This paper examines how the introduction of the Fiscal Decentralization (FD) at the turn of the Century that offered greater freedom in local governance affected grassroots politics and local development in Indonesia. We find that socio-culturally homogenous communities are more likely to...

We study the effect of ethnic diversity on local public spending following fiscal decentralisation in a setting where local institutions are salient. Specifically, the latter affects coordination costs and thereby cooperative behaviour across the constituent ethnic groups. Our theory highlights...

We study the effect of ethnic diversity on local public spending following fiscal decentralisation in a setting where local institutions condition cooperative behaviour across ethnic groups. The theory we develop highlights the role of the local elite in lobbying for policies which favour them...

We study the effect of ethnic diversity on local public spending following fiscal decentralisation in a setting where local institutions condition cooperative behaviour across ethnic groups. The theory we develop highlights the role of the local elite in lobbying for policies which favour them...

We study the effect of ethnic diversity on local public spending following fiscal decentralisation in a setting where local institutions are salient. Specifically, the latter affects coordination costs and thereby cooperative behaviour across the constituent ethnic groups. Our theory highlights...