Gabriel Chodorow-Reich, 20 August 2019

India's demonetisation in 2016 reduced the volume of currency in circulation by 75% overnight. This column uses new data sources to quantify impacts on economic activity and credit growth after the unprecedented natural experiment. These effects can teach us about the short-run economic disruption and long-run benefits of demonetisation. 

Chad Bown, 22 July 2019

Manisha Shah, 10 July 2019

A decade ago, India joined a range of countries that mandate free, compulsory education for school-aged children. Passed in August 2009, India’s Right to Education Act was potentially transformative legislation, yet detailed analysis of its impact on the country’s educational outcomes has been slow to emerge. This column uses three national datasets to consider whether the Act is associated with changes in student enrolment, test scores, student-teacher ratios, school infrastructure, and other indicators of educational health and standing.

Prottoy A. Akbar, Victor Couture, Gilles Duranton, Adam Storeygard, 29 June 2019

Urban transportation in developing countries is prioritised for massive investments, yet little is known about the determinants of urban mobility in these countries. This column applies a methodology for measuring the performance of overall motor vehicle transportation in a city to the 154 largest cities in India. It finds that there are substantial differences in mobility speeds across large Indian cities but that the variation is driven primarily by uncongested mobility, not by congestion delays. This implies that typical policy measures attempting to improve urban mobility are missing the mark altogether.

Martin Ravallion, 22 May 2019

Even when the central government is committed to a jobs guarantee, rationing of work opportunities can arise under decentralised implementation in poor places. This column examines India’s efforts to implement such a scheme and finds that there are two main drivers of this rationing: local administrative costs and local corruption. Partial administrative reforms by the centre can have perverse effects. Deeper policy reforms are needed to assure that stipulated rights for poor people are attained in practice.

Santosh Anagol, Vimal Balasubramaniam, Tarun Ramadorai, 17 January 2019

Although economic agents should discern signals from noise when drawing from experience, recent evidence suggests decision-making can be based on both noise and signal components. This column uses a natural experiment of IPO lotteries in India to show that randomised gains cause winning investors to increase applications to future IPOs and substantially increase portfolio trading volume in non-IPO stocks relative to lottery losers. Investors appear to draw inferences about their skill from noise. 

Diane Coyle, 08 August 2018

Josephine Duh, Dean Spears, 16 July 2018

Although average wealth in India has risen in recent years, calorie consumption has paradoxically fallen. Josephine Duh and Dean Spears explain that Indians are eating less despite being richer because disease rates are slowly declining, meaning that nutrition from food is extracted more efficiently.

Victoire Girard, 19 May 2018

Affirmative action policies are widely used to tackle the underrepresentation of certain groups. However, the efficiency of these policies is fiercely debated. This column uses novel data from India to explore how affirmative action quotas affect everyday discrimination. Local political council quotas for marginalised castes are found to reduce caste-based discrimination by around one fifth, but the effect disappears when the quotas are removed.

Guilhem Cassan, Lore Vandewalle, 09 December 2017

Many policies are designed along a particular identity dimension, such as gender or ethnicity. However, such efforts overlook the fact that individuals are associated with several identity dimensions at a time. Using Indian data, this column demonstrates how the intersection of different identity dimensions may lead to unanticipated effects. It shows that political quotas for women in local elections change policies not only in favour of women, but also in favour of low castes.

Zovanga Kone, Maggie Y. Liu, Aaditya Mattoo, Çağlar Özden, Siddharth Sharma, 30 November 2017

Indians, and in particular men seeking education and jobs, display a puzzling reluctance to cross state borders. This column explores the reasons for this surprising migration pattern. A major culprit is India’s system of ‘fragmented entitlements’, whereby welfare benefits are administered at the state level, and state residents get preferential treatment when it comes to higher education and government employment. These administrative rules prevent the more efficient allocation of labour across the country.

Ejaz Ghani, Arti Grover Goswami, Sari Pekkala Kerr, William Kerr, 06 May 2017

Developing countries around the world are implementing structural reforms and pro-competitive policies to promote growth, but the impact of this on gender equity is unclear. This column examines the case of India, one of the world’s fastest growing countries, and finds that gender equality has not improved. Policymakers must do more to eliminate gender discrimination. They have an opportunity to not only improve the allocative efficiency of factors and increase growth, but also create an environment of equal opportunity for all, by targeting domestic market competition. 

Caterina Alacevich, Alessandro Tarozzi, 23 April 2017

Data typically show that people become progressively taller as living standards improve. But despite impressive recent rates of economic growth, India remains one of the worst-performing countries in terms of height. Using data from Indian and English health surveys, this column reveals that, conditional on parents’ height, children of Indian ethnicity are on average taller when born and raised in England rather than in India. The results provide evidence against the importance of genetic factors in explaining the disappointing growth performance of Indian children.

Laurence Ball, Anusha Chari, Prachi Mishra, 14 April 2017

The inflation rate in India rose from 3.7% to 12.1% between 2001 and 2010, raising concerns that it will rise again. This column separately analyses India's core and headline inflation rates and argues that the average level of core inflation has been consistently less than that of headline inflation. Short-term volatility in prices, especially for food, has driven India’s headline inflation. Estimating a Phillips curve suggests a core inflation–output trade-off in India similar to that of advanced economies during the 1970s and 1980s.

Tessa Bold, Tobias Broer, 16 February 2017

The substantial literature examining risk-sharing practices in rural villages in developing countries has typically taken the social institutions in these communities as given. Using data from India, this column challenges this assumption by showing how the costs and benefits of risk-sharing arrangements can shape these social institutions. The results suggest that the size and nature of these risk-sharing groups may evolve over time as their environment changes. Public policy to reduce consumption fluctuations can be counterproductive in the standard model because of a strong crowding-out effect.

Stelios Michalopoulos, Elias Papaioannou, 14 February 2017

Over the past decades, economists working on growth have ‘rediscovered’ the importance of history, leading to the emergence of a vibrant, far-reaching inter-disciplinary stream of work.  This column introduces the second eBook in a new three-part series which examines key themes in this emergent literature and discusses the impact they have on our understanding of the long-run influence of historical events on current economics. This volume focuses on attempts by economists to shed light on the effects of European colonisers on development and culture across Africa and Asia.

Amrita Dhillon, Pramila Krishnan, Manasa Patnam, Carlo Perroni, 11 November 2016

The ‘curse’ of natural resources on economic development has been well documented, but there is no consensus on its underlying causes. Exploiting the formation of new Indian states in 2001, this column shows that the effects of state breakup on local economies differ systematically across natural resource-rich and resource-poor areas, in line with the spatial distribution of natural resources within states. The relationship between resource abundance and economic outcomes flows, at least in part, through a political channel.

Kozo Kiyota, Keita Oikawa, Katsuhiro Yoshioka, 09 October 2016

The international competitiveness of industries has received much scholarly attention, but this research has tended to focus on Europe and North America. This column examines the competitiveness of industries in six Asian countries. Global value chain income is increasing in China, India, and Indonesia. And unlike workers in EU countries, workers in the Asian countries have benefited from this increased competitiveness.

Hylke Vandenbussche, Christian Viegelahn, 02 October 2016

In a world where production is increasingly fragmented across borders, a large number of firms import their raw material inputs from abroad. This column investigates how firms’ input and output choices are affected by import tariffs on inputs that domestic firms use in production. Based on firm-product level data for India, it finds that firms decrease their use of inputs subject to the tariff, relative to other inputs. Firms also decrease their sales of outputs made of these inputs, relative to other outputs.

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