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The Paternity of an Index
... The finding indicates that 58.72% of rural households in study area did not diversify cropping systems. Further, using the Hirschman and Albert (1964) formula, the study found that the average CDI of sampled households is 41.28%. This implies that the cropping system is less diverse. ...
... Herfindahl Index (HI): As proposed by Orris C. Herfindahl and Albert O.Hirschman (1964) "to quantify the amount of competition in a given industry where the market shares are expressed as fractions between 0 and 1". The method was applied to measure the extent of crop diversification for those farmers who diversified their crops. ...
... In practice, the concentration ratio is commonly quantified for three, five or ten strongest companies in the industry (quantification of indicators CR3, CR5 and CR10). In some other studies, authors prefer indicators CR4 and CR8 quantified for four and eight strongest subjects [13,17,18]. ...
... The similar concept (sum of squared market shares), however is known since 1940 when A. O. Hirshmann executed a trade study. Hirschmann in his paper suggests that original idea of index belongs to him [13]. Therefore, in the literature we can find concepts of Herfindahl index or Hirchmann-Herfindahl index, but both of them represent the same indicator. ...
Bicycle industry has recorded significant boom recently, mainly as a consequence of global pandemic situation, but also as a result of green policies of countries. The popularity of cycling is on its all-time high, which also transferred to rising sales of bicycles worldwide. This paper evaluates current situation of bicycle industry in Slovak republic, mainly with the objection on performance of Slovak bicycle producers. With use of appropriate indicators, the paper aims to assess the rate of competitiveness among Slovak bicycle producers. For this purpose, relevant indicators as market share, concentration ratio CR3 , CR5, and Herfindahl index are calculated and evaluated. The aim of this paper is to analyze financial results of Slovak bicycle industry producers, then measure the degree of concentration of whole industry in order to explain industry competitiveness in context of Slovak economy.
... Simpson (1949) proposes the index as a measure of species diversity in an ecosystem. Herfindahl (1950) and Hirschman (1964) use the index as a measure of industrial concentration. The formula for the interaction index is (2) The minimum value is zero when the entire population is concentrated in a single group. ...
Stable integration has been investigated by classifying census tracts as integrated or not, stable or not. This paper avoids such arbitrary categorization by developing an index of stable diversity that measures the degree to which a tract is diverse and stable. Measures of stable diversity for 56 large urban areas from 1990 to 2020 show wide variation but substantial increases in mean stable integration for the census tracts in these areas. Levels of stable diversity for the individual urban areas likewise increase and are greater for areas in the West. Faster growing areas are more diverse, and the percent and change in population white, black, Latino, and Asian all significantly affect diversity and the change in diversity. A measure of stable diversity between whites and blacks shows levels to be higher in tracts with more Latinos and Asians, whose presence appears to reduce pressure for racial change.
... Conventionally, the concentration ratio is determined for the top market players, usually the top three, five, or ten firms, known as CR3, CR5, and CR10, respectively. Some research also considers the CR4 and CR8 indices, which account for the four and eight largest market players, respectively (Herfindahl, 1950;Hirschmann, 1964;Rhoades, 1993;Nauenberg et al., 1997). In this study, the concentration ratio is presented in percentage terms to enhance the clarity of interpretation and maintain consistency in measurement. ...
This research delves into the concentration trends within Slovakia's media, culture, and publishing sector, scrutinizing their effects on the competitive nature of businesses in this field. By employing pivotal indices such as market share, concentration ratios, and the Herfindahl index, the study delves into the financial dynamics of companies in this sector, evaluating the degree of industry concentration to gauge its competitive stance in the Slovak economic area. The methodological approach encompasses mathematical and statistical evaluations, data processing and the deployment of advanced concentration measures. These methods are key to measuring essential factors that capture the competitive environment of the sector, with a special focus on media, culture, and publishing. The procedure entails an analysis of market shares of the entities, followed by the computation of concentration ratios that reflect the leading company market influence. The Herfindahl index is utilized as the aggregate indicator of market concentration. Ultimately, this paper seeks to deepen the understanding of the competitive dynamics within Slovakia's media, culture, and publishing sector, providing valuable insights for stakeholders and policy designers, and highlighting its importance within the larger economic spectrum. The distilled insights from this study encourage further contemplation on the sector strategic importance within Slovakia overall economic structure .
... Customarily, the concentration ratio is computed for the upper echelons of industry competitors, typically the three, five, or ten most formidable entities (manifested as indicators CR3, CR5, and CR10). However, certain scholarly inquiries advocate for the CR4 and CR8 indices, representing the four and eight most dominant market participants, respectively (Herfindahl, 1950;Hirschmann, 1964;Rhoades, 1993;Nauenberg et al., 1997). For the purposes of this investigation, the concentration ratio is articulated in terms of its percentage composition, enhancing interpretative lucidity and metric consistency. ...
This study evaluates the concentration dynamics within the Slovak advertising industry, exploring its implications for business competitiveness within the sector. Utilizing critical indices such as market share, concentration ratios and the Herfindahl index, the research aims to dissect the financial performance of Slovak advertising firms, assessing the industry's overall concentration to comprehend its competitive edge in Slovakia's economic landscape. The methodology integrates mathematical and statistical analyses, data manipulation via MS Excel, and the application of specialized concentration metrics. These techniques are instrumental in quantifying key parameters that reflect the industry's competitive milieu, particularly within the advertising sector. The process involves examining enterprises' market shares, followed by calculating the concentration ratios based on the dominant firms' market presence. The Herfindahl index, a measure of market concentration, serves as the composite metric. In essence , this paper strives to enhance understanding of Slovakia's advertising sector, offering insights into its economic positioning. By delineating market concentration contours and competitive scenarios, the study presents valuable knowledge for stakeholders and policymakers, underscoring the sector's significance in the broader economic context. This condensed perspective aims to prompt further consideration regarding the industry's strategic role in Slovakia's comprehensive economic framework.
... Simpson (1949) proposes the index as a measure of species diversity in an ecosystem. Herfindahl (1950) and Hirschman (1964) use the index as a measure of industrial concentration. The formula for the interaction index is (2) The minimum value is zero when the entire population is concentrated in a single group. ...
The shares of the population of census tracts white, black, Latino, and Asian are used to calculate a measure of neighborhood racial and ethnic diversity for the tracts in 56 large urban areas from 1980 to 2020. Diversity has increased dramatically over the period, with about three-quarters of all tracts increasing in each decade. Multilevel models are used to evaluate the association of tract and urban area characteristics with the change in tract diversity from 1980 to 1990 and from 2010 to 2020. Tract characteristics account for a much larger share of the variation in change in diversity than urban area characteristics. The change in the tract percent white is negatively related to diversity change while the percent white is positively related. For the other three groups the directions of the relationships are reversed. Tract diversity at the start of the period is negatively related to change in diversity (more opportunity for increase?) while urban area diversity is positively related (greater tolerance for diversity?). Population growth is positively and significantly related to diversity change, but the effect is smaller.
... which is known in Political Sciences as the Laakso-Taagepera effective number of parties [9], and in Ecology as the inverse Simpson index -the Simpson index being defined as H = q i=1 c i n 2 = 1 E [11]. H is also known in Economics as the Herfindahl-Hirschman Index (HHI) [14], where the fractions of unit c i n represent e.g. size of firms in an industrial sector, or market shares of a certain product. ...
Diversity indices of quadratic type, such as fractionalization and Simpson index, are measures of heterogeneity in a population. Even though they are univariate, they have an intrinsic bivariate interpretation as encounters among the elements of the population. In the paper it is shown that this leads naturally to associate populations to weakly balanced signed networks. In particular, the frustration of such signed networks is shown to be related to fractionalization by a closed-form expression. This expression allows to simplify drastically the calculation of frustration for weakly balanced signed graphs.
... Simpson (1949) proposed the index as a measure of species diversity in an ecosystem. Herfindahl (1950) and Hirschman (1964) used the index as a measure of industrial concentration. The formula for the interaction index is (2) The minimum value is zero when the entire population is concentrated in a single group and the maximum is reached with equal proportions, which depends on the number of groups. ...
... UNCTAD classifies Standard International Trade Classification SITC (Rev 3) products into mainly (1) raw material (2) intermediate 3) consumer goods 4) capital Goods. The study applies the Hirschman Index (1945, 1964 which is widely used to measure trade concentration in the trade basket. ...
The paper tries to examines India’s merchandise bilateral trade with all 55 African countries in the continent
at HS-06-digit level during 2011 to 2020. To inspect its composition, the study grouped 55 countries in five
sub-regions viz; East Africa, West Africa, South Africa, North Africa and Central Africa. The Study finds
India’s merchandise trade with all African regions showcased sluggish growth during the studied period.
India is experiencing a decent in exports to its dominant and traditional destination markets from the region.
East Africa is the only sub-region which depicts India’s positive merchandise trade balance from the region.
There is a high concentration at HS-06 level in the bilateral merchandise trade basket to and from India. Over
the period of time, there has been change in the composition of the export basket of India. The study inferred
that India’s partnership with most of the African countries is climbing up in building the global value chain
to consumer and capital goods. To reap the benefits from the establishment of African Free Trade Area India
needs more concrete trade policy initiatives and strong high level strategic dialogues as most of the countries
in the region are landlocked.
Key words: Trade, India, Africa, Concentration
... Generally, these studies treated all urban centers equally, which is not consistent with reality as urban centers could have their own sizes of influence on surrounding areas. Therefore, the second type is calculating indices with the weights of each unit, including the Herfindahl-Hirschman Index (Hirschman 1964), the space Gini coefficient (Audretsch and Feldman 1996), the Ellison-Glaeser Index (Ellison and Glaeser 1994), and the DO Index (Duranton and Overman 2005). However, these indices could exaggerate the contribution of larger urban centers as they are calculated using the percentage sum of squares of contributions of each urban center, such as economy, population, or employment. ...
Effectively exploring the impacts of urban spatial structures on carbon dioxide emissions is important for achieving low-carbon goals. However, most previous studies have examined the impact of urban spatial structure on total carbon emissions based only on polycentricity. Fine-grained studies on subsectoral carbon emissions and other dimensions of urban spatial structure are lacking. Therefore, our study comprehensively explores the impact of urban dispersion and polycentricity on total carbon emissions and carbon emissions of four subsectors (industry, power, civilian, and transportation) from 2012 to 2017 while considering the effects of city size. Results reveal that the nighttime light data is useful for measuring urban spatial structure, and a polycentric, decentralized urban spatial structure correlates with the reduced total carbon emissions and transportation carbon emissions. Meanwhile, a decentralized urban spatial structure gives rise to lower industrial carbon emissions and civilian carbon emissions, whereas a multicenter urban spatial structure contributes to minimizing carbon emissions from power systems. However, in small and medium-sized cities, urban spatial structure differently affects the total carbon and transportation carbon emissions.
... Simpson (1949) proposed the index as a measure of species diversity in an ecosystem. Herfindahl (1950) and Hirschman (1964) used their index as a measure of industrial concentration. In the literature it is most often referred to as the Simpson index, the Herfindahl index, or the Herfindahl-Hirschman index though other names are used as well. ...
The racial and ethnic diversity of 56 of the largest urban areas has increased dramatically from 1980 to 2020. The average share of the population White dropped from three-quarters to a little over half while the average Latino share nearly tripled. The mean value of an index of diversity jumped from 49 to 74 over the same period. Urban areas with the highest levels of diversity had much less than half of the population White with varying mixes of Blacks, Latinos, and Asians. Areas with the lowest diversity had high percentages of their populations White with one exception (El Paso with a large Latino population). In 1980, average diversity in the suburban periphery was far lower than in the urban core, especially for areas in the Northeast and Midwest. Suburban diversity increased substantially by 2020 in all regions, but remained far lower in the Northeast and Midwest.
... We used the data on the slant of Swedish newspapers developed by Garz and Rickardsson (2022), publicly available at https://doi.org/10.7910/DVN/PBBYPO (Garz 2022), to compute an index of internal concentration of political viewpoints based on Herfindahl's (1950) and Hirschman's (1964) formula. This index ranges from 0 to 100, where a value of 0 indicates that a newspaper provides perfectly equal degrees of slant toward each of the eight parties (i.e., the highest possible level of diversity), whereas a value of 100 indicates that all slant is focused on a single party (i.e., the highest possible level of concentration) (see the Supplemental Material for mathematical details). ...
The assumption that ownership has an effect on the diversity of news is based on the forms of control that ownership allows and the market conditions in which ownership is exercised. In this study, we perform a large-scale analysis of the Swedish newspaper market, surveying 130 newspapers and parliamentary speeches over a period of six years (2014–2019), to substantiate to what extent market and for-profit ownership forms impact political viewpoint diversity. Our analysis shows that newspapers with market leadership and chain ownership offer more political viewpoint diversity than number two and single-owned papers. In contrast, the ownership forms surveyed here (private, foundation, and publicly traded ownerships) display little effect on newspapers’ internal diversity. We also find that a greater number of papers in a local market does not imply more external diversity in that market. The analysis thus offers some nuance to the notion that ownership form and market pluralism are prerequisites for viewpoint diversity, highlighting instead the importance of scale effects for pluralistic media systems.
... The methodological framework in this paper includes defining an adequate measure of banking concentration and selecting an adequate procedure for the econometric analysis. For the purposes of measuring concentration in the banking market, HHI (Herfindahl-Hirschman Index) is used, an indicator created by the abovementioned authors for measuring market concentration in general (see Albert O. Hirschman 1945;Hirschman 1964). Although there were criticisms in the literature of this indicator and numerous alternative ways of measuring banking concentration (Gini coefficient, Concentration Ratio, etc), HHI is one of the most frequently used indicators. ...
Expansionary monetary policy combined with unconventional measures led to a decline in the profitability of U.S. and European banks. This paper studies whether such measures also affect the asset concentration in the European banking sector. The findings of this research add value to previous research, taking a step deeper into examining the consequences of expansionary monetary policy. It is found that reductions in the European central bank?s (ECB?s) key policy rate can predominantly explain the concentration growth in the eurozone countries. Furthermore, the ECB?s monetary policy had a more substantial influence on the growth of the concentration of banks outside the eurozone than those countries? own monetary policies. Thus, the expansionary monetary policy poses specific challenges to financial stability in Europe.
... In recent years, the literature of economic complexity has emerged with new proposals on how to quantify technological sophistication [36][37][38][39][40][41][42][43][44][45][46] (see [47] for a comprehensive review). Building on existing literature on export diversification [48][49][50][51][52], two dominant approaches have become the gold standard in this field: the Economic Fitness Index (EFI) [40] and the Economic Complexity Index (ECI) [40]. While these frameworks are built on different theoretical foundations (see [53] for a rigorous comparison), both of them try to map export profiles into indices that capture different elements of economic sophistication. ...
The problem of inferring the technological structure of production processes and, hence, quantifying technological sophistication, remains largely unsolved; at least in a generalizable way. This reflects in empirical literature that either focuses on outputs instead of transformative processes, or preemptively assumes the nature of technology. Building on recent advances in information theory, we develop a method to quantify technological sophistication. Our approach explicitly addresses the transformative process where inputs interact to generate outputs; providing a more direct inference about the nature of technology. More specifically, we measure the degree to which an industry's inputs interact in a synergistic fashion. Synergies create novel outputs, so we conjecture that synergistic technologies are more sophisticated. We test this conjecture by estimating synergy scores for industries across nearly 150 countries using input-output datasets. We find that these scores predict popular export-based measures of economic complexity that are commonly used as proxies for economic sophistication. The method yields synergistic interaction networks that provide further insights on the structure of industrial processes. For example, they reveal that industries from the tertiary sector tend to be disassortative sector-wise. To the extent of our knowledge, our findings are the first data-driven inference of technological sophistication within production processes (on an industrial scale). Thus, they provide the technological foundations of economic complexity and represent an important step toward its empirical microfoundations.
... 13 The HHI measures market concentration, indicating the size of a company relative to the industry. 14 The following equation shows how to compute the HHI: ...
This study estimates the relationship between macro and industry-sector economic factors, mission statements content, and the innovation-financial performance of cross-sectorial organizations. Results show that research-intensive organizations provide more complex mission statements, and those from the private sector that are simpler and financial-related translate into increased profitability but lower assets turnover.
... We propose a method for assessing general territorial specialization based on the Herfindahl-Hirschman index (Hirschman 1964). The coefficient of territorial specialization (Spec) is calculated as the sum of the squares of each industry's share in the total volume of regional production, resulting in the diversification level of any territorial unit economy (the level of general territorial specialization). ...
Being a form of territorial division of labor, economic specialization should be considered as a strategic management priority, contributing to a competitive territorial production structure and, consequently, regional economic growth. The article is devoted, firstly, to the development of a method for assessing the level of territorial division of labor based on a new coefficient of regional economic specialization; and secondly, to the investigation of regional specialization effects on economic growth. The purpose of the to substantiate the influence of the territory specialization factor on industrial economic growth, along with other conventional factors of regional development, using econometric methods based on an extended exogenous growth model. Premised on the data from Russian manufacturing industries and using a new coefficient of regional specialization, the authors have developed and verified an original approach to substantiate the effectiveness of regional clustering for ensuring the growth of industrial output based on an extended exogenous growth model. Approbation of the proposed assessment method and verification of research hypothesis formulated by the authors have been carried out using regional statistical data of the Russian Federation for the period from 2005 to 2019. The empirical analysis results have contributed to a place-based theoretical approach, involving both the cluster concept and the concept of “smart specialization”. The practical significance of the research is to validate clustering feasibility as a form of territorial division of labor and provide a number of principles for the regional industrial policy based thereon to accelerate territorial economic growth.
... Its origins are controversial. Hirschman explicitly defended the merits of its creation (Hirschman 1964), while 19th century authors had already preceded him. According to Good (1982), Alan Turing created it independently at Bletchley Park while working on the decryption of the Enigma machine. ...
This paper analyses employment transitions and workers’ skills in Brazil using a random sample from the universe of formal labour contracts covering the period from 2003 to 2018. We develop a novel procedure to derive a measure of occupational distance and internationally comparable skill measures from occupations’ task descriptions in the country under analysis based on machine learning and natural language processing methods, but without usual ad hoc classifications. Our findings confirm that workers who use non-routine cognitive skills intensively experience the highest employment growth rates and wages. Their labour market exit risk is relatively low, occupational and sectoral changes are least common and, in the case of occupational switching, non-routine cognitive workers tend to find occupations that are higher-paid and closer in terms of their task content. Against the same characteristics, routine and non-routine manual workers are worse off in the labour market. Overall, there have been signs of routine-biased technological change and employment polarization since the 2014 Brazilian economic crisis.
... We measure the expected degree of economic diversification for the Saudi economy between 2020 and 2030. Various alternative measures of economic diversification are widely used, such as the Ogive Index (Tress 1938), the Hirschman-Herfindahl Index (Herfindahl 1950;Hirschman 1964), the Krugman Specialization Index (Krugman 1991), among others. This study does not aim to discuss the subtle differences among these measures, and their application would most likely lead to congruent conclusions. ...
... Second, the spread of refugee migration is defined as "the global spread of migrants across all possible bilateral (country-to-country) migration corridors" (Czaika and de Haas 2015, 296-297). This measurement is based on the Hirschman-Herfindahl index (Hirschman 1964), a statistical measure that can be used to capture the concentration of migrants in bilateral country corridors. Following Czaika and de Haas (2015), we subtracted the score from 1 to gain a measurement of spread instead of concentration. ...
This paper studies long‐term trends and patterns in global refugee migration. We explore the intensity, spread, and distance of refugee migration at a global, regional, and country level between 1951 and 2018. The analysis did not detect a long‐term increase in the global intensity of refugee migration. Primarily depending on levels of conflict, refugee numbers have fluctuated at levels of between 0.1 and 0.3 percent of the world population. Apparent increases in numbers of the globally displaced are driven by the inclusion of populations and countries that were previously excluded from the data. While refugee populations continue to be concentrated in countries with low‐to‐medium income levels, the analysis reveals several geographic shifts in refugee migration. Refugees tend to come from a shrinking number of origin countries and move to an increasing variety of destination countries. This trend seems to reflect a concentration of recurrent conflict cycles in a relatively small number of countries and a parallel increase in the number of safe destinations. Although the vast majority of refugees remain near to origin countries, the average distance between origin and destination countries has increased over time, presumably linked to the greater ease of travel and migration‐facilitating networks.
... Currency concentration may be measured with two tools, namely the concentration ratios (N-subjects ratios) and the Herfindahl-Hirschman index (HHI). A more detailed description of this concept can be found in the original source: Hirschmann (1964). The N-subject ratios and the Herfindahl-Hirschman index are often used in SciPap 29 (2) economics to examine the level of market competition. ...
This article focuses on the transition of the international monetary system to a multipolar structure. The international monetary system continuously evolves, reflecting developments in the world economy. The main problem of the current international monetary system is its dependence on one key currency which still remains the US dollar. The authors of this study address the issue of a transition towards a multipolar system by examining currency concentration. The primary objective of this work is to establish whether or not the current international monetary system shows signs of transitioning towards multipolarity. To achieve this, the authors have used tools measuring the level of market concentration. The change of polarity of the international monetary system is analysed with concentration ratios and the Herfindahl-Hirshmann index. The theoretical part focuses on definitions of key terms essential for this study, such as international monetary system, currency polarity, global currency, and currency concentration. For the practical part, data were sourced from the databases of global institutions, namely the International Monetary Fund (IMF), Bank for International Settlements (BIS), Society for Worldwide Interbank Financial Telecommunications (SWIFT) and the European Central Bank (ECB). This part focuses on a period of time between 2001 and 2019, and the results indicate that the current international monetary system shows signs of transitioning towards a multipolar structure. The level of currency concentration of the key reserve currencies dropped slightly, although not enough to cause a qualitative change of the current international monetary system. This study may serve as a base for future research on this topic.
... However, rather than using proportional representation, this study employs measure of religious group mixing: religious heterogeneity is operationalized as minus the Herfindahl-Hirschman index (HHI) (Borgonovi 2008). The HHI is a measure of concentration among discrete components, and is calculated as the sum of squared proportions or alternative representation with the formula ∑ ( ) where xi is the proportion of persons in a given category and k is the number of categories (Hirschman 1964). Although originally developed in econometrics the HHI is sometimes used by scholars of religion as a measure of religious homogeneity (Borgonovi 2008). ...
Scholars have grown increasingly interested in the association between climate conditions and social unrest. Though no consensus exists regarding the specific mechanisms that connect both phenomena, scholars have found a links between rising temperatures, precipitation, or the magnitude of disasters and social unrest. However, is unclear to what extent deviations from historical trends rather than absolute levels might serve as important indicators of unrest. Moreover, it remains unclear how effectively socio-demographic factors like quality of life and ethno-religious fragmentation can explain trends on unrest, net of climatological indicators. This project tests the extent to which deviation from historical trends in precipitation is associated with an increase in the frequency of protests in India (2016) – net of key indicators of quality of life and socio-economic fragmentation. District-level analyses employ satellite-based precipitation data and protest event data from the Armed Conflict Location & Event Data (ACLED) project, combined with socio-demographic data from the India Census and related sources. Results indicate that protests levels are associated with climatological and quality of life or social inequality indicators. Moreover, results generally indicate a strong relationship between deviation from historically average precipitation and protests. However, the direction of this association varies cross years. Implications of these results are discussed as potentially related to increasing climatological instability. Advisor: Regina Werum
... We measure the expected degree of economic diversification for the Saudi economy between 2020 and 2030. Various alternative measures of economic diversification are widely used, such as the Ogive Index (Tress 1938), the Hirschman-Herfindahl Index (Herfindahl 1950;Hirschman 1964), the Krugman Specialization Index (Krugman 1991), among others. This study does not aim to discuss the subtle differences among these measures, and their application would most likely lead to congruent conclusions. ...
The last decade has brought a row of substantial changes that have profound implications for the traditional hydrocarbon resource-rich economies. Economic conditions may change radically either throughout a decade or within months. The question is whether there is no other option for a hydrocarbon resource-rich economy than to be held hostage to the fluctuations in global oil prices. The general answer to a changing environment is: Adapt! From the macroeconomic perspective, this means diversifying the economy to broaden the income base and significantly reduce the dependence on oil revenues. The Saudi Vision 2030 represents a complex plan for substantial socioeconomic adjustments that are about to move the economy toward a more diversified and sustainable one. This discussion paper examines the preferred diversification paths for the Saudi economy in more detail, with a focus on the foreseen adjustments in the sectoral composition of the economy along with broader macroeconomic shifts. The evaluation of the foreseen diversification impacts is based on the updated Vision 2030 Input-Output Table that maps the changing structure of the Saudi economy over the coming decade. We discuss the assumed expansion of the diversification frontrunners, their changing contribution to the overall economic activity and identify the preferred diversification paths for the Saudi economy. The advances in economic diversification are measured by applying the Shannon-Weaver index to sectoral GDP and household income. The expected sectoral changes are wide-reaching, so the basic macroeconomic relations are also subject to adjustments. We also conduct a sensitivity analysis to examine the effects of the foreseen diversification on the resilience of the Saudi economy to external shocks.
... The areal homogeneity measure is detailed first, and we return to the genealogical homogeneity measure in the next section. Parkvall's genealogical homogeneity begins with Greenberg's diversity index, a version of the Herfindahl-Hirschman index described in Greenberg (1956;see also Hirschman, 1945;Hirschman, 1964). This diversity measure is defined as D g = 1 − P n (1) D g represents the diversity within an area g of languages, and P n is the fraction of the entire area that has the feature value n. ...
... Three classes were given, that is, (1) upper or upper-middle class, (2) lower-middle class, and (3) working or lower class. From this we calculated a measure of dispersion, inspired by the Herfindahl index (Hirschman 1964) in oligopoly theory: As already indicated, we use three kinds of classes: (1) upper or upper-middle class, (2) lower-middle class, and (3) working or lower class. In our multivariate analyses we use lower-middle class as reference. ...
Research on the relationship between social class and altruistic giving has provided inconsistent evidence. Using the dictator game, in which one participant is endowed with a certain amount of money and has to allocate this amount between herself and another individual, several studies found that higher-class actors have a lower tendency toward altruistic giving than lower-class actors; other studies found the opposite pattern. We show that social class has a positive effect on altruistic giving in the dictator game with a sizeable sample of residents of the United States using both an objective measure of social class—that is, a composite of income, education, and occupational prestige—and a subjective measure. Shedding more light on the mechanisms underlying the positive effect of social class, it is demonstrated that class affects altruistic giving not so much by differences in empathic concern but by differences in the marginal utility of money and contact heterogeneity. It is argued that the latter effect can be derived from Collins’s theory of interaction rituals and class cultures.
... To illustrate this, the Herfindahl-Hirschman Index (HHI), a common measure of market concentration, is shown in the figure. The HHI is the sum of the squares of each firm's market share expressed as a percentage (Hirschman 1964). With five firms, it thus ranges from 10, 000 (perfect monopoly) to 2000 (five equal 20% shares). ...
With the emergence of global digital service providers, concerns about digital oligopolies have increased, with a wide range of potentially harmful effects being discussed. One of these relates to cyber security, where it has been argued that market concentration can increase cyber risk. Such a state of affairs could have dire consequences for insurers and reinsurers, who underwrite cyber risk and are already very concerned about accumulation risk. Against this background, the paper develops some theory about how convex cyber risk affects Cournot oligopoly markets of data storage. It is demonstrated that with constant or increasing marginal production cost, the addition of increasing marginal cyber risk cost decreases the differences between the optimal numbers of records stored by the oligopolists, in effect offsetting the advantage of lower marginal production cost. Furthermore, based on the empirical literature on data breach cost, two possibilities are found: (i) that such cyber risk exhibits decreasing marginal cost in the number of records stored and (ii) the opposite possibility that such cyber risk instead exhibits increasing marginal cost in the number of records stored. The article is concluded with a discussion of the findings and some directions for future research.
... The similar concept (sum of squared market shares), however is known since 1940 when A. O. Hirshmann executed a trade study. Hirschmann in his paper suggests that original idea of index belongs to him [12]. Therefore, in the literature we can find concepts of Herfindahl index or Hirchmann-Herfindahl index, but both of them represent the same indicator. ...
This paper evaluates the concentration of Slovak automotive industry, and its potential impacts on competitiveness and innovation activities of businesses operating within the industry. It analyses the concentration of automotive industry by using relevant metrics as market share, concentration ratio CR 3 , CR 5 , CR 10 and Herfindahl index. The aim of this paper is to analyze financial results of Slovak automotive businesses, then measure the degree of concentration of whole industry in order to explain industry competitiveness in context of Slovak economy. Finally, the paper should inspire a reader in order to make him consider, what is the impact of strongest automotive companies on whole business environment in Slovak Republic.
... The individual-level variables include income, education, union membership, and age taken from the CSES survey. As for country-level ones, the author includes the Herfindahl Index that measures media market competitiveness in both the newspaper and television sectors (Hirschman, 1964). ...
The media's ability to freely gather and disseminate information remains a critical aspect of democracy. Studies link media freedom to other concepts including human rights, corruption, democratic peace and conflict, natural resource wealth, political knowledge and foreign aid. However, media freedom's many facets make it difficult for any single index to fully capture. To develop a more robust measure, this article treats media freedom as a latent variable and analyzes ten extant indicators by fitting an item response theory model. Utilizing a Bayesian approach, the model generates time-series, cross-sectional data on a bounded, unidimensional scale from 0 to 1 that measures media freedom in 197 countries from 1948 to 2017. After numerous validity checks, the authors utilize their new Media System Freedom data to replicate Egorov, Guriev and Sonin's (2009) analysis of media freedom and natural resource wealth. The findings indicate that the published results do not hold once the more robust measure is included.
... Of course, concentration of supply of a given product j in a market relates to both domestic and foreign supply. As the combination of industrial production statistics and international trade statistics involves a complicated conversion procedure, we follow Cuyvers et al. (1995:180-181) and Cuyvers (2004:261-262), and restrict the analysis of concentration to imports of a product j and to the countries supplying these imports, using the Herfindahl-Hirschmann Index (HHI) (Hirschmann, 1964) as measure of the degree of market concentration, as follows: where X k,ij is country k's exports of product group j to country i and to country i's total import of product group j. If the HHI is low for a particular importing country, it can be safely assumed that Belgium will likely find it easier to penetrate that specific market, as it is less concentrated in terms of imports supply. ...
... Of course, concentration of supply of a given product j in a market relates to both domestic and foreign supply. As the combination of industrial production statistics and international trade statistics involves a complicated conversion procedure, we follow Cuyvers et al. (1995:180-181) and Cuyvers (2004:261-262), and restrict the analysis of concentration to imports of a product j and to the countries supplying these imports, using the Herfindahl-Hirschmann Index (HHI) (Hirschmann, 1964) as measure of the degree of market concentration, as follows: where X k,ij is country k's exports of product group j to country i and to country i's total import of product group j. If the HHI is low for a particular importing country, it can be safely assumed that Belgium will likely find it easier to penetrate that specific market, as it is less concentrated in terms of imports supply. ...
... Urbanicity reflects whether a community is classified as urban or rural, based on the DHS measure. To measure ethnic diversity, we use the Herfindahl-Hirschman Index of diversity (HHI; Hirschman 1964). The HHI is calculated as the sum of the squared proportions of each ethnic group within a community; it is a widely used measure of community heterogeneity (van der Meer and Tolsma 2014) and has been shown to be associated with FGMC in Kenya . ...
Despite long-term efforts to encourage abandonment of female genital mutilation/cutting (FGMC), the practice remains widespread globally. FGMC is situated in specific social and historical contexts, and both prevalence and rates of decline vary widely across practicing countries. However, cross-national comparative research on the determinants of FGMC is sparse. This paper adds to the limited body of rigorous, theoretically grounded quantitative studies of FGMC and takes a step toward advancing cross-national comparative research. We apply an integrated theoretical framework that brings together norms-based and gender-based explanations of community-level influences on FGMC. We test this framework in four francophone West African countries, drawing on comparable nationally representative data from the Demographic and Health Surveys in Burkina Faso (2010), Côte d'Ivoire (2011-2012), Guinea (2012), and Mali (2012-2013). Results show that community-level FGMC norms and community-level gendered opportunities are associated with girls' risk of FGMC, but that the direct and moderating associations vary qualitatively across countries. Our findings highlight the contribution of context-specific social and institutional processes to the decline or persistence of FGMC.
... The HHI is measured as the sum of the square of each organisation's market share. The result of this mathematical process is a number ranging from 1 to 10,000, with perfect monopoly at 10,000 and a perfectly competitive system at an HHI value of 1 (Hirschman 1964;Hirschman 1980;Rhoades 1993). In practice, markets with an HHI above 2,500 are considered very concentrated. ...
Market concentration affects each component of the cybersecurity risk equation (i.e. threat, vulnerability and impact). As the Internet ecosystem becomes more concentrated across a number of vectors from users and incoming links to economic market share, the locus of cyber risk moves towards these major hubs and the volume of systemic cyber risk increases. Mitigating cyber risk requires better measurement, diversity of systems, software and firms, attention to market concentration in cyber insurance pricing, and the deliberate choice to avoid ubiquitous interconnection in critical systems.
We introduce a reciprocity protocol , an innovative approach to coordinating and sharing rewards in blockchains. Inherently decentralized and implementable, it puts emphasis on incentives rather than forcing specific sharing rules from the outset. Analyzing the non-cooperative game the protocol induces, we identify a robust, strict, and Pareto-dominant symmetric equilibrium. In it, even self-centered participants show extensive systemic reciprocity. Thus, despite a setting that is generally unfavorable to reciprocal behavior, the protocol enables users to build trust between themselves by taking on a role akin to a social contract.
Does power sharing bring peace? Policymakers around the world seem to think so. Yet, while there are many successful examples of power sharing in multi-ethnic states, such as Switzerland, South Africa and Indonesia, other instances show that such arrangements offer no guarantee against violent conflict, including Rwanda, Yugoslavia, Zimbabwe and South Sudan. Given this mixed record, it is not surprising that scholars disagree as to whether power sharing actually reduces conflict. Based on systematic data and innovative methods, this book comes to a mostly positive conclusion by focusing on practices rather than merely formal institutions, studying power sharing's preventive effect, analyzing how power sharing is invoked in anticipation of conflict, and by showing that territorial power sharing can be effective if combined with inclusion at the center. The authors' findings demonstrate that power sharing is usually the best option to reduce and prevent civil conflict in divided states.
The rise of index funds presents a challenge for the corporate governance of listed companies. Based on a comprehensive data analysis, the thesis documents the growing importance of passive asset managers in listed firms' ownership structures. It then explains why the incentives of these managers to engage in the corporate governance of their portfolio companies are not socially optimal, relying, among other things, on recent results from the empirical corporate finance literature. Finally, the thesis critically reviews the instruments employed by the legal system to respond to the problems identified, with a focus on the "stewardship" provisions of the revised Shareholder Rights Directive and the shortcomings of their specific design.
This paper investigates how community racial composition affects types of organizations people of color volunteer for. Specifically, we explore which type of nonprofits (religious and secular, and club-type and collective-type) people of color (Blacks and Hispanics) are likely to volunteer for as the percentages of their racial in-groups in the community increase. Using the current population survey volunteering supplements and county-level census data from 2002 to 2014, we find that community racial composition does matter for people of color’ decisions regarding where they choose to volunteer, particularly for Hispanics. As the percentage of Hispanics in the county increases, Hispanics start to volunteer more for collective-type organizations, moving beyond volunteering for religious organizations. The findings from this study suggest the importance of efforts to engage diverse groups of population in the civic sphere, especially people of color who might have not been welcomed to various forms of community engagement. Such endeavors will contribute to making and sustaining a healthy democracy.
Background
Ethiopia is heterogeneous in agro-ecological, social, and economic conditions. In such heterogeneous environment, crop production needs to be diversified to meet household consumption and market needs. This study analyzed determinants of crop diversification in wheat dominant producer rural households in Ethiopia’s Sinana District of the Oromia Regional State. The study utilized a structured survey of 384 households, and both inferential and descriptive statistics were employed to analyze the data. A Cragg’s double hurdle model was applied to identify factors influencing decision and the extent of crop diversification.
Results
We found that decision to crop diversification was positively associated with household size, access to fertile farm plots, and access to extension services and negatively associated with age of household head, and participation in off/non-farm activities. The extent of crop diversification is positively associated with access to extension services, labor availability, membership to farmers cooperatives, and distance to market.
Conclusions
These findings support the need for resources to strengthen available extension packages, support existing farmers’ cooperatives, and develop rural infrastructures in order to improve the smallholder farmers’ extent of crop diversifications.
In the last decade, the demand for sustainable and social investments has improved. The mutual funds industry has responded to market needs by offering a number of investment products focused on Environmental, Social and Governance (ESG) companies. The aim of this article is to understand if an ESG score can actually be considered a valid criterion that portfolio managers could adopt, along with traditional risk–return optimisation, in selecting asset portfolios. The paper analyses the link between the performance and the ESG score of different sectoral portfolios (one for each sector of the Global Industry Classification Standard), entirely composed of ESG assets, in the search for a clear and strong positive correlation that could suggest an overall advantage to focus on an ex ante choice of assets with high ESG scores.
Background: Ethiopia is heterogeneous in agro-ecological, social, and economic conditions. In such heterogeneous environment, crop production needs to be diversified to meet household consumption and market needs. This study analyzed determinants of crop diversification in wheat dominant producer rural households in Ethiopia’s Sinana District of the Oromia Regional State. The study utilized a structured survey of 384 households, and both inferential and descriptive statistics were employed to analyze the data. A Cragg’s double hurdle model was applied to identify factors influencing decision and the extent of crop diversification.
Results: We found that decision to crop diversification was positively associated with household size, access to fertile farm plots, and access to extension services and negatively associated with age of household head, and participation in off/non-farm activities. The extent of crop diversification is positively associated with access to extension services, labor availability, membership to farmers cooperatives, and distance to market.
Conclusions: These findings support the need for resources to strengthen available extension packages, support existing farmers’ cooperatives, and develop rural infrastructures in order to improve the smallholder farmers’ extent of crop diversifications.
Since the financial crisis of 2008 and intensified during the corona crisis, the interdependence between the stability of the financial systems and the prevailing degree of competition (DC) has been the subject of scientific and economic policy discourse on fragmented markets and „too-big-to-fail“ banks. In theory and empiricism, two fundamentally contrary causal concepts are opposed, the elementary basis of which is the precise measurement of the DC: Competition-stability- versus Fragility-Hypothesis. Based on the recent state of research, it can be shown that alternative DC-Measurements consistently show significantly different competitive conditions and in consequence the evidence for or against a stability-enhancing competitive effect seems to be predetermined by the chosen DC-Measurement.
This paper investigates the tax avoidance behaviour of German state-owned enterprises (SOEs). Based on firm-specific data of state-owned and private firms from the period between 2004 and 2013 obtained from the Orbis database and public share reports (Beteiligungsberichte), it employs propensity score matching to analyse whether SOEs differ from private firms in their use of aggressive tax planning. Furthermore, a range of theories stemming from the Political Science and Economics literature that could explain SOEs’ tax planning behaviour are tested using fixed and random effects regressions. Results suggest that German SOEs engage in aggressive tax avoidance. This tax avoidance is positively affected by the total public share, the number of public shareholders and the relative power of the biggest private shareholder within the SOE. Market competition as well as the governing party coalition of the public owner cannot explain SOEs’ aggressive tax planning behaviour.
The approach presented in this study pursues the suggestions of several studies that identified the retail firms as an economic institution that delivers explicit goods or services to the consumer together with a variety of distribution services that determine levels of distribution costs experienced by consumers in their purchase activities. This Framework is founded on the definition of profits and incorporates recent theoretical developments formalizing the role of distribution services as outputs of retails activities. The economic framework is applied to the empirical analysis of the margins of 30 Portuguese retail sectors. The present study intends to identify the determinant factors of the margins from the Portuguese retail sectors. The database is information on 30 retail sectors from the 2001 survey firms in commerce reported by INE.
Racial and ethnic neighborhood diversity and residential segregation among whites, African-Americans, Latinos, and Asians and Pacific Islanders are measured for 59 large urban areas in the United States from 1980 to 2010. Neighborhood diversity is defined as the average of diversity in census tracts. Neighborhood diversity increased dramatically from 1980 to 2010 for nearly all urban areas. It was significantly higher in areas in the South and West and in areas that were growing more rapidly. Residential segregation is defined as the relative difference between neighborhood diversity and the maximum possible for the urban area given the distribution of the population across the racial and ethnic groups. Segregation declined over the period considered and was lowest in urban areas in the West.
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