nep-cwa New Economics Papers
on Central and Western Asia
Issue of 2009‒05‒02
six papers chosen by
Nurdilek Hacialioglu
Open University
  1. The Global Financial Crisis and Short-run Prospects for India By Raghbendra Jha
  2. Ricardo Meets China, India and U.S. Three Hundred Years Later By Yochanan Shachmurove; Uriel Spiegel
  3. Monetary Targeting in Pakistan: A Skeptical Note By Saqib, Omar F; Omer, Muhamad
  4. Pricing Rule in a Clock Auction By Peter Cramton; Pacharasut Sujarittanonta
  5. Nonlinear Dynamics in Welfare and the Evolution of World Inequality By Davide Fiaschi - Marzia Romanelli
  6. Financial Market Participation and the Developing Country Business Cycle By Huseyin Murat Ozbilgin
  1. By: Raghbendra Jha
    Abstract: This paper provides an overview of the impact of the global financial crisis (GFC) on the Indian economy. It identifies the channels through which the GFC has impacted the Indian economy and evaluates the stimulus packages that have been put in place by the government of India. Finally, the paper examines short run prospects for the Indian economy in light of the GFC and the economy's recent dynamism.
    Keywords: Global Financial crisis, Economic downturn, Stimulus packages, India
    JEL: E20 E66 F43 O11
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:pas:asarcc:2009-01&r=cwa
  2. By: Yochanan Shachmurove (Department of Economics, City College of The City University of New York and The Department of Economics, University of Pennsylvania); Uriel Spiegel (Department of Interdisciplinary Social Studies Bar Ilan University, and Department of Economics, University of Pennsylvania)
    Abstract: As our trading world becomes more globalized, who benefits and who gets hurt? This paper relies on the Ricardian model to explore the effects of technological improvements in underdeveloped countries on the welfare of developed countries. For example, trading between the United States and China, which has undergone a technological improvement in commodities which China imports and exports, may lead to different welfare implications for both countries. The paper models several scenarios to indicate and demonstrate the arguments for and against globalization. The findings suggest that certain policies should be implemented to maintain and enhance the competitiveness of developed countries.
    Keywords: International trade; Ricardian Model; Samuelson; Gainers and losers from trade; East-West trade; North-South Trade; China; India; United States; Outsourcing
    JEL: F0 F1 O O1 O3 D51
    Date: 2009–03–03
    URL: http://d.repec.org/n?u=RePEc:pen:papers:09-015&r=cwa
  3. By: Saqib, Omar F; Omer, Muhamad
    Abstract: The objective of this study is to evaluate monetary targeting strategy in Pakistan by testing the Quantity Theory of Money and the income velocity of money stated by Monetarists and the endogenous money hypothesis postulated by the Post Keynesians. Our tests on the Pakistani data covering about thirty years reveal that the quantity theory is an inadequate explanation of inflation, income velocity of money is unstable, and money is endogenous. These results suggest rethinking on monetary targeting strategy in Pakistan.
    Keywords: Monetary Targeting; QTM; Income Velocity of Money; Endogenous Money
    JEL: E58 E52 E5
    Date: 2008–06–05
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:14883&r=cwa
  4. By: Peter Cramton (Economics Department, University of Maryland); Pacharasut Sujarittanonta
    Abstract: We analyze a discrete clock auction with lowest-accepted bid (LAB) pricing and provisional winners, as adopted by India for its 3G spectrum auction. In a perfect Bayesian equilibrium, the provisional winner shades her bid while provisional losers do not. Such differential shading leads to inefficiency. The size of the inefficiency declines with smaller bid increments. An auction with highest-rejected bid (HRB) pricing and exit bids is strategically simple, has no bid shading, and is fully efficient. In addition, it has higher revenues than the LAB auction, assuming profit maximizing bidders. The bid shading in the LAB auction exposes bidders to the possibility of losing the auction at a price below the bidder's value. Thus, fear of losing may cause bidders in the LAB auction to bid more aggressively than predicted assuming profit-maximizing bidders. We extend the model by adding an anticipated loser's regret to the payoff function. Revenue from the LAB auction yields higher expected revenue than the HRB auction when bidders' fear of losing at profitable prices is sufficiently strong. This would provide one explanation why India, with an expressed objective of revenue maximization, adopted the LAB auction for its upcoming 3G spectrum auction, rather than the seemingly superior HRB auction.
    Keywords: Auctions, clock auctions, spectrum auctions, behavioral economics, market design
    JEL: D44 C78 L96
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:pcc:pccumd:09prca&r=cwa
  5. By: Davide Fiaschi - Marzia Romanelli
    Abstract: We propose a methodology to measure countries’ welfare based on the lifetime utility of individuals and apply it to a large sample of countries. In the period 1960-2000 welfare inequality across countries appears stable as the result of increasing inequality in per capita GDP and decreasing inequality in life expectancy. However, the estimated distribution dynamics of welfare points out the emergence of three clusters of countries in 2000: one composed by low-income and low-life expectancy countries (mainly sub-Saharan countries); one by low-income but medium life expectancy countries (most of the highly populated Asian and Latin American countries); and, finally, the last one by high-income and high-life expectancy countries (almost all OECD countries). Such tendencies to polarisation are expected to strengthen in the future. In terms of the world population distribution, from 1960 to 2000 welfare inequality has been decreasing as the result of the falling inequality of both per capita GDP and life expectancy; this fall is mostly explained by the outstanding performance of the highly populated countries, mainly China and India. However, the decreasing trend is expected to be reverted (at most stabilise) in the future. Finally, the estimated distribution dynamics of welfare shows the emergence of two clusters of population, already detected in the distribution of 2000; such polarisation dynamics is expected to further intensify in the future, with the possible emergence of a cluster of populations from sub-Saharan countries.
    Keywords: distribution of welfare, nonparametric methods, polarisation, distribution dynamics, inequality
    JEL: C13 D30 D63 O5
    Date: 2009–04–20
    URL: http://d.repec.org/n?u=RePEc:pie:dsedps:2009/81&r=cwa
  6. By: Huseyin Murat Ozbilgin
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:tcb:wpaper:0904&r=cwa
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