2 second provide some version of a wage subsidy as an

  • No School
  • AA 1
  • 33

This preview shows page 8 - 10 out of 33 pages.

2. Second, provide some version of a wage subsidy as an incentive to labour intensive sectors. A version of this was offered to the textile and garment sectors last year, but can be improvised and extended. 3. Third, give a big boost to affordable housing, by funding land acquisition for the builder, and interest rate subvention for the home owner. The States of Kerala and Maharashtra have interesting and replicable models. 4. Fourth, keep a big focus on exporters, especially in labour intensive sectors, including agriculture. This includes a weaker exchange rate, quicker refund of GST credit and expanding the scope of the Merchandise Export from India Scheme and Service Exports from India Scheme. 7. What do you understand by professor Richard Thaler’s Nudge Theory? Give example. How does this theory help in the Swacyh bharat Campaign? That professor is behavioural economist Richard Thaler, the winner of the Nobel Prize in Economics this year. He went on to show that even small departures from rationality have outsized impacts, and that limitedly rational humans don’t fit neatly into classical economics. So, he helped develop a new branch of economics, behavioural economics, to study the interplay of human quirks and economic forces.
Image of page 8

Subscribe to view the full document.

9 | Page 9004418746 [email protected] Prof. Thaler’s work is famously applied in constructing choices. How a choice is framed tends to influence choosers’ behaviour. Choice architects can thus ‘nudge’ choosers in a direction. The nudge philosophy is that the chosen option makes choosers better off as judged by themselves. The behaviour-informed approach to policy-making recognises that there are two systems of thinking. Thinking automatically and thinking analytically and deliberatively. Just as any tool can be used controversially, and in a way not intended by its creators, nudging is sometimes used for misshaping mindsets, behaviour or manipulation. For example there is problem of unhealthy eating habits, which lead to obesity. An extreme solution would be strictly-enforced bans and diktats on food that can be consumed and that which is prohibited. A less extreme public policy would be a sin tax on fat or sugar. Nudge- type policies, on the other hand, would tend to include things like displaying the healthier food options relatively more prominently. Or mandating calorie labels on sweets boxes. Development policies become measurably more effective when combined with insights into human behaviour. A common refrain in India is that constructing toilets will not guarantee cleanliness and hygiene; Swachh Bharat will succeed truly if behaviours change. For which mindsets must change. In experiments conducted in some States, application of behavioural economics successfully changed the sanitation mindset. The World Bank has documented some of the pilots. One such study found that open defecation dropped 11% from very high
Image of page 9
Image of page 10
  • Fall '19

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Ask Expert Tutors You can ask 0 bonus questions You can ask 0 questions (0 expire soon) You can ask 0 questions (will expire )
Answers in as fast as 15 minutes