The Great Inequality Debate

Introduction Simon Kuznets’ seminal 1955 study on income inequality is famous for the inverted ‘U’ hypothesis1 which posits that as an economy develops, inequality first increases and then decreases if a certain level of income is achieved. In his study, Kuznets writes that the study of income distribution “has been plagued by looseness in definitions, unusual scarcity of […]

Lack of harmonisation in taxation of investment vehicles

Clarity on the taxation of Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) as introduced in the Union Budget 2014-15 will benefit the asset management industry in India. However, the lack of uniformity in tax treatment of different investment vehicles continues to be a matter of concern. These investment structures serve the same […]

Digital Currencies and the Larger Questions they Raise

Digital currencies have generated substantial curiosity over the last year, particularly post the favourable1 hearing that Bitcoin, a prominent digital currency2, received at the US Capitol hill in November 2013. There is growing interest in trying to understand what digital currencies really are but they are much confused because of the difficulty in placing them squarely in […]

Pricing in Microfinance: Theory and Empirical Evidence

Rosenberg et al. recently published a report on Microcredit Interest Rates and Their Determinants covering the period 2004 to 20111. The report aggregates financial data for microlenders reporting to MIX2 and comments on the trend and determinants of microcredit interest rates across different geographical regions. This post compares the observations in the report with the MFI model developed by Chaudhary […]

Effect of IFRS on Banks & NBFCs

Recently, I had the opportunity to attend a discussion on International Financial Reporting Standards (IFRS)  which was attended by chartered accountants and key financial stakeholders. In my years as an accountant, I have never come across such heated debate or such polarized views on an accounting topic. Based on these discussions and my reading of IFRS, I […]

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