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The Impact of Ethnic Heterogeneityon the Quantity and Quality of Public Spending

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  • Louis Kuijs

Abstract

The paper investigates empirically the impact of ethnic heterogeneity on the amount of public spending on health and education and the quality, or “technical efficiency” of spending. While it finds partial evidence for the claim that more heterogeneous societies spend less on public goods, it suggests that heterogeneity significantly affects the efficiency of public expenditure outcomes in terms of social indicators. The results suggest that the impact of heterogeneity on public expenditure outcomes is not just a public choice problem, but also an issue of “technical efficiency.”

Suggested Citation

  • Louis Kuijs, 2000. "The Impact of Ethnic Heterogeneityon the Quantity and Quality of Public Spending," IMF Working Papers 00/49, International Monetary Fund.
  • Handle: RePEc:imf:imfwpa:00/49
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    Cited by:

    1. Eris, Mehmet, 2010. "Population heterogeneity and growth," Economic Modelling, Elsevier, vol. 27(5), pages 1211-1222, September.
    2. Schaeffer, Merlin, 2013. "Ethnic diversity, public goods provision and social cohesion: Lessons from an inconclusive literature," Discussion Papers, Research Unit: Migration, Integration, Transnationalization SP VI 2013-103, Social Science Research Center Berlin (WZB).
    3. repec:pit:wpaper:347 is not listed on IDEAS
    4. Liang, Li-Lin & Mirelman, Andrew J., 2014. "Why do some countries spend more for health? An assessment of sociopolitical determinants and international aid for government health expenditures," Social Science & Medicine, Elsevier, vol. 114(C), pages 161-168.
    5. Bridgman, Benjamin, 2008. "Why are ethnically divided countries poor?," Journal of Macroeconomics, Elsevier, vol. 30(1), pages 1-18, March.
    6. Stichnoth, Holger & van der Straeten, Karine, 2009. "Ethnic diversity and attitudes towards redistribution: a review of the literature," ZEW Discussion Papers 09-036, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    7. Benjamin Bridgman, 2004. "Multiethnic Democracy," Departmental Working Papers 2004-02, Department of Economics, Louisiana State University.
    8. Bridgman, Benjamin, 2008. "Why are ethnically divided countries poor?," Journal of Macroeconomics, Elsevier, vol. 30(1), pages 1-18, March.

    More about this item

    Keywords

    Government expenditures; government spending; public goods; ethnic heterogeneity; schooling; public spending; public health; infant mortality; education spending;

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