Public goods and ethnic divisions:

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 datasets: US cities, US metropolitan areas, and US urban counties. Results show that productive...

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Bibliographic Details
Main Authors: Alesina, Alberto 1957-2020 (Author), Baqir, Reza (Author), Easterly, William 1957- (Author)
Format: Book
Language:English
Published: Cambridge, Mass. 1997
Series:National Bureau of Economic Research <Cambridge, Mass.>: NBER working paper series 6009
Subjects:
Online Access:Volltext
Summary: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 datasets: US cities, US metropolitan areas, and US urban counties. Results show that productive public goods -- education, roads, libraries, sewers and trash pickup -- in US cities (metro areas/urban counties) are inversely related to the city's (metro area's/county's) ethnic fragmentation, even after controlling for other socioeconomic and demographic determinants. Ethnic fragmentation is negatively related to the share of local spending on welfare. The results are mainly driven by observations in which majority whites are reacting to varying sizes of minority groups. We conclude that ethnic conflict is an important determinant of local public finances.
Physical Description:31 S. graph. Darst.

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