Federal Transfers and Fiscal Discipline in India: An Empirical Evaluation

This article examines the relationship between federal transfers and fiscal deficits in India. The current system of transfers has been criticized on the grounds that it distorts the incentives for states to promote fiscal discipline. We analyze the relationship between transfers, state domestic product, and fiscal deficit for a panel of states during the period 1990 to 2010. The article finds a positive long-run relationship and bidirectional causality between primary/gross fiscal deficits and non-plan transfers. Further, there is a negative long-run relationship and one-way causality from state domestic product to transfers. These results are confirmed by multivariate cointegration analysis, which finds a long-run relationship between fiscal transfers, state product per capita, and state primary deficit. The evidence in the article is consistent with the system of fiscal transfers being ‘‘gap filling.’

Interaction between epsomite crystals and organic additives

A number of phosphonates and carboxylates were tested as potential crystallization inhibitors for epsomite (MgSO4·7H 2O). Epsomite nucleation is strongly inhibited in the presence of amino tri(methylene phosphonic acid) (ATMP), diethylenetriaminepentakis (methylphosphonic acid) (DTPMP), and poly(acrylic acid) sodium salt (PA). These additives also act as habit modifiers promoting the growth of acicular crystals elongated along the [001] direction. Environmental scanning electron microscopy (ESEM), Fourier transform infrared spectroscopy (FTIR), atomic force microscopy (AFM), and molecular modeling of additive adsorption on specific epsomite (hkl) faces are used to identify how these additives inhibit epsomite crystallization. Additives attach preferentially on epsomite {110} faces, at edges of monolayer steps parallel to [001]. Step pinning and the eventual arrest of step propagation along (110) directions account for the observed habit change. Hydrogen bonding between the functional groups of additive molecules and water molecules in epsomite {110} appears to be the principal mechanism of additive-epsomite interaction, as shown by FTIR and molecular modeling. Molecular modeling also shows that DTPMP displays a high stereochemical matching with epsomite {110} surfaces, which can explain why this is the most effective inhibitor tested. The use of such effective crystallization inhibitors may lead to more efficient preventive conservation of ornamental stone affected by epsomite crystallization damage. © 2008 American Chemical Society