Television gets you to spend money - Marginal REVOLUTION
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Television gets you to spend money – Marginal REVOLUTION


Especially on cars (and other durable goods):

I compare growth in retail sales between areas with and without local TV service over the unanticipated Federal Communications Commission (FCC) Freeze, which halted the licensing of new TV stations from 1948–52. I find three results that corroborate TV’s long-attributed role in American consumerism. First, during the Freeze, total retail sales in counties with TV access increased by 3–4% more on average than in counties without access. Second, the effect of TV was concentrated in the automobile sector, which alone accounted for a third of the total difference.

Here is the full paper by Woojin Kim, via the excellent Kevin Lewis.

The post Television gets you to spend money appeared first on Marginal REVOLUTION.



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Written by Tyler Cowen

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