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Showing posts with the label farm bills

Decision Making as Output and Bounded Rationality

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  The classical economics theories proceed on the assumption of rational agents. Rationality implies the economic agents undertake actions or exercise choices based on the cost-benefit analysis they undertake. The assumption further posits that there exists no information asymmetry and thus the agent is aware of all the costs and benefits associated with the choice he or she has exercised. The behavioral school contested the decision stating the decisions in practice are often irrational. Implied there is a continuous departure from rationality. Rationality in the views of the behavioral school is more an exception to the norm rather a rule. The past posts have discussed the limitations of this view by the behavioral school. Economics has often posited rationality in the context in which the choices are exercised rather than theoretical abstract view of rational action. Rational action in theory seems to be grounded in zero restraint situation yet in practice, there are numerous restra
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Farm Protests, Tractor March and 1982 Asiad Disruption

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  It is apparent that the talks between the government and the protesting farmers have broken down with no end to the deadlock in sight. The farmer groups apparently want a corner solution and seem to be in no mood to settle for any other solution. The government did offer them a sort of face-saver in suggesting a postponement in implementing the laws upto a year or year and half. This was perhaps in view of the upcoming Punjab elections next year and something for the farmers to boast about in those election. Yet as expected the farmer groups have rejected the same. The government would perhaps be anticipating some divisions in the groups over the latest proposals. It is conceivable there would be divisions, but would take time to manifest. The government is perhaps prepared for a long waiting period. Most groups are basically from Punjab with some from Haryana and a sprinkling from other states including Rajasthan and Uttar Pradesh.   Meanwhile there is a clamour for a crackdown
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Narendra Modi and the Reforms

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  Sometime back, the post “ Decoding Modi’s Popularity ” tried to understand the reasons for continuing popularity of the Indian Prime Minister. Many western commentators try to judge him on their standards which implied would translate into so-called western liberal values. Thus in their assessment, he stands contrary to what they seem to preach to Indian masses. Yet while his popularity remains undisputed, there are many commentators including among the Indian right and his support base who feel that Modi is not an economic reformer. They point out to the lack of reforms in the Indian context. They argued that Modi while create political disruptions has faltered on the economy. The low economic growth rate in the recent periods is seen as an vindication of their stand. Yet, at times it feels for an economic reformer in the Indian context, all Modi had to do was to privatize Air India and close down BSNL. To a prospective champion of Indian economic reforms, the test begins with priva
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