Exercise # 3:
The dataset provides Herfindahl–Hirschman Index, and Herfindahl index categories, please use the herf_cat variable and answer the following questions:
Note: “The Herfindahl–Hirschman Index is a commonly accepted measure of market concentration used by antitrust enforcement agencies and scholars in the field. The HHI is calculated by squaring the market share of each firm competing in the market and then summing the resulting numbers†(NASI, 2015; pp: 14-16). Read more from here:
For this exercise, you do not need to compute the HHI, but if you have any questions, please do not hesitate to ask me, but try to learn more about this you will need that to report your findings.
Use the dataset from week1 exercise and then answer the following questions:
(Note: to answer to the last question, please compute the ratio-Medicare-discharge and ratio-Medicaid-discharge first and then run 2 t-tests) high vs. moderate and high vs. low competitive market), please support your findings with box-plot).
Table 3. Comparing hospital characteristics and market, 2011 and 2012
High Competitive Market |
Moderate Competitive Market |
Low Competitive Market |
ANOVA/Chi-Sq (results) |
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Hospital Characteristics |
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Mean |
STD |
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Mean |
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Mean |
STD |
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14. Herfindahl index |
Use Excel for calculations (mandatory)
(BONUS points: Use Master RStudio script is available for this exercise, but you need to modify that for this analysis)
Download data from here: HMGT400HOSP