Public Choice: an Overview

Public Choice begins with the observation that in politics, as in economics, individuals and institutions compete for scarce resources and that, therefore, the same methods of analyses used by economists to explain the behaviour of consumers and producers might also serve well to explain the behaviour of governments and other (allegedly) “public-spirited” organisations . As Tullock (1988) succinctly put it, Public Choice is "the invasion of politics by economics". Public Choice derives its rationale from the fact that, in many areas, 'political' and 'economic' considerations interact so that a proper understanding of issues in one field requires a complementary understanding of issues in the other. Although the incursion of the analytical methods of economics into political science - which is the hall-mark of Public Choice - began in the 1950s, it was not until at least three decades later that the trickle became a flood. This chapter provides an overview of this field

On the Risks of Belonging to Disadvantaged Groups: A Bayesian Analysis of Labour Market Outcomes

Although methods of analysis based on Bayes’ theorem have had rich applications in Law and in Medicine they have not been much used in Economics. We use Bayes’ theorem to construct two concepts of the “risk” associated with belonging to a particular group in terms of a favourable labour market outcome; this, in the Indian context, is taken as being in “regular employment”. The first concept, the Employment Risk Ratio, measures the odds of a person being in regular employment to being in non-regular employment, given that he belongs to a particular group. The second, the Group Risk Ratio, measures the odds of a person being in regular employment, given that he belongs to one group against belonging to another group. We then apply these concepts of risk to data for four subgroups in India: forward-caste Hindus; Hindus from the Other Backward Classes; Dalits (collectively the Scheduled Castes and Scheduled Tribes); and Muslims. We show that, on both measures of risk, forward caste Hindus do best in the Indian labour market. This is partly due to their superior labour market attributes and partly due to their better access to good jobs. When inter-group differences in attributes are neutralised, the favourable labour market performance of forward caste Hindus is considerably reduced. We conclude that it is the lack of attributes necessary for, rather than lack of access to, regular employment that holds back India’s deprived groups

Gender Bias Among Children in India in their Diet and Immunisation Against Disease

This paper conducts an econometric analysis of data for a sample of over 4000 children in India, between the ages of 1-2 years of age, with a view to studying two aspects of the neglect of children: their likelihood of being immunised against disease and their likelihood of receiving a nutritious diet. The starting hypothesis, consistent with an universal interest in gender issues, was that girls were more likely to be neglected than boys. The analysis confirmed this hypothesis. In respect of vaccinations, the likelihood of girls being fully vaccinated, after controlling for other variables, was five percentage points lower than that for boys. In respect of receiving a nutritious diet, the treatment of girls depended very much on whether or not their mothers were literate: there was no gender discrimination between children of literate mothers; on the other hand, when the mother was illiterate, girls were five percentage points less likely to be well-fed relative to their brothers and the presence of a literate father did little to dent this gender gap. But the analysis also pointed to a broader conclusion which was that all children in India suffered from sharper, but less publicised, forms of disadvantage than that engendered solely by gender. These were the consequences which stemmed from children being born to illiterate mothers and being brought up in the more impoverished parts of India.Children, gender, diet, vaccination, India

Social Exclusion and Jobs Reservation in India

This paper argues that social exclusion robs people of their "confidence" and this loss adversely affects their capacity to function effectively. We may not be able to define confidence precisely but we know it when we have it and also when we lack it. In a “just” society, no group should unfairly suffer from a “confidence deficit” or enjoy a “confidence surplus”. However, affirmative action policies to boost a deprived group's employment rate suffer from several defects. In particular, they may have only a small effect (as with Dalits in India) when the group's educational base is low. Consequently, another prong of policy could, indeed should, focus on improving the educational standards of Dalits. The root of the problem of poor Dalit achievement lies in the many dysfunctional primary and secondary schools in the villages and towns of India. Admittedly, tackling the problem at its roots will only yield results after a long delay. Nor does the emphasis on effective learning at school carry the glamour associated with being a putative graduate of the Indian Institute of Technology, the Indian Institute of Management, or the All-India Medical Institute. But, before the vast mass of educationally and economically deprived children in India (many of whom are Dalits) can meaningfully enter the portals of Universities and Institutes of Higher Education they need to go to good schools.Dalits; Discrimination; Social Exclusion; Deprivation

Terrorist Incidents in India, 1998–2004: A Quantitative Analysis of Fatality Rates

Using data from the University of Maryland’s Global Terrorism Database II, this paper first provides information on the nature of terrorist incidents in India in the period 1998-2004: the Indian states that were worst affected by terrorist incidents and fatalities; the terrorist groups responsible for such incidents and their modus operandi. Next, the paper focuses on the issue of fatalities from terrorist incidents. It inquires into the extent to which the number of fatalities following an incident was influenced by the type of attack (bombings, armed assault, etc.) and the extent to which it was influenced by the type of terrorist group. By examining the number of fatalities resulting from terrorist attacks in India, the paper disentangles the influence on this number of attack type and attack group. Lastly, the paper applies Atkinson’s concept of equality-adjusted income to terrorism to arrive at the concept of equality-adjusted deaths from terrorist incidents: in order to avoid spectacular incidents resulting in the loss of a large number of lives—as in New York on September 11, 2001 and in Mumbai 26–29 November 2008—‘‘society’’ might be prepared to tolerate ‘‘low-grade’’ terrorism which resulted in a larger number of deaths in total but avoided a large number of deaths from a single iconic incident.attack type, India, terrorism, terrorist groups

On the Risks of Belonging to Disadvantaged Groups: A Bayesian Analysis of Labour Market Outcomes

Although methods of analysis based on Bayes’ theorem have had rich applications in Law and in Medicine they have not been much used in Economics. We use Bayes’ theorem to construct two concepts of the “risk” associated with belonging to a particular group in terms of a favourable labour market outcome; this, in the Indian context, is taken as being in “regular employment”. The first concept, the Employment Risk Ratio, measures the odds of a person being in regular employment to being in non-regular employment, given that he belongs to a particular group. The second, the Group Risk Ratio, measures the odds of a person being in regular employment, given that he belongs to one group against belonging to another group. We then apply these concepts of risk to data for four subgroups in India: forward-caste Hindus; Hindus from the Other Backward Classes; Dalits (collectively the Scheduled Castes and Scheduled Tribes); and Muslims. We show that, on both measures of risk, forward caste Hindus do best in the Indian labour market. This is partly due to their superior labour market attributes and partly due to their better access to good jobs. When inter-group differences in attributes are neutralised, the favourable labour market performance of forward caste Hindus is considerably reduced. We conclude that it is the lack of attributes necessary for, rather than lack of access to, regular employment that holds back India’s deprived groups.Labour Market; Risk Ratio; India; Caste; Religion

Targeting Social Need: Why are Deprivation Levels in Northern Ireland Higher for Catholics than for Protestants?

This article addresses two issues. First, using data drawn from the Sample of Anonymised Records of the 1991 Northern Ireland Census, for over 13,000 individuals, it constructs a deprivation index and then, using this index, compares the deprivation levels of Catholics and Protestants. Second, it relates the level of deprivation of the individuals in the sample to their personal characteristics and circumstances. In particular, it examines the possibility that while higher deprivation levels among Catholics may have been partly due to the fact that they possessed, to a greater degree than Protestants, the attributes that were correlated with deprivation, it may also have been the result of Catholics being penalised more harshly than Protestants for possessing these attributes.Deprivation; Catholics; Protestants; Northern Ireland

Public Choice: an Overview

Public Choice begins with the observation that in politics, as in economics, individuals and institutions compete for scarce resources and that, therefore, the same methods of analyses used by economists to explain the behaviour of consumers and producers might also serve well to explain the behaviour of governments and other (allegedly) “public-spirited” organisations . As Tullock (1988) succinctly put it, Public Choice is "the invasion of politics by economics". Public Choice derives its rationale from the fact that, in many areas, 'political' and 'economic' considerations interact so that a proper understanding of issues in one field requires a complementary understanding of issues in the other. Although the incursion of the analytical methods of economics into political science - which is the hall-mark of Public Choice - began in the 1950s, it was not until at least three decades later that the trickle became a flood. This chapter provides an overview of this field.Public Choice, Political Business Cycle, Median Voter

Measuring economic inequality: deprivation, economising and possessing

One way of measuring the deprivation or poverty of persons is to use money-based measures: a person is regarded as ‘poor’ if his/her income (or expenditure) falls below a poverty line value. Such an approach – usually termed poverty analysis – has spawned a large literature embodying several sophisticated measures of poverty. The downside to this is that low income or expenditure may not be very good indicators of deprivation. Another way, usually termed ‘deprivation analysis’, is to define an index whose value, for each person, is the number (or proportion) of items from a prescribed list that he/she possesses: persons are then regarded as ‘deprived’ if their index value is below some threshold. This offers an alternative method of identifying deprived persons. The disadvantage of deprivation analysis is that it measures deprivation exclusively in terms of the proportion of deprived persons within the total number of persons. The purpose of this paper is to bridge the gap between poverty and deprivation analysis by constructing a wider set of measures of economic inequality and by showing, with data for Northern Ireland, how they might be applied. The result is an analysis sensitive to intra-population heterogeneity.Deprivation; Economising; Possessions