Free Riding and Ethnic Heterogeneity∗
نویسنده
چکیده
This paper provides a new explanation for the observed differences in the levels of public good provision in heterogeneous societies compared to the homogeneous counterparts. Consider a voluntary public good provision problem where egalitarian social norms impose income redistribution between agents: rich individuals are forced to share part of their wealth with their poor relatives. However, social sharing norms do not apply across ethnic groups. Because there is a more extensive redistribution in the homogeneous societies, the cost of contributing to the public good is lower. This results in higher levels of free riding in the ethnically heterogeneous societies. Consequently, the model predicts the level of public good provision monotonically decreases with the number of different ethnic groups in heterogeneous societies.
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تاریخ انتشار 2008