The determinants of government responsiveness to its citizens is a key issue in political economy. Here we develop a model based on the solution of political agency problems. Having a more informed and politically active electorate strengthens incentives for governments to be responsive. This suggests that there is a role both for democratic institutions and the mass media in ensuring that the preferences of citizens are reflected in policy. The ideas behind the model are tested on panel data from India. We show that public food distribution and calamity relief expenditure are greater, controlling for shocks, where governments face greater electoral accountability and where newspaper circulation is highest.
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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number
2721.
Find related papers by JEL classification: D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Models of Political Processes: Rent-seeking, Elections, Legislatures, and Voting Behavior H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government H41 - Public Economics - - Publicly Provided Goods - - - Public Goods I38 - Health, Education, and Welfare - - Welfare and Poverty - - - Government Programs; Provision and Effects of Welfare Programs P26 - Economic Systems - - Socialist Systems and Transition Economies - - - Political Economy
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