Working Papers Department of Economics University of Vienna Tracing the Dynamics of Competition: Evidence from Company Profits
نویسندگان
چکیده
This paper proposes a simple approach to analyzing profit dynamics which allows for time-varying persistence of profits. The time series model is a simple autoregressive process where the dynamics of the persistence parameter follow an autoregressive or random walk process. Using the longest time series available on profits for six US firms (Archer-Daniels-Midland , Avon, Coca Cola, Johnson & Johnson, WHX Corporation and Wrigley), we analyze the dynamics of profit persistence for the second half of the twentieth century. JEL classification: L00; C22.
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