Measuring and Testing Advertising-Induced Rotation in the Demand Curve



Table 1. Decomposition of Advertising’s Effects on the Own-Price Elasticities with Fixed Prices

Model Name
(Model version in parenthesis)

Own - Price Elasticity I

______η______

ln ηi / ln Ai

=Rotation effect - Shift effect

Rotation effect
ln i / ln Ai

Shift effect
αii

Without Interaction____________________________________________________________________________________________________________________________________________

Linear (A)

- cii( pi / qi )

___________________-αii___________________

0

αii

Semi-log (B)

_____________- cii / qi_____________

___________________-αii___________________

0

αii

Double-log (C)

______________- cii______________

0

_________α_________

αii

Rotterdam (D)

- cii / w

Σ^w7αy∙ - αii
____________________]______________________________________


________________________________]__________________________________________

αii

AIDS (E)

-(cii / wi-1)

ciiwα -αii)

i______________________

___________________cii - wi___________________

n

ciiwjα-jj -wiαii

i_________________________

_________________________cii - wi_________________________

V

With interaction________________________________________________________________________________

Interaction-related

Shift-related__________

Linear (F)

-( cii + γiAi)( pi / qi )

YiAi
--—--αii
_______________
cii + YiA_____________________

YiAi

( cii + YiAi)

0

αii

Semi-log (G)

-( cii + γiln Ai )/ qi

------Yi--αii
cii + γi ln Ai

Yi

cii + Yiln Ai

0

αii

Double-log (H)

-( cii+ γiln Ai)

Yi

________________( cii + Yiln Ai)________________

Yi

( cii + Yiln Ai)

αii

αii

Rotterdam (I)

-( cii+ γidln Ai)/ wi

n

------γ------+ wiαii - αii
( cii + γid ln Ai)                    ii

in it                i *           j

Yi

(cii + Yid lnAi )

Σ w,αi
j

αii

AIDS (J)

-((cii + γi lnA1 )/ wi -1)

n

γi + (cii + YilnAi)(wjαij ii)

_____________________________i___________________

n

Yi + Yi lnAi wjαy

___________________i__________

n

cii Σ wiαii - wiαιι

__i_________

αii

____________(cii + Yiln Ai - wi )____________

(cii + YilnAi -wi)

(cii + Yiln Ai - wi )

20



More intriguing information

1. The name is absent
2. Apprenticeships in the UK: from the industrial-relation via market-led and social inclusion models
3. The name is absent
4. The name is absent
5. Disturbing the fiscal theory of the price level: Can it fit the eu-15?
6. The name is absent
7. An Estimated DSGE Model of the Indian Economy.
8. The name is absent
9. Visual Perception of Humanoid Movement
10. Tax Increment Financing for Optimal Open Space Preservation: an Economic Inquiry
11. HEDONIC PRICES IN THE MALTING BARLEY MARKET
12. Herman Melville and the Problem of Evil
13. Micro-strategies of Contextualization Cross-national Transfer of Socially Responsible Investment
14. Spectral density bandwith choice and prewightening in the estimation of heteroskadasticity and autocorrelation consistent covariance matrices in panel data models
15. The name is absent
16. The name is absent
17. The name is absent
18. References
19. Innovation and business performance - a provisional multi-regional analysis
20. Subduing High Inflation in Romania. How to Better Monetary and Exchange Rate Mechanisms?