Dimensions of Economic Theory and Policy

What is the role of human capital in the regional location of the software industry? Why did policy rate cuts in India not lead to a rapid lowering of the banks' lending rates in the context of the financial crises? How does women's education impact on patrilocal marriage and cultural norms? What is the impact of the quality of teachers on the growth process in a small economy with a universal public education system? This volume engages with various such topical issues through an innovative use of theory and quantitative tools. The essays underline the significance of economic policy having sound theoretical moorings. With an interesting mix of topics that have gained importance in the economics discourse in recent times alongside the more classical issues, the volume is divided into three broad themes: (i) general equilibrium, macroeconomics, and dynamic modelling in economics; (ii) applications of game theory to economics and information economics; and (iii) applications of theory to policymaking. The topics covered in Part I include Markov processes, general equilibrium under uncertainty, wealth effects and macroeconomics, aspects of economic growth, and applications of dynamic modelling to forest management and international trade. Part II analyses efficiency wages, collusion in oligopolies, cartels in international competition, price competition in a mixed duopoly, strategic aspects of liability rules, and liquidity preference. Part III provides a rigorous analysis of some socio-economic problems of India.