Empirical evidence illustrates that diversity generates both economic costs and benefits. This paper develops a theoretical model that accounts for the positive and deleterious effects of heterogeneity. First, an expanded Solow Growth Model demonstrates that the direct effects of diversity can...

The paper investigates the determinants of ethnic heterogeneity of the Italian provinces. Among other factors, the paper tests empirically whether gradual improvements in distant communication boost the generation of ethnically heterogeneous provinces. Consequently to easier communication,...