Profits in the Long Run

@article{Forbes1986ProfitsIT,
  title={Profits in the Long Run},
  author={Kevin F. Forbes and Dennis C. Mueller},
  journal={Southern Economic Journal},
  year={1986},
  volume={54},
  pages={242}
}
Profits in the Long Run asks two questions: Are there persistent differences in profitability across firms? If so, what accounts for them? This book answers these questions using data for the 1000 largest US manufacturing firms in 1950 and 1972. It finds that there are persistent differences in profitability and market power across large US companies. Companies with persistently high profits are found to have high market shares and sell differentiated products. Mergers do not result in… 
Competitive Profits in the Long Run
Profit rates differ across industries. Explanations have often relied on static models of imperfect competition. This paper develops a dynamic model of perfect competition to demonstrate that
The Convergence of Profits in the Long Run: Inter-firm and Inter-industry Comparisons
This paper considers the extent to which the short-run dynamic behavior and long-run equilibrium levels of profitability differ among firms within the same industry. Movements in profits are modeled
Testing for Persistence of Profits’ Differences Across Firms
Abstract We review the logic and implications underlying both static and dynamic models of competition, and associated tests of competitive effectiveness. Complications arising due to innovation,
Persistence of firm-level profitability in Turkey
The dynamics of company profits for 172 of the largest manufacturing firms in Turkey are studied. A time-series analysis is used to estimate the long-run projected profits and firm-specific speed of
The durability of information, market efficiency, and the size of firms
The authors analyze a search-theoretic framework in which consumers buy the product repeatedly and firms' costs vary over time. They show the cross-sectional correlation between profits and firm
Persistence of firm-level profitability in Turkey 617
The dynamics of company profits for 172 of the largest manufacturing firms in Turkey are studied. A time-series analysis is used to estimate the long-run projected profits and firm-specific speed of
Forecasting Profitability, Earnings, and Corporate Taxes: Evidence from UK Companies
This paper follows the Fama-MacBeth (1973) methodology to test the hypothesis that, under competition, profitability reverts to its mean and that, like profitability, earnings are also predictable.
Profit Rates and Intangible Capital
A central question in industrial organization is why profit rates differ so dramatically across firms and industries. One of the many explanations offered for this phenomenon is the failure of
Mueller's Profits in the Long Run
Mueller uses a measure of persistent, or long-run, interfirm differences in profitability, obtained by estimating a separate time-series model for each firm, to reexamine this question. His results
...
...