Intergenerational mobility and macroeconomic history dependence

A large literature on ‘endogenous inequality’ has argued that persistent differences in macroeconomic performance across countries can be explained by historical inequality, owing to indivisibilities in occupational choice and borrowing constraints. These models are characterized by homogenous agents, a continuum of steady states (SSs) and lack of mobility in every SS. We show that introducing (even a little) heterogeneity in order to generate SS mobility shrinks the SS set dramatically. Mobile SSs are generically locally unique and finite in number. Sufficient conditions for global uniqueness and convergence of competitive equilibrium dynamics are provided.     

Benchmarking in two price financial markets

No arbitrage for two price economies with no locally risk free asset implies that suitably benchmarked prices are nonlinear martingales. However, both the benchmarking asset and the measure change depend on the process being benchmarked. Further assumptions allow the nonlinear martingales in discrete time to become expectations with respect to a nonadditivity probability. Such nonlinear expectations are imminently reasonable given the lack of experience with tail events on both sides of the gain loss spectrum. Continuous time extensions employ measure distortions. The general valuation of economic activities and the leveraging of stability in benchmarked price processes is then addressed. Traditional asset pricing questions and investigations are then reopened for benchmarked prices. In particular, the analytics for benchmarked option pricing and the asset pricing theory for benchmarked prices in a limiting stationary state are developed.     

South Asia's Integration with the Rest of Asia: a survey

While there can be unforeseen difficulties, developments of the recent past point to the gradual integration of South Asia with the dynamic economies of East and Southeast Asia. Two modes of integration have been taking place: the expansion of existing subregional free trade agreements and ASEAN's initiatives as a bridge between the regional groups of Asian economies. While the present endeavours of these economies are resulting in a shallow form of integration—which may not suddenly turn towards deep integration—onward movement along the same path is certainly possible.     

GLOBALISATION AND AN EMERGING GLOBAL MIDDLE CLASS

Globalisation has expanded the size of the global middle class. This expansion will change consumption patterns and shift the balance of spending power to middle-income economies. Rapid growth rates of the middle class in China and India have played a decisive role in creating the middle-income bulge. By 2030 the global middle class has been projected to grow to two billion. It is of note that a large middle class was also created during the first era of globalisation.     

Votes,Parties and Seats : A Quantitative Analysis of Indian Parliamentary Elections, 1962–2014 by Vani Kant Borooah

Journal of Quantitative Economics -     

VALUING AND ACCOUNTING FOR LOAN GUARANTEES

To achieve certain policy objectives, governments frequentlyprovide private borrowers with loan guarantees that cover someor all of the risk that the borrower will be unable to repaythe loan. Such guarantees are extremely valuable, and theirvalue increases with the riskiness of the underlying asset orcredit, the size of the investment, and the duration of theloan. The flip side of a guarantee's value to a lender is itscost to the government. Such a cost is not explicit but is realnevertheless. When providing guarantees, governments thereforemust establish accounting, valuation, and risk-sharing mechanisms.This article describes methods of valuing guarantees; reportsestimates of the value of guarantees in different settings;and summarizes new methods of accounting designed to anticipatelosses, create reserves, and channel funds through transparentaccounts to ensure that the costs of guarantees are evidentto government decisionmakers.      

Tax Administration Reform and Taxpayer Compliance in India

This paper evaluates effects on tax compliance of simple reforms in personnel policy in the Indian income tax administration. Taxpayers voluntarily disclosing higher incomes are currently assigned to special assessment units. To avoid this, high income taxpayers have an added incentive to understate their incomes. Empirical evidence consistent with this hypothesis is found. It explains spillover effects of enforcement efforts across assessment units. We incorporate these spillovers in estimating revenue effects of increased support staff. The results imply significant compliance gains would accrue from expanded staff employment and changes in assignment procedures for staff and taxpayers.     

Subgame perfect implementation: A necessary and almost sufficient condition

We present a necessary and almost sufficient condition for subgame perfect implementation of social choice correspondences. In societies with at least three individuals, any social choice correspondence which satisfies no veto power and our necessary Condition α is subgame perfect implementable. Thus Condition α is analogous to monotonicity which, by Maskin's celebrated characterization, is necessary and, in a similar way, almost sufficient for Nash implementation.