ADVERTISING AND AGGREGATE CONSUMPTION: A BAYESIAN DSGE ASSESSMENT

• 成果类型: Article
• 署名作者: Molinari, Benedetto; Turino, Francesco
• 署名单位: Universidad de Malaga; Universitat d'Alacant
• 刊物名称: ECONOMIC JOURNAL
• ISSN/ISSBN: 0013-0133
• DOI: 10.1111/ecoj.12514
• 发表日期: 2018
• 页码: 2106-2130
• 关键词: competition; MODEL

摘要

Aggregate data reveal that in the US, advertising absorbs 2% of GDP. Because the purpose of brand advertising is to foster sales, we ask whether such spending appreciably affects aggregate consumption and economic activity. This question is addressed by developing and estimating a dynamic general equilibrium model in which households' preferences for differentiated goods depend on brand advertising. Estimated results for the US economy indicate that in the long-run, the presence of advertising raises aggregate consumption, investment, and hours worked, eventually fostering overall economic activity. We also find that advertising has a relevant impact on fluctuations in consumption and investment.