Advertising’s Elusive Economic Rationale: is there a case for limiting tax relief?

Ciaran Driver

MPRA Paper from University Library of Munich, Germany

Abstract: Advertising and its effects have been debated for well over a century. In the last few decades a generally sceptical view of the benefits of advertising has been overturned by a series of academic advances in economics that detail a variety of ways in which advertising may affect the economy and society. This academic work has however been paralleled by a growing popular and political opposition to advertising and its social effects. In this article, the positive economic case for advertising is challenged by an assessment of the main channels of its influence and by a review of the associated empirical findings on its economic and wider impact. A policy response of limiting the tax deductibility of business advertising is explored.

Keywords: Advertising; Policy; Economic Theory; Industrial Organization; Business Ethics (search for similar items in EconPapers)
JEL-codes: H2 H25 K2 L4 L5 M0 (search for similar items in EconPapers)
Date: 2015-01-01
New Economics Papers: this item is included in nep-mkt and nep-pbe
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:68790

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