However, because the pluralism measure is based on a

Herfindahl index, which is simply the sum of the squared shares, B&M's inclusion of both 1 - H and the shares introduces an odd quadratic specification in which the quadratic term for each share is constrained to have the same coefficient, Roman Catholicism enters only with the quadratic term and not an associated linear term, and the shares for Buddhists and Other Eastern Religions are constrained to have the same coefficient (since B&M combine these two in the share but not the Herfindahl calculation).

[HI.sub.it] The

Herfindahl Index (sum of squared market shares) for industry i, year t is used to measure the market structure in each sector.

Public nonteaching hospitals are more likely to be located in a less competitive market, indicated by a larger

Herfindahl index. (8) Public teaching hospitals are even more different from private hospitals.

Measuring inter-hospital competition within each hospital's county, a

Herfindahl index was computed using bed size data for short-term general hospitals from the Area Resource File [USDHHS, 1998].

Previous research (Emmons and Schmid, 1999a) finds a link between the concentration of local commercial-bank deposit shares (as measured by the

Herfindahl index) and indicators of credit-union efficiency (wage expense) and risk-taking (loan-loss allowances).

Patients living in the same MSA (or county for non-MSA residents) were all assigned the same value for facilities-per-square-mile and the

Herfindahl index covariates (defined as the sum of squares of each facility's market share in the MSA or county).

Market growth and per capita income are the most important variables, but the

Herfindahl index, a measure of market concentration, also plays a role after controlling for costs.

Herfindahl index is calculated as the sum of squares of the financial market shares of all Compustat firms in the Fama-French (1997) 48-industry classification.

The ratings on six P&I classes were affirmed because the transaction's key metrics, including Moody's loan-to-value (LTV) ratio, Moody's stressed debt service coverage ratio (DSCR) and the transaction's

Herfindahl Index (Herf), are within acceptable ranges.

We adopt the

Herfindahl index of the number of financial institutions as a proxy for the intensity of competition among financial institutions.

Although a

Herfindahl index of 1 (indicating that 100% of ownership is concentrated in a single shareholder) leads to a decrease of 7.33% (the coefficient's marginal effect) in the likelihood of having a board, a

Herfindahl index of 0.2 (the theoretical minimum for our measure, which indicates that the firm's equity is divided equally among the five largest shareholders) leads to a decrease of only 1.5% in the probability of having a board.

using a

Herfindahl index based on the ratio of the number of