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Estimating Asymmetric Advertising Response: An Application to U.S. Nonalcoholic Beverage Demand AgEcon
Zheng, Yuqing; Kaiser, Harry M..
We propose a regime-switching model that allows demand to respond asymmetrically to upward and downward advertising changes. With the introduction of a smooth transition function, the model features smooth rather than abrupt parameter changes between regimes. We apply the model to nonalcoholic beverage data in the United States for 1974 through 2005 to investigate asymmetric advertising response. Results indicate that a decrease in milk advertising had a more profound impact on milk demand than an increase did. An increase in milk advertising had no impact on milk demand, but a decrease could have an own-advertising elasticity up to 0.049.
Tipo: Journal Article Palavras-chave: Asymmetric advertising response; Demand system; Negative asymmetry; Nonalcoholic beverage demand; Positive asymmetry; Regime switching; Smooth transition function; Agribusiness; Demand and Price Analysis; Food Consumption/Nutrition/Food Safety; C32; M37; Q11.
Ano: 2008 URL: http://purl.umn.edu/47262
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Demand Interrelationships of At-Home Nonalcoholic Beverage Consumption in the United States AgEcon
Dharmasena, Senarath; Capps, Oral, Jr..
In this study we modeled demand interrelationships of at-home nonalcoholic beverage consumption in the United States using a unique data set developed using Nielsen HomeScan panel data of household purchases of nonalcoholic beverages over the period January 1998 through December 2003. We used 72 monthly observations of expenditure shares, real prices and real per capita expenditures of 10 unique categories of nonalcoholic beverages in a full-blown AIDS model with an adjustment for seasonal (quarterly) variability in data. Compared to similar studies done in the past, our study used a rich delineation of nonalcoholic beverage categories, and in particular introduced isotonics for the first time. Furthermore, our study provided more information about...
Tipo: Conference Paper or Presentation Palavras-chave: Nonalcoholic beverage demand; AIDS model; Nielsen HomeScan data; Agribusiness; Consumer/Household Economics; Demand and Price Analysis; Food Consumption/Nutrition/Food Safety; D11; D12.
Ano: 2009 URL: http://purl.umn.edu/49443
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