@techreport{Rehme2007Advertising,
abstract = {It is sometimes argued that more advertising raises consumption which in turn stimulates output and so economic growth. We test this hypothe- sis using annual German data expressed in terms of GDP for the period 1950-2000. We find that advertising does not Granger-cause growth but Granger-causes consumption. Consumption, in turn, Granger-causes GDP growth. The data imply that the immediate impact of more advertising on consumption is positive. However, the long-run effect is negative. Further- more, the immediate impact of higher consumption on growth is negative. But the long-run effect is positive. These results raise interesting questions for standard theory, political debates and advertising practioners.},
address = {Darmstadt},
author = {G\"{u}nther Rehme and Sara-Frederike Weisser},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {O4; M3; E2; 330; Advertising; Consumption; Economic Growth; Werbung; Gesamtwirtschaftlicher Konsum; Wirtschaftswachstum; Deutschland},
language = {eng},
number = {178},
publisher = {Techn. Univ., Inst. f\"{u}r Volkswirtschaftslehre},
title = {Advertising, consumption and economic growth: an empirical investigation},
type = {Darmstadt discussion papers in economics},
url = {http://hdl.handle.net/10419/32093},
year = {2007}
}
