Uppal, Yogesh; Baskaran, Thushyanthan - In: European journal of comparative economics 20 (2023) 2, pp. 161-191
We study how a fragmented political landscape affects fiscal policy and economic growth with a sample of 15 Indian … vote shares in the state legislature. Our results show that political fragmentation distorts fiscal policy: it entails … higher spending, lower revenues, and higher public debt. At the disaggregated level, political fragmentation leads to higher …