The Importance of Industry Classification in Estimating Concentration Ratios

Economics Letters, Vol. 114, No. 2, pp. 224-227, 2012

Posted: 25 Nov 2011 Last revised: 20 Sep 2012

See all articles by Karel Hrazdil

Karel Hrazdil

Simon Fraser University

Ray Zhang

Simon Fraser University (SFU)

Date Written: November 25, 2011

Abstract

We compare different industry concentration ratios based on the Standard Industry Classification (SIC) system to ratios based on the Global Industry Classification Standard (GICS) system and demonstrate through the analysis of industry markups that GICS-based measures are better proxies for the actual industry concentration than SIC-based measures.

Keywords: Concentration Indices, Industry markup, SIC, GICS, Classification

JEL Classification: D4, C8

Suggested Citation

Hrazdil, Karel and Zhang, Ray, The Importance of Industry Classification in Estimating Concentration Ratios (November 25, 2011). Economics Letters, Vol. 114, No. 2, pp. 224-227, 2012. Available at SSRN: https://ssrn.com/abstract=1964637

Karel Hrazdil (Contact Author)

Simon Fraser University ( email )

Faculty of Business Administration
8888 University Drive, Simon Fraser University
Burnaby, British Colombia V5A 1S6
Canada
778-782-6790 (Phone)
778-782-4920 (Fax)

HOME PAGE: http://www.sfubusiness.ca

Ray Zhang

Simon Fraser University (SFU) ( email )

8888 University Drive
Burnaby, British Columbia V5A 1S6
Canada

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