IDEAS home Printed from https://ideas.repec.org/a/eee/soceco/v45y2013icp28-37.html
   My bibliography  Save this article

Racial heterogeneity and Medicaid expenditure in the U.S. States: A longitudinal analysis

Author

Listed:
  • Lee, Soomi

Abstract

This study investigates the relationship between racial heterogeneity and Medicaid spending as a share of state public expenditures in the U.S. states from 2000 to 2010. Extant studies predict that increasing racial heterogeneity reduces the share of expenditure on “productive public goods” such as health and education spending. The relationship, however, has been inadequately examined in the previous research because (1) the use of a cross-section dataset in previous research makes it difficult to draw a causal inference, (2) previous research does not sufficiently discuss the magnitude of the effect, (3) it uses aggregate expenditure data which do not distinguish between programs that benefit targeted groups vs. the general public, and (4) previous research does not take political representation bias into consideration. My paper offers the first longitudinal analysis to examine a causal effect of racial heterogeneity on Medicaid expenditure at the U.S. state level. Using state panel data from 2000 to 2010, I find that racial heterogeneity has a negative and statistically significant effect on Medicaid's share within a state's budget. The fiscal impact is also economically significant.

Suggested Citation

  • Lee, Soomi, 2013. "Racial heterogeneity and Medicaid expenditure in the U.S. States: A longitudinal analysis," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 45(C), pages 28-37.
    • Handle: RePEc:eee:soceco:v:45:y:2013:i:c:p:28-37
    DOI: 10.1016/j.socec.2013.04.004
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1053535713000656
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.socec.2013.04.004?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Erzo F. P. Luttmer, 2001. "Group Loyalty and the Taste for Redistribution," Journal of Political Economy, University of Chicago Press, vol. 109(3), pages 500-528, June.
    2. Ruffle, Bradley J. & Sosis, Richard, 2006. "Cooperation and the in-group-out-group bias: A field test on Israeli kibbutz members and city residents," Journal of Economic Behavior & Organization, Elsevier, vol. 60(2), pages 147-163, June.
    3. Habyarimana, James & Humphreys, Macartan & Posner, Daniel N. & Weinstein, Jeremy M., 2007. "Why Does Ethnic Diversity Undermine Public Goods Provision?," American Political Science Review, Cambridge University Press, vol. 101(4), pages 709-725, November.
    4. Alberto Alesina & Reza Baqir & William Easterly, 1999. "Public Goods and Ethnic Divisions," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 114(4), pages 1243-1284.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Klaus Desmet & Ignacio Ortuño-Ortín & Romain Wacziarg, 2009. "The political economy of ethnolinguistic cleavages," Working Papers 2009-17, Instituto Madrileño de Estudios Avanzados (IMDEA) Ciencias Sociales.
    2. Erik Lindqvist & Robert Östling, 2013. "Identity and redistribution," Public Choice, Springer, vol. 155(3), pages 469-491, June.
    3. Dimitrova-Grajzl Valentina & Grajzl Peter & Guse A. Joseph & Smith J. Taylor, 2016. "Racial Group Affinity and Religious Giving: Evidence from Congregation-Level Panel Data," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 16(2), pages 689-725, April.
    4. Desmet, Klaus & Ortuño-Ortín, Ignacio & Wacziarg, Romain, 2012. "The political economy of linguistic cleavages," Journal of Development Economics, Elsevier, vol. 97(2), pages 322-338.
    5. Kim Yi Dionne, 2015. "Social networks, ethnic diversity, and cooperative behavior in rural Malawi," Journal of Theoretical Politics, , vol. 27(4), pages 522-543, October.
    6. Kok, Lucille & Oosterbaan, Veerle & Stoker, Hester & Vyrastekova, Jana, 2020. "In-group favouritism and social norms: Public goods experiments in Tanzania," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 85(C).
    7. Sherry Xin Li, 2010. "Social Identities, Ethnic Diversity, and Tax Morale," Public Finance Review, , vol. 38(2), pages 146-177, March.
    8. Clark Jeremy & Kim Bonggeun, 2012. "The Effect of Neighborhood Diversity on Volunteering: Evidence From New Zealand," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 12(1), pages 1-49, March.
    9. Faillo, Marco & Grieco, Daniela & Zarri, Luca, 2012. "Cultural Diversity, Cooperation,and Anti-social Punishment," AICCON Working Papers 102-2012, Associazione Italiana per la Cultura della Cooperazione e del Non Profit.
    10. Chakravarty, Surajeet & Fonseca, Miguel A., 2014. "The effect of social fragmentation on public good provision: An experimental study," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 53(C), pages 1-9.
    11. ten Kate, Fabian & Klasing, Mariko J. & Milionis, Petros, 2023. "Societal diversity, group identities and their implications for tax morale," Journal of Comparative Economics, Elsevier, vol. 51(3), pages 1048-1067.
    12. Gerard Padro i Miquel & Nancy Qian & Yang Yao, 2012. "Social Fragmentation, Public Goods and Elections: Evidence from China," NBER Working Papers 18633, National Bureau of Economic Research, Inc.
    13. Jones, Daniel B. & Zhan, Crystal, 2020. "Ethnic diversity and citizens’ support for local public good provision: Evidence from California parcel tax elections," Journal of Economic Behavior & Organization, Elsevier, vol. 174(C), pages 108-130.
    14. Bellani, Luna & Scervini, Francesco, 2015. "Heterogeneous preferences and in-kind redistribution: Theory and evidence," European Economic Review, Elsevier, vol. 78(C), pages 196-219.
    15. Bao, Te & Liang, Bin & Pei, Jiaoying, 2022. "Does ethnic diversity always undermine pro-social behavior? Evidence from a laboratory experiment," European Journal of Political Economy, Elsevier, vol. 72(C).
    16. Coban, Mustafa, 2017. "I'm fine with Immigrants, but ...: Attitudes, ethnic diversity, and redistribution preference," Discussion Paper Series 137, Julius Maximilian University of Würzburg, Chair of Economic Order and Social Policy.
    17. Grimalda, Gianluca & Buchan, Nancy & Brewer, Marilynn, 2015. "Globalization, Social Identity, and Cooperation: An Experimental Analysis of Their Linkages and Effects," Global Cooperation Research Papers 10, University of Duisburg-Essen, Käte Hamburger Kolleg / Centre for Global Cooperation Research (KHK/GCR21).
    18. Olivier Bargain & Victor Stephane & Jérôme Valette, 2022. "Another brick in the wall. Immigration and electoral preferences: Direct evidence from state ballots," Review of International Economics, Wiley Blackwell, vol. 30(5), pages 1452-1477, November.
    19. Gerring, John & Thacker, Strom C. & Lu, Yuan & Huang, Wei, 2015. "Does Diversity Impair Human Development? A Multi-Level Test of the Diversity Debit Hypothesis," World Development, Elsevier, vol. 66(C), pages 166-188.
    20. Alberto Alesina & Ekaterina Zhuravskaya, 2011. "Segregation and the Quality of Government in a Cross Section of Countries," American Economic Review, American Economic Association, vol. 101(5), pages 1872-1911, August.

    More about this item

    Keywords

    Racial heterogeneity; Public good provision; Medicaid spending;
    All these keywords.

    JEL classification:

    • H4 - Public Economics - - Publicly Provided Goods
    • Z1 - Other Special Topics - - Cultural Economics

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:soceco:v:45:y:2013:i:c:p:28-37. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/620175 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.