What is the main reason why economic or political conflict may organize around ethnic lines?

the supposed “objective” nature and visibility of ethnic identity is often advocated as the primary reason why economic or political conflict may organize around ethnic lines even when the underlying preferences are not intrinsically about ethnicity.

What is the first order condition for an interior solution with respect to K?

The first order condition for an interior solution with respect to K is:uc(·)(1− t)fK + vg(·)tNfK = −vK(·) (7) and the second order conditions are satisfied.

What is the relationship between social heterogeneity and project maintenance?

“social heterogeneity” - measured as the fragmentation into different clans, political and religious groups - is negatively associated with project maintenance.

What is the first order condition that defines an interior solution for this problem?

The problem is:max N [u(c) + v(g,K)]s.t. Nc+ g = Nf(x,K)g = tNf(x,K)The first order condition that defines an interior solution for this problem is:Nvg(·) = uc(·).

What is the recent attempt at formalizing the concept of endogenous ethnic identity?

While the notion of endogenous ethnic identity is becoming increasingly popular among social scientists, to their knowledge the only attempt at formalizing it in the context of an economic model is the recent work by Caselli and Coleman (2002).

What is the reason why the structure of public policies can change over time?

Local economic policies have also played a role: the structure of public policies such as education spending is such that the racial or ethnic composition of a given area can also shift over time as a result of policy changes.

What is the first order condition for an interesting comparative statics exercise?

5An interesting comparative statics exercise regards the effect of an increase in x (individual level of input/productivity) on the optimal number of groups.

Open AccessJournal Article10.2139/SSRN.569881

Ethnic Diversity and Economic Performance

Alberto Alesina, +4 more

- 01 Feb 2004

- Social Science Research Network

1.9K

TL;DR: In this article, the authors survey and assess the literature on the positive and negative effects of ethnic diversity on economic policies and outcomes and highlight several open issues in need of further research.

Abstract: We survey and assess the literature on the positive and negative effects of ethnic diversity on economic policies and outcomes. Our focus is on both focus both cities in developed countries (the US) and villages in developing countries. We also consider the endogenous formation of political jurisdictions and we highlight several open issues in need of further research.

AI Agents for this Paper

Find similar papers on Google Scholar, PubMed and Arxiv
Write a critical review of this paper
Analyze citations of this paper to find unaddressed research gaps

Most frequently asked questions

1. What are the contributions in this paper?

The authors also consider the endogenous formation of political jurisdictions and they highlight several open issues in need of further research.

2. What is the reason for the lower propensity to trust of resettled villagers?

From the results of her trust game, Barr concludes that the lower propensity to trust of resettled villagers is due not to differences in altruism or in socially transmitted norms, but to the lower density of kinship ties.

3. What is the expected sign of the interaction between fractionalization and GDP?

In all four regressions the interaction of initial GDP per capita and fractionalization has the expected (positive) sign, suggesting that indeed fractionalization has more negative effects at lower levels of income.

4. What is the expected sign of the interaction with the Gastil index?

Note the index is a decreasing measure of democracy so the expected sign on the interaction with the fractionalization is negative.

Table 3: Fractionalization, Democracy and Long-run growth (dependent variable is growth of per capita GDP)

Table 2: Fractionalization and Long-run growth (dependent variable is growth of per capita GDP)

Table 6: Fractionalization, Income and Population Growth in Counties (dependent variable is growth in log of population 1970-2000)

Table 5: Fractionalization and Population Growth in US Counties (dependent variable is growth in log of population 1970-2000)

Table 4: Fractionalization, Democracy and Long-run growth (dependent variable is growth of per capita GDP)

Table 1: Fractionalization and Long-run growth (dependent variable is growth of per capita GDP)

Citations

•Posted Content

Measuring Cultural Diversity and its Impact on Innovation: Longitudinal Evidence from Dutch firms*

Ceren Ozgen, +2 more

- 01 Jan 2013

- Research Papers in Economics

Abstract: To investigate econometrically whether cultural diversity of a firm’s employees boosts innovation, we create a unique linked employer‐employee dataset that combines data from two innovation surveys in The Netherlands with administrative and tax data We calculate three distinct measures of diversity We find that firms that employ fewer foreign workers are generally more innovative, but that diversity among a firm’s foreign workers is positively associated with innovation activity The positive impact of diversity on product or process innovations is greater among firms in knowledge-intensive sectors and in internationally‐oriented sectors The impact is robust to accounting for endogeneity of foreign employment

...read moreread less

Journal Article•10.1016/J.JFINECO.2021.06.003

Epidemic disease and financial development

Christian Hannick, +4 more

- 01 Jan 2022

- Journal of Financial Economics

TL;DR: In this paper, the impact of an epidemic disease on modern financial development by exploiting geographic variations in the precolonial survival conditions of the TseTse fly, which transmits a disease that is harmful to humans and fatal to livestock in Africa, is studied.

...read moreread less

Journal Article•10.1007/S10368-017-0393-3

Political instability, ethnic fractionalization and economic growth

Pooja Karnane, +1 more

- 01 Apr 2019

- International Economics and Economic Pol...

TL;DR: The authors empirically modeled the impact of ethnic fractionalization and corruption on economic growth, both directly and indirectly through their role in affecting political stability in 157 countries from 1996 to 2014.

...read moreread less

•Posted Content

International Knowledge Spillovers: The Benefits from Employing Immigrants

Jürgen Bitzer, +2 more

- 01 Mar 2015

- Research Papers in Economics

TL;DR: In this paper, the role of immigrant employees for a firm's capability to absorb international knowledge is explored using matched employer-employee data from Denmark for the years 1999 to 2009.

...read moreread less

•Journal Article•10.1093/RESTUD/RDAA037

A Theory of Strategic Uncertainty and Cultural Diversity

Willemien Kets, +1 more

- 01 Feb 2021

- The Review of Economic Studies

TL;DR: The authors identify a new mechanism through which cultural diversity affects economic outcomes, based on a model of culture as shared cognition, which can help better understand a variety of disparate evidence, including why homogeneous societies can be more conformist, why diverse societies may get stuck in a low-trust trap, and why companies with a strong culture may fail to adopt superior work practices.

...read moreread less

...

Expand

References

Journal Article•10.1086/257839

A Pure Theory of Local Expenditures

Charles M. Tiebout

- 01 Oct 1956

- Journal of Political Economy

TL;DR: The authors show that the Musgrave-Samuelson analysis, which is valid for federal expenditures, need not apply to local expenditures, and restate the assumptions made by Musgrave and Samuelson and the central problems with which they deal.

...read moreread less

14.1K

•Book

The Logic of Collective Action

Robert T. Golembiewski, +1 more

- 01 Jan 1965

12.1K

Journal Article•10.2307/2946696

Corruption and Growth

Paolo Mauro

- 01 Aug 1995

- Quarterly Journal of Economics

TL;DR: In this paper, a newly assembled data set consisting of subjective indices of corruption, the amount of red tape, the efficiency of the judicial system, and various categories of political stability for a cross section of countries is analyzed.

...read moreread less

8.5K

•Journal Article•10.1017/S0003055403000534

Ethnicity, Insurgency, and Civil War

James D. Fearon, +1 more

- 01 Feb 2003

- American Political Science Review

TL;DR: This article showed that the current prevalence of internal war is mainly the result of a steady accumulation of protracted conflicts since the 1950s and 1960s rather than a sudden change associated with a new, post-Cold War international system.

...read moreread less

7.6K

•Book

The Clash of Civilizations and the Remaking of World Order

Samuel P. Huntington

- 01 Jan 1996

TL;DR: Based on the author's seminal article in "Foreign Affairs", Samuel P. Huntington's "The Clash of Civilizations and the Remaking of World Order" is a provocative and prescient analysis of the state of world politics after the fall of communism.

...read moreread less

...

Expand

Ethnic Diversity and Economic Performance

Chat with Paper

AI Agents for this Paper

Most frequently asked questions

1. What are the contributions in this paper?

2. What is the reason for the lower propensity to trust of resettled villagers?

3. What is the expected sign of the interaction between fractionalization and GDP?

4. What is the expected sign of the interaction with the Gastil index?

5. What is the main reason why economic or political conflict may organize around ethnic lines?

6. What is the first order condition for an interior solution with respect to K?

7. What is the relationship between social heterogeneity and project maintenance?

8. What is the first order condition that defines an interior solution for this problem?

9. What is the recent attempt at formalizing the concept of endogenous ethnic identity?

10. What is the reason why the structure of public policies can change over time?

11. What is the first order condition for an interesting comparative statics exercise?

Figures

Citations

Measuring Cultural Diversity and its Impact on Innovation: Longitudinal Evidence from Dutch firms*

Epidemic disease and financial development

Political instability, ethnic fractionalization and economic growth

International Knowledge Spillovers: The Benefits from Employing Immigrants

A Theory of Strategic Uncertainty and Cultural Diversity

References

A Pure Theory of Local Expenditures

The Logic of Collective Action

Corruption and Growth

Ethnicity, Insurgency, and Civil War

The Clash of Civilizations and the Remaking of World Order

Related Papers (5)

Ethnic diversity, social sanctions, and public goods in Kenya

Ethnic and Cultural Diversity by Country

Corruption and Growth

Ethnic Groups in Conflict.

Institutions, Institutional Change, and Economic Performance