Title The impact of ethnic heterogeneity on the quantity and quality of public spending / prepared by Louis Kuijs

Published [Washington, D.C.] : International Monetary Fund, Fiscal Affairs Department, 2000 ©2000

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Description 1 online resource (20 pages) Series IMF working paper ; WP/00/49 IMF working paper ; WP/00/49. Summary Empirical research into the impact of heterogeneity on government output has focussed mainly on its impact on policy choices. As regards the provision of public goods, research has focussed on the impact of heterogeneity on the amount of spending. This paper investigates empirically the impact of heterogeneity on both the amount and quality ("technical efficiency") of government spending on health and education, whereby the efficiency of spending is assessed with reference to social indicators. The paper tests the Alesina and Spolaore (1995) model that more heterogeneous societies spend less on pure public goods using a cross-country database and concentrating on health and education. It finds that the results found by Alesina, Baqir, and Easterly (1997) (hereafter referred to as ABE) in an application of that model to a sample of U.S. regions and cities-more heterogeneous societies spend less on pure public goods-can be replicated in a crosscountry study for the health sector, but not for the education sector. At the same time, in line with previous studies on the link between spending and social indicators (Flug, Spilimbergo, and Wachtenheim, 1998; and Filmer, Hammer, and Pritchett, 1998), the paper shows it is difficult to find empirical evidence of an impact of public spending on education and health on social indicators. On the other hand, it finds that heterogeneity strongly affects the efficiency of public expenditure outcomes for both health and education. Heterogeneity is associated with worse health and education indicators, controlling for government expenditure on health and education, and other relevant variables Bibliography Includes bibliographical references (page 20) Notes Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002. http://purl.oclc.org/DLF/benchrepro0212 MiAaHDL English digitized 2010 HathiTrust Digital Library committed to preserve pda MiAaHDL Print version record Subject Public goods -- Appropriations and expenditures Expenditures, Public. Government spending policy. Finance, Public. Total quality management in government. Ethnic relations. Ethnic relations Expenditures, Public Finance, Public Government spending policy Total quality management in government Form Electronic book Author International Monetary Fund. Fiscal Affairs Department, issuing body. ISBN 1451893965 9781451893960 1281263788 9781281263780 1462373232 9781462373239 1452704872 9781452704876 9786613778147 6613778141 9781451846836 1451846835 ISSN 2227-8885

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