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A Generalized Index of Fractionalization

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Author Info
BOSSERT, Walter
D’AMBROSIO, Conchita
LA FERRARA, Eliana

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Abstract

The goal of this paper is to contribute to the economic literature on ethnic and cultural diversity by proposing a new index that is informationally richer and more flexible than the commonly used ‘ethno-linguistic fractionalization’ (ELF) index. We characterize a measure of diversity among individuals that takes as a primitive the individuals, as opposed to ethnic groups, and uses information on the extent of similarity among them. Compared to existing indices, our measure does not require that individuals are pre-assigned to exogenously determined categories or groups. We show that our generalized index is a natural extension of ELF and is also simple to compute. We also provide an empirical illustration of how our index can be operationalized and what difference it makes as compared to the standard ELF index. This application pertains to the pattern of fractionalization in the United States.

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Publisher Info
Paper provided by Universite de Montreal, Departement de sciences economiques in its series Cahiers de recherche with number 2008-01.

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Length: 35 pages
Date of creation: 2008
Date of revision:
Handle: RePEc:mtl:montde:2008-01

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Related research
Keywords: Diversity; Similarity; Ethno-Linguistic Fractionalization.;

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Find related papers by JEL classification:
C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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References listed on IDEAS
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  1. Esteban, J.M. & Ray, D., 1992. "On the Measurement of Polarization," UFAE and IAE Working Papers 171.92, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
    Other versions:
  2. Alberto Alesina & Eliana La Ferrara, 2005. "Ethnic Diversity and Economic Performance," Journal of Economic Literature, American Economic Association, vol. 43(3), pages 762-800, September. [Downloadable!] (restricted)
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  3. Pattanaik, Prasanta K. & Xu, Yongsheng, 2000. "On diversity and freedom of choice," Mathematical Social Sciences, Elsevier, vol. 40(2), pages 123-130, September. [Downloadable!] (restricted)
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  4. Alberto Alesina & Eliana La Ferrara, 2000. "Participation In Heterogeneous Communities," The Quarterly Journal of Economics, MIT Press, vol. 115(3), pages 847-904, August. [Downloadable!] (restricted)
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  5. Alberto Alesina & Arnaud Devleeschauwer & William Easterly & Sergio Kurlat & Romain Wacziarg, 2002. "Fractionalization," Harvard Institute of Economic Research Working Papers 1959, Harvard - Institute of Economic Research. [Downloadable!]
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    • Wacziarg, Romain & Alesina, Alberto & Devleeschauwer, Arnaud & Easterly, William & Kurlat, Sergio, 2002. "Fractionalization," Research Papers 1744, Stanford University, Graduate School of Business. [Downloadable!]
    • Alberto Alesina & Arnaud Devleeschauwer & William Easterly & Sergio Kurlat & Romain Wacziarg, 2003. "Fractionalization," NBER Working Papers 9411, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    • Alesina, Alberto, et al, 2003. " Fractionalization," Journal of Economic Growth, Springer, vol. 8(2), pages 155-94, June. [Downloadable!] (restricted)
  6. Mauro, Paolo, 1995. "Corruption and Growth," The Quarterly Journal of Economics, MIT Press, vol. 110(3), pages 681-712, August. [Downloadable!] (restricted)
  7. Vigdor, Jacob L., 2002. "Interpreting ethnic fragmentation effects," Economics Letters, Elsevier, vol. 75(2), pages 271-276, April. [Downloadable!] (restricted)
  8. Easterly, William & Levine, Ross, 1997. "Africa's Growth Tragedy: Policies and Ethnic Divisions," The Quarterly Journal of Economics, MIT Press, vol. 112(4), pages 1203-50, November.
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  9. Francesco Caselli & Wilbur John Coleman II, 2006. "On the Theory of Ethnic Conflict," NBER Working Papers 12125, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  10. Alberto Alesina & Reza Baqir & Caroline Hoxby, 2004. "Political Jurisdictions in Heterogeneous Communities," Journal of Political Economy, University of Chicago Press, vol. 112(2), pages 348-396, April. [Downloadable!] (restricted)
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  11. Fearon, James D, 2003. " Ethnic and Cultural Diversity by Country," Journal of Economic Growth, Springer, vol. 8(2), pages 195-222, June. [Downloadable!] (restricted)
  12. Desmet, Klaus & Ortuño-Ortín, Ignacio & Weber, Shlomo, 2005. "Peripheral Diversity and Redistribution," CEPR Discussion Papers 5112, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  13. BOSSERT, Walter & PATTANAIK, Prasanta K. & XU, Yongsheng, 2001. "The Measurement of Diversity," Cahiers de recherche 2001-17, Universite de Montreal, Departement de sciences economiques. [Downloadable!]
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  14. Alesina, Alberto & Baqir, Reza & Easterly, William, 1999. "Public goods and ethnic divisions," Policy Research Working Paper Series 2108, The World Bank. [Downloadable!]
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  15. Bossert, W. & Pattanaik, P.K. & Xu, Y., 2002. "Similarity of Options and the Measurement of Diversity," Cahiers de recherche 11-2002, Centre interuniversitaire de recherche en économie quantitative, CIREQ. [Downloadable!]
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  16. Martin L. Weitzman, 1998. "The Noah's Ark Problem," Econometrica, Econometric Society, vol. 66(6), pages 1279-1298, November.
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This page was last updated on 2009-11-29.

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