Faculty

Overview

Dr. K V Subramanian, currently Chief Economic Advisor to Government of India, is a leading expert on economic policy, banking, and corporate governance. A PhD from Chicago Booth and a top-ranking IIT- IIM alumnus, he authored the path-breaking Economic Survey that commends "Ethical Wealth Creation” for a prosperous India. By integrating India's rich economic and spiritual heritage with modern economic ideas, he advocates ethical wealth creation through a marriage of the invisible hand of the market with the hand of trust.

The 2019 Economic Survey – again authored by Dr Subramanian - laid out the Strategic Blueprint for India to become a $5 trillion economy by generating a “virtuous cycle” where private investment, growth, and consumption feed into each other. In the 2021 Economic Survey, he advocated counter-cyclical fiscal policy using public capital expenditure to trigger the “virtuous cycle” following the Covid crisis. Drawing on the ideas advocated in his three Economic Surveys, India’s economic policy toward a self-reliant India is now characterised by: (i) sharp focus on economic growth to complement efficient welfare by generating the resources to fund the welfare programs; (ii) growth via private sector occupying the commanding heights of the economy; and (iii) “virtuous cycle” of growth via public investment and structural reforms to enhance both aggregate supply and aggregate demand. The slew of reforms implemented by the Government draw on the ideas advocated by Dr. Subramanian.

Subramanian has brought several ideas to implement welfare programs effectively. His push for the behavioural economics of ‘Nudge’ is acknowledged for its potential to bring behavioural change in India. His idea of Thalinomics – what a common person pays for a vegetarian or non-vegetarian thali – has been acclaimed as the Indian Big Mac Index. Combined with the idea of The Bare Necessities index to measure the reach of water, sanitation, a healthy environment to the common citizen, these ideas enable robust measurement of the reach of welfare programs across India’s large population.

Dr Subramanian is on leave from the Indian School of Business, where he is a Professor of Finance. Dr Subramanian has been conferred the Distinguished Alumnus award by his alma mater IIT-Kanpur. Apart from being the youngest Chief Economic Adviser, Subramanian is among the youngest to receive this honour from his alma mater. His research in banking, law and finance, innovation and economic growth, and corporate governance has been published in the world's leading journals.

Education

• Ph D (Financial Economics), Booth School of Business, University of Chicago 2005
• MBA (Top ranker in the Batch, Placed in the Institute’s Roll of Honor) (Finance), Indian Institute of Management (IIM), Calcutta 1999
• B. Tech (Electrical Engineering), Indian Institute of Technology (IIT), Kanpur 1994

Research

Published Papers

Bhowal, Subhendu.,Subramanian, Krishnamurthy.,Tantri, Prasanna. (forthcoming) "Costs Of Job Rotation: Evidence From Mandatory Loan Officer Rotation", Management Science Mukherjee S..,Subramanian, Krishnamurthy.,Prasanna Tantri. (forthcoming) "Borrower Distress And Debt Relief: Evidence From A Natural Experiment in India", Journal of Law and Economics , 61 (4), 607-635 Chopra, Yakshup.,Subramanian, Krishnamurthy.,Tantri, Prasanna. (forthcoming) "Bank Cleanups, Capitalization and Lending: Evidence from India", Review of Financial Studies Subramanian, Krishnamurthy.,William Megginson. (2018) "Employment Protection Laws and Privatization", The Journal of Law and Economics , 61 (1), 97-123 Sarkar A..,Subramanian, Krishnamurthy.,Tantri, Prasanna. (2018) "Effects of CEO Turnover in Banks: Evidence Using Exogenous Turnovers in Indian Banks", Journal of Financial and Quantitative Analysis , 54 (1), 183-214 Mukherjee, Saptarshi.,Subramanian, Krishnamurthy.,Tantri, Prasanna. (2018) "Borrower Distress and Debt Relief: Evidence From a Natural Experiment", Journal of Law and Economics , 61 (4), 607-635 Chakrabarti Rajesh.,Subramanian, Krishnamurthy.,Sesha Meka. (2017) "Localization of FDI flows: Evidence on Infrastructure as a critical determinant", Journal of Law, Finance and Accounting , 2 (1), 205-246 Subramanian, Krishnamurthy.,Frederick Tung. (2016) "Law and Project Finance", Journal of Financial Intermediation Viral Acharya.,Baghai Ramin.,Subramanian, Krishnamurthy. (2014) "Wrongful Discharge Laws and Innovation", The Review of Financial Studies , 27 (1) Subramanian, Krishnamurthy.,Sapra, Haresh.,Subramanian, Ajay. (2014) "Corporate Governance and Innovation : Theory and Evidence", Journal of Financial and Quantitative Analysis , 49 (4), 957 – 1003 Subramanian, Krishnamurthy.,Viral Acharya.,R Baghai-Wadji. (2013) "Labor Laws and Innovation", Journal of Law and Economics , 56 (4), 997-1037 Chava, Sudheer.,Oettl, Alexander.,Subramanian, Ajay.,Subramanian, Krishnamurthy. (2013) "Banking Deregulation and Innovation", Journal of Financial Economics , 109 (3), 759-774 Subramanian, Krishnamurthy. (2011) "Lessons from the financial crisis: failure of markets or failure of regulation?", Macroeconomics and Finance in Emerging Market Economies , 4 (2) Subramanian, Krishnamurthy.,Viral V Acharya. (2009) "Bankruptcy Codes and Innovation", Review of Financial Studies , 22 (12), 4949-4988 Subramanian, Krishnamurthy. (2001) "Term Structure Estimation in Illiquid Markets", The Journal of Fixed Income , 11 (1), 78-91

Books and Monographs

Subramanian, Krishnamurthy.,Acharya, Viral. (2016) "State intervention in banking: the relative health of Indian public sector and private sector banks", Springer Chakrabarti, Rajesh.,Subramanian, Krishnamurthy.,P. K. Yadav.,Y. Yadav. (2012) "Executive Compensation in India, Research Handbook on Executive Pay", Edward Elgar Publications Subramanian, Krishnamurthy.,Acharya, Viral. "Dismissal Laws and Innovation", Book Edited by Asian Development Bank Institute

Working Papers

Subramanian, Krishnamurthy.,Jefferson Abraham. "Employment protection laws and income inequality" Mangipudi, Chandrasekhar.,Subramanian, Krishnamurthy.,Vasu, Rajkamal. "Valuation of Private, Innovative Targets: Evidence from Cisco’s Acquisitions" Subramanian, Krishnamurthy.,Rajesh Chakrabarti. "Systemic Impact of Accounting Scandals on Corporate Governance in Emerging Markets: Evidence from India" Samanvaya Agarwal.,Subramanian, Krishnamurthy.,Prasanna Tantri.,Saipriya Kamath. "Board Conduct in Banks: Evidence from Indian Banks" Subramanian, Krishnamurthy. "Clicks Versus Bricks: A Theory of Differences between Intangible-asset-intensive and Tangible-asset-intensive Firms" Subramanian, Krishnamurthy.,Vaidyanathan. k..,Yadav Ajay. "Deregulation of Entry and Systemic Bank Failures" Subramanian, Krishnamurthy. "Banking Deregulation and Job Creation by Entrepreneurial Firms" Manchiraju, Hariom.,Prabhat, Saumya.,Subramanian, Krishnamurthy.,Sahoo, Satish. "“Do acquirers learn from bad acquisitions”" Subramanian, Krishnamurthy.,Basak, Deepal. "Alliance, Acquisition and Excludability" Subramanian, Krishnamurthy. "The Optimal Locus of Innovation" Alok, Shashwat.,Subramanian, Krishnamurthy. "Property Rights of Employee-Investors and Innovation" Subramanian, Krishnamurthy.,Abhishek Bharadwaj.,Tantri Prasanna. "Relationship Banking and Monetary Policy Transmission: Evidence from India" Subramanian, Krishnamurthy. "Independent Directors as Information Intermediaries in Emerging Markets" Tantri, Prasanna.,Agrawal, Deepak.,Subramanian, Krishnamurthy.,Thirumalai, Ramabhadran. "Do Derivatives matter? Evidence from a policy experiment" Tantri, Prasanna.,Agarwal, Samanvaya.,Kamath, Saipriya.,Subramanian, Krishnamurthy. "Board Conduct in Banks" Subramanian, Krishnamurthy. "The Color of Money: A Startup's Choice among Venture Capitalists" Subramanian, Krishnamurthy.,Bhowal Subhendu.,Tantri Prasanna. "Costs Of Job Rotation: Evidence From Mandatory Loan Officer Rotation"