Causality between advertising and sales: new evidence from cointegration

Junsoo Lee (), B. S. Shin and In Chung

Applied Economics Letters, 1996, vol. 3, issue 5, 299-301

Abstract: It is puzzling that previous studies have found causality only in one direction from sales to advertising, but not the reverse. Employing the sequential causality tests of Toda Phillips (1993), the casual relationship between advertising and sales appears to run in both directions. This finding provides evidence that conventional causality tests can be misleading.

Date: 1996
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DOI: 10.1080/135048596356393

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