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    A Structural Vector Autoregression Model for Monetary Policy Analysis in India
    ( 2014-11-01) Paramanik, Rajendra Narayan ; Kamaiah, Bandi
    A structural vector autoregression (SVAR) model is proposed for analysing the impact of monetary policy stances on real variables in the Indian economy, in the context of its continuous exposure to global factors like oil price shocks and changes in global financial health. The empirical findings based on monthly data relating to the post-liberalisation period (April 1992–December 2012) suggest that contractionary monetary policy has had a considerable adverse impact on output for a year, which appears to be consistent with the prevailing economic outlook. But the same policy measure fuels inflation further for the first eight months in contrast to its expected decline, and the rise in inflation raises the issue of a ‘price puzzle’ in the Indian context. Monetary policy-induced exchange rate appreciation hampers industrial production due to outperformance of high import demand over export competitiveness and causes an increase in the average price level. Global factors like oil price shocks leave detrimental effects on output for a long time horizon of 10–12 months and raise inflation for nearly half a year, whereas an increase in the US federal funds rate results in a temporary decline in output growth of Indian industries.
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    Agglomeration taxes in the indian states due to wider economic benefits: An empirical assessment
    ( 2021-01-01) Bhutani, Saloni ; Mishra, Alok Kumar
    This paper carries out an empirical study to examine the contribution of urban areas in generating tax revenue and growth at 28 Indian state levels. The study is based on the hypothesis that the productivity and agglomeration externality effects present in cities, known as “wider economic benefits”, lead to enhanced tax bases of State Governments. The cross-sectional estimation has confirmed that urbanization and state gross domestic product per capita significantly contribute to the tax bases of State Governments, such as sales tax, stamps, registration duty and motor vehicle tax. These three agglomeration taxes (including goods and services tax) are recommended for sharing with urban local bodies.
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    Agrarian conditions in Telangana and AP: Summary of observations
    ( 2021-06-17) Murthy, R. V.Ramana
    The states of Telangana and Andhra Pradesh, existing as one state Andhra Pradesh during 1956-2014, in spite of its uneven nature, underwent considerable transformation in the six decades. The field work was undertaken in the year 2013, by interviewing 1087 households in seven villages in erstwhile combined Andhra Pradesh. Holdings in agriculture are becoming fragmented from above. Small holdings emerge from below and from above. Some previously landless labourers purchased land, as happened until two decades ago. Holdings from above are getting fragmented through property mutation. Landlessness is generally higher in Coastal Andhra villages, in Telangana and Rayalaseema villages it is less. All villages that have dry land or well irrigation, have a lower share of landless labour and are increasingly dependent on mechanization. Substantial investments in pump sets, tractors, rotovators, sprayers, sprinklers, and borewells are made by almost all classes of farmers.
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    An alternative approach to monetary aggregation in DEA
    ( 2010-08-01) Sahoo, Biresh K. ; Acharya, Debashis
    This paper proposes a set of alternative DEA-based money indices that are proved to be both theoretically and empirically competing monetary aggregates since they perform as good as the Divisia aggregates. Based on all the results concerning causality, forecasting and money demand, we conclude that DEA money aggregates prove to be at least competing alternatives to the Divisia aggregates, and hence, suggest that these new aggregates may be considered along with the existing weighted monetary aggregates like the Divisia ones. Given the inherent benefit of the doubt weighting mechanism underlying the DEA models where the optimal weight assigned by DEA to each monetary asset reflects the ongoing financial innovation and the Reserve Bank of India's policy priority in the distribution of total liquidity, we feel that the DEA money indices can truly capture the liquidity better with ongoing financial innovations in the economy. © 2009 Elsevier B.V. All rights reserved.
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    An empirical analysis of Indian business cycle dynamics
    ( 2017-01-01) Paramanik, Rajendra N. ; Kamaiah, Bandi
    This paper attempts to construct a monthly Composite Index of Leading Indicators (CILI) for the Indian business cycle between April 1994 and December 2015. The cyclical component of the Index of Industrial Production (IIP), generated by Baxter-King band pass filters, is considered as a reference series for Indian business cycle analysis. A set of indicator variables pertaining to different sectors of the economy are chosen on the basis of their strong leading correlation with the reference series. Further, Principal Component Analysis (PCA) technique is applied to assign an appropriate weight to each leading variable, and a CILI is constructed. The performance of the CILI is validated using the turning-point analysis of BryBoschan and Harding-Pagan. The CILI accurately predicts two major troughs in the Indian business cycle, with six and eleven month leads respectively.
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    An empirical definition of money: some factor analytic evidence for India.
    ( 1982-01-01) Kamaiah, B. ; Bhole, L. M.
    Most of the studies on the demand for money in India have not paid due attention to the definition of monetary aggregates to be used therein. It has been the practice in the literature to define money a priori as an aggregate of a set of liquid assets. Researchers have neglected the empirical problems associated with the choice and combination of liquid assets to represent money stock. This paper aims to examine the appropriate money stock to be used as a dependent variable in the context of money demand function in India.-from Authors
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    An empirical study of the mid-day meal programme in Khurda, Orissa
    ( 2008-06-21) Si, Anima Rani ; Sharma, Naresh Kumar
    The mid-day meal programme was initiated as a means of achieving universal primary education of satisfactory quality for all schoolchildren below the age of 14 by increasing enrolment, improving attendance and retention, and simultaneously improving nutritional status. This paper attempts to investigate some of these aspects based on primar y data collec ted from Khurda district of Orissa. Data was collected from schools as well as from a sample of households of schoolchildren. The investigation includes a study of the organisational structure of the programme and also examines the cooked meals and dry ration variants.
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    Antinomies of political society - implications of uncivil development
    ( 2012-01-01) Gudavarthy, Ajay ; Vijay, G.
    The interrelation between the state, civil society and more recently, political society, notwithstanding the differences over what constitutes each of the domains, has singularly emerged as the most significant area of study in comprehending the process of democratization. Post the East European debacle, civil society has for long been projected and trusted as an all-encompassing panacea for most of the problems plaguing the developing societies. It is an imaginary political entity that is carved out to stand for various values that are actively pursued through varied institutions. Civil society has become a kind of 'aspirational shorthand' for the ideas/values of equity, deepening participation, public fairness, individual rights, tolerance, trust, legality, cooperation and informed citizenry (Elliot 2004). These ideals are fostered and protected by voluntary associational activity occurring independently or 'outside' of the state, including in wide-ranging associations or institutions such as clubs, religious bodies, sabhas and samajs, unions, professional associations, community action groups, non-governmental organizations (NGOs), media agencies, research institutes and youth organizations to name a few (ibid.). Civil society, therefore, seemed like a radical alternative in state-regulated societies. However, after the initial euphoria died out, scholars began to raise serious doubts about the scope and nature of the autonomy of civil society and its implications for the process of democratization. For instance, the emphasis on trust (one of the most significant markers of a civil society) in situations of marked inequality not only offers a false promise to the poor but also robs them of their right to struggle and protest (Edwards 2000).
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    Antinomies of political society implications of uncivil development
    ( 2007-12-01) Gudavarthy, Ajay ; Vijay, G.
    This paper is an attempt to delve on the consequences of the antinomies of flattened notions of subaltern politics. On the basis of a field study in a pollution affected village in Andhra Pradesh, it demonstrates how sustained demands for the closure of polluting industries based on collective mobilisation and action are met by repression by an uncivil state in nexus with the mafia and economic elites. This in turn pushes collectives to break up and be replaced by interest-based demands either at the level of smaller groups (formed around available social stratifications) or even the individual. This makes it increasingly difficult over a period of time to sustain collective political action that could demand and gain long-term structural changes.
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    Asymmetric beta in bull and bear market conditions: Evidences from India
    ( 2006-01-01) Bhaduri, Saumitra N. ; Durai, S. Raja Sethu
    The significant role played by beta in various aspects of financial decision-making has forced people from small investors to investment bankers to rethink on beta in the era of globalization with ever changing market conditions. Standing on the edge of a free capital mobile world with technological innovations happening in no time, it is imperative to understand the stability of beta in accordance to these changes and also it would augments an efficient investment decisions with additional information on the beta. This study examined the stability of beta for India from a developing country perspective with a series of possible competing definitions of market conditions and alternative model specification. The results strongly validate Fabozzi and Francis (1977) claim of stable beta for individual stocks in all market conditions.
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    Asymmetric exchange rate effect on money demand under open economy in case of India
    ( 2017-01-01) Haider, Salman ; Ganaie, Aadil Ahmad ; Kamaiah, Bandi
    The study tries to explore the asymmetric relationship between money demand and exchange rate in case of India. The period of study is April 2004 to November 2015. For money demand both narrow (M1) as well as broad (M3) monetary aggregates have been used. In this paper, it is shown that failure to find a significant relationship between the exchange rate and the demand for money could stem from the assumption of linear dynamic adjustment process among the variables. With the help of non-linear ARDL it is found that rupee appreciation and rupee depreciation have an asymmetric effect on the demand for money in India both in the short run and the long run. The results showed that the coefficient of positive partial sum (Ln EX+) which represents rupee appreciation is significant and negative, while for negative partial sum (LnEX-) the coefficient is positive and significant The combined implication of the results is that exchange rate movement effects demand for money through the wealth effect not through the mechanism of change in expectations.
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    Asymmetric fiscal multipliers in India–Evidence from a non-linear cointegration
    ( 2021-01-01) Bhat, Javed Ahmad ; Sharma, Naresh Kumar
    We attempted to scrutinize the efficacy of fiscal policy tools on key macroeconomic variables in case of India. Applying an asymmetric cointegration framework, the impact of public spending hike on output growth is significantly favourable and that of the decrease in it is insignificant. Similarly, effect of tax hikes is more pronouncing than tax cuts. Comparatively, results report more effectiveness of spending hikes than the tax cuts to avoid an economic downturn and tax hikes than spending cuts to cool down a heating economy. Private consumption mimics response of output growth, whereas response of private investment follows the substitutability hypothesis.
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    Asymmetric price adjustment - evidence for India
    ( 2015-11-01) Rather, Sartaj Rasool ; Durai, S. Raja Sethu ; Ramachandran, M.
    This study examines whether there exists asymmetry in the price adjustment of firms, as anticipated by Ball and Mankiw (1994), in an error correction framework. We used monthly time series data on prices of 419 commodities, which constitute 97% of commodity price basket used in the construction of wholesale price index in India. The empirical evidence indicates that the price adjustment of most of the firms exhibits strong asymmetry; shocks that increase firms' desired prices cause quicker and larger rise in prices whereas shocks that lower desired prices cause smaller or no fall in prices. Also, we identify a threshold value for each firm below which it does not allow its relative price to fall. These evidences imply that larger relative price variability can trigger inflation even in the absence of demand shocks. Moreover, the distribution of output is likely to be negatively skewed even if the demand shocks are symmetric.
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    Benchmarking energy use of iron and steel industry: a data envelopment analysis
    ( 2019-04-25) Haider, Salman ; Mishra, Prajna Paramita
    Purpose: The purpose of this paper is to benchmark the energy use of Indian iron and steel industry. For this purpose, the authors have estimated a production frontier to know the best performing states. Further, the energy-saving targets are estimated to lie below the benchmark level for those states. Panel data for this purpose are extracted from the Annual Survey of Industry (an official database from the government of India) for 19 major steel-producing states over the period from 2004–2005 to 2013–2014. Design/methodology/approach: The authors employed a radial and non-radial (slack-based measure) variant of the data envelopment analysis (DEA) to estimate the production frontier. Particularly, slack-based measures (SBMs) developed by Tone (2001) are used to get a more comprehensive measure of energy efficiency along with technical efficiency. Variable returns to scale technology is specified to accommodate market imperfection and heterogeneity across states. Four inputs (capital, labour, energy and material) and a single output are conceptualised for the production process to accommodate input substitution. The relative position of each state in terms of the level of energy efficiency is then identified. Findings: The authors started by examining energy-output ratio. The average level of energy intensity shows declining trends over the period of time. States like Bihar, Jharkhand, Gujarat and Uttarakhand remain stagnant in the energy intensity level. SBM of energy efficiency shows an overall average energy saving potential of 8 per cent without reducing average output level. Considerable heterogeneity exists among states in terms of the energy efficiency scores. Further, the authors calculated scale efficiency (SE) which shows the overall average level of SE is 0.91; hence, the scale of operation is not optimal and needs to adjusted to enhance energy efficiency. Originality/value: The authors demonstrate the empirical application of DEA with SBM to energy use performance. This is the first study that benchmarks Indian states in terms of the consumption of energy input to produce iron and steel by applying DEA.
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    Benchmarking the Performance of Public Hospitals in Tamil Nadu: An Application of Data Envelopment Analysis
    ( 2007-01-01) Dash, Umakant ; Vaishnavi, S. D. ; Muraleedharan, V. R. ; Acharya, Debashish
    Data envelopment analysis (DEA) was used to investigate the efficiency of a set of district hospitals in the state of Tamil Nadu. These facilities naturally provide primary and secondary care, but are also expected to function as health centres, addressing mostly preventive medicine, hygiene and other public health issues. This study aimed to obtain insight on their technical efficiency in light of their particular role. We have considered all the 29 district hospitals in the state. Variables chosen to characterise production were numbers of assistant surgeons, civil surgeons, staff nurses and beds as inputs; and in-patient and outpatient visits, surgeries both major and minor, and deliveries performed as outputs. The DEA model was input-oriented, allowed for variable returns to scale, and units were ranked according to a benchmarking approach. Results indicate that eight of the 29 hospitals (27 per cent) are efficient, the DEA score being 1.0, while the remaining 21 hospitals (72 per cent) are relatively inefficient, needing to benchmark their performance with that of their peer group. © 2007, Sage Publications India Pvt. Ltd. All rights reserved.
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    Campaign against bt cotton
    ( 2009-08-15) Murthy, R. V.Ramana
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    Can a Disinflationary Policy Have a Differential Impact on Sectoral Output? A Look at Sacrifice Ratios in OECD and Non-OECD Countries
    ( 2018-05-01) Sethi, Dinabandhu ; Wong, Wing Keung ; Acharya, Debashis
    This article examines the sectoral impact of disinflationary monetary policy by calculating the sacrifice ratios for several Organisation for Economic Co-operation and Development (OECD) and non-OECD countries. Sacrifice ratios calculated through the episode method reveal that disinflationary monetary policy has a differential impact across three sectors in both OECD and non-OECD countries. Of the three sectors, the industry and service sectors show significant output loss due to a tight monetary policy in OECD and non-OECD countries. But the agricultural sector shows a differential impact of disinflation policy: It shows a negative sacrifice ratio in OECD countries indicating that output growth is insignificantly affected by a tight monetary policy while non-OECD countries yield positive sacrifice ratios, suggesting that the output loss is significant. Further, it is observed that sacrifice ratios calculated from aggregate data are different from ratios calculated from sectoral data. JEL Classification: E52, E58, C14, O50.
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    Cities and agglomeration externalities: Lessons for urban public policy in Asian countries
    ( 2014-02-01) Mohanty, Prasanna K. ; Mishra, Alok K.
    Cities are home to agglomeration externalities, which, interacting with knowledge externalities, drive economic growth during structural transformation of nations. Yet policy-makers in several developing countries in the past seemed to have had an anti-urban bias. This is primarily due to the lack of appreciation of externalities of cities and their role in facilitating economic growth and generating resources for economic development, including urban and rural development. Recognizing the critical need of Asian countries to harness the power of agglomeration externalities in cities for growth, this article examines the nature and sources of agglomeration externalities and derives lessons for the formulation of urban public policy in the urbanizing countries of Asia, including India.