Measuring market concentration in China: the problem with using censored data and its rectification

Bai, Chong–En; Mao, Jie; Zhang, Qiong

doi:10.1016/j.chieco.2014.05.013

Cited by 15 publications

(7 citation statements)

References 30 publications

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“…9 A freel y available version of normalized Herfindal-Hirschman Indices for two-digit s ectors is available in Bai et al (2014). However, thei r s eries only go up to 2009, a nd it is not linkable with other data we may have built upon (e.g., elaborated from Orbis-Bvd da ta base) since the fi rst a re normalized taking the 1998 concentration index as equal to 1.…”

Section: Data Variables and Baseline Modelmentioning

confidence: 99%

Investigating the linkages between industrial policies and M&A dynamics: Evidence from China

Barbieri

Huang

et al. 2021

China Economic Review

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Section: Data Variables and Baseline Modelmentioning

confidence: 99%

Investigating the linkages between industrial policies and M&A dynamics: Evidence from China

Barbieri

Huang

et al. 2021

China Economic Review

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“…The literature is abundant in industrial concentration analysis (e.g. Bai et al, 2014;Chiang et al, 2001;Cabral, 2000;Bain, 1968) because it deals with market power. Firms with higher market power can increase prices and lower quantities, leading to overall socially inefficient outcomes (Tirole, 1988), which, in an industrial organization, is often analyzed within the structure-conduct-performance (S-C-P) paradigm (see Bain, 1968;Tirole, 1988;Cabral, 2000).…”

Section: Firm Size Distributionmentioning

confidence: 99%

Investigating Industry Dynamics in a Recessionary Transition Economy

Vitezić

Srhoj

Perić

2018

South East European Journal of Economics and Business

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The paper investigates the statistical regularities of industry dynamics in a transition economy and its manufacturing industry over a six-year period of recession. The static analysis of distributions supports several established stylized facts on firm size and growth-rate distributions. The growth rate distribution featured a sequential, year-by-year procyclical change of the left side of distribution, suggesting that the more years an economy spends in a recession, the greater the decline in the revenue of its firms. On the “growing” side, the recession opened increasing growth opportunities for a small subset of small firms, while it diminished growth opportunities for medium and large firms. The segregation of sectors by technological intensity gives evidence that the high-tech sectors show upward trend of the growth rate distributions’ right side of as the recession unfolded. Sectorial concentration ratios mostly increased, while changes in the unimodality of the firm-size distribution occurred at the end of the economic downturn

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“…The censored HHI (HHI k ) is defined as

{HHI}_{k} = \frac{\sum_{i = 1}^{k} u_{i}^{2}}{{(\sum_{j = 1}^{k} u_{j})}^{2}} k < n .

An example of such censoring is described in Bai et al . (): since 2007, just companies with sales in excess of five million RMB have been included in the Chinese Industrial Enterprises Database. If the threshold u * is fixed as in the Chinese case, the number k may change from year to year.…”

Section: Hhi Estimation and Bounding Under Censoringmentioning

confidence: 99%

“…Bai et al . () have shown that the number of companies may be so large (e.g. in the order of millions) that the provider of data (e.g.…”

Section: Introductionmentioning

confidence: 99%

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Censoring and Distortion in the Hirschman–Herfindahl Index Computation

Naldi

Flamini

2017

J of App Econs and Policy

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The Hirschman–Herfindahl Index (HHI) is a well known measure of market concentration. However, its exact computation would require the knowledge of the market share of all the companies. In this paper, accurate estimates of the HHI are computed even if just the market shares of the top companies are known (or just the top company and a few scattered ranked companies), by providing tight lower and upper bounds for the HHI. Similarly, when just the sales of the top companies are known, an upper bound is provided, which is the most relevant value if dominant positions have to be identified.

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Measuring market concentration in China: the problem with using censored data and its rectification

Cited by 15 publications

References 30 publications

Investigating the linkages between industrial policies and M&A dynamics: Evidence from China

Investigating the linkages between industrial policies and M&A dynamics: Evidence from China

Investigating Industry Dynamics in a Recessionary Transition Economy

Censoring and Distortion in the Hirschman–Herfindahl Index Computation

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