Document Type

Article

Publication Date

1-1-2010

Publication Title

Economics Bulletin

Volume

30

Issue Number

3

First Page

2189

Last Page

2196

Abstract

Drawing on Schumpeterian theory, this article presents estimates of a first-order autoregressive model of profit persistence for large US firms, using Economic Value Added (EVA), the popular measure of profits produced by Stern Stewart and Company, and simple (unadjusted) accounting measures from the Compustat database. We hypothesize about the differences we should expect to find between these two sets of estimates, and also provide a fresh normative assessment of the dynamic competitiveness of the US economy.

Comments

This article was published in Economics Bulletin, volume 30, issue 3, and can also be found online at this link.

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