Indira Gandhi Institute of Development Research

About: Indira Gandhi Institute of Development Research is a facility organization based out in Mumbai, Maharashtra, India. It is known for research contribution in the topics: Monetary policy & Inflation. The organization has 307 authors who have published 1021 publications receiving 18848 citations.

A dynamic pricing approach to electricity prices in the Indian context

Abstract: In this paper, we study the mechanism of dynamic pricing of electricity and its opportunities in the Indian context. We compare the economic efficiency of dynamic pricing vis-a-vis the traditional flat tariff of electricity. We analyse various ways in which dynamic tariff can be introduced in the electricity market and we show the Indian experience in this regard. We consider the state of Maharashtra, in particular, to understand how the time of day (TOD) pricing system has been introduced and how it is more efficient than the flat tariff approach. We develop a mathematical model using pseudo-real data (as per the advice of a renowned sector expert) to show how TOD tariff is more efficient than flat tariff and how real-time pricing (RTP) tariff is associated with the uncertainty of electricity bills. We further emphasise how the dynamic pricing system can be modified to increase its efficiency.

Arranged marriage, education and dowry: A Contract-theoretic perspective

Abstract: This paper propounds a contract-theoretic model where dowry acts as a screening device to differentiate grooms of varying qualities. In 'arranged' marriage settings that are characterized by incomplete information in the sense that the true quality of the groom remains unobservable to the bride, and in the presence of observable traits like education that are easier for the better quality groom to achieve, education-dowry contracts can potentially serve as a screening instrument. Moreover, increasing dowry levels can be explained through increased educational attainments brought about by modernization and government policies. The paper also discusses historical and narrative evidences in support of its main hypotheses. [IGIDR WP-2014-006].

A Model for Integrated Procurement-production Systems

Abstract: In this paper, a multistage, single-product serial batch-production system is considered in which the demand is deterministic and cost factors, viz. inventory carrying, ordering, set-up, etc., are known. The objective is to minimize the total variable cost. A model is suggested which combines the purchasing policy of the raw materials and the production policy of the finished product. An experimental procedure is carried out to compare the model against a benchmark providing a lower bound for the total variable costs. The model is also compared with an instantaneous production-rate case. The results suggest that the model offers an interesting scope for heuristic procedures. The possible application domain of the model is also discussed.

Estimation and determinants of chronic poverty in India: An Alternative approach

Abstract: The chronically poor are generally identified using longitudinal household panel data on income or expenditure. The basic motivation for our approach is to overcome the absence of a nationally representative panel data in analysing chronic poverty issues. A household is identified as chronically poor if its income is below the poverty line and if its children are suffering from malnutrition for a longer period of time. Making use of a set of common variables available in two nationally representative surveys (that deal with the estimation of consumer expenditure and malnutrition), the incidence of chronic poverty is estimated among the different social groups and across the various states of India. The paper aims to improve our understanding of the determinants of chronic poverty by considering economic, demographic and social factors. It attempts to answer specific questions such as: how important is household income as a determinant of chronic poverty? What factors inhibit escape from chronic poverty? How different are the ‘other poor’ from the chronically poor? Demographic pressure, low wage rates for households offering labour in rural and urban areas, low household income, and social factors all have a significant impact on chronic poverty. Chronically poor households tend to be concentrated at the lower end of family lifecycle. The ‘other’ poor households may be able to move out of chronic poverty because of their small household size, as well as the more intensive use of labour, including child labour. While the wage rates of labour households do not show much difference between the chronic and other poor households, they are substantially higher for non-poor households. Hence, a higher wage rate is of paramount importance in lifting labour households from poverty. Improvement in household income is crucial for reducing the incidence of both chronic poverty and other poverty. A 10 percent increase in the per capita expenditure of chronically poor households would lift about one‑third of these families from chronic poverty and one-sixth of them from poverty. Roughly, a 60 percent increase in per capita expenditure would be required to lift all chronically poor households from poverty. This would be a stupendous task, considering the fact that in the 1990s per capita expenditure of the bottom 30 percent increased at 1.5 percent per annum.