This paper studies the flow of funds and portfolio behaviour of Indian banks from 1951 to 1994. In this period, financial controls such as variable reserve ratios were important constraints on bank behaviour, especially before liberalization took place in the early 1990s. We estimate a system of...

Applied literature has largely neglected the asset decision of other financial institutions (OFIs), though it may possess important policy implications. In this paper, portfolio behaviour of OFIs in India is modelled by using the annual flow of funds data for 1951/52 to 1993/94. The long-run...

We estimate a flow of funds model for the household sector in India, within the Almost Ideal Demand System (AIDS) framework, and examine the demand for money and the substitution effects between money and other financial assets. The restricted long-run model, obtained using cointegration...

The note examines how negative income taxation may influence incentives to work. The model indicating the income-leisure trade-off is used in both graphical and algebraic forms. The analysis indicates that if both income and leisure are "normal" goods, and if preference patterns are not changed...

J.C. Weldon was a superb analyst with a deep, abiding interest in economic, social, and political problems. This collection of papers, written in honour of his memory, examines a number of the issues that went to make up his wide ranging professional interests.