Parliamentary vs. Presidential Democracy : Does it Make Difference at the Local Level Economic Development? Evidence from India

This paper examines the effect of direct elections in the village councils in Maharashtra, India, on economic development policies. The state government shifted its village councils' election to elect Chairpersons from indirect to direct elections. I exploit the staggered timing of the direct elections using a difference-in-difference approach. I find that during the directly elected Chairperson's regime, spending on historically marginalized social groups decreased. However, if the village councils have directly elected Chairpersons belonging to marginalized groups, the spending on marginalized groups' development increases. I also find that the directly elected Chairpersons prefer more spending on visible goods and ignore spending on more important but less visible goods. Thus, during directly elected Chairpersons' regimes, the ``visible effect" is stronger in redistribution policy