Data
The following examples use mainly fictitious data to present the
functions. However, if you want to test the functionality in more
detail, the package comes with a small data set of real Paraguayan
credit cooperatives (creditcoops). There are 22 paired observations for
real Paraguayan credit cooperatives (with assets > 11 Mio. USD) for
2016 and 2018 with their respective total loans granted. For a better
visualization there is an additional column with the transformed total
loans. For further information on the data please see the
creditcoops help
file. For a practical implementation you might be interested to read the
following article.
data("creditcoops")
head(creditcoops)
#> coop_id year total_loans paired total_loans_log
#> 1 1 2016 173892358 1 18.97395
#> 2 1 2018 199048199 1 19.10906
#> 3 2 2016 323892456 2 19.59592
#> 4 2 2018 461609439 2 19.95023
#> 5 3 2016 179981404 3 19.00836
#> 6 3 2018 227232008 3 19.24148
Group wrapper overview
At the moment, there are the following groups of functions
available:
- concstats_mstruct() is a wrapper for market structure
measures
- concstats_inequ() is a wrapper for inequality and
diversity measures
- concstats_comp() is a wrapper with different
concentration measures
- concstats_concstats() is a function which calculates a
set of pre-selected measures in a one step procedure to get a quick
overview of a given market structure
The functions will be presented in more details in the following
short step-by-step guide.
Examples
We will use a vector which represents market participants with their
respective market shares (in decimal form):
concstats_mstruct
The wrapper includes the following arguments to calculate individual
functions: firm, nrs_eq, top,
top3, top5, and all. You can also
pass the additional argument digits to all,
which controls for the number of digits to be printed.
All individual functions can be accessed directly with the prefix
“concstats_” (e.g. “concstats_firm” or “concstats_all_mstruct”).
test_share <- c(0.35, 0.4, 0.05, 0.1, 0.06, 0.04, 0, 0)
test_share_top5 <- concstats_top5(test_share) # top 5 market share in percentage
test_share_top5
#> [1] 96
You should have noticed that the market shares are in decimal form.
However, you can use integers or floating point numeric types to express
market shares. All concstats functions will take care of
this and convert theses vectors into decimal form. There are eight
market participants, however, two have no market shares, by default
concstats treats 0 as NA. The result is a top 5 market
share of 96 %.
You can also access each function through their respective argument in
the group wrapper:
test_share <- c(0.35, 0.4, 0.05, 0.1, 0.06, 0.04, 0, 0)
test_share_top <- concstats_mstruct(test_share, type = "top") # top market share
test_share_top
#> [1] 40
Or, just calculate all measures of the group wrapper, and store it in
a named object.
test_share <- c(0.35, 0.4, 0.05, 0.1, 0.06, 0.04, 0, 0)
test_share_mstruct <- concstats_mstruct(test_share, type = "all", digits = 3)
test_share_mstruct
#> Measure Value
#> 1 Firms 6.00
#> 2 Nrs_equivalent 3.33
#> 3 Top (%) 40.00
#> 4 Top3 (%) 85.00
#> 5 Top5 (%) 96.00
The result is a data frame of market structure measures.
concstats_inequ
The inequality and diversity group has the following arguments:
entropy, gini, simpson,
palma, grs, and all. They can
also be accessed as individual functions.
test_share <- c(0.35, 0.4, 0.05, 0.1, 0.06, 0.04)
test_share_entropy <- concstats_entropy(test_share)
test_share_entropy
#> [1] 0.787806
# and as a non-normalized value
test_share_entropy2 <- concstats_entropy(test_share, normalized = FALSE)
test_share_entropy2
#> [1] 2.036449
concstats_comp
The group wrapper for competition measures includes the following
arguments to calculate hhi, hhi_d,
hhi_min, dom, sten, and
all.
test_share <- c(0.35, 0.4, 0.05, 0.1, 0.06, 0.04, 0, 0)
test_share_hhi <- concstats_hhi(test_share)
test_share_hhi
#> [1] 0.3002
# a normalized value
test_share_hhi2 <- concstats_hhi(test_share, normalized = TRUE)
test_share_hhi2
#> [1] 0.16024
# the min average of the hhi
test_share_hhi3 <- concstats_comp(test_share, type = "hhi_min")
test_share_hhi3
#> [1] 0.1666667
concstats_concstats
A single function which calculates a set of eight pre-selected
measures in a one step procedure for a first overview of a given market
structure. The resulting data frame contains eight measures, which are:
number of firms with market share, numbers equivalent, the cumulative
share of the top (top 3 and top 5) firm(s) in percentage, the hhi index,
the entropy index, and the palma ratio.
test_share <- c(0.2, 0.3, 0.5)
test_share_conc <- concstats_concstats(test_share, digit = 2)
test_share_conc
#> Measure Value
#> 1 Firms 3.00
#> 2 Nrs_equivalent 2.63
#> 3 Top (%) 50.00
#> 4 Top3 (%) 100.00
#> 5 Top5 (%) 100.00
#> 6 HHI 0.38
#> 7 Entropy 0.94
#> 8 Palma ratio 2.50
Visualization
The scope of the package is to calculate market structure and
concentration measures to get a quick and more informed overview of a
given market situation. However, it is good practice to visualize your
data in an exploratory step or in reporting your results. The package
concstats works fine with other Exploratory Data Analysis
(EDA) packages or data visualization packages e.g. overviewR,
dataexplorer,
kableExtra
or ggplot2
to name a few.
Some examples on how you can accomplish this. Let us assume one would
like to use the group measure for e.g. market structure, and keep the
resulting data frame. We can refine the table using
kableExtra which works nice with knitr.
This time, we will use our creditcoops data set again,
which comes with the package.
data("creditcoops")
head(creditcoops)
#> coop_id year total_loans paired total_loans_log
#> 1 1 2016 173892358 1 18.97395
#> 2 1 2018 199048199 1 19.10906
#> 3 2 2016 323892456 2 19.59592
#> 4 2 2018 461609439 2 19.95023
#> 5 3 2016 179981404 3 19.00836
#> 6 3 2018 227232008 3 19.24148
You will need the following two packages. Make sure you have these
packages installed.
library(dplyr)
library(kableExtra)
Now, we will filter out data for the year 2016.
coops_2016 <- creditcoops %>% dplyr::filter(year == 2016)
head(coops_2016)
coops_2016 <- coops_2016[["total_loans"]] # atomic vector of total loans
coops_2016 <- coops_2016 / sum(coops_2016) # market shares in decimal form
# We then use the new object `coops_2016` to calculate the market structure
# measures as a group in a one-step-procedure and capture the results in a
# printed table:
coops_2016_mstruct <- concstats_mstruct(coops_2016, type = "all", digits = 2)
coops_2016_mstruct_tab <- coops_2016_mstruct %>%
kableExtra::kbl(caption = "Market structure 2016", digits = 2,
booktabs = TRUE, align = "r") %>%
kableExtra::kable_classic(full_width = FALSE, html_font = "Arial")
coops_2016_mstruct_tab
The result is a nice reusable table.
Now, let’s go a step further. We will compare the two samples for
2016 and 2018. For this purpose, we will select from our
creditcoops data set the relevant columns (coop_id, year,
paired, and total_loans_log) and make a new data frame.
Make sure you have the ggplot2 package installed. Load
the package.
library(ggplot2) # Data Visualizations Using the Grammar of Graphics
df_shares_plot <- df_shares %>%
ggplot(aes(year, total_loans_log, fill = year)) +
geom_boxplot() +
geom_point() +
geom_line(aes(group = paired)) +
labs(title = "Credit cooperatives (type A)", y = "Total loans (log)",
caption = "Source: Andreas Schneider with data from INCOOP") +
theme(legend.position = "none")
df_shares_plot
Having a look a the output, we see a box plot with paired values of
the cooperatives and the evolution of their respective total loans over
time for the two sample years 2016 and 2018.