Tejvan Pettinger The broken window fallacy states that if money is spent on repairing the damage, it is a mistake to think this represents an increase in economic output and economic welfare. If money is spent on repairing a broken window, the opportunity cost is that...
C. P. Chandrasekhar September 25, 2019 In another instance of lack of clarity in economic decision making, the NDA government seems to be drifting into signing on to the Regional Comprehensive Economic Partnership (RCEP) Agreement potentially involving 16 Asia-Pacific partners. Under discussion for 7 years now, the...
Jomo Kwame Sundaram September 28, 2019 The United Nations (UN) Sustainable Development Goals (SDGs) can only be achieved by 2030 with the political will to change international economic rules and mobilize resources needed for a massive public sector-led investment push to reinvigorate world economic progress sustainably, says...
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...