An economic analysis of generic egg advertising in California, 1985–1995

✍ Scribed by Todd M. Schmit; J. Carlos Reberte; Harry M. Kaiser

• Publisher: John Wiley and Sons
• Year: 1997
• Tongue: English
• Weight: 514 KB
• Volume: 13
• Category: Article
• ISSN: 0742-4477
• DOI: 10.1002/(sici)1520-6297(199707/08)13:4<365::aid-agr2>3.0.co;2-x

✦ Synopsis

A supply and demand econometric model of the California egg industry was estimated to evaluate the impact of generic egg advertising on producer prices and returns from 1985 to 1995. Econometric estimation indicated advertising had a positive impact on producer prices and net profits. The model was simulated with existing advertising expenditure levels, and with expenditures 1% higher than actual levels. A 1% increase in advertising expenditures resulted in an average 0.13% increase in producer prices and a marginal rate of return to advertising of 6.