A simple characterization of the family of diversity indices
Shlomo Weber and
Denis Davydov
No 11528, CEPR Discussion Papers from Centre for Economic Policy Research
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.
Keywords: Diversity index; Consistency; Axioms; Entropy; Fractionalization (search for similar items in EconPapers)
JEL-codes: F51 F63 Z13 (search for similar items in EconPapers)
Date: 2016-09
New Economics Papers: this item is included in nep-evo
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Citations: View citations in EconPapers (10)
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