Ethnic Diversity and Public Goods Provision
| Autor: | Dongwon Lee, Soomi Lee, Thomas E. Borcherding |
|---|---|
| Rok vydání: | 2016 |
| Předmět: |
Price elasticity of demand
Sociology and Political Science Public economics 05 social sciences Ethnic group Public good 0506 political science Urban Studies Public spending Local government Cultural diversity 0502 economics and business 050602 political science & public administration Business 050207 economics |
| Zdroj: | Urban Affairs Review. 52:685-713 |
| ISSN: | 1552-8332 1078-0874 |
| DOI: | 10.1177/1078087415587055 |
| Popis: | We revisit the claim that ethnic heterogeneity—the degree to which different ethnic groups make up the population—reduces local government spending on various public goods. Our analysis suggests that heterogeneity does not necessarily reduce local public spending due to two factors: (1) the low price elasticity of demand for local public goods and (2) the substitution between public goods. Using data from American cities and school districts from 2000 to 2010, we find that ethnic heterogeneity has offsetting positive and negative effects on various types of local government spending. Our findings imply that local governments respond to an increase in ethnic heterogeneity by rebalancing local public spending—for instance, adopting a policy that reallocates resources from roads to police and fire protection. |
| Databáze: | OpenAIRE |
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