Marketing technology in macroeconomics

Kenichi Tamegawa

doi:10.1186/2193-1801-1-28

Abstract

In this paper, we incorporate a marketing technology into a dynamic stochastic general equilibrium model by assuming a matching friction for consumption. An improvement in matching can be interpreted as an increase in matching technology, which we call marketing technology because of similar properties. Using a simulation analysis, we confirm that a positive matching technology shock can increase output and consumption.

Highlights

The considerable progress in information technology (IT) since the late 1990s increased the productivity of goods and contributed to the IT boom in the economies of many countries in the 2000s
We show the effects of marketing technology by performing a numerical simulation
Consumption matching friction neutrality How does the consumption matching friction alter responses to a supply or demand shock other than by matching technology relative to a standard real business cycle (RBC) model? In a linearized model, the answer is that the friction does not alter the other shock responses

Summary

Introduction

The considerable progress in information technology (IT) since the late 1990s increased the productivity of goods and contributed to the IT boom in the economies of many countries in the 2000s. IT development is typically expressed as an increase in total factor productivity (TFP). This is a point of view from supply side of the economy. In addition to the supply side effects of IT, we can consider that IT affects the demand side Through web sites such as Amazon.com, for example, the Internet enables us to buy numerous goods instantaneously. Recent developments in mobile phone technology, for example the iPhone, provide opportunities for matching consumers and products. This is reflected in the worldwide increase in Internet users (see Figure 1), which in turn increases opportunities for matching. We limit the scope of marketing technology to that which provides greater

Objectives

Discussion

Conclusion