Theoretical and Applied Considerations FIRST DRAFT

A growing literature especially investigates the determinants of long run cultural diversity, but this literature generally avoids the problem of defining and measuring diversity precisely. In this paper, we present a formal framework in order to measure diversity that takes into account the three dimensions of diversity (variety, balance, disparity). We discuss the relevance of two indexes (the Shannon-Wiener entropy index and the Stirling index), and we show that it is necessary to introduce a new index (HAI index) in order to better understand the scope of diversity in a given country. Then, we apply the different indexes to the measurement of diversity in the case of book edition (especially translations in literature) in 20 OECD countries from 1979 to 2005. We put forward some elements of interpretation of the differences in the relative level of diversity between those countries. JEL Codes. L82, Z11 Key words. Cultural diversity; book industry; cultural economics We are indebted to Andrew Stirling for detailed comments on a previous version of section 2. Though they were partially taken into account, the authors remain solely responsible for the whole text to follow. 2 1. Introduction