THe Blog

September 04, 2017

When economists look to the sky

This Livemint article refers to Resident Senior Fellows, Vivek Dehejia and Praveen Chakravarty's, research on inequality.


"In India, night-lights data has been used to understand the effects of the reorganization of states. In 2000, three new states were created—Uttarakhand, Jharkhand and Chhattisgarh. A 2015 study by Sam Asher of the World Bank and Paul Novosad of Dartmouth College, using census and night-lights data, suggested that there has been marked improvement in economic activity in the newly created states.


A recent research paper by analysts Praveen Chakravarty and Vivek Dehejia of the IDFC Institute in Mumbai used night-lights data to show that both inter-state and intra-state inequality in India has been growing.


The Economic Survey this year also documented the widening regional inequality in India, and attributed it to the differing quality of governance. But Chakravarty and Dehejia argue that much of the differences in economic activity may be driven by network effects."


Read the full article here.



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