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Title: Interdependence of household expenditure, private transfers, and public transfers in India: Is there a case of crowding out?
Authors: Jat, Mamta
Keywords: Public Transfers - Private Transfers - India
Social Security - India
Bino Paul
School of Management and Labour Studies
Issue Date: 2017
Abstract: In the absence of significant policy shift provision for elderly aid, transfer income from family networks (children, or others who don’t reside in the household) and community is a primary source to make ends meet especially in the low-income countries, not an exception in India. Moreover, several decades of burgeoning interest in transfers have contributed to a variety of evidences across developing as well as developed countries. This is because transfer behavior discloses particulars on human nature, and transfers might have a logical relationship with income redistribution policies, as it might render the benefits of public transfers in non- fulfillment. Despite, the empirical examination of transfers could not embark in Indian settings because of the lack of good quality data. With this backdrop, this study, by taking advantage of IHDS data, examines the extent and pattern of transfers across households. Furthermore, the Western literature is fueling of with arguments about crowding out effect of public transfers. Moreover, crowding out is an important issue among policy makers in India too, contemplating to formulate universal social safety net. But as for crowding out to be of policy relevance, private transfers have to be ubiquitous and big enough, thus assessment of the magnitude of transfers with significant socio-economic and demographic factors will impart an outlook on the crowing-out phenomenon in India. Many of the earlier results are compromised, as they defied so many significant estimation issues, and many studies had focused on developed countries where public transfers are far- flung, and crowding-out is fait accompli. So, this study will be a substantial contribution to literature as it is on India, a low-income country with almost absent social safety net. Moreover. I have used multifaceted econometric techniques to deal with most of the estimation issues. The study has taken into account endogeneity of resources flowing in the household to see the behavioral impact of various sources of income on household expenditure pattern. Also, by doing so, I test income pooling hypothesis of household income. Additionally, to see the impact of transfers on poverty, I have deflated income, private transfers, and public transfers with economies of scale as household size economies have a considerable effect on poverty estimates. Our results show that crowding out of private transfers as a result of the introduction of public pensions holds in India. Both private transfers and public pensions significantly reduce poverty but private transfers have a larger impact on expenditure patterns. The results also reject the hypothesis of income pooling underlying the conventional unitary model by finding that the marginal impact on expenditures are different for public pension received, private transfer received and other resources flowing into the household. The principal conclusions are robust to changes in specification.
Appears in Collections:M.Phil.

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01_Title Page.pdf56.16 kBAdobe PDFView/Open
02_Declaration.pdf56.54 kBAdobe PDFView/Open
03_Certificate.2.pdf77.99 kBAdobe PDFView/Open
04_Acknowledgement.pdf57.43 kBAdobe PDFView/Open
05_Table Of Contents.pdf60.28 kBAdobe PDFView/Open
06_Abstract.pdf61.08 kBAdobe PDFView/Open
07_Chapter 1.pdf307.3 kBAdobe PDFView/Open
08_Chapter 2.pdf305.89 kBAdobe PDFView/Open
09_Chapter 3.pdf441.93 kBAdobe PDFView/Open
10_Chapter 4.pdf489.3 kBAdobe PDFView/Open
11_Chapter 5.pdf289.77 kBAdobe PDFView/Open
12_References.pdf158.2 kBAdobe PDFView/Open
13_Appendix.pdf430.26 kBAdobe PDFView/Open

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