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A simple characterization of the family of diversity indices

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  • Denis, Davydov
  • Weber, Shlomo

Abstract

Over the last twenty years economists have become increasingly interested whether the diversity enhances or impedes economic and social development of a society that consist of multiple distinct population groups. On the one hand, Sassen (2006) and Florida (2002) claim that ethnic and cultural diversity was a crucial factor in urban development. However, there is another line of research, originated by Mauro (1995) and Easterly and Levine (1997) (see also Ginsburgh and Weber, 2011), showing that an excessive degree of the societal fractionalization may have negative, and sometimes, catastrophic, consequences for economic and societal growth.

Suggested Citation

  • Denis, Davydov & Weber, Shlomo, 2016. "A simple characterization of the family of diversity indices," CEPR Discussion Papers 11528, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:11528
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    References listed on IDEAS

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    1. William Easterly & Ross Levine, 1997. "Africa's Growth Tragedy: Policies and Ethnic Divisions," The Quarterly Journal of Economics, Oxford University Press, vol. 112(4), pages 1203-1250.
    2. Walter Bossert & Conchita D'Ambrosio & Eliana La Ferrara, 2011. "A Generalized Index of Fractionalization," Economica, London School of Economics and Political Science, vol. 78(312), pages 723-750, October.
    3. Victor Ginsburgh & Shlomo Weber, 2011. "How Many Languages Do We Need? The Economics of Linguistic Diversity," Economics Books, Princeton University Press, edition 1, number 9481, December.
    4. Marta Reynal-Querol, 2002. "Ethnicity, Political Systems, and Civil Wars," Journal of Conflict Resolution, Peace Science Society (International), vol. 46(1), pages 29-54, February.
    5. Paolo Mauro, 1995. "Corruption and Growth," The Quarterly Journal of Economics, Oxford University Press, vol. 110(3), pages 681-712.
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    Cited by:

    1. Victor Ginsburgh & Shlomo Weber, 2018. "The Economics of Language," Working Papers ECARES 2018-18, ULB -- Universite Libre de Bruxelles.

    More about this item

    Keywords

    axioms; consistency; Diversity index; entropy; fractionalization;

    JEL classification:

    • F51 - International Economics - - International Relations, National Security, and International Political Economy - - - International Conflicts; Negotiations; Sanctions
    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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