Monday, April 18, 2005

Poverty lines?

The definition as given by the UN for poverty is a minimum intake of approximately 250 calories. so if u ask a statistician he would place the amount of those under the poverty line in india between 40 to 45 % but actually it comes to more han 60%! can you imagine that???its an astounding fact.well you mentioned food, shelter and you not feel that education comes under the basic necessities, well it does and if the individual lives in polluted place but he has all the basic necessities????
first we i.e india needs to define the word poverty for itself as conditions in different places are kerala the inequalities are the minimum regarding incomes.
well we indians have resources.all our brains are working in foreign countries , developing it, as they are being paid in dollars & euros. india spends so much of resources on education and this is what happens.very few of them do the is not everything in life!
if the markets cannot give the remedy to the problems of the nation like poverty, unemployment then an external body has to involve itself and that is the GOI(govt of india).why do we pay taxes?because we are responsible.why are elections held?its a democracy and the people who rule us have been elected by us!
according to the UN human development report, indian has been ranked somewhere around 136. what a shame!HDI(human development index) takes into account life expectancy, infant mortality rate, sex ratio, etc.
we might be growing at about 7% of GDP but it can be either due to inflation or a population explosion.what do the lay men know of GDP, the intricacies involved,when it is seen that GDP has grown they think india is growing...where is the growth seen,the poor are still the same..its a saddening sight...hope we make a difference to this sad state as indians!

the answer lies in economics!

well,when i went to the railway station yesterday, i was told that things are real easy NOW because the railways are now computerised.has this really increased the efficiency of the people in a totalitarian sense.has these been made available to the public? the economists sitting in top of the ladder creates policies for welfare improvement......but as it climbs down, it falls apart...not reaching the bottom of the ladder!when ever a policy is introduced, be it railway concession or any other concession made so as to improve the welfare of people,it neither reaches the strata of population in penury nor are they aware of such a scheme.the rich class remains the same, if not richer.....but the middle class tends to gain.....what about the poor?resulting in the inequalities in the distribution of income and wealth increase(does the poor have wealth?) here in india we dont even have a proper definition for the poverty line!!!!
i feel an answer to this problem can be given by economists.......the local self goverments must be made more should look after the welfare of the people under it by formulating policies applicable to that particular region only......i feel all LSG's should employ a graduate in economics who has experience in policy making!presently the panchayats are looked down upon...this has to undergo a transition!the presence of an economist in an institution helps in the transition!

Saturday, April 16, 2005

A digression

well it suddenly dawned upon me to share some quotes which can be of help
1)no good deed goes unpunished!
2)to give anything less than your best is to sacrifice the gift!

economics is not an independent discipline, instead it is very much can be coupled with religion,philosophy and so on!economics is all about being a rational individual or group in makin choices.....rational meaning making the best possible choice(but not at the cost of others)this what Vilfredo Pareto's PARETO OPTIMALITY teaches us too....if we look deeply into economics and religion,we conclude that both strive to make the life here on earth go equilibrium!

thoughts on indifference curves


IC(curves), here we refer it to as IC curves.....dont know how the repetition came about..well as i was goin through FERGUSSON & GOULDS MICROECONOMICS, it suddenly came to my notice as to how infinite number of IC can be drawn in a commodity space.....on looking at the diagram, we make out only finite lines can be drawn......fergusson made the revelation to me that " IC's HAVE NO WIDTH".i was surprised because of the fact that when it was taught in class neither the prof nor the students asked anything about this.....maybe thay knew...i most certainly did not know....feeling foolish about myself!

Friday, April 15, 2005


another man day .......planning to do some micro reading.......i am starting from the begining(DD & SS) so that i get an clearer picture......need to improve my math too..if i knew one concept in math very well, i could do wonders because knowing a concept fully allows you to make analysis economics, the usual concepts needed are(broadly) calculus,matrices,optimization.....there is another fantastic section known as econometrics,which deals with the use of statistical analysis in economic modelling-which contributes to the emperical verification of the theory or model.
the books in ascending order of reading in econometrics are
BASIC ECONOMETRICS by Damodar Gujarati
Gujarati can take you through the basics very well.
in india, specifically south india,students doing their undergrad in economics dont know either about econometrics nor mathematical least hope they know both are different .
i am planning to do the following
MA eco from delhi university
Msc econometrics and mathematical economics from UK
PHd from USA
as of now these are my plans... not considering them to change in the future.for those who are planning to do a doctorate abroad, take as many math papers you can in your master's.score well too....mere opting is not enough.
hoping i make some progress with my micro today
cheers to all those pursuing economics


i am proud to be doin my BA economics . economics is all i wanted to do.the problem in india is that the teaching is carried on in a very theoretical way not relating the same to the economic phenomena. very little math is being taught.alas!planning to do a masters after this.i feel blogging is one way of putting ones thoughts to n number of persons.most people get bored by reading economics , what a sad state!