Dataset: profit_ad.dat Source: J.M. Vernon and R.E.M. Nourse (1973). "Profit Rates and Market Structure of Advertising Intensive Firms," The Journal of Industrial Economics, Vol. 22, #1, pp1-20. Description: Regression of firm profits (1963-1968) on several independent variables. Allows for heteroscedastic errors (function of firm size). Dependent Variables (averaged over 1963-1968): PT = (Net income + interest expense)/total assets PE = net income/shareholder equity Independent Variables CR = Weighted Concentration Ratio of firm's product markets (4-firm CR-1966) DCR = Dummy Var for CR >= 50 (not included in dataset, must be added) AS = Weighted average INDUSTRY advertising-to-sales ratio of firm's product markets (1969 data) CAS = Overall 1969 advertising-to-sales ratio of the FIRM GR = Weighted average percent changes in industry sales in the firm's markets DIV2 = Firm's diversification in 2-digit (more broad) industries (1-sum(S^2)) DIV3 = Firm's diversification in 3-digit (less broad) industries (1-sum(S^2)) SIZ = Firms 1968 Total assets ($1M) LRSIZ = 1/ln(SIZ) Variables/Columns Firm 1-25 PT 30-33 PE 38-41 CR 45-49 DCR 57 AS 60-65 CAS 68-73 GR 76-81 DIV2 84-89 DIV3 92-97 SIZ 100-105 LRSIZ 107-113