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In recent years, a number of developing countries have undergone extensive reforms in the financial sector. The effects of this underlying financial innovation process on the stability of demand financial sector. The effects of this underlying financial innovation process on the stability of demand for money have seldom been studied in the context of developing countries. Nevertheless, these changes in the financial sector highlight the transition from one regime to the other. This need necessarily follows that such a process has to be accounted for in the long-run demand for money estimation. Here, we use a three-step testing procedure to study the implication of the reform process on the stability of demand for money. To account for the abovementioned changes, we specify the demand for money in an open economy framework using data from India. An estimation procedure accounting for these changes in the specification of demand for money suggests that financial deregulation and innovation did affect the empirical stability of demand for money in India. JEL classification: E41 Keywords: Stability; Money; Developing economy

We analyze the role of public expenditures on secondary and higher education for achieving inclusive growth, using a computable general equilibrium model of India. Our policy simulations show that increasing public education expenditure leads to higher growth and lower inequality. Expenditure on secondary education leads to better outcomes compared to equivalent expenditure on higher education. Exogenous technological progress enhances the positive effects of public education spending. The findings of the paper call for policy initiatives to boost spending on secondary education, as well as technological progress, for achieving inclusive growth in India. [ABSTRACT FROM AUTHOR]

In order to significantly reduce global carbon emissions, it is necessary also to control CO2 emissions in fast growing emerging economies such as India. The question is how the Indian economy would be affected by including the country in an international climate regime. In this analysis we soft-link a global and a single-country computable general equilibrium model in order to be able to capture distributional issues as well as international repercussions. We analyze different options of transferring revenues from domestic carbon taxes and international transfers to different household types and the effects of different assumptions on exchange rates on transfer payments. Our results show (i) that welfare effects can differ significantly for different household types, which is generally ignored in analyses with global models, and (ii) that these effects are significantly influenced by international price repercussions and by accounting for transfers from international permit sales which is generally ignored in single-country models. [ABSTRACT FROM AUTHOR]

The U-shaped relationship between economic development and female work force participation rate may be explained at the household level in terms of the interaction between social factors and the income of the household. The social attitude and income are likely to be influenced by education, which augments the income on the one hand and on the other shifts women from stigmatised jobs to non-stigmatised jobs and also reduces the adverse social response towards women participation in the labour market. The shift across sectors of employment is also motivated by education, implying positive associations between education and high productivity jobs. Copyright © 2014 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]