Archive for January 25th, 2016

India and liberalisation : There was a 1966 before a 1991

January 25, 2016

There is always this debate in Indian economy academia that when did India start to liberalise its economy. Most obvious answer is 1991. But some people say – it was  with 1985 VP Singh budget, 1980 India Gandhi started tweaking some ideas, 1977 emergency, 1966 Shastri was receptive to reforms but for his untimely death and so on. So for all you know, 1991 was just a fire which caught on but was ignited much earlier.

Ankit Mital makes a case for 1966 in this article. He is apparently writing a book on 1991 story. :

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To tax or not to tax Bollywood movies…

January 25, 2016

An interesting story in Indian Express on UP State Government taxing Bollywood movies.

The states govt impose their own tax rates on movis tickets making them exorbitant. You only get to know the difference once you buy a ticket for a tax free movie. The govts usually free a moveie from taxes if it has some social message and so on. The govt loses revenues from such movies but it helps boost the sale of tickets for that movie.

It has so happened that UP State Govt has exempted quite a few movies in recent past. This has led to loss in tax revenue.  Moreover, there is no consistent policy of tax exemption from movies:

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Why not include behavioal approaches in Indian policymaking?

January 25, 2016

One does not know why really.

Debhashish Basu of Moneylife says by nature people are lazy, selfish & vain. We should be aware of these traits while making policy.

famously said: “All writers are vain, selfish and lazy”. He could have said this for almost the entire human race. There are many altruistic people, and most of us sometimes do not fit this characterisation, but these are undoubtedly our default traits. Anybody who tries to persuade the public to behave in a certain manner must accept them or risk failure; or at the very least, be prepared for a long hard slog. The has understood this very well and created billion-dollar businesses that millions of people use daily for a cab ride (Uber), purchases (Amazon), information (Google) or other social purposes (Facebook, Twitter). Can intelligent policymakers and well-meaning politicians, who try to persuade millions to either clean up garbage, follow traffic rules, stop taking or giving bribes, learn from them? Lets first look at these characteristics.

As we tend to copy whatever west does in economic policies, there is an incentive to copy. British are already doing it:

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