Hood Economics Professor Publishes Research on How Economic Shock and Disruption Impact Children’s Development

Janak Joshi, Ph.D., associate professor of economics, has published a new study researching how idiosyncratic and covariate shocks affect the cognitive development, physical health, and time use of children.

The paper, titled “How Do Idiosyncratic and Covariate Shocks Affect Human Capital Outcomes for Ethiopian Children,” was published in the June 2025 issue of the Journal of Economic Development.

The article, co-authored with Mohammad Ali of Centenary College of Louisiana, explores how unpredictable economic shocks and community-level disruptions impact education and development outcomes for children in Ethiopia. Research found that incidents such as loss of employment, theft, damage to home, and pests affecting crops had the highest overall negative impact on human capital. Additionally, it was found that monetary shocks, especially in rural areas, affect children more severely than shocks such as natural disasters.

The research contributes to the growing body of global economic literature focused on the long-term effects of instability on youth development in low-income settings.

“This paper highlights the importance of understanding how household and community-level shocks shape children's development,” Joshi said. “Our findings can help policymakers target the most vulnerable groups, especially rural children and younger age cohorts, with interventions that protect learning and well-being during periods of crisis.”

Joshi joined Hood College in 2019 and teaches courses in microeconomics, environmental economics and other applied economics courses at both graduate and undergraduate levels. Dr. Joshi’s research focuses on the economics of environmental sustainability, energy, public health, and sustainable development, examining these issues in both developed and developing country contexts.

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