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Abstract: The paper investigates the causality relationships among energy consumption, carbon dioxide (CO2) emissions and income in India using a dynamic modeling approach. The paper also utilises an innovation accounting method to investigate profiles of the macroeconomic variables persisting from an unanticipated shock in innovation. Our results provide evidence of the existence of bi-directional Granger causality between energy consumption and CO2 emissions in the long-run but neither CO2 emissions nor energy consumption causes movements in real income. There is no causality relationship between energy consumption and income in any direction in the long-run implying that India could follow energy conservation and efficiency improvement policies without impeding economic growth. This will allow India to reduce CO2 emissions without affecting its economic growth and contribute significantly towards combating global warming as well. [Copyright &y& Elsevier]

Summary: Public participation is generally assumed to be a necessary if not fundamental condition for development. Most studies do not, however, question the kind and level of collective action that would be desirable. This paper provides a novel empirical analysis of the impact of collective action on economic development using data for South India. The paper models collective action as endogenous to economic development and distinguishes between its static and dynamic properties. The results show that while excessive activism may harm state income, collective action in the context of responsible bargaining systems may contribute toward increased economic development. [Copyright &y& Elsevier]

Abstract: This paper explores macroeconomic policies that can sustain structural change in China and India. A two-sector open-economy model with endogenous productivity growth, demand driven output and income distribution as an important determinant of economic activity is calibrated to a 2000 SAM for China and a 1999/2000 SAM for India. Short-run analysis concerns temporary equilibria for output, productivity and employment growth rates in the formal sector. In the long-run, the model allows for multiple equilibria which can describe cases of (a) underdevelopment and structural heterogeneity or (b) sustained growth and development. Several simulation exercises are conducted. Specifically, we consider how changes in investment, wages, labor productivity trend and a depreciation of currency affect the macroeconomy and job creation in the formal sector. [Copyright &y& Elsevier]