Public Goods and Ethnic Divisions

@article{Alesina1997PublicGA,
  title={Public Goods and Ethnic Divisions},
  author={Alberto F. Alesina and William R. Easterly and Reza Baqir},
  journal={NBER Working Paper Series},
  year={1997}
}
The authors 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. 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) ethnic fragmentation, even after controlling for other socioeconomic and demographic determinants. They conclude that the… 
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