Journal
JOURNAL OF DEVELOPMENT ECONOMICS
Volume 97, Issue 2, Pages 167-181Publisher
ELSEVIER
DOI: 10.1016/j.jdeveco.2011.05.005
Keywords
Political economy; Government expenditures; Disaster relief; India; Voting
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Using rainfall, public relief, and election data from India, we examine how governments respond to adverse shocks and how voters react to these responses. The data show that voters punish the incumbent party for weather events beyond its control. However, fewer voters punish the ruling party when its government responds vigorously to the crisis, indicating that voters reward the government for responding to disasters. We also find evidence suggesting that voters only respond to rainfall and government relief efforts during the year immediately preceding the election. In accordance with these electoral incentives, governments appear to be more generous with disaster relief in election years. These results describe how failures in electoral accountability can lead to suboptimal policy outcomes. (C) 2011 Elsevier B.V. All rights reserved.
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