Essays in Macroeconomics and Development.
Degree: PhD, Economics, 2020, Boston College
This dissertation consists of three chapters. The
first chapter, "The Supply-Side Effects of India's Demonetization",
investigates the supply-side effects of a unique monetary shock –
the 2016 Indian demonetization – that made 86% of currency in
circulation illegal overnight. Exploiting cross-sectional variation
in firm and industry characteristics that correlate with cash usage
and exposure to the informal sector, I find that firms that use
cash more and obtain larger shares of labor or material inputs from
the informal sector, experienced declines in their labor and
material shares after demonetization. I also show that casual
laborers were more likely to report being unemployed in the months
following demonetization. These findings document a supply channel
for demonetization and also show that cash plays an essential role
in India's informal sector. Crucially, given that India's formal
sector is highly dependent on the informal sector for labor and
materials, any shock to the supply of cash is likely to have
affected the economy as a whole. In the second chapter, "Directed
Lending and Misallocation: Evidence from India", joint with Deeksha
Kale, we leverage a natural experiment to study whether targeted
credit policy can help reduce misallocation. In 2006, the
Government of India modified the definition of small firms thereby
expanding eligibility to a directed credit program. We show that
the credit policy changed eligible firms' input wedges and thereby
reduced misallocation. For firms with initially higher MRPK, the
policy resulted in relatively larger increases in physical capital
and decreased the MRPK. This policy moderately reduced
within-industry dispersion of MRPK and increased aggregate
productivity. Finally, in the third chapter, "Victims of
Consequence: Evidence on Child Outcomes using Microdata from a
Civil War", joint with Sajala Pandey, we study the short-run
impacts of violent events on child time allocation, curative
health-care, and education. Exploiting spatial and temporal
variation in exposure to local-level armed conflict, we find that
an increase in violent events: (i) leads to an increase in
contemporaneous hours worked by children, with the effect being
substantial for agricultural work; (ii) decreases the likelihood of
parents taking their children to visit a health-care facility to
seek curative care; and (iii) results in a reduced likelihood of
attending school, along with a decline in years of education.
Overall, the results indicate that the war affected schooling and
time allocation of boys whereas girls were less likely to get
Advisors/Committee Members: Ryan Chahrour (Thesis advisor), Fabio Schiantarelli (Thesis advisor).
Subjects/Keywords: Demonetization; Development; Firms; Macroeconomics; Misallocation
to Zotero / EndNote / Reference
APA (6th Edition):
Subramaniam, G. (2020). Essays in Macroeconomics and Development. (Doctoral Dissertation). Boston College. Retrieved from http://dlib.bc.edu/islandora/object/bc-ir:108829
Chicago Manual of Style (16th Edition):
Subramaniam, Giridaran. “Essays in Macroeconomics and Development.” 2020. Doctoral Dissertation, Boston College. Accessed February 27, 2021.
MLA Handbook (7th Edition):
Subramaniam, Giridaran. “Essays in Macroeconomics and Development.” 2020. Web. 27 Feb 2021.
Subramaniam G. Essays in Macroeconomics and Development. [Internet] [Doctoral dissertation]. Boston College; 2020. [cited 2021 Feb 27].
Available from: http://dlib.bc.edu/islandora/object/bc-ir:108829.
Council of Science Editors:
Subramaniam G. Essays in Macroeconomics and Development. [Doctoral Dissertation]. Boston College; 2020. Available from: http://dlib.bc.edu/islandora/object/bc-ir:108829