vrathi0 / politics_growth

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26-01-2024 (mini) Update #7

Closed vrathi0 closed 3 months ago

vrathi0 commented 7 months ago

Data Environment

Variable Construction

Figures

1. Number of postings orders always peak in the year after election.

Screenshot 2024-01-26 at 3 47 30 PM

2. Candidates with more assets are significantly correlated with higher churn at the bureaucracy

Looking into total churn over 5 years and after taking out district level fixed effects, ie deriving from within district variation in asset levels. One SD increase in assets (at district level) are correlated with 21% increase in bureaucratic churn (compared to mean). The regression coefficient has a t-stat of 3.8

Screenshot 2024-01-26 at 3 59 32 PM

We can also look at year specific effects. For example just looking at contemporaneous year effects, we find similar 18% effect size.

However, effects for all other years are noisy zero.

Screenshot 2024-01-26 at 4 06 46 PM

This is okay as individual year effects can be noisy and its okay for the effect to play out over the entire term limit.

3. There is some evidence of non-linearity in the above relationship.

Using the same specification, but adding a higher order degree 2 asset term in the regression, we get some non-linearity. However, the nonlinearity only kicks in far right part of the support and possibly not that interesting.

Screenshot 2024-01-26 at 4 14 07 PM

4. Number of criminal charges are not related with the bureaucratic churn. Number of criminal charges are also quite orthogonal to the asset levels.

Current/Next Steps

  1. More dimensions can be analyzed here ( incumbent/alignment with the state party, etc). But I am currently focussing on moving one step ahead and compiling data about projects that brought big investments with them. What I have in mind is that assuming big investment projects are decided at higher level than local politician, but local politician can still respond. A big investment project might attract a certain kind of politician because s/he expects that it provides them with more opportunities for holdups. This increases their interference with the bureaucracy and kicks in the phenomenon of interest to me. I am looking into a few potential candidates like list of big projects, construction price index, etc that are likely to be correlated with local economic expectation.

  2. Procuring posting data of more states