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Informal monitoring and enforcement mechanisms in public service delivery: Evidence from the public distribution system in India

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  • Nagavarapu, Sriniketh
  • Sekhri, Sheetal

Abstract

This paper shows that social networks provide informal monitoring and enforcement services that can curb leakages and improve the efficacy of public service delivery. We examine India's targeted public distribution system, under which poor households are entitled to subsidized grains and fuel. We show that Scheduled Castes (SCs) are more likely to buy grains when facing SC delivery agents, but there is no difference in the take up of fuel. We develop a theoretical framework positing that increased informal monitoring and enforcement drive our findings. We test our theory using observational survey data and unique data that we collected. Our empirical results provide strong support for the testable implications.

Suggested Citation

  • Nagavarapu, Sriniketh & Sekhri, Sheetal, 2016. "Informal monitoring and enforcement mechanisms in public service delivery: Evidence from the public distribution system in India," Journal of Development Economics, Elsevier, vol. 121(C), pages 63-78.
    • Handle: RePEc:eee:deveco:v:121:y:2016:i:c:p:63-78
    DOI: 10.1016/j.jdeveco.2016.01.006
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    Cited by:

    1. Gans-Morse, Jordan & Borges, Mariana & Makarin, Alexey & Mannah-Blankson, Theresa & Nickow, Andre & Zhang, Dong, 2018. "Reducing bureaucratic corruption: Interdisciplinary perspectives on what works," World Development, Elsevier, vol. 105(C), pages 171-188.
    2. Emerick, Kyle, 2018. "Trading frictions in Indian village economies," Journal of Development Economics, Elsevier, vol. 132(C), pages 32-56.
    3. Diego Jimenez-Hernandez & Enrique Seira, 2022. "Should the government sell you goods? Evidence from the milk market in Mexico," Working Paper Series WP 2023-19, Federal Reserve Bank of Chicago.
    4. Khanna, Madhulika & Majumdar, Shruti, 2020. "Caste-ing wider nets of credit: A mixed methods analysis of informal lending and caste relations in Bihar," World Development Perspectives, Elsevier, vol. 20(C).
    5. Pan, Yao & You, Jing, 2020. "Successful Social Programs over Local Political Cycles," MPRA Paper 98968, University Library of Munich, Germany.
    6. Afridi, Farzana, 2017. "Governance and Public Service Delivery in India," IZA Discussion Papers 10856, Institute of Labor Economics (IZA).

    More about this item

    Keywords

    Food security; Informal networks; Service delivery; India;
    All these keywords.

    JEL classification:

    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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