Peripheral diversity: transfers versus public goods

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dc.contributor.author Desmet, Klaus
dc.contributor.author Ortuño Ortín, Ignacio
dc.contributor.author Weber, Shlomo
dc.date.accessioned 2017-09-08T16:27:54Z
dc.date.available 2018-01-09T23:00:06Z
dc.date.issued 2017-01-09
dc.identifier.bibliographicCitation Desmet, K., Ortuño-Ortín, I. and Weber, S. (2017). Peripheral diversity: transfers versus public goods. Social Choice and Welfare, pp. 1-37.
dc.identifier.issn 0176-1714
dc.identifier.uri http://hdl.handle.net/10016/25205
dc.description.abstract This paper advances the hypothesis that in societies that suffer from ethnolinguistic center-periphery tension it is harder to agree on public goods than on transfers. After micro-founding a new peripheral diversity index, it puts forth a simple theory in which the cost of public goods increases with peripheral ethnolinguistic diversity and tax compliance decreases with overall ethnolinguistic diversity. It then empirically explores the relation between public goods provision, transfers, peripheral diversity and overall diversity. Consistent with the theory, we find that higher levels of peripheral diversity are associated with less provision of public goods, but more transfers, whereas higher levels of overall diversity have a negative association with transfers. Public goods and transfers are therefore substitutes in their reaction to a change in peripheral diversity.
dc.description.sponsorship I. Ortuño-Ortín acknowledges the financial support of the Spanish Ministry of Science and Innovation, Project ECO-2013-42710-P, and S. Weber wishes to acknowledge the support of the Ministry of Education and Science of the Russian Federation, Grant No. 14.U04.31.0002, administered through the NES CSDSI.
dc.format.mimetype application/pdf
dc.language.iso eng
dc.publisher Springer Verlag
dc.rights © Springer Verlag
dc.subject.other Peripheral ethnolinguistic diversity
dc.subject.other Public goods provision
dc.subject.other Peripheral diversity
dc.subject.other Transfers
dc.title Peripheral diversity: transfers versus public goods
dc.type article
dc.subject.eciencia Economía
dc.identifier.doi https://doi.org/10.1007/s00355-016-1017-5
dc.rights.accessRights openAccess
dc.relation.projectID Gobierno de España. ECO-2013-42710-P
dc.type.version acceptedVersion
dc.identifier.publicationfirstpage 1
dc.identifier.publicationlastpage 37
dc.identifier.publicationtitle Social choice and welfare
dc.identifier.uxxi AR/0000020313
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