Alesina, Alberto; Baqir, Reza; Hoxby, Caroline - In: Journal of Political Economy 112 (2004) 2, pp. 348-396
We investigate whether political jurisdictions form in response to the trade-off between economies of scale and the costs of a heterogeneous population. We consider heterogeneity in income, race, ethnicity, and religion, and we test the model using American school districts, school attendance...