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2 December 2005

PPBW - Hopkins Paper

In the December 2 Political Psychology and Behavior Workshop, Daniel Hopkins of Harvard University presented his paper, "The Diversity Discount: How Increasing Ethnic and Racial Diversity Dampens Support for Tax Increases." This paper merges the literatures from political economy, sociology, and comparative politics to theorize about the effects of racial and ethnic heterogeneity on expenditures on public goods. This paper makes two contributions. First, Hopkins explores four mechanisms through which diversity may suppress the provision of public goods, one of which thinks seriously about how elites set the public agenda. Second, Hopkins argues that changes, rather than the level, of diversity affect the provision of public goods.

To examine these claims, Hopkins analyzes instances in which towns hold and approve debt override and exclusion votes to fund public goods. The findings indicate that in Massachusetts, all other factors being equal, a locality with increases in diversity over the period of the study was more likely to hold votes on debt exclusions. If these findings hold, Hopkins's research implies that if communities are to maintain adequate levels of provision in the face of demographic change, then policymakers should think of ways to help communities manage public expenditures in periods of increasing diversity. These implications are more optimistic than those provided to us by the existing literature, from which one can conclude that heterogeneous localities will not be able to provide the public goods its citizens need.

The audience responded positively to the paper. However, the audience urged greater complexity in the theoretical understanding of the ways in which diversity matters. First, the analysis might benefit from disaggregating different types of public goods--for instance, diversity may have opposite effects on expenditures for corrections than one would expect from this model. Second, the relationship between elites and voters remains a bit of a "black box" in this paper and should be explored further. One audience member also asked Hopkins to include the type of town or city government in the model.

Posted by Traci Burch at December 2, 2005 4:10 PM