ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Road Rationing and Economic Gains

The Delhi government's move to allow only alternate use of cars with odd and even registration numbers from 1 January 2016 is a step in the right direction. However, even as such command and control measures will be difficult to sustain, the gains made from these measures will only wane over time. Long-term measures with strong economic incentives to ensure favourable outcomes are imperative for better quality of air and environment. This involves strengthening public transportation systems.

Road Rationing and Economic Gains

The Delhi government’s move to allow only alternate use of cars with odd and even registration numbers from 1 January 2016 is a step in the right direction. However, even as such command and control measures will be difficult to sustain, the gains made from these measures will only wane over time. What are needed are long-term measures with strong economic incentives to ensure favourable outcomes for better quality of air and environment—indeed this involves strengthening public transportations systems.

Total Factor Productivity Growth in Developing Economies

Management of total factor productivity in developing economies remains, by and large, an unresolved problem despite industrialisation through efficient resource-use becoming a major objective of the economic reform programme. The present study attempts to open a solution channel by considering TFPG as a result of interaction between economies of scale and technical change. Thus, it seeks to lay emphasis on proper management of scale economies and technical change for producing a desired TFPG. For that purpose, estimation of TFPG is carried out with the help of translog cost function, which gives information on these two components simultaneously. The empirical findings of the exercise on data of aggregate manufacturing sector and eight selected industries of India indicate that both scale economies and technical change have registered a declining trend in recent years producing in the process a declining TFPG. There exists, therefore, a good case for prescribing policy measures that lead to better exploitation of economies of scale and technical change in India.

Fluctuating Total Factor Productivity in India-Evidence from Selected Polluting Industries

Evidence from Selected Polluting Industries Gopinath Pradhan Kaustuva Barik While re-examining the growth path followed by total factor productivity (TFP) in the Indian manufacturing sector, keeping in view the conflicting inferences drawn by recent studies, this paper attempts to take into account some of the theoretical as welt as empirical issues that seem to have been overlooked by the Indian studies. On finding through a statistical test that primary and intermediate inputs are not separable in the production function, the present analysis proceeds with an estimation of TFP on the basis of output in place of the usually preferred variable 'value added1 in the Indian studies. As a fall-out of such a step, the growth recorded by TFP is found to have a positive trend with a marked deceleration during the 1980s, Such a result, therefore, enabled the study to come up with a conclusion that there was no 'turn around' in TFP growth during the 1980s as has been pointed out recently. Extending the TFP estimation to a selected set of industries, identified by the Central Pollution Control Board, New Delhi, to be amongst the most polluting ones, it has been found difficult to substantiate either the claim of a turn around in the growth path of TFP during the 1980s or the option of value added as an appropriate choice for its estimation in the Indian industrial sector. An important finding of the present exercise is one of TFP in India following a fluctuating growth path.
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