MODELING THE EFFECTS OF GENERIC ADVERTISING ON THE DEMAND FOR FLUID MILK AND CHEESE: A TIME-VARYING PARAMETER APPLICATION

Previous constant-parameter demand models have estimated generic advertising elasticities for cheese to be below that for fluid milk. We relax this assumption, allowing for generic advertising response to vary over time. Cheese advertising elasticities were found below fluid milk up until the mid-1990s; average elasticities since have been similar.