Informatics Publishing Limited

Abhay Pethe ¹, Sudesh Mujumdar ¹

Affiliations
1 Department of Economics, University of Bombay, Mumbai - 400098, IN

Abstract

Given the ongoing advnce in computational technology, economists can legitimetly think of incorporating various aspects of uncertainty in their macromodelling effort, using stochastic control. what was feasible, not so long ago, only by using a super computer is now possible using desk top mochines. However understanding in this area is hampered bya a lack of computational vidance and experience,which can be generated only by trying Oftt these techniques on a wide varity of models.

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Prakash Salvi , Abhay Pethe

Abstract

In this paper, we report estimated single equation models explaining the value added in the industries in India as well as fifteen states. The choice of the states has been dictated mainly by the relative ease of obtaining data. An effort is made to assess the relative effort with respect to development banking and infrastructure, and to draw conclusions about where either of these instruments need to be pushed to maximise returns vis-a-vis incremental value added. To this end, optimal control technique has been used. Thus, an illustration of the use of this relatively new technique, for determining the allocation of funds is another important aspect of this paper.

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Abhay Pethe ¹, Mala Lalvani ²

Affiliations
1 Urban Economic and Regional Development, Department of Economics, University of Mumbai, Vidyanagari-400098, IN
2 Department of Economics, University of Mumbai, Vidyanagari-400098, IN

Abstract

This paper provides a brief overview of the economic environment in Maharashtra including the socio-economic development of the state as a backdrop. Within this context, we assess and analyse the fiscal situation in Maharashtra. We, examine both, the relative performance vis-a-vis other major states of the Indian union and its temporal performance over a ten-year period. The power sector has been illustratively discussed as a bottleneck to growth of Maharashtra's economy, and hence adding to the fiscal woes of the state. The Cotton Monopoly Scheme and Sugar co-operatives have been discussed in this context. For the reform package to be comprehensive we would like to see policy measures being initiated at different levels:policies at the level of the state, which are financial and administrative in the main; policies that the central government must pursue in its dealing with the states and the third type of policy measures that are overarching in the sense that they concern the governments at all levels and deal with issues of capacity building and governance.

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Abhay Pethe ¹

Affiliations
1 Department of Economics, University of Mumbai, Mumbai-400098, IN

Abstract

Urbanisation is an important-perhaps numero uno-emerging concern in India for very obvious reasons. After all, the urban concentration of the third world population in general and India in particular has been growing at a tremendous pace (too rapid for some). So that especial attention to the concern of urban problems is urgently called for. It is in this context that the work, in relation to which the current article is written, assumes importance. It is a collection of papers and articles written by a budding young scholar, Vibhooti Shukla, who tragically is no more. This inevitably means that even when one is being critical, one cannot help but feel a certain sense of poignant loss and sympathy that hence must pervade our treatment.

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Abhay Pethe ¹, Anuradha Malshe

Affiliations
1 Department of Economics, University of Mumbai, Mumbai-100098, IN

Abstract

Development Financial Institutions (DFIs) have been an integral part of India’s developmental strategy. However, the economic crisis in the early nineties and the consequent paradigmatic change have perhaps necessitated a fresh look and evaluation of the performance of the DFIs which may, hence, help us to take a view about their continued relevance. In this paper we first briefly look at the origin and role of some of the DFIs and undertake the so-called Subsidy Dependence Index (SDI) analysis for a select set of DFIs, viz., IDBI, ICICI and NABARD. This SDI analysis is supplemented by another tool called Implicit Cost of Resources which is devised with the help of SDI figures. Both these parameters try to give a better estimation of the burden of subsidies borne not by the DFIs but rather by the economy at large.

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Abhay Pethe ¹, Mala Lalvani ¹

Affiliations
1 Department of Economics, University of Bombay, Bombay-400098, IN

Abstract

This paper-which is in a macro vein-looks at the key fiscal variables, viz., Revenue, Expenditure and the resulting Deficits. There has been an ongoing debate about the forecasting accuracy of especially the deflicits in the general context of credible policy announcements. These issues-always important-have assumed even greater importance, now with the onset of liberalisation in the Indian economy. In this paper, we look at the econometric (unit ischolar_main, co-integration) properties of the relevant series and estimate the Error Correction Model (ECM) to test the improvement in forecasts. We also carry out rolling regression to ascertain the coefficient behavior and finally use the tool of stochastic control to study whether the character of uncertainty is such as to facilitate learning and hence help to improve fiscal marksmanship. The paper ends with suggestions for further research in this rather interesting area.

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Abhay Pethe ¹

Affiliations
1 Department of Economics, University of Bombay, Mumbai, IN

Abstract

Development Economics, which had suffered a temporary eclipse, is back in fashion. This has meant that the number of books written in this area have once again gone up with a gusto. The book under review is a case in point. It is an excellent book by a well known scholar. One of the characteristics of a truly good contribution has always been recognised to be the capacity for the work to operate at various levels. This book satisfies this attribute in ample measure.

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