1. The Geometric Distributed-Lag Model Like research and development, advertising is a risk-taking investment. The economic rationale is straightforward: a campaign launched in period t builds brand awareness and consumer loyalty that generate revenue and operating profit in the current and subsequent periods, with diminishing intensity. The canonical theoretical foundation is Nerlove and Arrow’s (1962) … Continue reading The Advertising Spillover Model: Koyck Distributed Lags, Annual Data, and Compustat Evidence