The Impact of Pork Advertising on US Meat Demand in the Presence of Competing Beef Advertising and Food Safety Events

We examine the effects of domestic advertising and promotion expenditures on meat demand, extending previous efforts in several areas, including the use of more recent data, employing a complete demand system and simultaneously measuring the impacts of generic pork and beef advertising and food safety information on the demand for beef, pork, and poultry. Using the Generalized Almost Ideal Demand System (GAIDS), own- and cross- beef and pork advertising and own- and cross- beef, pork, and poultry food safety effects are measured jointly and consistently. To allow for a more complex dynamic response of advertising and food safety effects, the flexible distributed lag technique of Mitchell and Speaker (1986) is employed. The coefficients on pork advertising in the pork and poultry equations are highly significant. The coefficients on beef advertising are only statistically significantly different from zero in the poultry equation indicating the primary impact from these efforts is a cross-commodity effect. To investigate the economic significance of these effects, elasticities for price, expenditure, food safety and advertising are calculated and compared. Consistent with previous work we find the impacts of advertising and food safety effects to be economically small compared with price and expenditure effects.

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 Record created 2017-04-01, last modified 2020-10-28

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