Impact of MGNREGA on the livelihood security of rural poor in India: a study using national sample survey data

This paper studies the impact of the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGA) at the all-India level utilizing nationally representative data from the national sample survey (NSS). We propose an alternative methodology for the proper identification of target households in the baseline period using a secondary data source such as the NSS. The programme is assessed in terms of whether it has been successful in ensuring livelihood security for beneficiary households. The study found that the increase in spending capacity of non-beneficiary households was greater than MGNREGA beneficiary households. Moreover, the overall growth trend in spending capacity over time had a greater effect in improving the livelihood security of the target households than the estimated effect of the programme.     

Efficiency with costly information: a reinterpretation of evidence from managed portfolios

We investigate the informational efficiency of mutual fund performancefor the period 1965-84. Results are shown to be sensitive tothe measurement of performance chosen. We find that returnson S&P stocks, returns on non-S&P stocks, and returnson bonds are significant factors in performance assessment.Once we correct for the impact of non-S&P assets on mutualfund returns, we find that mutual funds do not earn returnsthat justify their information acquisition costs. This is consistentwith results for prior periods.     

GLOBALISATION: PAST AND PRESENT

This article compares and contrasts the two modern eras of globalisation, namely the one that started in the mid-nineteenth century and ended on the eve of World War I, and the contemporary era. Although in both periods globalisation brought down national barriers and integrated economies and societies, there were distinct characteristic features of both periods. For example, the scale of global integration through trade and financial channels during the contemporary era was unmatched by the previous phase of globalisation. Furthermore, never in history had global integration involved so many countries and people, both in absolute numbers and as a percentage of the global population.     

Accounting-based versus market-based cross-sectional models of CDS spreads

Models of financial distress rely primarily on accounting-based information (e.g. [Altman, E., 1968. Financial ratios, discriminant analysis and the prediction of corporate bankruptcy. Journal of Finance 23, 589–609; Ohlson, J., 1980. Financial ratios and the probabilistic prediction of bankruptcy. Journal of Accounting Research 19, 109–131]) or market-based information (e.g. [Merton, R.C., 1974. On the pricing of corporate debt: The risk structure of interest rates. Journal of Finance 29, 449–470]). In this paper, we provide evidence on the relative performance of these two classes of models. Using a sample of 2860 quarterly CDS spreads we find that a model of distress using accounting metrics performs comparably to market-based structural models of default. Moreover, a model using both sources of information performs better than either of the two models. Overall, our results suggest that both sources of information (accounting- and market-based) are complementary in pricing distress.     

Fiscal consolidation with high growth: A policy simulation model for India

In this paper a fiscal consolidation program for India has been presented based on a policy simulation model that enables us to examine the macroeconomic implications of alternative fiscal strategies, given certain assumptions about other macro policy choices and relevant exogenous factors. The model is then used to estimate the outcomes resulting from a possible strategy of fiscal consolidation in the base case. The exercise shows that it is possible to have fiscal consolidation while at the same time maintaining high GDP growth of around 8% or so. The strategy is to gradually bring down the revenue deficit to zero by 2014–15, while allowing a combined fiscal deficit for centre plus states of about 6% of GDP. This provides the space for substantial government capital expenditure, which translates to a significant public investment program. This in turn leads to high overall investment directly and indirectly, via the crowding in effect on private investment, which drives the high GDP growth. The exercise has also tested the robustness of this strategy under two alternative scenarios of higher and lower advanced country growth compared to the base case.     

Productivity and efficiency dynamics in Indian banking: An input distance function approach incorporating quality of inputs and outputs

Banking technology is typically characterized by multiple inputs and multiple outputs that are associated with various attributes, such as different types of deposits, loans, number of accounts, classes of employees and location of branches. These quality differentials in inputs and outputs are mostly ignored in empirical studies. These omissions make the practical value of productivity studies in organizations like banks questionable because quality is a key component of performance. This paper proposes using hedonic aggregator functions (as a tool of aggregating inputs and outputs with quality attributes) within an input distance function framework and analyzes the impact of banking deregulation on efficiency and total factor productivity (TFP) change in the Indian banking industry using panel data for the period 1996–2005. Empirical results indicate that banks have improved their efficiency (from 61% in 1996 to 72% in 2005) during the post‐deregulation period, and the gain in efficiency of state‐owned banks has surpassed that of private banks. Improvement in capital base, as indicated by increased capital adequacy ratio, played an important role in ushering efficiency gain. The return to scale estimate suggests that state‐owned banks are operating far above their efficient scale and cost savings can be obtained by reducing their size of operations. Overall, TFP growth was above 3.5% annually. Both technical progress and technical efficiency change consistently played an important role in shaping TFP growth. Copyright © 2010 John Wiley & Sons, Ltd.     

On someE-optimal block designs

Summary TheE-optimality of block designs is the concern of this paper. Bounds for the smallest positive eigenvalue of theC-matrix of block designs are obtained in some general classes of connected designs with equal or unequal block sizes. Use of these bounds is made to obtainE-optimal block designs in various classes.