Investigating the advertising-sales relationship in the Lydia Pinkham data: a bootstrap approach

Jae Hoon Kim ()

Applied Economics, 2005, vol. 37, issue 3, pages 347-354

Abstract: The dynamic relationship between advertising and sales in the annual Lydia Pinkham data is re-evaluated. Past studies have found a feedback system, although one-way causality from advertising to sales is expected. The bootstrap method is used in this paper as an alternative to the asymptotic method exclusively adopted by past studies. The impulse response analysis based on bivariate autoregressive (AR) model is conducted. Bootstrap-after-bootstrap confidence intervals on impulse responses provide evidence that sales do not cause advertising, contrary to the findings of past studies. Comparison of bootstrap-after-bootstrap prediction intervals calculated from univariate and bivariate AR models further supports this finding. Overall, this paper finds evidence of one-way causality from advertising to sales.

Date: 2005
View list of references

Downloads: (external link)
http://taylorandfrancis.metapress.com/link.asp?tar ... &id=X5N5BRW8WEQEB4HF (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Ordering information: This journal article can be ordered from
http://www.tandf.co.uk/journals/subscription.html

Access Statistics for this article

Applied Economics is edited by Mark Taylor

More articles in Applied Economics from Taylor and Francis Journals
Series data maintained by Christopher F. Baum ().