An autonomous research institute under the Ministry of Finance

 

Ongoing projects

Intra-State Distribution of Public Spending on Health in Gujarat: Horizontal and Vertical Equity

  • Start date Nov., 2020
  • Completion date Sept., 2021
  • Sponsor Bill and Melinda Gates Foundation (BMGF) under Approaches to Public Financing of Health in India: The Way
  • Project leader Mita Choudhury
  • Consultants/Other authors Jay Dev Dubey
  • Focus

    This study focuses on the intra-state distribution of public spending on health in the State of Gujarat Much of the evidence on state-level public spending has been confined to state-level aggregates and intra-state distribution has received limited attention. We examine both the horizontal (across districts) and the vertical (across levels of care) equity within the state. The study is a continuation of our ongoing work on intra-state distribution of public spending on health across Indian states.


Taxation of Financial Markets in India (continuation)

  • Start date March, 2020
  • Sponsor Bill and Melinda Gates Foundation (BMGF)
  • Project leader R. Kavita Rao
  • Other faculty Suranjali Tandon
  • Consultants/Other authors Adithya Reddy
  • Focus

    The choice of capital and investment decisions by corporations depend on the different treatment of debt and equity. This project provides a detailed review of tax treatment of instruments and its impact on the economy.


Analysis of Tax Disputes in India (continuation)

  • Start date March, 2020
  • Sponsor Bill and Melinda Gates Foundation (BMGF)
  • Project leader Suranjali Tandon
  • Consultants/Other authors Adithya Reddy
  • Focus

    The project involves a detailed review of the international tax dispute resolution mechanisms in India and an international comparison of best practices to find ways to improve the dispute resolution system in India.


Does Monetary Policy in India Anchor Inflation Expectation?

  • Start date Sept., 2019
  • Completion date Dec., 2021
  • Sponsor Professor P. R. Brahmananda Research Grant, Institute of Social and Economic Change, Bengaluru, 2018-19
  • Project leader Rudrani Bhattacharya
  • Focus

    India entered the inflation targeting monetary policy regime in 2015. Under this rule-based monetary policy regime, change in the policy rate transmits to economic activities and the current inflation rate by altering the inflation expectation of the rational economic agents. This study empirically investigates whether monetary policy can anchor inflation expectation of economic agents in India. In our analysis, the survey based measure of households' inflation expectation published by the Reserve Bank of India captures the inflation expectation of private agents. Using a co-integrated Vector Auto Regression (VAR) model, we find moderate but significant monetary policy transmission in India via the interest rate channel. However, inflation expectation seems to be unanchored by the conduct of monetary policy in the country.


Measuring the Impact of Foreign Monetary Policy Shock on Exchange Rate Volatility in India

  • Start date April, 2020
  • Completion date Dec., 2021
  • Sponsor NIPFP
  • Project leader Rudrani Bhattacharya
  • Consultants/Other authors Shubhankar Mayank (summer intern, April–May, 2020)
  • Focus

    Stability of the exchange rate is very crucial for every country, irrespective of its monetary policy regime. This article presents an overview of the major events (of both international and domestic importance) that affected the rupee-dollar exchange rate after  India's independence, and attempts to determine the impact of foreign monetary policy shocks on the rupee-dollar exchange rate volatility through using GARCH modelling, multivariate regression and boosted regression trees.