This paper estimates the effect of a candidate’s incumbency status
on his or her chances of winning using a large dataset on state legislative
elections in India during 1975-2003. I use an innovative research
design, called Regression Discontinuity Design (RDD), that provides
unbiased estimate of the effect due to incumbency by comparing the
candidates in closely fought elections, and find that incumbency has
a significant negative effect on the fortunes of incumbent candidates in India and the incumbency effect has decreased further in the last
decade. Also, the variation in the incumbency effects across Indian
states depends on the differences in levels of public good provision
such as the health facilities, rates of employment and poverty, and
state per capita income