economy. We consider India’s demonetization policy which, by limiting the availability of cash, led to a large increase in the … demonetization shock across local areas, we find that greater use of electronic payments leads to firms reporting more sales to the tax … demonetization. …

consider India's demonetization policy which, by limiting cash availability, led to a large increase in the use of electronic … forms of payments. Using administrative data on firms' tax returns and variation in the strength of the demonetization shock … authorities. Our estimates imply that the shift to electronic payments increased reported sales by 5% despite demonetization …