Estimating Dynamic Relationships between Pork Advertising and Revenues

Jeffrey Hyde and Kenneth Foster

Review of Agricultural Economics, 2003, vol. 25, issue 2, 279-293

Abstract: This study provides a long-run analysis of the impacts of brand and generic advertising on pork revenues. The existence of a feedback relationship between pork revenues and pork advertising is investigated. The results suggest that a short-run feedback relationship exists between total pork advertising and revenues, but not for revenues and generic pork advertising. Long-run analysis shows that revenues significantly affect both advertising measures. However, no evidence of feedback relationships was found in the long run. Results shed light on the nature of strategic responses by pork advertisers to changes in advertising by beef and poultry. Specifically, the results provide evidence that pork advertisers are accommodating to beef's changes, but respond competitively to poultry's.

Date: 2003
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