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Ethnic Heterogeneity and the Private Provision of Public Goods

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  • Matthias Schündeln

Abstract

Theoretically, more ethnic heterogeneity may lead to higher aggregate provision of privately provided public goods if ethnic heterogeneity increases the uncertainty about the aggregate level of public good provision. Empirical results in this article, which are based on household survey data from Kampala, Uganda, show robust evidence that an increase in ethnic heterogeneity is associated with an increase in the willingness to contribute to public goods. The findings suggest that the mechanism, through which public goods are provided, that is whether they are provided publicly or privately, is important in understanding the role of ethnic diversity in public goods provision.

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  • Matthias Schündeln, 2013. "Ethnic Heterogeneity and the Private Provision of Public Goods," Journal of Development Studies, Taylor & Francis Journals, vol. 49(1), pages 36-55, January.
    • Handle: RePEc:taf:jdevst:v:49:y:2013:i:1:p:36-55
    DOI: 10.1080/00220388.2012.658372
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    1. José Garcia Montalvo & Marta Reynal-Querol, 2002. "Why ethnic fractionalization? Polarization, ethnic conflict and growth," Economics Working Papers 660, Department of Economics and Business, Universitat Pompeu Fabra, revised Sep 2002.
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    2. Keuschnigg, Marc & Schikora, Jan, 2014. "The dark side of leadership: An experiment on religious heterogeneity and cooperation in India," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 48(C), pages 19-26.

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