Alternative Limited Cognitive Opportunities of the Herfindal-Hirschman Index for Studying Irregularities

Nina Yankova

Economic Thought journal, 2010, issue 5, 66-80

Abstract: A single methodological approach is presented to study structural changes and irregularities, based on the Euclidean distance and the possibility to decompose the total structural change into 2 factor impacts: d3 - changing the irregularity degree and d4 - changing the irregularity direction. The cognitive opportunities of the Herfindal-Hirschman Index to study the irregularities are elucidated therein. It was proven that only the factor impact d3 is recorded by means of this index. Arguments are provided for the necessity to record the dimensions of the statistic structure in the course of assessment of the irregularity degree of evolving complex processes and phenomena, characterized by internal structure. The Euclidean distance is applied to elaborate a table for limiting 3 degrees of irregularities according to the size of the tested statistical structure.

JEL-codes: C40 C68 (search for similar items in EconPapers)
Date: 2010
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