Voter Heterogeneity and Public Goods: Evidence from Religious Fragmentation and Elections in China

Abstract

This study examines how heterogeneity in religious beliefs in rural villages interacts with the introduction of elections in determining local public goods. First, we document religious composition and the introduction of local elections in rural China during the post-Mao reform era. Then, to determine the extent to which pre-existing levels of voter heterogeneity interact with democratization in determining government spending on local public goods, we estimate the interaction effect of the introduction of village elections and religious fragmentation on government public goods expenditure. We find that elections increase government expenditure towards public goods, but the magnitude declines with religious fractionalization.