| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 5060172 | Economics Letters | 2012 | 7 Pages |
Abstract
The collapse of Iceland's financial system in October 2008 is used as a natural experiment to test whether advertising decisions have a forward-looking component. The results show that changes in the volume of advertisements precede changes in investment.
⺠We search for a leading indicator of the financial crisis in Iceland in 2008. ⺠The number of pages in newspapers is used to measure the volume of advertising. ⺠The volume of advertising predicts investment in the run up to the crisis. ⺠Changes in advertising also to lead changes in investment in other countries.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Kari S. Fridriksson, Gylfi Zoega,