Assignment 2

Political Economics
Rajnish Chauhan
MA Economics
September 9, 2019

1 Qn. (1)
1.1 dummy variable
The dummy variable ”winner party” has been created using the codes.

1.2 Binscatter plot

1.3 Top 4 parties

The following graphs depict binscatter for highest percentages of constituencies
won by parties(ranked accordingly) in subsequent assembly elections.

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INC, ranked 1 BJP, rank 2

SP, rank 3 AITC, rank 4

1.4 Explanation for the binscatter above

Binscatter groups the x-axis, win margin, in our case into equal sized bins.
Then, it computes mean of y-axis and x-axis, winner paty and win margin,
respectively in our cases. Finally, it plots the scatter points of these data points
(mean).
Thus, the different slopes of binscatter in the above plots represent the dif-
ference in margin of votes of winner candidate than the runner up.

1.5 Variable for Runner up

The variable runner party has been created using the codes.

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1.6 Binscatter for Runner party

1.7 Top 4 Runner parties

The following graphs depict binscatter for highest percentages of constituencies
won by runner up parties(ranked accordingly) in subsequent assembly elections.

INC, ranked 1 BJP, rank 2

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BSP, rank 3 CPM, rank 4

1.8 Explanation for the binscatter above

The different slopes of binscatter depict the margin of victory between winner
and the runner up party in the subsequent assemble elections.