Using data from the Indonesian Family Life Surveys, this paper studies the impact of fiscal decentralisation in Indonesia on local public spending across communities with different types of local institutions. Our results provide evidence of heterogeneity in access to public goods across...

We study the effect of ethnic diversity on local public spending following fiscal decentralisation in a setting where local institutions condition cooperative behaviour across ethnic groups. The theory we develop highlights the role of the local elite in lobbying for policies which favour them...