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

Author: Louis Kuijs

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."

Volume/Issue: Volume 2000 Issue 049

Publication date: March 2000

ISBN: 9781451846836

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Topics covered in this book

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Business and Economics , Public Finance , WP , public spending , GDP , government spending , society , public goods , ethnic heterogeneity , GDP ratio , public expenditure outcome , policy choice , spending regression , heterogeneous society , public health expenditure outcome , Health care spending , Education spending , Africa

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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.”