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Intra-industry Profitability Differences in U.S. Manufacturing, 1953-1983


  • Schmalensee, Richard


Over the period 1953-83, twelve accounting measures of profitability, which are not on average highly correlated, imply measures of the profitability advantage of large firms that move closely together. All twelve measures decline significantly and substantially over this entire period; there is no acceleration in the 1970s. All measures move countercyclically. Together with recent work on the dynamics of the interindustry concentration-profitability relation, these results point to the existence of important procyclical industry-level changes in the strength of the concentration-profitability relation. Copyright 1989 by Blackwell Publishing Ltd.

Suggested Citation

  • Schmalensee, Richard, 1989. "Intra-industry Profitability Differences in U.S. Manufacturing, 1953-1983," Journal of Industrial Economics, Wiley Blackwell, vol. 37(4), pages 337-357, June.
  • Handle: RePEc:bla:jindec:v:37:y:1989:i:4:p:337-57

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    References listed on IDEAS

    1. Richard E. Just & Wen S. Chern, 1980. "Tomatoes, Technology, and Oligopsony," Bell Journal of Economics, The RAND Corporation, vol. 11(2), pages 584-602, Autumn.
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    3. Davidson, Carl & Martin, Lawrence W, 1985. "General Equilibrium Tax Incidence under Imperfect Competition: A Quantity-setting Supergame Analysis," Journal of Political Economy, University of Chicago Press, vol. 93(6), pages 1212-1223, December.
    4. Appelbaum, Elie, 1979. "Testing price taking behavior," Journal of Econometrics, Elsevier, vol. 9(3), pages 283-294, February.
    5. Gollop, Frank M. & Roberts, Mark J., 1979. "Firm interdependence in oligopolistic markets," Journal of Econometrics, Elsevier, vol. 10(3), pages 313-331, August.
    6. Appelbaum, Elie, 1982. "The estimation of the degree of oligopoly power," Journal of Econometrics, Elsevier, vol. 19(2-3), pages 287-299, August.
    7. Lafontaine, Francine & White, Kenneth J., 1986. "Obtaining any Wald statistic you want," Economics Letters, Elsevier, vol. 21(1), pages 35-40.
    8. Robert L. Bishop, 1968. "The Effects of Specific and Ad Valorem Taxes," The Quarterly Journal of Economics, Oxford University Press, vol. 82(2), pages 198-218.
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    Cited by:

    1. Tong, Hui & Wei, Shang-Jin, 2014. "Does trade globalization induce or inhibit corporate transparency? Unbundling the growth potential and product market competition channels," Journal of International Economics, Elsevier, vol. 94(2), pages 358-370.

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