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Private Returns to Public Office

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  • Raymond Fisman

    ()

  • Florian Schulz

    ()

  • Vikrant Vig

    ()

Abstract

The wealth accumulation of Indian parliamentarians using public disclosures required of all candidates since 2003 are studied. Annual asset growth of winners is on average 3 to 6 percentage points higher than runners-up. By performing a within-constituency com- parison where both runner-up and winner run in consecutive elections, and by looking at the subsample of very close elections, a range of alternative explanations for differential earnings of politicians and a relevant control group are ruled out. The “winner's premium" comes from parliamentarians holding positions in the Council of Ministers, with asset re- turns 13 to 29 percentage points higher than non-winners. The benefit of winning is also concentrated among incumbents, because of low asset growth for incumbent non-winners. [BREAD Working paper]. URL:[http://ipl.econ.duke.edu/bread/papers/working/344.pdf].

Suggested Citation

  • Raymond Fisman & Florian Schulz & Vikrant Vig, 2012. "Private Returns to Public Office," Working Papers id:4979, eSocialSciences.
  • Handle: RePEc:ess:wpaper:id:4979
    Note: Institutional Papers
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    References listed on IDEAS

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    Cited by:

    1. Kaisa Kotakorpi & Panu Poutvaara & Marko Tervio, 2013. "Returns to office in national and local politics," Discussion Papers 86, Aboa Centre for Economics.
    2. Caterina Gennaioli & Gaia Narciso, 2017. "Toxic roads: Unearthing hazardous waste dumping," Trinity Economics Papers tep1817, Trinity College Dublin, Department of Economics.
    3. Zohal Hessami, 2013. "Corruption, Public Procurement, and the Budget Composition: Theory and Evidence from OECD Countries," Working Paper Series of the Department of Economics, University of Konstanz 2013-27, Department of Economics, University of Konstanz.
    4. Radygin, Alexander & Entov, Revold, 2013. ""Fundamental" theorem of privatization: ideology, evolution, practice," Economic Policy, Russian Presidential Academy of National Economy and Public Administration, pages 7-45, December.
    5. Nishith Prakash & Marc Rockmore & Yogesh Uppal, 2014. "Do Criminally Accused Politicians Affect Economic Outcomes? Evidence from India," HiCN Working Papers 192, Households in Conflict Network.
    6. Dhillon, Amrita & Krishnan, Pramila & Patnam, Manasa & Perroni, Carlo, 2016. "Electoral Accountability and the Natural Resource Curse: Theory and Evidence from India," CEPR Discussion Papers 11377, C.E.P.R. Discussion Papers.
    7. Sitakanta Panda, 2012. "Legislator characteristics and legislative outcomes in India," Economics Bulletin, AccessEcon, vol. 32(4), pages 3401-3416.
    8. Hessami, Zohal, 2014. "Political corruption, public procurement, and budget composition: Theory and evidence from OECD countries," European Journal of Political Economy, Elsevier, vol. 34(C), pages 372-389.
    9. Nishith Prakash & Marc Rockmore, 2014. "Do Criminal Representatives Hinder or Improve Constituency Outcomes? Evidence from India," Working papers 2014-20, University of Connecticut, Department of Economics.
    10. Dhillon, Amrita & Krishnan, Pramila & Patnam, Manasa & Perroni, Carlo, 2016. "The Natural Resource Curse Revisited:Theory and Evidence from India," CAGE Online Working Paper Series 268, Competitive Advantage in the Global Economy (CAGE).
    11. repec:oup:jleorg:v:33:y:2017:i:2:p:268-300. is not listed on IDEAS
    12. David Szakonyi, 2017. "Businesspeople in Elected Office: Identifying Private Benefits from Firm-Level Returns," Working Papers 2017-20, The George Washington University, Institute for International Economic Policy.
    13. Anirban Mitra & Shabana Mitra & Arnab Mukherji, 2017. "Cash for Votes: Evidence from India," Studies in Economics 1711, School of Economics, University of Kent.
    14. Anukriti, S & Chakravarty, Abhishek, 2015. "Political Aspirations in India: Evidence from Fertility Limits on Local Leaders," IZA Discussion Papers 9023, Institute for the Study of Labor (IZA).
    15. Alexander Radygin & Revold Entov, 2014. "The Fundamental Privatization Theorem: Ideology, Evolution, Practice," Working Papers 0087, Gaidar Institute for Economic Policy, revised 2014.

    More about this item

    Keywords

    Private Returns; Public Office; Information disclosure; Indian politics; Regression discontinuity; Annual asset growth; Indian parliamentarians; asset growth; candidates; salary earnings; politicians' motivations;

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation

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