A Prospect Theory Analysis of California's Initiatives in Implementation of its Zero Emission Vehicles (ZEV) Mandate1

In 1990, the state of California passed the pioneering mandate on zero emission vehicles (ZEV). This technology‐forcing regulation is aimed at improvement of air quality and protection of public health from the adverse effects of air pollutants from automobiles. Facing severe opposition from the auto industry, the mandate has been revised a number of times, most recently in 2003, whereby the requirement for ZEVs have been made to align with the pace of technology development. Review of strategies used in implementation of the mandate has revealed greater emphasis on the economic incentives for rather than on environmental merits of ZEVs. Using prospect theory as the framework for analysis, the reasons have been explored. The findings of the study help us to understand how decisions are made with respect with to deviations from a mental anchor point and through the process of evaluation of losses and gains.     

The Case for the Development of Public Transit in an Urban Boundary Rural Area

Individuals' preferences for automobiles are often taken for granted in our auto centric society. This study attempts to determine if commuters in a city located beyond the fringe of a metropolitan area are willing to use public transit if it is developed and what are the socioeconomic and attitudinal factors that influence individuals' decision to use such a service. Analyses of survey data reveal that preferences exist for public transit service, which can be partly attributed to individuals' concerns regarding rising gasoline prices and air pollution, and is particularly noticeable among those who are educated and/or belong to a younger age group.     

Micro-insurance through corporate–NGO partnerships in West Bengal: opportunities and constraints

This Practical Note examines the nascent micro-insurance sector in West Bengal, paying particular attention to the corporate–NGO partnership model for micro-insurance distribution, which has been enabled by India's unique regulatory framework. We challenge the popular construction of this model as a ‘win–win’ for all parties by analysing conflicting understandings of micro-insurance schemes and their purposes by insurance companies, NGOs, and poor villagers. The article also considers the role of the specific political context of West Bengal in constricting corporate–NGO micro-insurance.     

The debt wish: Rent seeking by business groups and the structure of corporate borrowing in India

Business groups play an important role in emerging economies. The transactions cost perspective, which has dominated our understanding of such groups, argues that the emergence of business groups is a natural response to market failures in developing countries. In this paper, we propose an alternate theoretical perspective – the rent-seeking view – that takes these groups as engaging in coordinated lobbying for the capture of rents created by governments. We develop and implement an empirical strategy to test for the rent-seeking view drawing from the property rights theory of corporate finance. We find strong empirical support for the rent-seeking view using a large cross-sectional data-set of firms in India.     

Decomposing disproportionate minority contact in juvenile justice

The objective of this study was to decompose racial disparity in juvenile justice decision-making into a part explained by differing characteristics of racial groups, and an unexplained part often attributed to discrimination. Individual case-level data from Alabama and logistic regression were used to model detention, petition, and disposition decisions in the juvenile justice system. Decomposition of racial disparity between white and black juveniles using the nonlinear Blinder-Oaxaca methodology suggested that about a half to three fourths of the racial gaps in the three juvenile justice decision points were caused either by discrimination or unobserved predictors. Decomposition of racial disparity in juvenile justice can help devise effective public policy by quantifying the extent to which specific policies can reduce disproportionate minority contact.     

Foreign ownership and firm scope in India

We examine how foreign ownership influences the extent to which firms engage in outsourcing. We observe a significant and positive relationship between the extent of foreign ownership and the level of internal sourcing for the firms. Second, when foreign owners have at least 51% ownership versus where foreign ownership is less than 51% we observe dramatic differences in outsourcing levels. Also we find that for firms with controlling foreign ownership undertaking in-house activities, the motivation to keep their property rights as inviolate as possible when their capability contributions within the Indian economy are large and significant is intense. For firms considering locating in India a strategy of internalization of activities in India is central towards retaining their competitive advantage.     

Assessing comparative efficiency of the state-owned mixed and private sectors in Indian industry

This paper evaluates performance differences between government owned, mixed sector and private sector enterprises in India for the period 1973–1974 to 1988–1989. The results establish that enterprises owned by the central government and state governments are less efficient than mixed or private sector enterprises, while mixed sector enterprises are less efficient than those in the private sector. The results contradict extant evidence finding no performance differences between government-owned and private firms in India. There have, however, been inter-temporal efficiency gains for the sector as a whole, perhaps resulting from reforms undertaken towards improving government-owned enterprises' performance.     

Medieval modernity: On citizenship and urbanism in a global era

This paper examines forms of citizenship associated with contemporary urbanism. Focusing on three paradigmatic spaces: the gated enclave, the regulated squatter settlement and the camp, the authors argue that the landscape of urban citizenship is increasingly fragmented and divided. These geographies are constituted through multiple and competing sovereignties which, when territorially exercised, produce fiefdoms of regulation or zones of ‘no-law’. In order to understand these practices, the authors employ the conceptual framework of the ‘medieval city’. This use of history as theory sheds light on particular types of urban citizenship, such as the ‘free town’ or the ‘ethnic quarter’, that were present at different moments of medievalism and that are congruent with current processes. The ‘medieval’ is invoked not as an historical period, but rather as a transhistorical analytical category that interrogates the modern at this moment of liberal empire.     

Foreign exchange legislation transformation and enterprise demography in India

This article evaluates the extent to which the legislative changes relating to foreign exchange that have taken place in India within the last few decades, and in particular after 1991, have made an impact on the presence of foreign firms in the economy. The data cover the period 1957–1958 to 2001–2002, and include the entire population of India’s corporate sector. In the period after reforms commenced in 1991, the number of foreign firms in India has increased very substantially. The transformation of the foreign exchange regulation act (FERA) to the foreign exchange management act (FEMA) in 1999 has had a positive effect in inducing foreign firms to India. The FEMA legislation simplifies the maze of controls, procedures and bureaucratic minutiae that have to be observed by all those undertaking to set up and operate a business in India. The changes in the legislative regimes make India attractive as an investment destination for foreign firms.