Prabhat Patnaik The reduction in the corporate tax rate by the BJP government, which would entail a transfer of Rs.1.45 lakh crores from the public exchequer to the corporate sector, has been generally seen to be insufficient for overcoming the slowdown in the Indian economy. This...
Prabhat Patnaik On July 29 the terms of reference of the Fifteenth Finance Commission were suddenly modified by a Presidential order. The Commission is now being asked to examine whether a separate mechanism for financing expenditure on defence and internal security should be set up, and...
Anis Chowdhury and Jomo Kwame Sundaram Large transnational corporations (TNCs) are widely believed to be paying little tax. The ease with which they avoid tax and the declining corporate tax rates over the decades have deprived developing countries of much needed revenues besides undermining public faith...
Article Shared by The various traditional connoisseurs of trade theory belonging to different schools of thought such as those of Adam Smith, David Ricardo and Bertil Ohlin would at the end of the day whole-heartedly support a verdict, i.e., the verdict which asserts that each of...
Tejvan Pettinger An explanation of the difference between horizontal and vertical equity. Horizontal equity implies that we give the same treatment to people in an identical situation. E.g. if two people earn £15,000 they should both pay the same amount of income tax (e.g. £2,500). Horizontal equity makes...
Article Shared by The below mentioned article provides an overview on the models of technical change in economic growth. Subject-Matter: Technical progress plays an imperative role in influencing the pace of economic growth. It is the technical change which results in an increased output per unit labour. It...
Read this article to learn about the basic Kaldor’s model in neo-classical theory of economic growth. Introduction: It has been seen that the original Harrod-Domar model (hereafter, mentioned as H-D Model) is rigid, light, one sector and specific with respect to three parameters. A constant proportion...
In this note we will study Dependency theoriesNeoclassical Growth Model.Endogenous Growth Model.An a little on alternative model to sustainable development. Dependency Theories.During the 1970s, the international dependency theories viewed developing countries as beset by institutional, political and economical rigidities. Developing countries were caught up in a dependence...
Effects of slower economic growth Tejvan Pettinger Economic growth means an increase in national income/national output. If we have a slower rate of economic growth – living standards will increase at a slower rate. A Downward trend in economic growth in the Eurozone. For example, in the post-war period,...
C. P. Chandrasekahr and Jayati Ghosh One of the unusual features of the Indian economy relates to the banking sector, with bad loans of commercial banks becoming a serious problem, even at relatively low aggregate credit to GDP ratios by international standards. Figure 1 indicates that...