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Nishant Vats on the Impact of Income Guarantee on Farm Incomes in India

Ideas of India

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How Does Political Power Sharing Affect Economic Activity?

One of the other projects that I'm working on basically examines how does political power sharing affect economic activity so in that paper we basically exploit this haphazard overlap of administrative block boundaries and the assembly boundaries. We find that when you increase the number of politicians firm entry as well as as economic activity goes up. The primary mechanism through which it happens is that when you have multiple people working together they tend to exert checks and balances on each other because of which there is an improvement in economic activity.

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