Demand Response to Advertising in the Australian Meat Industry

The implications of model specification choices for the measurement of demand response to advertising are examined using Australian data. Single-equation models versus complete systems and alternative corrections for autocorrelation are evaluated. Competing advertising efforts by two producer bodies are included. Across all specifications, the evidence on advertising effects is fairly consistent. In the preferred model, the only statistically significant effects of advertising are for Australian Meat and Livestock Corporation advertising (of beef and lamb) on the demand for beef (positive) and on the demand for chicken (negative). Australian Pork Corporation advertising does not have any statistically significant effects. Copyright 1996, Oxford University Press.