Advertising, Intangible Assets, and Unpriced Entertainment

30 Pages Posted: 28 Jul 2005

See all articles by Leonard I. Nakamura

Leonard I. Nakamura

Federal Reserve Banks - Federal Reserve Bank of Philadelphia

Date Written: May 2005

Abstract

This paper addresses 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 undermeasured 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, he argues that it is plausible that two-thirds of advertising expenditure represents unmeasured contributions to output, and the level of real GDP should be increased accordingly.

Keywords: Advertising, Entertainment, Intangible, Measurement

JEL Classification: E01, L82, M37

Suggested Citation

Nakamura, Leonard I., Advertising, Intangible Assets, and Unpriced Entertainment (May 2005). FRB Philadelphia Working Paper No. 05-11. Available at SSRN: https://ssrn.com/abstract=748345 or http://dx.doi.org/10.2139/ssrn.748345

Leonard I. Nakamura (Contact Author)

Federal Reserve Banks - Federal Reserve Bank of Philadelphia ( email )

Ten Independence Mall
Philadelphia, PA 19106-1574
United States
215-574-3804 (Phone)
215-574-4364 (Fax)

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