In this paper we argue that different preferences in a decentralized system lead to under provision of public goods. We analyze the provision of public primary education in nineteenth-century Prussia which was characterized by a linguistically polarized society and a decentralized education...

For a panel of 122 cities observed over 300 years in medieval northern-central Italy, we document that the occurrence of an earthquake retarded institutional transition from the feudal regime to the commune (free city state) in cities where the political and the religious leaders were one and...