Holidays and economic growth: Evidence from a panel of Indian states

The number of holidays differs significantly across Indian states. Moreover, some of the governing political parties have been accused of using holidays as a tool either to mollify disgruntled workers or to woo voters before the state elections. In this context, this paper explores the relationship between the number of holidays and economic growth across 24 Indian states, spanning the period 2008–2016, by employing a panel model analysis. The paper presents evidence suggesting that holidays seem to affect growth negatively in the rich states but are inconsequential for the growth performance of the poor states.     

The role of biomass energy consumption and economic complexity on environmental sustainability in G7 economies

This paper empirically examines the effect of biomass energy consumption and economic complexity on environmental sustainability in G7 economies. The current study attempts to report a comprehensive analysis of biomass energy and economic complexity on ecological and carbon footprints and carbon emissions. We employ data from 1990 to 2019 and adopt robust panel econometric techniques that account for the analysis's cross-sectional dependence. We conduct cointegration analysis, pooled ordinary least squares (OLS), system generalized method of moments (GMM) and conditional quantile model for our empirical analysis. The empirical findings show that both biomass energy consumption and economic complexity are detrimental to the ecological footprint and carbon footprint. Additionally, we find that globalization positively affects the environment, while we find some evidence that bureaucratic quality improves environmental quality. Finally, in line with other research, we find that economic growth has detrimental effects on the environment. Our results suggest that policymakers should be more cautious in promoting biomass as a clean energy source and that the G7 economies should take advantage of their leading position in innovation to invest more in sustainable practices and investment.     

Local Banking Market Frictions and Youth Crime: Evidence from Bank Failures

Journal of Financial Services Research - This paper examines the impact of local banking market frictions measured by bank failures on youth crime. Using a difference-in-differences framework, we...     

Political connections and bank behaviour

Using disaggregated data on Indian state-owned banks, we study how political connections influence their lending behaviour. The findings indicate an overall credit expansion of 10% during election years for banks with political connections, driven by increased lending to agriculture and Small and Medium Enterprises. Further disaggregation reveals cycles in such lending driven by electoral considerations, primarily for banks with political connections. In turn, there is a gradual weakening in the asset quality of these banks. The net effect is manifest in lower productivity. The key policy implication is that electoral manipulation exerts significant economic costs.