Measuring the contribution of advertising to growth in demand: an econometric-accounting framework

This paper, first published in 1989, attempts to explain, with the aid of an estimated econometric model of alcoholic drink demand, why there have occurred over the past few decades marked differences in the growth rates of consumption of beer, spirits and wine in the United Kingdom.

Measuring the contribution of advertising to growth in demand: an econometric-accounting framework

Martyn DuffyUniversity of Manchester Institute of Science and Technology, Manchester, UK

INTRODUCTION

The total market demand for alcoholic drinks in the United Kingdom has expanded, of course, quite significantly over recent decades. Real per capita expenditure on these products, for example, rose by 66 per cent between 1963 and 1983. However, growth rates differed a great deal across product categories in this sector: beer consumption per capita rose by 33 per cent over the same period, spirits by 89 per cent and wine by 221 per cent....

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