Journal Article

Diversification as Income Maximizing Strategy

Authors

  • Lechthaler
  • W.
Publication Date

In a simple model, I demonstrate that the U-shaped relationship

between income and income diversification typically found in developing

countries can be explained without any risk considerations. It

might be the result of pure income maximization in an environment with limited

possibilities.

Info

JEL Classification
I30, O15

Key Words

  • developing countries
  • Entwicklungsländer
  • Income diversification
  • U-shape