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Public Good Provision, Diversity and Distribution

Diversity is a key issue in the provision of critical publicly provided goods such as clean drinking water and education. To develop institutions that address this issue, it is critical that we understand the mechanisms through which diversity and public goods are related. A simple model of public good provision is developed to demonstrate that there are potentially measurable differences between existing theories, particularly in the distribution of the public good to minority groups. These differences are then illustrated with respect to the distribution of drinking water, electricity and education across 18 countries of Sub-Saharan Africa. The results are consistent with ethnic diversity reducing access to all public goods, but the mechanism behind the effect varies depending on the nature of the public good.