Public Goods and Ethnic Divisions


Book Description

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.







The Oxford Handbook of the Quality of Government


Book Description

Recent research demonstrates that the quality of public institutions is crucial for a number of important environmental, social, economic, and political outcomes, and thereby human well-being. The Quality of Government (QoG) approach directs attention to issues such as impartiality in the exercise of public power, professionalism in public service delivery, effective measures against corruption, and meritocracy instead of patronage and nepotism. This Handbook offers a comprehensive, state-of-the-art overview of this rapidly expanding research field and also identifies viable avenues for future research. The initial chapters focus on theoretical approaches and debates, and the central question of how QoG can be measured. A second set of chapters examines the wealth of empirical research on how QoG relates to democratization, social trust and cohesion, ethnic diversity, happiness and human wellbeing, democratic accountability, economic growth and inequality, political legitimacy, environmental sustainability, gender equality, and the outbreak of civil conflicts. The remaining chapters turn to the perennial issue of which contextual factors and policy approaches—national, local, and international—have proven successful (and not so successful) for increasing QoG. The Quality of Government approach both challenges and complements important strands of inquiry in the social sciences. For research about democratization, QoG adds the importance of taking state capacity into account. For economics, the QoG approach shows that in order to produce economic prosperity, markets need to be embedded in institutions with a certain set of qualities. For development studies, QoG emphasizes that issues relating to corruption are integral to understanding development writ large.




Ethnic Divisions and Public Goods Provision, Revisited


Book Description

A considerable amount of recent work in political science and economics builds from the hypothesis that ethnic heterogeneity leads to poor provision of public goods, a key component of poor governance. Much of this work cites Alesina, Baqir and Easterly as providing empirical proof. This paper argues that the findings of this article have been significantly overstated. Through a simple re-analysis of the data, it shows that ethnic diversity does not straightforwardly undermine public goods provision. Rather, at least in these data, the relationship is mixed for different public goods: ethnic diversity is related to lower provision of some public goods and to higher provision of others. In some cases, there is no clear relationship. The differences between the findings presented here and those of the original article are arguably subtle, but are worth noting because of Alesina, et al.'s important contribution to the literature.







Ethnic Diversity and Solidarity


Book Description

Ethnic diversity and solidarity are often thought to be at odds with each other. In an increasingly diverse society, individuals find it more difficult to identify with other citizens and, therefore, are less willing to show solidarity. Empirical tests of the relationship between diversity and solidarity are, however, inconclusive. This book tests the hypothesis that diversity undermines solidarity in various ways. It discusses the meaning of social solidarity and the different motives that people can have to act solidary, and it examines the relationship between ethnic diversity and solidarity at the national, regional and local levels. These empirical tests use multiple methods, such as an international survey, a vignette study among the Dutch population, and a field experiment involving visitors to a popular market in Amsterdam. The role of the mass media is examined by studying the images of different ethnic groups that are presented in some popular newspapers, TV programmes and a news provider on the Internet. The collection concludes that, although ethnicity is certainly an important factor in understanding patterns of solidarity, there is not a simple linear relationship between ethnic diversity and solidarity. Even though ethnic difference in itself may be a source of discrimination, one cannot conclude from this that increasing ethnic diversity will necessarily result in less solidarity.




Ethnicity, Governance and the Provision of Public Goods


Book Description

Ethnicity is an important institution and one that impacts on the quality of governance. This paper focuses on the behaviour of ethnic groups and specifically on their impact on the provision of public goods. The paper shows that ethnic heterogeneity results in under-provision of non-excludable public goods. On the other hand, such societies are associated with a high prevalence of patronage goods. The paper proposes some areas of research such as the economics of ethnic institutions, empirical investigation of the role ethnic groups on public goods provision, tax compliance and institutional reforms to improve governance.