Public Goods and Ethnic Divisions [book]

Alberto Alesina, Reza Baqir, William Easterly
1999 Policy Research Working Papers  
We present a model that links heterogeneity of preferences across ethnic groups in a city to the amount and type of public good the city supplies. We test the implications of the model with three related data sets: U. S. cities, U. S. metropolitan areas, and U. S. urban counties. Results show that the shares of spending on productive public goods --education, roads, sewers and trash pickup --in U. S. cities (metro areas/urban counties) are inversely related to the city's (metro area's/county's)
more » ... ro area's/county's) ethnic fragmentation, even after controlling for other socioeconomic and demographic determinants. We conclude that ethnic conflict is an important determinant of local public finances.
doi:10.1596/1813-9450-2108 fatcat:hchdzn5cjjbenadrkkadckf5ba