Advertising expenditure and aggregate demand for cigarettes in Australia

At present there is virtually no empirical evidence on the effect of total advertising expenditure on the aggregate demand for cigarettes in Australia.

Advertising expenditure and aggregate demand for cigarettes in Australia

Lester Johnson

Macquarie University, NSW, Australia

 

There is virtually no empirical evidence on the effect of total advertising expenditure on the aggregate demand for cigarettes in Australia. Nevertheless, advertising has been banned on television and radio since 1976 and there is some suggestion of a total ban in the future. In this paper, originally published in 1986, results are presented of the estimation of a demand model for cigarettes in Australia, using annual data from 1961/62 to 1982/83. No statistical evidence is found that aggregate advertising has any effect...

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