Indira Gandhi Institute of Development Research

About: Indira Gandhi Institute of Development Research is a facility organization based out in Mumbai, Maharashtra, India. It is known for research contribution in the topics: Monetary policy & Inflation. The organization has 307 authors who have published 1021 publications receiving 18848 citations.

The Impact of Ideology on Disinvestment Decisions of a Coalition: A Game Theoretic Analysis

Abstract: We build a two-stage game theoretic model to capture the effect of ideologies of parties in a coalition on disinvestment decisions We focus on three specific aspects of ideology—ideology score of

Separating Shocks from Cyclicality in Indian Aggregate Supply

Abstract: Simultaneity issues as well as incorrect measurement of shocks and of the cyclical variable bias estimated slopes of the Indian aggregate supply curve (AS). Our initial Generalized Method of Moments estimation, based on a filtered output gap variable and including supply shocks, also gives an unrealistic downward sloping AS. But we find measures of asymmetries in price changes outperform traditional measures of supply shocks. Estimation using marginal costs as a proxy for the output gap gives a positive coefficient that reduces in size on including our comprehensive supply shock variable, implying the correct AS has a small positive slope, but is subject to multiple shifts. The semi-structural specification, closer to firms' actual decisions, gives estimates of structural parameters such as degree of price stickiness and extent of forward-looking price adjustment. The results more correctly separate shocks from cyclicality, help to interpret India's growth and inflation experience, and have implications for policy.

News, noise, and Indian business cycle

Abstract: New Keynesian Dynamic Stochastic General Equilibrium (DSGE) models with various specifications of technology, markup and interest rate shocks are estimated with Indian data using Kalman filter based pure and Bayesian likelihood estimation. Preference and interest rate shocks are found to be important for output determination whereas markup and interest rate shocks are important for inflation. News, such as contained in stock market variables and arising from anticipated interest rates, affects growth of gross domestic product. Interest rate shock is anticipated at horizon of one quarter and out of total variance explained by interest rate shock, one third is due to the anticipated shock. Anticipated interest rate shock diminishes the role of preference shock in output determination. Markup shock has a large share, very low persistence but is correlated. There is evidence that permanent component of technology is not well anticipated, and once we incorporate that technology shocks become more important for determination of output although it still remains much below US levels. Implications for policy are drawn out.

Choosing Between Global Environmental Strategies Vis-à-Vis Local Mitigation Strategies: Application of Multi-criteria Analysis

Abstract: Policy makers and city administrators are in a dilemma on to which strategies they should embark while planning their transportation systems. This chapter presents a case study-based approach to compare the advantages, by means of marginal abatement cost of carbon by choosing global emission mitigation strategies compared to the local emission mitigation strategies in transportation planning. It draws comparison among three strategies such as CO2 control strategies, total suspended particle control strategies, and hydrocarbon control strategies. By employing optimization model for the selection of vehicular mix with due consideration to the cleaner alternatives, for the future travel needs, this chapter presents the marginal abatement costs for various strategies that demonstrates the potential to support the cities financially.