Advertising and Alcoholic Drink Demand in the UK: Some Further Rotterdam Model Estimates

Publisher Website
Google Scholar
Abstract
In two recent papers Duffy (1989) and Selvanathan (1989) present estimates of the effect of advertising on alcoholic drink demand in the UK. Although the reported estimates of the advertising elasticities are very small, it might be thought that this could be a result of certain deficiencies in the two studies. For example, annual data are used by both authors and this may be the least suitable frequency at which to detect advertising effects. In this article we review the effects upon re-estimates of the advertising elasticities of changes in various implicit assumptions underlying the Duffy-Selvanathan studies. In this sensitivity analysis we find that the results obtained cast even greater doubts than ever held before upon the view that the marked expansion in alcoholic drink consumption since World War II owes anything at all to total drink advertising.

This publication has 10 references indexed in Scilit: