IDEAS home Printed from https://ideas.repec.org/p/ags/iaaeo6/197877.html
   My bibliography  Save this paper

Advertising Check-Off Programmes

Author

Listed:
  • Chang, Hui-Shung
  • Kinnucan, Henry

Abstract

This paper examines the impact of a change in the advertising tax on prices, output, and welfare. Results show that a supply shift alone (i.e., advertising is ineffective and hence there is no demand shift) will result in higher retail prices, lower farm output, higher retail-farm price ratios, and losses in benefits to society. If the supply shift is accompanied by a demand shift due to effective advertising, the retail price will be higher. Farm output and the retail-farm price ratio, however, will be smaller compared to an isolated supply shift. Given the advertising elasticities found so far in empirical studies (less than 0.10), an increase in producer assessments or check-offs for the purpose of increasing demand through advertising will lead to welfare loss. Research and new product development may be .better alternatives to increasing demand from a social perspective.

Suggested Citation

  • Chang, Hui-Shung & Kinnucan, Henry, 1992. "Advertising Check-Off Programmes," 1992 Occasional Paper Series No. 6 197877, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaaeo6:197877
    DOI: 10.22004/ag.econ.197877
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/197877/files/agecon-occpapers-1992-028_1_.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.197877?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Bruce L. Gardner, 1975. "The Farm-Retail Price Spread in a Competitive Food Industry," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 57(3), pages 399-409.
    2. Marc Nerlove & Frederick V. Waugh, 1961. "Advertising without Supply Control: Some Implications of a Study of the Advertising of Oranges," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 43(4_Part_I), pages 813-837.
    3. Hurst, Susan & Forker, Olan, 1989. "Annotated Bibliography of Generic Commodity Promotion Research," Research Bulletins 183327, Cornell University, Department of Applied Economics and Management.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Henry W. Kinnucan & Øystein Myrland, 2001. "A note on measuring returns to nonprice export promotion," Agribusiness, John Wiley & Sons, Ltd., vol. 17(3), pages 423-433.
    2. Henry W. Kinnucan & Maria Thomas, 1997. "Optimal Media Allocation Decisions For Generic Advertisers," Journal of Agricultural Economics, Wiley Blackwell, vol. 48(1‐3), pages 425-441, January.
    3. Kinnucan, Henry W., 1997. "Middlemen behaviour and generic advertising rents in competitive interrelated industries," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 41(2), pages 1-17.
    4. Holloway, Garth J. & Peyton, L. James & Griffith, Garry R., 2000. "Was the Australian Meat and Live-stock Corporation's advertising efficient?," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 44(1), pages 1-27.
    5. Cranfield, John A.L., 2002. "Optimal Advertising With Traded Raw And Final Goods: The Case Of Variable Proportions Technology," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 27(1), pages 1-18, July.
    6. Li, Chenguang & Sexton, Richard J., 2009. "Impacts of Retailers’ Pricing Strategies for Produce Commodities on Farmer Welfare," 2009 Conference, August 16-22, 2009, Beijing, China 51720, International Association of Agricultural Economists.
    7. Abbott, Malcolm, 2016. "A long-term view of the effectiveness of wool promotion schemes," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 54(3), January.
    8. Kinnucan, Henry W., 1995. "Some Observations on Measuring Returns to Promotion in Vertical Markets," New Methodologies for Commodity Promotion Economics, October 5-6, 1995, Sacramento, California 279625, Regional Research Projects > NECC-63: Research Committee on Commodity Promotion.
    9. Hugo Pedro Boff, 2004. "The Supply Of Perishable Goods," Econometric Society 2004 Latin American Meetings 306, Econometric Society.
    10. Williams, Gary W. & Myers, Lester H., 1982. "The Economic Effectiveness Of Foreign Market Development Programs: The Case Of Soybeans And Soybean Products," 1982 Annual Meeting, August 1-4, Logan, Utah 279211, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    11. Richards, Timothy J. & Patterson, Paul M., 2000. "New Varieties And The Returns To Commodity Promotion: The Case Of Fuji Apples," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 29(1), pages 1-14, April.
    12. A. M. Azzam, 1992. "Testing The Competitiveness Of Food Price Spreads," Journal of Agricultural Economics, Wiley Blackwell, vol. 43(2), pages 248-256, May.
    13. Irz, Xavier & Mazzocchi, Mario & Réquillart, Vincent & Soler, Louis-Georges, 2015. "Research in Food Economics: past trends and new challenges," Revue d'Etudes en Agriculture et Environnement, Editions NecPlus, vol. 96(01), pages 187-237, March.
    14. Kinnucan, Henry W., 1985. "Evaluating Advertising Effectiveness Using Time Series Data," Research on Effectiveness of Agricultural Commodity Promotion, April 9-10, 1985, Arlington, Virginia 279492, Regional Research Projects > NECC-63: Research Committee on Commodity Promotion.
    15. Marsh, John M., 1991. "Derived Demand Elasticities: Marketing Margin Methods Versus An Inverse Demand Model For Choice Beef," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 16(2), pages 1-10, December.
    16. Ronald W. Cotterill, 1998. "Estimation of Cost Pass Through to Michigan Consumers in the ADM Price Fixing Case," Food Marketing Policy Center Research Reports 039, University of Connecticut, Department of Agricultural and Resource Economics, Charles J. Zwick Center for Food and Resource Policy.
    17. Carambas, Maria Cristina D.M., 2005. "Analysis of Marketing Margins in Eco-Labeled Products," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24600, European Association of Agricultural Economists.
    18. Richards, Timothy J. & Patterson, Paul M., 1998. "New Varieties and the Returns to Commodity Promotion: Washington Fuji Apples," Working Papers 28541, Arizona State University, Morrison School of Agribusiness and Resource Management.
    19. Capps, Oral & Seo, Seong-Cheon & Nichols, John P., 1997. "On the Estimation of Advertising Effects for Branded Products: An Application to Spaghetti Sauces," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 29(2), pages 291-302, December.
    20. Griffith, Garry R. & Moore, Walter B., 1991. "Livestock Production Policies And Meat Processing Margins: The Case Of New Zealand, 1967-1988," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 35(1), pages 1-28, April.

    More about this item

    Keywords

    Marketing;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:iaaeo6:197877. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/iaaeeea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.