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Jati, local public goods and village governence: private actions and public outcomes

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  • Raghbendra Jha
  • Hari K. Nagarajan
  • Anirudh Tagat

Abstract

This paper purports to understand whether voting along narrow parochial lines in socially and ethnically fragmented societies has measurable gains. Using data from rural India, we establish that identity based voting, driven by membership in social and informal networks, will lead to enhanced participation in welfare programs, which in turn leads to increased consumption growth. We also show that reducing agency costs does not necessarily remove the need for identity-based voting, and that such voting behaviour is a means for engaging in capture of public and private benefits by these groups. Some policy recommendations are also advanced.

Suggested Citation

  • Raghbendra Jha & Hari K. Nagarajan & Anirudh Tagat, 2017. "Jati, local public goods and village governence: private actions and public outcomes," ASARC Working Papers 2017-01, The Australian National University, Australia South Asia Research Centre.
    • Handle: RePEc:pas:asarcc:2017-01
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    References listed on IDEAS

    as
    1. Kaivan Munshi & Mark Rosenzweig, 2008. "The Efficacy of Parochial Politics: Caste, Commitment, and Competence in Indian Local Governments," NBER Working Papers 14335, National Bureau of Economic Research, Inc.
    2. Foster, Andrew D & Rosenzweig, Mark R, 2004. "Agricultural Productivity Growth, Rural Economic Diversity, and Economic Reforms: India, 1970-2000," Economic Development and Cultural Change, University of Chicago Press, vol. 52(3), pages 509-542, April.
    3. Banerjee, Abhijit V. & Pande, Rohini, 2007. "Parochial Politics: Ethnic Preferences and Politician Corruption," Working Paper Series rwp07-031, Harvard University, John F. Kennedy School of Government.
    4. Khemani, Stuti, 2001. "Decentralization and accountability : are voters more vigilant in local than in national elections ?," Policy Research Working Paper Series 2557, The World Bank.
    5. Bhalotra, Sonia & Clots-Figueras, Irma & Cassan, Guilhem & Iyer, Lakshmi, 2014. "Religion, politician identity and development outcomes: Evidence from India," Journal of Economic Behavior & Organization, Elsevier, vol. 104(C), pages 4-17.
    6. Bernard Caillaud & Jean Tirole, 2002. "Parties as Political Intermediaries," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 117(4), pages 1453-1489.
    7. Kapteyn, Arie & Fiebig, Denzil G., 1981. "When are two-stage and three-stage least squares estimators identical?," Economics Letters, Elsevier, vol. 8(1), pages 53-57.
    8. Nandini Krishnan, 2007. "Political Reservations and Rural Public Good Provision in India," Boston University - Department of Economics - The Institute for Economic Development Working Papers Series dp-175, Boston University - Department of Economics.
    9. Banerjee, Abhijit & Iyer, Lakshmi & Somanathan, Rohini, 2008. "Public Action for Public Goods," Handbook of Development Economics, in: T. Paul Schultz & John A. Strauss (ed.), Handbook of Development Economics, edition 1, volume 4, chapter 49, pages 3117-3154, Elsevier.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    economic development; voting behavior; decentralization; parochial politics;
    All these keywords.

    JEL classification:

    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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