Palakh Jain

Resistance to Change in an Organisation

This paper examines the widely documented literature on resistance to change in an organizational framework. Premise being that changes are resisted by organizations which hinders adaptation and progress in the long run. It is proposed that the same must be reduced to enhance the efficiency of organization. The build up to this paper has been in terms of reviewing the available literature on resistance to change in an organization and their major sources. The unit of analysis in the paper is organization. However, the individual and group dynamics of employees within the organization are identified as the key tools for diminishing resistance to change in any organisation. Some possible pathways have been identified to achieve the same. The first pertains to devising a mechanism such that all employees are aligned towards the goal. The second pathway is to increase the participation of employees to reduce resistance. Here, it is suggested that the change agent should look at the entire exercise of reducing resistance as a cost benefit analysis. Further, for empirical validation, an econometric model is formulated which suggests how diminishing resistance over time can lead to better efficiency in an organization.

Determinants of Outward FDI: Empirical Analysis of OECD Source Countries

The study analyzes the relationship between outward foreign direct investment (OFDI) stocks pertaining to 34 OECD source and 160 destination countries. The principal findings are: (i) The gravity model variables explain nearly 50 per cent of the variation in the OFDI stock. (ii) Common language and colonial linkages explain further variations in OFDI stock, over the gravity model. (iii) Index of revealed comparative advantage of natural resources for source country bears positive relation with OFDI. (iv) Common currency between source and destination country lowers transaction costs and reduces risk in transactions thus increasing OFDI level.

A Synthesis: 1. Aggregation, Income Distribution and Consumer Demand (Muellbauer,J.) 2. Specifications and Aggregation Theory: Ch 3, 3. Estimation of Linear Expenditure System (Pollak,R.A. And Wales,T.J.) 4. Aggregate Consumer Behavior Without Exact Aggregation (Nicol,C.J.)

The four papers on aggregation theory and estimation of demand function together provide a complete picture starting from the underlying theory of aggregation and specification to empirical estimation of demand functions. The first paper is about the aggregation across consumers. The second paper explores the properties associated with the Constant Slutsky Elasticity (CSE) model which is closely related to the absolute price version of the Rotterdam Model. The third paper estimates a complete system of demand equations making full use of the restrictions implied by economic theory. This is done using the model formulated by Stone namely, Klein-Rubin. The fourth paper estimates a model of consumer behavior by pooling Canadian cross sectional and time series data. An attempt is made in this synthesis to collate the four papers and understand the entire theory behind demand functions and see how demand functions are estimated empirically after incorporating elements such as leisure, household size to make the theory fit the reality. The first half of the section will draw from the first two papers to understand the theory of aggregation. The following section will draw from the next two papers on empirical estimates to understand the application of theory.

Walrasian Economics in Retrospect: Bowles, S. And Gintis, H.

Recently, two basic views of the Walrasian model have come under scrutiny. These are behavior based on self-interested exogenous preferences and complete and costless contracting .This paper discusses the same in two parts. First, based on literature and ongoing debates, it argues that social norms and psychological dispositions extending beyond the selfish motives of Homo economicus may have an important bearing on outcomes, even in competitive markets. Second, it emphasizes that market outcomes depend on strategic interactions in which power in the political sense is exercised. The last section describes the important advances in the study of economic institutions and policy since Marshall and Pigou inaugurated welfare economics in the 1930s.

Irreversibility of Capital: A Literature Review

Investment is often ‘irreversible’ i.e. once installed; capital has little or no value unless used in production. The term “irreversibility” of capital refers to the situation in which the firm cannot purchase and sell capital at the same price without any transactions costs or adjustment costs. This paper attempts to review the critical points of literature on the topic. The first section describes the neo-classical view of investment ala Jorgenson (1963), concept of irreversibility and fixed costs. The second section describes the concept of user costs in a mathematical framework taken from Abel & Eberly (1998). In the third section, the concept of irreversibility is explained using two models and literature review on the same. The fourth section describes the labor costs. The last two sections pertain to the applications of the concept and directions for future research.

Economics behind the internationalization of Biocon India Ltd

Title – Economics behind the internationalization of Biocon India Ltd. Subject area – Economics, business management Study level/applicability – The case study is relevant for MBA, Masters and under graduate (economics, international and business economics) students. Case overview – Biocon is one of the top 20 companies from India in the Forbes list of “Best under a Billion” companies. It has emerged from being an enzyme-producing firm to a biotech powerhouse under the guidance of Ms Kiran M. Shaw. It is an innovative company with a varied scientific skill base and progressive manufacturing facilities for developing and commercializing biopharmaceuticals. This study attempts to explore the international foray of Biocon using the eclectic OLI framework. Entrepreneurship, need for integrated business model, innovation, quality control, etc. constituted the ownership (O) factors, important for Biocon to earn the more than compensating advantage in the overseas market. The locational factors were less import...

A Synthesis: Redistributive Cooperation: Market Failure, Wealth Transfers, And the Basle Accord Thomas Oatley & Robert Nabors

This paper argues that the creation of the Basle Accord corresponds more to a rent-seeking than to a market failure logic. As mentioned in the paper, for understanding the same, models are needed that explain why governments propose international institutions in one issue area rather than another, why they create international institutions at one time rather than earlier or later, and why, when they do propose an international institution, they propose one set of rules rather than another. The paper starts with a literature review. As mentioned in the paper, the origins of the Basle Accord, according to Kapstein, lay in the consequences of international financial integration. International financial integration, by raising systemic risk and limiting regulators’ capacity to ensure the soundness of banking systems, generated a market failure evidenced by the debt crisis In short, the presence of a financial market failure revealed by the debt crisis induced policymakers to create mutually beneficial international regulations. Kapstein’s explanation of the Basle Accord, is a direct application of theories of international cooperation. This article challenges Kapstein’s account of international capital adequacy regulation. It is suggested that the Basle Accord is an instance of redistributive cooperation: the creation of an international institution that intentionally reduces at least one other government’s welfare compared to the status quo. The paper is divided broadly into three parts. First, a model is presented based on positive theories of regulation in which domestic politics create incentives to propose redistributive international institutions. Second, it is shown how governments can achieve international redistribution within the voluntary international agreements. Third, the model is applied to the Basle Accord.

Determinants of Capital Structure: An Analysis of Leverage Measures and Their Determinants for Indian Firms

Capital structure pertains to the extent of leverage of the firm. In recent years, a number of theories have been proposed to explain the variation in debt ratios across firms. The theories suggest that firms select capital structures depending on attributes that determine the various costs and benefits associated with debt and equity financing. The same is tested here via econometric techniques using Prowess Database for Indian Companies.