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Aggregate Concentration in Corporate America: The Case of the Fortune 500

Author

Listed:
  • Edward Nissan
  • Jennifer Caveny

    (The University of Southern Mississippi)

Abstract

This article provides a look at business concentration for sales and assets for the period 1967 to 2002 based on Theil’s entropy, a measure adopted by several authors in earlier publications. For contrast, three other well-known measures of concentration, the Hirschman-Herfindahl (HHI) index and the 4-firm and 8-firm concentration ratios, CR4 and CR8, were utilized. Data used were sales and assets of the largest 500 companies provided by Fortune magazine. In addition to detailed results on concentration, the paper found that the inclusion of service firms with the industrial firms in the list of 500 in 1994 somewhat changed the levels and trends in concentration.

Suggested Citation

  • Edward Nissan & Jennifer Caveny, 2005. "Aggregate Concentration in Corporate America: The Case of the Fortune 500," The International Journal of Applied Economics, Department of General Business, Southeastern Louisiana University, vol. 2(1), pages 132-152, March.
  • Handle: RePEc:ija:ancoec:v:2:y:2005:i:1:p:132-152
    as

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    File URL: http://www2.selu.edu/orgs/ijae/Journal%202/IJAE%20MARCH%202005%20NISSAN%20Concentration%2003%2005%202005%20FINAL2.pdf
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    References listed on IDEAS

    as
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    2. Bernard, Andrew B & Jones, Charles I, 1996. "Productivity across Industries and Countries: Time Series Theory and Evidence," The Review of Economics and Statistics, MIT Press, vol. 78(1), pages 135-146, February.
    3. Barro, Robert J, 1990. "Government Spending in a Simple Model of Endogenous Growth," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 103-126, October.
    4. Barro, Robert J & Sala-i-Martin, Xavier, 1997. "Technological Diffusion, Convergence, and Growth," Journal of Economic Growth, Springer, vol. 2(1), pages 1-26, March.
    5. Robert J. Barro, 1991. "Economic Growth in a Cross Section of Countries," The Quarterly Journal of Economics, Oxford University Press, vol. 106(2), pages 407-443.
    6. Aghion, Ph. & Dewatripont, M. & Rey, P., 1997. "Corporate governance, competition policy and industrial policy," European Economic Review, Elsevier, vol. 41(3-5), pages 797-805, April.
    7. Blundell, Richard & Griffith, Rachel & Van Reenen, John, 1995. "Dynamic Count Data Models of Technological Innovation," Economic Journal, Royal Economic Society, vol. 105(429), pages 333-344, March.
    8. Baumol, William J & Wolff, Edward N, 1988. "Productivity Growth, Convergence, and Welfare: Reply," American Economic Review, American Economic Association, vol. 78(5), pages 1155-1159, December.
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    10. Bernard, Andrew B & Jones, Charles I, 1996. "Comparing Apples to Oranges: Productivity Convergence and Measurement across Industries and Countries," American Economic Review, American Economic Association, vol. 86(5), pages 1216-1238, December.
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    12. Aghion, Philippe & Harris, Christopher & Vickers, John, 1997. "Competition and growth with step-by-step innovation: An example," European Economic Review, Elsevier, vol. 41(3-5), pages 771-782, April.
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    More about this item

    Keywords

    Theil’s entropy; HHI; concentration ratios; Fortune 500;

    JEL classification:

    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L40 - Industrial Organization - - Antitrust Issues and Policies - - - General

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