The impact of diverse preferences on government expenditures

Abstract

This article analyses the importance of cultural diversity on Canadian government growth. The argument for analysing culture centres on: the belief that agreement on provision levels of government goods and services will be difficult when citizens are different from one another; the belief that individuals would rather see transfers directed to people who are like themselves; and, the importance of maintaining cultural diversity as a societal goal. This article finds that mother tongue diversity is relevant in determining government expenditure levels in Canada while religious diversity is not. These findings represent a unique approach to the determination of government expenditure in Canada and point out consequences for immigration policy.