Scandinavian Working Papers in Economics

HUI Working Papers,
HUI Research

No 5: Revenues as a Proxy for Profits: A Cautionary Note

Sven-Olov Daunfeldt () and Niklas Rudholm ()
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Sven-Olov Daunfeldt: The Swedish Retail Institute (HUI), Postal: Regeringsgatan 60, SE-103 29 Stockholm, Sweden
Niklas Rudholm: The Swedish Retail Institute (HUI), Postal: Regeringsgatan 60, SE-103 29 Stockholm, Sweden

Abstract: In the entry literature, researchers sometimes use revenues as a proxy for profits because this is the only data available. Doing so could seriously bias the results.

Keywords: Entry; wholesale trade; retail trade; negative binomial regression

JEL-codes: L13; L81

19 pages, January 1, 2006

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