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Cash for Votes: Evidence from India

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  • Anirban Mitra
  • Shabana Mitra

Abstract

We examine consumption patterns around the time of elections to investigate vote-buying. Specifically, we combine data from state assembly elections in India with household-level consumer expenditure and employment surveys (conducted by the National Sample Survey Office) over the period 2004–12. Exploiting a difference-in-differences methodology, we estimate the positive effect elections have on reported consumption expenditures. We observe larger effects in swing areas but null effects for the poor. The total wage payments for the same period cannot justify the consumption spikes. Our results shed light on the mechanisms behind strategic vote-buying.

Suggested Citation

  • Anirban Mitra & Shabana Mitra, 2025. "Cash for Votes: Evidence from India," Economic Development and Cultural Change, University of Chicago Press, vol. 74(1), pages 213-239.
    • Handle: RePEc:ucp:ecdecc:doi:10.1086/735574
    DOI: 10.1086/735574
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    Cited by:

    1. Anand Murugesan & Jean-Robert Tyran, 2023. "The Puzzling Practice of Paying “Cash for Votes”," CESifo Working Paper Series 10504, CESifo.
    2. Toke Aidt & Zareh Asatryan & Lusine Badalyan & Friedrich Heinemann, 2020. "Vote Buying or (Political) Business (Cycles) as Usual?," The Review of Economics and Statistics, MIT Press, vol. 102(3), pages 409-425, July.
    3. Gerling, Lena & Kellermann, Kim Leonie, 2019. "The impact of election information shocks on populist party preferences: Evidence from Germany," CIW Discussion Papers 3/2019, University of Münster, Center for Interdisciplinary Economics (CIW).
    4. Thushyanthan Baskaran & Sonia Bhalotra & Brian Min & Yogesh Uppal, 2024. "Women legislators and economic performance," Journal of Economic Growth, Springer, vol. 29(2), pages 151-214, June.
    5. Amrita Dhillon & Pramila Krishnan & Manasa Patnam & Carlo Perroni, 2020. "Secession with Natural Resources," The Economic Journal, Royal Economic Society, vol. 130(631), pages 2207-2248.
    6. Gerling, Lena & Kellermann, Kim Leonie, 2022. "Contagious populists: The impact of election information shocks on populist party preferences in Germany," European Journal of Political Economy, Elsevier, vol. 72(C).
    7. Savu, A., 2021. "The Local Political Economy of Austerity: Lessons from Hospital Closures in Romania," Cambridge Working Papers in Economics 2120, Faculty of Economics, University of Cambridge.

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    More about this item

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • H40 - Public Economics - - Publicly Provided Goods - - - General

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