The Persistence of Profits in the Long Run: A New Approach

John R. Cable, Richard Henry George Jackson

Research output: Contribution to journalArticlepeer-review

28 Citations (SciVal)


We present a trend-based alternative to the standard first-order autoregression model in persistence of profits studies. This is motivated by reservations over the interpretation of the standard model, and rests on a different concept of dynamic competition. A nine-category taxonomy of long-run persistence stereotypes is developed. Structural time series estimates are presented for a sample of UK companies. We find the null of long run competitive equilibrium not rejected in nearly a third of cases, but non-eroding persistence to be present in around 60%.
Original languageEnglish
Pages (from-to)229-244
Number of pages16
JournalInternational Journal of the Economics of Business
Issue number2
Publication statusPublished - 31 Dec 2008


  • Profit persistence
  • Competition
  • Structural Time Series


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