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Stability of Nations and Genetic DiversityÂ

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Author Info
Klaus Desmet () (Universidad Carlos III, Getafe (Madrid), Spain, and CEPR)
 Ignacio Ortunoâ€Ortin () (Universidad Carlos III, Getafe (Madrid), Spain)
 Shlomo Weber () (Southern Methodist University, Dallas, USA, CORE, Catholic University of Louvain, Louvain-la-Neuve, Belgium, and CEPR)

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Abstract

This paper investigates the effect of linguistic diversity on redistribution in a broad cross-section of countries. We use the notion of "linguistic distances" and show that the commonly used fractionalization index, which ignores linguistic distances, yields insignificant results. However, once distances between languages are accounted for, linguistic diversity has both a statistically and economically significant effect on redistribution. With an average level of redistribution of 9.5% of GDP in our data set, an increase by one standard deviation in the degree of diversity lowers redistribution by approximately one percentage point. We also demonstrate that other measures, such as polarization and peripheral heterogeneity, provide similar results when linguistic distances are incorporated.

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File URL: http://www.iset.ge/files/004-08.pdf
File Format: application/pdf
File Function: First version, 2008
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Publisher Info
Paper provided by International School of Economics at TSU, Tbilisi, Republic of Georgia in its series Working Papers with number 004-08.

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Length: 34 pages
Date of creation: Jul 2008
Date of revision:
Handle: RePEc:tbs:wpaper:08-004

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Related research
Keywords: nation formation; genetic diversity; cultural heterogeneity; secession; uniï¬cation; European Union;

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Find related papers by JEL classification:
H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General
F02 - International Economics - - General - - - International Economic Order; Noneconomic International Organizations;; Economic Integration and Globalization: General
H40 - Public Economics - - Publicly Provided Goods - - - General

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