MAHA REHMAN

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Research linked at https://maharehman.github.io/research/;

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I am a fourth year PhD student in Applied Economics at Cornell University, where I study how firms respond to shocks and disruptions. My research investigates the interplay between economic and institutional constraints—such as infrastructure failures, financial frictions, and weak state capacity—and how these shape firm adaptation, capital flows, and long-run productivity in developing economies.

I work across two related streams: one on shock-induced misallocation, and another on behaviour change during crises and anchor both in policy-relevant design. My recent work demonstrates that when firms anticipate limited government support, they rationally over-adapt, substituting public goods through costly self-provisioning, this ultimately undermines long-term productivity and resilience. I develop a model of adaptive misallocation, where policy uncertainty drives firms to over-invest in short-term defensive strategies, distorting capital allocation, reducing total factor productivity, and locking economies into an inefficient equilibrium.

Methodologically, I draw on experimental and quasi-experimental designs, combined with tools from empirical industrial organisation, to uncover institutional inefficiencies and distortions in firm behaviour. I integrate these insights with economic theory to design scalable, evidence-based reforms that strengthen industrial resilience and improve policy implementation, especially in South Asia.

You can explore my research, policy writing, and teaching here—or connect with me via Twitter, Linkedin, Bluesky or Google Scholar.