Essays on misallocation of production inputs and energy efficiency in Indian industries

This thesis explores the causes and consequences of resource misallocation and energy efficiency in the context of firm heterogeneity in Indian manufacturing. In the first chapter, I quantify misallocation in the Indian cast iron sector. I develop a method to disentangle distortions that capture input misallocation from fundamental demand heterogeneity across firms. In the second chapter I explore why material inputs are misallocated in the cast iron sector, focusing on differences in access to suppliers through the transportation network. In the third chapter I estimate the causal relationship between industrial electricity prices and electricity productivity for a large panel of Indian plants.