School of Economics

2017 Discussion papers


School of Economics Discussion Paper 17/11


Cash for Votes: Evidence from India


Anirban Mitra, University of Kent
Shabana Mitra and Arnab Mukherji, Indian Institute of Management Bangalore.


June 2017

Abstract:

This paper investigates the prevalence of vote-buying in democratic elections where stringent restrictions on corporate donations to political parties exist. We combine data from state assembly elections in India with household-level consumer expenditure surveys (conducted by NSSO) over the period 2004-11. Exploiting a difference-in-differences methodology, we estimate the effects elections have on the consumption of various household items: food, clothes, education-related, etc. Moreover, there is heterogeneity in such consumption adjustments across households. Our estimates suggest that legal sources of funds are not sufficient for generating such “spikes” in consumption and indicate the role of the hidden economy in politics.

JEL Classification: D12; D72; H40

Keywords: Political economy; election finance; black economy



To download the file in pdf format click here.

School of Economics, Keynes College, University of Kent, Canterbury, Kent, CT2 7NP

Undergraduate enquiries: +44 (0) 1227 827497, Postgraduate enquiries: +44 (0) 1227 827440 or email us

Last Updated: 04/07/2017