Pub Date : 2024-04-01DOI: 10.1177/00194662241238498
Chaitanya Talreja
Two important aspects of service sector growth in India in the post-1991 reform period from the demand side have been identified in the literature. Ghose (2015) suggests that the rapid service demand expansion has been driven by the rich, who have disproportionately benefited from the information and communication technology (ICT)-based service boom. Basu and Das (2017) argue that service spending by the poorer section also rose, and the service demand expansion is partly a result of the coercive nature of privatised service expansion. This article examines these two critical aspects in greater detail using the National Sample Survey Organisation (NSSO) consumer expenditure surveys from 1993–94, 2004–05 and 2011–12. The article finds clear evidence to show that the service expenditure in India was dominated by the top 20% of Indian households. Even as bottom 20% devoted larger household budget share to services over time, their share in aggregate service expenditure remained marginal. State per capita income, servicification of output, social expenditure by the government, urbanisation and changing nature of the economy post liberalisation are found to be important factors associated with variation in household service expenditure share across quintile classes. The relationships of these factors with service expenditure share differ across expenditure quintiles. Further, service expenditure elasticity estimates by decile classes indicate more than unit elasticity for various services over time, depicting non-saturating demand for services. The decile-wide rise in demand for services during this period, especially for the poorer households, is possibly due to a complex mechanism involving necessity, aspirations and enhanced access to new services and may not fit into the binary of discretion versus involuntary spending. JEL Codes: O1, L16, L80, D30, D12
{"title":"Service Sector Growth and \u2028Inequality in India: An Analysis of Household Consumption Spending","authors":"Chaitanya Talreja","doi":"10.1177/00194662241238498","DOIUrl":"https://doi.org/10.1177/00194662241238498","url":null,"abstract":"Two important aspects of service sector growth in India in the post-1991 reform period from the demand side have been identified in the literature. Ghose (2015) suggests that the rapid service demand expansion has been driven by the rich, who have disproportionately benefited from the information and communication technology (ICT)-based service boom. Basu and Das (2017) argue that service spending by the poorer section also rose, and the service demand expansion is partly a result of the coercive nature of privatised service expansion. This article examines these two critical aspects in greater detail using the National Sample Survey Organisation (NSSO) consumer expenditure surveys from 1993–94, 2004–05 and 2011–12. The article finds clear evidence to show that the service expenditure in India was dominated by the top 20% of Indian households. Even as bottom 20% devoted larger household budget share to services over time, their share in aggregate service expenditure remained marginal. State per capita income, servicification of output, social expenditure by the government, urbanisation and changing nature of the economy post liberalisation are found to be important factors associated with variation in household service expenditure share across quintile classes. The relationships of these factors with service expenditure share differ across expenditure quintiles. Further, service expenditure elasticity estimates by decile classes indicate more than unit elasticity for various services over time, depicting non-saturating demand for services. The decile-wide rise in demand for services during this period, especially for the poorer households, is possibly due to a complex mechanism involving necessity, aspirations and enhanced access to new services and may not fit into the binary of discretion versus involuntary spending. JEL Codes: O1, L16, L80, D30, D12","PeriodicalId":509033,"journal":{"name":"The Indian Economic Journal","volume":"33 8","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140770141","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-03-29DOI: 10.1177/00194662241238494
Jagjeevan Kanoujiya, Shailesh Rastogi
Banks are an integral part of a nation’s economy. Therefore, soundness of a bank’s financial health is foremost important for the good economic condition of the country. This article proposes to assess the bank efficiency (BE) and default risk (DR) of banks in India, and to examine the link between BE and DR of banks in India. This study uses the secondary data of 34 banks operating in India for the period from 2016 to 2019 for panel data analysis. BE as technical efficiency of banks and their DR are evaluated using data envelopment analysis and Altman’s Z-score, respectively. The findings of the study indicate no significant association between BE and DR of banks in India. This article is a novel study of its kind and provides surprising result, which indicates encouraging outcome for banks in India. JEL Codes: G30, G33, G38
银行是国家经济不可分割的一部分。因此，银行财务状况的稳健性对于国家良好的经济状况至关重要。本文拟对印度银行的银行效率（BE）和违约风险（DR）进行评估，并研究印度银行的银行效率和违约风险之间的联系。本研究使用 2016 年至 2019 年期间在印度运营的 34 家银行的二手数据进行面板数据分析。分别采用数据包络分析法和 Altman Z-score，对作为银行技术效率的 BE 及其 DR 进行评估。研究结果表明，印度银行的BE和DR之间没有显著关联。本文是同类研究中的一项新研究，其结果令人惊讶，表明印度银行的发展前景令人鼓舞。JEL Codes：G30, G33, G38
{"title":"Does Efficiency Bring Down Default Risk in Indian Banks?","authors":"Jagjeevan Kanoujiya, Shailesh Rastogi","doi":"10.1177/00194662241238494","DOIUrl":"https://doi.org/10.1177/00194662241238494","url":null,"abstract":"Banks are an integral part of a nation’s economy. Therefore, soundness of a bank’s financial health is foremost important for the good economic condition of the country. This article proposes to assess the bank efficiency (BE) and default risk (DR) of banks in India, and to examine the link between BE and DR of banks in India. This study uses the secondary data of 34 banks operating in India for the period from 2016 to 2019 for panel data analysis. BE as technical efficiency of banks and their DR are evaluated using data envelopment analysis and Altman’s Z-score, respectively. The findings of the study indicate no significant association between BE and DR of banks in India. This article is a novel study of its kind and provides surprising result, which indicates encouraging outcome for banks in India. JEL Codes: G30, G33, G38","PeriodicalId":509033,"journal":{"name":"The Indian Economic Journal","volume":"62 9","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-03-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140367915","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-03-29DOI: 10.1177/00194662241238487
M. S. Rymbai, D. W. Thangkhiew
A smooth operation of the public budget requires simultaneous growth of macro-fiscal instruments. In this background, the study intends to estimate the macro-fiscal determinants of the public budget in the North-Eastern states (NES). The percentage estimation of fiscal capacity, fiscal dependency and revenue base depicts an overall fiscal conundrum in the NES. The empirical estimation procedure begins with the unit root test, followed by a Pedroni cointegration test, followed by the fully modified least square and the dynamic least square model to estimate the degree of relationship. Two series have been estimated to avoid multicollinearity. The results depict a cointegration between the macro-fiscal instruments (total government expenditure, state’s own revenue (SOR), gross state domestic product (GSDP), grants (GR), gross fiscal deficit (GFD) and revenue deficit (RD)). The results show that the SOR, GSDP and GR are the positive and significant determinants of government expenditure. On the other hand, GFD is a positive yet insignificant determinant of government expenditure. RD is a negative and significant determinant of government expenditure. This implies that a stronger revenue generation capacity could result in augmenting the public budget for the efficient provision of public services. JEL Codes: E62, H1, H50, H62, H71, H72
{"title":"Fiscal Conundrum of the North-Eastern States of India","authors":"M. S. Rymbai, D. W. Thangkhiew","doi":"10.1177/00194662241238487","DOIUrl":"https://doi.org/10.1177/00194662241238487","url":null,"abstract":"A smooth operation of the public budget requires simultaneous growth of macro-fiscal instruments. In this background, the study intends to estimate the macro-fiscal determinants of the public budget in the North-Eastern states (NES). The percentage estimation of fiscal capacity, fiscal dependency and revenue base depicts an overall fiscal conundrum in the NES. The empirical estimation procedure begins with the unit root test, followed by a Pedroni cointegration test, followed by the fully modified least square and the dynamic least square model to estimate the degree of relationship. Two series have been estimated to avoid multicollinearity. The results depict a cointegration between the macro-fiscal instruments (total government expenditure, state’s own revenue (SOR), gross state domestic product (GSDP), grants (GR), gross fiscal deficit (GFD) and revenue deficit (RD)). The results show that the SOR, GSDP and GR are the positive and significant determinants of government expenditure. On the other hand, GFD is a positive yet insignificant determinant of government expenditure. RD is a negative and significant determinant of government expenditure. This implies that a stronger revenue generation capacity could result in augmenting the public budget for the efficient provision of public services. JEL Codes: E62, H1, H50, H62, H71, H72","PeriodicalId":509033,"journal":{"name":"The Indian Economic Journal","volume":"21 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-03-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140365494","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-03-29DOI: 10.1177/00194662241238591
Riddhi Chatterjee
In this article, growth of import demand is estimated in a dynamic optimisation framework. Since a conventional micro-theoretic import demand function cannot capture the issue of the growth of import demand, it is derived in a macro-theoretic framework of equilibrium import demand function. Growth rate of import demand in a dynamic optimisation framework (considering utility maximisation problem) has not yet been found in the literature. The main focus of this article is to derive this. It is found that growth rate of imports is the function of the growth of domestic income or expenditure, the growth rate of relative price, which is nothing but the real exchange rate, and productivity of capital. The theoretically derived import growth equation was empirically verified for 35 less developed countries. It is observed that for most of the less developed countries, independent variables are statistically significant with expected sign. JEL Codes: F130, F14
{"title":"Derivation of Growth of Import Demand: A Time Series Analysis \u2028of Less Developed Countries","authors":"Riddhi Chatterjee","doi":"10.1177/00194662241238591","DOIUrl":"https://doi.org/10.1177/00194662241238591","url":null,"abstract":"In this article, growth of import demand is estimated in a dynamic optimisation framework. Since a conventional micro-theoretic import demand function cannot capture the issue of the growth of import demand, it is derived in a macro-theoretic framework of equilibrium import demand function. Growth rate of import demand in a dynamic optimisation framework (considering utility maximisation problem) has not yet been found in the literature. The main focus of this article is to derive this. It is found that growth rate of imports is the function of the growth of domestic income or expenditure, the growth rate of relative price, which is nothing but the real exchange rate, and productivity of capital. The theoretically derived import growth equation was empirically verified for 35 less developed countries. It is observed that for most of the less developed countries, independent variables are statistically significant with expected sign. JEL Codes: F130, F14","PeriodicalId":509033,"journal":{"name":"The Indian Economic Journal","volume":"63 6","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-03-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140366308","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-03-29DOI: 10.1177/00194662241238589
Sanchita Daripa, Soumyananda Dinda
This article investigates non-price determinants of fuel choice and consumption decision of households in rural India. Fuel consumption varies at household levels from traditional fuels like firewood and chips to modern fuels such as LPG. Fuel consumption is based on two-stage decisions: (a) whether households participate or not; and (b) how much they consume if they participate. Significant factors might be different in the first stage and the second stage due to certain socio-economic or non-price factors. Applying Cragg’s double hurdle model on NSSO data, this article finds determinants of fuel choice and its consumption at the household level in rural India. Empirical findings indicate that income significantly determines quantity consumption, not choice decision. The role of assets in determining fuel choice and quantity decision is also considered through a comparative study including and excluding landholding, a major asset in rural India. Bottom and top quintile results suggest that advancement of the economic position of the households changes their attitude towards dirty fuel selection and consumption. Firewood fuel consumption decreases with the rising education level of the household head, especially women-headed households. Increased awareness through education and removing social barriers might help to reduce dirty fuel consumption, and India might move towards Sustainable Development Goal. JEL Codes: C20, C13, C34, O13, Q23, Q40, Q56
{"title":"Stage-based Non-price \u2028Determinants of Fuel Choice \u2028and Its Consumption Decision of Households in Rural India","authors":"Sanchita Daripa, Soumyananda Dinda","doi":"10.1177/00194662241238589","DOIUrl":"https://doi.org/10.1177/00194662241238589","url":null,"abstract":"This article investigates non-price determinants of fuel choice and consumption decision of households in rural India. Fuel consumption varies at household levels from traditional fuels like firewood and chips to modern fuels such as LPG. Fuel consumption is based on two-stage decisions: (a) whether households participate or not; and (b) how much they consume if they participate. Significant factors might be different in the first stage and the second stage due to certain socio-economic or non-price factors. Applying Cragg’s double hurdle model on NSSO data, this article finds determinants of fuel choice and its consumption at the household level in rural India. Empirical findings indicate that income significantly determines quantity consumption, not choice decision. The role of assets in determining fuel choice and quantity decision is also considered through a comparative study including and excluding landholding, a major asset in rural India. Bottom and top quintile results suggest that advancement of the economic position of the households changes their attitude towards dirty fuel selection and consumption. Firewood fuel consumption decreases with the rising education level of the household head, especially women-headed households. Increased awareness through education and removing social barriers might help to reduce dirty fuel consumption, and India might move towards Sustainable Development Goal. JEL Codes: C20, C13, C34, O13, Q23, Q40, Q56","PeriodicalId":509033,"journal":{"name":"The Indian Economic Journal","volume":"49 13","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-03-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140367937","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-03-23DOI: 10.1177/00194662241238501
Manoj Kumar
{"title":"Richard P. F. Holt (Ed.), The Selected Letters of John Kenneth Galbraith. Cambridge University Press, New York, 2017, pp. xlii + 701, $34.99 (Hardcover). ISBN: 9781107019881.","authors":"Manoj Kumar","doi":"10.1177/00194662241238501","DOIUrl":"https://doi.org/10.1177/00194662241238501","url":null,"abstract":"","PeriodicalId":509033,"journal":{"name":"The Indian Economic Journal","volume":" 5","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-03-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140210668","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-03-23DOI: 10.1177/00194662241235584
Nivedita Agnihotri
International migration is a worldwide phenomenon, and it has influenced every economy in the world. Migration plays a significant role in the development of both home and host countries. Remittances sent by non-resident Indians (NRIs) to the country of origin improve the standard of living of their family members and are also helpful in solving the balance of payment problems of the country. This research article deals with the socio-economic background of the emigrants’ households. The size of the family, housing conditions, age group, earning members in the family, number of migrated persons, etc., is the important variables of this analysis. To analyse the socio-economic characteristics of the migrants’ households and to examine the causes behind international migration are the main objectives of this study. It is observed that prime reason behind the international migration from Punjab to other countries is the lack of suitable work opportunities. This article is based on the sample of 375 households that have been selected from 15 villages of the two districts, namely Jalandhar and SBS Nagar. For the analysis of data, simple percentage method and binary logistic regression model have been used. The analysis and findings of the study revealed that a total of 579 NRIs have migrated from the 375 households, and all these households have their own homes. It is observed that the ratio of male migrants is much higher than the females. The study analysed that the proportion of dependent family members is almost same in both districts. It is also noticed that people of general category went to developed countries like the United States, Canada, Australia and New Zealand, but the OBCs and SCs preferred to go to the United Kingdom, Europe and Gulf countries. The main reasons of this difference are that the visa process of developed countries is more complicated and also contains huge costs, while visa process and cost of Gulf and other countries are simple and low, so OBCs and SCs can easily afford it. JEL Codes: F2, F22, D14, O15, O1
{"title":"International Migrants from Rural Punjab—Attributes and Characteristics","authors":"Nivedita Agnihotri","doi":"10.1177/00194662241235584","DOIUrl":"https://doi.org/10.1177/00194662241235584","url":null,"abstract":"International migration is a worldwide phenomenon, and it has influenced every economy in the world. Migration plays a significant role in the development of both home and host countries. Remittances sent by non-resident Indians (NRIs) to the country of origin improve the standard of living of their family members and are also helpful in solving the balance of payment problems of the country. This research article deals with the socio-economic background of the emigrants’ households. The size of the family, housing conditions, age group, earning members in the family, number of migrated persons, etc., is the important variables of this analysis. To analyse the socio-economic characteristics of the migrants’ households and to examine the causes behind international migration are the main objectives of this study. It is observed that prime reason behind the international migration from Punjab to other countries is the lack of suitable work opportunities. This article is based on the sample of 375 households that have been selected from 15 villages of the two districts, namely Jalandhar and SBS Nagar. For the analysis of data, simple percentage method and binary logistic regression model have been used. The analysis and findings of the study revealed that a total of 579 NRIs have migrated from the 375 households, and all these households have their own homes. It is observed that the ratio of male migrants is much higher than the females. The study analysed that the proportion of dependent family members is almost same in both districts. It is also noticed that people of general category went to developed countries like the United States, Canada, Australia and New Zealand, but the OBCs and SCs preferred to go to the United Kingdom, Europe and Gulf countries. The main reasons of this difference are that the visa process of developed countries is more complicated and also contains huge costs, while visa process and cost of Gulf and other countries are simple and low, so OBCs and SCs can easily afford it. JEL Codes: F2, F22, D14, O15, O1","PeriodicalId":509033,"journal":{"name":"The Indian Economic Journal","volume":" 36","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-03-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140211012","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-03-22DOI: 10.1177/00194662241235497
K. Singha, L. Sherpa, Md. Samsur Jaman
Sikkim has experienced rapid urbanisation and industrialisation, particularly since the implementation of the North East Industrial and Investment Promotion Policy in 2007 (NEIIPP 2007). Though urbanisation and economic growth are inextricably linked, previous research findings on their causal relationships appear to be contradictory. Increased urbanisation/industrialisation seemed to enrage the Sikkimese, not because of revenue generation or environmental concerns, but because of their disproportionate share of employment opportunities in comparison to outsiders. Using secondary data, this article investigated two critical research questions: (a) Whether urbanisation is a result of or a cause of economic growth; and (b) Has Sikkim’s industrialisation, largely fuelled by the NEIIPP 2007, benefited locals? The causality test revealed a unidirectional relationship between the two, with urbanisation causing economic growth. Despite attracting migrant labour, Sikkim’s increased industrialisation/urbanisation has significantly reduced poverty and unemployment. JEL Codes: H20, L59, O10, O15, O25, R23
{"title":"Urbanisation and Economic Growth: Some Insights from the Himalayan State of Sikkim","authors":"K. Singha, L. Sherpa, Md. Samsur Jaman","doi":"10.1177/00194662241235497","DOIUrl":"https://doi.org/10.1177/00194662241235497","url":null,"abstract":"Sikkim has experienced rapid urbanisation and industrialisation, particularly since the implementation of the North East Industrial and Investment Promotion Policy in 2007 (NEIIPP 2007). Though urbanisation and economic growth are inextricably linked, previous research findings on their causal relationships appear to be contradictory. Increased urbanisation/industrialisation seemed to enrage the Sikkimese, not because of revenue generation or environmental concerns, but because of their disproportionate share of employment opportunities in comparison to outsiders. Using secondary data, this article investigated two critical research questions: (a) Whether urbanisation is a result of or a cause of economic growth; and (b) Has Sikkim’s industrialisation, largely fuelled by the NEIIPP 2007, benefited locals? The causality test revealed a unidirectional relationship between the two, with urbanisation causing economic growth. Despite attracting migrant labour, Sikkim’s increased industrialisation/urbanisation has significantly reduced poverty and unemployment. JEL Codes: H20, L59, O10, O15, O25, R23","PeriodicalId":509033,"journal":{"name":"The Indian Economic Journal","volume":" 2","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-03-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140217482","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-03-22DOI: 10.1177/00194662241238471
Rishabh Kumar
This article analyses the upper tails of wealth, income and consumption in India over the period 2012–2018 using rich lists, wealth surveys, income tax returns and consumer expenditure surveys. We find the upper tail to obey a power-law in all three economic resources. Comparing our estimates in 2012—where we possess data on wealth, income and consumption simultaneously—we find that the upper tail of wealth is most concentrated, income slightly less, and consumption is much less concentrated. Unlike wealth and income, the Pareto coefficients for consumption are estimated to have a well-defined mean and variance. Our findings are suggestive of convex saving functions in the income distribution. JEL Codes: D31, O16, O53
{"title":"Power-law Behaviour and Inequality in the Upper Tail of Wealth, Income and Consumption: Evidence from India","authors":"Rishabh Kumar","doi":"10.1177/00194662241238471","DOIUrl":"https://doi.org/10.1177/00194662241238471","url":null,"abstract":"This article analyses the upper tails of wealth, income and consumption in India over the period 2012–2018 using rich lists, wealth surveys, income tax returns and consumer expenditure surveys. We find the upper tail to obey a power-law in all three economic resources. Comparing our estimates in 2012—where we possess data on wealth, income and consumption simultaneously—we find that the upper tail of wealth is most concentrated, income slightly less, and consumption is much less concentrated. Unlike wealth and income, the Pareto coefficients for consumption are estimated to have a well-defined mean and variance. Our findings are suggestive of convex saving functions in the income distribution. JEL Codes: D31, O16, O53","PeriodicalId":509033,"journal":{"name":"The Indian Economic Journal","volume":" 43","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-03-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140211678","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2024-03-21DOI: 10.1177/00194662241235500
Georg Stamatis
In this article, we show that in joint production, both labour values and production prices are positive but not unambiguously determined. Usually, the former is determined under the implicit presupposition that labour productivity in the production of each commodity is the same in all production processes that produce this commodity, and the latter is determined under the indirect presupposition that the capital productivity in the production of each commodity is the same in all production processes, with the consequence that this also applies to the maximum profit rate. This presupposition is equivalent to a transformation of joint into single production—not in the ‘space’ of material quantities but in that of corresponding nominal quantities in terms of labour values or production prices, respectively. The same presupposition is not only arbitrary but also, in the case of separable technique, contradicts the technical data of the given production technique. The same applies to the above transformation of joint into simple production, which is made possible under this presupposition. Consequently, either no theory of joint production based on nominal quantities is possible, or, when it is possible, it is based on an arbitrary and, in some cases, contradictory presupposition. JEL Codes: B50, B51, B59
{"title":"Labour Values and Production Prices \u2028in Joint Production","authors":"Georg Stamatis","doi":"10.1177/00194662241235500","DOIUrl":"https://doi.org/10.1177/00194662241235500","url":null,"abstract":"In this article, we show that in joint production, both labour values and production prices are positive but not unambiguously determined. Usually, the former is determined under the implicit presupposition that labour productivity in the production of each commodity is the same in all production processes that produce this commodity, and the latter is determined under the indirect presupposition that the capital productivity in the production of each commodity is the same in all production processes, with the consequence that this also applies to the maximum profit rate. This presupposition is equivalent to a transformation of joint into single production—not in the ‘space’ of material quantities but in that of corresponding nominal quantities in terms of labour values or production prices, respectively. The same presupposition is not only arbitrary but also, in the case of separable technique, contradicts the technical data of the given production technique. The same applies to the above transformation of joint into simple production, which is made possible under this presupposition. Consequently, either no theory of joint production based on nominal quantities is possible, or, when it is possible, it is based on an arbitrary and, in some cases, contradictory presupposition. JEL Codes: B50, B51, B59","PeriodicalId":509033,"journal":{"name":"The Indian Economic Journal","volume":" 31","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-03-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140221636","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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