REAT (version 1.2.1)

herf.eq: Herfindahl-Hirschman coefficient equivalent number

Description

Calculating the Herfindahl-Hirschman coefficient equivalent number of objects

Usage

herf.eq(x)

Arguments

x

A numeric vector (e.g. dataset of sales turnover or size of firms)

Value

A single numeric value of the Herfindahl-Hirschman coefficient equivalent number.

Details

The equivalent number referring to the Herfindahl-Hirschman coefficient (see the function herf()) reflects the theoretical number of economic objects (normally firms) where a calculated coefficient is $\frac{1}{n}$ (parity).

References

Doersam, P. (2004): “Wirtschaftsstatistik anschaulich dargestellt”. Heidenau : PD-Verlag.

See Also

cv, gini, herf

Examples

# Example from Doersam (2004):
sales <- c(20,50,20,10)
# sales turnover of four car manufacturing companies
herf(sales)
# returns the HHI (0.34)
herf.eq(sales)
# returns the HHI equivalent number (2.941176)

# Regional disparities in Germany:
gdp <- c(460.69, 549.19, 124.16, 65.29, 31.59, 109.27, 263.44, 39.87, 258.53, 
645.59, 131.95, 35.03, 112.66, 56.22, 85.61, 56.81)
# GDP of german regions 2015 (in billion EUR)
herf(gdp)
# returns the HHI (0.125)
herf.eq(gdp)
# returns the HHI equivalent number (7.988733)