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

Author/Editor:

Louis Kuijs

Publication Date:

March 1, 2000

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

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.”

Series:

Working Paper No. 2000/049

Subject:

English

Publication Date:

March 1, 2000

ISBN/ISSN:

9781451846836/1018-5941

Stock No:

WPIEA0492000

Pages:

20

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