This paper reviews the literature on the impact of ethnic diversity on economic development. Ethnically polarized societies are less likely to agree on the provision of public goods and more likely to engage in rent seeking activities providing lower levels of social capital. Initial conditions...

Economists differ in their explanation of changes in the rate of U.S.economic growth in the latter half of the 20th century-particularly for the "new economy" period from 1982-2000. Adherents of the Neoclassical Growth Model have emphasized that with the increase in the capital/labor ratio the...