS

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    Cited by:

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    2. Carol A. Corrado & Janet X. Hao, 2014. "Brands As Productive Assets: Concepts, Measurement, and Global Trends," WIPO Economic Research Working Papers 13, World Intellectual Property Organization - Economics and Statistics Division.

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