How does diversity in government impact public good provision? To address this question, we construct a novel dataset linking the ethnicity of California city council candidates to election outcomes and expenditure decisions. We then study how the narrow election of a candidate whose ethnicity...

This paper provides evidence that some cities subject to a statewide tax limit manipulate their mix of productive and administrative services in an attempt to get voters to override the statewide limit. When a statewide limit reduces a city's budget, one manipulative response is to cut "service"...

We extend the literature on local income tax competition by allowing for inter-jurisdictional spillovers and imperfect rivalry in consumption of a publicly provided good. Comparing decentralized second-best results of a theoretical model with an efficient benchmark, we identify three...