Offering a unifying theoretical perspective not readily available in any other text, this innovative guide to econometrics uses simple geometrical arguments to develop students' intuitive understanding of basic and advanced topics, emphasizing throughout the practical applications of modern theory and nonlinear techniques of estimation. One theme of the text is the use of artificial regressions for estimation, reference, and specification testing of nonlinear models, including diagnostic tests for parameter constancy, serial correlation, heteroscedasticity, and other types of mis-specification. Explaining how estimates can be obtained and tests can be carried out, the authors go beyond a mere algebraic description to one that can be easily translated into the commands of a standard econometric software package. Covering an unprecedented range of problems with a consistent emphasis on those that arise in applied work, this accessible and coherent guide to the most vital topics in econometrics today is indispensable for advanced students of econometrics and students of statistics interested in regression and related topics. It will also suit practising econometricians who want to update their skills. Flexibly designed to accommodate a variety of course levels, it offers both complete coverage of the basic material and separate chapters on areas of specialized interest.

Estimation and Inference in Econometrics

The East Asian miracle: Economic growth and public policy: By the World Bank. (New York: Oxford University Press for the World Bank, 1993. 389 pp. $19.95, paper.)

Econometric policy evaluation: A critique

The paper analyzes the link between financial constraints and firm export behavior. Our main finding is that firms enjoying better financial health are more likely to become exporters. The result contrasts with the previous empirical literature which found evidence that export participation improves firm financial health, but not that export starters display any ex-ante financial advantage. On the contrary, we find that financial constraints act as a barrier to export participation. Better access to external financial resources increases the probability to start exporting and also shortens the time before firms decide to serve foreign customers. This finding has important policy implications as it suggests that, in presence of financial markets imperfections, public intervention can be called for to help eficient but financially constrained firms to overcome the sunk entry costs into export markets and expand their activities abroad.

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Financial Constraints and Firm Export Behavior

The relation between multiple directorships, busy directors and firm performance has been researched predominantly in the context of developed economies, notably the US. This paper extends the existing literature on multiple directorships in two ways; first, by providing additional evidence on its effect on firm performance, but with respect to an emerging economy, India, and secondly, by suggesting an alternative measure of directorial “busyness” that is more general in its applicability compared to those that have been applied in the existing literature. Using a sample of 500 large firms from the Indian corporate sector for the year 2002-03, the paper finds multiple directorships by independent directors to correlate positively with firm value thereby supporting the “quality hypothesis” that busy directors are likely to be better directors, a result that is different from the existing evidence on busy directors. Multiple directorships by insider directors are, however, negatively related to firm performance. Estimation of group and non-group companies separately reveals that the quality effect of independent directors persists for the former but disappears for the latter. In general, the results suggest that the relation between “busy” directors and firm performance may depend on the institutional context and on the type of director.

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Multiple Board Appointments and Firm Performance in Emerging Economies: Evidence from India ∗

This book analyses the process of financial liberalization in India in the post-1991 period, focusing on issues pertaining to the regulatory framework and the implications of the reforms in the financial sector for the financing of industry, agriculture and macroeconomic stability This book is intended for students, academics, policy-makers and professionals in banking and finance, all those interested in the economic reforms in India in general and financial sector reforms in particular

The process of financial liberalization in India

We investigate the presence of finance constraints on firms' investment behaviour using Indian manufacturing as a case study. This question becomes particularly interesting in the post-1991 period when substantial market oriented reforms were undertaken. We argue that in the Indian institutional context (especially, the underdeveloped state of bankruptcy laws and restrictive exit procedures) outward orientation rather than size is the relevant criteria for distinguishing firms that may be 'finance-constrained' from those that are not. Using panel data for 718 Indian manufacturing firms for the period 1993-98, we find that exporting firms are less constrained in financial markets than firms which sell primarily to domestic markets.

Outward Orientation, Investment and Finance Constraints: A Study of Indian Firms

Trade credit (accounts receivable and accounts payable) is both an important source and use of funds for manufacturing firms in India. This paper empirically investigates the determinants of trade credit in the Indian context. The empirical evidence presented suggests that strong evidence exists in support of an inventory management motive for the existence of trade credit. Highly profitable firms both give and receive less trade credit. Firms with greater access to bank credit offer less trade credit to their customers. On the other hand, firms with higher bank loans receive more trade credit. Holdings of liquid assets have a positive influence on both accounts receivable and accounts payable.

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The Determinants of Trade Credit: Evidence from Indian Manufacturing Firms

Political Business Cycle Theories argue that opportunistic incumbent political parties attempt to manipulate policy instruments prior to elections in order to increase the probability of being re-elected. In this paper the authors test the empirical implications of these theories for the Indian economy. They find a distinct increase in both the budget deficit and in its monetisation in the years leading to an election. No evidence is found of an electoral cycle in output. While the aggregate price behaviour is found to be unaffected by elections, there is some evidence of a pre-election increase in the price of manufactured products.

Political Budget Cycles in India

(1995) The Determination of Industrial Prices in India: A Post Keynesian Approach Journal of Post Keynesian Economics: Vol 18, No 1, pp 29-52

Rajendra R. Vaidya

Papers

The process of financial liberalization in India

Outward Orientation, Investment and Finance Constraints: A Study of Indian Firms

The Determinants of Trade Credit: Evidence from Indian Manufacturing Firms

Political Budget Cycles in India

The Determination of Industrial Prices in India: A Post Keynesian Approach