“…While there are many explanations for poor provision of public services, one in particular has received scholarly attention: the level of ethnic diversity, usually operationalized using a Herfindahl fractionalization index. The negative association between ethnic diversity and public services has been attested for a wide variety of nations, goods, and levels of aggregation (Alesina, Baqir, & Easterly, 1999; Algan, Hémet, & Laitin, 2011; Banerjee & Somanathan, 2007; Easterly & Levine, 1997; Miguel & Gugerty, 2005) though some recent studies have also questioned the relationship, especially at the national level (Gao, 2016; Gerring, Thacker, Lu, & Huang, 2015; Gisselquist, Leiderer, & Niño-Zarazúa, 2016; Singh & vom Hau, 2016; Soifer, 2016; Wimmer, 2016), and others have argued that the relationship is conditional on the salience of ethnic divisions, which may be a product of national policies, segregation, and between-group economic differences (Baldwin & Huber, 2010; Miguel, 2004; Trounstine, 2015). This relationship is usually traced to the inability of people from different ethnic backgrounds to cooperate with each other, a failure variously traced to differences in preferences, lack of a common language, and an inability to sustain cooperative equilibria due to social sanctioning (Habyarimana, Humphreys, Posner, & Weinstein, 2007).…”