Artha Vijnana: Journal of The Gokhale Institute of Politics and Economics

Rajas Parchure ¹

Affiliations
1 Gokhale Institute of Politics and Economics, Pune 411004, Maharashtra, IN

Abstract

Input-Output (I-O) analysis has usually been considered as a set of techniques to collect, classify and organise the data on inter-industrial transactions that are involved in the production activities of an economic system and test hypotheses that emerge from economic theories. The possibility that it is itself a component of economic theory is not always taken seriously in mainstream economics. This paper uses I-O analysis to describe the supply situation and confronts it to the linear expenditure system that represents the final demand situation. What is obtained is a general equilibrium model that is an alternative to neoclassical general equilibrium models.

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Rajas Parchure ¹, Ashish Kulkarni ¹

Affiliations
1 Gokhale Institute of Politics and Economics, Pune 411004, IN

Abstract

To paraphrase Joseph Schumpeter, economists stay (and should stay) relevant only so long as their ideas remain so. From that perspective, and on three counts, David Ricardo is even more relevant today than at any point in the past.

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Anurag Asawa ¹, Rajas Parchure ¹

Affiliations
1 Gokhale Institute of Politics and Economics, Pune 411004, Maharashtra, IN

Abstract

Affordable housing normally covers both low cost market and subsidized housing that is available to people who cannot afford to rent or buy a house generally available in the open market. This study attempts to define, develop and administer the concept of Affordable Housing for poor and needy population in urban areas of Maharashtra. It is based on primary data collected from four towns (Malegaon, Nanded, Nagpur and Pune) covering 12000 households. Affordability has been calculated through present value of future net savings and the current disposable wealth, as reported by respondents of the survey. The projected profile of net savings over the remaining working life of the respondents duly adjusted for impairments in their repayment capacities on account of morbidity and mortality have been used for this purpose.

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Rajas Parchure ¹, Ujwala Kamble ¹

Affiliations
1 Gokhale Institute of Politics and Economics, Pune 411004, Maharashtra, IN

Abstract

Ever since it was discovered sixty years ago, the Leontief paradox has made repeated appearances in a large number of empirical studies of trade behaviour across diverse countries and time periods and continues to do so. Although the paradoxical trade pattern is observed less frequently than the Heckscher - Ohlin trade pattern, the regularity and persistence of its observation, in spite of several remarkable improvements and refinements in the methodology for testing trade theories, raise doubts about the generality of the Heckscher-Ohlin theory itself. A truly general trade theory must be able to make predictions of all the observed regularities in trade behaviour. This paper suggests a model of international trade that not only generates both types of predictions but goes further to provide solutions for trade situations in which the Heckscher-Ohlin theory simply fails to make any prediction. In so doing the paper advances a new model of international trade which is entirely based on input-output analysis.

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Rajas Parchure ¹

Affiliations
1 Gokhale Institute of Politics and Economics, Pune 411 004, IN

Abstract

This paper demonstrates that Marx's law of the falling rate of profit holds only if investment falls short of saving. A rising organic composition of capital is not found to be the direct cause of the falling rate of profit but rather a condition that makes it more difficult for investment to keep pace with saving. The paper also brings out the connection of the law of falling profit with the business cycle phenomenon. A rising organic composition of capital is found to exacerbate cycles. The paper concludes with the suggestion that a synthesis between the theories of Marx and Keynes will better explain real world crises.

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Rajas Parchure

Abstract

The object of this note is to demonstrate that the propositions in the closing sentences of Chapter IX (Book I), "Of the Profits of Stock" in The Wealth of Nations are formally identical to the well-known ancient-modern Ricardo-Staffa theorem on the inverse relationship between the real wage and the rate of profit.

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Rajas Parchure ¹

Affiliations
1 Artha Vijnana, IN

Abstract

This issue of Artha Vijnana carries the papers presented at the 1st Conference of the Indian Health Economics and Policy Association (IHEPA) "Knowledge- Evidence-Action: Striving towards Better Health Outcomes" held at the Institute of Economic Growth, Delhi during November 18-19, 2011. The primary objective of the Conference was to bring together the researchers and policy makers in the field of health economics and policy and discuss the challenges of integrating knowledge, evidence and action in the sector in India.

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Rajas Parchure ¹, N. Benjamin ¹

Affiliations
1 Gokhale Institute of Politics and Economics, Pune 411004, Maharashtra, IN

Abstract

Both before and after the formation of the BJP Government in Delhi, Narendra Modi has received scholarly and other attention. More recently, Rajeev Kumar has made a study of his work as the chief minister of Gujarat and then as the prime minister of India during the first year.

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Rajas Parchure ¹

Affiliations
1 Gokhale Institute of Politics and Economics, BMCC Road, Pune 411004, IN

Abstract

This paper investigates the Cambridge equation of growth and distribution from the standpoint of the theory of value. It is shown that the equation continues to hold good in a generalized form and its paradoxical aspect, viz., its invariance to workers’ consumption and saving behaviour stands eliminated. Results of this kind strengthen the possibility that Keynesian theory could provide stronger foundations for the theory of income distribution than marginal productivities of factors.

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Rajas Parchure ¹

Affiliations
1 Gokhale Institute of Politics and Economics, Pune 411004, Maharashtra, IN

Abstract

This paper shows that the price system corresponding to Leontief’s dynamic open model possesses all the properties of the regular Sraffa system. Both systems can accommodate fixed capital and problems associated with its joint utilization, transferability between industries and changing efficiencies over its lifetime can be overcome. Some empirical observations on the general relation between the rate of profit earned on invested capital, the on-cost profit markup rate and the rate of capital turnover have been presented. These form the basis for a new formulation of the dynamic price and output systems that facilitate their empirical application. The new formulation automatically incorporates imperfectly competitive industries.

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