10 October 2019 4 3K Report

Hi,

I'm analyzing a dataset with the yearly concentration indexes of 50 different sectors (e.g., automobiles, pharmaceuticals, etc.) of a specific country from 1996 until 2016.

However, I recently realized that the government of this country changed this classification from 2007 to 2008 and some companies that were classified in a sector were relocated to a different one. For example, companies that provide reparation services for a chemical industry used to be classified under the sector CHEMICALS, and now they are under the sector SERVICE TO INDUSTRIES. Consequently, the concentration indexes of some sectors were affected.

In my analysis, I want to get rid of all companies from any sector that presented significant changes in their concentration indexes from 2007 to 2008. Hence, my question is: how can I test if there was a significant change in the concentration indexes from 2007 to 2008? I thought about running a t-test comparing the indexes from 96 - 07 to the indexes from 08 to 16 for each sector, but I'm not sure if this is the best way to test, especially considering that it's common to have trends in the concentration.

Any help would be very welcomed!

Thank you,

Best,

Marco

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