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Beyond the Principle of Relative Constancy: Determinants of Consumer Mass Media Expenditures in Belgium

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  • Michel Dupagne

Abstract

This article goes beyond the principle of relative constancy (PRC) by testing 2 new models of consumer mass media spending using 1953-1991 Belgian data. Unlike traditional PRC models, which have focused exclusively on the long-term relationship between income and mass media spending, these 2 models contain additional regressors (price, population, unemployment, and interest rate) in current (Model 1) and lagged (Model 2) form. Time-series regression analyses were performed to determine which variables significantly predict changes in consumer mass media expenditures. Model 1 regressions revealed that price and population were better predictors of mass media expenditures than income, stressing the importance of developing models of consumer mass media spending that go beyond a simple mass media expenditures-income relation. Model 2 regressions showed that lagged variables played an important role in explaining changes in mass media expenditures, indicating the need for incorporating lags in future mass media spending work.

Suggested Citation

  • Michel Dupagne, 1997. "Beyond the Principle of Relative Constancy: Determinants of Consumer Mass Media Expenditures in Belgium," Journal of Media Economics, Taylor & Francis Journals, vol. 10(2), pages 3-19.
    • Handle: RePEc:taf:jmedec:v:10:y:1997:i:2:p:3-19
    DOI: 10.1207/s15327736me1002_1
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    Cited by:

    1. Kwak, Kyu Tae & Lee, Seung Yeop & Ham, Minjeong & Lee, Sang Woo, 2021. "The effects of internet proliferation on search engine and over-the-top service markets," Telecommunications Policy, Elsevier, vol. 45(8).
    2. Ji, Sung Wook & Choi, Young-jun & Ryu, Min Ho, 2016. "The economic effects of domestic search engines on the development of the online advertising market," Telecommunications Policy, Elsevier, vol. 40(10), pages 982-995.

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