Functional income distribution and effective demand in India: An applied post Keynesian model

This article is an attempt to understand the relationship between functional income distribution and aggregate demand in India. To this end, the article (a) highlights trends in growth and class distribution of income in India; (b) constructs a post Keynesian macro model that links short run growth with profit share, where the latter is itself driven by movements in output and real exchange rate; (c) discusses and, wherever required, estimates key parameters relevant to the Indian case; and (d) simulates the model and discusses the effect of shocks to distributive as well as autonomous demand variables on growth performance. The article finds that, although a possibility of wage-led growth in India cannot be ruled out, by and large, distributive shocks do not have a strong impact on output growth. On the other hand, an increase in public expenditure growth, although it has a strong effect on output growth, tilts income distribution toward profit earners. A comprehensive agenda involving greater public expenditure and higher wages to stimulate growth and improve distribution is therefore recommended.     

口语测试理论的发展与应用

口语测试理论的发展既有理论基础,又有社会实践基础.它的发展经历了三代不同的测试体系,即科学前测试体系、结构主义测试体系和交际测试体系.直接型口试、间接型口试、半直接型口式是口语测试理论的具体应用.     

The Contractionary Short‐Run Effects of Nominal Devaluation in Developing Countries: Some Neglected Nuances

This article extends the model developed by Krugman and Taylor (1978 Krugman, P. and Taylor, L. 1978. Contractionary effects of devaluation. Journal of International Economics, : 445–56. [Crossref], [Web of Science ®] [Google Scholar]) to take into account interesting features of the evolving structure of global trade. The growing presence of transnational production chains and differential pricing behaviour of exports destined for industrial and developing countries are accommodated. Individual country and panel data pass‐through estimates derived from several econometric approaches are provided to justify the latter extension. The likelihood of contractionary short‐run effects of devaluations is shown to be positively related to: 1) the proportion of a country’s exports destined for other developing countries; and 2) the presence of transnational corporations (TNCs) in either the export or home goods‐producing sector. Unlike the Krugman‐Taylor case, devaluation will generally have a contractionary impact even if: 1) trade is initially balanced; 2) consumption behaviour does not differ between wage and profit earners; and 3) the government sector has a high marginal propensity to consume in the short run. The resulting policy implications underline the need to take into account these increasingly important nuances of international trade while designing exchange rate policies for developing countries.     

Macroeconomics of directed credit reforms in India

This paper develops a theoretical framework to evaluate directed credit reforms in India. It formulates a post-Keynesian/structuralist macro model that incorporates key features of the Indian banking system. The model divides the economy into a demand constrained industrial sector and a credit constrained agricultural sector. The model shows that directed credit reforms tighten agricultural credit and output, erode real wages by increasing the agricultural price and reduce industrial demand. Inflation also picks up on account of real wage resistance. This paper, therefore, has a close affinity with existing accounts that warn against the stagflationary consequences of financial liberalisation.     

New structural economics meets European transition

This paper explores whether new structural economics, and more broadly Structuralist approaches, could add to our understanding of transition in Central and Eastern Europe – and ultimately asks whether new structural economics and transition economics might be extended or integrated into a dynamic model of structural transformation that could better account for this particular development experience and provide policy guidance for the future. We have presented three perspectives – new structural economics, transition economics and the Neo-Schumpetarian approach – all of them emphasising different aspects of structural transformation. Their relative explanatory power depends on the context – for example, the extent of distortions in the economy, the quality of the institutions and where a country finds itself relative to the world technology frontier – and the questions we are interested in understanding. We suggest that, to date, the Neo-Schumpetarian approach offers the most promising and persuasive story line to think about this difficult challenge.