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Journal of Quantitative Economics

, Volume 17, Issue 4, pp 711–725 | Cite as

Production Sectors and Regions in Macroeconometric Models of India

  • Shashanka BhideEmail author
Original Article
  • 20 Downloads

Abstract

The macroeconometric modelling for India has its focus on providing estimates of macroeconomic parameters at the national level. These models have attempted to capture some of the variations across production sectors and the differences in market and non-market agents. However, the macroeconometric modelling effort so far has not captured the regional dimension of the economy. This paper notes that while there are commonalities in growth pattern across states exhibited by the co-integration of state domestic product in many pairs of states, there are also cases where the commonality is absent. We highlight the need for reflecting a regional dimension in the macroeconometric models either through satellite models or integration with the national models.

Keywords

Macroeconometric models Production sectors Regional models Sectoral dimension Spatial dimension Satellite models State level economies Stochastic production frontier 

JEL Classification

C50 C51 E10 E23 O11 O53 R10 R15 

Notes

Acknowledgements

I am grateful to Prof. K. L. Krishna for his comments and suggestions on an earlier draft of the paper and to Dr. Shesadri Banerjee, Madras Institute of Development Studies, Chennai for his assistance in the analysis of interdependence of state economies reported in the paper. I am also grateful to TIES for the opportunity to address the gathering and benefit from an interaction with the participants. Any errors in the paper are my responsibility.

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Copyright information

© The Indian Econometric Society 2019

Authors and Affiliations

  1. 1.Madras Institute of Development StudiesChennaiIndia

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