We document racial differences in retail prices paid for physically identical products. Black households pay 2.0 percent higher prices than white households, and Hispanic households pay 0.8 percent higher prices. This difference suggest that conventional measures of racial income differences...

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...