{"id":32798,"date":"2022-11-14T15:22:36","date_gmt":"2022-11-14T09:52:36","guid":{"rendered":"https:\/\/plyinsight.com\/?p=32798"},"modified":"2022-11-14T15:22:36","modified_gmt":"2022-11-14T09:52:36","slug":"neglect-of-behavioral-economics","status":"publish","type":"post","link":"https:\/\/plyinsight.com\/hi\/neglect-of-behavioral-economics\/","title":{"rendered":"Neglect of Behavioral economics"},"content":{"rendered":"

Any corrective in India must start by seeking the reason why bug data is being applied to microeconomics?<\/p>\n

The result of the neglect of behavioral economics in India is that the policy-making apparatus of the government or, for that matter, even a large corporation, has very little idea of how to potential consumers of the new Yojanas-or products-will respond.<\/p>\n

Or take tax policy. The government continues to tax individuals only on the basis of income but without reference to how the expenditure patterns of those individuals have changed.<\/p>\n

Unlike in the past when fixed costs-rent, food, education and health-of a family might have constituted 50-55 per cent of the income, today they constitute upward of 80 per cent.<\/p>\n

An increasing proportion of this additional 30 per cent is transport and communication, entertainment, and energy. These used to be variable of price elastic. Now they are not.<\/p>\n

This has had a direct impact on the household saving rate, which has naturally been dropping for over 15 years. If 95 per cent of your income is spoken for in one way or another-high fixed costs plus high taxes-how much can you save?<\/p>\n

The thing is that the savings and expenditure patterns of households have a string sociological basis, namely, the urban nuclear family. No one has studied their economics.<\/p>\n

Our economists have not studied all this even though the data is available. So the bureaucrats in the finance ministry have been carrying on as if nothing has changed.<\/strong><\/p>\n

Net, personal income tax policy is no longer informed by modern economics. Old ideas contained in the heads of old economists still dominate. That’s not good.<\/p>\n

TCA Srinivasa Raghavan<\/strong><\/p>\n

\n

\u0935\u094d\u092f\u0935\u0939\u0930\u093e\u0924\u094d\u092e\u0915 \u0905\u0930\u094d\u0925\u0936\u093e\u0938\u094d\u0924\u094d\u0930 \u0915\u0940 \u0905\u0928\u0926\u0947\u0916\u0940<\/strong><\/span><\/p>\n

\n

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\u091f\u0940\u0938\u0940\u090f \u0936\u094d\u0930\u0940\u0928\u093f\u0935\u093e\u0938 \u0930\u093e\u0918\u0935\u0928<\/strong><\/p>","protected":false},"excerpt":{"rendered":"

Any corrective in India must start by seeking the reason why bug data is being applied to microeconomics? The result of the neglect of behavioral economics in India is that the policy-making apparatus of the government or, for that matter, even a large corporation, has very little idea of how to potential consumers of the […]<\/p>","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3528],"tags":[2921,316,1632,1450,603,301,1143,3548],"class_list":["post-32798","post","type-post","status-publish","format-standard","hentry","category-november-articles-22","tag-bharat","tag-budget","tag-consumer","tag-economics","tag-economy","tag-government","tag-india","tag-studied"],"yoast_head":"\nNeglect of Behavioral economics - PLY INSIGHT<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/plyinsight.com\/hi\/neglect-of-behavioral-economics\/\" \/>\n<meta property=\"og:locale\" content=\"hi_IN\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Neglect of Behavioral economics - PLY INSIGHT\" \/>\n<meta property=\"og:description\" content=\"Any corrective in India must start by seeking the reason why bug data is being applied to microeconomics? 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