Does legislative turnover adversely affect state expenditure policy? Evidence from Indian state elections

Yogesh Uppal ()

MPRA Paper from University Library of Munich, Germany

Abstract: I examine the effect of legislative turnover on the size and composition of government expenditures in Indian state elections during 1980-2000. The paper finds that excessive turnover in Indian state elections results in an inefficient government expenditure policy. First, the higher the turnover, the larger is the size of government. Second, excessive turnover affects the allocative efficiency of the government expenditure by skewing the composition of government spending towards pure consumption expenditure and away from more productive investment expenditure. The findings imply that a lack of a proper commitment mechanism in political markets could be a source of inefficiency in government policy.

Keywords: Legislative turnover; Indian elections; government spending (search for similar items in EconPapers)
JEL-codes: E62 H11 H5 H7 (search for similar items in EconPapers)
Date: 2009-06-02
New Economics Papers: this item is included in nep-cdm, nep-cwa, nep-mac and nep-pol
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Journal Article: Does legislative turnover adversely affect state expenditure policy? Evidence from Indian state elections (2011)
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