Press Release RBI Working Paper Series No. 09 Corporate Pricing Power, Inflation and IIP Growth: An Empirical Investigation @Angshuman Hait, Joice John, Abhiman Das and Anujit Mitra Abstract 1Pricing power measures the extent to which a business can pass on the increases in input costs to consumers through increases in the prices of finished goods. The corporate pricing power in India has declined since 2009-10:Q1. Production has also fallen sharply since 2010-11:Q3.

Press Release RBI Working Paper Series No. 08 Macroprudential Regulation and Bank Performance: Evidence from India @Saibal Ghosh Abstract: 1Employing data on Indian banks for 1992-2012, the article examines the impact of macroprudential measures on bank performance. First, it finds that state-owned banks tend to have lower profitability and soundness than their private counterparts. Next, it tests whether such differentials between state-owned and private banks are dr

Press Release RBI Working Paper Series No. 07 Size of Government Expenditure Multipliers in India: A Structural VAR Analysis @Rajeev Jain and Prabhat Kumar Abstract 1A structural vector autoregression (SVAR) framework has been used to estimate the size of government multiplier at the level of Central and the State governments in India. As a priori expected, capital outlay is found to be more growth inducing than the revenue expenditure. Since the revenue expenditure a

Press Release RBI Working Paper Series No. 06 An Empirical Analysis of the Relationship between WPI and PMI-Manufacturing Price Indices in India@Jeevan Kumar Khundrakpam and Asish Thomas George Abstract *Manufacturing Purchasing Managers Index (PMI) has been increasingly used by various central banks for assessing the direction and strength of economic activity. One of the sub-indices or component level information provided by PMI is that of industrial input and outp

Press Release RBI Working Paper Series No. 05 Persistence of Informal Credit in Rural India: Evidence from ‘All-India Debt and Investment Survey’ and Beyond @Narayan Chandra Pradhan Abstract *Rural credit markets in India is characterised by the coexistence of both formal and informal sources of finance and the market is fragmented. To discuss the informal rural credit issue and to maintain consistency with All India Debt and Investment Survey (AIDIS) data, this pape

Press Release RBI Working Paper Series No. 04 Financial Development and Monetary Policy Transmission Across FinancialMarkets: What Do Daily Data tell for India?1@Partha Ray and Edwin Prabu This paper seeks to address two questions In Indian context. First, what is the nature of integration among different segments of Indian financial markets? Second, what has been the influence of monetary policy on different segments of financial markets? As far as domestic financial

Press Release RBI Working Paper Series No. 03 Estimation of Counterfeit Currency Notes in India – Alternative Methodologies@Sanjoy Bose and Abhiman Das Abstract 1Alternative methodologies on estimation of counterfeit notes in the system, attempted by various countries, mostly pertain to proportions based on reported numbers vis-à-vis total figure on currency in circulation, which are having certain obvious limitations. As against, this paper suggests a probability mod

Press Release RBI Working Paper Series No. 02 Financial Structures and Economic Development in India: An Empirical Evaluation @Satyananda Sahoo "Finance is, as it were, the stomach of the country, from which all the other organs take their tone." - William Ewart Gladstone, 1858 Abstract 1The paper empirically evaluates the role of financial structures in economic development of India. An assessment of various indicators of financial development reveals that both the

Press Release RBI Working Paper Series No. 01 Banking Stability - A Precursor to Financial Stability@Rabi N. Mishra, S. Majumdar and Dimple Bhandia Abstract *This paper focuses on constructing a Banking Stability Map and Indicator and deducing the linkages with the financial markets and macroeconomic variables. In addition, an attempt has been made to establish the direction of causality between stability of the banking sector and overall financial stability. We attem

Press Release RBI Working Paper Series No. 18 Estimating Impacts of Monetary Policy on Aggregate Demand in India@Jeevan Kumar Khundrakpam Abstract 1Using a structural VAR model on quarterly data from 2000Q1 to 2011Q1, this paper estimated the impact of monetary policy on aggregate demand in India. The overall impact on aggregate demand is then decomposed to observe the differential impact among the various components. It finds that an interest rate hike has a signific