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Showing posts with the label legislative competence

Decision Making as Output and Bounded Rationality

  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

Judicial Restraint : A Note

  The judicial activism in India has attracted consternation in many quarters. The past posts too have discussed at certain length the dangers of judicial activism and the possible repercussions it might have on the balance between the three organs of the state viz. the legislature, the executive and the judiciary. As long as they functions within the confines of the boundaries, they would be ok. Yet when one encroaches the domain of the other irrespective of the circumstances, then the decay starts. To the legislature, it is the fixed term that acts as a check and balance. The executive functions as subordinate to the legislature and too survives as long as it has the majority in the lower house of the legislature. Given the five year term and the consequent election or re-election, the governments keep changing. Therefore, they are elected and accountable to the people. They are punished if they do not perform. If there is transgression, there would be severe retributions from the el