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Do political elites capture crop insurance? Evidence from Indian agricultural households

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  • Debdatta Pal

    (Indian Institute of Management Lucknow)

Abstract

It is widely accepted that political elites rent-seek by redirecting public resources from targeted welfare programs to themselves. However, little is known about whether political elites also rent-seek in crop insurance programs. Using data from a nationwide household survey, this paper examines whether politically connected agricultural households are more likely to receive insurance payouts from a government-run crop insurance program compared to nonconnected households. I find an association between political elite capture and crop insurance payouts. The results of propensity score matching provide supporting evidence. I also find that capture is more likely when government banks implement crop insurance plans instead of private banks.

Suggested Citation

  • Debdatta Pal, 2025. "Do political elites capture crop insurance? Evidence from Indian agricultural households," Public Choice, Springer, vol. 205(1), pages 283-301, October.
    • Handle: RePEc:kap:pubcho:v:205:y:2025:i:1:d:10.1007_s11127-025-01284-3
    DOI: 10.1007/s11127-025-01284-3
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    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • Q14 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Finance

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