Kar, S., Pritchett, L., Roy, S., & Sen, K. (2022). Doing business in a deals world: The doubly false premise of rules reform. Journal of Economic Policy Reform, 25(4), 361-387. https://doi.org/10.1080/17487870.2022.2125391
Endogenous Human Capital Growth and Structural Transformation (JMP)
Short Abstract: This paper investigates why China experienced a prolonged manufacturing boom while India did not. Using an endogenous growth model, we highlight human capital as a key driver of structural transformation. China’s trade openness and skilled labor growth supported sustained industrialization, whereas India’s limited skill base and growth led to premature deindustrialization. The model explains how differences in labor composition shape sectoral transitions across agriculture, manufacturing, and services in developing economies.
Optimal Taxation with Debt-financed Capital in an Impoverished Economy (with Anand Shankar & Rajesh Singh)
Short Abstract: This paper studies optimal taxation in a small open economy with limited capital. Under proportional taxes, borrowing upfront and keeping taxes stable minimizes welfare losses. Lump sum taxes yield first-best outcomes. With general utility, high consumption elasticity economies favor early austerity, while low elasticity economies prefer smoother policies. Extending debt maturity boosts welfare, especially in inelastic economies reliant on external borrowing for development.
Portfolio Choice and Gold Consumption: A Study of India’s Gold Demand (with Anand Shankar)
Does Corruption Facilitate Business? Evidence from India (with Sabyasachi Kar)
Evolving Agricultural Market Integration in Post-Liberalization India