Ethnic Fragmentation and Police Spending

Using a Two-Stage Least Squares procedure, we estimate the relationship between ethnic fragmentation and police spending using a cross-section of United States counties. Our results show that, when controlling for community characteristics and accounting for simultaneity bias, ethnic fragmentation is positively related to police spending. Our paper contributes to the understanding of the stylized fact that public spending on police increased over a period in which the incidence of crime decreased