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st: Re: Herfindahl index


From   "R.E. De Hoyos" <[email protected]>
To   <[email protected]>
Subject   st: Re: Herfindahl index
Date   Mon, 11 Jul 2005 18:53:41 +0300

Dawood,

bys repdte state: egen sum = sum(asset)
generate share = (assets/sum)*100
bys repdte state: egen HERF = sum(share)

Rafa


----- Original Message ----- From: "Dawood Ashraf" <[email protected]>
To: <[email protected]>
Sent: Monday, July 11, 2005 6:34 PM
Subject: st: Herfindahl index



Hi statalist

I am trying to calculate degree of concentration in an industry by using the
Herfindahl index. I am using the panel data where I have 10 years of time, 50
states, in every state there are a few companies. I am using the following
command

bysort state: generate HERF= (asset/ sum(asset))^2 if repdte==1997

The resulting output use the running sum in the denominator instead of sum of
asset of all companies for year 1997.

Could any one tell me how can I implement The Herfindahl index in stata in this
situation?

regards



--
Dawood Ashraf


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