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Advertising as a predictor of investment

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  • Fridriksson, Kari S.
  • Zoega, Gylfi

Abstract

The collapse of Iceland’s financial system in October 2008 is used as a natural experiment to test whether advertising decisions have a forward-looking component. The results show that changes in the volume of advertisements precede changes in investment.

Suggested Citation

  • Fridriksson, Kari S. & Zoega, Gylfi, 2012. "Advertising as a predictor of investment," Economics Letters, Elsevier, vol. 116(1), pages 60-66.
    • Handle: RePEc:eee:ecolet:v:116:y:2012:i:1:p:60-66
    DOI: 10.1016/j.econlet.2011.12.079
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    References listed on IDEAS

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    Cited by:

    1. Kosei Fukuda, 2015. "An Investigation of Causality between Advertising and Operating Activity: Macro and Micro Evidence from Japan," American Journal of Economics and Business Administration, Science Publications, vol. 7(1), pages 23-32, May.

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    More about this item

    Keywords

    Advertising; Customer markets; Investment; Financial crises;
    All these keywords.

    JEL classification:

    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles

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