At the moment endogenous growth theory has become increasingly popular in the world of science, particularly in developed countries. This article aims to show, for two regions case, the needs and sense of applying this theory in the polish regions. Due to the low level of economic development of...

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...