Advertising investment as a tool for boosting consumption: testing Galbraith's hypothesis for Spain
The recession that most of the world economies have been facing in the last years has caused a great interest in the study of its macroeconomic effects. In this context, a debate has resurged regarding the advertising investment, as for its potential capacity to impel the consumer spending and to im...
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| Format: | Article |
| Language: | English |
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Universidade Federal do Rio de Janeiro
2014-12-01
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| Series: | Revista de Economia Contemporânea |
| Subjects: | |
| Online Access: | http://www.scielo.br/scielo.php?script=sci_arttext&pid=S1415-98482014000300435&lng=en&tlng=en |
| _version_ | 1811209682851725312 |
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| author | Valentín-Alejandro Martínez-Fernández Pablo Castellanos Óscar Juanatey-Boga |
| author_facet | Valentín-Alejandro Martínez-Fernández Pablo Castellanos Óscar Juanatey-Boga |
| author_sort | Valentín-Alejandro Martínez-Fernández |
| collection | DOAJ |
| description | The recession that most of the world economies have been facing in the last years has caused a great interest in the study of its macroeconomic effects. In this context, a debate has resurged regarding the advertising investment, as for its potential capacity to impel the consumer spending and to impact positively on the economic recovery. This idea, sustained in the so-called Galbraith's hypothesis, constitutes the core of this paper, where the main objective is to test that hypothesis by means of an empirical analysis. In this study, we focus on the Spanish case and the data correspond to the period 1976 -2010. A cointegration analysis is carried out, using two different approaches (Engle-Granger test and Gregory-Hansen test, respectively), to determine if there is any relationship between the advertising investment and six macromagnitudes (GDP, National Income, Consumption, Savings and Fixed Capital Formation), as well as the registered unemployment rate. Based on the results obtained, we conclude that Galbraith's hypothesis is not fulfilled for the Spanish case. |
| first_indexed | 2024-04-12T04:43:32Z |
| format | Article |
| id | doaj.art-7f15217b8581487985cedc7536af0af8 |
| institution | Directory Open Access Journal |
| issn | 1980-5527 |
| language | English |
| last_indexed | 2024-04-12T04:43:32Z |
| publishDate | 2014-12-01 |
| publisher | Universidade Federal do Rio de Janeiro |
| record_format | Article |
| series | Revista de Economia Contemporânea |
| spelling | doaj.art-7f15217b8581487985cedc7536af0af82022-12-22T03:47:33ZengUniversidade Federal do Rio de JaneiroRevista de Economia Contemporânea1980-55272014-12-0118343545210.1590/141598481836S1415-98482014000300435Advertising investment as a tool for boosting consumption: testing Galbraith's hypothesis for SpainValentín-Alejandro Martínez-FernándezPablo CastellanosÓscar Juanatey-BogaThe recession that most of the world economies have been facing in the last years has caused a great interest in the study of its macroeconomic effects. In this context, a debate has resurged regarding the advertising investment, as for its potential capacity to impel the consumer spending and to impact positively on the economic recovery. This idea, sustained in the so-called Galbraith's hypothesis, constitutes the core of this paper, where the main objective is to test that hypothesis by means of an empirical analysis. In this study, we focus on the Spanish case and the data correspond to the period 1976 -2010. A cointegration analysis is carried out, using two different approaches (Engle-Granger test and Gregory-Hansen test, respectively), to determine if there is any relationship between the advertising investment and six macromagnitudes (GDP, National Income, Consumption, Savings and Fixed Capital Formation), as well as the registered unemployment rate. Based on the results obtained, we conclude that Galbraith's hypothesis is not fulfilled for the Spanish case.http://www.scielo.br/scielo.php?script=sci_arttext&pid=S1415-98482014000300435&lng=en&tlng=enInvestimento em publicidadehipótese de Galbraithefeitos macroeconômicosdesemprego |
| spellingShingle | Valentín-Alejandro Martínez-Fernández Pablo Castellanos Óscar Juanatey-Boga Advertising investment as a tool for boosting consumption: testing Galbraith's hypothesis for Spain Revista de Economia Contemporânea Investimento em publicidade hipótese de Galbraith efeitos macroeconômicos desemprego |
| title | Advertising investment as a tool for boosting consumption: testing Galbraith's hypothesis for Spain |
| title_full | Advertising investment as a tool for boosting consumption: testing Galbraith's hypothesis for Spain |
| title_fullStr | Advertising investment as a tool for boosting consumption: testing Galbraith's hypothesis for Spain |
| title_full_unstemmed | Advertising investment as a tool for boosting consumption: testing Galbraith's hypothesis for Spain |
| title_short | Advertising investment as a tool for boosting consumption: testing Galbraith's hypothesis for Spain |
| title_sort | advertising investment as a tool for boosting consumption testing galbraith s hypothesis for spain |
| topic | Investimento em publicidade hipótese de Galbraith efeitos macroeconômicos desemprego |
| url | http://www.scielo.br/scielo.php?script=sci_arttext&pid=S1415-98482014000300435&lng=en&tlng=en |
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