Dev / Babu Development in India

Micro and Macro Perspectives
1. Auflage 2015
ISBN: 978-81-322-2541-6
Verlag: Springer India
Format: PDF
Kopierschutz: 1 - PDF Watermark

E-Book, Englisch, 376 Seiten

Reihe: India Studies in Business and Economics

This book examines various facets of the development process such as aid, poverty, caste networks, corruption, and judicial activism. It explores the efficiency of and distributional issues related to agriculture, and the roles of macro models and financial markets, with a special emphasis on bubbles, liquidity traps and experimental markets. The importance of finite changes in trade and development, as well as that of information technology and issues related to energy and ecosystems, including sustainability and vulnerability, are analyzed.The book presents papers that were commissioned for the Silver Jubilee celebrations at the Indira Gandhi Institute of Development Research (IGIDR). The individual contributions address related development problems, ensuring a homogeneous reading experience and providing a thorough synthesis and understanding of the authors' research areas. The reader will be introduced to various aspects of development thought by leading and contemporary researchers. As such, the book represents an important addition to the literature on economic thought by leading scholars, and will be of great value to graduate students and researchers in the fields of development studies, political economy and economics in general.

S. Mahendra Dev is Director, Indira Gandhi Institute of Development Research (IGIDR), Mumbai, India. After obtaining his Ph.D. from Delhi School of Economics (New Delhi, India), he did his post-doctoral research at Yale University, USA. He is also the Chair of the Committee on Terms of Trade on Agriculture constituted by the Indian Ministry of Agriculture. He previously chaired the Commission for Agricultural Costs and Prices at the Ministry of Agriculture, and served as Director of the Centre for Economic and Social Studies (CESS) in Hyderabad. His research interests include Development economics, Indian economy, Macro policies, Inclusive growth, Agricultural policies, Poverty and inequality and Rural development.P G Babu is Professor at IGIDR, Mumbai coordinator of the Erasmus Mundus European Graduate Programs in Law and Economics, and Managing Editor of Journal of Quantitative Economics, official journal of The Indian Econometric Society (TIES) published by Springer. He has held visiting professorships at the Universities of Aix-Marseille, Bayreuth (as Adam Smith Chair Guest Professor of Philosophy and Economics), Hamburg, IIM Ahmedabad, Madras School of Economics, Erasmus University Rotterdam and Warsaw School of Economics. He obtained his Ph.D. from Indian Institute of Science, Bangalore, India. His research interests include Microeconomics and Game Theory with interdisciplinary applications to environment, law, philosophy and politics. About Contributors:Dilip Abreu, Princeton University, Princeton, USADilip R. Ahuja, National Institute of Advanced Studies, Bangalore, IndiaP. Binswanger-Mkhize , China Agricultural UniversityArka Roy Chaudhuri, University of British Columbia, Vancouver, CanadaAvinash K. Dixit, Princeton University, Princeton, USAProbal P. Ghosh, IRADe, Delhi, IndiaPriyank Jindal, IRADe, Delhi, IndiaRavi Kanbur, Cornell University, Ithaca, USAAshok Kotwal, University of British Columbia, Vancouver, CanadaSugatoMarjit, CSSS, Kolkata, IndiaAnil Markandya, University of Bath, Bath, UK; Basque Centre for Climate Change, Bilbao, SpainKaivanMunshi, University of Cambridge, Cambridge, UKMilindMurugkar, PragatiAbhiyan, Nasik, IndiaJyoti K. Parikh, IRADe, Delhi, IndiaKirit S. Parikh, IRADe, Delhi, IndiaMihirRakshit, ICRA, Kolkata, IndiaBharat Ramaswami, Indian Statistical Institute Delhi, New Delhi, IndiaGeeta Sandal, IRADe, New Delhi, IndiaNirvikar Singh, University of California, Santa Cruz, USAT.N. Srinivasan, Yale University, New Haven, USAMarti G. Subrahmanyam, New York University, New York, USAShyam Sunder, Yale University, New Haven, USADragon Yongjun Tang, University of Hong Kong, Hong KongSarah Qian Wang, University of Warwick, UK

Autoren/Hrsg.

Dev, S. Mahendra

Babu, P. G.

Inhaltsverzeichnis

1;Preface;6
2;Contents;8
3;Editors and Contributors;11
4;1 Introduction to Development in India: Micro and Macro Perspectives;14
4.1;1.1 Part 1: Formal and Informal Institutions;15
4.2;1.2 Part 2: Aid and Poverty;16
4.3;1.3 Part 3: Indian Agriculture: Growth and Distribution;17
4.4;1.4 Part 4: Financial Markets and Macro Economy;18
4.5;1.5 Part 5: Technological Change, Trade, and Development;21
4.6;1.6 Part 6: Ecosystems and Energy;22
4.7;References;23
5;Part IFormal and Informal Institutions;24
6;2 Caste Networks in the Modern Indian Economy;25
6.1;2.1 Introduction;25
6.2;2.2 Caste Networks in Rural and Urban India;28
6.3;2.3 Caste Networks and the Misallocation of Factors of Production;32
6.4;2.4 Caste Networks and Occupational Mobility;33
6.5;2.5 Caste Networks and Restrictions on Mobility in Urban India;37
6.6;2.6 Caste Networks and Restrictions on Mobility in Rural India;39
6.7;2.7 New Roles for Caste Networks;41
6.8;2.8 Network Decay;44
6.9;2.9 Conclusion;47
6.10;References;47
7;3 Evolution of Judicial Activism: The Supreme Court of India;50
7.1;3.1 Introduction;50
7.2;3.2 Judicial Activism: The Run-up to the Emergency of 1975--77;52
7.2.1;3.2.1 Absence of Judicial Activism in India Prior to the Emergency;52
7.2.2;3.2.2 Tussle Between Judiciary and Legislative Branches;53
7.2.3;3.2.3 The Declaration of Emergency: July 25, 1975;54
7.3;3.3 The Expansive Path of Judicial Activism Since the Emergency;56
7.3.1;3.3.1 Public Interest Litigation (PIL);57
7.3.2;3.3.2 Expansive Reading of Article 21 on ``Life and Personal Liberty'';58
7.4;3.4 Economic Spill Overs of Judicial Decisions;61
7.4.1;3.4.1 Economic Logic of the Separation of Fundamental Rights (Part III) and Directive Principles of State Policy (Part IV);62
7.5;3.5 Concluding Remarks;65
7.6;References;66
8;4 Corruption: Supply-Side and Demand-Side Solutions;68
8.1;4.1 Community-Based Institutions in Other Contexts;69
8.2;4.2 Community-Based Collective Action Against Corruption;71
8.3;4.3 Further Requirements;73
8.4;4.4 Start-up Problems;75
8.5;4.5 The Role of Culture;75
8.6;4.6 Other Government Action;76
8.7;4.7 Limitations;78
8.8;4.8 Challenge to Research and Action;78
8.9;References;79
9;Part IIAid and Poverty;80
10;5 Can a Country Be a Donor and a Recipient of Aid?;81
10.1;5.1 Introduction;81
10.2;5.2 The Salience of the Nation State: Global Rawlsians Versus Rawls;83
10.3;5.3 Global Utilitarianism and Anti-poverty Targeting;85
10.4;5.4 Some Operational Considerations: The Case of IDA;88
10.5;5.5 Conclusion;90
10.6;References;91
11;6 Why is Poverty Declining so Slowly in India?;92
11.1;6.1 Introduction;92
11.2;6.2 Empirical Picture;93
11.3;6.3 Structure of Indian Economy;94
11.3.1;6.3.1 Growth Drivers and Employment;97
11.3.2;6.3.2 Growth Drivers;102
11.4;6.4 Demand Pattern;103
11.4.1;6.4.1 Education;105
11.5;6.5 Conclusions;107
11.6;Acknowledgements;108
11.7;References;108
12;Part IIIIndian Agriculture: Growth andDistribution;109
13;7 Agriculture and Structural Transformation 1960--2040: Implications for Double-Digit Inclusive Growth;110
13.1;7.1 The Issues;110
13.2;7.2 The Approach;111
13.3;7.3 The Results;113
13.3.1;7.3.1 The Reference Run;113
13.3.2;7.3.2 The Changing Structure of Food Consumption;114
13.3.3;7.3.3 Maximizing Growth Has Major Implications;115
13.3.4;7.3.4 Attaining Inclusive Double-Digit Growth;118
13.3.4.1;7.3.4.1 Agricultural Productivity Growth;118
13.3.4.2;7.3.4.2 Importance of Water Use Efficiency and Irrigation;119
13.3.4.3;7.3.4.3 Import and Land Constraints Have Economy-Wide Impacts;120
13.3.4.4;7.3.4.4 Impact of Higher Trade Bounds;121
13.3.4.5;7.3.4.5 Impact of High Irrigation, High TFPG, and Larger Imports;123
13.3.5;7.3.5 Impacts on Poverty;123
13.3.6;7.3.6 Migration and Structural Transformation;123
13.4;7.4 Comparison to Past Trends;124
13.5;7.5 Summary and Conclusions;127
13.6;References;129
14;8 Incremental Reforms in Food Policy: What Are the Possibilities?;131
14.1;8.1 Introduction;131
14.2;8.2 The Theory and Practice of Food Policy Interventions;133
14.3;8.3 Reforming the PDS: The Debate;138
14.4;8.4 Storage and Logistics: How Much Capacity Is Needed?;139
14.5;8.5 Matching Storage Capacity to Procurement;143
14.6;8.6 Procurement Reforms: Computerizing the Procurement Network;147
14.7;8.7 Distribution Reforms;148
14.8;8.8 Individual State Experiences;152
14.8.1;8.8.1 Chhattisgarh;152
14.8.2;8.8.2 Gujarat;154
14.8.3;8.8.3 Madhya Pradesh;155
14.9;8.9 Conclusions;156
14.10;Acknowledgment;158
14.11;References;159
15;Part IVFinancial Markets and MacroEconomy;160
16;9 A Model of Bubbles and Crashes;161
16.1;9.1 Exogenous Crashes;165
16.2;9.2 Endogenous Crashes;167
16.3;9.3 Synchronizing Events;169
16.4;9.4 Common Knowledge and ``Classical'' Impossibilities;170
16.5;9.5 Conclusion;170
16.6;References;170
17;10 Experimental Exploration into Macro Economics;172
17.1;10.1 Economics as an Experimental Science;172
17.2;10.2 What Have We Learned?;174
17.2.1;10.2.1 Properties of Competitive Markets;174
17.2.2;10.2.2 Rational Expectations Equilibria in Asset Markets;176
17.2.3;10.2.3 Information Aggregation in Markets;179
17.2.4;10.2.4 Cost of Information;182
17.2.5;10.2.5 Price Indeterminacy and Bubbles;183
17.2.6;10.2.6 Equilibrium Selection in Presence of Multiplicity;185
17.2.7;10.2.7 Fiat Money and Monetary Policy;186
17.2.8;10.2.8 From Research to Policy;188
17.2.9;10.2.9 Sunspot Equilibria;190
17.2.10;10.2.10 Default Penalty as an Equilibrium Selection Mechanism;191
17.2.11;10.2.11 Financing Public Goods Through Democratic Taxation;193
17.2.12;10.2.12 Role of Optimization in Economics;194
17.2.13;10.2.13 Market as Artifacts;198
17.3;10.3 Challenges and Open Questions;199
17.4;References;199
18;11 Does the Tail Wag the Dog? The Effect of Credit Default Swaps on Credit Risk;202
18.1;11.1 Related Literature and Testable Hypotheses;205
18.2;11.2 Dataset on CDS Trading and Bankruptcy;207
18.3;11.3 CDS Trading and Credit Risk: Empirical Results;210
18.3.1;11.3.1 Credit Ratings Before and After the Introduction of CDS;211
18.3.2;11.3.2 Baseline Hazard Model Results on Downgrading and Bankruptcy;213
18.3.3;11.3.3 Selection and Endogeneity in CDS Trading;216
18.3.3.1;11.3.3.1 Determinants of CDS Trading;217
18.3.3.2;11.3.3.2 Propensity Score Matching;220
18.3.3.3;11.3.3.3 Full-Information Maximum Likelihood (FIML);223
18.3.4;11.3.4 Channels and Mechanisms for the Effect of CDS on Credit Risk;225
18.3.4.1;11.3.4.1 CDS Contracts Outstanding;225
18.3.4.2;11.3.4.2 Likelihood of Bankruptcy Conditioning on Distress;226
18.3.4.3;11.3.4.3 ``No Restructuring'' CDS;228
18.3.4.4;11.3.4.4 Number of Creditors;233
18.4;11.4 Conclusion;235
18.5;Acknowledgement;236
18.6;A.1 Appendix. Credit Default Swaps' Credit Event Definitions;236
18.7;References;238
19;12 Financial Crisis and Liquidity Trap Some Theoretical and Policy Perspectives;240
19.1;12.1 Introduction;240
19.2;12.2 Liquidity Trap and Demand Deficiency;241
19.2.1;12.2.1 Nature of Liquidity Trap: Keynes, Keynesians and New Keynesians;242
19.3;12.3 Liquidity Trap: Some Stylized Facts;244
19.4;12.4 Sources of the Trap and Policy Failure;246
19.4.1;12.4.1 Nature of Imbalances;246
19.4.2;12.4.2 Imbalances and the Post-bubble Liquidity Trap;249
19.5;12.5 Policy Requirements;252
19.5.1;12.5.1 Repairing the Financial System;253
19.5.2;12.5.2 Monetary Policy;254
19.5.3;12.5.3 Fiscal Expansion and Consolidation;256
19.5.3.1;12.5.3.1 Escaping from the Liquidity Trap: A Policy Framework;261
19.5.4;12.5.4 Some Fiscal Policy Imperatives;263
19.6;12.6 Summary and Conclusion;267
19.7;A.1 Appendix;269
19.7.1;A.1.1 Ricardian Non-equivalence Under Liquidity Trap;269
19.8;References;270
20;Part VTechnological Change, Trade andDevelopment;271
21;13 Finite Change---Implication for Trade Theory, Policy and Development;272
21.1;13.1 Introduction and Preliminaries;272
21.2;13.2 Finite Change and Tariff-Quota Non-equivalence;276
21.3;13.3 A Complex Production Structure;278
21.4;13.4 International Factor Mobility, Wage Distribution and Finite Change;278
21.5;13.5 Conclusion;282
21.6;Acknowledgments;283
21.7;References;283
22;14 Information Technology and Its Role in India's Economic Development: A Review;284
22.1;14.1 Introduction;284
22.2;14.2 IT-BPO Industry;290
22.3;14.3 Rural Development;295
22.4;14.4 E-Commerce;301
22.5;14.5 Manufacturing;304
22.6;14.6 E-Governance;307
22.7;14.7 Conclusion;310
22.8;References;311
23;Part VIEcosystems and Energy;314
24;15 Value of Biodiversity and Ecosystem Services in South Asia and India: Past, Present and Future;315
24.1;15.1 Introduction;315
24.2;15.2 Estimating Changes in Ecosystem Services: 1900 to 2000;317
24.2.1;15.2.1 Change in MSA Area;318
24.2.2;15.2.2 Valuing the Changes in Ecosystem Services;319
24.2.2.1;15.2.2.1 Forests;323
24.2.2.2;15.2.2.2 Grassland and Steppe;327
24.2.2.3;15.2.2.3 The Total Economic Impact Related to a Loss of MSA Area;329
24.2.2.4;15.2.2.4 Net Economic Impacts on Annual Flows Provided by ES Taking Account of Agricultural Benefits;329
24.2.2.5;15.2.2.5 Conclusions on Impacts of Loss of Biodiversity 1900 to 2050;331
24.3;15.3 The Value of Current Ecosystem Services in India;333
24.3.1;15.3.1 Background and Introduction;333
24.3.2;15.3.2 Direct and Indirect Services of Forests;334
24.3.2.1;15.3.2.1 Carbon Sequestration in Indian Forests;334
24.3.2.2;15.3.2.2 Non-use Values Associated with Conservation Forests;337
24.3.3;15.3.3 Services from Grasslands, Wetlands, Mangroves and Coral Reefs;338
24.3.3.1;15.3.3.1 Services Derived from Grasslands;339
24.3.3.2;15.3.3.2 Services Derived from Wetlands;341
24.3.3.3;15.3.3.3 Services Derived From Mangroves;343
24.3.3.4;15.3.3.4 Services Derived from Coral Reefs;344
24.3.4;15.3.4 Summary of Values of Ecosystem Services in India;345
24.4;15.4 Conclusions;348
24.5;Acknowledgments;349
24.6;References;349
25;16 Climate Resilient Cities: Vulnerability Profiling of Twenty Indian Cities;351
25.1;16.1 Introduction;351
25.1.1;16.1.1 Climate Variability in India;351
25.1.2;16.1.2 Scope and Background of the Study;352
25.2;16.2 Methodology;353
25.3;16.3 Case Studies;357
25.4;16.4 Comparative Analysis;358
25.4.1;16.4.1 Recommendations;362
25.4.2;16.4.2 Climate Informed Urbanization and Enabling Policies;364
25.5;16.5 Concluding Remarks;364
25.6;References;365
26;17 Challenges for Sustainable Energy Development in India;366
26.1;17.1 Introduction;366
26.2;17.2 Introduction to the Energy Sector in India;366
26.3;17.3 The Enduring Nature of Energy-Environment Conflicts in India;368
26.4;17.4 Sustainable Energy Paradigm;369
26.5;17.5 How Far Is the Road for Renewable Energy Technologies?;372
26.6;17.6 Gingerly Steps Towards a Resolution;374
26.7;17.7 Concluding Remarks;375
26.8;Acknowledgements;376
26.9;References;376