Adstock revisited

Philip Hans Franses

doi:10.1080/00036846.2024.2309463

Adstock revisited

Philip Hans Franses^*

^*Corresponding author for this work

Research output: Contribution to journal › Article › Academic › peer-review

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Abstract

The standard Adstock regression is problematic for at least two reasons. Statistical inference is cumbersome and there is a chance of a spurious relation between sales and advertising. This paper shows that reformulating the equation solves both problems, and the result is that a proper model for Adstock is an unrestricted Koyck model. Maximum Likelihood estimation gives the parameter estimates. An illustration to the illustrious monthly Lydia Pinkham data shows the merits of the method.

Original language	English
Pages (from-to)	882-886
Number of pages	5
Journal	Applied Economics
Volume	57
Issue number	8
Early online date	25 Jan 2024
DOIs	https://doi.org/10.1080/00036846.2024.2309463
Publication status	Published - 15 Mar 2025

Bibliographical note

JEL CLASSIFICATION: M31, M3, C32, C52

Publisher Copyright:
© 2024 The Author(s). Published by Informa UK Limited, trading as Taylor & Francis Group.

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ESE - E&MS

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10.1080/00036846.2024.2309463Licence: CC BY-NC-ND

Adstock revisitedFinal published version, 725 KBLicence: CC BY-NC-ND

Cite this

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Adstock revisited

Abstract

Bibliographical note

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