334 research outputs found
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Inequality, neighbourhoods and variation in prices
No full textIn this study we examine the link between of income distribution and wholesale price of wheat using panel data. We have weekly time series data on prices for wheat for 3 districts in Uttar-Pradesh in India obtained from the Department of Economics and Statistics of the Ministry of Agriculture, Government of India (DES-MOA, GOI) for the period 2006-2011. Gini coefficient is calculated on the basis of consumption expenditure collected by National Sample Survey Organisation of India. We find that there
is inverted-U shape relation between inequality and level of price for wheat: if we compare a cross-section of societies over the period of time, then price of food grain initially increases with increase in inequality but after a point it starts declining
Reserve currencies: Can multiplicity work?
No full textThe paper analyzes the potential rise of new reserve currencies in the context of the economic and political determinants of an international currency. Two models analyze the role of soft political power, switching costs to a new currency and transaction costs in the rise of a new currency. Quantitative indices are developed to measure these factors, which are then empirically tested and found to be statistically significant in determining the rise of international currency. The study further explores the greater use of Renminbi in East Asia and the trade integration in this region
The Causal impact of algorithmic trading on market quality
No full textThe causal impact of algorithmic trading on market quality has been difficult to establish due to endogeneity bias. We address this problem by using the introduction of co-location, an exogenous event after which algorithmic trading is known to increase. Matching procedures are used to identify a matched set of firms and set of dates that are used in a difference-in-difference regression to estimate causal impact. We find that securities with higher algorithmic trading have lower liquidity costs, order imbalance, and order volatility. There is new evidence that higher algorithmic trading leads to lower
intraday liquidity risk and a lower incidence of extreme intraday price movements
The Political economy of MGNREGS spending in Andhra Pradesh
No full textAre ostensibly demand-driven public programs less susceptible to political clientelism even when private goods are allocated? We investigate this conjecture using expenditure data at the local level from India's National Rural Employment Guarantee Scheme. By focusing on one state where accountability and transparency mechanisms have been employed and implementation efforts have been applauded, we do not find evidence of blatant vote buying before the 2009 election but do find that patronage played a small part in fund distribution after the 2009 election. Indeed most variation in
expenditures is explained by the observed needs of potential beneficiaries, as the scheme intended
MGNREGA works and their impacts: A Rapid assessment in Maharashtra
No full textThis paper presents the results of a survey of over 4100 works created under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) and over 4800 randomly selected users across 100 villages in 20 districts in Maharashtra. It has two goals: the first was to verify the existence of the assets and the second was to elicit user perceptions of the problems and benefits they associate with the work. The survey indicates that 87% of the works exist and function and over 75% of them are directly
or indirectly related to agriculture. A bulk of the rest constitutes rural roads that connect habitations to farms and provides access to agricultural markets. The study also finds that 92% of the randomly selected users paper that their main occupation is farming; half of them are small and marginal farmers, owning less than 1.6 hectares of land. An overwhelming 90% of respondents considered the works very useful or somewhat useful; only 8% felt the works were useless. There is some evidence that
where people feel that have played a part in deciding the type of work, these are more likely to be ranked as useful and well-maintained. Likewise, works on private lands tend to score better in terms of perceived usefulness and in terms of present condition. Overall it appears that the works are supportive of agriculture and of small and marginal farmers. There is however scope to improve the design of assets and to have a more inclusive process of work selection
Unemployment burden and its distribution: Theory and evidence from India
No full textWe develop a measure of unemployment that takes into account both the level and intensity of unemployment and that satisfies several desirable properties, including distribution sensitivity (dealing with differences among the unemployed). It can also be decomposed into mean and distributional components and contributions to unemployment by various subgroups of the population. We then apply this measure to understand unemployment in India using data from National Sample Surveys on
employment and unemployment during the period 1993-2012. We show that unemployment has generally fallen in this period, but this finding has to be seen in light of considerable underemployment. Moreover, unemployment is driven to a greater extent by higher educated groups; the unemployment among these groups is also fairly substantial. The distribution of unemployment has also worsened. We explain these findings and suggest some policies
On the spatial concentration of employment in India
No full textThis paper seeks to understand what kind of economic activities are concentrated in which regions of India. Spatial concentration of jobs is measured by calculating the location quotient using information on the industry of work of the individuals in a region. The paper uses data from NSSO 2011-12 survey of employment and unemployment
Psychology, cyclicality or social programs: Rural wage and inflation dynamics in India
No full textThe paper analyzes causes of movements in Indian wages for rural unskilled male laborers, and assesses their impact on inflation. Theoretical priors derived from an analytical framework based on the concepts of fair wages, salience and over-reaction are tested using a State level rural wage data panel. The model predicts that a rise in food price inflation, non-traded wages and productivity, reduction in net labor supply, rise in labor demand and employment in the traded goods sector would raise wages in
the traded goods sector, while changes in the exchange rate could have ambiguous effects. In dynamic panel regressions, food price inflation and the fiscal deficit share were two variables that were consistently high and significant, with the effect of the first three times larger. The spread of MGNREGS did not raise wages, but the sharp jump associated with wage indexation, itself a response to high food prices, did. The set of government programs impacted wages, more than a single one. Cyclical or policy
variables had a minor impact. The results are in line with the predictions of the model and support psychological and social as compared to cyclical factors. The impact of wages on rural food prices was not as large, indicating some rise in productivity. Since multiple supply shocks impacted food prices, and special circumstances drove the unusual rise in real wages, large nominal wage growth may not persist if food inflation and the fiscal deficit moderate
Small enterprises in Indian manufacturing and inclusive growth: Search for compensatory mechanisms
No full textEmployment growth in household and small enterprises in Indian manufacturing in 2000s is analysed in the context of inclusive growth. Analysis is based on the results of establishment surveys of unorganized manufacturing and registered manufacturing for the years 2000-01, 2005-06 and 2010-11.The employment share of household enterprises was found to have declined across industries and across states of India with the exception of Gujarat and Delhi. Employment growth in small enterprises defined
as those with less than 50 workers in the non-household segment was observed to be positive but insufficient to compensate for the decline of household employment. The employment share of small enterprises was not found to have improved during the years 2001 to 2011 in the States with higher per capita NSDP. This calls for policy initiatives that encourage new entry and growth of employment in existing small enterprises
The way forward for India's National Pension System
No full textThis paper examines the existing implementation of the National Pension Scheme against the goals with which it was created. It finds that there are certain critical areas in which the NPS has deviated. These include multiplicity of schemes, lack of investment choice, low transparency of the system, and a lack of focus on keeping asset management fees low. These gaps are well understood and can be corrected with regulatory interventions. There remain other policy issues that need to be addressed. These include well designed payout policies, and occupational pension systems that will leverage the institutional development of the NPS to include the informal
workforce