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Strategic
Privatization and Regulation Policy in Mixed Markets
--
J Hindriks and D Claude
In
this article, the authors consider mixed oligopoly markets
for differentiated goods, where private and public firms compete
either in price or quantity. This is a study of the welfare
effect of privatization interpreted as partial strategic delegation
of the public firm to a private manager with profit concern.
It is shown that partial privatization improves welfare with
`quantity competition' when goods are substitutes; and with
`price competition' when goods are complements. However, full
privatization (complete delegation to private manager) can
never be optimal. It is also shown that a public firm can
make more profit than a private firm in equilibrium, and that
this possibility is more likely under quantity competition.
With regard to market regulation policy, it is articulated
that (i) public and private firms should be taxed in the same
manner; and (ii) price regulation is better than quantity
regulation.
©
2006 IUP . All Rights Reserved.
VAT-Implication
on Supply Chain Management
-- G
V R K Acharyulu and B Krishna Reddy
VAT
basically means the tax likely to be levied on the value added
by an organization, at each stage of its rendering services
or producing goods. It is a simple transparent tax collected
on sale, transfer of goods or services; and has the unflinching
capacity to augment the economic development of a society
through better tax mobilization. VAT will help common people,
traders, industrialists and also the government. It is indeed
a move towards more efficiency, equal competition, and fairness
in the taxation system.
©
2006 IUP . All Rights Reserved.
Resource
Constraints in the North Eastern States: A Comparative Study
of Meghalaya and Nagaland
-- Biswambhara
Mishra and P Srinivasa Suresh
The
north eastern states of India have, of late, developed a `dependency
syndrome'as is evident from an explosive cycle of public expenditure
growth in most of the states of the regioncoupled with an
increasing demand for grants-in-aid and other central assistance
to bridge the gap of large budgetary deficits. The inadequacy
in generating their own sources of revenue to meet the ever
increasing public expenditure growth in these states has given
rise to a volatile fiscal situation. Against this backdrop,
this article studies the extent to which the revenue capacity
of the tax system of these states has been realized; to assess
the overall success of governmenal measures to increase revenue
potentialities of the tax system; and the overall capacity
of the north eastern states to raise the tax-income ratio
over a period of time. By applying four indicators, viz.,
compound growth rate, marginal tax rates, elasticity and buoyancy
coefficients to the north eastern region's tax structure,
the article assesses the fiscal performances of these states
with reference to the objectives. Based on the analysis of
the fiscal capabilities of two representative states of the
north eastern region, namely Nagaland and Meghalaya, the study
concludes that taxation policy of these states, through both
direct and indirect levies, has not been able to bring about
any significant increase in the overall resource mobilization
programs to meet its ever increasing public expenditure. As
a result, the dependence of the states on the center is on
the increase in the recent years.
©
2006 IUP . All Rights Reserved.
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