• AEA in the news
  • May 2, 2016

Does diversity hamper economic progress?

Market square in Khuldabad, a city in the Indian state of Maharashtra.


Livemint cited a 2015 American Economic Review article in a summary of recent research about public goods. In Clientelism in Indian Villages, the authors study local governments in rural central India with a survey distributed to local households and government leaders. They find that the villages have a well-functioning democracy but that elites are still able to use their power and influence to subvert policies that would benefit the masses.