This paper tries to identify non-linearity in the estimation of Taylor type reaction function for Reserve Bank of India using a threshold estimation technique of Hansen (2000). For the monthly data from March 2001 to October 2009 with Repo rate as the policy rate the estimation significantly...

Since 1992, significant structural changes in the Indian capital market, particularly in the equity market, have enhanced the Indian firms' flexibility in choosing their capital structure optimally. Thus in response to such reform led changes in the relative cost of external finance (debt and...

Motivated by the concern that the recent surge in inflation could retard growth, the paper revisits the nexus between inflation and growth from the perspective of an emerging economy, India. Examining this relationship using a wavelet multi‐resolution analysis with varying time scale...

The study proposes a text-based index for financial constraints using the phrase-matching algorithm. The index captures the severity of financial constraints by calculating the percentage of constraint phrases in the annual report. Using robust validation, the study finds that the text-based...