ORCID
0009-0001-7672-6137
Date of Award
4-30-2024
Degree Name
Doctor of Philosophy (PhD)
Degree Type
Dissertation
Abstract
This thesis comprises two papers, each organized as a separate chapter. The overarching theme is to understand the macroeconomic impact of policies and various frictions present in developing economies. The first chapter analyzes the feasibility of financing Universal Basic Income (UBI) under alternative financing schemes and studies the long-term aggregate and distributional effects of UBI in developing countries. I find that a UBI equal to half the international poverty line cannot be financed through labor income taxes. On the other hand, financing UBI via consumption taxes is feasible but results in lower output, capital, and aggregate labor, as well as an increase in income and wealth inequality. The second chapter (with Paco Buera, Jeremy Majerovitz, Yongseok Shin) studies the role of risk in the presence of financial frictions. We show that risk is an important factor affecting investment decisions and productive entrepreneurs accumulate capital substantially more slowly than in the first-best scenario. This leads to a reduction in aggregate output, capital, productivity, and welfare. Furthermore, we find that credit can play a role in mitigating these frictions if firms have the option to default.
Language
English (en)
Chair and Committee
Yongseok Shin
Recommended Citation
Singh, Kuldeep, "Essays in Macro-Development" (2024). Arts & Sciences Electronic Theses and Dissertations. 3059.
https://openscholarship.wustl.edu/art_sci_etds/3059