Does Government Expenditure on Education Promote Economic Growth? An Econometric Analysis

Education being an important component of human capital has always attracted the interests of economists, researchers and policy makers. Governments across the globe in general and in India in particular are trying to improve the human capital by pumping more investments in education. But the issue that whether improved level of education resulting from more education spending can promote economic growth is still controversial. Some economists and researchers have supported the bi-directional relation between these two variables, while it has also been suggested that it is the economic growth that stimulates governments spend more on education, not the other way. Considering this research issue, the present paper uses linear and non-linear Granger Causality methods to determine the causal relationship between education spending and economic growth in India for the period 1951-2009. The findings of this paper indicate that economic growth affects the level of government spending on education irrespective of any lag effects, but investments in education also tend to influence economic growth after some time-lag. The results are particularly useful in theoretical and empirical research by economists, regulators and policy makers

Does Government Expenditure on Education Promote Economic Growth? An Econometric Analysis

Education being an important component of human capital has always attracted the interests of economists, researchers and policy makers. Governments across the globe in general and in India in particular are trying to improve the human capital by pumping more investments in education. But the issue that whether improved level of education resulting from more education spending can promote economic growth is still controversial. Some economists and researchers have supported the bi-directional relation between these two variables, while it has also been suggested that it is the economic growth that stimulates governments spend more on education, not the other way. Considering this research issue, the present paper uses linear and non-linear Granger Causality methods to determine the causal relationship between education spending and economic growth in India for the period 1951-2009. The findings of this paper indicate that economic growth affects the level of government spending on education irrespective of any lag effects, but investments in education also tend to influence economic growth after some time-lag. The results are particularly useful in theoretical and empirical research by economists, regulators and policy makers.Education expenditure, Economic growth, Indian economy, Granger Causality, Non-linearity.

Stock Market Anomalies: A Calender Effect in BSE-Sensex

Whether inexplicable patterns of abnormal stock market returns are detected in empirical studies of the stock market, a return anomaly is said to be found. There are other similar anomalies existing in the stock market. Economically meaningful stock market anomalies not only are statistically significant but also offer meaningful risk adjusted economic rewards to investors. Statistically significant stock market anomalies have yet-unknown economic and/or psychological explanations. A joint test problem exists because anomalies evidence that is inconsistent with a perfectly efficient market could be an indication of either market inefficiency or a simple failure of Capital Asset Pricing Model (CAPM) accuracy. Some of the most-discussed about market anomalies are return anomaly, market capitalization effect, value effect, calendar effect, and announcement effect. Though various studies have been conducted to find out the presence of these anomalies across the stock markets worldwide, very few studies with reference to Indian stock market are available in the financial literature. This study aims to find the evidence of one of the anomalies, calendar effect in BSE Sensex, India’s leading stock exchange.Anomalies; Calender Effecr; Indian Stock Market; SENSEX

A new outlook towards kidney injuries

Acute and chronic progression of injury to the kidney leads to the failure of the renal system and has become an increasingly important cause of morbidity and mortality. Present diagnosis detects the condition only after irreversible loss of 70 percent of kidney function. Current research is focused only on the clinical manifestations after the kidney injuries and not towards the exact cause of the condition. Here we propose a new outlook- that there is an involvement of a pathogen in the pathogenesis of kidney injuries. Basis for our proposal is given by the similarity of the pathogenesis events occurring between a classical example of hepatitis and kidney injuries. Furthermore, literature regarding the role of early kidney injury biomarkers in innate immunity indicates the involvement of the pathogen. Research in this theme possesses a strong possibility in the development of therapeutic, preventive and management strategies for the acute and chronic kidney injuries

Influence of cross-section geometry and wire orientation on the phonon shifts in ultra-scaled Si nanowires

Engineering of the cross-section shape and size of ultra-scaled Si nanowires (SiNWs) provides an attractive way for tuning their structural properties. The acoustic and optical phonon shifts of the free-standing circular, hexagonal, square and triangular SiNWs are calculated using a Modified Valence Force Field (MVFF) model. The acoustic phonon blue shift (acoustic hardening) and the optical phonon red shift (optical softening) show a strong dependence on the cross-section shape and size of the SiNWs. The triangular SiNWs have the least structural symmetry as revealed by the splitting of the degenerate flexural phonon modes and The show the minimum acoustic hardening and the maximum optical hardening. The acoustic hardening, in all SiNWs, is attributed to the decreasing difference in the vibrational energy distribution between the inner and the surface atoms with decreasing cross-section size. The optical softening is attributed to the reduced phonon group velocity and the localization of the vibrational energy density on the inner atoms. While the acoustic phonon shift shows a strong wire orientation dependence, the optical phonon softening is independent of wire orientation.Comment: 10 figures, 4 Tables, submitted to JAP for revie

Decision Making in the Stock Market: Incorporating Psychology with Finance

The decision-making by individual investors is usually based on their age, education, income, investment portfolio, and other demographic factors. The impact of behavioural aspect of investing is, however, often ignored. The objective of this paper is to explore the impact of behavioural factors and investor’s psychology on their decision-making, and to examine the relationship between investor’s attitude towards risk and behavioural decision-making. The research uses the literature relevant to behavioural decision-making and investor’s psychology. The research is based on the secondary data relating to investments, finance, and economics available on the Internet, previous publications of the author, and some other publications as well. The information is then integrated in order to understand the interrelationships of investor’s perception of risk, behavioural factors, and decision-making in the Indian context. Through this research, the author finds that unlike the classical finance theory suggests, individual investors do not always make rational investment decisions. Their investment decision-making is influenced, to a great extent, by behavioural factors like greed and fear, cognitive dissonance, heuristics, mental accounting, and anchoring. These behavioural factors must be taken into account as risk factors while making investment decisions. Investment advisors and finance professionals must incorporate behavioural issues as risk factors in order to formulate effective investment strategies for individual investors. With an objective to create investor’s confidence in the Stock market, behavioural issues are the newest of the things which must be considered while formulating investment strategies. This research will help investment advisors and finance professionals judge investor’s attitude towards risk in a better way, thus leading to better investment decision-makingBehavioural Finance; Asset Allocation; Cognitive Dissonance; Rationality