Adverse selection and moral hazard Adverse selection and moral hazard are two important concepts in economics, particularly in the field of information economics. Both concepts deal with situations where information asymmetry exists between different parties involved in an economic transaction, leading to suboptimal outcomes. Adverse Selection:...
Tobin's Q theory, named after the Nobel laureate economist James Tobin, is a concept in economics that relates to the valuation of a company or a firm. It is a measure used to assess whether a firm is overvalued or undervalued in the stock market. Tobin's...
The St. Petersburg Paradox is a classic problem in economics that challenges traditional theories of utility and decision-making. It is named after the city of St. Petersburg, Russia, where the paradox was first introduced by the mathematician Daniel Bernoulli in 1738. The paradox revolves around a...
Prabhat Patnaik December 14, 2020 In the context of the on-going country-wide kisan movement for repealing Modi’s three Agriculture Bills, while an overwhelming majority of commentators have stood with the position taken by the kisans, a few, though not necessarily agreeing with Modi, have raised the question: why shouldn’t agriculture...
Prabhat Patnaik The two bills rammed through parliament last week were objectionable in every conceivable sense. The very fact of their being rammed through the Rajya Sabha, without being put to vote despite demands for a division, was grossly anti-democratic. The fact of the Centre making...
ECONOMIC GROWTH AND DEVELOPMENT Economic Growth implies the change in per capita income, while economic development means economic growth plus change. Change here may be welfare changes or distributional changes. Features of Modern Economic Growth; given by Kuznets:1. High rates of growth per capita product (10 times) and...
DETERMINATION OF OUTPUT AND EMPLOYMENT 1. Classicals: The terms ‘Classicals’ was coined by Karl Marx. According to them, the economy will always be in a state of full employment, and any deviations from the equilibrium would be restored automatically through market mechanism.assumptions of the classical theory :-1. Full...
CONCEPT OF DEMAND The concept of demand was given by Alfred Marshall in 1890s in his book “Principles of Economics”. According to him, the demand can be represented by following words: 1. Desire 2. Willingness 3. Ability to pay for the commodity 4. Price of the commodity 5. TimeLaw of Demand The law of...
Anis Chowdhury and Jomo Kwame Sundaram Meeting the President of the Republic of Korea in September 2019, President Donald J Trump bragged that the “US economy is the envy of the world”. Trump reiterated such claims in his State of the Union address in early February, hailing his own policies...
India’s overall exports (Merchandise and Services combined) in April-May 2019-20* are estimated to be USD 92.33billion, exhibiting a positive growth of 4.32per cent over the same period last year. Overall imports in April-May 2019-20* are estimated to be USD 109.75billion, exhibiting a positive growth of...