Minority Enterprise under Majority Rule: Optimal Bias in the Allocation of Business Financing under BJP Government

• In Event: Partisan Governments and Finance

Brief Overview

The close election of a BJP legislator causes a drop in government financing of Muslim businesses. But using a unique census of millions of firms, we show (counterintuitively) that these effects are driven by the BJP's efforts to win Muslim votes.

Authors

• Gautam Nair, Harvard Kennedy School

• German Feierherd, Universidad de San Andres