Scandinavian Working Papers in Economics

HERO Online Working Paper Series,
University of Oslo, Health Economics Research Programme

No 2011:1: Development of competition indicators in the Norwegian general practice: Constructing a postal code-specific Herfindahl-Hirschman index applying STATA software

Xing Chen and Geir Godager ()
Additional contact information
Xing Chen: Department of Health Management and Health Economics, Postal: HERO / Department of Health Management and Health Economics, P.O. Box 1089 Blindern, NO-0317 Oslo, Norway
Geir Godager: Department of Health Management and Health Economics, Postal: HERO / Department of Health Management and Health Economics, P.O. Box 1089 Blindern, NO-0317 Oslo, Norway

Abstract: The purpose of this text is to describe a procedure that can be used to construct a Herfindahl-Hirschman index of market concentration based on the following two pieces of information: a) An output measure of individual producers located in areas identified with a postal code. b) A matrix containing information about the distances between the (centers of) the areas defined by postal codes. The examples presented in this text are from the market for general practitioners’ services in Norway, but applying the suggested procedures to other output measures should be straight forward. The STATA commands necessary to construct the index are provided.

Keywords: Herfindahl-Hirschman index; General practitioner; primary health care; market concentration; Norway

JEL-codes: I18; J14

11 pages, October 25, 2011

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2011_1.pdf PDF-file 

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