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Parachuters vs. ClimbersEconomic Consequences of Barriers to Political Entryin a Democracy
Aaditya DarJune 25, 2018
Department of Economics, George Washington University
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Outline
Motivation
Context and Data
Conceptual Framework
Identification Strategy
Findings
Mechanisms
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Motivation
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Elites and de facto power
• How is de facto power operationalized?
• Literature points to role of historical circumstances (Ager, 2013; Dell,
2010; Banerjee and Iyer, 2005)
• But how does one account for ‘circulation of elites’?• I study consequences of elite formation by focusing on one
channel: candidate screening by political parties
• Political selection literature on candidate’s identity hasemphasized ascriptive identities (Chattopadhyay and Duflo, 2004; Bhalotra
et al., 2014; Pande, 2003)
• But what about class background?
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Elites and de facto power
• How is de facto power operationalized?• Literature points to role of historical circumstances (Ager, 2013; Dell,
2010; Banerjee and Iyer, 2005)
• But how does one account for ‘circulation of elites’?• I study consequences of elite formation by focusing on one
channel: candidate screening by political parties
• Political selection literature on candidate’s identity hasemphasized ascriptive identities (Chattopadhyay and Duflo, 2004; Bhalotra
et al., 2014; Pande, 2003)
• But what about class background?
3/39
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Elites and de facto power
• How is de facto power operationalized?• Literature points to role of historical circumstances (Ager, 2013; Dell,
2010; Banerjee and Iyer, 2005)
• But how does one account for ‘circulation of elites’?
• I study consequences of elite formation by focusing on onechannel: candidate screening by political parties
• Political selection literature on candidate’s identity hasemphasized ascriptive identities (Chattopadhyay and Duflo, 2004; Bhalotra
et al., 2014; Pande, 2003)
• But what about class background?
3/39
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Elites and de facto power
• How is de facto power operationalized?• Literature points to role of historical circumstances (Ager, 2013; Dell,
2010; Banerjee and Iyer, 2005)
• But how does one account for ‘circulation of elites’?• I study consequences of elite formation by focusing on one
channel: candidate screening by political parties
• Political selection literature on candidate’s identity hasemphasized ascriptive identities (Chattopadhyay and Duflo, 2004; Bhalotra
et al., 2014; Pande, 2003)
• But what about class background?
3/39
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Elites and de facto power
• How is de facto power operationalized?• Literature points to role of historical circumstances (Ager, 2013; Dell,
2010; Banerjee and Iyer, 2005)
• But how does one account for ‘circulation of elites’?• I study consequences of elite formation by focusing on one
channel: candidate screening by political parties• Political selection literature on candidate’s identity has
emphasized ascriptive identities (Chattopadhyay and Duflo, 2004; Bhalotra
et al., 2014; Pande, 2003)
• But what about class background?
3/39
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Elites and de facto power
• How is de facto power operationalized?• Literature points to role of historical circumstances (Ager, 2013; Dell,
2010; Banerjee and Iyer, 2005)
• But how does one account for ‘circulation of elites’?• I study consequences of elite formation by focusing on one
channel: candidate screening by political parties• Political selection literature on candidate’s identity has
emphasized ascriptive identities (Chattopadhyay and Duflo, 2004; Bhalotra
et al., 2014; Pande, 2003)
• But what about class background?
3/39
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Example: same ascriptive identities but different backgrounds
Meira Kumar Mayawati
• Same sex, same religion, same ethnicity• Similar education, even similar year of political entry• But two very different entry routes
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Example: same ascriptive identities but different backgrounds
Meira Kumar Mayawati
• Same sex, same religion, same ethnicity
• Similar education, even similar year of political entry• But two very different entry routes
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Example: same ascriptive identities but different backgrounds
Meira Kumar Mayawati
• Same sex, same religion, same ethnicity• Similar education, even similar year of political entry
• But two very different entry routes
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Example: same ascriptive identities but different backgrounds
Meira Kumar Mayawati
• Same sex, same religion, same ethnicity• Similar education, even similar year of political entry• But two very different entry routes
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This paper
• How does political selection impact economic outcomes?
• I focus on the role of leaders’ background before theycontested their first election
• Conduct fieldwork to investigate all possible entry routes ofpoliticians and classify them as:
• Parachuters: those who are part of local political, economicor socio-cultural elite
• Climbers: those who have risen from the ranks and do nothave a prior name recognition advantage
• Unlike ascriptive identities, entry route is a choice variable
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This paper
• How does political selection impact economic outcomes?• I focus on the role of leaders’ background before they
contested their first election
• Conduct fieldwork to investigate all possible entry routes ofpoliticians and classify them as:
• Parachuters: those who are part of local political, economicor socio-cultural elite
• Climbers: those who have risen from the ranks and do nothave a prior name recognition advantage
• Unlike ascriptive identities, entry route is a choice variable
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This paper
• How does political selection impact economic outcomes?• I focus on the role of leaders’ background before they
contested their first election• Conduct fieldwork to investigate all possible entry routes of
politicians and classify them as:
• Parachuters: those who are part of local political, economicor socio-cultural elite
• Climbers: those who have risen from the ranks and do nothave a prior name recognition advantage
• Unlike ascriptive identities, entry route is a choice variable
5/39
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This paper
• How does political selection impact economic outcomes?• I focus on the role of leaders’ background before they
contested their first election• Conduct fieldwork to investigate all possible entry routes of
politicians and classify them as:• Parachuters: those who are part of local political, economic
or socio-cultural elite
• Climbers: those who have risen from the ranks and do nothave a prior name recognition advantage
• Unlike ascriptive identities, entry route is a choice variable
5/39
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This paper
• How does political selection impact economic outcomes?• I focus on the role of leaders’ background before they
contested their first election• Conduct fieldwork to investigate all possible entry routes of
politicians and classify them as:• Parachuters: those who are part of local political, economic
or socio-cultural elite• Climbers: those who have risen from the ranks and do not
have a prior name recognition advantage
• Unlike ascriptive identities, entry route is a choice variable
5/39
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This paper
• How does political selection impact economic outcomes?• I focus on the role of leaders’ background before they
contested their first election• Conduct fieldwork to investigate all possible entry routes of
politicians and classify them as:• Parachuters: those who are part of local political, economic
or socio-cultural elite• Climbers: those who have risen from the ranks and do not
have a prior name recognition advantage
• Unlike ascriptive identities, entry route is a choice variable
5/39
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Preview of findings
1. Parachuters lead to lower growth in close elections
2. Leader’s entry route into politics is perhaps more importantthan ascriptive identities
3. Suggestive evidence that revenue extraction (operating viabureaucratic control) could be the underlying mechanism
• Effect neither driven by regulation of technology adoption norfactor price manipulation
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Preview of findings
1. Parachuters lead to lower growth in close elections2. Leader’s entry route into politics is perhaps more important
than ascriptive identities
3. Suggestive evidence that revenue extraction (operating viabureaucratic control) could be the underlying mechanism
• Effect neither driven by regulation of technology adoption norfactor price manipulation
6/39
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Preview of findings
1. Parachuters lead to lower growth in close elections2. Leader’s entry route into politics is perhaps more important
than ascriptive identities3. Suggestive evidence that revenue extraction (operating via
bureaucratic control) could be the underlying mechanism
• Effect neither driven by regulation of technology adoption norfactor price manipulation
6/39
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Preview of findings
1. Parachuters lead to lower growth in close elections2. Leader’s entry route into politics is perhaps more important
than ascriptive identities3. Suggestive evidence that revenue extraction (operating via
bureaucratic control) could be the underlying mechanism• Effect neither driven by regulation of technology adoption nor
factor price manipulation
6/39
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Context and Data
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Context: Bihar (‘heart of India’)
Figure 1: Bihar, a state in NorthIndia
Background
• Population: ∼100 million• Ethnically diverse• Competitive elections• At the forefront of the
‘second democratic upsurge’and ‘rise of plebeians’
• Unit of analysis: 243state-legislatorconstituencies
• Study period: 1990-2015
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Context: Bihar (‘heart of India’)
Figure 1: Bihar, a state in NorthIndia
Background
• Population: ∼100 million
• Ethnically diverse• Competitive elections• At the forefront of the
‘second democratic upsurge’and ‘rise of plebeians’
• Unit of analysis: 243state-legislatorconstituencies
• Study period: 1990-2015
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Context: Bihar (‘heart of India’)
Figure 1: Bihar, a state in NorthIndia
Background
• Population: ∼100 million• Ethnically diverse
• Competitive elections• At the forefront of the
‘second democratic upsurge’and ‘rise of plebeians’
• Unit of analysis: 243state-legislatorconstituencies
• Study period: 1990-2015
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Context: Bihar (‘heart of India’)
Figure 1: Bihar, a state in NorthIndia
Background
• Population: ∼100 million• Ethnically diverse• Competitive elections
• At the forefront of the‘second democratic upsurge’and ‘rise of plebeians’
• Unit of analysis: 243state-legislatorconstituencies
• Study period: 1990-2015
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Context: Bihar (‘heart of India’)
Figure 1: Bihar, a state in NorthIndia
Background
• Population: ∼100 million• Ethnically diverse• Competitive elections• At the forefront of the
‘second democratic upsurge’and ‘rise of plebeians’
• Unit of analysis: 243state-legislatorconstituencies
• Study period: 1990-2015
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Context: Bihar (‘heart of India’)
Figure 1: Bihar, a state in NorthIndia
Background
• Population: ∼100 million• Ethnically diverse• Competitive elections• At the forefront of the
‘second democratic upsurge’and ‘rise of plebeians’
• Unit of analysis: 243state-legislatorconstituencies
• Study period: 1990-2015
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Context: Bihar (‘heart of India’)
Figure 1: Bihar, a state in NorthIndia
Background
• Population: ∼100 million• Ethnically diverse• Competitive elections• At the forefront of the
‘second democratic upsurge’and ‘rise of plebeians’
• Unit of analysis: 243state-legislatorconstituencies
• Study period: 1990-2015
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Why state legislators?
• Federal set-up in India: there are over 4,000 state-levellegislators across the country
• States have jurisdiction over:
• Full control: Police, agriculture, irrigation, labor markets, landrights, money lending, and retail taxes
• Partial control: Education, health, forest, trade unions,marriage and succession
• Consensus among Indian political scientists that statelegislators play a critical role (Chhibber et al., 2004; Oldenburg, 2018)
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Why state legislators?
• Federal set-up in India: there are over 4,000 state-levellegislators across the country
• States have jurisdiction over:
• Full control: Police, agriculture, irrigation, labor markets, landrights, money lending, and retail taxes
• Partial control: Education, health, forest, trade unions,marriage and succession
• Consensus among Indian political scientists that statelegislators play a critical role (Chhibber et al., 2004; Oldenburg, 2018)
8/39
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Why state legislators?
• Federal set-up in India: there are over 4,000 state-levellegislators across the country
• States have jurisdiction over:• Full control: Police, agriculture, irrigation, labor markets, land
rights, money lending, and retail taxes
• Partial control: Education, health, forest, trade unions,marriage and succession
• Consensus among Indian political scientists that statelegislators play a critical role (Chhibber et al., 2004; Oldenburg, 2018)
8/39
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Why state legislators?
• Federal set-up in India: there are over 4,000 state-levellegislators across the country
• States have jurisdiction over:• Full control: Police, agriculture, irrigation, labor markets, land
rights, money lending, and retail taxes• Partial control: Education, health, forest, trade unions,
marriage and succession
• Consensus among Indian political scientists that statelegislators play a critical role (Chhibber et al., 2004; Oldenburg, 2018)
8/39
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Why state legislators?
• Federal set-up in India: there are over 4,000 state-levellegislators across the country
• States have jurisdiction over:• Full control: Police, agriculture, irrigation, labor markets, land
rights, money lending, and retail taxes• Partial control: Education, health, forest, trade unions,
marriage and succession
• Consensus among Indian political scientists that statelegislators play a critical role (Chhibber et al., 2004; Oldenburg, 2018)
8/39
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Economic outcomes data: growth rate of luminosity score
Nighttime lights
• Satellite images recorded by NGDCat a 30 arc-second grid resolutionbetween 1992 and 2012
• Economic growth is measured bydifference in ln(luminosity scoresper 100,000 voters) aggregated tothe constituency level over theelection cycle
• State domestic product to lightselasticity for Bihar = 0.13
Figure 2: Lights in 2012
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Economic outcomes data: growth rate of luminosity score
Nighttime lights
• Satellite images recorded by NGDCat a 30 arc-second grid resolutionbetween 1992 and 2012
• Economic growth is measured bydifference in ln(luminosity scoresper 100,000 voters) aggregated tothe constituency level over theelection cycle
• State domestic product to lightselasticity for Bihar = 0.13
Figure 2: Lights in 2012
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Economic outcomes data: growth rate of luminosity score
Nighttime lights
• Satellite images recorded by NGDCat a 30 arc-second grid resolutionbetween 1992 and 2012
• Economic growth is measured bydifference in ln(luminosity scoresper 100,000 voters) aggregated tothe constituency level over theelection cycle
• State domestic product to lightselasticity for Bihar = 0.13
Figure 2: Lights in 2012
9/39
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Additional data
• Redistribution (school construction)
• Technology adoption (groundwater depths)• Factor prices (wages)• Crime and bureaucratic turnover (police transfers)• Mini-biographies (ascriptive identity and entry routes)• Legislator’s traits (age, education, experience)
10/39
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Additional data
• Redistribution (school construction)• Technology adoption (groundwater depths)
• Factor prices (wages)• Crime and bureaucratic turnover (police transfers)• Mini-biographies (ascriptive identity and entry routes)• Legislator’s traits (age, education, experience)
10/39
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Additional data
• Redistribution (school construction)• Technology adoption (groundwater depths)• Factor prices (wages)
• Crime and bureaucratic turnover (police transfers)• Mini-biographies (ascriptive identity and entry routes)• Legislator’s traits (age, education, experience)
10/39
![Page 43: Parachuters vs. Climbers - World Bankpubdocs.worldbank.org/en/655591530017622621/Dar... · Parachuters vs. Climbers Economic Consequences of Barriers to Political Entry in a Democracy](https://reader034.vdocument.in/reader034/viewer/2022042914/5f4fa34b768b7f613b6d52e5/html5/thumbnails/43.jpg)
Additional data
• Redistribution (school construction)• Technology adoption (groundwater depths)• Factor prices (wages)• Crime and bureaucratic turnover (police transfers)
• Mini-biographies (ascriptive identity and entry routes)• Legislator’s traits (age, education, experience)
10/39
![Page 44: Parachuters vs. Climbers - World Bankpubdocs.worldbank.org/en/655591530017622621/Dar... · Parachuters vs. Climbers Economic Consequences of Barriers to Political Entry in a Democracy](https://reader034.vdocument.in/reader034/viewer/2022042914/5f4fa34b768b7f613b6d52e5/html5/thumbnails/44.jpg)
Additional data
• Redistribution (school construction)• Technology adoption (groundwater depths)• Factor prices (wages)• Crime and bureaucratic turnover (police transfers)• Mini-biographies (ascriptive identity and entry routes)
• Legislator’s traits (age, education, experience)
10/39
![Page 45: Parachuters vs. Climbers - World Bankpubdocs.worldbank.org/en/655591530017622621/Dar... · Parachuters vs. Climbers Economic Consequences of Barriers to Political Entry in a Democracy](https://reader034.vdocument.in/reader034/viewer/2022042914/5f4fa34b768b7f613b6d52e5/html5/thumbnails/45.jpg)
Additional data
• Redistribution (school construction)• Technology adoption (groundwater depths)• Factor prices (wages)• Crime and bureaucratic turnover (police transfers)• Mini-biographies (ascriptive identity and entry routes)• Legislator’s traits (age, education, experience)
10/39
![Page 46: Parachuters vs. Climbers - World Bankpubdocs.worldbank.org/en/655591530017622621/Dar... · Parachuters vs. Climbers Economic Consequences of Barriers to Political Entry in a Democracy](https://reader034.vdocument.in/reader034/viewer/2022042914/5f4fa34b768b7f613b6d52e5/html5/thumbnails/46.jpg)
Conceptual Framework
![Page 47: Parachuters vs. Climbers - World Bankpubdocs.worldbank.org/en/655591530017622621/Dar... · Parachuters vs. Climbers Economic Consequences of Barriers to Political Entry in a Democracy](https://reader034.vdocument.in/reader034/viewer/2022042914/5f4fa34b768b7f613b6d52e5/html5/thumbnails/47.jpg)
Political Background
‘Mini-biographies’ collected by conducting primary research andclassified as follows:
Parachuters
• Political elite/family• Economic elite
• Business• Landlord
• Socio-cultural elite
• Social ties• White collar occupations
Climbers
• Activist• Local representative• Political worker• Student politics• Strongman/muscleman• Working class occupations
11/39
![Page 48: Parachuters vs. Climbers - World Bankpubdocs.worldbank.org/en/655591530017622621/Dar... · Parachuters vs. Climbers Economic Consequences of Barriers to Political Entry in a Democracy](https://reader034.vdocument.in/reader034/viewer/2022042914/5f4fa34b768b7f613b6d52e5/html5/thumbnails/48.jpg)
Political Background
‘Mini-biographies’ collected by conducting primary research andclassified as follows:
Parachuters
• Political elite/family
• Economic elite
• Business• Landlord
• Socio-cultural elite
• Social ties• White collar occupations
Climbers
• Activist• Local representative• Political worker• Student politics• Strongman/muscleman• Working class occupations
11/39
![Page 49: Parachuters vs. Climbers - World Bankpubdocs.worldbank.org/en/655591530017622621/Dar... · Parachuters vs. Climbers Economic Consequences of Barriers to Political Entry in a Democracy](https://reader034.vdocument.in/reader034/viewer/2022042914/5f4fa34b768b7f613b6d52e5/html5/thumbnails/49.jpg)
Political Background
‘Mini-biographies’ collected by conducting primary research andclassified as follows:
Parachuters
• Political elite/family• Economic elite
• Business• Landlord
• Socio-cultural elite
• Social ties• White collar occupations
Climbers
• Activist• Local representative• Political worker• Student politics• Strongman/muscleman• Working class occupations
11/39
![Page 50: Parachuters vs. Climbers - World Bankpubdocs.worldbank.org/en/655591530017622621/Dar... · Parachuters vs. Climbers Economic Consequences of Barriers to Political Entry in a Democracy](https://reader034.vdocument.in/reader034/viewer/2022042914/5f4fa34b768b7f613b6d52e5/html5/thumbnails/50.jpg)
Political Background
‘Mini-biographies’ collected by conducting primary research andclassified as follows:
Parachuters
• Political elite/family• Economic elite
• Business
• Landlord• Socio-cultural elite
• Social ties• White collar occupations
Climbers
• Activist• Local representative• Political worker• Student politics• Strongman/muscleman• Working class occupations
11/39
![Page 51: Parachuters vs. Climbers - World Bankpubdocs.worldbank.org/en/655591530017622621/Dar... · Parachuters vs. Climbers Economic Consequences of Barriers to Political Entry in a Democracy](https://reader034.vdocument.in/reader034/viewer/2022042914/5f4fa34b768b7f613b6d52e5/html5/thumbnails/51.jpg)
Political Background
‘Mini-biographies’ collected by conducting primary research andclassified as follows:
Parachuters
• Political elite/family• Economic elite
• Business• Landlord
• Socio-cultural elite
• Social ties• White collar occupations
Climbers
• Activist• Local representative• Political worker• Student politics• Strongman/muscleman• Working class occupations
11/39
![Page 52: Parachuters vs. Climbers - World Bankpubdocs.worldbank.org/en/655591530017622621/Dar... · Parachuters vs. Climbers Economic Consequences of Barriers to Political Entry in a Democracy](https://reader034.vdocument.in/reader034/viewer/2022042914/5f4fa34b768b7f613b6d52e5/html5/thumbnails/52.jpg)
Political Background
‘Mini-biographies’ collected by conducting primary research andclassified as follows:
Parachuters
• Political elite/family• Economic elite
• Business• Landlord
• Socio-cultural elite
• Social ties• White collar occupations
Climbers
• Activist• Local representative• Political worker• Student politics• Strongman/muscleman• Working class occupations
11/39
![Page 53: Parachuters vs. Climbers - World Bankpubdocs.worldbank.org/en/655591530017622621/Dar... · Parachuters vs. Climbers Economic Consequences of Barriers to Political Entry in a Democracy](https://reader034.vdocument.in/reader034/viewer/2022042914/5f4fa34b768b7f613b6d52e5/html5/thumbnails/53.jpg)
Political Background
‘Mini-biographies’ collected by conducting primary research andclassified as follows:
Parachuters
• Political elite/family• Economic elite
• Business• Landlord
• Socio-cultural elite• Social ties
• White collar occupations
Climbers
• Activist• Local representative• Political worker• Student politics• Strongman/muscleman• Working class occupations
11/39
![Page 54: Parachuters vs. Climbers - World Bankpubdocs.worldbank.org/en/655591530017622621/Dar... · Parachuters vs. Climbers Economic Consequences of Barriers to Political Entry in a Democracy](https://reader034.vdocument.in/reader034/viewer/2022042914/5f4fa34b768b7f613b6d52e5/html5/thumbnails/54.jpg)
Political Background
‘Mini-biographies’ collected by conducting primary research andclassified as follows:
Parachuters
• Political elite/family• Economic elite
• Business• Landlord
• Socio-cultural elite• Social ties• White collar occupations
Climbers
• Activist• Local representative• Political worker• Student politics• Strongman/muscleman• Working class occupations
11/39
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Political Background
‘Mini-biographies’ collected by conducting primary research andclassified as follows:
Parachuters
• Political elite/family• Economic elite
• Business• Landlord
• Socio-cultural elite• Social ties• White collar occupations
Climbers
• Activist• Local representative• Political worker• Student politics• Strongman/muscleman• Working class occupations
11/39
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Political Background
‘Mini-biographies’ collected by conducting primary research andclassified as follows:
Parachuters
• Political elite/family• Economic elite
• Business• Landlord
• Socio-cultural elite• Social ties• White collar occupations
Climbers
• Activist
• Local representative• Political worker• Student politics• Strongman/muscleman• Working class occupations
11/39
![Page 57: Parachuters vs. Climbers - World Bankpubdocs.worldbank.org/en/655591530017622621/Dar... · Parachuters vs. Climbers Economic Consequences of Barriers to Political Entry in a Democracy](https://reader034.vdocument.in/reader034/viewer/2022042914/5f4fa34b768b7f613b6d52e5/html5/thumbnails/57.jpg)
Political Background
‘Mini-biographies’ collected by conducting primary research andclassified as follows:
Parachuters
• Political elite/family• Economic elite
• Business• Landlord
• Socio-cultural elite• Social ties• White collar occupations
Climbers
• Activist• Local representative
• Political worker• Student politics• Strongman/muscleman• Working class occupations
11/39
![Page 58: Parachuters vs. Climbers - World Bankpubdocs.worldbank.org/en/655591530017622621/Dar... · Parachuters vs. Climbers Economic Consequences of Barriers to Political Entry in a Democracy](https://reader034.vdocument.in/reader034/viewer/2022042914/5f4fa34b768b7f613b6d52e5/html5/thumbnails/58.jpg)
Political Background
‘Mini-biographies’ collected by conducting primary research andclassified as follows:
Parachuters
• Political elite/family• Economic elite
• Business• Landlord
• Socio-cultural elite• Social ties• White collar occupations
Climbers
• Activist• Local representative• Political worker
• Student politics• Strongman/muscleman• Working class occupations
11/39
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Political Background
‘Mini-biographies’ collected by conducting primary research andclassified as follows:
Parachuters
• Political elite/family• Economic elite
• Business• Landlord
• Socio-cultural elite• Social ties• White collar occupations
Climbers
• Activist• Local representative• Political worker• Student politics
• Strongman/muscleman• Working class occupations
11/39
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Political Background
‘Mini-biographies’ collected by conducting primary research andclassified as follows:
Parachuters
• Political elite/family• Economic elite
• Business• Landlord
• Socio-cultural elite• Social ties• White collar occupations
Climbers
• Activist• Local representative• Political worker• Student politics• Strongman/muscleman
• Working class occupations
11/39
![Page 61: Parachuters vs. Climbers - World Bankpubdocs.worldbank.org/en/655591530017622621/Dar... · Parachuters vs. Climbers Economic Consequences of Barriers to Political Entry in a Democracy](https://reader034.vdocument.in/reader034/viewer/2022042914/5f4fa34b768b7f613b6d52e5/html5/thumbnails/61.jpg)
Political Background
‘Mini-biographies’ collected by conducting primary research andclassified as follows:
Parachuters
• Political elite/family• Economic elite
• Business• Landlord
• Socio-cultural elite• Social ties• White collar occupations
Climbers
• Activist• Local representative• Political worker• Student politics• Strongman/muscleman• Working class occupations
11/39
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How might parachuters impact growth?
Positively
• Able to channel moreresources to theirconstituencies since they arewell connected/networked
• Avoid time/dynamicinconsistency problems byplanning for the long run
• Exert more effort becausereputation is at stake
Negatively
• Channel less resourcesbecause of adverse selectionor vote buying
• Don’t value public goods astherefore under-invest intheir provision
• Exert less effort asmotivated by rentseeking/corruption
12/39
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How might parachuters impact growth?
Positively
• Able to channel moreresources to theirconstituencies since they arewell connected/networked
• Avoid time/dynamicinconsistency problems byplanning for the long run
• Exert more effort becausereputation is at stake
Negatively
• Channel less resourcesbecause of adverse selectionor vote buying
• Don’t value public goods astherefore under-invest intheir provision
• Exert less effort asmotivated by rentseeking/corruption
12/39
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How might parachuters impact growth?
Positively
• Able to channel moreresources to theirconstituencies since they arewell connected/networked
• Avoid time/dynamicinconsistency problems byplanning for the long run
• Exert more effort becausereputation is at stake
Negatively
• Channel less resourcesbecause of adverse selectionor vote buying
• Don’t value public goods astherefore under-invest intheir provision
• Exert less effort asmotivated by rentseeking/corruption
12/39
![Page 65: Parachuters vs. Climbers - World Bankpubdocs.worldbank.org/en/655591530017622621/Dar... · Parachuters vs. Climbers Economic Consequences of Barriers to Political Entry in a Democracy](https://reader034.vdocument.in/reader034/viewer/2022042914/5f4fa34b768b7f613b6d52e5/html5/thumbnails/65.jpg)
How might parachuters impact growth?
Positively
• Able to channel moreresources to theirconstituencies since they arewell connected/networked
• Avoid time/dynamicinconsistency problems byplanning for the long run
• Exert more effort becausereputation is at stake
Negatively
• Channel less resourcesbecause of adverse selectionor vote buying
• Don’t value public goods astherefore under-invest intheir provision
• Exert less effort asmotivated by rentseeking/corruption
12/39
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How might parachuters impact growth?
Positively
• Able to channel moreresources to theirconstituencies since they arewell connected/networked
• Avoid time/dynamicinconsistency problems byplanning for the long run
• Exert more effort becausereputation is at stake
Negatively
• Channel less resourcesbecause of adverse selectionor vote buying
• Don’t value public goods astherefore under-invest intheir provision
• Exert less effort asmotivated by rentseeking/corruption
12/39
![Page 67: Parachuters vs. Climbers - World Bankpubdocs.worldbank.org/en/655591530017622621/Dar... · Parachuters vs. Climbers Economic Consequences of Barriers to Political Entry in a Democracy](https://reader034.vdocument.in/reader034/viewer/2022042914/5f4fa34b768b7f613b6d52e5/html5/thumbnails/67.jpg)
How might parachuters impact growth?
Positively
• Able to channel moreresources to theirconstituencies since they arewell connected/networked
• Avoid time/dynamicinconsistency problems byplanning for the long run
• Exert more effort becausereputation is at stake
Negatively
• Channel less resourcesbecause of adverse selectionor vote buying
• Don’t value public goods astherefore under-invest intheir provision
• Exert less effort asmotivated by rentseeking/corruption
12/39
![Page 68: Parachuters vs. Climbers - World Bankpubdocs.worldbank.org/en/655591530017622621/Dar... · Parachuters vs. Climbers Economic Consequences of Barriers to Political Entry in a Democracy](https://reader034.vdocument.in/reader034/viewer/2022042914/5f4fa34b768b7f613b6d52e5/html5/thumbnails/68.jpg)
How might parachuters impact growth?
Positively
• Able to channel moreresources to theirconstituencies since they arewell connected/networked
• Avoid time/dynamicinconsistency problems byplanning for the long run
• Exert more effort becausereputation is at stake
Negatively
• Channel less resourcesbecause of adverse selectionor vote buying
• Don’t value public goods astherefore under-invest intheir provision
• Exert less effort asmotivated by rentseeking/corruption
12/39
![Page 69: Parachuters vs. Climbers - World Bankpubdocs.worldbank.org/en/655591530017622621/Dar... · Parachuters vs. Climbers Economic Consequences of Barriers to Political Entry in a Democracy](https://reader034.vdocument.in/reader034/viewer/2022042914/5f4fa34b768b7f613b6d52e5/html5/thumbnails/69.jpg)
How might parachuters impact growth?
Positively
• Able to channel moreresources to theirconstituencies since they arewell connected/networked
• Avoid time/dynamicinconsistency problems byplanning for the long run
• Exert more effort becausereputation is at stake
Negatively
• Channel less resourcesbecause of adverse selectionor vote buying
• Don’t value public goods astherefore under-invest intheir provision
• Exert less effort asmotivated by rentseeking/corruption
12/39
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Identification Strategy
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Identification Strategy: Regression Discontinuity Design
where,
MarginOfVictoryc,t =VotesParachuter
c,t − VotesClimberc,t
TotalVotesc,t(1)
• MarginOfVictoryc,t > 0 ⇒ Parachuter won• MarginOfVictoryc,t < 0 ⇒ Parachuter lost/climber won
Density Test
13/39
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Identification Strategy: Regression Discontinuity Design
where,
MarginOfVictoryc,t =VotesParachuter
c,t − VotesClimberc,t
TotalVotesc,t(1)
• MarginOfVictoryc,t > 0 ⇒ Parachuter won• MarginOfVictoryc,t < 0 ⇒ Parachuter lost/climber won
Density Test
13/39
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Identification Strategy: Regression Discontinuity Design
where,
MarginOfVictoryc,t =VotesParachuter
c,t − VotesClimberc,t
TotalVotesc,t(1)
• MarginOfVictoryc,t > 0 ⇒ Parachuter won
• MarginOfVictoryc,t < 0 ⇒ Parachuter lost/climber won
Density Test 13/39
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Identification Strategy: Regression Discontinuity Design
where,
MarginOfVictoryc,t =VotesParachuter
c,t − VotesClimberc,t
TotalVotesc,t(1)
• MarginOfVictoryc,t > 0 ⇒ Parachuter won• MarginOfVictoryc,t < 0 ⇒ Parachuter lost/climber won
Density Test 13/39
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Local linear regression
yc,t = β1 + β21(MarginOfVictoryc,t > 0) + β3MarginOfVictoryc,t+ β41(MarginOfVictoryc,t > 0)×MarginOfVictoryc,t+ Zc,t + ec,t
(2)
where,
• β2 is the coefficient of interest (impact of parachuters)• yc,t is an outcome of interest (growth/redistribution) in
constituency c at time t• Zc,t are constituency- or candidate-level controls• Standard errors ec,t are clustered at the constituency level
14/39
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Empirical strategy: Polynomial control function
yc,t = β1 + β21(MarginOfVictoryc,t > 0) + f (MarginOfVictory)+ 1(MarginOfVictoryc,t > 0)× g(MarginOfVictory)+ Zc,t + ec,t
(3)
where,
• f (·) and g(·) are quadratic or cubic polynomial functions
15/39
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Findings
![Page 78: Parachuters vs. Climbers - World Bankpubdocs.worldbank.org/en/655591530017622621/Dar... · Parachuters vs. Climbers Economic Consequences of Barriers to Political Entry in a Democracy](https://reader034.vdocument.in/reader034/viewer/2022042914/5f4fa34b768b7f613b6d52e5/html5/thumbnails/78.jpg)
Parachuter vs climber close elections
# of Parachuters1 (63)0 (45)Not a close election
# of Parachuters1 (56)0 (57)Not a close election
# of Parachuters1 (54)0 (47)Not a close election
1990 1995 2000
# of Parachuters1 (39)0 (45)Not a close election
# of Parachuters1 (30)0 (46)Not a close election
2005 2010
16/39
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Findings
Covariate balance
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Covariate balance: Economic conditions
0
2
4
6
8
−.5 −.4 −.3 −.2 −.1 0 .1 .2 .3 .4 .5
Margin of victory − parachuter
−1
0
1
2
−.5 −.4 −.3 −.2 −.1 0 .1 .2 .3 .4 .5
Margin of victory − parachuter
Initial level of ln(luminosity) Lagged growth rates of lights
10
11
12
13
−.5 −.4 −.3 −.2 −.1 0 .1 .2 .3 .4 .5
Margin of victory − parachuter
0
.2
.4
.6
.8
1
−.5 −.4 −.3 −.2 −.1 0 .1 .2 .3 .4 .5
Margin of victory − parachuter
Ln(Population) Share of villages with electricity connection17/39
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Covariate balance: Political competition
11.5
12
12.5
13
−.5 −.4 −.3 −.2 −.1 0 .1 .2 .3 .4 .5
Margin of victory − parachuter
.3
.4
.5
.6
.7
.8
−.5 −.4 −.3 −.2 −.1 0 .1 .2 .3 .4 .5
Margin of victory − parachuter
Ln(Electors) Voter turnout
0
20
40
60
80
−.5 −.4 −.3 −.2 −.1 0 .1 .2 .3 .4 .5
Margin of victory − parachuter
2
4
6
8
10
−.5 −.4 −.3 −.2 −.1 0 .1 .2 .3 .4 .5
Margin of victory − parachuter
Total contestants Effective number of candidates 18/39
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Covariate balance: Candidate’s identity
0
.2
.4
.6
.8
1
−.5 −.4 −.3 −.2 −.1 0 .1 .2 .3 .4 .5
Margin of victory − parachuter
−.5
0
.5
1
−.5 −.4 −.3 −.2 −.1 0 .1 .2 .3 .4 .5
Margin of victory − parachuter
Sex (female) Religion (muslim)
0
.2
.4
.6
.8
1
−.5 −.4 −.3 −.2 −.1 0 .1 .2 .3 .4 .5
Margin of victory − parachuter
0
.2
.4
.6
.8
1
−.5 −.4 −.3 −.2 −.1 0 .1 .2 .3 .4 .5
Margin of victory − parachuter
Ethnicity (lower caste) Ethnicity (middle caste) 19/39
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Covariate balance: Candidate’s characteristics
0
.2
.4
.6
.8
1
−.5 −.4 −.3 −.2 −.1 0 .1 .2 .3 .4 .5
Margin of victory − parachuter
−.5
0
.5
1
1.5
2
−.5 −.4 −.3 −.2 −.1 0 .1 .2 .3 .4 .5
Margin of victory − parachuter
Ethnicity (upper caste) Candidate incumbency
0
.5
1
1.5
−.5 −.4 −.3 −.2 −.1 0 .1 .2 .3 .4 .5
Margin of victory − parachuter
0
.5
1
1.5
−.5 −.4 −.3 −.2 −.1 0 .1 .2 .3 .4 .5
Margin of victory − parachuter
National party Aligned to ruling party 20/39
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Findings
Economic impacts
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Impact of parachuters on growth (5-year window)
−.2
0
.2
.4
.6
.8G
row
th r
ate
−.1 −.05 0 .05 .1
Margin of victory − parachuter
21/39
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Impact of parachuters on growth (4-year window)
−.2
0
.2
.4
.6
Gro
wth
rate
−.1 −.05 0 .05 .1
Margin of victory − parachuter
RD estimates
22/39
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Robustness
• Disaggregated estimates by politician’s term shows that effectis coming from 3rd and 4th year in office Robustness 1
• Findings are strongest when the executive is at its weakestRobustness 2
• Robust to alternative bandwidths, kernels and polynomialcontrol functions Robustness 3
• Results not driven by:
• Urban or border areas Robustness 4
• Nor any significant regional heterogeneity Robustness 5
• Dropping individual entry routes iteratively doesn’t changesign of point estimate Robustness 6
• Parachuters also lead to lower school construction Robustness 7
23/39
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Robustness
• Disaggregated estimates by politician’s term shows that effectis coming from 3rd and 4th year in office Robustness 1
• Findings are strongest when the executive is at its weakestRobustness 2
• Robust to alternative bandwidths, kernels and polynomialcontrol functions Robustness 3
• Results not driven by:
• Urban or border areas Robustness 4
• Nor any significant regional heterogeneity Robustness 5
• Dropping individual entry routes iteratively doesn’t changesign of point estimate Robustness 6
• Parachuters also lead to lower school construction Robustness 7
23/39
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Robustness
• Disaggregated estimates by politician’s term shows that effectis coming from 3rd and 4th year in office Robustness 1
• Findings are strongest when the executive is at its weakestRobustness 2
• Robust to alternative bandwidths, kernels and polynomialcontrol functions Robustness 3
• Results not driven by:
• Urban or border areas Robustness 4
• Nor any significant regional heterogeneity Robustness 5
• Dropping individual entry routes iteratively doesn’t changesign of point estimate Robustness 6
• Parachuters also lead to lower school construction Robustness 7
23/39
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Robustness
• Disaggregated estimates by politician’s term shows that effectis coming from 3rd and 4th year in office Robustness 1
• Findings are strongest when the executive is at its weakestRobustness 2
• Robust to alternative bandwidths, kernels and polynomialcontrol functions Robustness 3
• Results not driven by:
• Urban or border areas Robustness 4
• Nor any significant regional heterogeneity Robustness 5
• Dropping individual entry routes iteratively doesn’t changesign of point estimate Robustness 6
• Parachuters also lead to lower school construction Robustness 7
23/39
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Robustness
• Disaggregated estimates by politician’s term shows that effectis coming from 3rd and 4th year in office Robustness 1
• Findings are strongest when the executive is at its weakestRobustness 2
• Robust to alternative bandwidths, kernels and polynomialcontrol functions Robustness 3
• Results not driven by:
• Urban or border areas Robustness 4
• Nor any significant regional heterogeneity Robustness 5
• Dropping individual entry routes iteratively doesn’t changesign of point estimate Robustness 6
• Parachuters also lead to lower school construction Robustness 7
23/39
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Robustness
• Disaggregated estimates by politician’s term shows that effectis coming from 3rd and 4th year in office Robustness 1
• Findings are strongest when the executive is at its weakestRobustness 2
• Robust to alternative bandwidths, kernels and polynomialcontrol functions Robustness 3
• Results not driven by:• Urban or border areas Robustness 4
• Nor any significant regional heterogeneity Robustness 5
• Dropping individual entry routes iteratively doesn’t changesign of point estimate Robustness 6
• Parachuters also lead to lower school construction Robustness 7
23/39
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Robustness
• Disaggregated estimates by politician’s term shows that effectis coming from 3rd and 4th year in office Robustness 1
• Findings are strongest when the executive is at its weakestRobustness 2
• Robust to alternative bandwidths, kernels and polynomialcontrol functions Robustness 3
• Results not driven by:• Urban or border areas Robustness 4
• Nor any significant regional heterogeneity Robustness 5
• Dropping individual entry routes iteratively doesn’t changesign of point estimate Robustness 6
• Parachuters also lead to lower school construction Robustness 7
23/39
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Robustness
• Disaggregated estimates by politician’s term shows that effectis coming from 3rd and 4th year in office Robustness 1
• Findings are strongest when the executive is at its weakestRobustness 2
• Robust to alternative bandwidths, kernels and polynomialcontrol functions Robustness 3
• Results not driven by:• Urban or border areas Robustness 4
• Nor any significant regional heterogeneity Robustness 5
• Dropping individual entry routes iteratively doesn’t changesign of point estimate Robustness 6
• Parachuters also lead to lower school construction Robustness 7
23/39
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Robustness
• Disaggregated estimates by politician’s term shows that effectis coming from 3rd and 4th year in office Robustness 1
• Findings are strongest when the executive is at its weakestRobustness 2
• Robust to alternative bandwidths, kernels and polynomialcontrol functions Robustness 3
• Results not driven by:• Urban or border areas Robustness 4
• Nor any significant regional heterogeneity Robustness 5
• Dropping individual entry routes iteratively doesn’t changesign of point estimate Robustness 6
• Parachuters also lead to lower school construction Robustness 7
23/39
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Findings
Ascriptive identity vs background
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Adding covariates
(1) (2) (3) (4)
Conventional -0.16 -0.15 -0.16 -0.08(0.09)* (0.09) (0.09)* (0.04)*
Bias-corrected/ -0.32 -0.30 -0.32 -0.15Robust (0.09)*** (0.09)*** (0.09)*** (0.04)***
[0.11]*** [0.12]*** [0.11]*** [0.06]***
N 225 225 225 133Bandwidth 0.11 0.11 0.11 0.11Constituency controls No Yes Yes YesCandidate controls No No Yes YesIncumbency control No No No Yes
Note: constituency level controls are effective number of candidates andvoter turnout; candidate level controls are dummies for sex, religion, casteand party affiliation of candidate
24/39
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Adding covariates
(1) (2) (3) (4)
Conventional -0.16 -0.15 -0.16 -0.08(0.09)* (0.09) (0.09)* (0.04)*
Bias-corrected/ -0.32 -0.30 -0.32 -0.15Robust (0.09)*** (0.09)*** (0.09)*** (0.04)***
[0.11]*** [0.12]*** [0.11]*** [0.06]***
N 225 225 225 133Bandwidth 0.11 0.11 0.11 0.11Constituency controls No Yes Yes YesCandidate controls No No Yes YesIncumbency control No No No Yes
Note: constituency level controls are effective number of candidates andvoter turnout; candidate level controls are dummies for sex, religion, casteand party affiliation of candidate
24/39
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Robustness to restricting candidate pool
−0.16−0.17
−0.22−0.21
−0.13 −0.14−0.12
−0.40
−0.20
0.00
0.20
Parachuter
Drop none Drop women candidates
Drop reserved constituencies Drop lower caste candidates
Drop middle caste candidates Drop upper caste candidates
Drop muslim candidates
25/39
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Summary so far
• Barriers to political entry and post-colonial elite persistencehave perverse economic consequences, especially whenexecutive constraints are weak
• Magnitude of effect is meaningful: estimates ofGDP-to-night-lights elasticity show that electing parachutersleads to 0.2 percentage point lower GDP growth per yearcompared to constituencies where climbers are elected
• Leader’s entry route is a significant feature of politicalselection – perhaps more important than the roleconventionally assigned to ascriptive identities such as sex,religion and caste
26/39
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Summary so far
• Barriers to political entry and post-colonial elite persistencehave perverse economic consequences, especially whenexecutive constraints are weak
• Magnitude of effect is meaningful: estimates ofGDP-to-night-lights elasticity show that electing parachutersleads to 0.2 percentage point lower GDP growth per yearcompared to constituencies where climbers are elected
• Leader’s entry route is a significant feature of politicalselection – perhaps more important than the roleconventionally assigned to ascriptive identities such as sex,religion and caste
26/39
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Summary so far
• Barriers to political entry and post-colonial elite persistencehave perverse economic consequences, especially whenexecutive constraints are weak
• Magnitude of effect is meaningful: estimates ofGDP-to-night-lights elasticity show that electing parachutersleads to 0.2 percentage point lower GDP growth per yearcompared to constituencies where climbers are elected
• Leader’s entry route is a significant feature of politicalselection – perhaps more important than the roleconventionally assigned to ascriptive identities such as sex,religion and caste
26/39
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Mechanisms
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How might parachuters lead to lower growth?
Strategies that elites could use to preserve own power:
1. Regulation of technology adoption
• Elites would raise barriers to tech. adoption to block progressfor the masses (Kuznets et al., 1968; Mokyr, 1992; Krusell and Rios-Rull, 1996; Parente
and Prescott, 1999)
2. Factor price manipulation
• Elites would like to keep wages low ⇒ greater profits (Acemoglu,
2006)
3. Corruption and revenue extraction
• Elites set distortionary taxes to transfer resources tothemselves (Acemoglu, 2006)
27/39
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How might parachuters lead to lower growth?
Strategies that elites could use to preserve own power:
1. Regulation of technology adoption
• Elites would raise barriers to tech. adoption to block progressfor the masses (Kuznets et al., 1968; Mokyr, 1992; Krusell and Rios-Rull, 1996; Parente
and Prescott, 1999)
2. Factor price manipulation
• Elites would like to keep wages low ⇒ greater profits (Acemoglu,
2006)
3. Corruption and revenue extraction
• Elites set distortionary taxes to transfer resources tothemselves (Acemoglu, 2006)
27/39
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How might parachuters lead to lower growth?
Strategies that elites could use to preserve own power:
1. Regulation of technology adoption• Elites would raise barriers to tech. adoption to block progress
for the masses (Kuznets et al., 1968; Mokyr, 1992; Krusell and Rios-Rull, 1996; Parente
and Prescott, 1999)
2. Factor price manipulation
• Elites would like to keep wages low ⇒ greater profits (Acemoglu,
2006)
3. Corruption and revenue extraction
• Elites set distortionary taxes to transfer resources tothemselves (Acemoglu, 2006)
27/39
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How might parachuters lead to lower growth?
Strategies that elites could use to preserve own power:
1. Regulation of technology adoption• Elites would raise barriers to tech. adoption to block progress
for the masses (Kuznets et al., 1968; Mokyr, 1992; Krusell and Rios-Rull, 1996; Parente
and Prescott, 1999)
2. Factor price manipulation
• Elites would like to keep wages low ⇒ greater profits (Acemoglu,
2006)
3. Corruption and revenue extraction
• Elites set distortionary taxes to transfer resources tothemselves (Acemoglu, 2006)
27/39
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How might parachuters lead to lower growth?
Strategies that elites could use to preserve own power:
1. Regulation of technology adoption• Elites would raise barriers to tech. adoption to block progress
for the masses (Kuznets et al., 1968; Mokyr, 1992; Krusell and Rios-Rull, 1996; Parente
and Prescott, 1999)
2. Factor price manipulation• Elites would like to keep wages low ⇒ greater profits (Acemoglu,
2006)
3. Corruption and revenue extraction
• Elites set distortionary taxes to transfer resources tothemselves (Acemoglu, 2006)
27/39
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How might parachuters lead to lower growth?
Strategies that elites could use to preserve own power:
1. Regulation of technology adoption• Elites would raise barriers to tech. adoption to block progress
for the masses (Kuznets et al., 1968; Mokyr, 1992; Krusell and Rios-Rull, 1996; Parente
and Prescott, 1999)
2. Factor price manipulation• Elites would like to keep wages low ⇒ greater profits (Acemoglu,
2006)
3. Corruption and revenue extraction
• Elites set distortionary taxes to transfer resources tothemselves (Acemoglu, 2006)
27/39
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How might parachuters lead to lower growth?
Strategies that elites could use to preserve own power:
1. Regulation of technology adoption• Elites would raise barriers to tech. adoption to block progress
for the masses (Kuznets et al., 1968; Mokyr, 1992; Krusell and Rios-Rull, 1996; Parente
and Prescott, 1999)
2. Factor price manipulation• Elites would like to keep wages low ⇒ greater profits (Acemoglu,
2006)
3. Corruption and revenue extraction• Elites set distortionary taxes to transfer resources to
themselves (Acemoglu, 2006)
27/39
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Mechanisms
Regulation of Technology Adoption
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Outcome: Irrigation investments (a proxy for tech. adoption)
Depth of water tables
• Irrigation key to increaseagricultural productivity
• Use depth below groundlevel to proxy forinvestments in tubewells/mechanized pumps
• Lower water tables suggestsagrarian dynamism (greatertechnology adoption)
Figure 3: Groundwater depth inRabi/lean season (November)
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No impact on regulation of technology adoption
0
2
4
6
8
Gro
un
dw
ate
r d
ep
th
−.1 −.05 0 .05 .1
Margin of victory − parachuter
0
2
4
6
8
Gro
un
dw
ate
r d
ep
th
−.1 −.05 0 .05 .1
Margin of victory − parachuter
5-year window 4-year window
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Mechanisms
Factor Price Manipulation
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Wages not lower in districts with higher parachuters
60
65
70
75
80
Ma
le w
ag
es
.4 .6 .8 1Proportion of parachuters in district
40
50
60
70
Fe
ma
le w
ag
es
.4 .6 .8 1Proportion of parachuters in district
Male wages Female wages
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Mechanisms
Revenue Extraction
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Crime and corruption
• Bureaucratic control via ‘transfers and posting’ is a majorsource of revenue of rent seeking in which MLAs can play animportant role (Ghosh, 1997; Saksena, 1993)
• I analyzed data on around 100,000 transfers of non-IAS policeofficers (these investigating offers form backbone of policingsystem)
• Hypothesis: Misallocation of police resources by elites ⇒reduced efficiency of investigation ⇒ increased crime rates ⇒depressed growth
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Crime and corruption
• Bureaucratic control via ‘transfers and posting’ is a majorsource of revenue of rent seeking in which MLAs can play animportant role (Ghosh, 1997; Saksena, 1993)
• I analyzed data on around 100,000 transfers of non-IAS policeofficers (these investigating offers form backbone of policingsystem)
• Hypothesis: Misallocation of police resources by elites ⇒reduced efficiency of investigation ⇒ increased crime rates ⇒depressed growth
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Crime and corruption
• Bureaucratic control via ‘transfers and posting’ is a majorsource of revenue of rent seeking in which MLAs can play animportant role (Ghosh, 1997; Saksena, 1993)
• I analyzed data on around 100,000 transfers of non-IAS policeofficers (these investigating offers form backbone of policingsystem)
• Hypothesis: Misallocation of police resources by elites ⇒reduced efficiency of investigation ⇒ increased crime rates ⇒depressed growth
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Parachuters interfere in bureaucratic reassignment decisions
−.1
−.05
0
.05
Ln
(Ave
rag
e t
ran
sfe
rs o
f in
ve
stig
atin
g o
ffic
er
in d
istr
ict)
0
1
2
3
4
De
nsity
−.4 −.2 0 .2 .4
Proportion of parachuters in district
−.05
0
.05
.1
Ln
(Ave
rag
e t
en
ure
of
inve
stig
atin
g o
ffic
er
in d
istr
ict)
0
1
2
3
4
De
nsity
−.4 −.2 0 .2 .4
Proportion of parachuters in district
Ln(transfers) Ln(duration)
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Police turnover-crime elasticity
Ln(All crime) Ln(Economic crime)
(1) (2) (3) (4) (5) (6)
Ln(duration) 0.01 0.01 0.01 0.12 0.16 0.17(0.02) (0.02) (0.02) (0.08) (0.08)* (0.08)**
N 444 432 432 444 432 432Mean 7.80 7.81 7.81 4.27 4.28 4.28District FE Yes Yes Yes Yes Yes YesYear FE Yes Yes Yes Yes Yes YesZone × year trends No Yes No No Yes NoRange × year trends No No Yes No No Yes
Note: Table presents results from the following regression in a district-year panel:ln(duration)dt = βln(crime)dt + ud + f (t) + edt where, ln(duration)dt is the log ofaverage tenure of investigating officers in district d in year t; ln(crime)dt is the logof crime (either total crime or economic crimes) in district d in year t; ud are districtfixed effects; f (t) are non-parametric controls such as year FE, zone × year trends andrange × year trends; edt is the idiosyncratic error term that is clustered at the districtlevel.
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Police turnover-crime elasticity
Ln(All crime) Ln(Economic crime)
(1) (2) (3) (4) (5) (6)
Ln(duration) 0.01 0.01 0.01 0.12 0.16 0.17(0.02) (0.02) (0.02) (0.08) (0.08)* (0.08)**
N 444 432 432 444 432 432Mean 7.80 7.81 7.81 4.27 4.28 4.28District FE Yes Yes Yes Yes Yes YesYear FE Yes Yes Yes Yes Yes YesZone × year trends No Yes No No Yes NoRange × year trends No No Yes No No Yes
Note: Table presents results from the following regression in a district-year panel:ln(duration)dt = βln(crime)dt + ud + f (t) + edt where, ln(duration)dt is the log ofaverage tenure of investigating officers in district d in year t; ln(crime)dt is the logof crime (either total crime or economic crimes) in district d in year t; ud are districtfixed effects; f (t) are non-parametric controls such as year FE, zone × year trends andrange × year trends; edt is the idiosyncratic error term that is clustered at the districtlevel.
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↑ Crime, ↓ growth
Bandwidth: h Bandwidth: h/2
(1) (2) (3) (4)
Parachuter 0.04 -0.31 -0.14 -0.45(0.10) (0.12)** (0.12) (0.16)***
N 116 109 63 57Mean 0.17 0.25 0.14 0.28Sample restriction:Economic crime Low High Low High
Note: Col (1) and col (3) restrict the sample to districts whichhave below median crime rates, whereas col (2) and col (4) restrictthe sample to districts above median crime rates.
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↑ Crime, ↓ growth
Bandwidth: h Bandwidth: h/2
(1) (2) (3) (4)
Parachuter 0.04 -0.31 -0.14 -0.45(0.10) (0.12)** (0.12) (0.16)***
N 116 109 63 57Mean 0.17 0.25 0.14 0.28Sample restriction:Economic crime Low High Low High
Note: Col (1) and col (3) restrict the sample to districts whichhave below median crime rates, whereas col (2) and col (4) restrictthe sample to districts above median crime rates.
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Discussion
• Suggestive evidence that misallocation of bureaucraticresources underpins politician-growth link
• Do climbers perform better because they are better informedand parachuters perform poorly because they incompetent?
• Or, are vested interests of the elite responsible for corruption?• Difficult to untie these two competing explanations but
perhaps examining heterogeneity by candidate’s traits mightprovide some hints?
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Discussion
• Suggestive evidence that misallocation of bureaucraticresources underpins politician-growth link
• Do climbers perform better because they are better informedand parachuters perform poorly because they incompetent?
• Or, are vested interests of the elite responsible for corruption?• Difficult to untie these two competing explanations but
perhaps examining heterogeneity by candidate’s traits mightprovide some hints?
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Discussion
• Suggestive evidence that misallocation of bureaucraticresources underpins politician-growth link
• Do climbers perform better because they are better informedand parachuters perform poorly because they incompetent?
• Or, are vested interests of the elite responsible for corruption?
• Difficult to untie these two competing explanations butperhaps examining heterogeneity by candidate’s traits mightprovide some hints?
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Discussion
• Suggestive evidence that misallocation of bureaucraticresources underpins politician-growth link
• Do climbers perform better because they are better informedand parachuters perform poorly because they incompetent?
• Or, are vested interests of the elite responsible for corruption?• Difficult to untie these two competing explanations but
perhaps examining heterogeneity by candidate’s traits mightprovide some hints?
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Ability or vested interests?
Bandwidth: h Bandwidth: h/2
(1) (2) (3) (4)
Panel A: AgeParachuter -0.11 -0.16 -0.34 -0.39
(0.14) (0.13) (0.19)* (0.16)**
N 76 77 47 41Mean 0.26 0.20 0.24 0.17Sample restriction Young Old Young Old
Note: Col (1) and col (3) restrict the sample to legislators withbelow median age, whereas col (2) and col (4) restrict the sampleto legislators with above median age.
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Ability or vested interests?
Bandwidth: h Bandwidth: h/2
(1) (2) (3) (4)
Panel A: AgeParachuter -0.11 -0.16 -0.34 -0.39
(0.14) (0.13) (0.19)* (0.16)**
N 76 77 47 41Mean 0.26 0.20 0.24 0.17Sample restriction Young Old Young Old
Note: Col (1) and col (3) restrict the sample to legislators withbelow median age, whereas col (2) and col (4) restrict the sampleto legislators with above median age.
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Ability or vested interests?
Bandwidth: h Bandwidth: h/2
(1) (2) (3) (4)
Panel B: EducationParachuter -0.01 -0.22 -0.43 -0.41
(0.24) (0.14) (0.21)* (0.18)**
N 35 83 16 51Mean 0.17 0.23 0.07 0.20
Sample restrictionBelow
graduateAbove
graduateBelow
graduateAbove
graduate
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Ability or vested interests?
Bandwidth: h Bandwidth: h/2
(1) (2) (3) (4)
Panel B: EducationParachuter -0.01 -0.22 -0.43 -0.41
(0.24) (0.14) (0.21)* (0.18)**
N 35 83 16 51Mean 0.17 0.23 0.07 0.20
Sample restrictionBelow
graduateAbove
graduateBelow
graduateAbove
graduate
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Ability or vested interests?
Bandwidth: h Bandwidth: h/2
(1) (2) (3) (4)
Panel C: ExperienceParachuter -0.04 -0.19 -0.27 -0.43
(0.15) (0.13) (0.23) (0.15)***
N 74 79 39 47Mean 0.29 0.20 0.28 0.16Sample restriction Inexp. Exp. Inexp. Exp.
Note: Col (1) and col (3) restrict the sample to candidates with belowmedian political experience, whereas col (2) and col (4) restrict thesample to legislators with above median political experience.
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Ability or vested interests?
Bandwidth: h Bandwidth: h/2
(1) (2) (3) (4)
Panel C: ExperienceParachuter -0.04 -0.19 -0.27 -0.43
(0.15) (0.13) (0.23) (0.15)***
N 74 79 39 47Mean 0.29 0.20 0.28 0.16Sample restriction Inexp. Exp. Inexp. Exp.
Note: Col (1) and col (3) restrict the sample to candidates with belowmedian political experience, whereas col (2) and col (4) restrict thesample to legislators with above median political experience.
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Conclusion
• Results underline perverse consequences of persistence of a‘homegrown’ elite in a vibrant democracy
• ‘Blame’ falls on political parties, where the lack of intra-partydemocracy, non-meritocratic promotion and weak organizationleave the door open for elite capture
• Understanding politician-bureaucratic linkages is an importantavenue for future research
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Conclusion
• Results underline perverse consequences of persistence of a‘homegrown’ elite in a vibrant democracy
• ‘Blame’ falls on political parties, where the lack of intra-partydemocracy, non-meritocratic promotion and weak organizationleave the door open for elite capture
• Understanding politician-bureaucratic linkages is an importantavenue for future research
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Conclusion
• Results underline perverse consequences of persistence of a‘homegrown’ elite in a vibrant democracy
• ‘Blame’ falls on political parties, where the lack of intra-partydemocracy, non-meritocratic promotion and weak organizationleave the door open for elite capture
• Understanding politician-bureaucratic linkages is an importantavenue for future research
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Impact of parachuters on growth in close elections
Linear Polynomial: quadratic Polynomial: cubic
(1) (2) (3) (4) (5) (6)
Parachuter −0.16 −0.12 −0.32 −0.22 −0.41 −0.24(0.09)* (0.09) (0.12)*** (0.11)** (0.13)*** (0.12)**
Initial level of ln(luminosity) −0.06 −0.05 −0.05(0.01)*** (0.01)*** (0.01)***
N 225 225 225 225 225 225Mean 0.21 0.21 0.21 0.21 0.21 0.21
Note: Table presents results for (triangular) kernel RD estimates of the impact of parachuters on growth rateof night lights, measured by difference in ln(luminosity scores) over the election cycle (4-year window) andwinsorized at the 5th and 95th percentiles. A four-year window of the election cycle is chosen to avoid biasingthe estimate due effects of an election year. Each coefficient in this table represents a separate regressionusing local linear and polynomial controls. The optimal bandwidth (h = 0.11) was calculated according to thealgorithm in CCT (2017). Standard errors are clustered at the constituency level. * p < 0.1, ** p < 0.05,*** p < 0.01.
Visual RD
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Impact on lights, by time in office
(1) (2) (3) (4) (5)Term 1 Term 2 Term 3 Term 4 Term 5
A. Bandwidth = h/4Parachuter -0.01 -0.19 -0.28 -0.71 0.27
(0.23) (0.20) (0.54) (0.40)* (0.23)
N 44 44 53 53 53Mean -.026 .25 .086 .32 .14
B. Bandwidth = h/2Parachuter -0.19 0.10 -0.35 -0.64 0.24
(0.19) (0.19) (0.44) (0.33)* (0.20)
N 81 81 104 104 104Mean -.041 .27 .075 .32 .13
Robustness
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Heterogeneity by strength of executive
Bandwidth: h Bandwidth: h/2
(1) (2) (3) (4)
Parachuter -0.26 0.11 -0.34 -0.15(0.11)** (0.10) (0.15)** (0.16)
N 133 92 75 45Mean 0.16 0.29 0.17 0.27Sample restriction:Executive constraints Weak Strong Weak Strong
Note: Col (1) and col (3) restrict the sample to years with weak exe-cutive constraints (1990-2005), whereas col (2) and col (4) restrictthe sample to years when executive was strong (2005-15).
Robustness
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Outcome: Variability in vote %
Disaggregated vote shares
• Use micro data to look atdistribution of vote sharesacross polling stations
• Define coefficient ofvariation of votes as ameasures ofwithin-constituency ‘voteinequality’
• Higher inequality/variabilitysuggests vote buying
Figure 4: Polling station level data
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Figure 5: Inequality in vote distribution within a constituency
.2
.4
.6
.8
−.5 −.4 −.3 −.2 −.1 0 .1 .2 .3 .4 .5
Margin of victory − parachuter
Balance: Political competition covariates
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Figure 6: Dropping constituency/candidates with peculiar characteristics
−0.16−0.16
−0.30
−0.11
−0.50
−0.40
−0.30
−0.20
−0.10
0.00
Parachuter
Drop none Drop urban constituencies
Drop border constituencies Drop partial election cycles (1990 and 2010)
Robustness
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Figure 7: Dropping administrative divisions iteratively
−0.16 −0.15
−0.17
−0.15
−0.10
−0.19
−0.15
−0.20
−0.14
−0.40
−0.30
−0.20
−0.10
0.00
0.10
Parachuter
Drop Tirhut Division Drop Saran Division Drop Darbhanga Division
Drop Kosi Division Drop Purnia Division Drop Bhagalpur Division
Drop Munger Division Drop Magadh Division Drop Patna Division
Robustness
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Figure 8: Robustness for impact of parachuters on growth for alternativedefinitions
−0.16
−0.23−0.21
−0.12 −0.13 −0.13−0.11
−0.06 −0.08
−0.14 −0.13−0.16
−0.60
−0.40
−0.20
0.00
0.20
0.40
Parachuter
Drop none Drop P−family Drop P−business
Drop P−landlord Drop P−ties Drop P−parachuter occ.
Drop C−activist Drop C−party worker Drop C−local rep.
Drop C−student politics Drop C−strongman Drop C−climber occ.
Robustness
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Threats to identification
0
.5
1
1.5
2
2.5
Density
−.5 0 .5
Margin of victory − parachuter
0
1
2
3
−1 −.5 0 .5 1
Note: Figure depicts whether there is a discontinuity in the density of the running variable (margin of victory).
Discontinuity estimate (log difference in height) for ‘parachuter’ running variable is -.077 and the standard error is
.20. This implies that there is no sorting and the cutoff cannot be manipulated. Forcing variable
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References i
References
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Ager, P. (2013). The persistence of de facto power: Elites and economic developmentin the us south, 1840-1960. Technical report, Universitat Pompeu Fabra.
Banerjee, A. and Iyer, L. (2005). History, institutions, and economic performance:The legacy of colonial land tenure systems in india. American Economic Review,pages 1190–1213.
Bhalotra, S., Clots-Figueras, I., Cassan, G., and Iyer, L. (2014). Religion, politicianidentity and development outcomes: Evidence from india. Journal of EconomicBehavior & Organization.
Chattopadhyay, R. and Duflo, E. (2004). Women as policy makers: Evidence from arandomized policy experiment in india. Econometrica, 72(5):1409–1443.
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References ii
Chhibber, P., Shastri, S., and Sisson, R. (2004). Federal arrangements and theprovision of public goods in india. Asian Survey, 44(3):339–352.
Dell, M. (2010). The persistent effects of peru’s mining mita. Econometrica,78(6):1863–1903.
Ghosh, S. (1997). Indian Democracy Derailed Politics and Politicians. APH Publishing.
Krusell, P. and Rios-Rull, J.-V. (1996). Vested interests in a positive theory ofstagnation and growth. The Review of Economic Studies, 63(2):301–329.
Kuznets, S. S., Kuznets, S. S., et al. (1968). Toward a theory of economic growth,with reflections on the economic growth of modern nations.
Mokyr, J. (1992). The lever of riches: Technological creativity and economic progress.Oxford University Press.
Oldenburg, P. (2018). Political elites in south asia. In The Palgrave Handbook ofPolitical Elites, pages 203–223. Springer.
Pande, R. (2003). Can mandated political representation increase policy influence fordisadvantaged minorities? theory and evidence from india. The AmericanEconomic Review, 93(4):1132–1151.
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References iii
Parente, S. L. and Prescott, E. C. (1999). Monopoly rights: A barrier to riches.American Economic Review, 89(5):1216–1233.
Saksena, N. S. (1993). India, Towards Anarchy, 1967-1992. Abhinav Publications.