IDENTIFYING THE EFFECTS OF GENERIC ADVERTISING ON THE HOUSEHOLD DEMAND FOR FLUID MILK AND CHEESE: A TWO-STEP PANEL DATA APPROACH

A two-step model with sample selection is applied to panel data of U.S. households to estimate at-home demand for fluid milk and cheese, incorporating advertising expenditures. The model consistently accounts for sample-selection bias, unobserved household heterogeneity, and temporal correlation. Generic advertising programs for fluid milk and cheese were effective at increasing conditional purchase quantities, with very little effect on the probability of purchase. In contrast to aggregate studies, the long-run generic advertising elasticities for cheese were larger than for those of fluid milk. Advertising response varied considerably across sub-product classes, while branded advertising expenditures were largely insignificant.


Issue Date:
2002-07
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/31088
Published in:
Journal of Agricultural and Resource Economics, Volume 27, Number 1
Page range:
165-186
Total Pages:
22




 Record created 2017-04-01, last modified 2017-08-16

Fulltext:
Download fulltext
PDF

Rate this document:

Rate this document:
1
2
3
 
(Not yet reviewed)