Denny, KevinKevinDennyVan Reenen, JohnJohnVan Reenen2009-12-152009-12-151993-06199316http://hdl.handle.net/10197/1727Applied Industrial Economics has suffered from the criticism that most of the variables of interest, such as market structure and firm performance are inherently endogenous. We outline the three common approaches to the problem and suggest a fourth which uses panel data. Some simple empirical models of profitability are tested using data on 718 large U.K. companies between 1972 and 1986. [extract]427426 bytesapplication/pdfenProfitabilityPanel dataInstrumental variablesPersistenceL11Industrial organization (Economic theory)Profit--Econometric modelsInstrumental variables (Statistics)Working Paperhttps://creativecommons.org/licenses/by-nc-sa/1.0/