Ethnic diversity is often seen to be detrimental to peace and stability, particularly if ethnicity is the basis for political mobilization. Mobilization is assumed to increase the salience of ethnicity, and with it in-group cohesion, out-group animosity, and national instability; yet the...

A central argument for trade liberalization is that when the 'gains from trade' are shared, countries see large gains in economic development. In this paper, I empirically evaluate this argument and assess the impact of elite capture on regional development. Africa provides a unique study ground...

The problems about diversity concern various themes. We will show that the economic theory can contribute by itself to the debate in progress. It could seem paradoxical, but what is called the "dismal science" can serve to attenuate some pessimistic attitudes, putting in prominence a perspective...

Some researchers claim that diverse populations lead to less trust. Generalized trust is a core value that leads to positive outcomes in societies

We analyse interethnic cooperation in an infinitely repeated prisoner's dilemma when members of one group are unable to target punishment towards individual defectors from the other group. We first show that indiscriminate outgroup punishment may sustain cooperation in this setting. Our main...

This paper examines the endogenous relationship between the economic and cultural integration of migrants in Switzerland or, more precisely, how economic and cultural barriers to integration reinforce each other. Are cultural differences preventing the successful integration of migrants or does...

We construct a dynamic theory of civil conflict hinging on inter-ethnic trust and trade. The model economy is inhabitated by two ethnic groups. Inter-ethnic trade requires imperfectly observed bilateral investments and one group has to form beliefs on the average propensity to trade of the other...

We construct a model in which a number of equally powerful ethnic groups compete for power by engaging in civil war. In non-redistributive equilibrium, ethnically homogeneous and ethnically diverse countries face a lower probability of civil war than countries with a moderate degree of ethnic...

s in earlier studies