Decomposition of Technological Change and Factor Bias in Indian Power Sector: An Unbalanced Panel Data Approach

Technological change and factor bias in the Indian power sector are analyzed using a translog cost function. Various components of technological progress and factor bias are identified and estimated, using a 21 year unbalanced panel data of Indian states and union territories. Heterogeneity across states is incorporated in the model using a variance component model. Appropriate corrections are made for unbalanced panel data. Empirical results show that the annual average rate of technological progress has been 2.4% for the country as a whole. Accumulation of knowledge and increasing scale are found to be the major factors contributing to technological progress. In contrast, the effects of factor price changes and fixed capital accumulation on technological progress have been unfavorable. Pure factor bias measure indicate saving in the use of fuel and labor, and increased use of materials. Tests are performed to check the curvature properties of the underlying technology.     

The new urban landscape: Developers and edge cities

In this paper we model the decisions of an edge city developer who chooses business district capacity and location strategically to maximize profits. The developer competes against a core city with historically given downtown capacity for employment and, implicitly, residential population. Moving nearer the core city enhances production efficiency by increasing the efficiency of the exchange of information between businesses in the core and edge city. On the other hand, it increases typical residential rents and commuting costs (and hence wages demanded by employees) and weakens the developer's local monopsony power. The developer's choice of location and capacity play out in a complex but fascinating fashion, depending on the historical capacity of the downtown.     

Competitive strategy in remanufacturing and the impact of take-back laws

This paper examines the impact of take-back laws within a manufacturer/remanufacturer competitive framework. Take-back laws require that firms take responsibility for the collection/disposal costs of their products. We consider two alternative implementations of take-back laws that are distinguished by the degree of control that the manufacturer has on returns sold to the remanufacturer. In one implementation, known as collective WEEE take-back, the manufacturer has no control over returns sold to the remanufacturer. The other implementation, known as individual WEEE take-back, gives complete control to the manufacturer.We develop a general two-period model to investigate questions of interest to policy-makers in government and managers in industry. Our results suggest that, in some settings, enactment of collective WEEE take-back will result in higher manufacturer and remanufacturer profits while simultaneously spurring remanufacturing activity and reducing the tax burden on society. A negative effect is higher consumer prices in the market. In other settings, we find that collective WEEE take-back introduces a structural change to the industry—creating an environment where remanufacturing becomes profitable when it is not profitable without a take-back law. With respect to individual WEEE take-back, we find that the manufacturer often benefits from allowing the remanufacturer to enter the market, though from a government policy-maker perspective, there are clear risks of monopolistic behavior.     

Information content of IPO grading

In the year 2007, Indian capital market regulator-SEBI, introduced a unique certification mechanism for IPOs whereby all IPOs have to undergo mandatory quality grading by independent rating agencies. In this paper we argue that such objective, independent and exogenous certifying mechanism provides a better opportunity to test the well established certification hypothesis, especially in the context of emerging markets with institutional voids. Using a sample of 163 Indian IPOs we test the efficacy of IPO grading mechanism. We find, grading decreases IPO underpricing and positively influences demand of retail investors. Grading reduces secondary market risk and improves liquidity. However, grading does not affect long run performance of the IPOs. IPO grading successfully capture firm size, business group affiliation and firm’s quality of corporate governance. Our findings imply that, in emerging markets, regulator’s role to signal the quality of an IPO contributes towards the market welfare.     

Warranty as a Signal of Quality: The Moderating Effect of Consumer Knowledge on Quality Evaluations

Prior research has shown that consumers use warranties as a signal of quality. This article explores whether prior knowledge moderates consumers' utilization of warranty information in evaluating product quality. In particular, we examine how prior knowledge impacts the relative use of warranty information when consumers are already aware of firm reputation. Indeed, we find that the extent to which warranty information is used in quality evaluations varies with prior knowledge. We report the results of two experiments, which somewhat surprisingly suggest that, for experts, a better warranty leads to perceptions of higher quality, regardless of firm reputation. Novices on the other hand, tend to perceive a better warranty as a signal of higher quality only when the firm is reputable but not when its reputation is low.     

Can the built environment explain gender gap in cycling? An exploration of university students' travel behavior in Toronto,Canada

The benefits of cycling as a healthier and more sustainable transportation alternative to private automobile is emphasized in both literature and policy. One key policy challenge in improving cycling rates is the significant gender gap in cycling that exists across urban regions in North America. In this study, travel behavior of >10,000 students attending four universities in Toronto, Canada, was analyzed to explore gender-based differences in cycling uptake. The mode share for cycling was higher for non-commute trips (9%) when compared to commuting trips to universities (7.6%). In addition, men had higher cycling rates than women, for both commute and non-commute trips. Results from binomial logistic regression models indicate that the built environment-related correlates were different between male and female students, and between commute and non-commute trips. Access to bicycle lanes or cycle tracks was found to increase the odds of female commuter cycling. This effect, however, was moderate in the neighborhoods with higher land use mix. Further, high-speed traffic was a significant barrier to cycling among female commuters. Noticeably, our analysis did not find major gender-based differences in the coefficients relating to travel attitudes and preferences. The findings provide a Canadian comparison to the limited international research on this topic, as well as offer new insights particularly relating to cycling for non-commute trips. The results identify potential avenues for policy intervention regarding the promotion of healthy and sustainable travel behavior among post-secondary students, and more broadly, the millennial generation.     

INFORMAL SECTOR, NETWORKS AND INTRA-CITY VARIATIONS IN ACTIVITIES: FINDINGS FROM DELHI SLUMS

Based on a micro-survey of around 800 slum households in Delhi this paper highlights the role of networks in accessing jobs in the urban labor market. Primarily three types of networks have been identified, which operate through kinship bonds, caste and ethnicity bonds, and formal channels like NGOs and employment exchanges. The type of networks used seems to vary across occupations. Based on a multinomial logit model the paper notes that given the differences in the nature of economic activities performed in different parts of the city, factors like networks and the urge to reside near the contact person and the work place make the urban labor market highly segmented. Hence, certain pockets within the city tend to get crowded by the growth of slums, and secondly inter-spatial variations in terms of activities/occupations make slum population in the city a heterogeneous set, and thus their problems and need vary substantially. Hence, any uniform policy for clusters located in different zones may not be able to tackle effectively the problems of slum dwellers in the city.