A Simultaneous Model of Cigarette Advertising: Effects on Demand and Industry Response to Public Policy

Barry J Seldon and Khosrow Doroodian

The Review of Economics and Statistics, 1989, vol. 71, issue 4, 673-77

Abstract: A simultaneous demand and advertising system is used to examine the response of aggregate cigarette demand to advertising and the reaction of consumers and industry to government health warnings and media policy during 1952-84. The results indicate that advertising increases demand and that health warnings reduce consumption. The industry reacts to health warnings by increasing its advertising. Copyright 1989 by MIT Press.

Date: 1989
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