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3548 items in total found

Working Papers | 1987

The Decision Process of Individuals under Conditions of Risk: An Experimental Study

Samir K. Barua and Srinivasan G

Theoretical models in finance are many a time based on unrealistic assumptions about the behaviour of individuals. Empirical validation of the models is expected to vindicate the assumptions. However, in most situations, the approaches used for empirical validations suffer from serious limitations, either because of the nature of data used or because of the testing procedures used. Hence, the doubts about the underlying assumptions on individual behaviour remain unresolved. In this paper, an attempt has been made to study some common beliefs about behaviour of individuals in risky situations, through a controlled experiment. The results indicate that some oft-believed behavioural traits are indeed true, and the theories based on assumptions which are counter to these beliefs, need to be reconsidered.

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Working Papers | 1987

Investigation of Decision Criteria for Investment in Risky Assets

Samir K. Barua and Srinivasan G

This paper examines the empirical validity of stochastic dominance rules and the mean-variance framework by analysing data generated through an experiment on individual investment decisions under uncertainty. The analyses indicated that none of the two approaches provided adequate explanation for the observed pattern of choice. An alternate framework, based on preference for skewness, in addition to mean and variance, was examined. This framework provided a significantly better explanation compared to the two parameter framework. The preference for skewness was significant at higher levels of borrowing and at all levels of wealth.

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Working Papers | 1987

Male and Female Managers in United States and India: A Study of Change Agent Styles Personality Factors and Biographical Differences

Ottaway Richard N and Deepti Bhatnagar

This paper reports results of a study conducted to investigate the differences in male and female managers in America and India. Two samples were used, one male and one female, in each country. The samples were matched cross-culturally for comparability in age, education, and level of management in the company. The Indian data were collected from participants attending management development programmes at the Indian Institute of Management, Ahmedabad. The American data were collected from attendees at MBA programs (evening and weekend further education for practicing managers) in business schools in New Jersey. Three questionnaires were used for data collection. Hall and Williams Change Agent Questionnaire was used to collect data on change style. Personality data was collected on Cattell's Sixteen Personality Factor Questionnaire. The biographical questionnaires collected data on educational level, managerial level, age, salary, area of work, type of industry etc. Analysis of data showed the female managers to be significantly different from the male mangers. These differences were across all the three areas that were inveighed, namely, change agent styles, personality factors, and biographical characteristics. The female mangers used the credibility style of introducing change more often than the male managers. Female managers emerged as more hardworking, achievement-driven, having higher standards, experiencing greater conflict and being more hurting than their male counterparts. Female managers were younger, more educated and less paid than male mangers. A comparison of the American female managers with Indian female managers showed the former to be further behind the salary of male American managers than their Indian counterparts while being comparable in education and job status.

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Working Papers | 1987

Growth Variations Across Developing Countries: How Much and Why?

Gupta G S

The paper examines the extent and the causes of variations in economic growth across twenty-nine developing countries. The sample countries come from Asia, Africa, and South/Central America. It finds that while Brazil, Cameroon and Korea have witnessed a relatively higher growth rates; Chile, Ethiopia, Ghana, India, and Jamaica have experienced lower growth rates during the Sixties and Seventies. The principal factors responsible for varying performances are found to be the saving/investment rate, export, government expenditure, price distortions and multi-national corporations economic penetration rate. While the first three factors promote economic growth, the last two hamper it.

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Working Papers | 1987

Role and Conduct of Monetary Policy

Gupta G S

The paper contains the text of the lecture delivered by the author at a seminar organized by the Department of Economics, M.S.University, Baroda under its UGC Special Assistance Programme during December 20-21, 1986. It highlights the state of the art with regard to the role and conduct of monetary policy, and throws some light on this aspect for India. In particular, it argues that monetary policy is significant not only with regard to the price level and in the long-run, but also with respect to real GNP and in the short-run. Further, it supports whole-heartedly many of the recommendations of the Chakravarty Committee on the way the monetary policy should be conducted in India.

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Working Papers | 1987

Demand for Money: An Empirical Examination of Unsettled Issues for India

Gupta G S

The paper examines the unsettled issues on the demand for money function with a particular reference to India. It uses the annual time series data for the period 1954-55 through 1982-83. A special feature of the study is that it generates a uniform series on the narrow money concept (M1) for the whole sample period, and employs the same for empirical estimation and testing. The principal findings are: a. Both the narrow and wide concepts of money are well explained by the well-known and limited number of arguments in the money demand function. Thus, on this criterion, either definition of money is equally acceptable. b. Permanent income is more relevant than the measured income in the money demand function. c. The ratio of non-agricultural income to agricultural income was found to be irrelevant argument in the money demand function. This, in some sense, argues against the hypothesis of different money demand elasticities with respect to the two components of aggregate incoem. d. Short-term rate of interest has proved to be the relevant interest rate in the money demand function.

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Working Papers | 1987

A Project is a Compound - Not a Mixture: Conceptual Problems in Valuation

Ragunathan V and Srinivasan G

There is considerable literature in the field of finance concerning the valuation of negative cash flows. Consequently, it is widely held that a project should be valued by valuing each component of the project's cash inflows and outflows separately, either by discounting the cash flowing at appropriate RADRs or by using the certainty equivalent approach. This paper discusses the implicit inadequacies in using the above approach for project evaluation and recommends valuing the Net Cash Flow of the project either by using a single RADR or using the certainty equivalent framework.

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Working Papers | 1986

Ecology, Market Forces and Design of Resource Delivery Systems: Socio-Ecological Perspective

Anil K. Gupta

Neglect of Ecological (i.e. edaphic, climatic and natural resource endowments besides man-biotic interactions) variables in organizational theory literature in west is understandable due to near complete subsumption of ecological forces by market forces. Such a neglect in developing agrarian societies is difficult to understand. The ecological forces shape the evolution of market forces in such societies. Any theory of organizations to be socially effective must be preceded by a theory of environments. The socio-ecological paradigm relying on interactions between four-S (space, season, sector and social stratification) provides one way of attempting unambiguous specification of organizations environments. Examples from various product, service and banking organizations are used to advance the above concept. There is a need for studying match or mismatch between portfolios of organizations with portfolio of economic enterprises evolved by different classes of rural producers in a historical context. The development is the process of reducing economic disparities, widening of individual decision making choices and extending time frame for appraising investment choices of the poor. The design and dynamics of developmental organizations can manifest these concerns best by explicit recognition of the challenges inherent in the transition of 'needs' poor have into demand they can articulate. The excessive reliance on market forces or voluntary organizations can not help bridge the regional, sectoral or social imbalances. The 'is' should not be allowed to become 'ought'. Values of researchers would need to be made explicit in this regard. Study of social articulation process particularly in backward regions endowed with risky ecologies will provide design avenues for socially responsive public and private organizations. The paper provides some arguments for reducing excessive reliance on study of intra-organizational variables in gearing organization towards the poor clients who can't protest, pester or persuade the researcher to do otherwise. At least at present.

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Working Papers | 1986

Creating Demand Systems in Drought Prone Regions: Random Thoughts and Personal Field Notes from a Group Action-Research Project-Journal-II

Anil K. Gupta

Indian Institute of Management, Ahmedabad had initiated an action-research project in three districts with similar ecological and social stress but dissimilar administrative system. A group of faculty members from Centre for Management in Agriculture and Public Systems Group pursued the idea of creation of demand groups of poor by the local bureaucracy on itself. The hope was that generation of this demand might help in counteracting the demand from vested interests resulting in unfair distribution of resources, information and services. The first journal of this project was written by late Prof. Ravi J. Mathai and the draft (written in 1983) reported here was expected to be the second journal. However, it never could be discussed in the group at length and hence remains author's individual understanding and account of a group action-research endeavour. It is hoped that various hypothesis which were generated might provoke more comprehensive, sustained and meaningful explorations by other colleagues. The ethical issues in initiating an endeavour of this sort without taking it to its logical conclusions will be discussed separately.

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Working Papers | 1986

Demand-Supply Management of Forest Based Cellulosic Raw Materials for the Paper Industry in India

Gupta Tirath

The study focuses on bamboo and hardwoods which are the most important cellulosic raw materials for the paper and paperboards industry in India. There are perceptions of acute scarcities of these goods caused by rapid growth of the industry, competing demands, spurt of through regarding conflicts between environmental quality and production of tangible goods, inadequate management of natural wealth in the form of forest land, etc. Feasibilities of a few conventional and unconventional measures to enhance the productivity of common property wastelands in and outside the regular forest areas have been assessed. These include provision of additional approach roads and bridges, reduction of waste in harvesting, marginal technological changes such as use of portable mini chippers, improved silvicultural and biological management of natural forest areas, broader interpretation of the term plantations to able to harness the established root stock of hardy tree species, etc. It has been reasoned that productivity of two-thirds of India's forest land can be substantially enhanced within 8-10 years without making intensive use of capital and trained manpower, and this is the surest way to resolve the conflict between industrial and other uses of the forest produce, to obviate the need for conscious demand management, and to manage and enhance the quality of biophysical environment.

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