Entry-level deposit fees for candidates entering Indian politics significantly influence outcomes. Changes to these regulations allowed independent candidates into the race, bypassing established parties' participation hurdles. This shift provided a clearer alternative policy option and likely increased voter engagement among those who might otherwise abstain.

* Deposit Rules & Candidate Entry: Fluctuations in required candidate deposits created exogenous variation for independent entry.

This change disproportionately excluded candidates from established parties, creating an ideal natural experiment.

Increased Voter Turnout by 6+ Percentage Points on Independent Candidates' Increase

A notable increase occurred when more candidates were able to meet the lower deposit requirements. This translated into a higher number of voters participating specifically in those affected constituencies.

* Vote Share Impact: The vote share held by independent candidates saw a substantial jump, exceeding 10 percentage points compared to scenarios where their entry was less likely due to high deposits.

This increase suggests that some existing voters switched allegiance from established parties to the unaffiliated challengers.

Electoral Consequences for Incumbents & Coalitions

Independent candidates significantly altered election dynamics. They allowed winning incumbents to secure victories with lower overall vote shares, indicating a redistribution of voter preferences away from major parties. Additionally, their presence reduced the probability of electing an incumbent party candidate by 31 percentage points.

* Overall Representation Effects: The findings suggest that independent candidates effectively influence constituency representation despite lacking party backing or established resources. They appear to capture otherwise disengaged voters and shift electoral outcomes away from governing coalitions, thereby increasing political relevance for ethnic parties.