The purpose of this paper is to develop a political‐economy model to show how political imperatives lead to reforms in administering direct tax collection.
Abstract
Purpose
The purpose of this paper is to develop a political‐economy model to show how political imperatives lead to reforms in administering direct tax collection.
Design/methodology/approach
A static, political‐gain approach was used to model employment in the tax collection sector and then the implications of an increase in revenue pressure were derived through a comparative statics method.
Findings
As revenue pressure increases, the “political value” in terms of granting employment falls and thus efficiency resulting from purely political motives decreases.
Originality/value
This paper is an original work.
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Satya P. Das and Anuradha Saha
This paper aims to understand the impact of land acquisition and the provision of rehabilitation and remuneration (R & R) transfers included in it, toward the short-run and…
Abstract
Purpose
This paper aims to understand the impact of land acquisition and the provision of rehabilitation and remuneration (R & R) transfers included in it, toward the short-run and the long-run growth of an economy as well as on the welfare of farmers and industrialists over time.
Design/methodology/approach
The authors develop a two-sector model of growth with agriculture and manufacturing in which land is an essential input to production in both sectors. Industrialists buy land from farmers and deals include R & R payments. Individuals live for one period and at its end, bequeath land and capital assets to their child. There is Hicks-neutral technical progress in each sector.
Findings
The R & R policy has no effect on the long-run sectoral growth or land allocation. While such a policy benefits the farmers initially, after a certain period, it reduces their welfare. The R & R scheme makes the industrialist worse-off in all periods. It was found that besides the standard convergence effect, land acquisition by the industrial sector increases the growth rate of capital. This may lead to non-monotonic growth rate of capital.
Research limitations/implications
The two-sector model abstracts from labor and labor markets. Hence, sectoral employment mobility or changes in the skill-wage premium over time are not captured.
Originality/value
First, this paper developed a two-sector growth model with land as a factor of production and an asset. Second, it examined growth and distributive impacts of the R & R package embodied in land transactions.
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Jaideep Roy and Prabal Roy Chowdhury
In a global environment where terrorist organisations based in a poor country target a rich nation, this paper aims to study the properties of a dynamically incentive compatible…
Abstract
Purpose
In a global environment where terrorist organisations based in a poor country target a rich nation, this paper aims to study the properties of a dynamically incentive compatible contract designed by the target nation that involves joint counter-terror tasks with costly participation by each country. The counter-terror operations are however subject to ex post moral hazard, so that to incentivise counter-terror, the rich country supplies developmental aid. Development aid also helps avoid unrest arising from counter-terror activities in the target nation. However, aid itself can be diverted to non-developmental projects, generating a novel interlinked moral hazard problem spanning both tasks and rewards.
Design/methodology/approach
The authors use a dynamic model where the aid giving countries and aid receiving countries behave strategically. Then they solve for the sub game perfect Nash equilibrium of this game.
Findings
The authors characterise the optimal contract, showing that the dynamic structure of counter-terror resembles the shock-and-awe discussed by military strategists. The authors then prove that it is not necessarily the case that a more hawkish (resp. altruistic) donor is less pro-development (resp. softer on terror). In addition, the authors show that it may be easier to contract for higher counter-terror inputs when the recipient is more sympathetic to terrorists. The authors also discuss other problems faced by developing nations where this model can be readily adopted and the results can endorse appealing policy implications.
Originality/value
The authors characterise the optimal contract, showing that the dynamic structure of counter-terror resembles the shock-and-awe discussed by military strategists. It is proved that it is not necessarily the case that a more hawkish (resp. altruistic) donor is less pro-development (resp. softer on terror). In addition, the authors show that it may be easier to contract for higher counter-terror inputs when the recipient is more sympathetic to terrorists. Other problems faced by developing nations are also discussed where this model can be readily adopted, and the results can endorse appealing policy implications. These results have important policy implications, in particular in today’s world.
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The present paper aims to highlight how manufacturing expansions under conditions of increasing returns, which involve the growth of intermediate goods specializations, support…
Abstract
Purpose
The present paper aims to highlight how manufacturing expansions under conditions of increasing returns, which involve the growth of intermediate goods specializations, support advanced service employment. In addition, the increasing use of manufacturing products in services highlights additional, new service sector employment opportunities.
Design/methodology/approach
This paper investigates (1) the manufacturing and service interactions and (2) the investment behaviour in manufacturing using Auto-Regressive Distributed lags (ARDL) and Vector Autoregressive (VAR) models. The models allow for different specifications to study whether investment behaviour in manufacturing supports dynamic manufacturing and service interactions.
Findings
The results underpin how Kaldorian manufacturing as an engine of growth is still relevant in Indian growth and is key to achieving higher advanced employment, export-orientation and services and manufacturing nexus outcomes. What matters, though, is that manufacturing investments are to be guided mainly by intermediate goods specializations. The slowdown of these specializations, explaining the slowdown of manufacturing investment, is therefore, a concern.
Originality/value
A reinterpretation of manufacturing as an engine of growth in which primacy is given to investment behaviour in technical progress functions that can support the growth of specializations in manufacturing and such specialized service employment.
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Bhavisha P. Sheth, Satya Ranjan Acharya and S.B. Sareen
Scientific innovation has resulted in the development of newer technologies for the betterment of humankind. Academic and research organizations are the places where these…
Abstract
Purpose
Scientific innovation has resulted in the development of newer technologies for the betterment of humankind. Academic and research organizations are the places where these technologies are actually ideated and/or invented. However, the process of technology transfer and its eventual successful commercialization covers many other facets, in addition to the scientific research alone. This study aims to draw attention towards certain policy gaps and thereby suggest plausible solutions for the improvement of technology transfer process in the Indian context.
Design/methodology/approach
Here, the authors present an extensive Web survey of technologies available for transfer/commercialization in 12 major Indian research organizations, namely, Indian Council of Agricultural Research (ICAR), Indian Council of Medical Research, Council of Scientific and Industrial Research, Defence Research and Development Organisation, Department of Atomic Energy, Department of Biotechnology, Indian Space Research Organisation, Indian Institute of Technology (IIT) Bombay, Indian Institute of Science Bangalore, IIT Delhi, IIT Kharagpur and IIT Kanpur.
Findings
A total of 2,921 technologies were found to be available with respect to the above-mentioned organizations, with the highest of these in agricultural sciences and the maximum reported by ICAR.
Research limitations/implications
Certain significant policy interventions of this study include the need of a central framework for deposition, management and dissemination of institutionally developed technologies. More attention and support is required for the technologically less developed research areas, and there is a need for the promotion of funding mechanisms for the prototype development, in addition to the already available funding schemes for other stages of technology commercialization.
Practical implications
Hence, the successful commercialization of the innovation from the Indian research labs requires the restructuring of the existing policies to eventually facilitate the economic growth of the nation.
Originality/value
This study discusses the major policy gaps of the Indian technology transfer process. For this, an extensive Web survey was carried out to enlist the various technologies available for transfer and commercialization in India from 12 major research organizations. The study presents the results and some major policy implications of the technology transfer and commercialization process in the Indian context.