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...

In the last decade, counties of Aceh Province was transformed into twenty three counties from ten. This transformation implies to differencing on economic growth these counties between before and after transformation. finding out the conditional convergence economic growth when spatial effect is...