Abstract

HERNANDEZ-OLIVA, Juan Josué; ALCARAZ, Jorge  and  MANSILLA-CORONA, Ricardo Lino. A scale to measure the concentration of the economic sectors of México using the Zipf coefficient. Cuad. Econ. [online]. 2020, vol.39, n.81, pp.919-947. ISSN 0121-4772.  https://doi.org/10.15446/cuad.econ.v39n81.60530.

This paper shows that the distribution of sales, net profit, assets and number of employees of the 500 largest companies in Mexico follow the Zipf Law. After calculating the Zipf coefficients for the period 2006-2017, they were used to create a scale that measures three different levels of intensity of competition among companies in six sectors of the Mexican economy. This scale indicates when the economic sector is concentrated and when the creation or destruction of companies is favoured. The Pareto principle was also found in the behaviour of the variables studied.

JEL: C22; L13; L43; M21.

Keywords : Zipf coefficient; economic concentration; Pareto principle; corporate entrepreneurship; large corporations.

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