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Market-Structure and the Empirical Specification of Profit Margins

Research output: Contribution to journalJournal article

Published
<mark>Journal publication date</mark>02/1991
<mark>Journal</mark>Economics Letters
Issue number2
Volume35
Number of pages5
Pages (from-to)227-231
Publication statusPublished
Original languageEnglish

Abstract

We present evidence from a panel of U.K. manufacturing industries to test the sensitivity of the margins-concentration relationship to specification changes in the dependent variable. Instrumental variable estimates demonstrate that a positive association between profit margins and concentration is contingent on how the margin is formulated.