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

نویسنده

  • Yogesh Uppal
چکیده

I examine the effect of political turnover on government expenditure policy in Indian state legislatures during 1980-2000. Much similar to arguments for term limits, greater turnover of elected may weaken their hold on the office, and hence, forces them to be more competent. However, a counter-argument is that greater turnover shortens an elected official’s expected stay in the office, which gives him or her more incentive to pursue policies with shorter horizons to show competency. I find evidence for the latter argument in Indian state legislative elections. The states with greater political turnover spend more per capita compared to states with less turnover. Also, greater political turnover skews the government policies towards expenditures that are unproductive in nature and have shorter gestation period at the expense of long-term and welfare increasing expenditures. ∗Department of Economics, Youngstown State University, Youngstown, OH 44555, USA. Email: [email protected]

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تاریخ انتشار 2008