In view of rising inequality in fast growing Asian developing countries, it is important to study the relationship between economic growth and income inequity. We develop a simple model to establish that economic growth and inequality can bear a complex and non-linear relationship if policy...

This paper explores macroeconomic policies that can sustain structural change in China and India. A two-sector open-economy model with endogenous productivity growth, demand driven output and income distribution as an important determinant of economic activity is calibrated to a 2000 SAM for...

Market frictions prevent the efficient allocation of factors of production, slow down structural transformation and lead to costs in terms of lower output and aggregate total factor productivity (TFP). We use a theoretical framework developed by Aoki (2012) featuring sector-specific frictions on...

In view of rising inequality in fast growing Asian developing countries, it is important to study the relationship between economic growth and income inequity. We develop a simple model to establish that economic growth and inequality can bear a complex and non-linear relationship if policy...

It has been observed that human capital is an important factor behind economic growth, especially corresponding to the developed countries or, of the Organization of Economic Cooperation and Development (OECD) countries over the past five decades. The theoretical models differ however regarding...

We construct a two-sector (agriculture and modern) overlapping generations growth model calibrated to India to study the effects of sectoral tax rates, sectoral infrastructure investments, and labor market frictions on potential growth in India. Our model is motivated by the idea that because...

The introduction of prenatal sex-detection technologies in India has led to a phenomenal increase in abortion of female fetuses. We investigate their impact on son-biased fertility stopping behavior, parental investments in girls relative to boys, and the relative chances of girls surviving...

Son preference is widespread in a number of developing countries. Anecdotal evidence suggests that women may contribute to the persistence of this phenomenon because they derive substantial long-run non-monetary benefits from giving birth to a son in the form of an improvement in their...