adamas university school of economics and commerce · 1 cc cec31101 introductory microeconomics 5 1...

ADAMAS UNIVERSITY

School of Economics and Commerce

Economics

Course Structure and Syllabi

UG & PG

Time Tables

1

PROPOSED COURSE STRUCTURE IN PROCESS

FOR

B.A. / B.Sc. (Hons.) in ECONOMICS

2017-20

2

SCHOOL OF ECONOMICS & COMMERCE

UNDERGRADUATE COURSE STRUCTURE

UNDER CHOICE BASED CREDIT SYSTEM

B.A. / B.Sc. (Hons.) in ECONOMICS

SEMESTER I

CONTACT HOURS PER

WEEK

S

L.

N

o.

TYPE OF

COURSE

COURSE

CODE TITLE OF THE COURSE

L T P C

REMARKS

1 CC CEC31101 INTRODUCTORY MICROECONOMICS 5 1 0 6

2 CC BASIC MATHEMATICS 5 1 0 6

3 AECC ENGLISH LANGUAGE (MIL) 2 0 0 2

4 AEEC PRINCIPLES OF FINANCIAL ACCOUNTING 2 0 2 2

6 GE GENERIC ELECTIVE I 5 1 0 6

SUB TOTAL 22

SEMESTER II

CONTACT HOURS PER

WEEK

S

L.

N

o.

TYPE OF

COURSE

COURSE

CODE TITLE OF THE COURSE L T P C

REMARKS

CC CEC31102 INTRODUCTORY MACROECONOMICS 5 1 0 6

CC BASIC STATISTICS 5 1 0 6

AECC ENVIRONMENTAL STUDIES 2 0 0 2

AEEC FUNDAMENTALS OF FINANCE 2 0 2 2

GE GENERIC ELECTIVE II 5 1 0 6

INT CEC31606 SUMMER SCHOOL /INTERNSHIP One Month Audit, 2

SUB TOTAL 24

SEMESTER III

3

CONTACT HOURS PER

WEEK

S

L.

N

o.

TYPE OF

COURSE

COURSE


REMARKS

CC CEC32101 MICROECONOMICS 5 1 0 6

CC CEC32103 INDIAN ECONOMY SINCE INDEPENDENCE 5 1 0 6

CC CEC32105 MATHEMATICAL ECONOMICS 4 0 2 6

SEC MBA32121 PRINCIPLES OF HUMAN RESOURCE

MANAGEMENT 2 0 0 2

GE GENERIC ELECTIVE III 5 1 0 6

OE ELECTIVE School of E& T/Science 5 1 0 6 Optional

SUB TOTAL

26

SEMESTER IV

CONTACT HOURS PER

WEEK

S

L.

N

o.

TYPE OF

COURSE

COURSE

CODE TITLE OF THE COURSE

L T P C

REMARKS

CC CEC32102 MACROECONOMICS 5 1 0 6

CC CEC32104 DEVELOPMENT ECONOMICS 5 1 0 6

CC CEC32106 STATISTICAL METHODS 4 0 2 6

SEC BUSINESS REGULATORY FRAMEWORK 2 1 0 2

GE GENERIC ELECTIVE IV 5 1 0 6

OE ELECTIVE School of Management/Law/Social

Science 5 1 0 6 Optional

SUMMER INTERNSHIP One Month Audit, 2

SUB TOTAL

28

SEMESTER V

CONTACT HOURS PER

WEEK

S

L.

N

O.

TYPE OF

COURSE

COURSE


REMARKS

CC CEC33101 COMPARATIVE ECONOMIC DEVELOPMENT 5 1 0 6

CC CEC33103 BASIC ECONOMETRICS 4 0 2 6

DSE DISCIPLINE SPECIFIC ELECTIVE I 5 1 0 6

DSE DISCIPLINE SPECIFIC ELECTIVE II 5 1 0 6

SUB TOTAL

24

SEMESTER VI

4

Discipline Specific Electives (DSE):

Students are required to study FOUR elective Papers from the Major/ Hons discipline during semester V

and VI. The list of the electives are given below.

Choose any Two in Semester-V Choose any Two in Semester-VI

1. Public Finance CEC33105 5. International Trade CEC33106

2. Industrial Economics CEC33107 6. Labour Economics CEC33108

3. Economics of Health and Education CEC33109 7. Environmental Economics CEC33110

4. 8.

ABBREVIATIONS:

CC : Core Course

AECC: Ability Enhancement Compulsory Course

AEEC: Ability Enhancement ElectiveCourse

SEC : Skill Enhancement Course

GE : Generic Elective Course

DSE : Discipline Specific Elective Course

OE : Open Elective Course

List of Generic Electives:

1. Mathematics

2. Statistics

3. Political Science

CONTACT HOURS PER

WEEK

S

L.

N

o.

TYPE OF

COURSE

COURSE


REMARKS

CC CEC33102 MONEY, BANKING & FINANCIAL MARKETS 5 1 0 6

CC CEC33104

OPEN ECONOMY MACRO AND ITS

GOVERNANCE 5 1 0 6

DSE DISCIPLINE SPECIFIC ELECTIVE III 5 1 0 6

DSE DISCIPLINE SPECIFIC ELECTIVE IV 5 1 0 6

CEC33412 PROJECT 0 2 0 6 OPTIONAL

SUB TOTAL

24

TOTAL

(REQUIRED CREDIT) 148

5

4. Sociology

5. History

6. Psychology

List of Generic Electives offered from Department of Economics:

1. Introductory Microeconomics

2. Introductory Macroeconomics

3. Indian Economy since Independence

4. Development Economics

6

FIRST YEAR

Semester I

7

INTRODUCTORY MICROECONOMICS

[CEC31101: CC/Credit-6]

This paper will introduce students with subject matter of Microeconomics around economic

agents. Broadly the paper discusses the behaviour of the consumers at the demand side of the

economy, the decision making process by the producers at the supply side of the economy in

terms of theories of production and cost structures. How the consumers and producers in a

simple framework of competitive market interact with each other will be taught under Market.

The simple most market structure being the Perfectly Competitive Market will be elaborated in

details to lay the foundation of allied theories of different markets. The paper also explores how

institutional interventions influence the decision making process of economic agents in an

economic system. This course is designed to build strong foundation in undergraduate students

of Economics as a pre-requisite to allied papers to be taught in consecutive semesters. The

students will learn to apply their mind in assessing rational decision making processes of

different economic agents and their interaction at the end of the semester.

Unit 1: Basics of Demand and Supply

Conceptual framework of Microeconomics – Positive and Normative – Science of Decision

making – Economic Agents – Producers and Consumers – Law of Supply and Demand –

Determinants, Exceptions – Types of commodities: Substitutes, Complementary goods -

Equilibrium determination – Elasticity of Demand – Point elasticity - Income Elasticity – Cross

Price Elasticity – Long and Short Run elasticities

Unit 2: Theory of Consumer’s Behaviour

Concept of Utility - Cardinal and ordinal utility - Consumer Preferences – Preference ordering –

Revealed preference approach;

Basic assumptions about preferences - Indifference Curve - Indifference Maps - Marginal Rate

of Substitution - Shape of Indifference curves - Perfect substitutes - perfect complements -

Budget Constraint - Budget Line - Effects of changes in income and prices - Consumer choice -

condition for optimal choice - Individual Demand - Income Effect and Substitution effect –

Slutsky Equation - From individual to market demand – Price consumption Curve – Engel

Curve - Elasticity of Demand – Consumer Surplus

Unit 3: Theory of Production

Production Decision of a firm - Production function - short run versus long run production -

Production with one variable input - TP, AP, MP - Law of diminishing marginal return -

8

Production with two variable inputs - Input flexibility - Input substitution – Isoquant curve -

MRTS - Returns to scale;

Unit 4: Cost of Production

Different types of costs - opportunity cost, sunk cost - fixed cost, variable cost - Costs in the SR

production, TC, AC, MC, Cost curves - Costs in the LR production, LR cost curves, relation

between SR and LR cost curves - Input choices, Iso-cost line, Change in technology and change

in input prices - Optimal choice of inputs, Expansion path - Economies of Scope, Economics of

Scale, Learning Curve;

Unit 5: Market under Perfect Competition

Perfectly competitive markets – Assumptions - profit maximization – Marginal Revenue,

Marginal Cost and Profit Maximization – Choosing output in the Short run – Short run profit –

Short run supply – Elasticity of Market Supply – Producer’s Surplus; Choosing output in Long

run – Long run profit maximization - Long run Competitive equilibrium – Economic Rent -

Producer’s Surplus in Long run – Industry’s Long run Supply Curve – Constant cost Industry –

Increasing Cost Industry – Decreasing cost industry – The effects of a tax – Long run elasticity

of supply;

Unit 6: Institutions and Competitive Markets

Gains and Loss from Govt. Policies – Consumer and Producer surplus – Market Efficiency –

Price Ceiling and floor – Price support system – Production quotas – Import Quota and Tariff –

Taxes and subsidy: Impacts;

Text:

1. Microeconomics. R. S. Pindyck, D.L. Rubinfeld, and P.L. Mehta. Pearson, India,

7thedition, 2013

References:

2. Microeconomics: Theory and Applications. G.S. Maddala, and E. Miller. McGraw Hill

Education (India) Private Limited; 3rd

edition, 2004.

3. Modern Microeconomics. Koutsoyiannis. Palgrave Macmillan; 2nd

edition, 2008.

4. Principles of Microeconomics. D. Salvatore. Oxford University Press (5th or later

edition).

5. Microeconomic Theory. Ferguson, and Gould. All India Traveler Book Sellers (6th

edition).

Intermediate Microeconomics: A Modern Approach. H.R. Varian. East West Press; 8th edition

(2010).

9

BASIC MATHEMATICS


Knowledge of mathematics is pre-requisite to understand the modern theoretical as well as

applied economics. This course is a review course to help students brush up their high school

mathematics and getting a foothold of basic mathematical tools needed for the beginners of

economics. This course will help them to understand the basics of linear algebra, different

functional forms, and graphical presentation. They will learn to solve linear equation system, and

its application in equilibrium determination. It will continue to strengthen the basic knowledge of

mathematics for Economics students. The objective is not to transmit any particular body of

economic theory, but to transmit the body of basic mathematics that enables the creation of

economic theory in general. The emphasis is on the understanding and developing the skill in the

application of mathematical theorems and techniques in economics.

Unit 1: Basic Algebra

Representation, Evaluation, Logic and proof techniques; Solving simple equations, Inequality

signs. Basics of Trigonometry.

Definition of a set, Different types of Set, Operations on sets; Concepts of ‘range’, ‘domain’ and

‘mapping’; Nested sets.

Number system, Real Line, The Plane, Cartesian product; Concept of Euclidean Space. Points

and lines in Euclidean space.

Unit 2: Graphs and Functions

Graphs- line, curves, slopes, tangent; Functions- Elementary types of functions: quadratic,

polynomial, power, exponential, logarithmic; Sequences and series: convergence, algebraic

properties and applications; Continuous functions: characterizations, properties with respect to

various operations and applications; Differentiable functions; Homogeneous functions;

Homothetic functions.

Graphs- Graphs of linear functions, non-linear functions, Geometric properties of functions:

convex functions, concave function.

Unit 3: Linear Equations

10

Simultaneous linear equation, solving simultaneous linear equations, Graphical solution,

Equating to same variable-Substitution, Row operations. Solving in case of more than two

unknowns.

Application: Static Equilibrium Analysis.

Unit 4: Matrix Algebra

Introduction to matrix, Matrix operation- addition, subtraction, matrix multiplication, transpose;

Determinants- Minors, cofactors, adjoint, inverse. Special kind of matrices- Diagonal,

nonsingular, symmetric. System of linear equations in matrix form, Cramer’s rule.

Unit 5: Differential Calculus

The differential calculus, Rules for differentiation, Differentiability and Continuity, Using first

derivative for graphs, Second derivative and convexity. Derivatives of different functional forms.

Partial differentiation, Second-order partial derivatives, Total differentials and total derivatives.

Applications: Marginal revenue and total revenue, Marginal cost and total cost, Point elasticity

of demand, Tax yield, The Keynesian multiplier.

Unit 5: Integral Calculus

Concept of integral calculus. Areas under curves; indefinite integrals; the definite integral.

Applications: Consumer Surplus, Producer Surplus, from marginal function to a total function,

Investment to capital formation.

Readings:

1. Simon, Carl. P., Blume, Lawrence. (2010). Mathematics for Economists, Norton.

2. Rosser, Mike (2003), Mathematics for Economists, Second Edition, Routledge.

3. Chiang, Alpha and Kevin Wainwright (2013), Fundamental Methods of Mathematical

Economics, Fourth Edition, McGraw-Hill

4. Sydseater, K., Hammod, P. (2002). Mathematics for Economics Analysis. Pearson Education

India.

11

PRINCIPLES OF ACCOUNTING

[########: AEEC/Credit-2]

COURSE DESCRIPTION

Economics as a discipline does not deal with any free commodity be it output or input. Every

output or input must command a price – explicit or implicit, in order to be studied in the

discipline of Economics and as such Economics has usually a quantitative dimension with

regard to transactions inside and outside the markets. Wherever transactions take place, there

are two sides – income (credit) and outgo (debit). Hence In the fields of business as well as

administration knowledge of accounting is imperative side by side with the knowledge of

economics like preparation of budget statement in public finance and preparation of balance

of payment statement in international trade. This is the first course in accounting. The course

begins with the definition of accounting, types of accounting, basic concepts of accounting

and covers basic accounting topics such as accounting cycle; accounts hierarchy (account

classes, account groups, accounts, subsidiary accounts), journal entries related to sales,

purchases, collections, payments, and expenses. Posting, accounting of depreciation,

accounting of current assets and current liabilities; trial balance, preparation of financial

statements, and closing/opening entries are also included in this course.

OBJECTIVES

1. Appreciate the relevance of accounting in economics

2. Acquiring basic knowledge of accounting such as to be able to comprehend issues in

daily life as well as academics that crop from interdisciplinary areas like banking and

finance.

CONTENTS

Unit 1: Theoretical Framework

Meaning and Scope of Accounting; Accounting Concepts; Accounting, Principles, Conventions and

Standards – Concepts, Objectives, Benefits; Accounting Policies; Accounting as a Measurement

Discipline – Valuation Principles, Accounting Estimates

12

Unit 2: Accounting Process

Documents & Books of Accounts: Invoice, Vouchers, Debit & Credit Notes, Day books, Journals,

Ledgers and Trial Balance – Capital and Revenue: Expenditures and Receipts; Current Assets and

Current Liabilities, Contingent Assets and Contingent Liabilities – Rectification of Errors

Unit 3: Depreciation Accounting

Methods, Computation and Accounting Treatment of Depreciation; Change in Depreciation Methods

Unit 4: Preparation of Final Accounts

Preparation of Profit & Loss Account, Balance Sheet, Cash Flow Statement, Projection of Cash Flow,

Dynamic Balancesheet

References

1. Fundamentals of Accounting and Auditing, The Institute of Company Secretaries India

2. Accounting for Non-accounting Students, John R Dyson, Pearson Education, 2010

13

FIRST YEAR

Semester II

14

INTRODUCTORY MACROECONOMICS


The course is in continuation of Introductory macro economics offered in semester-II to

B.A(Hons) Economics students. After completion of the course students will be able to apply the

tools of aggregate demand and supply to analyze implications of different macroeconomic

policies as well as standard macroeconomic debates on inflation and unemployment.

Unit 1: Aggregate Demand and Aggregate supply Analysis

Derivation of the Aggregate Demand curve using IS-LM curve; Shifts of the AD curve;

Derivation of the AS schedule from the Labour market equilibrium; Analysis of the fiscal and

monetary policy using AD-AS schedule; Keynes vs Classics using AD-AS framework.

Unit 2: Expectation

Role of expectation; Adaptive Expectation; Rational Expectation; Lucas Critique and policy

ineffectiveness.

Unit 3: Inflation and Unemployment

The short-run trade -off between inflation and unemployment; Phillips Curve; Shifts in the

Phillips curve;; Natural Rate of unemployment ;The Phillips curve and the Aggregate supply

curve; The debate

Suggested Readings;

1. Macro Economics, R Dornbusch, S Fischer ; Mc Graw Hill Education(Sixth Edition);

2005

2. Principles of Macroeconomics. N. G. Mankiw. South-Western Cengage Learning (6th

edition),2012.

3. Macroeconomics. N. G. Mankiw. Macmillan; 6th

edition (2008)

4. Olivier Blanchard, Macroeconomics, Pearson Education, Inc., 5th edition, 2009.

5. Steven M. Sheffrin, Rational Expectations, Cambridge University Press, 2nd

15

edition, 1996.

BASIC STATISTICS


The main objective of this course is to train the students to use the techniques of statistical

analysis, which are commonly applied to understand and analyze economic problems. The paper

deals with simple tools and techniques, which will help a student in data collection, presentation,

and to understand the basic descriptive properties of the data. This paper introduces the concept

of bivariate data and their application in real life. A major emphasis is given on the fundamental

knowledge of probability where the true essence of statistics lies.

Unit 1: Introduction to Statistics

Basic concepts: Population, Sample, Parameter; Techniques of data collection- Sampling vs.

Population, primary and secondary data. Classification and presentation of data. Graphic and

diagrammatic representation of data. Frequency distribution and its diagrammatic representation.

Unit 2: Measures of Central Tendency

Arithmetic Mean, Median and Mode for grouped and ungrouped data, Comparison of Mean,

Median and Mode, Geometric and Harmonic Mean, Composite Mean.

Application: Index Numbers: Index number as weighted averages, Price and quantity index

numbers, Cost of Living Index Number, Wholesale Price Index, Stock market indices.

Unit 3: Measures of Dispersion

Range, Mean Deviation, Quartile Deviation and Standard Deviation, Measures of Relative

Dispersion, Curve of Concentration

Application: Measurement of Economic Inequality: Gini Coefficient and Lorenz Curve.

Unit 4: Moments, Skewness, Kurtosis

Central and non-central moments, different measures of skewness and kurtosis.

Unit 5: Bivariate Data

16

Definition of bivariate data, scatter diagram, bivariate frequency distribution-Simple and

multiple correlation and regression. Covariance as a measure of association; Coefficient of

Correlation; Rank correlation; Difference between correlation and regression approach.

Unit 6: Probability Theory

Elements of Probability Theory: Sample Space, Probability Space, Events, Classical Definition

of Probability. The Addition Rule, the Multiplication Rule, Theorems of Total Probability,

Conditional Probability and Statistical Independence. Limitations of the Classical definition,

Frequency definition, Axiomatic Approach, Bayes’ Rule.

Readings:

1. Lind, Marchal, Wathen. Basic Statistics for Business and Economics, McGraw Hill Education;

Seventh edition (2013).

2. Goon, Gupta, Dasgupta – Fundamentals of Statistics, Vol I, World Press Private limited

(2016).

3. Gupta, S. C., Kapoor, V. K. Fundamentals of Mathematical Statistics. Sultan Chand & Sons

(2014).

17

FUNDAMENTALS OF FINANCE

[########: AEEC/Credit-2]

This course starts with the concept of time value of money, continues with the risk literature and ends at

financing decisions by a firm. As a store of value money transmits the value to the assets and that value

accretes through trading and revenue earning. Depending on the nature and issuer of the asset the speed

and quantum of accretion varies. This is the risk element an asset is fraught with. The concepts of risk and

return in finance go hand in hand because higher risk means discounting with a higher rate of return.

Finance literature revolves around the concept of time value of money that is based on present value or

compound value of an asset or liability on case to case basis. Consumption and investment are the two

most important components of national income. Finance comes to the picture when a consumer buys a

product on credit, not on cash, that attracts interest and other charges which has future implications unlike

cash purchase where the transactions end then and there. The credit purchase is financed by a third party

who could be different than the producer of the goods purchased. All investments have underlying

financial principles because investments aim at future earnings.

Objectives

To learn

1. how Finance literature evolves as separate branch of Economic literature,

2. the basics such as to prepare for competitive examination, and

3. how financing decisions are taken in workplaces

Unit 1: Time Value of Money

• Definition and Functions of Money

• Money as a store of value

• Concept of financial security and their classification in terms of liquidity

• Creation of Asset Out of Money - Issue of Securities - Securitization

• Concepts of Present Value and Compound Value of an asset

• Valuing Securities - Bonds and Common Stocks

• Net Present Value and Other Investment Criteria for making Investment Decisions

• Concepts of Projects and Project Finance

Unit 2: The Risk Literature

• Concepts of Risk and Return

• Concept of Investment Portfolio

• Capital Asset Pricing Model

• Concept of Project Risk

18

Unit 3: Options

• Concepts of Financial Securities

• Concepts of Options

• Concept of Real Options

Unit 4: Financing Decisions

• Concept of Efficient Market

• Behavioural Finance

• Concept of Corporate Finance

Reference: Principles of Corporate Finance, R A Brealey, S. C. Meyers, Franklin Allen, McGraw-Hill

Irwin, New York, 10th Edition.

19

SUMMER SCHOOL / INTERNSHIP


Summer internship will be of one month duration, during the summer vacation after the end

semester exams of Semester IV. The students will be given a list of internship opportunities with

NGOs, civil society organisations, think tanks, governmental agencies and private companies. At

the successful completion of summer internship, students have to submit a detailed internship

report. Students will receive certificates both from the organisation and the University.

20

SECOND YEAR

Semester III

21

MICROECONOMICS


Course Objective: This paper will introduce students with more complicated issues of

Microeconomics around different market structures under imperfect competition like monopoly

and monopolistic competition. Different types of pricing strategies and market power adopted by

of the producers. This paper also gives brief idea about other imperfectly competitive markets

under oligopoly. The theoretical concepts of theories of distribution will be covered. In addition

the conflicts of efficiency versus equity along with general idea of welfare are also discussed.

Finally the students will be introduced to major problems associated with market failure.

Unit 1: Market under imperfect competition: Monopoly and Monopsony

Monopoly: Average and Marginal Revenue – Output decisions – rule of thumb pricing – shifts in

demand – effect of tax; Monopoly power: measures, sources; Social cost of monopoly power:

rent seeking behaviour, price regulation; Natural Monopoly; Monopsony: sources of monopsony

power, comparison with monopoly; Bilateral monopoly;

Unit 2: Pricing under Market Power

Pricing with Market Power: First, Second and Third degree Price discrimination; Intertemporal

Price discrimination – Peak Load Pricing – Two part Tariff – Bundling;

Unit 3: Market under imperfect competition: Monopolistic Competition

Monopolistic Competition: Equilibrium in Short and Long run - Economic Efficiency;

Unit 4: Market under imperfect competition: Oligopoly

Oligopoly: Equilibrium – The Cournot Model - Stackelberg Model - Pricing under homogenous

products: Bertrand Model - Pricing under differentiated products;

The Payoff Matrix of a Game - Nash Equilibrium - Competition versus Collusion: Prisoner’s

Dilemma – price Rigidity and Kinked Demand Curve Model - Price Leadership – Cartels, Cartel

pricing;

Unit 5: Microeconomic theory of Distribution

Product Exhaustion theorem; Land – Theory of Economic Rent (genesis in a rent, rent in a

market economy); Theory of Profit - Theory interest – wage rate – backward bending labour

supply curve;

22

Unit 6: Market Failure

General Equilibrium: Edgeworth Box Diagram - Efficiency and Equity;

Markets with asymmetry of information – Uncertainty and Market Failure – Market Signalling –

Moral Hazard – Principal-Agent Problem – Efficiency wage theory;

Externalities: Positive and Negative – Externality and property rights - Public goods – Public

Goods and Market failure; private return and public return, private and public cost – examples in

public expenditure in education;

Text:

1. Microeconomics. R. S. Pindyck, D.L. Rubinfeld, and P.L. Mehta. Pearson, India,

7th

edition, 2013

References:

2. Microeconomics: Theory and Applications. G.S. Maddala, and E. Miller. McGraw Hill

Education (India) Private Limited; 3rd

edition, 2004.

3. Modern Microeconomics. Koutsoyiannis. Palgrave Macmillan; 2nd

edition, 2008.

4. Principles of Microeconomics. D. Salvatore. Oxford University Press (5th or later

edition).

5. Microeconomic Theory. Ferguson, and Gould. All India Traveler Book Sellers (6th

edition).

6. Intermediate Microeconomics: A Modern Approach. H.R. Varian. East West Press; 8th

edition (2010).

23

INDIAN ECONOMY


This course will be relevant to the students in terms of the overall Indian economic experience

since independence. The basic trajectory of Indian economic (capitalist) development is to be

covered with special emphasis on the shift from a mixed economy towards market orientation.

Four economic spheres - production, distribution, trade and finance are to be followed to bring

out the major changes in the Indian economy.

Unit-1: Indian Economy at the time of Independence

Features of Indian Economy around 1947-1950 and characteristics of economic

underdevelopment of India (with reference to colonial rule of India)

Unit-2: Planning: Evolution of India’s Development Goal and Strategy

The background and Structure of Indian Planning, Structural Constraints and India’s

development strategy – Choice of industrialization strategies – public vs. private sector, capital

goods versus consumer goods – Mahalanobis Plan Model (basic argument), import substitution

vs. export promotion strategy; Agriculture-industry relationship – demand side and supply side

linkages– agriculture-industry terms of trade - food crisis of the 1960s and imperatives for

agricultural growth, genesis of green revolution – fourth plan (basic argument); Poverty

Eradication, foreign aid and self-reliance – Fifth Five Year Plan Model (basic argument);

Regional inequality in India – causes; policies for balanced regional development; Planning

deficiencies and its abandonment– 7th

five year plan and Indian economic crisis

Unit-3: New Reform Policy

Context, liberalisation, market and state (introduction), privatisation, disinvestment policy,

consequences, impact on growth and employment

Unit-4: Production and distribution

Agriculture- Characteristics, Land Reforms, Evaluation, Green Revolution, Agricultural policies

and pricing, rural credit and institutionalisation; Industry- Structure and composition of Industry

– issues of concentration, large vs small industry – industrial location, small scale reservation

policy, trends and patterns of industrial growth, industrial Policies – industrial licensing system,

Growth of the Service Sector, Inclusive development;; Food security, Food Procurement and

Public Distribution System

24

Unit-5: Trade and finance

Foreign trade regime, protection and foreign competition, Productivity; import substitution

versus export Competitiveness, effect on export competitiveness, foreign policy in the post-

liberalisation period; Finance- Nationalisation, fixed vs. Flexible exchange rate system,

Privatisation, foreign capital, land acquisition, SEZ

Unit- 6: Employment, Wages and Inflation

The trends and pattern of employment and wages in India – informalisation and tertiarisation of

employment - problems of unemployment and under-employment, Government policies on

employment and wages and employment – employment guarantee scheme – minimum wage,

Movement of prices in India – –trends and patterns – causes, consequences and policies adopted

Readings on India:

1. Contemporary Issues of Indian Economy. DhirendraNathKonar. Akansha Publishing

House; 1st edition (2009)

2. Indian Economy: Performance and Policies. Uma Kapila. Academic Foundation; 15th

Revised edition (2015)

3. The Indian Economy: Problems and Prospects. Bimal Jalan (ed.); Penguin

4. Indian Economy. A.C. Fernando. Pearson

5. S Chakraborty. 1987. Development Planning: The Indian Experience. Clarendon

Press.

6. Vaidyanathan A.1994. Performance of Indian Agriculture since Independence in

Kaushik Basu (ed.) Agrarian Question, Oxford University Press.

7. C D. Wadhwa. Some problems of India’s Economic Policy, Tata McGraw Hill.

8. J. Sachs, A Varshney and N Bajpai (ed). India in the Era of Economic Reforms.

Oxford University Press.

9. I, Judge Ahluwalia. 1985. Industrial Growth in India since the Mid-sixties. Oxford

University Press.

10. PC Joshi. 1975. Land Reforms in India: Trends and Perspectives. Allied Publishers:

New Delhi.

11. Pramit Chaudhuri. 1979. Indian Economy: Poverty and Development.George Allen

and Unwin, London.

25

MATHEMATICAL ECONOMICS


This course intends to equip the students with mathematical analysis of the economic problem

they are learning in fundamental courses like microeconomics and macroeconomics. The basic

mathematics course in first year has laid down the ground for this course where a higher level of

mathematics will be taught and students will learn to apply it with real life data. This course is a

mapping of mathematical tools into economic theories, where the students will be dealing with

more complex theorems and their formulation and interpretation. The concept of optimization, in

unconstrained and constrained set up, is the core of the course. Moreover, different economic

models in discrete and continuous time frame will be taught where the concept of difference

equation and differential equation has been applied.

Unit 1: Unconstrained Optimization

Concept of optimization. First-order conditions, Second-order conditions, Global maxima and

minima.

Applications- Profit maximization, Inventory control, Comparative static effects of taxes.

Unit 2: Constrained Optimization I

Constrained optimization and resource allocation, Equality Constraints, Inequality Constraints.

The Lagrangean technique for optimization: constrained optimization with two variables, first

order condition, second-order conditions; Constrained optimization with more than two

variables.

Application: Consumer’s utility maximization, Firm’s cost minimization.

Unit 3: Constrained Optimization II

Kuhn-Tucker Formulation- Non-negativity restrictions, Inequality constraints, Interpretation;

Maximum Value Function, Envelope Theorem- for unconstrained optimization, for constrained

optimization. Interpretation of Lagrange Multiplier.

Unit 4: First Order Difference Equation: Discrete Time

Discrete time, Differences, and Difference Equation; Solving a first order difference equation;.

Application: The Cobweb Model, Dynamic stability of equilibrium.

26

Unit 5: First Order Differential Equation: Continuous Time

Continuous time, Differential Equations. First order differential equation- with constant

coefficient, with variable coefficient. Solving linear differential equation. Application: Market

Model, Time path, Dynamic stability of equilibrium.

Readings:

1. Simon, Carl. P., Blume, Lawrence. (2010). Mathematics for Economists, Norton.

2. Rosser, Mike (2003), Mathematics for Economists, Second Edition, Routledge.

3. Chiang, Alpha and Kevin Wainwright (2013), Fundamental Methods of Mathematical

Economics, Fourth Edition, McGraw-Hill

4. Sydseater, K., Hammod, P. (2002). Mathematics for Economics Analysis. Pearson Education

India.

27

SECOND YEAR

Semester IV

28

MACROECONOMICS


This course is in continuation of Introductory Macroeconomics . Students are already aware of

the aggregate consumption function and investment function. In this course they will be

introduced with the micro foundation of these macro aggregates. A brief introduction with open

economy will also be used along with the long run dimension of economic growth.

Unit 1: Micro foundations of Macroeconomic aggregates

Consumption; Keynesian consumption function, inter-temporal choice, life cycle and permanent

income hypothesis.

Investment—business fixed investment, neo-classical approach, Tobin's q, Residential

investment and accelerator model of inventories; Dixit’s model of investment theory;

Unit 2: Theory of Demand for Money

Demand for money; Tobin’s portfolio balance approach; Baumol’s model of demand for

money;

Unit 3: Open Economy Macroeconomics

IS-LM framework in open Economy; Capital mobility, role of expectation; covered-uncovered

interest rate parity;Fiscal and Monetary policy under short-run open economy; The Mundel-

Flemming Model;Balance of payment; exchange rate determination; different types of exchange

rate ;

Unit 4: Long-run analysis: Economic growth

Cross-country evidence of economic growth; Production function and economic growth; Harrod-

Domar model of economic growth; Solow model of economic growth


2005

2. Principles of Macroeconomics. N. G. Mankiw. South-Western Cengage Learning (6th

edition),2012.

3. Macroeconomics. N. G. Mankiw. Macmillan; 6th edition (2008)

4. Olivier Blanchard, Macroeconomics, Pearson Education, Inc., 5th edition, 2009.

29

5. Charles I Jones, Introduction to economic growth , second edition, Viva-Norton Student

Edition

DEVELOPMENT ECONOMICS


This course aims at a basic introduction to the ideas of growth and development. A chronological

development of the measures of development and the major theoretical works is to be attempted

to make it clear to the students that development is a multidimensional process and need to be

addressed accordingly. Finally, the recent advances in the direction of free trade as a vehicle of

development are to be discussed.

Unit-1: Concepts and measures of development

Nature, Questions and Values of Development, Meanings of development – economic growth,

redistribution form growth and capabilities approach to development, objectives of development;

measures of development- purchasing power parity and per capita income as an index of

development, difference between growth and development, human development index,

characteristics of a developing economy

Unit-2- Growth theories

Classical growth theory, Theories of transition – Clark and Fisher on change in sectoral share,

Rostow’s stages of growth; Kuznets’s characteristics of Growth; Industrialisation, Growth and

Kaldor’s growth laws; production-function approach - Harrod-Domar growth model, Neo-

classical growth theory, endogenous growth theories

Unit 3- Development theories

Underdevelopment as a coordination failure, multiple equilibria, different approaches- vicious

cycle of poverty, circular causation, the Big Push, balanced and unbalanced growth; Dual

economy Models- Lewis, Harris-Todaro, Trap models- Nelson and Leibenstein, Choice of

technique in a labour suplus economy, Two gap model, Dualism

Unit-4: International- dependence Revolution

The Neocolonial Dependence Model, the False paradigm model, the dualistic-development

thesis, the Marxian legacy

Unit-5: Development- Population, Inequality and Poverty

30

Concepts of Population: definitions of fertility, mortality, birth rates, death rates, fertility rate,

life expectancy, infant mortality rate, youth dependency ratio; Theory of demographic transition.

Meaning of inequality, Measures of Inequality - Lorenz Curve, Range, Coefficient of variation,

Gini-coefficient, Kuznet’s Inverted U hypothesis.

Poverty, relative and absolute deprivation with respect to income, Poverty line, Poverty measures

– Head count ratio, Poverty gap ratio, Income gap ratio, Human Poverty Index.

Readings:

1. Growth and Development. A.P. Thirlwall. Palgrave McMillan; 8th edition (2010)

2. Development Economics. Debraj Ray . Oxford University Press; 1st edition (1999)

3. Economic Development. M.P. Todaro, and S.C. Smith. Pearson India; 10th edition

(2011)

4. Recent Economic Growth in India: Contemporary Issues. S. Gupta, and A. K. Mohapatra.

Prateeksha Publications (2011)

5. Leading Issues in Economic Development. G.M. Meier and J.E. Rauch.. Oxford

University Press (2005)

6. India: Leading Issues in Economic Development. R. K. Mishra. Academic Foundation;

2nd edition (2014)

7. K. Basu. Analytical Development Economics: The Less Developed Economy Revisited.

Oxford University Press

31

STATISTICAL METHODS


This course aims to build up the advanced knowledge on the basic statistics taught in the first

year. Here students will learn more tools and techniques which are useful for analyzing

economic issues in real life. Concept of random variable and their probability distribution are the

main focus of the paper. Students will learn the concept of statistical independence and joint

probability distribution in case of bivariate data. The difference between population and sample,

why sampling is required for any study, has to be understood clearly before one delves into

statistical analysis. In this paper students will get an idea of sampling theory and techniques and

also learn sampling distribution and its different forms.

Unit 1: Random Variables and Probability Distributions

Definition of random variable: discrete and continuous random variable, probability mass

function and probability density functions, Expectation and Variance of random variables,

Univariate Probability Distributions: Binomial, Poisson, Normal and Standard Normal

Distribution. Skewness and Kurtosis. Moment Generating Functions.

Unit 2: Bivariate Data and Joint Probability Distribution

Concept of Bivariate data; Joint Probability Distribution: Statistical Independence, Marginal and

Conditional Distribution. Descriptive statistics of the distribution.

Unit 3: Sampling Theory

Population and Sample, Parameter and Statistic, Random Sampling: Methods of Drawing

Random samples (with and without replacement), Circular systematic sampling. Basic Concepts

of different methods of sampling –Stratified Sampling, clustered sampling, multistage sampling,

purposive sampling

Unit 4: Sampling Distribution and their uses

32

Sampling Distribution, Standard Error, Sampling Distributions associated with Normal

Population, Law of Large number. Derived Distributions: Chi-Square Distribution, Student’s t

Distribution, F Distribution, Fisher’s t distribution, concept of degrees of freedom.

Elementary ideas of point estimation- population mean-sample mean, small sample test and t-

distribution, Chi-Square Distribution and non-parametric test.

Readings:

1. Jay L. Devore, Probability and Statistics; Seventh Edition; Cengage Learning, 2010.

2. Goon, Gupta, Dasgupta – Fundamentals of Statistics, Vol I, World Press Private limited

(2016).

3. Gupta, S. C., Kapoor, V. K. Fundamentals of Mathematical Statistics. Sultan Chand & Sons

(2014).

33

THIRD YEAR

Semester V

34

COMPARATIVE DEVELOPMENT EXPERIENCE


Capitalism, when compared with the other previous modes of production in the history of

mankind, is a comparatively recent phenomenon (originality in Western Europe since the 14th

century). It is marked by a continuous urge towards greater marketable production and profit

motive, backed by technological advancements and specialized division of labour. In this paper,

we trace the development of capitalism in the West and the challenges that emerged in the post

World War II scenario, especially in relation to the third world economies (the developing

countries), both theoretically and practically. The shifts in the capitalist discourse in the recent

neo-liberal regime are finally attempted here for a better understanding of globalization.

Unit 1: Genesis of capitalism

Enlightenment, modernity, capitalist development and poverty eradication, different types of

social organization, feudalism, precapitalist societies other than feudalism, capitalism in the

West, Industrial revolution in Great Britain - Causes – Why Great Britain became the pioneer,

Mercantilism, physiocrats, Adam Smith and the labour theory of value, colonialism, imperialism

Unit 2: Industrialization Experiences in Early Part of 20th Century

Capitalism vs socialism, The Great Debate in Soviet Union on the assignment of priority on

development of heavy industry in the process of planned economic development;

The Great Depression of the 1930’s and recovery – Experiences of USA and Great Britain.

Unit 3: Post Second World War Development Scenario

The World Bank approach - Global Change, Welfare state and mixed economy, Post War global

institutions: International Monetary Fund, World Bank, United Nations Conference on Trade and

Development, Development as a programme, Trade- Infant industry argument, Import

substitution versus export promotion in less developed countries. Illustrations from South Asia,

Latin America and East Asia. FDI, MNCs, portfolio investment.

35

Unit 4: Development and underdevelopment as historical processes

Transition to capitalism as underdevelopment: Center-periphery, unequal exchange, Dependency

Approach., regulation theory on a world scale; world system theory. Transition beyond

capitalism- post-developmentalism

Unit 5: Evolution of New international economic order.

Neo liberalism, Washington consensus, North-South Divide, Recasting of IMF and World Bank,

General Agreements on Tariff and Trade (GATT) and the Dunkel Draft controversy-World

Trade Organization (WTO), Economic Integration

Readings:

1. A.P. Thirlwall. Growth and Development. Palgrave McMillan. (8th

edition) 2. M.P. Todaro and S.C. Smith. Economic Development. Pearson Education. 3. G.M. Meier and J.E. Rauch. Leading Issues in Economic Development. Oxford

University Press. (8th edition or latest). 4. Sunanda Sen. 2007. Globalisation and Development, National Book Trust, India 5. C. Roe Goddard, Patrick Cronin and Kishore C. Dash. (ed). International Political

Economy. Viva Books Private Limited. (articles by Theotonio dos Santos and Samir Amin.

6. Maurice Dobb. Soviet Economic Development since 1917. Chap. 8. 7. A.K. Bagchi. The Political Economy of Underdevelopment. Orient Longman. 8. J. Stiglitz. Globalisation and its Discontents. Penguin. 9. Soumyen Sikdar. Contemporary Issues in Globalisation. An Introduction to Theory

and Policy in India. Oxford University Press. 10. Schumpeter (1954): History of Economic Analysis, Harvard University Press

11. Screpanti & Zamagni (2005): An Outline of the History of Economic Thought, OUP 12. Snowdon and Vane (2005): Modern Macroeconomics, Edward Elgar Publishing

Limited 13. Resnick, S. and R. Wolff. 2012. Contending Economic Theories. MIT Press.

36

BASIC ECONOMETRICS


Econometrics is concerned with the application of statistical theory to the analysis of economic

data and the estimation of economic relationships. This course intends to expose students to the

statistical techniques that economists use for estimating, testing, and forecasting economic

relationships. In this paper students will be introduced with what ‘Econometrics’ is about. The

basic concept of linear regression model under classical assumptions, statistical inference tools

and techniques in a regressed model will be taught in a lucid approach. Moreover, the

consequences of violations of classical assumptions will also be taught. This course covers a

range of applications through statistical software.

Unit 1: Introduction to Econometrics

What is Econometrics? Steps in Econometric Analysis; Specification of Econometric Model and

Assumptions; Basic Concepts of Estimation and Desirable Properties of Estimators; Data for

Econometric Analysis.

Unit 2: Classical Statistical Inference

Basic concepts of estimation: Desirable properties of estimators, Methods of Point Estimation -

Maximum Likelihood Estimators and their properties.

Testing of Hypothesis: Confidence Intervals, p-values, Type-I and Type-II Errors, Simple

applications of tests for the Mean and Variance of a Univariate Normal Population.

Unit 3: Classical Linear Regression Model

Stochastic and non-stochastic relationships; The concept of regression, Two Variable Case,

Specification of the relationship; Estimation- Method of Least Squares, Assumptions; Gauss-

Markov Theorem; Properties of Least Squares estimates; BLUE.

Unit 4: Statistical Inference in Classical Linear Regression Model

Statistical Inference in simple linear regression model- Confidence Intervals for parameters,

Testing of Hypothesis- Testing of regression coefficient; Test for regression as a whole,

Coefficient of determination, Goodness of Fit, F-test, Analysis of Variance.

Unit 5: Violations of Classical Assumptions and Remedies

37

Problems of Heteroscedasticity; Auto correlation (first order) — their consequences, tests and

remedies.

Unit 6: Application of Econometric Methods

Estimation of demand and supply functions, production and cost functions and consumption

function and investment function.

Readings:

1. Damodar N. Gujarati, Dawn C. Porter, and SangeethaGunasekar. Basic Econometrics.

McGraw Hill Education (India) Private Limited; 5th

edition (2011)

2. Jeffrey M. Wooldridge. Introductory Econometrics: A Modern Approach Cengage

Learning India Pvt. Ltd.; 5th

edition (2014)

3. G. S. Maddala, KajalLahiri. Introduction to Econometrics. Wiley India Pvt Ltd; 4th

edition (2012)

38

PUBLIC FINANCE

[CEC33105: DSE/Credit: 6]

Course Objective: Public finance is the study of government policy from the points of view of

economic efficiency and equity. Inherently, this study involves a formal analysis of government

taxation and expenditures. The subject encompasses a host of topics including public goods,

market failures and externalities. The paper deals with the nature of government intervention and

its implications for allocation, distribution and stabilization. The paper is dealing with the theory

of public economics on one hand and the other with the public finances.

Detailed Syllabus:

Unit 1: Introduction to public finance

Functions of Government - Economic functions -allocation, distribution and stabilization;

Regulatory functions of the Government and its economic significance;

Government budget and its structure – Receipts and expenditure; Concepts of current and capital

account, balanced, surplus, and deficit budgets;

Federal Finance: Different layers of the government; Inter governmental transfer—horizontal vs.

vertical equity;

Unit 2: Public Revenue and Tax structure

Concept of tax, Optimal taxation; types of tax – direct tax and indirect tax;

Canons of Taxation; Principles of taxation -Ability to Pay principle; Benefit Approach of

Taxation;

Indirect tax – principles of commodity taxation; Demand elasticity and supply elasticity;

Efficiency in tax collection; VAT, GST, Subsidy and Transfer Policy;

Non-tax revenue resources - Earnings from public undertakings – Earnings from business of the

Govt. public services;

Unit 3: Public Expenditure and Public goods

Concept of public goods—characteristics of public goods; national vs. local public goods;

determination of provision of public good;

Externality, concept of social versus private costs and benefits; merit goods, club goods;

Provision versus production of public goods;

39

Market failure and public provision;

Unit 4: Deficit or surplus: Public debt

Concept of budget deficit vs. fiscal deficit; Functional classification of budget; Concept of

Revenue Deficit; Instruments for stabilization; Public Debt - internal and external – burden of

public debt; Elementary aspects of Public finance in an open economy;

Texts:

1. Musgrave and Musgrave: Public Finance in Theory and Practice (Fifth Edition).

2. Dorbusch, R.: Open Economy Macroeconomics.

3. Gruber J. (2011): Public Finance and Public. Worth publishers

4. Amaresh Bagchi (ed.). Readings in Public Finance. Oxford University Press.

5. Misra and Puri. Indian Economy.

40

INDUSTRIAL ECONOMICS

[CEC33107: DSE/Credit-6]

This course along with labour economics and industrial organizations will provide a thorough

understanding to the students regarding major developments in Industrial economics and it’s

allied issues. This course is a basic introduction to the Industrial Economics in terms how

structures of a industrial set up affects its functioning. Along with that the application of research

and development and the importance of location will be analyzed.

Unit I: Industrial Structure

Industrial structure and market structure; Industrial Concentration; Structure-Conduct-

Performance (S-C-P) model

Unit 2: Expansion of firms

Mergers, acquisition and diversification; Foreign capital; MNC’s and Transfer pricing; Indian

experience

Unit 3: Research and Development in the process of Industrialization

Research and Development and international patent laws; Product and process patent; Diffusion

of technology;

Unit 4: Location of the Industrial development and Industrial Policy

Location of the particular plant; Regional Development; Industrial policy

Suggested Readings:

1. R.R.Birthwal, Industrial Economics, 2nd

Edition

2. F.M. Scherer: Industrial Market Structure and Economic Performance. 2 edition edition.

41

ECONOMICS OF HEALTH AND EDUCATION

[CEC33109: DSE/ Credit 6]

The importance of education and health in improving well-being is reflected in their inclusion

among the Millennium Development Goals adopted by the United Nations member states, which

include among other goals, achieving universal primary education, reducing child mortality,

improving maternal health and combating diseases. This course provides a microeconomic

framework to analyse, among other things, individual choice in the demand for health and

education, government intervention and aspects of inequity and discrimination in both sectors. It

also gives an overview of health and education in India.

Unit 1: A theoretical understanding

Health Economics: A new subject? - Health and health care; Market for health care and its

uniqueness: Introducing externality and uncertainty; Demand for health care: Can usual

neoclassical framework do?

Unit 2: Measurement of health

Morbidity & Mortality; Disability Adjusted Life Years; Epidemiological Transition Theory

Unit 3: Providers

Doctors and fee structure; Pharmaceutical Industry; Insurance Market

Unit 4: Issues related to health care policy

Health care reform and its experience; Health care finance; Public private partnerships;

Sanitation policy;

Unit 5: Economics of Education

Public expenditure in Education; Productivity, citizenship, Credit Market Failure, Failure to

maximize family utility; Redistribution; Govt. involvement in education: Free public education

and crowding out and solutions;

Unit 6: Market for Education

42

Direct expenditure on education; measuring returns on education on productivity; Market failure

and govt. expenditure on higher education;

References:


2. World Health Organisation (2000), Report of Commission on Macroeconomics and

Health;

3. World Health Organization (2010), Socioeconomic Determinants of Health;

4. Cuyler A and J Newhouse (ed) (2000), Handbook of Health Economics. Elsevier.

5. Chattopadhyay Saumen (2012) Education and Economics: Disciplinary Evolution and

Policy Discourse. OUP;

.

43

THIRD YEAR

Semester VI

44

MONEY BANKING AND FINANCIAL MARKETS

[CEC33102: CC/ Credit 6]

This course demonstrates the role of banks in creation and circulation of money in the forms of assets in

the real sector as well as financial sector. The banks create money in the lending process through the

multiplier method. This money crystallizes in the forms of fixed capital and consumer durables, which

remain hypothecated with the banks during the life of the loan. This loan in turn contributes to the

aggregate demand in the form of investment products and thus augments the economy's output. This

output generates income in the hand of households, corporates and the governrnent, a part of which is

saved and channelized to the financial sector towards acquisition of financial securities. This course starts

with introduction to the functions of the banks with special reference to lending, continues with the

description of the financial markets and their work profiles and ends with relevant regulations on Banks

and Financial Markets that affect determination of interest and income.

Objectives:

To learn

(i) the financial aspect of monetary economics,

(ii) operation of banks and financial instructions, such that the knowledge helps when the

learners gets employed there or starts self employment like brokerage or rendering financial

advisory services.

(iii) the foundation of banking and finance to pursue higher studies in this area,

Unit 1: Introduction to Banking

• Concept of Financial Intermediaries

• Definition and Functions of Bank

• Structure of the Banking Industry

• Role of Banks in Creation of Money: The Lending Process

• The Money Multiplier Process

• Regulations on Lending

Unit 2: Introduction to Financial Markets

• Concept of Financial Market

• Money Market vis-à-vis Capital Market

• Concept of Financial Securities and their Credit Rating

• Concept of Issuer and Investor in the Financial Markets

• The role played by financial markets in determination of yields through price discovery

• The Concept and Construct of Yield Curve

45

• The Role of Yield in Income Determination

Unit 3: Regulator and Regulation

• Introduction to Central Banking and Monetary Policy

• RBI Regulations on Lending

• Role of CRR and SLR in determining the volume of loans

• Auction and buy back of government securities by RBI in open market operations

• Money Markets Operations by RBI - Repo, Reverse Repo and Marginal Standing Facility

• Role of RBI in creation of a vibrant debt market

Unit 4: International Finance and Monetary Policy

• The Foreign Exchange Market

• The International Financial System

• Monetary Policy Strategy: The International Experience

• Lessons from Banking and Financial Crises

References

Frederic S Mishkin, The Economics of Money, Banking and Financial Markets, 7th Edition, Pearson

Addison Wesley

Jagdish Handa, Monetary Economics, Routledge, Oxon, 2nd Edition

Glyn Davies, A History of Money, University of Wales Press, Cardiff, 1st Edcition

Financial Institutions and Markets, Anthony Saunders and Mercia Cornett, MgGraw-Hill, 6th Edition

Note: Study material may be supplied by faculty.

46

OPEN ECONOMY MACRO AND ITS GOVERNANCE

[CEC33104: CC/ Credit 6]

This course is designed to analyze the aggregate macroeconomic issues of price, output, and rate

of interest in the context of an open economy. The course is also designed for the undergraduate

students to get equipped with policy issues especially under open economy framework. The

course also provides theoretical insights into the issue of governance under open economy

framework.

Unit 1: Macro economy in a small open economy without money

Macroeconomic identities under open economy; multipliers in an open economy; foreign trade

multipliers; current account; the government sector.

Unit 2: Macro economy in a small open economy with money; policy analysis

Interest rate and prices in a open economy framework; Commodity and money market

equilibrium; money, exchange rates and prices; Fiscal and monetary policy under open economy

framework; fixed and flexible exchange rate; perfect and imperfect capital mobility; interest rate

parity; Mundell-Flemming model under fixed and flexible exchange rate; Impossible trinity.

Unit 3: Balance of Payment management under fixed and flexible exchange rate

Balance of payment adjustment under fixed exchange rate regime; the role of price in an open

economy; automatic adjustment; exchange rate management

Balance of payment adjustment under flexible exchange rate; Relative price and the trade

balance; the J-Curve, Monetary approach to balance of payment.

Unit 4: Governance in an open economy

Government budget deficit and it’s impact on open economy; Trade-off in deficit financing and

exchange rate management; Trade policy; political instability and capital flight;

Suggested Readings:

1. Mankiw, N.G, Principles of Macroeconomics. N. G. Mankiw. South-Western Cengage

Learning (6th

edition), 2012.

2. Rodseth Asbjorn, Open Economy Macroeconomics, Cambridge University Press,

Cambridge.

47


2005.

4. Dornbusch, Rudiger, Open Economy Macroeconomics (New York: Basic Books, 1980).

INTERNATIONAL TRADE


This course is based on the international trade theory derived from the price theory in general. It

begins with the basics of price theory to advance to the different standard trade theories that

evolved over time. Once this is accomplished, the course then helps the students move to the

applications and techniques essential in the field of international trade policy. Finally, an

introduction to international finance is to be provided to the students, preparing them for the

contemporary debates from the perspective of the third world countries. International Finance

emerges from transactions in the capital account, which get place in multi-currency

balancesheets and income statements. In this context behaviour of exchange rates, risks in

fluctuations of the exchange rates

Objectives

(i) To learn basic concepts and theories of trade such as to be able to appear in competitive

examination like Indian Economic Service and Civil Service.

(ii) To prepare for higher studies in Economics with specialization in trade

(iii) To join the foreign treasury department of some bank or financial institution.

(iv) To start an export business or foreign currency brokerage/conversion business.

Detailed Syllabus:

Unit 1: Classical theory of international trade

Introduction, Mercantilists’ views on trade, the labour theory of value, Adam Smith’s absolute

advantage, Ricardo’s comparative advantage, the opportunity cost theory, gains from trade

(constant costs)

Unit 2: Neoclassical theories

Production possibility frontier with increasing costs, community indifference curves, equilibrium

in isolation, gains from trade, incomplete specialization, partial equilibrium analysis- the

equilibrium- relative commodity price with trade, offer curves, general equilibrium, terms of

trade

Unit 3: Modern theory of trade

The Heckscher- Ohlin theory, Assumptions, factor intensity, factor abundance, the production

frontier, factor endowments, factor- price equalization theorem, New trade theories, imperfect

competition, dynamic technological changes

48

Unit 4: International Finance

Balance of payments, foreign exchange market, foreign exchange rate, spot and forward rates,

purchasing power parity theory, fixed exchange rate system vs. flexible exchange rate system,

managed floating, adjustments, stability, Marshal-Lerner condition

Unit 5: International Monetary System

The gold standard, the interwar experience, the Bretton woods System, its collapse, the present

International Monetary System

Unit 6: Exchange Rate Determination, Behaviour, Risk and Management thereof

Demand for and Supply of Currency - Exchange Rate Equilibrium - Determinants of Exchange

Rate - Forwards, Futures and Options in Currencies - Arbitrage - Interest Rate Parity

Readings:

o International Economics: Paul R. Krugman, Maurice Obstfeld, (8th

Ed.), Pearson Education

o International Economics: Dominick Salvatore (8th

Ed.), Wiley India

o International Financial Management, Jeff Madura, 12th Edition, Cengage Learning, Connecticut

o Open Economy Macroeconomics: R Dornbusch, (International Students

o Edition), Basic Books, New York.

o World Trades and Payments: Caves, Frankel, Jones (9th

Ed.), Pearson Education.

o Sodersten, B. and Reed G.(1994) : International Economics, Macmillan, London, 3rd edition

o Marjit, S. (2008): International Trade and Economic Development: Essays in Theory and Policy,Oxford University Press, New Delhi.

o World Trades and Payments: Caves, Frankel, Jones (9th Ed.), Pearson Education

o International Trade Theory and Policy: M.Chacholiades, McGraw Hill Book Company (1978)

49

LABOUR ECONOMICS


This course is designed to provide the theoretical background of labour Economics with special

emphasis on trade union. The course is aimed as complementary to the undergraduate students

studying industrial economics. The course will highlights major theoretical models existing in

labour economics and will highlights theoretical explanations of unemployment.

Unit 1: Aggregate Labour Market

Basic theories of Labour Demand; Labour Supply: A household choice; Empirical Estimation of

the labour demand schedule; Nominal Wage rigidity;

Unit-2: Labour Market: A closer looks

Some stylized facts; Some standard Macroeconomic models for the labour markets; Real wage-

rigidities; Summary

Unit-3: Trade Union Models

Basic Trade Unions Model; Monopoly Trade Union Model, Right to Manage Model; Efficiency

Bargaining Model; Hysteria and persistence of Unemployment.

Unit-4: Unemployment

Insider -Outsider model; Efficiency wage model; Search Model; Labour market institutional

models of Unemployment.

References:

1. Ben J Heijdra and F Van der Ploeg ,The Foundations of Modern Macroeconomics by,

Oxford University Press.

2. Daniel S.Hamermesh, Labour Demand, Princeton University Press,1996.

3. Cahuc, Pierre, and Andre Zylberberg. Labor Economics. Cambridge, Mass. and London: MIT Press, 2004.

4. Bhattacharjea,Aditya (2006), “labor Market Regulation and Industrial Performance in

India:A Critical Review of the Empirical Evidence”, The Indian Journal of labor

Economics, 49(2):211-32.

50

5. Deakin Simon (2014), “Labour Law and Inclusive Development”,Centre for Business

Research, University of Cambridge ,Working Paper No. 458.

51

ENVIRONMENTAL ECONOMICS


This course is designed to introduce under-graduate students to the economic issues around

natural resources as well as environmental problems from the perspective of economics. Natural

resources being scarce lead to core economic questions regarding the optimal rate of extraction.

On the other hand, how discovery of new resource bases change the pricing and usage of one

resource comes under the domain of resource economics. Designing economic instruments for

regulation of environmental problems as well valuation of environmental services are major two

focus of this course. In addition to that, some global environmental issues along with their

macroeconomic policy impact will be addressed in this course.

Unit 1: Economics and Environment

Introduction; Economics and Environment; Review of Microeconomics and Economic Welfare;

Definition and role of Environmental Economics; Scope and Significance of Environmental

Economics; Relationship between the Environment and the Economic System; Environment as a

Resource: Environmental Quality;

Unit 2: Economics of Exhaustible Resources

Intergenerational liquidity – Intertemporal - Dynamic Framework of Optimal Control – Market

structure of Non-renewable resources – problem of Uncertainty – Depletion vs. Discovery –

Examples;

Unit 3: Economics of Renewable resources

Renewable resources – Problem of uncertainty – Case study of Forestry: Single versus Multiple

use Forest – Fishery: The concept of Maximum Sustainable Yield (MSY) - Economic Decision

regarding optimal rate of Extraction;

Unit 4: Market Failure and Problem of Externality and Environmental Regulation

Concept of Externalities and Public Bad; Concepts of Rivalry and Excludability; Environmental

Pollution as a Public Bad; Externality (Pigou), Property Rights (Coase), Optimal Pollution;

Pollution Control: Alternative Market Based Instruments – Pure policies (Emission Fees,

Standard setting, and Tradable Pollution Permits), Hybrid instruments (two-part tariff),

Unit 5: Environmental Valuation

Measuring values, benefits and costs – overview; total value – use and non-use values of goods;

52

Total Economic Valuation; Valuation Methods: Stated Preference Approach, Revealed

Preference Approach (intuitive discussion on different valuation methods)

Unit 6: Macroeconomic Purview of Environment

Environment and Global Climate Change; Kiyoto Protocol and Issues around Carbon trading;

Ecological Footprints; International Environmental Policies; Environmental Performance Index:

choice of indicators; Environmental Performance Index: Comparison across Developing and

Developed World;

References:

1. Charles Kolstad, Intermediate Environmental Economics, Oxford University Press, 2nd

edition, 2010

2. Costanza, et.al. (1998): An Introduction to Ecological Economics.

3. Bhattacharyya, R.N. (2001): Environmental Economics: Indian Perspective, OUP

4. Hanley, Shogren & White (1997): Environmental Economics, McMillan.

5. James, Mishra & Murty (1999) Economics of Water Pollution: The Indian Experience.OUP

6. Kadekodi , G. (2004): Environmental Economics in Practice: Case Studies from India, OUP

7. Environmental Performance Index, http://epi.yale.edu/ , Yale University;

8. United Nations Framework on Climate Change, http://newsroom.unfccc.int/

Kiyoto Protocol http://www.kyotoprotocol.com/

53

PROJECT

[CEC33412: 6 Credits]

This course plan aims to provide exposure to the fundamentals of project writing techniques and

methods. Students are expected to learn critical reviewing of literatures in the area they are

interested in. Writing a short project will enhance their analytical and critical view towards

contemporary issues.

It is intended to enable students with writing guidelines which include the structuring of an

economic problem in reference to existing literature. The search of literature both theoretical

along with empirical evidences will train them into critical thinking. They need to present their

understanding first, later on they need to write a short project. It is expected that the students will

identify one particular research area which they will carry forward in writing dissertation in the

next semester. Identifying the research question in vast academic literature is the requisite of this

course. Students should be able to present their own viewpoint on the topic in the form of a

critique and future research ideas.

The final project report should include an Abstract, Introduction, Literature review, Research

Issue/Question and References. However depending on the type of topic the sections for Project

writing may vary student wise. In due course the students will learn proper referencing of

literature (APA, MLA styles of referencing), formatting styles etc.

1

DETAILED SYLLABI IN PROCESS

FOR

M.A. / M.Sc. in ECONOMICS

2017-19

2

COURSE STRUCTURE

FOR

M.A. / M.Sc. in ECONOMICS

2017-19

3

SCHOOL OF ECONOMICS & COMMERCE POST GRADUATE PROGRAMME STRUCTURE

(UNDER CHOICE BASED CREDIT SYSTEM)

M.A./M.Sc. in ECONOMICS

SEMESTER 1 Contact

Hours per Week

SL.

NO

TYPE

OF

COURSE

COURSE

CODE

TITLE OF THE COURSE

L T P

C

REMARKS

HC CEC51101 ADVANCED MICROECONOMICS 3 1 0 4

HC CEC51103 ADVANCED MACROECONOMICS 3 1 0 4

HC CEC51105 MATHEMATICAL ECONOMICS 3 1 2 4

HC CEC51107 HISTORY OF ECONOMIC THOUGHT 3 1 0 4

HC CEC51109 INSTITUTIONAL ECONOMICS 3 1 0 4

SUB TOTAL 20

SEMESTER 2

HC CEC51102 POLITICAL ECONOMY OF

DEVELOPMENT 3 1 0 4

HC CEC51104 INTERNATIONAL TRADE 3 1 0 4

HC CEC51106 INDIAN ECONOMY IN THE GLOBAL

CONTEXT 3 1 0 4

HC CEC51108 ECONOMETRIC METHODS 3 1 2 4

HC CEC51110 TOOLS FOR QUANTITATIVE &

QUALITATIVE RESEARCH 3 0 3 4

INT CEC51612 INTERNSHIP One Month Audit,

4

SUB TOTAL 24

SEMESTER 3

HC CEC52101

GLOBALIZATION AND

CONTEMPORARY ISSUES OF

DEVELOPMENT

3 1 0 4

SC SOFT CORE (Paper-A) 3 1 0 4

SC SOFT CORE (Paper-B) 3 1 0 4

SC SOFT CORE (Paper-C) 3 1 0 4

OE OPEN ELECTIVE 3 1 0 4

SUB TOTAL 20

SEMESTER 4

4

HC CEC52102 INTERNATIONAL FINANCE 3 1 0 4

HC CEC52104 ECONOMICS OF SOCIAL ISSUES 3 1 0 4

SC SOFT CORE (Paper-D) 3 1 0 4

SC SOFT CORE (Paper-E) 3 1 0 4

MDS CEC52718 DISSERTATION - 6 - 6

OE OPEN ELECTIVE 3 1 0 4 OPTIONAL

SUB TOTAL 22

TOTAL REQUIRED CREDIT

86

Soft Core Courses (SC):

Soft Core Courses are offered in Semester III and Semester IV. Students are required to specialize in one stream

during second year. They need to opt for any one stream from the list below. Under each stream five

paperswill be taught.

List of Specialization:

This list is amendable subject to availability of faculty resource and university infrastructure.

1. Applied Economics

2. Economics of Public Policy

3. Banking & Finance

List of Soft Core Courses under Each Specialization

Applied Economics Economics of Public Policy Banking & Finance

Pap

er

Paper Name Code Paper Paper Name Code Pap

er

Paper Name Code

SEMESTER III A Statistical Inference

And Estimation

Methods CEC52103

A Economics of

Public Health

CEC52109 A Financial

Institutions And

Market

CEC52115

B Advanced

Econometric

Methods

CEC52105

B Economics of

Private Health

Market

CEC52111 B Principles of

Modern

Banking

CEC52117

C Econometric

Analysis Of Data

CEC52107 C Economics of

Education

CEC52113 C Corporate

Finance

CEC52119

SEMESTER IV

D Multivariate Data

Analysis CEC52106

D Economics of

Natural

Resources CEC52110

D Principles of

Investment

Banking

CEC52114

E Analysis of Big

Data CEC52108

E Environmental

Regulation And

Valuation CEC52112

E Security

Analysis And

Portfolio

Management

CEC52116

5

ABBREVIATIONS

HC : Hard Core Course SC : Soft Core Course

SEC : Skill Enhancement Course OE : Open Elective Course

INT : Internship

MDS : Masters Dissertation

6

FIRST YEAR

Semester I

7

CEC51101

ADVANCED MICROECONOMICS

[HC: 4 Credits, 60 Contact Hours]

This course aims at a clear understanding of the micro foundations of modern economic theory. Consumption

and production are to be taught based on the principle of self-interest maximization, at the individual level.

Next, the two aspects are to be integrated in a perfectly competitive market framework. Finally, the theorization

is to be produced towards various market imperfections line externalities, asymmetric information and others.

Unit 1: Theory of consumer behavior

History of utility theory (Shift from Cardinal to Ordinal Approach); Classical demand theory: Preference

relation, their properties, the utility Functions, homothetic preference, utility maximization, indirect utility

functions, Roy’s Identity, expenditure minimization, Hicksian demand, duality, income Effect, substitution

effect and Slutsky equation; theory of revealed preference: WARP, SARP, compensating and equivalent

variations; intertemporal choice, time preference, utility maximization, discounted value; choice under

uncertainty, expected utility function, attitude towards risk

Unit 2: Theory of firm

Production Sets, input requirement sets and production functions, returns to scale and homogeneity; Cost

minimization, properties of cost functions, Input demand functions and Shephard’s Lemma, Duality between

cost and production functions, short run and long run cost functions; duality between cost and production

functions, short run and long run cost functions; Factor market: marginal productivity theorem, labour market,

envelope theorem, Eulers theorem;

Unit 3: Market: Partial Equilibrium analysis

Perfect Competition: Profit maximization and profit functions, input demand Functions and Hotelling’s Lemma,

Short run profit maximization: break-even and shut down points, short run market equilibrium and the supply

function, Long run supply, market equilibrium under perfect competition: short and long runs, Stability of

equilibrium, comparative static: exogenous changes and impact of policy, Imperfect completion: Monopoly-

output and price, price discrimination, social costs; Monopolistic competition, features, equilibrium,

Chamberlain, Robinson models; Oligopoly: features, equilibrium, Cournot, Bertrand, Stackleberg models

Unit 4: General equilibrium analysis and welfare economics

8

From partial to general equilibrium framework; The basic model: Edgeworth Box analysis of an exchange economy, equilibrium (Existence, uniqueness, stability), the general structure - Walras’ Law, Pareto Optimality, concept of core - Core equivalence theorem; Welfare economics: from Pigou to Pareto, Fundamental Theorems of Welfare Economics, Equity- efficiency trade-off, Compensation criteria, social welfare function, theory of second best

Unit 5: Market failure

Externalities: Positive, negative, consumption, production; Solutions: government interventions, Coase

Theorem; Public goods: optimality, overproduction, Lindahl equilibrium, Asymmetric information

Unit 6: Economics of information

Introduction to Game Theory, Simultaneous games: Dominant and dominated strategies, Nash equilibrium,

Dynamic games: sequential rationality, backward induction, sub-game perfection, Incomplete information

games: Adverse selection, signaling, moral hazard, screening, principal-agent problem, Bayesian Nash

equilibrium

Suggested Readings

1. Microeconomic Theory. Andreu Mas-colell, Michael D. Whinston, and Jerry R. Green John. Oxford

University Press India; 1st edition (2012)

2. Microeconomic Analysis. Hal R. Varian. W W Norton & Company; 3rd

edition (2010)

3. Microeconomics. H. Gravelle, R. Rees. Pearson India; 3rd

edition (2007)

4. Advanced Microeconomic Theory. Geoffrey A. Jehle, Philip J. Reny. Pearson India; 2nd

or later edition

5. Microeconomics: Theory and Applications. Anindya Sen. Oxford University Press; 2nd

edition (2006)

6. Microeconomic Theory: Basic Principles and Extensions. Walter Nicholson and Christopher Snyder.

Cengage; 11th edition (2014)

7. An Introduction to Game Theory. M. J. Osborne. Oxford University Press India; 1st edition (2012)

8. Game Theory: An Introduction. E. N Barron. Wiley India Pvt. Ltd.; 2009

9

CEC51103

ADVANCED MACROECONOMICS


This course will explore at a deeper level some of the topics of open economy macroeconomics and

study other research topics in macroeconomics.This course will take students through models of aggregate

demand and aggregate supply, consumption behaviour, investment behaviour, macroeconomics of developing

countries, overlapping generation model and its application.

Unit 1:Open Economy Macroeconomics

Balance of payments, Exchange rate systems, Fixed vs. Flexible Exchange Rate; Perfect and Imperfect Capital

Mobility; Mundell-Fleming model: Monetary and Fiscal Policy; Expectations and Exchange Rates, Monetary

approach to Balance of Payments.

Unit 2: Aggregate Demand & Supply

Models of aggregate supply, Phillips curve, Adaptive and Rational Expectations, Policy evaluation and the

Lucas critique, New classical analysis, Real business cycles;

Unit 3: Consumption Behaviour

Permanent Income and Life cycle theories, Consumption Theory and Hall’s Random Walk;

Unit 4: Investment Behaviour

Neoclassical theory, Tobin’s q, Imperfect information and investment;

Unit 5: Macroeconomics of Developing Countries

World Bank- IMF model; Structural Change and Unbalanced Growth; Financial Repression; Exchange Rate

Dynamics; International Financial Markets and Financial Crises;

Unit 6: The Overlapping Generations model

The Ramsey–Cass–Koopmans Model; The Overlapping Generations Model (OLG model) or the Diamond

model;

Readings:

1. Lectures on Macroeconomics . Blanchard and Fischer. Phi Learning; 1st edition (2009)

2. Advanced Macroeconomics. David Romer. Tata McGraw - Hill Education; 4th

edition (2011)

3. Macroeconomics: Theories & Policies. R. Froyen. Pearson Education; 10th Edition (2013)

4. Rudiger Dornbusch, Stanley Fischer and Richard Startz, Macroeconomics, 7th (or later) edition, McGraw Hill.

Suggested Readings:

10

1. Macroeconomic Theory & Policy. Amit Bhaduri. Setu Prakashani (2014)

2. Analytical Development Economics: The Less Developed Economy Revisited. Kaushik Basu. Oxford

University Press India; 1st edition (2010)

3. Advanced Macroeconomics (Volume 1 & 2). K. R. Gupta. Atlantic; 2nd

edition (2010)

4. Macroeconomics for Developing Countries. Raghbendra Jha. Taylor & Francis Ltd; 2nd

Revised edition

(2003)

5. Introduction to Economic Growth. Charles I Jones. Viva Books; 2nd

edition (2013)

11

CEC51105

MATHEMATICAL ECONOMICS


The course is intended to deliver knowledge of mathematical techniques suitable for economic analysis. It

assumes some prerequisite knowledge of mathematics, albeit the approach is lucid and aims to show students

how to do and apply the mathematics they require for a successful study of economics. Economic applications

are considered to map successful application of mathematics in economics. Topics covered include optimization

techniques, real analysis, and linear algebra, differential equations.

Unit 1: Static Optimization I

Unconstrained Optimization, Real-Valued Functions of Several Variables, Second Order Conditions, Economic

Applications.

Unit 2: Static optimization II

Classical Constrained Programming, Kuhn Tucker Formulation, Envelope Theorem, Economic Applications.

Unit3: Dynamic Optimization

The Nature of Dynamic Optimization, Alternative Approaches to Dynamic Optimization, Optimal Control

Theory.

Unit4: Introduction to Real Analysis

The Real Number System, Basic Notions of Set Theory, Limits and Continuity, Derivatives.

Unit5: Introduction to Linear Algebra

Vector Spaces, Linear Transformations, Matrices,Linear Equations and Determinants.

Unit6:Differential Equations and Stability Issues

Differential Equations, Stability Theory, Phase Diagrams.

Readings:

1. Mathematics for Economists. Carl P. Simon, L Blume. Viva Norton (Student edition). Reprint 2015.

2. Essential Mathematics for Economic Analysis. Knut Sydsaeter, Peter J. Hammondand , and Arne Strøm.

Pearson India; 4th edition (2013).

3. Optimization in Economic Theory. Avinash K. Dixit. Oxford University Press; 2nd

Revised edition

(2010)

4. Linear Algebra. Hadley. Narosa Book Distributors (2002)

5. Real Analysis. H. L. Royden. Prentice Hall India, 4th

edition (2011)

12

6. Fundamental Methods of Mathematical Economics. A. C. Chiang, and Wainwright. McGraw Hill

Education (India) Private Limited; 4th

edition (2013)

7. Elements of Dynamic Optimization. Chiang, Alpha. C. Sarat Book Distributors (2012)

8. Mathematical Optimization and Economic Theory. Michael D. Intriligator. PHI Learning (SIAM); 2012

9. Linear Algebra - A Geometric Approach. Ted Shifrin, Malcolm Adams., W. H. Freeman (2010)

10. Optimization and Stability Theory for Economic Analysis. Beavis & Dobbs. Cambridge University

Press (1990)

13

CEC52101

INSTITUTIONAL ECONOMICS


The main objective of this course is to understand how the role of the evolutionary process and the role of

institutions are shaping economic behaviour. It helps to understand the social systems, or "institutions," that

constrain the use and exchange of resources (goods and services) and their consequences for economic

performance. It makes us to understand how a country’s institutions can encourage or prevent the efficient use

of a society’s human and natural resources.

Unit-I: Preliminaries of the Old Institutional Economics

The concept of Institutions in the old institutional economics; Adam Smith’s “The Theory of the Moral

Sentiments”; The pragmatic philosophy of William James, Charles Peirce, John Dewey and Clarence Ayers;

formation of habits, the rule of thumb, development of customs traditions and mores as regulators of social

conduct; development of legal institutions. TB Veblen: The Theory of the Leisure Class - informal

institutions/habits and traditions, government as part of the established, institutional system (vested interests),

proposal of a system of industrial planning by technical experts, Jungian Archetypes and social psychology; R

Commons and JK Galbraith - formal (legalized) institutions, Scientific investigation methods; WC Mitchell-

Establishment of Institutions, National Bureau of Economic Research (NBER), Statistical basis for study of

institutions, New School for Social Research, origins of agent-based theory; G Myrdal – interdependence of

social, political, economic and institutional phenomena, modernization ideals. Religion as an institution: Max

Weber’s The Protestant Ethic and the Spirit of Capitalism. Kenneth Boulding: Grants Economics; The three-

fold taxonomy of social organization

Unit-II: Introduction to Institutional Analysis

The concept of institution in the New Institutional Economics: Institutions and organizations. Functions of

social and economic institutions; Interaction situations and the types of norms: prisoners' dilemma-type

situation; co-ordination situation; inequality situation; Enforcement characteristics; Institutional structure of a

society; Formal and informal institutions; Sanctions for disobeying norms (self-enforcing sanctions, guilt,

shame, informational sanctions, bilateral costly sanctions, multilateral costly sanctions); Conditions of norms'

effectiveness. Interaction of formal and informal institutions; The limits of imitations of institutions from best-

performing countries; The problems of their enforceability; A Comparative view of the Old Institutional

Economics and the New Institutional Economics and modern institutionalism.

Unit-III: Transaction Costs

The concept of transaction; Market and intra-firm transactions; Transaction costs as friction in the economy;

Transaction costs and transformation costs; Interdependency between transaction costs and transformation

costs; Types of market transaction costs and means of transaction costs minimization (search and information

costs; measurement costs; bargaining and decision costs; supervision and enforcement costs); Comparative

advantages and shortcomings of the legal enforcement mechanism; Reputation as a contract enforcement

device; Ideal model of "perfect reputation"; Shortcomings of the reputation as a contract enforcement

14

mechanism. Reputation and the "free rider problem"; Reputations aided by institutions. Transaction costs, the

main types of economic exchange and their institutional structure; Coexistence of the main types of economic

exchange in the modern society; Transaction cost measurement.

Unit-IV: Economic Theory of Property Rights

The definition of property rights; Property rights in different Laws/traditions; The property rights approach:

some basic concepts. Specification of property rights, the bundle of rights, partitioning of property rights,

attenuation of property rights; Assigning of property rights: the internalization of externalities; The Coase

Theorem; Critic of Coase (dynamic effects of alternative legal rules, wealth effect, distributional effects,

strategic behavior and the problem of holding-out, endowment effect, sociological critic, unrealistic assumption

about zero transaction costs); Alternative property rights regimes; Common property (open access) and the

tragedy of the commons; Exclusive property rights and the conditions for their emergence; The first economic

revolution. Communal property; Optimal group size; Private property; Moral and economic aspects of private

property; Public property; The emergence of property rights; The optimistic theory of the emergence of

property rights (naive model); The interest-group theory of property rights; The costs of collective action; The

theory of rent-seeking; Interest-groups and rent-seeking behavior in an economy.

Basic Reading List

• Barzel, Y. (1982): “Measurement Cost and the Organization of Markets”, Journal of Law and

Economics, Vol.25, pp. 27-48.

• Blaug, M. (1978): Economic Theory in Retrospect (3e), CUP, Cambridge and NY.

• Coase, R. (1937): “The Nature of the Firm”, Economica, Vol.4, pp. 386-405.

• Coase, R.H. (1960): “The Problem of Social Cost”, Journal of Law and Economics, Vol.3, pp.1-44.

• Dahlman, C. (1979): “The Problem of Externality”, Journal of Law and Economics, Vol.22, pp. 141-

162. 6. Eggertson, Thr. (………): Institutions and Economic Behavior, Ch.1, pp.1-32.

• Eggertson, Thr. (………): Institutions and Economic Behavior, Ch.2, pp.33-78, Ch.4, pp.83-124, Ch.8,

pp.247-280, Ch.9, pp. 281-316.

• Elster, J. (1989): “Social Norms and Economic Theory” Journal of Economic Perspectives, 3, 99-117.

• Menard, C. and M. Shirley (eds.) (2005): Handbook of New Institutional Economics, Springer.

• Milgrom, P. and J. Roberts (1992): Economics, Organization and Management, Prentice-Hall Int., Ch.2,

pp.19-35, Ch.5, pp.147-149, Ch.8, pp.259-269.

• Milgrom P. (……...): Roberts J. Economics, Organization and Management, Ch.9, pp.288-307.

• North, D. (1990): Institutions, Institutional Change and Economic Performance, CUP, Ch.5, 6, 7.

• North, D. (1990): Institutions, Institutional Change and Economic Performance, CUP, Ch.8. 14. Posner,

R. (1997): “Social Norms and the Law: an Economic Approach”, AER, 87, 365-369.

15

FIRST YEAR

Semester II

16

CEC51102

POLITICAL ECONOMY OF DEVELOPMENT


Unit 1: Introduction to political economy

Renaissance, Enlightenment, Modernity, Colonialism, Capitalism, Merchantilism, Physiocracy;

Unit 2: Classical Political Economy

The labour theory of value - Adam Smith, invisible hand, theory of growth, role of state, value theory; Ricardo

– income distribution, theory of rent, value theory, J.S. Mill, the Marginalist revolution,

Unit 3: Marxian Theory- A Critique of Political Economy

Idealism vs. Materialism, Dialectics as a method, Commodity and Money, Labour power, Labor process, the

capitalist mode of production, surplus value and capital, historical materialism, value theory

Unit 4: Overdetermination

Epistemology, ontology, determinism, dualism, economic dualism, Transition, capitalist development and

poverty eradication, history of Capitalist transition and Imperialism, Introduction to critique of economic dualism and alternatives, Transition beyond capitalism;

Unit 5: Class and Development

Class focused economy: class, overdetermination, economy, capitalism, class justice and post-capitalist economy, Class and need: surplus, class and development distribution, development justice, public policy, inclusion, poverty, Capitalist Hegemony: nodal point foregrounding and foreclosure; Unit 6: Critique of Political Economy of Development

Critique of Political Economy of Development; re-examining dual economic model (Lewis, informal-formal,

etc.); interrogating alternative theories of transition and development; rethinking transition: reconstruction

beyond the capitalist hegemonic; post-capitalist politics; Capitalism and globalization: neo liberalism and global

capitalism; formation of economic order in post-globalization period, capitalist development and Primitive

Accumulation of third world/world of the third;

Readings:

1. Schumpeter (1954): History of Economic Analysis, Harvard University Press

2. Screpanti & Zamagni (2005): An Outline of the History of Economic Thought, OUP

3. Snowdon and Vane (2005): Modern Macroeconomics, Edward Elgar Publishing Limited

4. A.P. Thirlwall. Growth and Development. Palgrave McMillan. (8th

edition or latest)

5. Resnick, S. and R. Wolff. 2012. Contending Economic Theories. MIT Press.

17

6. Marx, K. Capital: A Critique of Political Economy. Volumes 1, 2 and 3. Progress Publishers or

Penguin Classic.

7. Marx, K. 1976. Grundrisse: Foundations of the Critique of Political Economy. Penguin Classic.

8. Lukács, G. 1971. “What is orthodox Marxism?”. History and Class Consciousness: Studies in Marxist

Dialectics. Cambridge, Massachusetts: The MIT Press.

9. Engels, F. 1976. Ludwig Feuerbach and the end of Classical German Philosophy. Peking: Foreign

Languages Press.

10. Cohen, G.A. 1978. Karl Marx’s Theory of History: A Defence. Princeton University Press.

11. Resnick, S. A. and Wolff, R. D. 1987. Knowledge and Class: A Marxist Critique ofPolitical Economy.

University of Chicago Press.

12. Escobar, A. 1995.Encountering development: the making and unmaking of the third world. Princeton

University Press.

13. Sanyal, K. 2007. Rethinking Capitalist Development: Primitive Accumulation,Governmentality and

Post-Colonial Capitalism. Routledge.

14. Chakrabarti, A, S, A, Dhar and Cullenberg, S. 2012. World of the Third and GlobalCapitalism.

Worldview Press.

15. Chakrabarti, A and Dhar, A. 2009. Dislocation and Resettlement in Development: FromThird World to

World of the Third.Routledge.

16. Gibson-GrahamJ.K. 2006. The Postcapitalist politics. University of Minnesota Press.

17. Sen, A, K.2003. Rationality and Freedom, Oxford University Press: New Delhi.

18. Sen, A, K. 2009. The Idea of Justice, Penguin.

19. Sen, A. 1988. “The Concept of Development”. Handbook of Development. Vol I.

20. Sen, A. 2000. “Development as Freedom”. Oxford University Press.

21. Sen, A.1990. “On Ethics and Economics”. Oxford University Press.

22. Sen, A.1999. “Commodities and Capabilities”. Oxford University Press.

23. Basu, P. K. 2008. Globalization: An Anti text. Aakar Books.

18

CEC52103

INTERNATIONAL TRADE


This is an advanced course on international trade theory and empirics. It begins with a classical trade model and

proceeds by introducing various complexities thereby tracking the evolution of modeling in international

economics. In the latter part, we revisit the classical models, in a more theoretical manner to bring out the

ongoing arguments in favour of and against free trade. Finally, we attempt an understanding of the global

scenario from the third world perspectives to bring out the shark contrasts in views.

Unit I: Trade Theory & Policy under Perfect Competition

• Arbitrage, gains from trade and the concept of comparative advantage,

• Fixed endowments: the exchange model,

• Labor productivity and comparative advantage: the Ricardian model,

• Immobile factor and International trade: the short-run specific-factor model,

• Structure of endowments and the pattern of comparative advantage: the long run,

• Heckscher-Ohlin-Samuelson model. The theory of tariff, Trade policy with domestic distortions,

International Political Economy: WTO and the non-tariff barriers, Basic Accounting, Internal and

External Balance, Capital Mobility

Unit II: Trade, Imperfect Competition and Development

• Rethinking International Trade, International Trade with Increasing Returns to Scale, Oligopolistic

competition and Strategic Trade Theory,

• Trade and Development – Background, Brief views of Smith, Ricardo, Mill, Marx – Rosenstein-Rodan,

Nurkse, Hircsmann, Myrdal, Trade as a vent for Surplus, The core periphery interpretation of trade and

development and the drain theory, The infant industry argument

• The Prebisch Singer argument, Unequal exchange theories, The open dual economy, Terms of trade and

development, Immiserizing growth, Bhagwati – Johnson – Brecher and Alejandro, Trade on growth,

growth on trade, Technology and trade, empirical support for trade and development, GATT, WTO and

the less developed countries

References:

1. Rogoff & Obstfeld (1998): Foundations of International Macroeconomics, MIT Press

2. Dornbusch (1980): Open Economy Macroeconomics, Norton

3. Benassy (1984): Macroeconomics, Academic Press 4. R. Jones, R. Caves and J. Frenkel (CJF), World Trade and Payments, 4

th edition,

5. R. Jones, International Trade: Essays in Theory, North Holland,1979.

6. Ronald Findlay, International Trade and Development Theory, Columbia University Press, 1973.

19

7. Paul Krugman, Rethinking International Trade, 1994, MIT press.

8. Jagdish N. Bhagwati, T. N. Srinivasan and Arvind Panagariya, Lectures on International Trade, MIT Press, 1998.

9. Helpman & Krugman (1989): Trade Policy & Market Structure, MIT Press

10. Kierzkowski (ed.): Monopolistic Competition and International Trade, 1984, OUP

a. Bhagwati, J. (Ed.) (1981). International Trade: Selected Readings, Cambridge University Press,

Massachusetts.

11. Chacholiades, Miltiades (1990). The Pure Theory of International Trade, McGraw Hill, Kogakusha,

Japan.

12. Cherunilam, Francis (2006), International Economics, Tata McGraw-Hill Publishing Co. Ltd., New

Delhi.

13. Heller, H. Robert (1988). International Trade: Theory and Empirical Evidence, Prentice-Hall of India

Pvt.

14. Ltd., New Delhi

15. Kenen, Peter B. (1989). The International Economy, Prentice-Hall of India Pvt. Ltd., New Delhi.

16. Kindleberger, C.P. (1977). International Economics, D.B. Taraporevala Sons & Co. Pvt. Ltd., Bombay.

17. Meade, James Edward (1952). A Geometry of International Trade, George Allen and Unwin Ltd.,

London.

18. Roy, P.N. (1986). International Trade: Theory and Practice, Wiley Eastern Ltd., New Delhi.

19. Sodersten, Bo (1991). International Economics, The Macmillan Press Ltd., London.

20

CEC51106

INDIAN ECONOMY IN THE GLOBAL CONTEXT


This course will cover the contemporary issues in Indian Economy with primary focus of Post Reform period.

The paper will discuss about the changes in India’s Remarkable Growth experience after shift of the trajectory

from Planned Economy to Market Economy. Along with detailed outlay of the output and employment pattern,

this paper will also elaborate the infrastructure and policies as an emerging economy. Finally the Growth versus

Distribution debate will be covered with special emphasize on the challenges of the State in Post Globalization

era.

Unit 1: India as an emerging economy

Economic Reforms (Structural adjustment and Stabilization policies; Membership of WTO; Second Generation

Reform; High growth rate since 2004 and BRIC membership; Sectoral performance in terms of output and

employment; what has become the engine for growth; Macroeconomic Policies and their role: Fiscal Policy,

Monetary Policy, Trade Policy etc. (Brief discussion); Distribution Implications - Growth vs. poverty,

inequality – jobless growth?

Unit 2: Sectoral Performances in Indian Economy: Output Composition

Agriculture: Change in growth, yield and cropping pattern; Sectoral contribution in GDP; Crop failure –

increased vulnerability - Farmers’ suicide;

Industry: Change in the composition – Identification of high growth industries; composition of Secondary

sector; Primary industries (traditional and dirtier) to Modern sophisticated industries (cleaner and

technologically advanced);

Service sector growth: skill intensive sector; high return for investment in education (skill accumulation)

Unit 3: Employment Implications of Growth

Chnages in Labour Market: Changes in employment and Labor Productivity; Trends in Wages and wage

inequality; Increased casualization of labour; increase in labour mobility viz-a-viz loss of social security; High

risk and high return in job market;

Gender and Labour Market;

Countering unemployment by State: Implications of Employment Generation Schemes;

Unit 4: Infrastructural Development in India – Public Private Partnership

Infrastructural Development; How to Finance, Maintain and Implement User Right; Conflict between Economic

Efficiency and Social Justice; Private investments in Infrastructure; Public Private Partnership: Definition,

Structure, and Operation; PPP Initiatives in Developing Countries: Case studies;

Unit 5: Fiscal, Monetary and Trade Policies

21

Macroeconomic Policies and their role: Economic Reforms in 1990s; Crisis and Contraction, Slowdown in

investment, Sources of Policy Failures;

Recovery from Crisis: Fiscal Policy, Monetary Policy, Trade Policy;

Unit 6: Growth vs. Distribution

Growth with Disparity; Growth vs. Distribution – Poverty, Inequality, Human Development; Income change

with increased Vulnerability;

References:

1. India's Emerging Economy: Performance and Prospects in the 1990s and Beyond (2004): ed.

KaushikBasu, OUP.

2. Employment with Dignity (2005): Amit Bhaduri.

3. India in Transition: Freeing the Economy, by Jagdish Bhagwati, OUP.

4. Employment and wages in Indian manufacturing: Post-reform performance, by Bishwanath Goldar and

Amit Sadhukhan, Working Paper No. 185, ILO, Geneva;

5. India development reports.

6. Development and Sustainability: India in a Global Perspective (2013): eds. Sarmila Banerjee and Anjan

Chakrabarti, Springer;

7. Economic Survey of India.

8. Indian Economy: A Macro-Theoritic Analysis (2016): Chandana Ghosh and Ambar Ghosh, PHI

learning.

9. India: Economic Development and Socila Opportunity (1995): Jean Dreze and Amartya Sen, OUP.

10. Indian Economy: Performance and Policies (2015): Uma Kapila. Academic Foundation; 15th

Revised

edition.

11. Indian Economy (2015): Gaurav Datt, Ashwani Mahajan. S. Chand Publishing.

12. Vaidyanathan A.(1994). Performance of Indian Agriculture since Independence in Kaushik Basu (ed.)

Agrarian Question, Oxford University Press.

13. M.S. Ahluwalia. 2002. “Economic Reforms in India since 1991: Has Gradualism Worked?” The Journal

of Economic Perspectives, Vol. 16, No. 3.

14. I.J. Ahluwalia & I.M.D. Little (ed.). 1999. India’s Economic Reforms and Development, Essays in

honour of Manmohan Singh, Oxford University Press, New Delhi.

15. M Rakshit. (2007): Services-led growth: The Indian Experience in Money and Finance, February

16. G S Bhalla. (2004): Globalisation and Indian Agriculture: State of the Indian Farmer. Academic

Publishers: New Delhi

22

CEC51108

ECONOMETRIC METHODS

[HC:4 Credits, 60 Contact Hours]

Econometrics is concerned with the application of statistical theory to the analysis of economic data and the

estimation of economic relationships. This course intends to expose students to the statistical techniques that

economists use for estimating, testing, and forecasting economic relationships. This course covers both an

introduction to econometric theory and methods, and a range of applications.

Unit 1: Statistics Prerequisites

Data - Classification and presentation; Frequency distribution - Diagrammatic representation of frequency

distribution; Measures of Central Tendency; Measures of Dispersion; Measures of Skewness & Kurtosis;

Bivariate data: correlation, covariance.

Unit 2: Introduction to Econometrics

What is Econometrics? Steps in Econometric Analysis; Specification of Econometric Model and Assumptions;

Basic Concepts of Estimation and Desirable Properties of Estimators; Data for Econometric Analysis.

Unit 3: Simple Linear Regression Analysis

Definition of Simple Linear Regression Model (SLRM); Ordinary Least-squares (OLS) Estimation of SLRM;

Properties OLS Estimators; Statistical Inference in SLRM; Measuring Goodness of Fit; Analysis of Variance on

OLS Regression; Interpretation of Regression Results.

Unit 4: Multiple Linear Regression Analysis

Definition of Multiple Linear Regression Model (MLRM); OLS Estimation of MLRM; Properties of Multiple

Regression Coefficients; Measuring Goodness of Fit; Problems of Inference in MLRM; Interpretation of

Regression Results.

Unit 5: Heteroscedasticity, Autocorrelation, & Multicollinearity

Heteroscedasticity: Definition, Consequences, Detection, Remedial Measures.

Autocorrelation: Definition, Consequences, Detection, Remedial Measures.

Multicollinearity: Definition, Consequences, Detection, Remedial Measures.

Unit 6: Stationary Time Series

Stochastic Time Series and Stationarity; Box-Jenkins Methodology of Stationary Time Series Analysis; Time

Series with Trend - Deterministic and Stochastic Trend; Tests of Unit Root.

Core Readings:

1. Introduction to Econometrics. G. S. Maddala, 2nd Edition, Macmillan, New York

2. Basic Econometrics, D Gujarati, Tata McGra-Hill, Delhi, 4th Edition

Suggested Readings:

1. Econometrics. B. H. Baltagi. Springer (india) Private Limited; 3rd

edition (2013)

2. Econometric Analysis. William H. Greene. Pearson India; 5th

edition (2003)

23

3. Principles of Econometrics: A Modern Approach Using EViews. Sankar Kumar Bhaumik. Oxford

University Press India (2015)

4. Gauss and Invention of Last Square, Stigler S. M., The Annals of Statistics 9(3), pp 465-474

5. “That descriptions be kept as simple as possible until proved inadequate,” The World of

Mathematics, vol. 2, J. R. Newman (ed.), Simon & Schuster, New York, 1956, p. 1247, or, “Entities

should not be multiplied beyond necessity,” Donald F. Morrison, Applied Linear Statistical Methods,

Prentice Hall, Englewood Cliffs, N.J., 1983, p. 58.

6. G. S. Becker, “Crime and Punishment: An Economic Approach,” Journal of Political

Economy,76(8), pp. 169–217.

CEC51612

INTERNSHIP

[AUDIT, ONE MONTH]

Summer internship will be of one month duration, during the summer vacation after the end semester exams of

Semester II. The students will be given a list of internship opportunities with NGOs, civil society organisations,

think tanks, governmental agencies and private companies. At the successful completion of summer internship,

students have to submit a detailed internship report. Students will receive certificates both from the organisation

and the University.

24

SECOND YEAR

Semester III & IV

25

CEC52101

GLOBALIZATION AND CONTEMPORARY ISSUES OF DEVELOPMENT


The course deals with the principal issues of economic development, with the objective of preparing students

for advanced study and policy-oriented research in this subject area. Emphasis will be on economy-wide

aspects of economic development, with special references to international dimensions of national development

policy making. In this course, we will strive to develop a more nuanced view which sees development and

globalization as an inter-related set of historical processes and mechanisms which have revolutionized much of

human society over the last several decades.

Unit 1: The Paradigm of Development

The emergence of the development paradigm- Capital accumulation through planned industrialization in a

traditional agrarian economy- The role of the developmental state- The role of international organizations: the

IMF, the World Bank and the ILO- Alternative strategies for industrialization: import substitution and export

promotion.

Unit 2: The Evolution of Measures of Development

Poverty, Inequality and Development- Measuring Inequality and Poverty- Income Poverty Index and Human

Poverty Index. Per Capita income- Physical Quality of Life Index- Human Development Index- Gender

Development Index- Gender Empowerment Measures.

Unit 3: Social Sector and Economic Development

Education and Health in Economic Development- Mortality and Morbidity- assessment of health status in terms

of Disability-Adjusted-Life-Years (DALY)- Analysis of Disease Burden & Epidemiological Transition theory

of Development.

Famine: Supply failure vis-à-vis entitlement failure; Self-help-groups and poverty management; NGO and the

provision of merit goods.

Unit 4: Globalization

Is globalization an unprecedented phenomenon? Integration of the developing economies into the global order:

the structural adjustment program (SAP)- Trade liberalization: WTO- Capital flows and financial integration-

Communication technology and the death of distance: off-shoring and outsourcing- The global regime of

property rights- The global economy and the developmental state.

Unit 5: Globalization and the Developing World

26

Globalization and inequality- Globalization and employment- Trade liberalization, dispersion of production and

the international division of labour- WTO and the nation state- Trade liberalization, capital flows and

environment- Globalization and agriculture- Development and Democracy.

Unit 6: Debating Consequences of Globalization

The Global Financial Crisis of 2008, and Increasing Inequality; Globalization and Working People – Who are

the Winners and Losers? Globalization and Culture – Conflict or Convergence? Globalization and Political Change –

More or Less Democracy?

Suggested Readings:

1. Contemporary Issues in Globalization. S. Sikdar. Oxford University Press; 2nd edition (2006)

2. Stiglitz. Globalization and Its Discontents. Penguin Books (2002)

3. In Defense of Globalization. JagdishBhagwati. Oxford University Press; 2nd

edition (2007)

4. Economic Development. M.P. Todaro, and S.C. Smith. Pearson India; 10th

edition (2011)

5. Globalization for Development. Ian Goldin, Kenneth Reinert. Rawat Books; (2006)

6. Globalization and Development. Ashwini Deshpande (ed.) Oxford University Press; 11th

edition (2010)

27

CEC52102

INTERNATIONAL FINANCE


This course revolves around the theories and activities connected to capital account of balance of payments. It

deals with international capital transfer and the role of international financial agencies and institutions in

determining or regulating transactions in the international financial system. It will make a student comfortable

in applying for a job at foreign bank like HSBC or a global institution like IMF or pursue higher studies in

international finance and banking.

Unit 1: Departure from International Trade

a. Recapitulation of Balance of Payments

b. Financing Current Account Transactions

c. Dynamic Nature of Capital Account Transactions

i. Role of Foreign Currency Interest Rate

ii. Role of Exchange Rate

d. International Financial Markets

e. Exchange Rate Determination

f. Introduction to Currency Derivatives

Unit 2: The International Financial Environment

a. Multinational Financial Management

b. International Flow of Funds

c. International Financial Markets

d. Exchange Rate Determination

e. Currency Derivatives

Unit 3: Exchange Rate Behavior

a. Government Influence on Exchange Rates

b. International Arbitrage and Interest Rate Parity

c. Relationships among Inflation, Interest Rates, and Exchange Rates

Unit 4: Exchange Rate Risk Management

a. Forecasting Exchange Rates

b. Measuring Exposure to Exchange Rate Fluctuations

c. Managing Transaction Exposure

d. Managing Economic Exposure and Translation Exposure

References:

28

• International Financial Management, Jeff Madura, Cengage, Australia, 12 Editions

• International Monetary Economics, Michael Helperin, Longmans, Green and Co, London, 1st Edition

29

CEC52104

ECONOMICS OF SOCIAL ISSUES


Capitalism, aided by modernity and globalisation, had promised a universal solution to all the social problems

of mankind. However, with time, it has given rise to a new set of contradictions and problems that are

themselves products of this age, characterized by economic engines of growth and technology. Accordingly,

new approaches have come up to tackle these social problems related to gender, race, nature etc. This course

attempts towards such a new methodological approach towards heterogeneity and local interests, thereby

providing a critique of the capitalist notions of justice, rationality and equality.

Unit 1: Modernity and social changes

Modernity, capitalism, economic problems of poverty, unemployment and inequality – growth as the solution,

from growth to development, emphasis on social indicators, human development - capability approach

Unit 2: Globalization and social changes

Beyond economic problems, multiculturalism, urbanisation, migration, social disorganisation, exclusion,

displacement, refugee problems, informalization and casualization of labour, demographic problems, population

explosion, communalism, secularism, regionalisation, casteism, child abuse, consumerism, stratification,

displacement and dislocation

Unit 3: Gender issues

Basic concepts of women studies, women studies perspectives, gender sensitive approach, gender and sex,

biological determinism, stereotyping, socialisation, patriarchy, devaluation, marginalisation, silencing, male

gaze, power politics, gender mainstreaming, gender and work, feminism, feminist research methodology,

objectivity vs. subjectivity, women right movements

Unit 4: Social justice

Idea of justice – a brief chronological overview, egalitarian view, utilitarian view, Rawlsian view, Sen’s idea of

justice, idea of natural inequality

Unit 5: Social movements

Political sociology, power, democratic politics, fall of communism, global governance, terrorism, tribal unrests,

social movements (Naxalbari movement in India: case study)

Unit 6: Environmentalism

Beyond the anthropocene, the mutual interconstitutivity of man and nature, a brief history amd taxonomy of

environmental movements, mainstream movements and critiques, radical environmentalism, animal rights,

indigenous people

Core Readings:

1. Bauman, Zygmunt. Liquid Modernity. Wiley 2000.

30

2. Beck Ulrich, Risk Society: Towards A New Modernity, Sage Publications, 1992.

3. Breman Jan .Footloose Labour: Working in India’s Informal Economy (Contemporary South Asia)

Cambridge University Press, 1996.

4. Joseph, R. Gusfield. New Social Movements: From Ideology to Identity. Temple University Press.

2009

5. Manorama Year Book

6. Meera Nanda, Prophets Facing Backward, Permanent Black, New Delhi, 2004.

7. P.Sainath, Everybody Loves a Good Draught, Penguin, New Delhi, 2005

8. Pavan Mishra, Butter Chicken in Ludhiana, Penguin, New Delhi, 1995

9. Pushpesh, Kumar. Queering Indian Sociology A Critical Engagement CAS WORKING PAPER

SERIES Centre for the Study of Social Systems Jawaharlal Nehru University, New Delhi May 2014

CAS/WP/14-7

10. Raka Ray and Mary Fainsod Katzenstein (eds), Social Movements in India, Oxford University Press,

New Delhi, 2005.

11. Shah Ghanshyam, Social Movements and the State, Sage, New Delhi, 2002.

12. Surinder, S. Jodhka (ed), Community and Identities, Sage, New Delhi, 2001.

13. Yojna Magazines

14. Sujata Patel, Krishna Raj & Jasodhara Bagchi (eds), Thinking Social Science, Sage, New Delhi,

2002.

15. Stuart Cambridge & John Harris, Reinventing India, Oxford University Press, New Delhi, 2000

16. Romilla Thappar (ed) India Another Millenium, Viking, New Delhi, 2000

17. Josef Guglar (ed.) The Urban Transformation of the Developing World, Oxford University Press,

New York. 1996.

18. Ram Ahuja, Social Problems in India. Rawat Publications.1997.

19. Singh K.S. (ed.) Tribal Situation in India, Indian Institute of Advanced Study, Simla, 1972.

20. 1.Ahuja, Ram (2000). Social Problems in India, New Delhi: Rawat Publications.

21. 2.Deb.S. (2006).Contemporary Social Problems In India. New Delhi, Anmol.

22. 3.Bhattacharyya.S (1994). Social problems in India: issues and perspectives: Sunil Kanta

Bhattacharyya, Regency Publications.

23. 4.Dube, Leela (1997). Women and Kinship, Comparative Perspectives on Gender in South and

Southeast Asia, New Delhi: Sage Publication.

24. 5.Desai, Neera & Usha Thakkar (2007). Women in Indian Society, National Book Trust, India.

Gadgil.

25. 6.Ghosh. B. (1995). Contemporary Social Problems of India: Biswanath Ghosh, Himalaya.

26. 7.Mehta. S.R. (Ed.). (1997). Population, Poverty and Sustainable Development, Jaipur: Rawat.

27. Guha, Ramachandra. Environmentalism: A Global History. Longman World History Series. New

York: Longman, 2000.

28. Hobsbawm, E. J. The Age of Empire, 1875-1914. New York: Vintage, 1989.

29. McNeill, J. R., John Robert McNeill, and Paul Kennedy. Something New Under the Sun: An

Environmental History of the Twentieth-Century World. W. W. Norton & Company, 2001.

30. Scott, James. Seeing like a State: How Certain Schemes to Improve the Human Condition Have

Failed. New Haven: Yale University Press, 1998.

31

Suggested Readings:

1. Singh K.S. Tribal Movements in India Vol. I & II, New Delhi: Manohar Prakashan, 1982.

2. Bose, A., Nangbri, T. & Kumar, N. (eds.) Tribal demography and development in North-East India.

Delhi: B.R. 1990.

3. Furer-Haimendorf, C.V. Tribes of India: The Struggle for Survival, Delhi: OUP. 1991.

4. Mehta, P.L. Constitutional protection to Scheduled Tribes in India in retrospect and prospect, Delhi:

H.K. 1991.

5. Rao, M.S.A. Social Movements in India, Vol.I and II, Manohar, Delhi, 1978.

6. T.K.Oommen, Nation, Civil Society and Social Movements, Sage, Delhi, 2004.

7. Kancha Illiah, Why I am not a Hindu, Samya, Calcutta, 1998.

8. Guru Gopal (ed.), Atrophy in Dalit Politics, VAK, Bombay, 2005.

9. Gail Omvedt, Dalits and the Democratic Revolution, Sage, New Delhi, 1994.

10. .Beteille, Andre (1992). Backward Classes in Contemporary India, New Delhi: OUP .

11. Madhav and Ramchandra Guha (1996). Ecology and Equality: The use and Abuse of Nature in

Contemporary India, New Delhi: OUP. Gill, S.S. (1998): The Pathology of Corruption, New Delhi:

Harper Collin Publishers.

12. Lewis, Oscar (1966). Culture of Poverty. Scientific American. Vol-II and V No.IV PP-19-25. Satya

Murty.

13. T.V. (1996). Region, Religion, Caste, Gender and Culture in Contemporary India, New Delhi: OUP.

32

SOFT CORE COURSES

In the second year of the M.A program, students need to choose any ONE stream out of the three offered in this

academic session. Under each stream of specialization, they are required to study five courses, each of 4 credits.

The streams on offer are subject to availability of course instructors in a particular session.

List of Streams (offered in 2016-18):

1. APPLIED ECONOMICS

2. ECONOMICS OF PUBLIC POLICY

3. BANKING AND FINANCE

SOFT CORE 1: APPLIED ECONOMICS

Econometrics is concerned with the application of statistical theory to the analysis of economic data and the

estimation of economic relationships. Applied economics, is a specialized stream which comprises of four

papers. This course altogether intends to provide students with a thorough understanding of core techniques of

econometrics and learn how to apply them to test economic theories and quantify relevant factors for economic

policy and other decisions.

By the end of the course the students will have developed the necessary skills needed for empirical research

using modern econometrics techniques. Through their computer based assignments they will be also trained in

conducting research using primary data. The students will also deepen their other transferable skills such as

written communication, teamwork, numeracy, computer literacy, problem solving and analytical skills.

33

CEC52105 STATISTICAL INFERENCE AND ESTIMATION METHODS

[SC/ Paper A: 4 Credits, 60 Contact Hours]

This course is designed for the students to understand the statistical knowledge of applied econometrics. They

will be introduced to the concepts of estimation, Hypothesis testing, linear and non-linear estimation and

maximum likelihood estimations. Students will be introduced to the software package ‘Stata’ to understand its

application in Econometrics.

Unit 1: Estimation (Point & Interval)

Introduction; point and interval estimation; Estimation of population parameters using methods of moments

and maximum likelihood procedures; properties of estimators; confidence intervals for population parameters.

Unit 2: Hypothesis Testing

Defining statistical hypotheses; distributions of test statistics; testing hypotheses related to

population parameters; Type I and Type II errors; power of a test; tests for comparing parameters from two

samples

Unit 3: Simple Linear Regression Model

Estimation of the slope and intercept parameters; inference and prediction; OLS and MLE

Unit 4: Sampling

Different types of Sampling; Principal steps in sampling; designing a questionnaire; Sample theory and

Properties; Sampling techniques.

Unit 5:Non-Linear Estimation

Introduction; Estimation of a Non-linear model; Application; Summary

Unit 6: Software Application of various techniques

Introducing Statistical packages; Stata and Eviews; Graphical exploration using Stata; Regression and other

statistical application in Stata; Summary.

34

Reference:

1. William G. Cochran, Sampling Techniques, John Wiley, 2007.

2. Jay L. Devore, Probability and Statistics; Seventh Edition;Cengage Learning, 2010

3. C Cameroon and P Trivedi, Microeconometrics Using Stata,Stata Press Publication,2009.

35

CEC52107

ADVANCED ECONOMETRIC METHODS

[SC/ Paper B: 4 Credits, 60 Contact Hours]

This course is designed to provide the fundamentals of Econometrics for a post-graduate Economic course.

Students will be introduced to fundamentals of econometrics applied to Cross-section, Time series as well as

panel data analysis. After advancing this course, students will be equipped to deal with empirical economics and

applied the techniques to a large number of Economics as well as other social science data.

Unit 1: Econometrics of Cross-Sectional Data Analysis

Classical Linear Regression Model (CLRM):Introduction; The method of ordinary least-square (OLS);

Statistical Inference; Prediction

Interval estimations; confidence interval for regression coefficients; Hypothesis testing; Analysis of Variance

(ANOVA); Applications; Summary

Multiple Regression Analysis; Estimation:Introduction; Interpretation of Multiple regression equations; OLS

and Maximum Likelihood Estimator (MLE) estimators; Applications; Summary

Dummy Variable Regression:Introduction; The nature of dummy variable; Interaction effects using dummy

variable; Regression with the combination of quantitative and qualitative regressor; Applications ; Summary.

Unit 2: Violations of the CLRM assumptions

Heteroskedasticity: Introduction; Testing for heteroskedasticity ; The method of generalized least

squares(GLS); Applications ;

Autocorrelation :Introduction; BLUE estimator in the presence of Autocorrelation; Consequence of

Autocorrelation; Detection of Autocorrelation; Correcting Autocorrelation; The method of GLS; Applications

Multicollinerity:The nature of Multicollinearity; Estimation in the presence of Multicollinearity; Detection of

Multicollinearity; Remedial measure; Applications

Unit 3: Econometrics of Time Series Analysis

The nature of Time series data; Finite sample properties of OLS; Trends and seasonality; Applications;

Stochastic Process; Unit root ; Testing for unit roots; Spurious regression; Infinite Distributed Lag models;

Cointegration and Error correction models; Forecasting; Application ; Summary

Unit 4: Pooled Data Analysis

Pooling cross sections across time; pooled cross sections; pooling characteristics; pooled data regression;

Application of Pooled data; Summary

Unit 5: Econometrics of Panel-Data Analysis

Fixed effect estimation model; Random effects estimation model; Hausman test: Fixed effect or Random effects

model; Application; Summary

Unit 6: Special Topics in Econometrics

36

Instrumental Variable Estimations:Introduction; Proxy variable vs Instrumental variable; Instrumental variable

estimation; Choice of an instrument; 2-Stage Least square methods, Applications; Summary.

Reference:

1. Jeffrey M. Wooldridge, Introductory Econometrics A Modern Approach; CENGAGE

Learning,2016

2. D.Gujarati, Basic Econometrics,C Porter and S Gunasekar; fifthedition,McGrawHill,2012.

3. William H.Green, Econometrics Analysis, Fifth Edition,Pearson,2016.

37

CEC52109

ECONOMETRIC ANALYSIS OF DATA

[SC/ Paper C: 4 Credits, 60 Contact Hours]

Econometrics analysis of Data is a course designed for the students to apply their theoretical knowledge of

econometrics in real Economic data. Students will be introduced one or two softwares will be able to apply

them in empirical economics using data.

Unit1: Learning a Basic Software like Stata

A Brief Introduction to Stata: Getting Help and Information; Running Stata; Dataset in Stata; Stata

Commands; Estimation; Graphics; Exercise

Unit 2: Data Description in Econometrics

Introduction to Data analysis; data mining and Filtering; Descriptive analysis of econometric Data;

Graphical exploration; Distributions of Econometric data; Summary.

Unit 3: Regression

Simple regression: Introduction; Modelling simple regression; Linear regression and least square principle;

Regression with graphics; Outliers,leverage and influence; Summary;

Partial regression: Interpreting multiple regression coefficients; Introduction; Multiple regression line;

partial regression and partial correlation; The t-test in multiple regression; Summary

Model selection and misspecification: Introduction; Omitted variable bias; Testing zero restriction; The use

of dummy variables; Summary;

Unit4: Regression with Cross-section Data

Heteroscedasticity: Introduction; Diagnostic test for Heteroscedasticity; Dealing with Heteroscedasticity;

Summary

Categories, counts and measurements: Introduction; egression on a categorical variable: Using dummy variable;

Multiple regression on categorical variables; Summary;

Logit transformation, modelling and regression: Introduction; The logit transformation; The linear probability

vs logit regression; Graphical analysis; Summary

Unit 5: Regression with time-series data

Trends, spurious and transformations to stationarity: Introduction; Stationarity and non-stationarity; Random

walk and spurious regression; Testing for stationarity; Transformation; Summary

Misspecification and autocorrelation: Introduction; Detecting autocorrelation; what to do about autocorrelation;

Summary;

38

Co-integration and error correction model: Introduction; What is co-integration?Testing for co-integration; The

Error correction model; Summary;

Unit 6: Applications in Multivariate Data Analysis

Introduction: Cluster Analysis; Factor Analysis; Multivariate Regression;

Reference:

1. Sophia Rabe-Hesketh and Brian Everitt ,A Handbook of Statistical Analysis Using Stata, Chapman and

Hall

2. Chandan Mukherjee, Howard White and Marc Wuyts ,Econometrics and Data Analysis for Developing

Countries , Routledge

39

CEC52106

MULTIVARIATE DATA ANALYSIS

[SC/ Paper D: 4 Credits, 60 Contact Hours]

Multivariate data analysis is a specialized branch in Econometrics and Statistics to deal with the problems in

involving multiple variables. Students will be introduced basic mathematics and statistics course as a pre-

requisite for Multivariate data analysis. Students will be introduced different concepts like Cluster Analysis,

Factor Analysis, Principal Component Analysis an Multivariate regression analysis as they advanced in the

course.

Unit 1: Introduction and Overview

Multivariate Analysis: A broad Definition and Narrow Definition; Concept of Variate; Choice of measurement

scale; Summary Notes

Unit 2: Some Basic Statistical and Mathematical concept

Univariate Data analysis; frequency distribution; Normal Distributions; Parameters and Statistics; Measurement

of variability; Note on Estimation; Characteristics of Bivariate Data; Range restriction, pearson correlation in

special cases; The Eta_Square measure; Phi coefficients; The Z` transformation; Linear regression; Statistical

Control: A first look at Multivariate Relations.Basic definitions of Matrix; Basic Matrix Operations;

Application of Matrix Algebra

Unit 3: Cluster Analysis

Methods in Cluster Analysis; Graphical Representations; Distance Matrix; Clustering Variables; Summary

Unit 4: Principle Component Analysis

Introduction; Illustration of PCA for two variables; Outline and examples of PCA; Illustrations and Further

readings; Summary

Unit 5:Factor Analysis

Introduction; Latent variable Models; Linear Single Factor model; General linear factor model; Choice of

factors; Rotations; Factor Analysis for Binary Data; Factor analysis for ordered categorical data; Further

readings; Summary

Unit 6: Regression Analysis

Introduction; Simple linear regression model; probability model of simple regression; Multiple regression;

inference; Transformation; Logistic regressions; Further readings; Summary.

Reference:

1. Ira H. Bernstein , Applied Multivariate Analysis, Springer-Verlag ,1988

40

2. David J. Bartholomew,Fiona Steele,Irini Moustaki,Jane I. Galbraith, Analysis of Multivariate Social

Science Data, Taylor and Francis,2008.

3. Alvin C. Rencher, Methods of Multivariate Analysis, Second Edition, Willey and Sons,2002.

SOFT CORE 2: ECONOMICS OF PUBLIC POLICY

Policy decisions by government officials at all levels are required to be increasingly multifaceted in the light of

resource constraints to ensure that decision-making contributes to sustainability of the development process.

Private not-for-profit and for-profit business entities also have a bearing on development-related policy

decisions. To respond effectively to these issues, civil servants and those engaged in the non-governmental

sectors, need to (1) be trained in the economics of public policy and in sophisticated methods and tools of

analysis, and (2) refresh their knowledge of the substantive development issues at hand.

Major public policy issues travel around the decision making around a) The economics of health care

provisioning and regulation of inefficiencies in health care market. b) Education: both elementary education as

merit good as well as complicated web of policy issues around higher education and c) Decision making

methodologies for optimum resource utilization, sustainable development, environmental valuation with

pollution and related environmental regulations.

The current specialization stream includes five compulsory papersto enable students to develop analytical and

critical skills relevant for understanding the challenges of public policy and its implementation. It also equips

you with skills that are essential for effective policy delivery:

1. Economics of Public Health

2. Economics of private health market

3. Economics of Education

4. Economics of Natural Resources

5. Environmental regulation and Valuation

41

CEC52111

ECONOMICS OF PUBLIC HEALTH

[SC/Paper A: 4 Credits, 60 Contact Hours]

Economics of Public Health is designed for post graduate students pursuing a career in public policy who

wish to use economic tools to improve the health of populations. The appropriate role of cost-effectiveness

and economic reasoning in the policy making process for health care, economic evaluations related to new

health interventions, services, or public health will be discussed in this course. The students should be able to

comprehend the economic theories embedded in different health policies and they should be able to design

appropriate incentives for betterment of public health.

Unit 1: Introduction

Public health and Policy; Key Economic Concepts; An Overview of the Normative Economics of the Health

Sector; Efficiency and normative frameworks - Welfare Economics Approach: The Pareto principle - Market

failure - The compensation principle - Cost-benefit analysis - Social welfare functions;

Unit 2: Health Policy: Global Measures

Millennium Development Goal and Health Care Issues; Health System in Developed nations; Health system in

developing countries; Measurements of Health: Vital statistics, Morbidity and Mortality - Burden of Diseases,

Concepts of DALY and QALY; Epidemiology and Morbidity Transition;

Unit 3: The Demand for Health and Demand for Health Care

Good Health; Health as a Form of Human Capital - Additional Factors that Affect the Investment in Health -

Understanding the Investment Aspects of the Grossman Model;

Health Care: A Normal, Superior, or Inferior Good?The Demand for Health Care - Preventive and Curative

Health care; Socio-economic determinants of health; Asymmetry of Information and Imperfect Agency -

Aggregate Demand for Health Care;

Unit 4: Healthcare Production, Costs, and Supply

The Nature of Production - Short Run Costs for a Medical Firm - Long Run Costs -The Nature of Supply - The

Estimation Of Costs: programme costs, morbidity costs, the estimation of mortality costs; The discounting of

costs and benefits; The treatment of taxes;

Unit 5: Market Failures and the Role of Government

The Perfectly Competitive Market - Pareto Efficiency - Externalities - Public Goods - Information

Imperfections -The Monopoly Model - Monopolistic Competition - Oligopoly - The Role of Government

Unit 6: Public Policy of Health Care and Govt. Regulations

42

Economics of Communicable diseases; Health care financing in Public Sector; Evaluating the Healthcare

System: Types of Economic Analyses - Assessment of an Economic Evaluation - The monetary value of health

changes: Private willingness to pay - Altruistic willingness to pay;

Concepts of Equity and Fairness in Health and Health Care; Measuring Inequality and Inequity in Health and

Health Care;

The Biopharmaceutical Industry - Drug Costs - - Market Structure - Government Regulation of the

Pharmaceutical Industry - Demand for Pharmaceuticals - Pricing Issues;

References:

1. Public and Private Social Policy: Health and Pension Policies in a New Era edited by Daniel Béland

and Brian Gran, Palgrave Macmillan, 2008.

2. Handbook of Health EconomicsVol1A edited by Anthony J. Culyer and Joseph P. Newhouse, Elsevier,

2000.

3. Essentials of Health Economics by Diane M. Dewar, Jones and Bartlett Publishers, 2010.

43

CEC52113

ECONOMICS OF PRIVATE HEALTH MARKET

[SC/Paper B: 4 Credits, 60 Contact Hours]

This course provides an introduction to the economic analysis of the health care market. The course is designed

to provide a micro-foundation of health economics. For that reasoning and tools of microeconomics are applied

to the study of health and medical care and implications for individual health behavior. Moreover, this course

will draw on models of behavior under asymmetric information, imperfect competition, agency and

optimization under uncertainty. Some of the other related issues like the functioning of hospital industry,

pharmaceutical industry, and effect of technological innovation in health care market will also be discussed.

Unit- I: An Overview of Health Economics

What is Health Economics, Why is Health Economics important, Key economic concepts related to health

economics, concept of hospital incentives and competition and physician agency.

Unit-II: Demand for Health and Health Care

Demand for Health: Health as a form of Human capital, Grossman’s Investment Model of Health: Marginal

efficiency of health capital, Wage effect; Consumption Model; Factors that affect the investment in health,

Empirical evidence concerning the Grossman model.

Demand for Health Care: Health care market, Information asymmetry, Price Elasticity, Aggregate demand for

health care.

Unit-III: Health Care Production, Cost, and Supply

Production: The Healthcare Production Function, Elasticity of Input Substitution, Nature of Production.

Cost: Short run costs for a medical firm, Short-run cost curve, Long-run costs, LACC.

Supply: Factors that affect supply, Labour market for Physician, The market for Nurses.

Unit-IV: Information Economics in Private Health Market –I

The Insurance Market: Demand for insurance, declining marginal utility of income, Uncertainty, Risk aversion,

Uncertainty and insurance, Comparing insurance contracts.

Moral Hazard: Problem of Moral Hazard in private health market,A graphical representation of moral hazard,

How to limit moral hazard, Evidence of moral hazard in health insurance, The tradeoff between moral hazard

and risk reduction, The upside of moral hazard.

Unit-V: Information Economics in Private Health Market –II

44

Adverse selection:Akerlof’s market for lemons-The intuition behind the market for lemons, a formal statement

of the Akerlof model, The adverse selection death spiral, When can the market for lemons work?

Adverse selection:the Rothschild–Stiglitz model- The full-insurance line, The zero-profit line, The feasible

contract wedge, Finding an equilibrium, Heterogeneous risk types, Indifference curves for the robust and the

frail, Information asymmetry and the pooling equilibrium.

Unit-VI: Issues in Health Industry

The Hospital Industry: The rise and decline of the modern hospital, The relationship between hospitals and

physicians, The relationship between hospitals and other hospitals, Nonprofits and hospital production, The

relationship between hospitals and payers.

Pharmaceutical Industry: The life cycle of a drug, the uncertainty and costs of drug development, Patents,

Induced innovation, Regulation of the pharmaceutical industry, Technology and the price of health care.

Health technology assessment: Cost-effectiveness analysis, evaluating multiple treatments: the cost-

effectiveness frontier, measuring costs, measuring effectiveness, Cost–benefit analysis: picking the optimal

treatment, valuing life.

Reading List:

1. Health Economics; Jay Bhattacharya, Timothy Hyde, Peter Tu; Palgrave Macmillan Press, 2014.

2. Essentials of Health Economics; Diane M. Dewar; Jones and Bartlett Publishers, 2010.

3. The Oxford Hand Book of Health Economics; Edited by Sherry Glied and Peter C. Smith; Oxford University

Press, 2011.

4. Principles of Health Economics for Developing Countries,William, Jack, World Bank Institute Development

Studies, 1999.

5. World Development Report, Investing in Health, The World Bank, 1993.

List of Journal Articles and Reports will be provided during lecture series.

45

CEC52115

ECONOMICS OF EDUCATION

[SC/Paper C: 4 Credits, 60 Contact Hours]

Objective: Education is increasingly being viewed as central to issues of development like productivity, income

distribution, employment, and knowledge as an input to production. This papercovers the interface between

economic theory and education in order to unravel how education contributes to socio-economic development.

Moving beyond the neo-classical approach, it uses alternative theoretical perspectives to analyze the linkages

between education and society. With a blend of theory and policy wide range of issues such as the relationship

between quality of education and economic growth, a critical overview of the input-output approach and human

capital theory, education as a public good the specific features of the education market, the nature of

competition in this market, and the role of the government funding, delivery, and regulation of education the

role of the public and private sectors will be covered under the domain of this paper.

Unit 1: Education and Economics: An Introduction

Three objectives of Education: Expansion, Excellence and Inclusion; Education in Economic Theory; Human

Capital Approach; Education in Growth Theory; Education in an Input-output frame- production function;

Critique to Human Capita Approach – Capability, Social choice; Education as public good; and Market and

Education – market failure; Policy issues and governance;

Unit 2: Human Capital Approach to Education

Developments in the theory of human capital; Rate of return – Estimation, Private versus social return; General

Earning function; Wage and rate of return; Income distribution – egalitarian and elite;

Unit 3: Education and Growth Theories

Technology, knowledge and growth; Solow’s model and technology; Endogenous growth theory; Technology,

knowledge and human capital; Technology, knowledge and Growth – Linkages in Romer’s Model; Knowledge

in new growth theories; Human Capital - Measurement and quality;

Unit 4: Production function in Education

Production function and productivity debates in Education; Human versus Physical capital; concept of input and

output in delivery of education; University as Non-profit organization; Education production function; Teaching

Learning process – concept of Efficiency and Productivity;

Unit 5: Critique of the Human Capital Theory

Education as screening device – signalling in job market – model; Who will invest? Investment in education –

social choice approach, collective choice approach, capability approach; Human capital versus human

development – Capability and capital; Critique to Sen’s Capability approach; critique to human capital theory –

Marxian Perspective;

Unit 6: Market and Market Failure in Education

46

Market and Market failure in Higher Education; Information asymmetry, Adverse selection & Moral Hazard;

Knowledge and Market Failure; Market Failure – imperfect capital market; Quasi-market for Higher Education;

features of the market; freedoms for providers; Market and equity;

Unit 7: Education and Public policy

Education as Public good; public versus private; Mode of Provisioning - Public versus private; Higher

education as public good or mixed good or merit good; primary education as merit good; Global private good;

commodification of education – WTO & GATS framework; Higher education as non-merit good;

Public funding; Education Financing: Critique to Neo-liberal Ideology; Private Participation – Pure private,

Public-private partnership;

New public Management: Governance Reforms; Choice of school, efficiency and quality; Quality Assurance

Mechanism; Indian Education system; Question of Autonomy; Globalization and Higher Education Market;

Text:

1. Saumen Chattopadhyay (2012): Education and Economics: Disciplinary Evolution and Policy

Discourse, OUP.

Reference:


3. Annual Report of Department of School Education & Literacy Department of Higher

Education,Ministry of Human Resource Development. Govt. of India, (Most current) http://mhrd.gov.in

47

CEC52110 ECONOMICS OF NATURAL RESOURCES

[SC/Paper D: 4 Credits, 60 Contact Hours]

This course is designed to introduce post-graduate economics students to the policy issues around natural

resources. Natural resources being scarce lead to core economic questions regarding the optimal rate of

extraction. On the other hand, how discovery of new resource bases change the pricing and usage of one

resource comes under the domain of resource economics. Finally the course also introduces ecosystem approach

to economics which essentially deals with the problem of irreversibility of the eco-system challenging the linear

approaches of economic instruments.

Unit 1: Conceptual Framework

Economics, Ethics and the Environment; Ecological Economics and the Material Balance Approach;

Environmental Economics and the Economics of Environment;Introduction to Resource Economics:

Elementary Capital Theory- The maximum Principle of optimal control Theory

Unit 2: Economics of Exhaustible Resources

A simple 2-period framework and the concept of Backstop; Extension to Dynamic Model of Mining with

modified Hotelling’s Rule; Depletion & Discovery under alternative market structures;

Unit 3: Economics of Renewable Resource

Forestry: Single versus Multiple use Forest- Optimal Rotation and Faustman’s Rule; Fishery: The concept of

Maximum Sustainable Yield (MSY), Optimization under alternative fishery management regimes-open access

solutions, Fishery and fish biodiversity, Mangrove-fishery linkages, Basic ideas of the theory of aquaculture

shrimp farming;

Unit 4: Common Property Resources

Poverty and Environmental Degradation; Community Management of Common Property Resources;

Coordination Failure- Increasing Returns, Free-riding Problem (Assurance Game and Prisoner’s Dilemma);

Community Institutions: Case Studies;

Unit 5: Ecosystem Management and Sustainable Development

Systems Approach; Linear vs. holistic thinking; Ecological Process; Traditional Knowledge in Ecosystem

Management; Ecosystem Restoration; Case studies; Irreversibility, Uncertainty and Economic Development;

Need for studying the economics of sustainable development; meaning of sustainable development –

Comparison with static and dynamic economic efficiency; Weak versus strong sustainability;

Unit 6: Measuring Sustainable Development

Environmental Kuznets Curve; Environmental Accounting: Basic Theory; Environmentally adjusted national

product; Green Accounting

48

References:

1. Dasgupta, P (1982): The Control of Resources, HUP.

2. Hanley, N., J.F. Shogren, and B. White, Environmental Economics: In Theory and Practice, Oxford

University Press, 2006.

3. Bhattacharya, R.N. (2001), Environmental Economics – An Indian Perspective, Oxford University

Press, Delhi.

4. Perman, Ma, MacGilvray and Common (2003) Natural Resource and Environmental Economics, 4/e,

Prentice Hall.

5. Baland&Platteau (2003): Economics of Common Property Management Regimes in Mäler& Vincent

(eds.) Handbook of Environmental Economics, Vol 1, North-Holland.

49

CEC52112

ENVIRONMENTAL REGULATION AND VALUATION


This course is designed to address environmental problems from the perspective of economics. Designing

economic instruments for regulation of environmental problems as well valuation of environmental services are

major two focus of this course. In addition to that, global climate change issues along with their macroeconomic

policy impact will be addressed in this course.

Unit 1: Environmental Regulation

Environmental Pollution as a Public Bad; Externality (Pigou), Property Rights (Coase), Optimal Pollution;

Pollution Control: Alternative Market Based Instruments – Pure policies (Emission Fees, Standard setting, and

Tradable Pollution Permits), Hybrid instruments (two-part tariff), Double Dividend Hypothesis, and Illicit

Dumping; Case Studies;

Unit 2: Introduction: Concept of Value

Measuring values, benefits and costs – overview; total value – use and non-use values of goods; Total

Economic Valuation; Resource evaluation and public policy; measuring demand for environmental goods –

consumer surplus, compensating and equivalent surplus,

Unit 3: Environmental Valuation: Production Function Approach

Household Production Function Approach to Economic Valuation; Environmental valuation from market

information including prices – dose response function, productivity change method, substitution cost method,

illness costs, human capital; applications

Unit 4: Environmental Valuation: Revealed preference Approach:

Revealed Preference Approach to Economic Valuation – basic theory; Hedonic pricing method – property

market and labor market; travel cost method – individual model and zonal model; Statistical Value of Life;

Unit 5: Environmental Valuation: Stated Preference Approach:

Hypothetical Market and Contingent Valuation Method; Contingent valuation method – bias, experimental

markets; choice modeling – choice experiment, contingent comparison, contingent scoring, pair comparison;

applications; Experimental Market

Unit 6: Climate Change Policy – Mitigation& Adaptation

Efficiency, public goods, externalities; environmental policy instruments – emissions trading, carbon tax,

emission trading versus tax; stock pollutants and discounting; decisions under risk and uncertainty;Climate

change impact assessment – applications for agriculture, sea level rise and health; vulnerability assessment;

economics of adaptation; measurement of adaptation cost; issues in financing adaptation; case studies;

References:

1. Bhattacharya, R.N. (2001), Environmental Economics – An Indian Perspective, Oxford University

Press, Delhi.

2. Kadekodi , G. (2004): Environmental Economics in Practice: Case Studies from India, OUP.

50

3. Pearce, D.W. and Turner. R.K.(1991) : Economics of Natural Resource and Environment, Harvester-

Wheatsheaf.

4. Baumol& Oates (1988): Theory of Environmental Policy (2/e), CUP

5. Murty, M.N. (2009), Environment, Sustainable Development, and Well-being: Valuation, Taxes and

Incentives, Oxford University Press, Delhi.

6. Hanley, N., J.F. Shogren, and B. White, Environmental Economics: In Theory and Practice, Oxford

University Press, 2006.

Bhattacharya, R.N. (2001), Environmental Economics – An Indian Perspective, Oxford University Press, Delhi.

51

SOFT CORE 3: BANKING AND FINANCE

Financial Economics deals with the fascinating world of pricing, interest rates and shares and how rational (or

even irrational!) decisions affect them. Financial Economics, is dedicated to the training of economists capable

of operating at international institutions or central government level in both the financial and economic sphere.

The students will explore the global role of these financial systems in modern economics and learn to analyse

the impact of economic events on financial markets.

Students will receive advanced training on quantitative methodologies and tools suitable to interpret and analyse

the economic and financial phenomena and to operate directly on financial markets or in international economic

institutions. The study program is designed to provide the students with solid background through the

development of topics of economic theory, analysis of financial markets, techniques of security valuation, how

to manage portfolio, and finally the knowhow of dealing with financial data in real world.

At the end of the course, they will become a proficient user of financial software and complex data sources

which will enable them to better understand the impact and reach of economic decisions. This course will

prepare students for specialist quantitatively orientated careers in financial economics, research and forecasting,

as well as those in the areas of business management, finance, banking and accountancy.

52

CEC52117

FINANCIAL INSTITUTIONS AND MARKET

[SC/Paper A: 4 Credits, 60 Contact Hours]

This course will help the learner know

• wide array of financial securities now available for investing,

• response of each security to the need the issuers as well as investors, and

• rules and regulations regarding these securities and the regulatory agencies.

• To be able from operational perspectives to examine and understand the way out of

a) the anomalies in working of the financial system and

b) failure in regulation.

such that if the learner wants to join a financial firm or pursue higher studies on finance, she feels comfortable

and sound.

Module 1: Concepts and Roles of Financial Markets

Concepts of Financial Markets, Concept of Financial Institutions, Banks vs. non-banking financial companies,

Relationship among Economic System, Financial System and Financial Market, Participants in Financial

Markets, Role of Financial markets in Investor Protection, Role of Financial in Risk Mediation

MODULE 2: Capital Market

Introduction to the Capital Market, Primary and Secondary Capital market, Capital Market Instruments, Capital

Market Intermediaries, Options, Futures, Derivatives, Emerging trends in capital market: Domestic and

International

MODULE 3: Money Market

Products and Participants in Money Market, Banks’ Role in Money Market, Money Instruments as Monetary

Policy Tools, Risks in Money Market

MODULE 4: Regulatory Institutions

Approaches to Regulatory Architecture, SEBI, IRDA: Jurisdictional Conflict over ULIP, RBI, SCRA, PFRDA,

Other regulators, Conflict of jurisdiction between different regulations

References

• Bert Scholtens and Dick van Wensveen (2003) The Theory of Financial Intermediation, The European

Money and Finance Forum Vienna, pp 3-43

53

• Frank Fabbozi (2008) Handbook of Finance, Volume I, Wiley and Sons, Chapters 1-17, 27-31, 64-66,

• Fredrick Mishkin and Stanley Eakins (2012) Financial Markets and Institutions, Chapters 3-6, 11-18,

23-24

54

CEC52119

PRINCIPLES OF MODERN BANKING

[SC/Paper B: 4 Credits, 60 Contact Hours]

This course discusses operations of the commercial banks with focus on India. In so doing, it aims to acquaint

the students with market practices and also with research on functional areas of the commercial banks such that

they feel at home while applying to a bank for job.

MODULE 1: Introduction

• Concept of Bank

• Types of Banks

• Concept and Example of Commercial Bank

• Concept and Example of Cooperative Bank

• Concept and Example of Rural Regional Bank

• Concept and Example of Private Bank

• Concept and Example of Investment Bank

• Concept and Example of Central Bank

• Concept and Example of Non-Bank Financial company

• Concept and Example of Bank Conglomerate

MODULE 2: Main banking businesses: deposits and loans

• Introduction to Banking Business

• Types of Deposits

• Rules for Opening and Operating Deposit Accounts

• Pricing of Deposits • Deposit Insurance

• Types of Loans • KYC Norms for Loan Accounts

• Pricing of Loans

• Project Finance

• Credit Appraisal, Approval and Monitoring

MODULE 3: Bank Regulation and Supervision

• Concept of Regulation

• Reserve Bank of India

• Basel Committee

• Federal Reserve System of USA

55

• Financial Services Authority of UK

• European Central Bank

• Concept of Financial Crisis as Failure of Regulation

MODULE 4: Bank risk management in lending & operations

• Concept of Risk facing Banks

• Concept of Credit Risk

• Measure of Credit Risk

• Management of Credit Risk

• Concept of Operational Risk

• Measure of Operational Risk

• Management of Operational Risk

References:

• Saunders A and M M Cornett, (2008). Financial Institutions Management – A Risk Management

Approach, Boston: McGraw-Hill, Chapters 7, 11, 12 and 16.

• Wong Michael C. S. (Ed.), The Risk of Investment Products: From Product Innovation to Risk

Compliance, WSPC USA, 2011

• Hull John C, Options, Futures and Other Derivatives, Prentice Hall, New Delhi, 2000

56

CEC52121

CORPORATE FINANCE


The course aims at providing understanding of capital budgeting techniques, the advantages of using Net

Present Value versus Internal Rate of Return to calculate the value of financing decisions or projects, when and

how to use payback periods and risk analysis to rank financing decisions, identify the formulas for calculating

cash flows resulting from investments and their use to determine the profitability of a financing decision or

project for a business.

In terms of corporate finance best practices, students will also learn about the financial and strategic basis for

financing decisions, various public and private techniques and products available for both short term and long

term financing, techniques for cash flow management, forecasting and planning, and best practices of cash flow

management as it applies to real life examples.

Unit 1: Introduction

Finance Manager’s Role − Separation of Ownership and Management Objectives of the Firm and Corporate

Governance − Financial Statements and Cash Flow − Financial Statements Analysis.

Unit 2: Working Capital Management

Working Capital Components − Leverage − Cash management − Receivables Management − Inventory

Management − Financing Current Assets − Regulation of Bank Finance.

Unit 3: Capital Budgeting

Measures of Investment - Choice Investment and Financing Decisions − Time Value of Money − Net Present

Value – Internal Rate of Return − Discounted Payback Period − Cost of Capital − Selection of Criteria Risk,

Return and Opportunity Cost of Capital Valuation of Bonds and Common Stock Scenario Testing and

Sensitivity Analysis Strategy V Investments − Practical Problems in Budgeting − Agency, Compensation and

Performance Measure.

Unit 4: Patterns of Financing

Internal Funds − Common Stock − Debt − Financial Markets/Institutions − Issue of securities − Venture Capital

− Initial Public Offering − Security Sales and Auctions – Private Placements and Public Issue Junk Bonds.

Unit 5: Capital Structure & Financing of Long Term Capital

Planning Capital Structure − Capital Structure Choice Extended Probabilistic Analysis − Dividend Payout

Policies − Share Valuation − Sources of Long Term Capital – Debt Securities − Debt Policy and Leverage Risk

Management.

Unit 6: Use of Derivatives and Corporate Finance

Options and Corporate Finance − Options and Corporate Finance: Extensions and Applications − Warrants and

Convertibles − Derivatives and Hedging Risk.

57

Readings:

1. Brealey, R.A., Myers, S.C. and Allen, F. (2014). Principles of Corporate Finance, 11th

Ed, McGrawHill.

2. Damodaran, Aswath. (2007). Corporate Finance Theory and Practice, 2ne Edition, Wiley.

3. Ross, Westerfield, Jaffe, Kakan. (2014). Corporate Finance, 10th

Edition, McGraw Hill.

58

CEC52114

PRINCIPLES OF INVESTMENT BANKING

[SC/Paper D: 4 Credits, 60 Contact Hours]

This course is complementary to the course “Principles of Modern Banking”. While a bank operates in the

financial market primarily as proprietary trader and investor, an investment operates in the financial market

largely on behalf of the client. Worldwide the investment banks engage in investment banking, principal

transactions, asset management and securities services. In order to maximize revenue or profit amidst stringent

regulation, the banks create conglomerates or banking groups where an investment bank as a subsidiary member

of the conglomerate helps maximization of group benefits. In order to protect public trust a regulator often

restricts a bank to deal with complex securities using the deposits but such restrictions may not apply to an

investment bank.

Unit 1: Definition, Evolution and Types of Investment Banks

• Glass Steagall Act of 1933

• Gramm-Leach-Bliley Act of 1999

• Financial Holding Companies

• Full Services Investment Bank

Unit 2: Introduction Boutique Houses

• What is a Boutique House?

• Activities of Sandler O’Neill

• Activities of Greenhill

• Activities of Lazard

• Activities of Houlihan Lokey

Unit 3: Activities of Full Services Investment Banks

• Merger and Acquisition Advisory Services

• Underwriting Activities

• Valuation Services

• Financial Restructuring

• Fairness Opinion

Unit 4: Trading, Principal Investment and Asset Management

• Approaches to Trading

• Principal Investments

• Merchant Banking

• Private Equity

• Asset Management

59

• Financial Engineering

• Prime Brokerage

Reference:

• Handbook of Finance, Volume I, Frank Fabbozi (Ed.), John Wiley & Sons, Hoboken 2008

60

CEC52116

SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT

[SC/Paper E: 4 Credits, 60 Contact Hours]

Unit 1: Understanding Investments

Investment Environment: Investment Objectives and Constraints − Markets and Instruments − Trading of

Securities, Mutual Funds and Collective Investment Vehicles

Risk and Return: Measures of Return and Risk − Calculating the Mean Historical Returns − Expected Rate of

Return − Measuring the Risk of Expected Returns − Determinants of Required Rate of Return − The Risk Free

rate − Risk Premium − Financial Premium

Unit 2: Valuation of Investments

Fixed Income Instruments: Bond Returns and Prices − Systematic and Unsystematic Risk involved in Fixed

Income Securities − Present Value Model and Bond Valuation.

Equity Shares: Dividend Discount Models − Free Cash Flow to Equity Discount Models − Free Cash Flow to

the Firm − Cost of Capital Approach − Firm Valuation − Estimating Equity Value per Share.

Unit 3: Security Analysis

Economic Analysis − Economic Forecasting and Stock Investment Decision – Forecasting Techniques −

Industry Analysis − Industry Life Cycle − Structural Analysis − Techniques for Evaluating Relevant Industry

Factors − Sources of Information for Industry Analysis – and Company Analysis − Analysis of Financial

Statements.

Unit 4: Introduction to Portfolio Analysis

Characteristics of Opportunity Set − Decision under Certainty − Characteristics of Portfolio − Diversification −

Risk and Return Characteristics − Minimum Variance Portfolio – Efficient Frontier

Unit 5: Portfolio Analysis

Single Index Model − Beta Estimation and Forecasting − Portfolio Optimization – Markowitz Risk Return

Optimization − Sharpe’s Optimization − Lintner’s Method of Short Sales

Unit 6: Models of Equilibrium in Capital Markets

Standard Capital Asset Pricing Model – Non-standard CAPM − Empirical tests – Arbitrage Pricing Theory –

Fama- French Three Factor Model.

61

CEC52718

DISSERTATION II

[MDS: 4 Credits, 60 Contact Hours]

This is a sequel to Dissertation I of first year. Students who have already started their work in second semester,

will submit their final report on dissertation during this semester. The students will work on data collection,

analysis, dissertation writing under the supervision of any faculty member.

ECONOMICS

TIME TABLE

TIME TABLE FOR BA/B.Sc. ECONOMICS Semester I*

9.30-10.30 10.30-11.30 11.30-12.30 12.30-

1.30

1.30-2.30 2.30-3.30 3.30-4.30 4.30-5.30

MONDAY Basic

Mathematics

[B-II]

English

Language

[B-I ]

Principles of

Accounting [PM,

B-I]

Introductory

Microeconomics

[SB , B-I ]

ELECTIVES Principles of

Human

Resource

Management

[SP, B-I ]

Professional

Studies

TUESDAY Principles of

Accounting

[PM, B-I ]

Basic

Mathematics

[B-II]

ELECTIVES Introductory

Microeconomics

[SB , B-I ]

English

Language

[B-I]

ELECTIVES Professional

Studies

WEDNESDAY ELECTIVES ELECTIVES Basic

Mathematics

[B-II]

Introductory

Microeconomics

[SB , B-I ]

Principles of

Human

Resource

Management

[SP, B-I]

Foreign Language/

Communicative English

THURSDAY Principles of

Human

Resource

Management

[SP, B-I]

Basic

Mathematics

[B-II]


Microeconomics

[SB , B-I ]

English

Language

[B-I]

Professional

Studies

FRIDAY Principles of

Accounting

[PM, B-I ]


Microeconomics

[SB , B-I ]

ELECTIVES ELECTIVES Basic

Mathematics

[B-II]

Professional

Studies

SATURDAY Basic

Mathematics

[B-II]

Test/Tutorial

Introductory

Microeconomics

[SB , B-I ]

Test/Tutorial

Test

L

U

N

C

H

* in process

PM: CA PAthik Mitra, SB: Mr. Samyo Basu

Course Codes

Code Course

CEC31101 INTRODUCTORY MICROECONOMICS

CEC31103 BASIC MATHEMATICS

CCO311101 PRINCIPLES OF ACCOUNTING

TIME TABLE FOR MA ECONOMICS Semester I*

9.30-10.30 10.30-11.30 11.30-12.30 12.30-

1.20

1.30-2.30 2.30-3.30 3.30-4.30 4.30-5.30

MONDAY Advanced

Microeconomics

[RPD, B-I ]

History of

Economic

Thought

[SB, B-I]

Institutional

Economics [B-I

208]

Institutional

Economics [B-I

208]

Professional

Studies

TUESDAY History of

Economic

Thought [SB, B-I]

Mathematical

Economics [SM,

B-I]

Mathematical

Economics

[SM, B-I]

Professional

Studies

WEDNESDAY Advanced

Microeconomics

[RPD, B-I ]

History of

Economic

Thought

[SB, B-I]

Advanced

Macroeconomics

[ST, B-I ]

Advanced

Macroeconomics

[ST, B-I ]

Foreign Language/

Communicative English

THURSDAY Advanced

Microeconomics

[RPD, B-I ]

History of

Economic

Thought

[SB, B-I]

Advanced

Macroeconomics

[ST, B-I ]

Professional

Studies

FRIDAY Advanced

Microeconomics

[RPD, B-I ]

Professional

Studies

SATURDAY Institutional

Economics [B-I

208](Guest

Faculty)

Institutional

Economics

[B-I 208]

(Guest

Faculty)

Test

L

U

N

C

H Mathematical

Economics [SM,

B-I]

Mathematical

Economics [SM,

B-I]

*Room number is yet to be decided.

RPD: Prof. Rituparna Das ST: Dr. Sabyasachi Tripathi DD: Dr. Debanjana Dey

SM: Dr. Shirsendu Mukherjee SB: Mr. Samyo Basu

Code Course title Faculty

CEC51101 ADVANCED MICROECONOMICS Rituparna Das

CEC51103 ADVANCED MACROECONOMICS Sabyasachi Tripathy

CEC51105 MATHEMATICAL ECONOMICS Sabyasachi Tripathy

CEC51107 HISTORY OF ECONOMIC THOUGHT Samyo Basu

CEC51109 INSTITUTIONAL ECONOMICS Shirsendu Mukherjee