40 Pages Posted: 25 Mar 2003
Date Written: January 2003
The purpose of the paper is to enrich the standard toolbox for measuring diversity in economics. In so doing, we compare the indicators of diversity used by economists with those used by biologists and ecologists.
Ecologists and biologists are concerned about biodiversity: The diversity of organisms that inhabit a given area. Concepts of species diversity such as alpha (diversity within community), beta (diversity across communities) and gamma (diversity due to differences among samples when they are combined into a single sample) have been developed (Whittaker, 1960). Biodiversity is more complex than just the species that are present, it includes species richness and species evenness. Those various aspects of diversity are measured by biodiversity indices such as Simpson's Diversity Indices, Species Richness Index, Shannon Weaver Diversity Indices, Patil and Taillie Index, Modified Hill's Ratio.
In economics, diversity measures are multi-faceted ranging from inequality (Lorenz curve, Gini coefficient, quintile distribution), to polarisation (Esteban and Ray, 1994; Wolfon, 1994, D'Ambrosio (2001)) and heterogeneity (Alesina, Baqir and Hoxby, 2000). We propose an interdisciplinary comparison between indicators. In particular, we review their theoretical background and applications. We provide an assessment of their possible use and interest according to their specific properties.
Keywords: Diversity, Growth, Knowledge
JEL Classification: C1
Suggested Citation: Suggested Citation
Ottaviano, Gianmarco I.P. and Pinelli, Dino and Maignan, Carole Juliette and Rullani, Francesco, Bio-Ecological Diversity vs. Socio-Economic Diversity: A Comparison of Existing Measures (January 2003). FEEM Working Paper No. 13.2003. Available at SSRN: https://ssrn.com/abstract=389043 or http://dx.doi.org/10.2139/ssrn.389043