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Entropy has been proposed as a meaningful index of industrial concentration. It is shown that necessarily accurate estimates of entropy can be obtained from grouped data. Using the suggested procedure, employment concentration as measured by entropy is estimated for 26 two-digit industries in each of the six Common Market nations. The relationship between firm and industry size and concentration is then analysed, as are the international similarities in industrial structure.
Ira Horowitz (Thu,) studied this question.
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