Advertising expenditure and consumer prices
This paper studies the effect of a change in the marginal costs of advertising on advertising expenditures of firms and on consumer prices. I make use of a policy change in Austria, that involved an increase of the taxation of advertising in parts of the country, and a simultaneous decrease in other...
Saved in:
| Main Author: | |
|---|---|
| Format: | Article (Journal) |
| Language: | English |
| Published: |
2 May 2013
|
| In: |
International journal of industrial organization
Year: 2013, Volume: 31, Issue: 4, Pages: 331-341 |
| ISSN: | 0167-7187 |
| DOI: | 10.1016/j.ijindorg.2013.05.001 |
| Online Access: | Verlag, lizenzpflichtig, Volltext: https://doi.org/10.1016/j.ijindorg.2013.05.001 Verlag, lizenzpflichtig, Volltext: https://www.sciencedirect.com/science/article/pii/S0167718713000465 
|
| Author Notes: | Ferdinand Rauch |
| Summary: | This paper studies the effect of a change in the marginal costs of advertising on advertising expenditures of firms and on consumer prices. I make use of a policy change in Austria, that involved an increase of the taxation of advertising in parts of the country, and a simultaneous decrease in other parts. I show that advertising expenditures of firms move quickly in the opposite direction of the marginal costs of advertising. Consumer prices increase with advertising in some industries, and decrease in others. This effect correlates with informational differences in advertisements across industries. |
|---|---|
| Item Description: | Gesehen am 14.03.2023 |
| Physical Description: | Online Resource |
| ISSN: | 0167-7187 |
| DOI: | 10.1016/j.ijindorg.2013.05.001 |