New Series / Volume 8, No. 2 /
Old Series/ Volume 24, No. 2/ July, 2008
- Front Page and CONTENTS:
- A Tribute to Professor Arnold Zellner
- Monetary Policy in a Low Inflation Environment: Is There Evidence for Opportunistic Behaviour?
- Causality between Money, Prices and Output in India (1951-2005): A Granger Causality Approach
- Length of Stay - A Data Analytic Approach
- Concentration, Entry Barriers and Profitability in the Indian Industries: An Empirical Analysis
- Factors Affecting Age at Marriage and Age at First Birth in India
- Female Work Participation and Gender Differential in Earning in West Bengal, India
- Are You Satisfied with Your Income? The Economics of Happiness in India
- Structure of the World Wheat Market: Some Implications for Strategic Trade Policy?
- Determinants of Adoption of Virus Management Technology in Papaya Cultivation
- The Most Representative Composite Rank Ordering of Multi-Attribute Objects by the Particle Swarm Optimization Method
Author(s): U. Sankar
Author(s): Naveen Srinivasan, M. Ramachandran and Sudhanshu Kumar
Abstract: The Opportunistic Approach to disinflation is an influential model of optimal monetary policy. This strategy for disinflation suggests that in a low inflation environment policymakers' would give higher weight to inflation stabilization when inflation is strengthening, but higher weight to stabilizing output when the economy is already producing lower inflation via favourable supply shocks. A time-varying parameter (TVP) model is estimated to evaluate its empirical likelihood using US data. Preliminary results support this model during the Greenspan regime.
Author(s): Gaurang Rami
Abstract: The relationship between money, price and output is one of the most debated issues among different schools of thought of economics particularly between the Monetarists and Keynesians. The Monetarists argue that money influences the prices and the output, whereas the Keynesians argue that money does not influence the same. Direction of causality among these three and selection of appropriate lag length are widely debated issues in the literature. This study examines the relationship between money, price and output using pairwise Granger causality test on annual data of the Indian economy covering a period from 1951 to 2005. Lag length is selected using standard criteria - LR, FPE, AIC, SC and HQ through VAR estimation. The results strongly support the monetarists view and partially supports the Keynesian view. However, these relationships are sensitive to the lag length selections.
Author(s): D. V. S. Sastry and R. K. Sinha
Abstract: The length of stay (LOS) at a hospital of a patient contains important information in health statistics irrespective of the fact whether the patient is insured or not. A longer stay may result in resource restrictions with regard to the availability of beds at hospitals. Some of the determinants of length of stay are the demographic characteristics and hospital characteristics. This paper attempts to model the distribution of and try to explain the variation in LOS through age, gender and type of disease for the Indian data. The data set used is the insured data submitted by third party administrators.
Author(s): Anup Kumar Bhandari
Abstract: The conventional Structure-Conduct-Performance (S-C-P) paradigm is examined for the industrial sector in India. Empirical results obtained through panel data econometric analysis suggest that the S-C-P paradigm is tenable for the Indian industries, with concentration and a number of entry-barrier variables like R&D intensity and degree of vertical integration providing significant explanation for variation in rates of return across Indian industries. Advertising intensity, usually used to capture the effects of entry barrier as well as product differentiation on differences in profitability across industries, is also found to be important.
Author(s): S. Chandrasekhar
Abstract: Using NFHS 2005 data, we estimate a cox proportional hazard model to identify the determinants of age at marriage and age at first birth. We find that women who grew up in the countryside or in towns are more likely to marry early and have children earlier. We find a similar result for women living in the slums. Women who have completed primary schooling higher are less likely to marry early compared to those without any education. We also establish the negative relationship between educational attainment and prevalence of underage marriage using Census 2001 data.
Author(s): Indrani Chakraborty and Achin Chakraborty
Abstract: Female work participation in West Bengal is one of the lowest in India, and varies inversely with female literacy and percentage of Muslim population in a block. However, there are areas with high percentage of Muslims where female work participation is high due to predominance of home-based work. Surveys were conducted in two such areas and a probit model was applied to explain work participation. The earning functions estimated for men and women show earning differential to be low, and decomposition shows moderate `discrimination'. Thus, even in areas where women are over-represented in home-based work, men do not seem to enjoy better work opportunities
Author(s): T. Lakshmanasamy
Abstract: One of the most enduring debates in the human well-bing research is the relationship between money and happiness. Empirical research both in psychology and in economics show that the correlation between income and happiness is small and this evidence has been used to mean that money does not matter for life satisfaction. This raises an important question that if money does not buy happiness, why most people are after money and material pursuits? This apparent puzzle - known as Easterlin Paradox - has been explained in terms of relative income comparisons. As individuals care greatly about their relative income to others, a rise in the income levels of all people does not raise the happiness level of the individuals. This paper empirically analyses the relation between income and happiness in India using a primary sample data. The estimated ordered probit results show significant positive effects on happiness of both absolute and relative income. This suggests that money does influence happiness and well-being and the individual's life satisfaction is largely influenced by his relative status. When interactions between absolute income and relative income are allowed the relative income effect vanishes suggesting that proportionate shifts in the relative position does not change happiness level. An increase in absolute income may raise happiness, and beyond a certain threshold level people develop aspirations for status positions and hence more money may not bring more happiness.
Author(s): C. S. C. Sekhar
Abstract: Market structure has a crucial bearing on the price formation mechanism. The present study is an attempt to analyze the market structure of the world wheat market. Market power of the `traditional oligopolists' (US, Canada and Australia) is assessed using the standard oligopoly models. Structural and partially reduced-form models are used in the estimation of market power. The results indicate absence of market power in international markets for any of the major wheat exporters. The absence of market power in international markets has one important implication for trade policy of the exporting countries. In the absence of evidence of any imperfection in international market structure, the present subsidization of wheat production and exports by EU and US cannot be justified on the grounds of strategic trade policy of the new trade theories.
Author(s): Vijay Laxmi Pandey and S.K. Sharma
Abstract: Viral diseases are recognized as a major problem in successful cultivation of fruit crops by imposing cost on producers. Adoption of virus management technology (VMT) in fruit crops cultivation is highly beneficial; still its adoption is not widespread. This paper has made attempt to identify the factors influencing its adoption in papaya cultivation. The study using Tobit model reveals that the important factors which determines the successful adoption included age and experience of the farmers, family size, education and contact with extension personnel.
Author(s): S. K. Mishra
Abstract: Rank-ordering of individuals or objects on multiple criteria has many important practical applications. A reasonably representative composite rank ordering of multi-attribute objects/individuals or multi-dimensional points is often obtained by the Principal Component Analysis, although much inferior but computationally convenient methods also are frequently used. However, such rank ordering - even the one based on the Principal Component Analysis - may not be optimal. This has been demonstrated by several numerical examples. To solve this problem, the Ordinal Principal Component Analysis was suggested some time back. However, this approach cannot deal with various types of alternative schemes of rank ordering, mainly due to its dependence on the method of solution by the constrained integer programming. In this paper we propose an alternative method of solution, namely by the Particle Swarm Optimization. A computer program in FORTRAN to solve the problem has also been provided. The suggested method is notably versatile and can take care of various schemes of rank ordering, norms and types or measures of correlation. The versatility of the method and its capability to obtain the most representative composite rank ordering of multi-attribute objects or multi-dimensional points have been demonstrated by several numerical examples. It has also been found that rank ordering based on maximization of the sum of absolute values of the correlation coefficients of composite rank scores with its constituent variables has robustness, but it may have multiple optimal solutions. Thus, while it solves the one problem, it gives rise to the other problem. The overall ranking of objects by maximin correlation principle performs better if the composite rank scores are obtained by direct optimization with respect to the individual ranking scores.