1. a Indira Gandhi Institute of Development Research (IGIDR) , Gen Vaidya Marg, Santosh Nagar, Goregaon (E), Mumbai , 400065 , IndiaI thank Sripad Motiram and S. Chandrasekhar for comments and suggestions. I am grateful to an anonymous referee and an editor of this journal for their insightful comments. An earlier version of this paper was presented at the annual conference of the Research Committee on Development Economics of the German Economic Association at Centre for Development Research,...