18. Working Papers
http://hdl.handle.net/2259/135
This section consists of faculty contributions on working papers. Currently the fulltext of the working papers are accessible to the members of the IIMK Community only.2017-10-22T06:22:02ZExchange Rate Volatility and Exports: Estimation of Firms Risk Preferences
http://hdl.handle.net/2259/941
Exchange Rate Volatility and Exports: Estimation of Firms Risk Preferences
Soumyatanu, Mukherjee
In this companion paper to Broll and Mukherjee (2017), we empirically analyse how exchange rate volatilities a ect rms optimal production and exporting decisions. The rms elasticity of risk aversion determines the direction of the impact of exchange rate risk on exports. Based on a exible utility function that incorporates
all possible risk preferences, a unique structurally estimable equation is used to estimate the risk aversion elasticities for a panel of Indian service sector (non- nancial) rms over 2004-2015, using the quantile regression method.
2017-03-01T00:00:00ZOpening the Pandora’s Box – Liberalised Input Trade and Wage Inequality with Non-traded Goods and Segmented Unskilled Labour Markets
http://hdl.handle.net/2259/940
Opening the Pandora’s Box – Liberalised Input Trade and Wage Inequality with Non-traded Goods and Segmented Unskilled Labour Markets
Soumyatanu, Mukherjee
This paper, using a full-employment general equilibrium model for a developing Asian country like India with internationally non-traded goods and international fragmentation in skill-intensive production, illuminates how liberalised input trade, by enhancing demand for skills in the skill-intensive service sectors, could affect the unskilled wages prevailing in the informal sectors and employment conditions in those sectors, through the existence of finished non-tradable and the corresponding domestic demand-supply forces. The model
economy is characterised by dual unskilled labour market with unionised formal and nonunionised informal sectors. Quantitative analyses have also been performed to simulate how the changes in elasticities of factor substitution in production of different sectors account for the movement in informal wage and therefore the movement in skilled–unskilled wage gap. Therefore, the relative wage inequality in a developing Asian country like India with dual labour markets has not been governed only by the increase in the skilled wages.
2016-07-01T00:00:00ZCompounded Inverse Weibull Distributions: Properties, Inference and Applications
http://hdl.handle.net/2259/938
Compounded Inverse Weibull Distributions: Properties, Inference and Applications
Chakrabarty, Jimut Bahan; Chowdhury, Shovan
In this paper two probability distributions are introduced compounding inverse Weibull distribution
with Poisson and geometric distributions. The distributions can be used to model lifetime of series
system where the lifetimes follow inverse Weibull distribution and the subgroup size being random follows either
geometric or Poisson distribution. Some of the important statistical and reliability properties of each of
the distributions are derived. The distributions are found to exhibit both monotone and non-monotone failure
rates. The parameters of the distributions are estimated using the maximum likelihood method and the
expectation-maximization algorithm. The potentials of the distributions are explored through three real life
data sets and are compared with similar compounded distributions, viz. Weibull-geometric, Weibull-Poisson,
exponential-geometric and exponential-Poisson distributions.
2016-12-01T00:00:00ZAdjacent Price Anchoring and Consumer’s Willingness to Pay: A Bayesian Approach
http://hdl.handle.net/2259/937
Adjacent Price Anchoring and Consumer’s Willingness to Pay: A Bayesian Approach
Adhikari, Atanu
Considerable research on consumers' use of psychological reference points exists in
pricing literature. Researchers examining brand choice have reasoned that reference point
is based on past prices of the brand. We argue that consumers’ reference prices is
motivated by the adjacent price of the product at point of display rather than any other
reference prices in the context. This research studies the effect of adjacent price on
consumers’ willingness to pay and purchase intention. This research considers consumer
level heterogeneity since price sensitivity and consumers’ willingness to pay vary among
individual. Hierarchical Bayes methodology is used to incorporate heterogeneity. This
study shows significant difference in consumers’ willingness to pay when a medium
priced brand is placed adjacent to a high priced brand as against adjacent to a moderately
priced brand.; Considerable research on consumers' use of psychological reference points exists in
pricing literature. Researchers examining brand choice have reasoned that reference point
is based on past prices of the brand. We argue that consumers’ reference prices is
motivated by the adjacent price of the product at point of display rather than any other
reference prices in the context. This research studies the effect of adjacent price on
consumers’ willingness to pay and purchase intention. This research considers consumer
level heterogeneity since price sensitivity and consumers’ willingness to pay vary among
individual. Hierarchical Bayes methodology is used to incorporate heterogeneity. This
study shows significant difference in consumers’ willingness to pay when a medium
priced brand is placed adjacent to a high priced brand as against adjacent to a moderately
priced brand.
2016-12-01T00:00:00Z