CommentAn HHI index of less than 1500 is considered as an competative market place , and If HHI index value is in range of 1500 to 2500 is considered as moderetly Concentrated.if the valuegoes above 2500 then the market place is highly Concentrated.So, In our All three years Value of HHI is above 2500 that shows in all three years that shows the there is very less competation in market or existence of very few players in all three years Are your conclusions in the HHI consistent with the five firm concentration in all cases? Give two reasons to support your answer 1 Years234 20185678910 2019111213141516 202017567891011121314151617BankSTANBIC 2584735BARCLAYS 3204859Total20192020ABSAAbsaTotalELoan Advances Weightage Weightage^2Herfindahl-Hirschman Index (HHI)STANBIC 39465914082295209501=SUM(C7:C9)=SUM(C2:C3)ABSAAbsaTotalCalculation Snip shhot:STANBIC 43735292446204481173=SUM(C13:C15)Herfindahl-Hirschman Index (HHI)2018 BARCLAYS STotalBDE1 Years Bank Loan Advances Weightage Weightage^22STANBIC S 25,84,735.00332,04,859.00S 57,89,594.004Herfindahl-Hirschman Index (HHI)=C2/SC$4 =D2^2=C3/SC$4=D3^2Herfindahl-Hirschman Index (HHI)ABSAAbsaTotal=C7/C$10=C8/CS10=C9/C$10сSTANBIC S 39,46,591.0040,82,295.002,09,501.0082,38,387.00ABSAAbsa.TotalSS$Herfindahl-Hirschman Index (HHI)=C13/C$16=D13^2=C14/C$16 =D14^2=C15/C$16=D15^2STANBIC S 43,73,529.00S2,44,620.00S44,81,173.00S 90,99,322.00Herfindahl-Hirschman Index (HHI)44.64%55.36%=SUM(E2-E3)=10000*E447.90%49.55%2.54%=D7^2=D8^2=D9^248.06%2.69%49.25%=SUM(E7:19)=10000*E10=SUM(E13 E15)=10000*E1619.93%30.64%50.57%5057.3622.95%24.55%0.06%47.57%4756.760.2310180710.0007227130.24252993747.43%4742.71

HHI stands for Herfindahl-Hirschman Index, which is a measure of market concentration used to find…

Answered: An HHI index of less than 1500 is…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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An HHI index of less than 1500 is considered as an competative market place , and If HHI index value is in range of 1500 to 2500 is considered as moderetly Concentrated.if the valuegoes above 2500 then the market place is highly Concentrated.
So, In our All three years Value of HHI is above 2500 that shows in all three years that shows the there is very less competation in market or existence of very few players in all three years

Are your conclusions in the HHI consistent with the five firm concentration in all cases? Give two reasons to support your answer

1 Years
2
3
4 2018
5
6
7
8
9
10 2019
11
12
13
14
15
16 2020
17
5
6
7
8
9
10
11
12
13
14
15
16
17
Bank
STANBIC 2584735
BARCLAYS 3204859
Total
2019
2020
ABSA
Absa
Total
E
Loan Advances Weightage Weightage^2
Herfindahl-Hirschman Index (HHI)
STANBIC 3946591
4082295
209501
=SUM(C7:C9)
=SUM(C2:C3)
ABSA
Absa
Total
Calculation Snip shhot:
STANBIC 4373529
244620
4481173
=SUM(C13:C15)
Herfindahl-Hirschman Index (HHI)
2018 BARCLAYS S
Total
B
D
E
1 Years Bank Loan Advances Weightage Weightage^2
2
STANBIC S 25,84,735.00
3
32,04,859.00
S 57,89,594.00
4
Herfindahl-Hirschman Index (HHI)
=C2/SC$4 =D2^2
=C3/SC$4
=D3^2
Herfindahl-Hirschman Index (HHI)
ABSA
Absa
Total
=C7/C$10
=C8/CS10
=C9/C$10
с
STANBIC S 39,46,591.00
40,82,295.00
2,09,501.00
82,38,387.00
ABSA
Absa.
Total
S
S
$
Herfindahl-Hirschman Index (HHI)
=C13/C$16
=D13^2
=C14/C$16 =D14^2
=C15/C$16
=D15^2
STANBIC S 43,73,529.00
S
2,44,620.00
S
44,81,173.00
S 90,99,322.00
Herfindahl-Hirschman Index (HHI)
44.64%
55.36%
=SUM(E2-E3)
=10000*E4
47.90%
49.55%
2.54%
=D7^2
=D8^2
=D9^2
48.06%
2.69%
49.25%
=SUM(E7:19)
=10000*E10
=SUM(E13 E15)
=10000*E16
19.93%
30.64%
50.57%
5057.36
22.95%
24.55%
0.06%
47.57%
4756.76
0.231018071
0.000722713
0.242529937
47.43%
4742.71

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