Political Determinants of the Allocation of Public Expenditures: A Study of the Indian States
AbstractThis study examines whether the allocation of public expenditures of the Indian states are significantly influenced by government specific political characteristics. Three types of government specific characteristics are considered: forms of governments, ideology of the government, and the electoral cycle. A number of hypotheses are designed to link these characteristics with expenditure allocation. The hypotheses are tested using a panel dataset of 14 Indian states spread over 27 fiscal years, from 1980-81 to 2006-07. The overall findings of the study suggest that the relationship between expenditure allocation and political determinants across the Indian states validate the proposed hypotheses even after controlling for the traditional and other unobservable determinants. These findings are robust to various forms of sensitivity analyses.
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Bibliographic InfoPaper provided by National Institute of Public Finance and Policy in its series Working Papers with number 12/101.
Date of creation: Mar 2012
Date of revision:
Note: Working Paper 101, 2012
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Web page: http://www.nipfp.org.in
Political determinants ; Expenditure ; Political parties ; Interest groups ; Indian states;
Find related papers by JEL classification:
- H0 - Public Economics - - General
- H1 - Public Economics - - Structure and Scope of Government
- H2 - Public Economics - - Taxation, Subsidies, and Revenue
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-04-03 (All new papers)
- NEP-PBE-2012-04-03 (Public Economics)
- NEP-POL-2012-04-03 (Positive Political Economics)
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