ADVERTISING AND THE UNITED-STATES MARKET DEMAND FOR BEER

The US per capita market demand for beer is empirically estimated to determine the effect of advertising on the demand for beer. The empirical results indicate that the most important determinants of demand are the price of beer, the price of substitutes, demographic factors, and a light beer dummy variable. The positive effects of income and lagged consumption appear to be small. Although many have argued that advertising promotes beer consumption, the empirical results of this study do not support this hypothesis.