Financial disclosure and political selection: Evidence from India∗
نویسندگان
چکیده
We study the effect of financial disclosure on the selection of politicians, exploiting the staggering of Indian state assembly elections to identify the effect of disclosure laws. We document a 13 percentage point increase in exit of winning candidates post-disclosure, indicating that disclosure has a large effect on politician self-selection. This selection coincides with higher probability of winning for remaining incumbents, relative to a set of counterfactual candidates, suggesting that voters interpreted the selection as positive. We also find that state which experience turnover post-disclosure have faster income growth, reinforcing our interpretation of disclosure leading to improved selection of legislators. JEL Classification: D72; D73; D78
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