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Institution of politically motivated policy certainty of government on economic growth: a study among major Indian states

Author

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  • Sarker, Debnarayan
  • Das, Debraj

Abstract

This paper theoretically tries to explore the impact of politically motivated policy certainty of a government guided by the norm of equality of income on economic growth and also tries to examine its empirical validity on major Indian states. This paper lends credence to the fact that politically motivated policy uncertainty among most of the major Indian states under this study has positive impact on their economic growth. This study suggests that the policy of attaining inclusive growth for Indian states should be formalized in such a way that equality in income distribution and economic growth should be attained simultaneously.

Suggested Citation

  • Sarker, Debnarayan & Das, Debraj, 2011. "Institution of politically motivated policy certainty of government on economic growth: a study among major Indian states," MPRA Paper 33499, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:33499
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    File URL: https://mpra.ub.uni-muenchen.de/33499/1/MPRA_paper_33499.pdf
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    References listed on IDEAS

    as
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    3. Dixit, Avinash K, 1989. "Entry and Exit Decisions under Uncertainty," Journal of Political Economy, University of Chicago Press, vol. 97(3), pages 620-638, June.
    4. Persson, Torsten & Tabellini, Guido, 1994. "Is Inequality Harmful for Growth?," American Economic Review, American Economic Association, vol. 84(3), pages 600-621, June.
    5. Alesina, Alberto & Özler, Sule & Roubini, Nouriel & Swagel, Phillip, 1996. "Political Instability and Economic Growth," Journal of Economic Growth, Springer, vol. 1(2), pages 189-211, June.
    6. Yi Feng, 2005. "Democracy, Governance, and Economic Performance: Theory and Evidence," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262562111, December.
    7. Kydland, Finn E & Prescott, Edward C, 1977. "Rules Rather Than Discretion: The Inconsistency of Optimal Plans," Journal of Political Economy, University of Chicago Press, vol. 85(3), pages 473-491, June.
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    More about this item

    Keywords

    politically motivated policy certainty; major Indian states; income distribution; reproducible capital;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

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