Role of Advertising Expenditure as an Influential Non-traditional Regressor in Russia’s Money Demand Specification
| Autor: | Mohammand Affendy Arip, Chin-Hong Puah, Mei-Teing Chong, Lee-Chea Hiew |
|---|---|
| Rok vydání: | 2019 |
| Předmět: |
Distributed lag
010308 nuclear & particles physics 050204 development studies 05 social sciences Economics Econometrics and Finance (miscellaneous) Monetary policy Advertising 01 natural sciences Supply and demand Demand curve Accounting 0502 economics and business 0103 physical sciences Search cost Economics Demand for money Household final consumption expenditure Business and International Management Consumer behaviour |
| Zdroj: | International Journal of Financial Research. 10:232 |
| ISSN: | 1923-4031 1923-4023 |
| DOI: | 10.5430/ijfr.v10n6p232 |
| Popis: | The term advertising refers to the strategy that affects consumer behaviour and induces higher household final consumption expenditure (HFCE), which is associated with incredibly demanding for money upon transaction usages and a reduction in search costs. The model of money demand that is stable, reliable and well defined is crucial for central banks in formulating their monetary policy to minimise the gap between the supply and demand of money. Hence, this paper examines the influence of expenditure in advertising (ADEX) towards the level of demand for money among the households in Russia. An approach known as Autoregressive distributed lag (ARDL) is opted to model the money demand function (MDF) of Russia and nine years of quarterly data from 2008 to 2016 have been used in the estimation. Empirical findings reveal that ADEX not only positively influences the Russian’s money demand in long term, its MDF also becomes more superior when the ADEX has been added. As such, this study suggests that ADEX can be taken into account as a non-traditional explanatory variable in the formulation of a stable and well-specified MDF for the case in Russia. |
| Databáze: | OpenAIRE |
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