Title

Advertising Expenditures and the Macroeconomy: Some Further Evidence

Document Type

Article

Language

eng

Format of Original

14 p.

Publication Date

1994

Publisher

World Advertising Research Center

Source Publication

International Journal of Advertising

Source ISSN

0265-0487

Abstract

This article reinvestigates the relationship between advertising expenditures and various macro-variables using aggregate data from the United Kingdom. The analysis is based on the recently developed cointegration and causality approach. Unlike Galbraith's 1967 findings, the results fail to show evidence of any relationship between advertising activity and the level of national income, disposable income, and personal consumption expenditures. However, a strong uni-directional causality exists from advertising activity to the unemployment rate. This 'article raises concern about some fundamental issues in the advertising literature, and introduces a new and powerful estimation technique.

Comments

International Journal of Advertising, Vol. 13, No. 1 (1994): 1-14. Permalink.