Job-search and foreign capital inflow — A two sector general equilibrium analysis

The purpose of this paper is to extend the Fields' (1989) multi sector job-search model by introducing international trade and capital. Two types of capital are considered: fixed capital and mobile capital. The effects of search intensity and the inflow of foreign capital on the volume and the rate of urban unemployment and on the social welfare are also examined in both of the two cases. The main finding is: more efficient on-the-job search from the rural sector raises unemployment rate when capital is mobile between the two sectors. This is counterproductive to the standard result.     

Contracts payments for ecosystem services: the case of bio-pospecting

We examine the economics of royalties in bioprospecting contracts between a pharmaceutical and genetic resource supplier (local), with an eye to understanding the relative advantages of indexing royalty payments to gross revenue or net revenue. We show a risk-averse firm facing only production or only cost risks will index royalties to net revenue. When facing both types of risk, the choice of royalty type depends on the relative magnitudes of the production and cost risk. In each case, the risk-averse firm chooses the royalty type that shifts as much risk as possible to the local. When the local is risk neutral, the pharmaceutical's and local's preferences are compatible. If the local is risk averse and there is only one type of risk, it will prefer a gross revenue royalty, and shift as much risk as possible to the firm: here the local and firm preferences are compatible only if the firm is risk-neutral, Lastly, we show if the firm sets the terms of the contract, and both agents are risk averse, the firm will not likely volunteer to implement the socially optimal royalty arrangement as it prefers to shift as much risk to the local, who now also prefers a more certain return. This last outcome is at the heart of the benefit sharing discussion and suggests if risk sharing and equity are a concern in benefit sharing, then the choice of royalty type can be an important part of negotiations between pharmaceuticals and locals for the phytochemical from nature for new drug discovery.     

Estimating marginal external costs of transport in Delhi

This paper develops the model and methodology to estimate the marginal external cost of urban road transport, which is necessary for analysing optimal urban transport prices. Four major marginal external costs analysed in this paper include the marginal external costs for congestion, air pollution, road accidents and noise. The paper estimates the marginal external costs for cars and buses in peak and off-peak periods for Delhi urban agglomeration for the year 2005.     

Impact of Crop Diversification on Rural Poverty in Nepal

Crop diversification into high‐value crops (HVCs) can be an important strategy to augment income, generate employment, and reduce poverty in developing countries. We study the impact of crop diversification (share of production value obtained from the HVCs) on household (HH) welfare measures in Nepal. We use three rounds of the nationally representative Nepal Living Standard Surveys: NLSS I (1994/95), NLSS II (2004/05), and NLSS III (2010/11). The dose–response function, propensity score matching, and instrumental variable techniques are used to estimate the impact of crop diversification. Results show the positive impact of HVCs on the monthly per capita consumption expenditure and poverty outcomes. Among HVCs growers, HHs growing vegetables have the better welfare outcomes. While establishing the relationship between degree of agricultural diversity and poverty measures, we find that the marginal farmers need to at least derive 35% of the share of revenue from HVCs to escape from poverty.     

Estimating loss of ecosystem services due to paddy straw burning in North-west India

Crop residue burning is severe in rice–wheat cropping system of North-western states (Punjab, Haryana, Uttarakhand, and western Uttar Pradesh) of India, where mechanized harvesting of rice using combine harvesters is a common practice, and management of leftover residue in the short window of 10–15 days for timely sowing of wheat is a formidable task. Moreover, there is a lack of user-friendly, cost-effective, and economically viable options and, around 23 million tonnes of rice residue is burnt annually in the region. Burning biomass not only pollutes environment but also results in loss of appreciable amount of plant’s essential nutrients. Straw burning releases soot particles, nitrogen oxides, sulphur dioxide, carbon dioxide, carbon monoxide, and polycyclic aromatic hydrocarbons, thus causing serious deterioration in atmospheric quality and human health hazards. We attempted to identify and quantify the environmental cost of paddy straw burning in North-west India. Using extant coefficients, it is estimated that cost of paddy residue burning is INR (Indian National Rupee) 8953?per?ha, and the social cost of burning is INR 3199 crores per annum in the region.     

Consumer decision‐making styles and post purchase behaviour of poor for Fast Moving Consumer Goods

More than half of the world's population is poor. Certainly, their purchasing power cannot be compared with that of the riches, but it is their collective purchase potential which makes them a substantial market. The fast moving consumer goods (FMCGs), on the other hand, are the fourth largest industry in the world. FMCGs are relatively low cost products and the poor, by necessity, spend a significant amount of their income on FMCGs. So, by virtue of being a large consumer base for FMCGs, the poor are a promising market for the FMCG marketers. But little is known about their buying behaviour for FMCGs as only a few studies have been conducted on them in this regard. This study aims to explore their shopping orientations towards price, quality and brand for FMCGs in the context of one of the largest developing countries like India by exploring their consumer decision‐making styles (CDMSs), especially their price consciousness, quality consciousness, brand consciousness and brand loyalty. Besides it, it also explores their post purchase behaviour and testifies its mechanism with the above mentioned CDMSs in the present context through structured equation modelling.     

Identifying Customer Loyalty Supporting Factors in the Retail Banking Context: An Empirical Examination

This article aims to identify factors which support customer loyalty, either through dedication or by imposing constraints, and subsequently empirically analyzes the relationship between identified factors and the attitudinal and behavioral component of loyalty in the context of retail banking. Data collected from a sample of 293 retail banking customers have been analyzed through structural equation modeling. The study results suggested two constraint promoting factors and one dedication promoting factor which supported loyalty. The study contributes to knowledge by empirically testing the qualitative model and coming out with empirically proven dedication-promoting and constraint-promoting loyalty supporting factors.     

Willingness to Pay for Insured Loans in Northern Ghana

Index insurance has been heralded as a potential solution to risk management problems faced by smallholder farmers in developing countries. Despite its potential, demand for standalone index insurance contracts has remained low in early field trials. We investigate the willingness to pay for drought index insurance‐backed loans in northern Ghana using contingent valuation. We find that index insurance lowers overall demand for agricultural loans. We also compare micro‐level index insurance, provided directly to farmers, with meso‐level insurance, provided to the credit agency and find that farmers appear to prefer micro‐level insurance. Finally, farmers are willing to pay to avoid basis risk.