Party System Institutionalization and Economic Voting: Evidence from India

It is well established that a country's institutional features can weaken economic voting because voters find it hard to attribute performance to specific parties. We argue that local-level party system institutionalization similarly moderates the link between the economy and vote choice. We focus on one manifestation of party system institutionalization: the strength of party-candidate linkages in elections, operationalized by manually tracing the rerunning patterns of some 80,000 candidates in Indian state elections between 1986 and 2007. Using rerunning patterns to measure party-candidate linkages and rainfall data to measure the state of the economy, we show that voters were more likely to reward incumbent parties for economic performance when parties and candidates were aligned in consecutive elections. We address concerns of endogeneity in rerunning patterns, by showing that the results are robust to alternate measures of local-level party system institutionalization. They are also robust to alternative measures of the state of the economy and to using individual-level survey data.