Journal of Financial Intermediation | May 2016
Comparing the incidence of bank loans for Project Finance with regular corporate loans for large investments ("Corporate Debt Finance"), we show that Project Finance is more likely in countries with weaker laws against insider stealing and weaker creditor rights in bankruptcy. Our identification relies on difference-in-difference tests that exploit exogenous country-level changes in legal rules, as well as triple-difference tests that exploit differences across industries in the agency costs of free cash flow.
K. V. Subramanian is a Professor of Finance at the Indian School of Business (ISB). He served as Executive Director at the International Monetary Fund representing India and South Asia and was the 17th Chief Economic Advisor to the Government of India from 2018 to 2021.
Professor Subramanian is a financial economist with significant experience in economic policymaking. His work bridges academic research and public policy, with a focus on applying first-principles economic reasoning to complex, high-stakes problems in emerging economies. His scholarly research in financial economics has appeared in the leading journals, while his policy work has addressed issues of growth, financial stability, and institutional reform across India and South Asia.
As India’s Chief Economic Adviser, Professor Subramanian worked with senior political leadership to help design the macro-financial and public-health architecture of India’s COVID-19 response and to conceptualize Atmanirbhar Bharat (Self-reliant India), contributing to the intellectual foundations of structural reforms. He authored three Economic Surveys of India that introduced new policy frameworks emphasizing ethical wealth creation, supply-side reform, and public-investment-led growth. The thematic Surveys—a departure from past practice—were widely discussed within government, cited by senior political leadership for reshaping the policy discourse, and continue to guide India’s economic approach, illustrating how first-principles economic analysis can inform large-scale reform.
As Executive Director at the International Monetary Fund, Professor Subramanian worked with senior sovereign leadership during major balance-of-payments crises in South Asia and contributed to the design, negotiation, and oversight of stabilization programs emphasizing fiscal credibility, social protection, and climate resilience. Across engagements with multilateral institutions, including the United Nations, Professor Subramanian has advanced data-driven reforms in global economic governance aimed at fairness, transparency, and institutional credibility.
Alongside academic and policy work, Professor Subramanian has written books on economic policy and monetary economics. including India@100, a national bestseller that presents an evidence-based framework for India’s long-term growth trajectory toward its centenary in 2047, and Money: A Zero-Sum Game, which develops a first-principles, balance-sheet-based framework for understanding money creation and monetary transmission by combining theoretical reasoning with empirical analysis. He has also engaged extensively with the public to improve economic literacy by communicating complex ideas in accessible ways while remaining grounded in scholarly rigor—efforts that have led to him being described in the media as “the common man’s economist.”
Professor Subramanian has been conferred the Distinguished Alumnus award by both his alma maters at IIT Kanpur and IIM Calcutta. He holds a PhD from the University of Chicago.
