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This paper examines several approaches to introduce advertising in systems of demand equations. Advertising is included in the Rotterdam model using an unrestricted specification and three restricted specifications - advertising affects demand alternatively through (1) marginal utilities as in...
Persistent link: https://www.econbiz.de/10005026720
The differential demand system or Rotterdam model is extended to include lagged consumption through translation parameters, providing an alternative to simply adding constant terms to the model to allow for trends in consumption and changes in tastes. Application of the model to four broadly...
Persistent link: https://www.econbiz.de/10005026743