Herfindahl-Hirschman Index
Arguments
- x
A non-negative numeric vector.
- normalized
Logical. Argument specifying whether or not a normalized value is required. Ranges from 0, 1 and often used for comparison over time. Must be either
TRUE
orFALSE
. The default isFALSE
.- na.rm
A logical vector that indicates whether
NA
values should be excluded or not. Must be eitherTRUE
orFALSE
. The default isTRUE
. If set toFALSE
the computation yieldsNA
ifNA
values are present.
Details
concstats_hhi
calculates the widely used Herfindahl-Hirschman
Index (Herfindahl, 1950 and Hirschman, 1945). The index is calculated by
squaring the market share of each firm competing in the market and then
summing the resulting numbers.