Desmet, Klaus; Breton, Michel Le; Ortuno-Ortin, Ignacio; … - Faculty of Economics and Business, Tbilisi State University - 2008
This paper presents a model of nations where culturally heterogeneous agents vote on the optimal level of public spending. Larger nations benefit from increasing returns in the provision of public goods, but bear the costs of greater cultural heterogeneity. This tradeoff induces agents'...