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Development of competition indicators in the Norwegian general practice: Constructing a postal code-specific Herfindahl-Hirschman index applying STATA software


  • Chen, Xing

    (Department of Health Management and Health Economics)

  • Godager, Geir

    () (Department of Health Management and Health Economics)


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.

Suggested Citation

  • Chen, Xing & Godager, Geir, 2011. "Development of competition indicators in the Norwegian general practice: Constructing a postal code-specific Herfindahl-Hirschman index applying STATA software," HERO On line Working Paper Series 2011:1, Oslo University, Health Economics Research Programme.
  • Handle: RePEc:hhs:oslohe:2011_001

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    Cited by:

    1. Godager, Geir & Iversen, Tor & Ma, Ching-to Albert, 2015. "Competition, gatekeeping, and health care access," Journal of Health Economics, Elsevier, vol. 39(C), pages 159-170.

    More about this item


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

    JEL classification:

    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination

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