Advertising, Intangible Assets, And Unpriced Entertainment

Topics:
Internet Advertising
Tags:
Advertisement,
Asset,
Entertainment,
Federal Reserve Bank Of Philadelphia
Source:
Federal Reserve Bank of Philadelphia

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Overview: This paper explains two aspects of advertising: its role in supporting entertainment and news, and its role as an investment. The author argues that in both roles advertising's contribution to output is being under measured in the national income accounts. In some cases one unit of nominal advertising input should be counted as two units of real output. In rough orders of magnitude, the author argues that it is plausible that two-thirds of advertising expenditure represents unmeasured contributions to output, and the level of real Gross Domestic Product (GDP) should be increased accordingly.

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Format: PDF | Size: 286KB | Date: May 2005 | Pages: 30

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