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The political economy of public goods: Some evidence from India

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Author Info
Abhijit Banerjee () (Department of Economics, MIT)
Rohini Somanathan () (Indian Statistical Institute, New Delhi)

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Abstract

This paper examines how public goods get allocated by a centralized state. We use data on social structure and public goods in rural India over the sixties, seventies and eighties to examine the influence of particular social groups, and of social and economic heterogeneity more generally, on the availability of public goods. This was a period of rapid expansion in these goods and of important shifts in the political leverage enjoyed by different groups. We find that social divisions are important, but so are the relative positions of particular goups in the broader social hierarchy. These divisions are not however immutable, nor is their influence overwhelming. Some previously marginalized communities have gained over this period while others continue to be disadvantaged. There has also been considerable convergence in the availability of public goods over this period, suggesting that the state feels some compulsion to equalize access, even to those who are not politically influential.

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Paper provided by Indian Statistical Institute, New Delhi, India in its series Indian Statistical Institute, Planning Unit, New Delhi Discussion Papers with number 04-17.

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Length: 48 pages
Date of creation: Jun 2004
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Handle: RePEc:ind:isipdp:04-17

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  1. Alberto Alesina & Eliana La Ferrara, 2000. "Participation In Heterogeneous Communities," The Quarterly Journal of Economics, MIT Press, vol. 115(3), pages 847-904, August. [Downloadable!] (restricted)
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  2. Easterly, William & Levine, Ross, 1997. "Africa's Growth Tragedy: Policies and Ethnic Divisions," The Quarterly Journal of Economics, MIT Press, vol. 112(4), pages 1203-50, November.
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  3. Baland, Jean-Marie & Platteau, Jean-Philippe, 1998. "Wealth Inequality and Efficiency in the Commons, Part II: The Regulated Case," Oxford Economic Papers, Oxford University Press, vol. 50(1), pages 1-22, January.
  4. Alesina, Alberto & Baqir, Reza & Easterly, William, 1999. "Public goods and ethnic divisions," Policy Research Working Paper Series 2108, The World Bank. [Downloadable!]
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  5. Abhijit Banerjee & Lakshmi Iyer, 2005. "History, Institutions, and Economic Performance: The Legacy of Colonial Land Tenure Systems in India," American Economic Review, American Economic Association, vol. 95(4), pages 1190-1213, September. [Downloadable!]
  6. Dayton-Johnson, Jeff, 2000. "Determinants of collective action on the local commons: a model with evidence from Mexico," Journal of Development Economics, Elsevier, vol. 62(1), pages 181-208, June. [Downloadable!] (restricted)
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  1. Abhijit Banerjee, 2007. "Parochial Politics: Ethnic Preferences and Politician Corruption," Working Papers id:1079, esocialsciences.com. [Downloadable!]
  2. Bhattacharya, Haimanti & Innes, Robert, 2006. "Is There a Nexus between Poverty and Environment in Rural India?," 2006 Annual meeting, July 23-26, Long Beach, CA 21201, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  3. Gilles Dufrénot & Valérie Mignon & Théo Naccache, . "The slow convergence of per capita income between the developing countries: “growth resistance” and sometimes “growth tragedy”," Discussion Papers 09/03, University of Nottingham, CREDIT. [Downloadable!]
  4. Banerjee, Abhijit & Pande, Rohini, 2007. "Parochial Politics: Ethnic Preferences and Politician Corruption," CEPR Discussion Papers 6381, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  5. Irma Clots-Figueras, 2007. "Are female leaders good for education? : Evidence from India," Economics Working Papers we077342, Universidad Carlos III, Departamento de Economía. [Downloadable!]
  6. Siva Athreya & Rohini Somanathan, 2004. "Quantifying spatial misallocaton in centrally provided public goods," Indian Statistical Institute, Planning Unit, New Delhi Discussion Papers 04-07, Indian Statistical Institute, New Delhi, India. [Downloadable!]
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  7. Das, Jishnu & Pandey, Priyanka & Zajonc, Tristan, 2006. "Learning levels and gaps in Pakistan," Policy Research Working Paper Series 4067, The World Bank. [Downloadable!]
  8. Singh, Nirvikar, 2007. "Fiscal Decentralization in China and India: Competitive, Cooperative or Market Preserving Federalism?," MPRA Paper 1705, University Library of Munich, Germany. [Downloadable!]
  9. Nandini Krishnan, 2007. "Political Reservations and Rural Public Good Provision in India," Boston University - Department of Economics - The Institute for Economic Development Working Papers Series dp-175, Boston University - Department of Economics. [Downloadable!]
  10. Sarmistha Pal & Sugata Ghosh, 2008. "The Elite and the Marginalised: an Analysis of Public Spending on Mass Education in the Indian States," CEDI Discussion Paper Series 08-15, Centre for Economic Development and Institutions(CEDI), Brunel University. [Downloadable!]
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  11. B. Curtis Eaton & Mukesh Eswaran & Robert Oxoby, 2009. "'Us' and 'Them': The Origin of Identity, and its Economic Implications," Working Papers 2009-03, Department of Economics, University of Calgary, revised 01 Jan 2009. [Downloadable!]
  12. Esther Duflo & Rohini Pande, 2005. "Dams," Working Papers 923, Economic Growth Center, Yale University. [Downloadable!]
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  13. Banerjee, Abhijit V. & Pande, Rohini, 2007. "Parochial Politics: Ethnic Preferences and Politician Corruption," Working Paper Series rwp07-031, Harvard University, John F. Kennedy School of Government. [Downloadable!]
  14. Singh, Nirvikar, 2007. "Fiscal Federalism and Decentralization in India," MPRA Paper 1447, University Library of Munich, Germany. [Downloadable!]
  15. Michalopoulos, Stelios, 2008. "The Origins of Ethnolinguistic Diversity: Theory and Evidence," MPRA Paper 11531, University Library of Munich, Germany. [Downloadable!]
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  16. Siddique, Zahra, 2008. "Caste Based Discrimination: Evidence and Policy," IZA Discussion Papers 3737, Institute for the Study of Labor (IZA). [Downloadable!]
  17. Esther Duflo, 2005. "Dams," Working Papers id:253, esocialsciences.com. [Downloadable!]
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