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Just rewards? Local politics and public resource allocation in South India

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Author Info

  • Timothy Besley
  • Rohini Pande
  • Vijayendra Rao

Abstract

This paper uses data on elected village councils in South India to examine the political economy of public resource allocation. We find that the pattern of policy-making reflects politicians' self-interest. Elected councillors benefit from improved personal access to public resources. In addition, the head councillor's group identity and residence influences public resource allocation. While electoral incentives do not eliminate politician opportunism, voters appear able to use their electoral clout to gain greater access to public resources.

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File URL: http://eprints.lse.ac.uk/3763/
File Function: Open access version.
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Bibliographic Info

Paper provided by London School of Economics and Political Science, LSE Library in its series LSE Research Online Documents on Economics with number 3763.

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Length: 42 pages
Date of creation: Oct 2007
Date of revision:
Handle: RePEc:ehl:lserod:3763

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Related research

Keywords: decentralization; India; Panchayat;

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References

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  1. Benjamin A. Olken, 2006. "Corruption Perceptions vs. Corruption Reality," NBER Working Papers 12428, National Bureau of Economic Research, Inc.
  2. Raymond Fisman & Edward Miguel, 2007. "Corruption, Norms, and Legal Enforcement: Evidence from Diplomatic Parking Tickets," Journal of Political Economy, University of Chicago Press, vol. 115(6), pages 1020-1048, December.
  3. Markus Goldstein & Christopher Udry, 2008. "The Profits of Power: Land Rights and Agricultural Investment in Ghana," Journal of Political Economy, University of Chicago Press, vol. 116(6), pages 981-1022, December.
  4. Osborne, Martin J & Slivinski, Al, 1996. "A Model of Political Competition with Citizen-Candidates," The Quarterly Journal of Economics, MIT Press, vol. 111(1), pages 65-96, February.
  5. Timothy Besley & Anne Case, 1993. "Does Electoral Accountability Affect Economic Policy Choices? Evidence from Gubernatorial Term Limits," NBER Working Papers 4575, National Bureau of Economic Research, Inc.
  6. Jeffrey R Kling & Jeffrey B Liebman & Lawrence F Katz, 2007. "Experimental Analysis of Neighborhood Effects," Econometrica, Econometric Society, vol. 75(1), pages 83-119, 01.
  7. List, John & Sturm, Daniel M, 2004. "How Elections Matter: Theory and Evidence from Environmental Policy," CEPR Discussion Papers 4489, C.E.P.R. Discussion Papers.
  8. Tim Besley & Stephen Coate, . ""An Economic Model of Representative Democracy''," CARESS Working Papres 95-02, University of Pennsylvania Center for Analytic Research and Economics in the Social Sciences.
  9. Timothy Besley & Rohini Pande & Lupin Rahman & Vijayendra Rao, 2004. "The Politics of Public Good Provision: Evidence from Indian Local Governments," Journal of the European Economic Association, MIT Press, vol. 2(2-3), pages 416-426, 04/05.
  10. Enikolopov, Ruben & Zhuravskaya, Ekaterina, 2003. "Decentralization and Political Institutions," CEPR Discussion Papers 3857, C.E.P.R. Discussion Papers.
  11. Pranab Bardhan, 2002. "Decentralization of Governance and Development," Journal of Economic Perspectives, American Economic Association, vol. 16(4), pages 185-205, Fall.
  12. Faguet, Jean-Paul, 2001. "Does decentralization increase responsiveness to local needs? - evidence from Bolivia," Policy Research Working Paper Series 2516, The World Bank.
  13. Thomas Romer & Howard Rosenthal, 1978. "Political resource allocation, controlled agendas, and the status quo," Public Choice, Springer, vol. 33(4), pages 27-43, December.
  14. Pande, Rohini, 2007. "Understanding Political Corruption in Low Income Countries," CEPR Discussion Papers 6273, C.E.P.R. Discussion Papers.
  15. Bradbury, John Charles & Stephenson, E Frank, 2003. " Local Government Structure and Public Expenditures," Public Choice, Springer, vol. 115(1-2), pages 185-98, April.
  16. Timothy Besley & Rohini Pande & Vijayendra Rao, 2005. "Participatory Democracy in Action: Survey Evidence from South India," Journal of the European Economic Association, MIT Press, vol. 3(2-3), pages 648-657, 04/05.
  17. Esther Duflo & Petia Topalova, 2004. "Unappreciated service: Performance, perceptions, and women leaders in india," Framed Field Experiments 00233, The Field Experiments Website.
  18. Dilip Mookherjee & Pranab K. Bardhan, 2000. "Capture and Governance at Local and National Levels," American Economic Review, American Economic Association, vol. 90(2), pages 135-139, May.
  19. Reza Baqir, 2002. "Districting and Government Overspending," Journal of Political Economy, University of Chicago Press, vol. 110(6), pages 1318-1354, December.
  20. Weingast, Barry R & Shepsle, Kenneth A & Johnsen, Christopher, 1981. "The Political Economy of Benefits and Costs: A Neoclassical Approach to Distributive Politics," Journal of Political Economy, University of Chicago Press, vol. 89(4), pages 642-64, August.
  21. Radu Ban & Vijayendra Rao, 2008. "Tokenism or Agency? The Impact of Women’s Reservations on Village Democracies in South India," Economic Development and Cultural Change, University of Chicago Press, vol. 56, pages 501-530.
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Citations

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Cited by:
  1. Kieu-Trang Nguyen & Quoc-Anh Do & Anh Tran, 2012. "One Mandarin Benefits the Whole Clan: Hometown Infrastructure and Nepotism in an Autocracy," Working Papers 07-2012, Singapore Management University, School of Economics.
  2. Beaman, Lori & Chattopadhyay, Raghabendra & Duflo, Esther & Pande, Rohini & Topalova, Petia, 2008. "Powerful Women: Does Exposure Reduce Bias?," CEPR Discussion Papers 6922, C.E.P.R. Discussion Papers.
  3. repec:cge:warwcg:62 is not listed on IDEAS
  4. Mu, Ren & Zhang, Xiaobo, 2011. "The role of elected and appointed village leaders in the allocation of public resources: Evidence from a low-income region in China," IFPRI discussion papers 1061, International Food Policy Research Institute (IFPRI).
  5. Baird, Sarah & McIntosh, Craig & Özler, Berk, 2013. "The regressive demands of demand-driven development," Journal of Public Economics, Elsevier, vol. 106(C), pages 27-41.
  6. Kaivan Munshi & Mark Rosenzweig, 2013. "Networks, Commitment, and Competence: Caste in Indian Local Politics," NBER Working Papers 19197, National Bureau of Economic Research, Inc.
  7. Lakshmi Iyer & Anandi Mani & Prachi Mishra & Petia Topalova, 2011. "The Power of Political Voice: Women's Political Representation and Crime in India," Harvard Business School Working Papers 11-092, Harvard Business School, revised Aug 2011.
  8. Kaivan Munshi & Mark Rosenzweig, 2008. "The Efficacy of Parochial Politics: Caste, Commitment, and Competence in Indian Local Governments," Working Papers 964, Economic Growth Center, Yale University.
  9. Deepa Narayan & Lant Pritchett & Soumya Kapoor, 2009. "Moving Out of Poverty : Volume 2. Success from the Bottom Up," World Bank Publications, The World Bank, number 11838, October.
  10. Maria De Paola & Rosetta Lombardo & Vincenzo Scoppa, 2009. "Can Gender Quotas Break Down Negative Stereotypes? Evidence From Changes In Electoral Rules," Working Papers 200910, Università della Calabria, Dipartimento di Economia, Statistica e Finanza (Ex Dipartimento di Economia e Statistica).
  11. Gustavo J Bobonis & Luis R Cámara Fuertes & Rainer Schwabe, 2011. "The Dynamic Effects of Information on Political Corruption: Theory and Evidence from Puerto Rico," Working Papers tecipa-428, University of Toronto, Department of Economics.

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