Search results

Among the many factors fueling the inflationary tendencies in an economy such as monetary shocks, structural shocks, demand shocks, external shocks and demographic changes, the issue of inflation (INF) has also been found to be related to fiscal policy decisions of the government. The purpose of this study is to investigate the inflationary tendencies in India particularly from the fiscal point of view. The study also examines the influence of other potential determinants such as output growth rate, interest rate, trade-openness (TO) and oil price inflation (OPI).

To examine the dynamic nature of association between fiscal deficit and inflation, the study applies the Toda-Yamamoto (1995) test and Breitung and Candelon (2006) test to investigate the nature of causality in time and frequency domain frameworks. In addition, to scrutinize the possibility of a long-run association, that too from an asymmetric point of view, the study applies a Non-linear Autoregressive Distributed lag model (NARDL) given by Shin et al. (2014). Finally, non-linear cumulative dynamic multipliers are used to trace the traverse between disequilibrium position of short-run and subsequent long-run equilibrium of the system.

The authors found a unidirectional causality from fiscal deficit to inflation in case of time domain analysis and no feedback causality is reported. However, in case of frequency domain design, causality from fiscal deficit to inflation is found at low frequencies only, i.e. no short-run causality is established and hence dynamic nature of the relationship between the two variables is vindicated. Using NARDL model, the results document the existence of an asymmetric long-run direct association between fiscal deficit and inflation. However, an increase in deficit is found to be more inflationary and a decrease affects the inflation with a lower magnitude. The asymmetric impact of fiscal deficit on inflation can be explained through the existence of liquidity constraints, consumption-investment downward inflexibility and the downward price stickiness. Contractionary monetary policy action is found to be more effective than an expansionary one, signifying the asymmetric influence of monetary policy actions on the inflation of India. Similarly, in a supply-constrained economy with downward price rigidity, the authors found an asymmetric impact of output growth and output decline on inflation. As regard to the trade-openness, although an asymmetry is reported, the signs refute the validation of Romer (1993) hypothesis. Finally, the impact of oil price inflation on the inflationary pressures is according to theory but the coefficients are devoid of statistical significance.

These results indicate some important policy recommendations. Fiscal consolidation strategy should be executed in an appreciable manner to achieve the sound fiscal health and lower INF. The disciplined fiscal strategy would also be imperative for an effective monetary policy. Monetary authorities should possess noticeable credibility to manage the macroeconomic system and policy stances should be implemented according to requirements of the economy. Growth in output should be encouraged to have two-fold benefits to the economy – reducing INF on the one hand and fiscal deficits on the other.

The study contributes to the existing literature in the following ways. First, taking note of dynamic nature of the relationship between these two variables, the study examined the deficit INF nexus in a dynamic and asymmetric framework. The novelty of the study is ensured by the very nature of it is the first study in case of India to identify the fiscal INF in an asymmetric configuration. The authors applied a NARDL model, given by Shin et al. (2014) to examine the existence of any cointegrating relationship in an asymmetric paradigm. Second, the nature of causality between fiscal deficit and INF has been examined in a time domain and FD framework to portray precisely the casual interactions between these two variables in the short-run and long run. The study will, therefore, enrich the existing literature along the asymmetric lines.

This paper aims to examine the dynamic interactions between monetary and financial variables in the Indian context.

In this paper, the authors have applied a recently developed asymmetric autoregressive distributed lag (ARDL) model by Shin et al. (2014), for detecting nonlinearities focusing on the long-run and short-run asymmetries among economic variables.

The results point toward the presence of asymmetric reaction of stock prices to changes in interest rate and exchange rate in full sample, as well as in pre-crisis. However, no asymmetry was found in the post-crisis period. The results further suggest that tight monetary policies appear to retard the stock prices, more than easy monetary policies that stimulate them.

The findings of the study can be helpful in understanding the policy transmission mechanism through asset price channel.

To the best of the authors’ knowledge, this is the first study that examines the interactions between monetary and financial variables in the Indian context in an asymmetric framework. The findings of this study are quite interesting and are different from several existing studies in the literature.

This paper aims to scrutinize the asymmetric interactions between current account deficit and gross fiscal deficit in case of a growing and dynamically integrated economy, namely, India featured with high inequality and liquidity constraints. Two additional variables, trade-openness and output growth, are also incorporated into the analysis to assess their likely impact on the current account balance.

The study uses a recently developed non-linear autoregressive distributed lag model given by Shin et al. (2014) in its empirical examination. In addition, non-linear cumulative dynamic multipliers are used to understand the route between disequilibrium position of short-run and subsequent long-run equilibrium of the system.

The study confirms the long-run co-movements of current account deficit and gross fiscal deficit and therefore refutes the Ricardian Equivalence proposition and validates the twin-deficit hypothesis. But instead of a linear relationship of the kind examined in the previous studies, the two variables share asymmetric linkages – both in the short run and in the long run. The asymmetry indicates that positive changes are more influential than their negative counterparts in the short run, whereas in the long run, only the positive changes are found to alter the external balance statistically. The asymmetric impact of fiscal deficits on the current account balance of a country may arise due to its asymmetric impact on aggregate demand through consumption inflexibility (ratchet effect) and the existence of liquidity constraints. The other control variables used in the study are also found to have cointegration with the current account deficit, but the relationship is symmetrical in the long run, even though it is asymmetrical in the short run. The study finally uses the asymmetric cumulative dynamic multipliers to examine the route of asymmetries and adjustments over the course of time. The dynamic multipliers also confirm the results documented in the earlier part and therefore demonstrate their robustness.

The asymmetric results obtained in the study provide strong grounds to devise the policies adaptive to changing arenas in domestic and external sectors. Output growth, export promotion and import substitution, increasing integration and fiscal austerity are seen as helpful in achieving a desired (and growth conducive) external balance together with macroeconomic stability. The need for a prudent fiscal policy and avoidance of profligacy is indicated based on the asymmetric results to ward off any unfavorable impact of fiscal deficits on external account. To conduct a sound fiscal policy, the government needs to cut down unproductive consumption expenditure, raise tax revenues and should pay attention to distribution and trickle-down effects to avoid the adversity of high inequality and liquidity constraints in the economy. Moreover, to ameliorate the current account balance, policies aimed at increasing the real competitiveness through control of domestic price fluctuations and improvement in the quality of tradable goods and services (such as productive investments and technological advancements) should be adopted.

Work reported in the present paper is motivated by the fact that there is no study conducted so far in the Indian context which has analyzed the two deficits in a nonlinear framework. The authors have used a well-articulated nonlinear asymmetric technique to examine the relationship between two deficits when asymmetry is incorporated. This paper will, therefore, enrich the existing literature along the lines of asymmetric linkages. Moreover, the traverse of asymmetries and adjustments over the course of time highlights the inherent dynamism of the relationship.

The objective of this paper is to investigate the effect of working capital efficiency (WCE) and its components on the composite financial performance of a sample of Indian firms.

Our sample includes 796 non-financial listed firms from 2015–16 to 2021–22. Sample firms’ profitability, liquidity, solvency, cash flow management, and financial and operational leverage have been used to classify them into companies with high composite financial performance (HCFP) and with low composite financial performance (LCFP) by using K-Means Clustering technique. A composite financial performance score (CFPS) of 1 has been assigned to HCFP and 0 to LCFP. We have used logistic regression models with fixed effect to estimate the effect of cash conversion cycle (CCC) and its components, i.e. inventory days, accounts receivable days and accounts payable days on CFPS in the presence of control variables such as growth, leverage, firm size, and age.

The study finds that CCC and inventory days are inversely associated with CFPS. This finding shows that the firms’ WCE leads to superior financial performance on a composite basis.

The research findings are based on samples drawn from the population of the listed Indian non-financial companies. Since the operation, financial practices, working capital policies, and management styles of firms vary greatly among nations, the results of this study should be extended to firms in other countries after taking into account the degree of resemblance to the sample firms.

The findings of this study hold significant value for industry practitioners, as they provide guidance in determining the optimal allocation of funds for working capital and devising strategies for effectively managing inventory levels, credit sales, and vendor payments in order to increase the overall value of the company. This study aims to help investors in building their investment portfolios by identifying companies with superior composite financial performance. Investors can enhance the construction of their investment portfolios by strategically selecting companies that demonstrate superior overall performance.

The results of our study will help companies improve their WCM strategies to enhance their overall value, and their significance increases manifold during economic downturns. Business firms that perform well by efficiently managing their working capital have a multiplier effect on the economy and society at large in the form of GDP contribution, labor income, taxes to the government, investment in capital assets, and payments to suppliers.

To understand the impact of WCE on firms’ performance, the extant working capital literature focuses on some specific characteristics such as profitability, valuation, solvency, and liquidity. The limitation of employing a single parameter is its inability to present the comprehensive performance evaluation of firms. This study is among the earliest studies that focus on the holistic evaluation of WCE's impact on the composite performance of a company.

In computer application scenario, data mining task is rarely utilized in power system, as an enhanced part, this work presented data mining task in power systems, to overcome frequency deviation issues. Load frequency control (LFC) is a primary challenging problem in an interconnected multi-area power system.

This paper adopts lion algorithm (LA) for the LFC of two area multi-source interconnected power systems. The LA calculates the optimal gains of the fractional order PI (FOPI) controller and hence the proposed LA-based FOPI controller (LFOPI) is developed.

For the performance analysis, the proposed algorithm compared with various algorithm is given as, 80.6% lesser than the FOPI algorithm, 2.5% lesser than the GWO algorithm, 2.5% lesser than the HSA algorithm, 4.7% lesser than the BBO algorithm, 1.6% lesser than PSO algorithm and 80.6% lesser than the GA algorithm.

The LFOPI controller is the proposed controlling method, which is nothing but the FOPI controller that gets the optimal gain using the LA. This method produces better performance in terms of converging behavior, optimization of controller gain, transient profile and steady-state response.

The paper investigates the effects of climate change along with ecological and carbon footprint on rice crop production in India during 1982–2016.

The autoregressive distributed lag (ARDL), canonical cointegration regression (CCR) and fully modified ordinary least square (FMOLS) models are used in the paper.

A long-run relationship is found between climate change and rice production in India. Results report that ecological footprint and carbon footprint spur long-term rice production. While rainfall boosts rice crop productivity in the short term, it has a negative long-term impact. Further, the findings of ARDL models are validated by other cointegration models, i.e., the FMOLS and CCR models.

This study provides insights into the role of ecological footprint and carbon footprint along with climate variables in relation to rice production.

In the literature, the effects of ecological and carbon footprint on rice production are missing. Therefore, this is the first study to empirically examine the impact of climate change along with ecological footprint and carbon footprint on rice production in India.

The Multi-Stakeholder Recommendation System learns consumer and producer preferences to make fair and balanced recommendations. Exclusive consumer-focused studies have improved the recommendation accuracy but lack in addressing producers' priorities for promoting their diverse items to target consumers, resulting in minimal utility gain for producers. These techniques also neglect latent and implicit stakeholders' preferences across item categories. Hence, this study proposes a personalized diversity-based optimized multi-stakeholder recommendation system by developing the deep learning-based diversity personalization model and establishing the trade-off relationship among stakeholders.

The proposed methodology develops the deep autoencoder-based diversity personalization model to investigate the producers' latent interest in diversity. Next, this work builds the personalized diversity-based objective function by evaluating the diversity distribution of producers' preferences in different item categories. Next, this work builds the multi-stakeholder, multi-objective evolutionary algorithm to establish the accuracy-diversity trade-off among stakeholders.

The experimental and evaluation results over the Movie Lens 100K and 1M datasets demonstrate that the proposed models achieve the minimum average improvement of 40.81 and 32.67% over producers' utility and maximum improvement of 7.74 and 9.75% over the consumers' utility and successfully deliver the trade-off recommendations.

The proposed algorithm for measuring and personalizing producers' diversity-based preferences improves producers' exposure and reach to various users. Additionally, the trade-off recommendation solution generated by the proposed model ensures a balanced enhancement in both consumer and producer utilities.

Wire electric discharge machining (WEDM) is a non-conventional machining process, which is used to provide difficult and intricate shapes. The purpose of this research work is to apply Taguchi’s technique to optimize the process parameters in WEDM. Alloy steel 20MnCr5 has been selected as base material for experimentation. The effects of the input process parameters such as wire type, pulse-on time, pulse-off time, peak current, wire feed rate and servo voltage have been calculated on the material removal rate (MRR) and surface roughness (Ra) in WEDM operation.

In the research work, Taguchi's technique is applied to optimize the process parameters in WEDM.

ANOVA indicated that pulse-off time was the most significant factor for the MRR, and servo voltage was the most significant factor for surface roughness (SR). As a part of the project, 20MnCr5 was machined in wire electric discharge machine, and the optimal control parameters were found to get higher MRR and better SR using Taguchi’s technique.

To the best of authors’ knowledge, after reviewing the literature, materials including alloys of metals such as 16MnCr5 and 20MnCr5 have not been investigated so far, and research regarding machining of these materials is limited. Therefore, 20MnCr5 material has been selected for this research work to generate WEDM data.