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

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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