334 research outputs found
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Estimating the Indian natural interest rate and evaluating policy
No full textWe estimate the unobserved time-varying natural interest rate (NIR) and potential output for the Indian economy using the Kalman Filter. Estimation is a special challenge in an emerging market because of limited length of data series and ongoing structural change. A key result in the literature is the NIR is imprecisely estimated. Structural aspects of the economy used in our estimation turn out, however, to improve the precision of the NIR estimates, although potential output continues to be imprecisely
estimated. Turning points are well captured and estimates obtained for the output gap elasticity of aggregate supply and the interest elasticity of aggregate demand.The estimated NIR is used as an indicator of the monetary policy stance, which is found to be broadly contractionary and procyclical for the period under study
India's sugar trade: A Fresh look
No full textInternational sugar trade is of strategic importance to India as it helps in maintain stability in the domestic sugar prices despite the cyclicality in production. Also, the potential for expanding sugar production in India exists and can be fully exploited if adjustments were introduced to ensure a market driven relationship between sugar and sugarcane prices. Higher domestic sugar prices than international sugar prices suggest the significant policy change are needed in India. India is 4th largest exporter of sugar and has the potential and advantage in export of sugar to sugar deficit countries in the Middle East and East Africa. The study also suggests that there is urgent need to divert the export of sugar from existing countries where, the price realization is less to the countries where the price realization is comparatively more
In the balance The National Food Security Act vis-Ã -vis the WTO agreement on agriculture
No full textThis piece analyzes the implications of the National Food Security Act for India's commitments under the WTO Agreement on Agriculture (AoA) in the context of widespread concern that they might be mutually incompatible. An analysis of support to rice and wheat for the period 1995-2012 suggests that the current scale of operations are at levels implied by the NFSA and that it is possible to leverage existing provisions in the WTO AoA to accommodate these within India’s commitments under the
WTO AoA. While India should negotiate to retain the flexibility afforded in the Agreement and argue on specific provisions, it might not be necessary to seek special protection to enable the NFSA. Regardless of the WTO AoA, India should revamp and rationalize existing arrangements to establish a more nimble, transparent and cost effective food management system. This is desirable for its own sake and would support India's efforts to adhere to the AoA, in letter and in spirit
Risk, returns, anomolies and efficiency of the Indian stock market: A study of cross sectional and calender effects in the Bombay Stock Exchange (1964-95)
No full text
Sustaining growth: Interests versus institutions
No full textNations that were able to sustain high catch-up growth followed flexible and contextual policies. Inclusive institutions make correct policy choices more likely. India started out with highly inclusive political institutions since it adopted democracy with universal suffrage at independence. But extractive economic institutions, inherited from the British, were made more so by economic controls. In addition, a heterogeneous electorate allowed politicians to cultivate vote-banks and populist schemes instead of delivering better public services and governance. India's opening out was adequately nuanced and
flexible but was sometimes used as a substitute for harder domestic reforms. It, however, added to the growing constituencies that benefit from growth, and are pushing for more inclusive economic institutions, that enable productivity, not just redistribution. Broader interest groups create better institutions and incentives. Examples from general governance, the regulation of industry, and agricultural marketing show the process, although messy and prolonged, is in the right directio
Competition, strategic delegation and delay in technology adoption
No full textThis paper examines how strategic managerial delegation affects firms' timing of adoption of a new technology under different modes of product market competition. It demonstrates that delegation has differential impacts on adoption dates under Cournot and Bertrand competition. Delegation with own-performance' based incentive schemes always leads to early adoption in markets with Bertrand competition compared to that under no-delegation, but not necessarily so in markets with Cournot competition. It also shows that the ranking of Cournot and Bertrand equilibria in terms of delay in adoption depends on the type of managerial incentive schemes. Adoption occurs earlier (later) in
markets with Cournot competition than in markets with Bertrand competition, if product differentiation is high (low), regardless of whether there is no-delegation or delegation with 'own-performance' based incentive schemes. In contrast, under strategic delegation with 'relative-performance' based incentive schemes, adoption dates do not differ across markets with different modes of competition