Public Economics Commons^™

A New Induction Proof Of The Gibbard-Satterthwaite Theorem, Sarvesh Bandhu, Rohit Kumar

Working Papers

In this paper, we provide a new induction proof of the Gibbard–Satterthwaite theorem, where the induction argument builds on n = 1 rather than the existing proofs using n = 2. The provided proof is much shorter, and the arguments are very intuitive, which will be helpful in teaching and for beginners in this field.

Queueing Problem With Dynamic And Heterogeneous Opportunity Costs, Sarvesh Bandhu, Parikshit De, Devwrat Dube

Working Papers

We study queueing problems in which agents have heterogeneous per-period waiting costs (their private information), which can vary with queue position and are thus dynamic. Our goal is to implement a Rawlsian allocation rule that minimises the maximum of individual waiting costs among all agents. Under complete information, we introduce the Just Algorithm, a simple method that always selects a Rawlsian queue. However, in settings with incomplete information where agents possess multidimensional private types i.e., the vector of their per-period waiting costs for each period, we prove that no Dominant Strategy Incentive-Compatible (DSIC) mechanism can implement the Rawlsian queueing rule …

Undominated Monopoly Regulation, Debasis Mishra, Sanket Patil

Working Papers

We study undominated mechanisms with transfers for regulating a monopolist who privately observes the marginal cost of production. A mechanism is undominated if no other mechanism gives the regulator a strictly higher payoff at some marginal cost of the monopolist without lowering the regulator’s payoff at other costs. We show that an undominated mechanism has a quantity floor: whenever the monopolist is allowed to operate, it produces above a threshold quantity. Moreover, the regulator’s operation decision is stochastic only if the monopolist produces at the quantity floor. We provide a near-complete characterization of the set of undominated mechanisms and use …

Implementing Efficiency With Equality, Sarvesh Bandhu, Ratul Lahkar

Working Papers

We consider the implementation of efficiency with minimum inequality in a large population model of negative externalities. Formally, the model is one of tragedy of the commons with the aggregate strategy at the efficient state being lower than at the Nash equilibrium. A planner can restore efficiency by imposing an externality equivalent tax and then redistributing the tax revenue as transfers to lower inequality. We characterize the payment scheme that minimizes inequality, as measured by the Gini coefficient, at the efficient state subject to incentive compatibility and budget balance. We then construct a mechanism that implements efficiency with minimum inequality …

Pension Reform In Latin America And Its Lessons For International Policymakers By Tapen Sinha Kluwer, Boston: Academic Publishers, 2000., Mukul G Asher

IIMB Management Review

No abstract provided.

Fiscal Support For India’S Liberalisation - Is It Adequate?, Shyamal Roy

IIMB Management Review

For assessing fiscal policy support to India's economic liberalisation process, the quality of fiscal management is far more important than just monitoring the aggregates. Going by this framework of analysis, government expenditure and borrowing patterns have had a negative impact on the liberalisation process. In fact, the fiscal management of the economy over the years was so complete that it left little room for manoeuvrability in the fiscal variables in the budget 1998-99. Shyamal Roy examines budget 1998-99 and finds that though it may fail to achieve the fiscal targets, it does contain some ideas which if pursued vigorously can …

New Economic Policy And Public Enterprises, R K Mishra, R Nandagopal

IIMB Management Review

Encouraged by the sweeping economic reforms taking place around the world and compelled by its structural economic distortions, India is charting out a new path for its economic development. The country is evolving a New Economic policy (NEP)-to break the vicious circle Of poverty, inequity,unemployment, and slow rate of economic growth. NEP spells out package of reformatory measures in respect of Public Enterprises (PEs) contained in a series of pronouncements incorporated in Budget Documents and Economic Survey for 1991—92 and 1992—93, Industrial policy Reselution Of July 1991, and Letter on Development Policy from the Union Finance Ministe to the World …

Privatisation, Prasanna Chandra

IIMB Management Review

The privatisation programmes of various countries have been motivated primarily by a desire to improve efficiency, generate resources, and promote popular capitalism. It has worked reasonably well in countries with well-developed capital markets. There are several models of privatisation with certain costs and benefits associated with them. Meaningful privatisation in India calls for phasing it over a period of time in a well thought out manner and the same has been dealt in detail in this paper.

Public Enterprises: Toward A White Paper Edited By Y. Venugopal Reddy, T. Koteswara Rao And R.K. Mishra, Hyderabad: Institute Of Public Enterprise, 1990., S Shivaramu

IIMB Management Review

No abstract provided.

Alternative In Industrial Development By H. H. De Haan, New Delhi: Sage Publication, 1988., S N Chary

IIMB Management Review

This is the first volume in a series of studies sponsored under the Indo-Dutch Programme on Alternatives in Development, the programme being jointly implemented by ICSSR, New Delhi and IMWOO, The Hague. Essentially, the study presented in this volume is an evaluation of the main sugar technologies by means of economic analysis. It mostly confines itself to the evaluations and comparisons between the modern vacuum pan sulphitation (VPS) process, used in the Indian sugar mills, and the open pan sulphitation (OPS) process which is an intermediate technology and an alternative to the large-scale VPS Process.

Planning: New Imperative, Abid Hussain

IIMB Management Review

Planning must take note of the fact that while the economy is integrating, the indian polity is fragmenting and society is becoming more divisive. The fragmentation of polity and assertion of separate group or community identities are perhaps a part of an inescapable process. How this fragmentation and divisive aspects of society are to be managed in a national perspective, is an
the emerging challenge for planning.

                                                      The need right now is to stimulate further growth. Without higher growth, we will end up only redistributing poverty. Taking into account the growth performance of the Indian economy since 1980. It is …