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DEPARTMENT OF ECONOMICS
Faculty of Arts
The Maharaja Sayajirao University of Baroda
Master of Arts Programme of Studies
ECONOMICS
4-Semester Course
3 Credit Course per paper per semester
Maximum 45 hours per paper
Course Titles and Detailed Syllabi
[w.e.f. 2013-2014]
1
Titles of Courses
Semester
Semester-01
(06 + 01)
Semester-02
(06 + 01)
Semester-03
(06 + 01)
Semester-04
(06 + 01)
Course No.
CORE - 01
CORE - 02
CORE - 03
CORE - 04
CORE - 05
INTD ELCTV - 01
PROJECT - 01
CORE - 06
CORE - 07
CORE - 08
CORE - 09
CORE - 10
INTD ELCTV - 02
PROJECT - 02
CORE - 11
CORE - 12
CORE - 13
CORE - 14
CORE - 15
INTD ELCTV - 03
PROJECT - 03
CORE – 16
CORE – 17
CORE – 18
CORE – 19
CORE – 20
INTD ELCTV – 04
PROJECT – 04
Course Title
Microeconomic Analysis – I
Macroeconomic Analysis – I
Mathematical Methods in Economics
Environmental and Natural Resource Economics
(a) Agricultural Economics
OR
(b) Financial Institutions and Markets
Structure of Indian Economy
Project Work
Microeconomic Analysis – II
Macroeconomic Analysis – II
Statistical Methods for Economic Analysis
Indian Economic Policy
(a) Econometrics
OR
(b) Economics of Insurance
Urban Economics
Project Work
Development Economics
Theoretical Foundations of Public Economics
International Trade
Welfare Economics
(a) Economics of Gender and Development
OR
(b) Industrial Economics
Gujarat Economy
Project Work
Economics of Growth and Structural Change
Fiscal Federalism – With Reference to India
International Finance and Monetary System
Economics of Human Resources
(a) Economics of Infrastructure
OR
(b) Mathematical Economics
Rural Economics
Project Work
28 X 3 = 84
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M.A. ECONOMICS : SEMESTER I
Core 01
MICROECONOMIC ANALYSIS – I
[Paper Code : AM1C01EC0N]
Objectives:
At the end of this course students will be able to :
Comprehend in adequate details and depth the micro economic models.
Develop insight about the decision making process of micro economic units.
Explain Economic theory in a mathematical frame work.
Apply microeconomic tools to amylase and explain real world economic
phenomena.
Develop skill of policy formulation for economic decision at a micro level.
Course Outline
UNIT I : Demand Analysis
[11 Hours]
Theories of demand; Cardinal Utility Analysis of Demand, Indifference curves and
their applications; Revealed Preference theory; Marshall & Hick’s Concept of
Consumer Surplus; Concept and measurement of elasticities of demand,
Bandwagon, Snob, and Veblen Effects, Statistical Demand Curves, Linear
Expenditure System.
UNIT II : Theory of Production and Costs
[12 Hours]
Production function - short period and long period; Law of variable proportion and
returns to scale; Iso-quant - Least cost combination of inputs; Returns to factors;
Economies of scale; Multi product firm; Elasticity of substitution; Euler's theorem;
Technical progress and production function; Cobb-Douglas production function.
UNIT III : Price and Output Determination
[10 Hours]
Review of Market Structure - Oligopoly - Non-collusive (Cournot, Bertrand,
Edgeworth, Chamberlain, kinked demand curve and Stackleberg's solution) and
collusive (Cartels an mergers, price leadership and basing point price system)
models; Price and output determination under monopsony and bilateral monopoly;
Critical evaluation of marginal analysis.
UNIT IV : Behavioural Theories of Firm
[12 Hours]
Baumol's sales revenue maximization model; Williamson's model of managerial
discretion; Marris model of managerial enterprise; Full cost pricing rule; Bain's limit
pricing theory; Behavioural model of the firm; Game theoretic models.
3
Modes of Transaction
Lecture method is generally used but along with it as and when required, discussion
method would be used.
Activity assignments (that is practical numerical problems) may be given to the
students and assignment method would help them to learn by doing.
Students may be given training by use of computer.
Power Point presentation may be used for delivering lectures.
References (All Latest Editions wherever applicable)
1.
Chauhan S.P.S. (2009), Microeconomics – An Advanced Treatise (1st Edition),
PHI Learning Private Limited, New Delhi.
2. Dominick Salvatore (2003), Microeconomics – Theory and Applications
(4th Edition), Oxford University Press, New Delhi.
3. Jeffrey M. Perloff (2001), Microeconomics (2nd Edition), Pearson Education
Asia, New Delhi.
4. Koutsoyiannis A. (1979), Modern Microeconomics, (2nd Edition) Macmillan
Press, London.
5. Kreps David M. (1990), A course in Microeconomics Theory, Princeton
University Press, Princeton.
6. Layard P.R.G. and A.W. Walters (1976), Microeconomics Theory, Mcgraw Hill,
New York.
7. Robert S. Pindyck & Daniel L. Rubinfeld (2002), Microeconomics (5th Edition),
Pearson Education Asia, New Delhi.
8. Sen A. (1999), Microeconomics Theory and Applications, Oxford University
Press, New Delhi.
9. Stigler G. (1996), Theory of Price, (4th Edition), Prentice Hall of India, New
Delhi.
10. Varian H. (2000), Microeconomic Analysis, W.W. Norton, New York.
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M.A. ECONOMICS : SEMESTER I
Core 02
MACROECONOMIC ANALYSIS – I
[Paper Code : AM1C02EC0N]
Objectives:
To enable the students think independently about real world situation and help
them master the basic analytical tools.
To provide an integrated view of macroeconomics and to make close contact with
current macroeconomics events.
Course Outline:
UNIT I : Introduction, Measurement and Framework for Aggregative Analysis
[11 Hours]
The development of macroeconomics – subject matter and fundamental concepts –
Aggregation, Macro economic equilibrium and Micro foundations – circular flow of
Income and expenditure – Macroeconomic Goals and Instruments - Income
concepts – Income measurements – Nominal and Real Income – Measured and PPP
Income – Income and Human development Index – Income and welfare
UNIT II : Classical Economics and Keynesian Revolution
[11 Hours]
Salient features of classical paradigm – Determinates of output and employment –
working of goods, Money and commodity market – salient features of Keynes’s
Paradigm – Critique of classical system – Role of Aggregate Demand and
components of Aggregate Demand – Consumption function, savings function and
Investment multiplier – Simon Kuznets findings – absolute income, relative income,
Life cycle and Permanent income – Investment – Determinants of Investment.
UNIT III : Supply and Demand for Money
[11 Hours]
A behavioural model of money supply determination, RBI approach to money
supply; High powered money and money multiplier; budget deficits and money
supply; money supply and open economy; control of money supply.
Classical approach to demand for money -- Quantity theory approach, Fisher's
equation, Cambridge quantity theory, Keynes's liquidity preference approach,
transaction, precautionary and speculative demand for money --- aggregate
demand for money; Equilibrium of demand and supply of money.
UNIT IV : Neo-classical Keynesian Synthesis and New Classical Macroeconomics
[12 Hours]
Neo-classical and Keynesian views on interest; The IS-LM Models; Extension of ISLM model with government sector; Relative effectiveness of monetary and fical
policies; Extension of IS-LM models with labour market and flexible prices : PostKeynesian approaches to demand for money --- Patinkin and the Real balace Effect,
approaches of Baumol and Tobin; Friedman and the modern quantity theory; Crisis
in Keynesian economics and the revival of monetarism.
5
Modes of Transaction
The major part of the course work will be taught by the lecture method but
wherever necessary, discussion on different practical issues will also be employed.
Some portion of the course work would be given to students in the form of
assignments.
Audio-visual aids in terms of Power Point presentations of assignments by students
would be encouraged. Teachers will also be encouraged to use such audio-visual
aids in explaining certain concepts.
References (All Latest Editions wherever applicable)
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
Ackley, G (1978), Macroeconomics : Theory and Policy, Macmillan, New York.
Branson, W.A. (1989), Macroeconomic Theory and Policy, (3rd Edition), Harper
and Row, New York.
Burda and Wyplosz (2009), Macroeconomics,
Carlin Wendy & Soskice David (2007), Macroeconomics – Imperfection,
Institutions and Policies – Oxford University Press.
D’souza Errol (2008), Macroeconomics : Dorling Kindersley(India) Pvt. Ltd.
Dornbusch R. Fischer S. & Startz R. (2004), Macroeconomics, Tata McGraw –Hill
ed.
G. S. Gupta (2004), Macroeconomics – Theory and applications, McGraw-Hill.
Gordon, R.J. (1998), Macroeconomics, Addison Wesley.
Harris, L. (1985), Monetary Theory, McGraw Hill, New York.
Jha, R. (1991), Contempory Macroeconomic Theory and Policy, Wiley Eastern
Ltd., New Dehli.
Levacic, R. and Rebmann. A (2003), Macroeconomics – An introduction to
Keynesian – Neoclassical controversies, - MacMillan Press Ltd.
M. C. Vaish, Macroeconomics Mankiw, N.G. (2000), Macroeconomics, MacMillan
Poindexter, J.C. (1981), Macroeconomics, The Dryden Press.
Richard T. Froyen (2009), Macro Economics – Theories and Policies, Prentice
Hall.
Scarfe, B.L. (1977), Cycles, Growth and Inflation, McGraw Hill, New York.
Shapiro, E. (1996), Macroeconomic Analysis, Galgotia Publications, New Delhi.
Surrey, M.J.C. (Ed.) (1976), Macroeconomic Themes, Oxford University Press,
Oxford.
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M.A. ECONOMICS : SEMESTER I
Core 03
MATHEMATICAL METHODS IN ECONOMICS
[Paper Code : AM1C03EC0N]
Objectives
The student will learn the mathematical tools for modeling economic behaviour.
The mathematical economic models are used for predictive purposes planning and
decision-making.
At the end of the course the student will gain the insight of formulating simple
mathematical models in economics on his/her own.
Course Outline:
UNIT I : Analysis of Equilibrium Economic Models:
[10 Hours]
Meaning of Equilibrium-Partial Market Equilibrium-General Market EquilibriumComparative Statics and Concept of Derivative-Partial Differentiation- Total
Differential and Derivatives- Implicit Functions- Analysis of General Function
Models
UNIT II : Optimization and Equilibrium Analysis
[10 hours]
Optimum Values and Extreme Values-Higher Order Derivatives- Total Differential
Version of Optimization—Optimization with Equality Constraints- Lagrange
Multiplier Method.
UNIT III : Mathematical Programming & Game Theory
[12 hours]
Linear programming and its applications – simplex method, duality and Shadow
prices – Concept of a game; Strategies – simple and mixed; Prisoner’s DilemmaValue of a game; Saddle point solution; Mixed Strategies-Dominant Strategies.
UNIT IV : Dynamic Models in Economics
[13 hours]
Derivatives of Exponential and Logarithmic Functions-Optimal Timing-Rate of
Growth - Dynamics and Integration-Economic Applications of Integrals- Simple
Difference & Differential Equations- Phase Diagrams.
Modes of Transaction:
Instruction will be based on the lecture method with interactive sessions.
Assignments and tutorials on applications and practice problems will be extensively
used.
Wherever possible, practical problems will be implemented on computers.
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References (All Latest Editions wherever applicable)
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
Alpha C. Chiang and Kevin Wainwright, Fundamental Methods of Mathematical
Economics, 4th ed. (New York, NY: McGraw-Hill, 2005).
Anthony Martin & Norman Biggs, Mathematics for economics and finance:
methods and modeling, Cambridge University Press, 2003 reprint.
Chiang Alpha, Elements of Dynamic Optimization, Publisher: McGraw-Hill UK,
1992.
Hands D. Wade, Introductory Mathematical Economics, Oxford University Press,
2003.
Mavron Vassilis C. and Timothy N. Phillips, Elements of Mathematics for
Economics and Finance, Springer, 2007
Michael Hoy John Livernois, Chris McKenna, and Ray Rees, Mathematics for
Economics, 2nd ed. (Cambridge, MA: MIT, 2001)
Michael Klein, Mathematical Methods for Economics, 2nd ed. (Reading, MA:
Addison Wesley, 2001)
Osborne, Martin J., An Introduction to Game Theory, Oxford University Press Inc,
USA, 2003.
Pemberton Malcolm & Nicholas Rau, Mathematics for Economists: An
Introductory Textbook, 2nd ed. (Manchester, UK: Manchester University Press,
2006)
Romp Graham, Game Theory - Introduction and Applications, Oxford University
Press, 1997.
Rosser Mike, Basic Mathematics for Economists, Second Edition, Routledge.
Silberberg Eugene, The Structure of Economics: A Mathematical Analysis 3rd
ed., (3rd ed. with Wing Suen). McGraw-Hill
Turkington Darrell Mathematical Tools for Economics, Publisher: Blackwell
Publishing, 2006.
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M.A. ECONOMICS : SEMESTER I
Core 04
ENVIRONMENTAL AND NATURAL RESOURCE ECONOMICS
[Paper Code : AM1C04EC0N]
Objectives:
To provide an overview of the theoretical principles, policy instruments, and
current practice of using economics in understanding environmental problems.
To understand the market system, the externalities causing market failure, and the
mechanisms to correct for externalities.
To understand the basics of cost-benefit analysis and the problems associated with
their measurements.
To apply economic tools for evaluating environmental policies.
To analyze economic incentives that lead to environmental improvement or
degradation.
To understand the legal institutions responsible for environmental protection.
To analyse and understand effective natural resource management practices.
Course Outline:
UNIT I : Fundamentals of Environmental Economics
[11 hours]
Welfare foundations – Pareto Optimality – efficiency in production and consumption
– issues in allocation of environmental resources : externalities, public goods,
missing markets, imperfect markets, market failure, non-convexities, common
property resources, transaction costs (Coase Theorem), social cost, Property Rights
– uncertainty, irreversibility and asymmetry – laws of Thermodynamics, material
balance principle – Sustainable Development : concept, measures and indicators –
environmental accounting.
UNIT II : Environmental Valuation
[10 Hours]
Environment-economy linkages – Causes and effects of environmental degradation
– Concept of total economic value : Use values; Option values and non-use values –
non-essentiality and weak complementarity – environmental demand theory – WTP
and WTAC – compensated demand – Measurement of Environmental Values :
Valuation methods – Methods based on observed market behaviour : Hedonic Model
– Property pricing and travel cost methods – hypothetical markets (Stated
Preference) – contingent valuation method.
UNIT III : Environmental Protection: Instruments & Legislation
[10 Hours]
Pollution prevention, control and abatement : Criteria for and classification of
control instruments, cost-effectiveness – Command and control vs. market-based
instruments, their merits and demerits – macroeconomic policies and environment
– environmental policy in India : Legal institutions, legislations and instruments –
Environmental Impact Assessment – WTO and environment.
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UNIT IV : Economics of Natural Resource Use
[14 Hours]
Natural resource categories – economics of Water resource : characteristics, pricing,
need for intervention in water supply – Mineral economics : theory of optimal
extraction of a non-renewable resource. sustainability issues, resource discovery,
backstop technologies – economics of Fishery – bionomic model of fishery, effortyield function, efficient rates of effort, fisheries management – Forestry economics –
optimal rotation period, portfolio choice – Energy use and impact on health and
natural resources.
Modes of Transaction:
The major part of the course work will be taught by the lecture method but
wherever necessary, discussion on different practical issues will also be
employed.
Some portion of the course work would be given to students in the form of
assignments.
Audio-visual aids in terms of PowerPoint presentations of assignments by
students would be encouraged. Teachers will also be encouraged to use such
audio-visual aids in explaining certain concepts.
Wherever feasible, students may be taken on field trips to gather data as well as
observe the working of the economy.
References (All Latest Editions wherever applicable)
1.
2.
Ahuja, H.L. – Advanced Microeconomic Theory, S. Chand & Co., New Delhi
Barry C. Field. (2008) – Natural Resource Economics: An Introduction (second
edition), Waveland Press.
3. Bhattacharya, R.N. (Ed.) (2001), Environmental Economics: An Indian
Perspective, Oxford University Press, New Delhi.
4. George K.D. and Shorey J.(1978) - The Allocation of Resources, London, George
Allen & Unwin Ltd.
5. Hartwick, J. and N. Oliweler – Economics of Natural Resource Use, Harper and
Row Publishers, New York
6. Kneese, A. and J. Sweeny (eds.) (1985) – Handbook of Natural Resource and
Energy Economics, North-Holland.
7. Kolstad, C.D. (2000), Environmental Economics, Oxford University Press, Oxford.
8. Nick, Hanley, Shogren and White (1997) – Environmental Economics, Macmillan.
9. Pearce, D.W. and R.K. Turner (1991), Economics of Natural Resource Use and
Environment, Johns Hopkins University Press, Baltimore.
10. Perman, R. et. al. (1999) – Natural Resource and Environmental Economics,
Longman, Pearson Education Ltd.
11. Tietenberg, Tom (1998) – Environmental Economics and Policy, California,
Addision Wesley.
12. Tietenberg, Tom (2004) – Environmental and Natural Resource Economics,
California, Pearson Education Ltd., New Delhi.
10
M.A. ECONOMICS : SEMESTER I
Core 05(a)
AGRICULTURAL ECONOMICS
[Paper Code : AM1C05EC0N]
Objectives:
At the end of the course the students will be able to understand:
The application of economic theory to agricultural production.
Labour market in the agriculture sector.
The mechanics for agricultural produce distribution, agricultural prices and
finance.
Issues affecting agricultural growth in India.
Course Outline:
UNIT I : Agricultural Production and Productivity
[14 Hours]
Nature and scope of agricultural production economics; Agricultural production –
Resource use and efficiency; Cost analysis and Production function analysis in
agriculture; Factor combination and resource substitution; Size of farm and laws of
returns – Theoretical and empirical findings; Farm budgeting and cost concepts;
Behavior of agricultural prices – Cobweb Model.
UNIT II : Factor Market and Modernization of Agriculture
[08 Hours]
Rural labour supply; interlocking of factor markets: Mobility of labor and
segmentation labor markets; marginalization of rural labor; Nature, extent and
trends in rural unemployment; Agricultural wages in India; Male-female wage
differences; Analysis of the process of modernization of agriculture,
Interdependence between agriculture and industry.
UNIT III : Agriculture Sector Policies: Distribution, Prices and Finance
[11 hours]
Regulated Market and marketable surplus; marketing infrastructure, crop
insurance; Pricing of inputs and role of subsidies Terms of trade between
agricultural and non-agricultural prices; objectives of agricultural price policy, Food
security in India and public distribution system, agricultural finance : NABARD and
Co-operation.
UNIT IV : Agricultural Growth in India
[12 Hours]
Recent trends in agricultural growth in India: Inter-regional variations in growth of
output, Cropping pattern shifts; Role of Public investment and capital formation in
Indian agriculture; Sustainable agriculture : Bio-technological practices and growth
potential, Globalization & Indian Agriculture, WTO and its effect on Agriculture
sector.
Mode of Transaction : Lecture method and class discussions.
11
References (All Latest Editions wherever applicable)
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
Bhaduri, A. (1984), The Economic Structure of Backward Agriculture, Macmillan,
Delhi.
Bilgrami, S.A.R. (1996), Agricultural Economics, Himalaya Publishing House,
Delhi.
Dantwala, M.L. et. al. (1991): Indian Agricultural Development Since
Independence, Oxford & IBH, New Delhi.
Desai Pranav K. (2010) – Agricultural Economics, Biotech books, New New
Delhi.
Government of India (1976), Report of the National Commission on Agriculture,
New Delhi.
Government of India, Economic Survey, (Annual), New Delhi.
Gulati A. and R. Kelly (1999), Trade Liberalisation and Indian Agriculture, Oxford
University Press, New Delhi.
I. Sundar L. (2009), Principles of Agricultural Economics, Sarap Book Publisher,
New Delhi.
Joshi, P.C. (1975): Land Reforms in India: Trends and Prospects, Allied
Publishers, Bombay.
Kahion, A.S. and Tyagi D.S. (1983): Agriculture Price Policy in India, Allied
Publishers, New Delhi.
Rao, C.H. Hanumantha (1975), Agricultural Growth, Rural Poverty and
Environmental Degradation in India, Oxford University Press, New Delhi.
Reserve Bank of India, Report on Currency and Finance (Annual), Mumbai.
Ruddar dutt and K.P.M. Sundaram (Latest Edition), Indian Economy, S. Chand &
Co.
Rudra, A. (1982), Indian Agricultural Economics : Myths and Reality, Allied
Publishers, New Delhi.
S. Subba Reddy and others (2004), Agricultural Economics, Oxford & IBH
Publishing Co. Pvt. Ltd., New Delhi.
Saini, G.R. (1979), Farm Size, Resource Use Efficiency and Income Distribution,
Allied Publishers, New Delhi.
12
M.A. ECONOMICS : SEMESTER I
Core 05(b)
FINANCIAL INSTITUTIONS AND MARKETS
[Paper Code : AM1C05EC0N]
Objectives:
At the end of this course students will be able to :
Understand the concepts products of Financial Institutions, Banks and their
characteristics in details
Evaluate and determine the Price, Value of Financial Assets
Understand the nature and working of Financial institutions and markets
Apply financial tools in investment and financial decision making
Develop skills of policy design and development of financial firm markets.
Course Outline:
UNIT I : Nature and Role of Financial System
[12 Hours]
Money and Finance -- Money and near-money -- Financial intermediation and
financial intermediaries -- The structure of the financial system -- Functions of the
financial sector --- Indicators of financial development -- Equilibrium in Financial
Markets -- Financial system and Economic Development
UNIT II : Asset Prices and Valuation
[10 Hours]
Prices, risk and yield in financial Markets -- Determinants of Assets prices and
interest rates -- Theories of interest rate determination --. Criteria to evaluate
assets: risk and financial assets, types of risk, return on assets, Risk -- Return trade
off --- Valuation of Securities. Term structure of Interest rates --- Risk Return and
asset pricing --- Capital Asset Pricing Model (CAPM) and portfolio model – Arbitrage
Pricing Model (APM).
UNIT III : Banking and Financial Institution
[10 Hours]
Type of banking and non-bank financial intermediaries -- Profitability and efficiency
of banks; Development banks -- role and functions; Investment banking and
merchant banking; Financial sector reforms in India and Financial Policy.
Definition and types of non-bank financial institutions; Their growth and impact on
India's economic development, Measures taken to control their operations –
Financial innovations – Asset securitization – asset and Liability Management for
financial intermediaries.
UNIT IV : Financial Markets
[13 Hours]
Role and structure of money market and capital market -- Call money market,
Treasury bill market, Commercial bill market including commercial paper and
certificate of deposit, Discount market -- Government securities market -- Markets
for derivatives; futures and options, and other derivatives; types, uses and pricing of
derivatives -- Primary and secondary market for securities; Mutual funds;
Regulation-SEBI; Its impact on the working of capital market in India; IRDA and its
role in Insurance markets -- Cost of capital -- capital structure -- dividend policy -Mergers and acquisitions.
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Modes of Transaction
Generally Class lectures along with discussion method will be used
Practicals on financial valuation will be good for Learning.
Students will be given assignments on important aspect of topics.
Wherever possible, students will be taught financial Software’s.
References (All Latest Editions wherever applicable)
1. Chandra Prasanna, Financial Management: Theory and Practice, Tata McGraw
Hill.
2. Kohn Meir (Third Reprint): Financial Institutions and Markets, Tata McGraw Hill.
3. Pathak Bharati V. (2nd Edition): The Indian Financial System, Pearson.
4. Reilly and Brown (6th Edition): Investment Analysis and Portfolio Management,
South Western.
14
M.A. ECONOMICS : SEMESTER I
Interdisciplinary Elective 01
STRUCTURE OF INDIAN ECONOMY
[Paper Code : AM1I01EC0N]
Objectives:
At the end of the course the students will be able to:
understand many aspects of the Indian economy particularly economic trends and sector
composition, phenomena/ issues involved in development of Indian economy.
Understand meaning of different terms and concepts used in various reports relating to
Indian economy and able to analyze the issues/problems and in a position to suggest some
solutions for the same.
Participate in debate on developments in Indian economy.
Course Outline:
UNIT I : Introduction
[12 Hours]
Indian economy on the eve of Independence, India as mixed economy and its features,
India in global economy, National income-various concepts, trends in national income,
growth, structure, and constraints in growth, growth and economic development. Poverty
and poverty alleviating policy measures.
UNIT II : Agriculture
[11 Hours]
Role of agriculture in Indian economy, cropping pattern, irrigation, green revolution –
meaning, achievements/ failures, national agricultural policy 2000, rural credit- trends and
constraints.
UNIT III : Industry and Infrastructure
[11 Hours]
Industry at the time of independence and role of industrialization, industrial growth pattern
Large, medium and small scale industry, New Industrial policy, SMEs Privatization,
Industrial finance – current trends and issues, Infrastructures in Indian economy-energy,
transport and communication.
UNIT IV : Other Current Issues
[11 Hours]
India’s population- size, growth rate, composition by sex, and age, density and urbanization
trends, Occupational structure and work force, Quality of population- Human Development
in India-(HDI,GDI, HPI)-Social sectors –education and health related issues.
Mode of Transaction:
Major part of course will be taught by lecture method, class discussion and experience
sharing.
Students will be given course work in the form of assignments and cases.
References [All Latest Editions wherever applicable]
1.
2.
3.
4.
Datt Ruddar and K P M Sundharam, Indian Economy, S. Chand. latest edition
Dhingra I. C., Indian Economy, S. Chand latest edition
Agarwal A N., Indian Economy
S. P. Verma., Infrastructure in India’s Development-power, Transport and Communication,
Kanishka Publishers & distributors, New Delhi
5. UNDP, Human Development Report, latest issue, Palgrave MacMillan
15
M.A. ECONOMICS : SEMESTER II
Core 06
MICROECONOMIC ANALYSIS – II
[Paper Code : AM2C06EC0N]
Objectives:
At the end of this course students will be able to:
Comprehend in adequate details and depth the micro economic models.
Develop insight about the decision making process of micro economic units.
Explain Economic theory in a mathematical frame work.
Apply microeconomic tools to amylase and explain real world economic
phenomena.
Develop skill of policy formulation for economic decision at a micro level.
Course Outline:
UNIT I : Theory of Distribution
[10 Hours]
Neo-classical approach - Marginal productivity theory; Product exhaustion theorem;
Elasticity of technical substitution; technical progress and factor share; Theory of
distribution in imperfect product and factor markets; Determination of rent, wages
and profit.
UNIT II : Welfare Economics
[12 Hours]
Pigovian welfare economics; Pareto optimal conditions; Value judgments; Social
welfare functions; Compensation principle; Inability to obtain optimum welfare Imperfections, market failure, decreasing costs, uncertainty and non existence and
incomplete markets; Theory of second best, Welfare implications of inter-temporal
consumption.
UNIT III : Economics of Uncertainty
[13 Hours]
Consumer’s and Producer’s choice under uncertainty - describing risk, reducing risk,
Demand for risky assets -Market with asymmetric information- quality uncertainty
and the market for "Lemons", Market signaling, Moral hazard, Principal agent
problem, Asymmetric information in labour market; Efficiency wage theory,
Investment analysis.
UNIT IV : General Equilibrium Analysis
[10 Hours]
Partial and general equilibrium, Walrasian excess demand and input output
approaches to general equilibrium, existence, stability and uniqueness of
equilibrium and general equilibrium, coalitions and monopolies; Production without
consumption - one sector model, homogeneous functions, income distribution.
16
Modes of Transaction:
Lecture method is generally used but along with it as and when required, discussion
method would be used.
Activity assignments (that is practical numerical problems) may be given to the
students and assignment method would help them to learn by doing.
Students may be given training by use of computer.
Power Point presentation may be used for delivering lectures.
References (All Latest Editions wherever applicable)
1.
Chauhan S.P.S. (2009), Microeconomics – An Advanced Treatise (1st Edition), PHI
Learning Private Limited, New Delhi.
2. Dominick Salvatore (2003), Microeconomics – Theory and Applications
(4th
Edition), Oxford University Press, New Delhi.
3. Jeffrey M. Perloff (2001), Microeconomics (2nd Edition), Pearson Education Asia,
New Delhi.
4. Koutsoyiannis A. (1979), Modern Microeconomics, (2nd Edition) Macmillan
Press, London.
5. Kreps David M. (1990), A course in Microeconomics Theory, Princeton University
Press, Princeton.
6. Layard P.R.G. and A.W. Walters (1976), Microeconomics Theory, Mcgraw Hill,
New York.
7. Robert S. Pindyck & Daniel L. Rubinfeld (2002), Microeconomics (5th Edition),
Pearson Education Asia, New Delhi.
8. Sen A. (1999), Microeconomics Theory and Applications, Oxford University Press,
New Delhi.
9. Stigler G. (1996), Theory of Price, (4th Edition), Prentice Hall of India, New Delhi.
10. Varian H. (2000), Microeconomic Analysis, W.W. Norton, New York.
17
M.A. ECONOMICS : SEMESTER II
Core 07
MACROECONOMIC ANALYSIS – II
[Paper Code : AM2C07EC0N]
Objectives:
At the end of this course, the student,
To enable the students think independently about real world situation and help
them master the basic analytical tools.
To provide an integrated view of macroeconomics and to make close contact with
current macroeconomics events.
Course Outline:
UNIT I : Unemployment & Inflation: Causes & Consequences
[11 Hours]
Unemployment – definition and concepts – causes & consequences of
unemployment, Inflation – definition and concepts – causes & consequences of
inflation, Aggregate supply function – Philips curve – Philips curve vis-à-vis
Aggregate supply function – price expectation models – Macro Economic policies.
UNIT II : New Classical and New Keynesian Models
[11 Hours]
New classical position – a review of Keynesian position – The Rational Expectation
concept and its implications – New classical policy conclusions. New Keynesian
position – Sticky price (Menu Cost) Models – Efficiency wage Models – Insider –
Outsider models and Hysteresis. A summary of Macro Economic Models.
UNIT III : Open Economy Macro Economics and Business Cycles [11 Hours]
Important concepts of open Economy – Macro Economic GAPS – Determinants of
Trade Balance and Balance of Payments – Foreign Exchange rate system and
Determinants of foreign Exchange rate – Monetary and Fiscal Policy in the open
economy and the Mundell - Fleming model - Business cycles – definition and
characteristics – Theories of Schumpeter, Kaldor, Samuelson and Keynes - control
of Business cycles and stabilization policies.
UNIT IV : Economic Growth
[12 Hours]
Determinants of Income and growth – Harrod – Domar Model – Solow Model –
Endogenous Growth theory – Economic Reforms, institution, governance and
Economic growth in India- Growth Accounting china and India.
Modes of Transaction:
The major part of the course work will be taught by the lecture method but
wherever necessary, discussion on different practical issues will also be employed.
Some portion of the course work would be given to students in the form of
assignments.
Audio-visual aids in terms of Power Point presentations of assignments by students
would be encouraged. Teachers will also be encouraged to use such audio-visual
aids in explaining certain concepts.
18
References (All Latest Editions wherever applicable)
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
Ackley, G (1978), Macroeconomics : Theory and Policy, Macmillan, New York.
Branson, W.A. (1989), Macroeconomic Theory and Policy, (3rd Edition), Harper
and Row, New York.
Burda and Wyplosz (2009), Macroeconomics,
Carlin Wendy & Soskice David (2007), Macroeconomics – Imperfection,
Institutions and Policies – Oxford University Press.
D’souza Errol (2008), Macroeconomics : Dorling Kindersley(India) Pvt. Ltd.
Dornbusch R. Fischer S. & Startz R. (2004), Macroeconomics, Tata McGraw –Hill
ed.
G. S. Gupta (2004), Macroeconomics – Theory and applications, McGraw-Hill.
Gordon, R.J. (1998), Macroeconomics, Addison Wesley.
Harris, L. (1985), Monetary Theory, McGraw Hill, New York.
Jha, R. (1991), Contempory Macroeconomic Theory and Policy, Wiley Eastern
Ltd., New Dehli.
Levacic, R. and Rebmann. A (2003), Macroeconomics – An introduction to
Keynesian – Neoclassical controversies, - MacMillan Press Ltd.
M. C. Vaish, Macroeconomics Mankiw, N.G. (2000), Macroeconomics, MacMillan
Poindexter, J.C. (1981), Macroeconomics, The Dryden Press.
Richard T. Froyen (2009), Macro Economics – Theories and Policies, Prentice
Hall.
Scarfe, B.L. (1977), Cycles, Growth and Inflation, McGraw Hill, New York.
Shapiro, E. (1996), Macroeconomic Analysis, Galgotia Publications, New Delhi.
Surrey, M.J.C. (Ed.) (1976), Macroeconomic Themes, Oxford University Press,
Oxford.
19
M.A. ECONOMICS : SEMESTER II
Core 08
STATISTICAL METHODS FOR ECONOMIC ANALYSIS
[Paper Code : AM2C08EC0N]
Objectives:
At the end of the course
The student will grasp the basic methods of statistical inference economic analysis.
The approach to hypothesis testing and estimation will be understood.
Course Outline:
UNIT I : Elements of Probability Theory
[08 Hours]
Probability: Laws of addition and multiplication: Conditional probability and
concept of interdependence; Elementary concept of random variable; Mathematical
Expectations, Properties (without derivations) of Binomial, Poisson and Normal
distributions, Bayse Theorem.
UNIT II : Sampling and Sampling Distributions
[12 Hours]
Basic concept of sampling – random and non-random sampling design processRandom sampling methods-sampling and non-sampling errors-sampling
distribution; Central Limit Theorem-sampling distribution of sample proportion.
UNIT III : Estimation and Hypothesis Testing
[15 Hours]
Concept of an estimator and its sampling distribution; Desirable properties of an
estimator; Formulation of Statistical Hypothesis – Null and alternative; Goodness of
fit; confidence intervals and level of significance; Hypothesis testing – based on z, t,
Chi-Square and F tests; Type 1 and Type 2 errors.
UNIT IV : Correlation and Regression Analysis
[10 Hours]
Meaning assumptions and limitations of simple correlation and regression analysis;
Concept of the least squares and the line of regression; Standard error of estimateGoodness of fit-Prediction of individual values, Multivariate Regression Analysis –
Estimation & Testing.
Modes of Transaction:
Instruction will be based on the lecture method with interactive sessions.
Assignments and tutorials on applications and practice problems will be extensively
used.
Wherever possible, practical problems will be implemented on computers.
References (All Latest Editions wherever applicable)
1. Anderson David R., Dennis J. Sweeney, Thomas A. Williams, (2004), Statistics for
Business and Economics South-Western College Pub; 9th edition.
2. Gujarati Damodar, Essentials of Econometrics McGraw-Hill International edition.
3. Levine D & N.Bajpai (2010), Quantitative Analysis, Pearson.
20
M.A. ECONOMICS : SEMESTER II
Core 09
INDIAN ECONOMIC POLICY
[Paper Code : AM2C09EC0N]
Objectives:
This course will enable the students with an understanding of
The Planning structure and it’s implementation process
Policy reforms in financial sector, trade, environment and infrastructure
Policy and performance issues in agriculture and industry sectors.
Course Outline:
UNIT I : Economic Planning and Policy
[10 Hours]
Objectives and Strategy of Planning; Failure and achievements of Planning; Planning
and Policy interface; Decentralized Planning; Fiscal federalism in India;73rd and 74th
amendment to the constitution; role of civil society as third sector in planning,
Policies for Inclusive Growth.
UNIT II : Economic Reforms and Policy Impacts
[14 Hours]
Financial sector reforms; Economic reforms, Trade Policy reforms and issues,
Exchange rate policy; Foreign capital and MNCs in India; WTO and its impact on the
economy; Monetary and Fiscal Policy reforms.
UNIT III : Agriculture and Industry
[14 Hours]
India’s Agricultural Policy since Independence – agricultural pricing and price
behavior; Terms of trade between agriculture and industry; Agricultural finance;
Issues in food security and public distribution system – policies for sustainable
agriculture. Growth and pattern of industrialization; Industrial policy; Public sector
enterprises and their performance; Privatization and disinvestment debate. Small
and Medium Enterprises.
UNIT IV : Planning and Social Infrastructure
[07 Hours]
Policies reforms related to Energy, Telecom, Transport, etc. Social Infrastructure
policies and labour market reforms, Environmental policy, and knowledge economy.
Mode of Transaction: Lecture method and class discussion.
References (All Latest Editions wherever applicable)
1.
2.
Ahluwalia, I. J. and I.M.D. Little (Eds.) (1999), India’s Economic Reforms and
Development (Essay in honor of Manmohan Singh), Oxford University Press,
New Delhi.
Alagh Y.K. [ed.] State of Indian Farmer: A Millennium Study, Various volumes.
Academic Foundation
21
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
Bardhan, P.K. (9th Edition) (1999), The Political Economy of Development in
India, Oxford University Press, New Delhi.
Brahmananda, P R and V R Panchmukhi (Eds) (2001), Development Experience
in the Indian Economy – Inter State Perspective, Bookwell, Delhi.
Carl Dahlman and Anuja Utz: (2005), India and the Knowledge Economy:
Leveraging, Strengths and opportunities, World Bank Publication.
Chakravarty, S. (1987), Development Planning: The Indian Experience, Oxford
University Press, New Delhi.
Dantwala, M.L. (1996), Dilemmas of Growth: The Indian Experience, Sage
Publication, New Delhi.
Datta, R (Ed.) (2001), Second Generation Economic Reform in India, Deep and
Deep Publication, New Delhi.
GOI Economic Survey latest issue
Government of India, Economic Survey (Annual), Ministry of Finance, New Delhi.
India Infrastructure Report Oxford University Press latest issue.
Ishwar Dhingra: Indian Economy. Latest edition, Sultan Chanel Publication.
Jain, A K (1986), Economic Planning in India, Ashish Publishing House, New
Delhi.
Jalan, B (1996), India’s Economic Policy - Preparing for Twenty First Century,
Penguin Books, New Delhi.
Jalan, B. (1992), The Indian Economy- Problems and Prospects, Penguin Books,
New Delhi.
Joshi, V. and I.M.D. Little (1999), India: Macroeconomic and Political Economy,
1964-1991, Oxford University Press, New Delhi.
Kapila Uma:[ed.] Indian Economy since Independence : Academic Foundation
[latest edition]
Parikh, K.S. (1999), India Development Report – 1999-2000, Oxford University
Press, New Delhi.
Rao V.M. (1996) Agricultural Development with a Human face, EPW 31(26): June
29.
Reserve Bank Of India, Report on Currency and Finance, (Annual).
Sandesara, J.C. (1992), Industrial Policy and Planning 1947-1991: Tendencies
Interrelations and Issues, Sage Publication, New Delhi.
Sen, R.K.and B. Chatterjee (2001), Indian Economy: Agenda for 21st Century
(Essays in honour of Prof P.R. Brahmanda), Deep and Deep Publication ,New
Delhi.
Tapas Majmudar (ed)( 1993) Nature, Man and The Indian Economy Ed., Oxford.
Vidyanathan A. (1996) Agricultural Development: Imperatives of Institutional
Reforms, EPW 31(35/37) September 1996.
22
M.A. ECONOMICS : SEMESTER II
Core 10(a)
ECONOMETRICS
[Paper Code : AM2C10EC0N]
Objectives:
At the end of this course students will be able to:
Comprehend in adequate detail various econometric techniques.
Develop understanding about the economic models and their uses.
Understand the relation between economic theory and econometric models.
Develop skill to formulate an econometric model and test for the results.
Course Outline:
UNIT I : Econometrics – An Introduction
[12 Hours]
Nature and scope of econometrics; Simple and general linear regression model –
Assumptions, Estimation using OLS method; properties of estimators; GaussMarkov theorem; Analysis of variance approach and its application in regression
analysis; Estimation of non-linear equations. Multivariate regression analysis –
matrix approach
UNIT II : Violation of Classical Model Assumptions
[11 Hours]
Single equation model: Problems of Heteroscedasticity; Multicollinearity – Method
of Principal Component Analysis; Auto-correlation; Problems of specification error;
Errors of measurement – Applications.
Multiequation Model: Simultaneous equation bias and inconstancy of OLS
estimators – Alternative methods.
UNIT III : Qualitative Independent and Dependent Variables
[11 Hours]
Types of Qualitative variables; Dummy variable technique – Testing structural
stability of regression models comparing two regressions, interaction effects,
seasonal analysis, piecewise linear regression, Regression with dummy dependent
variables; The LPM, Logit, Probit, and Tobit models – Applications.
UNIT IV : Dynamic Econometric Models and Time Series
[11 Hours]
Autoregressive and distributed lag models – Koyak model, Partial adjustment
model, adaptive expectations; Instrumental variables; Problem of auto-correlation –
Application; Almon approach to distributed-lag models; Error Correction
Mechanism, Causality tests. Time series analysis: Stationarity, unit roots, cointegration-spurious regression, Dickey-Fuller test, Random walk model,
Forecasting in economics.
23
Modes of Transaction:
Lecture method is generally used but along with it as and when required, discussion
method would be used.
Activity assignments with numerical problems be given to the students and
assignment method would help them to learn by doing.
Students may be introduced to various Statistical and Econometric Software.
Power Point presentation may be used for delivering lectures.
References (All Latest Editions wherever applicable)
1.
2.
Baltagi, B.H. (1998), Econometrics, Springer, New York.
Dongherty, C. (1992), Introduction to Econometrics, Oxford University Press,
New York.
3. Goldberger, A.S. (1998), Indtroductory Econometrics, Harvard University Press,
Cambridge, Mass.
4. Gujarati, D.N., Basic Econometrics, (2nd Edition), McGraw Hill, New Delhi.
5. Kennedy, P. (1998), A guide to Econometrics (4th Edition), MIT Press, New York.
6. Kmenta, J. (1997), Elements of Econometrics (Reprint Edition), University of
Michigan Press, New York.
7. Koutsoyiannis, A. (1977), Theory of Econometrics (2nd ed.), The Macmillan Press
Ltd. London.
8. Krishna, K.L. (Ed.) (1997), Econometric Applications in India, Oxford University
Press, New Delhi.
9. Maddala, G.S. (Ed.) (1993), Econometric Methods and Application (2 Vols),
Aldershot U.K.
10. Pindyck, R.S.and Rubinfeld, D. L. (1998), Econometric Models and Economic
Forecast, McGraw Hill, New York.
11. Ramu Ramanathan (2002), Introduction to Econometrics with Applications
(5thed), Cengage Learning India Pvt Ltd, New Delhi.
12. Theil, H. (1981), Introduction to Econometrics, Prentice Hall of India, Delhi.
24
M.A. ECONOMICS : SEMESTER II
Core 10(b)
ECONOMICS OF INSURANCE
[Paper Code : AM2C10EC0N]
Objectives:
At the end of course student will be able to:
understand the meaning of various risks, economic security and insurance. Student will be
able to analyze risk and identify relevant different insurance products as a solution to risk.
familiarize the students with various type of insurance –life and non-life- and insurance
policies.
understand IRDA’s regulation and developmental activity and its rationale.
analyze and evaluate various aspect of working of insurance industry as a whole such as
reforms in insurance industry, life and non-life segments, underwriting/rating process,
distribution channel, various insurance products/pension products and regulatory
environment.
Course Outline:
UNIT I : Concepts of Risk and Insurance Perspective
[12 Hours]
Concept of Insurance and economic security, Fundamental of uncertainty and risk- pure
risk and speculative risk, exposure to losses, role of insurance. Definition of riskeconomic-legal perspective- insurable event, risk pooling –mathematical basis of
insurance-law of large numbers and risk transfer- life and non-life insurance
classification of life, health, general insurance policies. Expected utility and decision
making under uncertainty, expected utility and demand for insurance, concepts of risk
management and Elements of risk management- risk assessment, risk control –risk
financing.
UNIT II : Insurance Contract and Various Terms
[10 Hours]
Feature of insurance contract in life and non-life insurance, indemnity, insurable
interest. contribution and subrogation, Representation, utmost good faith, material
facts, Adverse selection and moral hazard, physical hazard, moral hazard, standard risk.
UNIT III : Life Insurance and Health Insurance
[10 Hours]
Fundamentals of life and health insurance, mortality tables and plans of life insurance,
underwriting and rate making of insurance risk, basics of premium calculation,
classification of policies- individual and group insurance for life and health risk. Health
Insurance Valuation and distribution of surplus.
UNIT IV : General and Miscellaneous Insurance
[13 Hours]
Definition of general insurance, types of general insurance - fire insurance, motor
insurance, marine insurance and other miscellaneous insurance. Selection of risk, rate
making and calculation of premium, various distribution channel of insurance,
technology development and general insurance. Pension plans-basics principles of
retirement planning and pension plans, pension plans in India. Regulation of insurance
in India- IRDA act covering regulatory provisions for brokers/agents/ insurance firms.
other Acts applicable to insurance contract.
25
Mode of Transaction:
The major part of the course will be delivered through class lecture method and
lab work.
However some topics will be covered by student assignments/ practical exercises
on computers.
Students will also have exposures to workshops / experts’ lectures on select
issues of insurance.
Students may also undertake an industry visit and collect primary data on
working of insurance activity.
References (All Latest Editions wherever applicable)
1. Dorfman Mark S. (2009) : Introduction to Risk Management and Insurance, 9th
edition, Prentice Hall of India, New Delhi.
2. Institute of Certified Risk and Insurance Manager (ICRIM) (2002) : Reinsurance
Text Book, Hyderabad.
3. Institute of Certified Risk and Insurance Manager (ICRIM) (2002) : Risk and
Insurance Text Book, Hyderabad.
4. Institute of Certified Risk and Insurance Manager (ICRIM) (2002): Actuarial
Principles and Practice Text Book, Hyderabad.
5. Narayanan H (2008) : Indian Insurance - A Profile, Jaico Books Mumbai.
6. P K Gupta (2005) : Fundamentals of Insurance, Himalaya Publishing House.
7. Rejda George E : Principles of Risk Management and Insurance, Pearson
Education.
8. Vaughan E. J and Therese Vaughan, Essentials of Risk Management and Insurance,
John Wiley and Sons.
9. Vaughan E. J and Therese Vaughan, Fundamental of Risk Management and
Insurance, John Wiley and Sons.
Web references:
www.irda.org
www.nai.org
www.insuranceinstituteofindia.com
www.lifeinsurancecouncil.org
www.gicouncil.in
www.swissre.com
www.munichre.com
26
M.A. ECONOMICS : SEMESTER II
Interdisciplinary Elective 02
URBAN ECONOMICS
[Paper Code : AM2I02EC0N]
Objectives:
At the end of course the student will be able to :
Get understanding of many economic problems / phenomena/ issues involved in
urban areas and cities.
Understand meaning of different terms and concepts of urban economics and able
to analyze the urban problems and in apposition to suggest some solutions for the
same.
Participate in design and monitoring the developments in the urbanization and
policy component of urban transport and congestion, municipal finances, housing
and slums pollutions and quality of urban life etc.
Course Outline:
UNIT I : Introduction and Urbanization in India
[10 Hours]
Nature of Urban Areas, and why Urban Areas - Urban Policy Analysis - Definition of
Urban Area, Growth of Urbanization and its Sources, Long term Trends in
Urbanization - Classification of Cities by Size, Migration of Capital and Labour in
Urban Areas, Policy Issues.
UNIT II : Urban Land Use and Housing
[10 Hours]
Urban Population Density, Spatial Pattern in Urban Land Use, Land Use Controls Housing Policy in Urban Areas - Demand and Supply Gap and Slums - Public Policy
to improve them - Slums and Urban Poverty, Urban Pollution - Clean Air and
Property Values, Urban Infrastructure and Quality of Life in Urban Localities.
UNIT III : Urban Finances
[10 Hours]
Revenues and Finances of Municipalities, Urban Infrastructures - Public-Private
Partnership Model (PPP) in Urban Transport, Sanitation, Health, Education, Road
and Bridges etc. Jawaharlal Nehru National Urban Renewal Mission (JNNURM) and
its Objectives and Working, Urban Reforms.
UNIT IV : Urban Transportation
[15 Hours]
Multiple Modes of Urban Transport - their Competitive and Complementary Role,
National Urban Transport Policy 2006, Public (Subsidized Mass) Transport vs
Private Transport with externalities such as lock in Capital in Transport Equipment,
Parking Provisions, Pollution, Exposure to Road Accident, Congestion. Cost and
Pricing of Transport Services, Metro Railways and Rapid Bus Transport in
Metropolitan Cities, Urban Transport Sector Reform.
27
Modes of Transaction:
Major part of course will be taught by lecture method, class discussion and
experience sharing.
Students will be given course work in the form of assignments and cases.
References (All Latest Editions wherever applicable)
1. Robert L Bish and Hugh O. Nourse (Latest Edition) - Urban Economics and Policy
Analysis, MacGraw Hill.
2. Govt of India - Min. of Urban Development and Poverty Alleviation, ANNUAL
REPORT 2010-11.
3. O’Sullivan Arthur (2003) - Urban Economics, MacGraw Hill.
4. Prasad B K Sarup (2003) - Urban Development, New Delhi.
5. Jain A. K. - Urban Housing & Slums, Read Worthy, New Delhi.
6. Harvey Jack Ernie J (2005) - Urban Land Economics, Palgrave.
7. Chaudhuri Kameshwar (2000) - Globalisation, Governance Reforms and
Development in India, Sage.
28
M.A. ECONOMICS : SEMESTER III
Core 11
DEVELOPMENT ECONOMICS
[Paper Code : AM3C11EC0N]
Objectives:
At the end of this course students will be able to:
Understand the interdependence between social and economic factors for
development.
Comprehend in adequate detail various processes of development.
Develop understanding about the economic development theories and their
applications.
Understand the relation between economic theory and economic development.
Course Outline:
UNIT I : Social and Institutional Aspects of Development
[12 hours]
Economic Growth and Development; Development and underdevelopment –
perpetuation of underdevelopment; Economic and non economic factors affecting
economic growth; Measuring development and development gap – per capita
income, Human development index and other indices of development and quality of
life. Human resource development; Population problem and growth patterns and
changes – Demographic dividend; income inequality - Poverty- undernourishment;
poverty and environment linkages. Role of capital, labor and technology in economic
development.
UNIT II : Historical Aspects of Development
[11 hours]
Historical approach to economic development – Kuznets - Differing initial
conditions. Linear stage theories-Rostow; Neoclassical dependence theories;
Dualistic theory – Theory of unlimited supply of labour – Lewis- Fei Rannis; Urban –
Rural migration; Urban informal sector. Economic development and institutions –
markets and market failure, state and state failure.
UNIT III : Economic Development Theories
[11 hours]
Classical theory of development – contributions of Adam Smith, Ricardo and
Malthus; Karl Marx and development of capitalist economy; Schumpeter and
capitalist development; Structural analysis of development; Imperfect market
paradigm.
UNIT IV : Approaches to Development
[11 hours]
Development Strategy; Partial theories of growth and development – Vicious circle
of poverty, Big push, Balanced growth, Unbalanced growth, Critical minimum effort
thesis, Low income equilibrium trap; Typology of Dualism – Institutional, Technical,
Geographical, Ecological and Social; Savings and capital formation
29
Modes of Transaction:
Lecture method is generally used but along with it as and when required, discussion
method would be used.
Activity assignments be given to the students and assignment method would help
them to learn by doing.
Power Point presentation may be used for delivering lectures.
References [All Latest Editions wherever applicable]
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
Adelman I (1961), Theories of Economic Growth and Development, Stanford
University Press, Stanford.
Barrow R. & Sala-Xavier Martin (2007): Economic Growth, Prentice Hall of India.
Behrman, S and T.N. Srinivasan (1995), Handbook of Development Economic Vol.
3, Elsevier, Amsterdam.
Brown M. (1966), On the Theory and Measurement of Technical Changes,
Cambridge University.
Chenery H and T N Srinivasan (Eds) (1989), Handbook of Development
Economics, Vols. 1 & 2, Elsevier, Amsterdam.
Chenery H B et. (Eds) 91974), Redistribution of Growth, Oxford University Press,
Oxford.
Dasgupta P 1993), An Enquiry in to Well-being and Destitution, Clarendon Press,
Oxford.
Ghatak S (1986), An Introduction to Development Economics, Allen and Unwin,
London.
Gillis M., D, H. Perkins, M. Romer and D.R. Sndograss (1992), Economics of
Development (3rd Edition), W. W. Norton, New York.
Gimmell N. (1987), Survey in Economic Development, Blackwell, Oxford.
Higgins B. (1959), Economic Development, W. W. Norton, New York.
Hogendorn J (1996), Economic Development, Addison, Wesley, New York.
Kahkonon S. and M. Olson (2002), A New Institutional Approach to Economic
Development, Vistaar.
Kindelberger C.P. (1977), Economic Development (3rd Edition), McGraw Hill, New
York.
Meier G.M. (1995), Leading Issues in Economic Development (6th Edition), Oxford
University Press, Oxford.
Myint H (1971), Economic Theory and Underdeveloped Countries, Oxford
University Press, New York.
Myint, Hla (1965), The Economics of Underdeveloped Countries, Preager, New
York.
Thirwal A.P. (1999) (6th Edition), Growth and Development, McMillan, U.K.
Todaro M.P. (2003), (8th Edition), Economic Development, Longman, London.
Weil David N.(2009), (2nd Edition), Economic Growth, Perarson Education.
Yujiro Hayami and Yoshihisa Godo (2005), (3rd edition) Development Economics
from Poverty to Wealth of Nations, Oxford University Press.
30
M.A. ECONOMICS : SEMESTER III
Core 12
THEORETICAL FOUNDATIONS OF PUBLIC ECONOMICS
[Paper Code : AM3C12EC0N]
Objectives:
To acquaint and equip the students with the theoretical Foundation of the theory of
Public Economics.
Course Outline:
UNIT I : Rationale for Public Policy & Public Choice
[11 Hours]
Market failure & Role of Government; Changing perspective: government as an
agent for economic planning and development; Major function of Budgetary policy &
Its objectives; private goods, public goods, and mixed goods, merit goods, demerit
goods. Theory of club goods.
Problems of preference revelation and aggregation of preferences; Voting systems;
Arrow impossibility theorem; An economic theory of democracy.
UNIT II : Theory of Public Goods & Public Expenditure
[12 Hours]
Allocation of resources – provision of public goods; Voluntary exchange models;
Impossibility of decentralized provision of public goods (contributions of Samuelson
and Musgrave); Demand-revealing schemes for public goods.
Wagner’s law of increasing state activities; Wiseman-Peacock hypothesis Colin
Clark’s Theory other recent theories. Reforms in expenditure budgeting;
Programme budgeting, zero base budgeting, Gender based budgeting.
UNIT III : Taxation
[11 Hours]
Theory of incidence; Alternative concepts of incidence – Allocative and equity
aspects of individual taxes; Benefit and ability to pay approaches; Theory of optimal
taxation; Excess burden of taxes; trade -off between equity and efficiency; Theory of
measurement of dead weight losses; The problem of double taxation.
UNIT IV : Public Debt
[11 Hours]
Classical view of public debt; Compensatory aspect of debt policy; Burden of public
debt; Sources of public debt; Debt through created money; Automatic and
Discretionary Fiscal stabilizers. Fiscal policy and its functions; various concepts of
budgetary deficits and their implications.
Mode of Instruction: Lecture Method
31
References [All Latest Editions wherever applicable]
1. Atkinson, A.B. and J.E. Siglitz (1980), Lectures on Public Economics, Tata McGraw
Hill, New York.
2. Auerbach, A.J. and M. Feldstern (Eds.) (1985), Handbook of Public Economics,
Vol.I, North Holland, Amsterdam.
3. Buchanan, J.M. (1970), The Public Finances, Richard D. Irwin, Homewood.
4. Goode, R. (1986), Government Finance in Developing Countries, Tata McGraw Hill,
New Delhi.
5. Houghton, J.M. (1970), The Public Finance : Selected Readings, Penguin,
Harmondsworth.
6. Jha, R. (1998), Modern Public Economics, Routledge, London.
7. Menutt, P. (1996), The Economics of Public Choice, Edward Elgar, U.K.
8. Musgrave, R.A. (1959), The Theory of Public Finance, McGraw Hill, Kogakhusa,
Tokyo.
9. Musgrave, R.A. and P.B. Musgrave (1976), Public Finance in Theory and Practice,
McGraw Hill, Kogakusha, Tokyo.
Journal ArticlesAs per the instructions and suggestion of the teacher concerned.
32
M.A. ECONOMICS : SEMESTER III
Core 13
INTERNATIONAL TRADE
[Paper Code : AM3C13EC0N]
Objectives:
The objective of this paper is to introduce the students with various trade theories
trade policies and their empirical relevance. The student will be able to analyze trade
issues and evaluate policy option.
Course Outline:
UNIT I : International Trade Theories and their Empirical Verification
[12 Hours]
Classical Theory of Trade and its empirical verification, opportunity cost approach Heckscher-Ohlin model, Empirical Testing and Generalization to n factors and Goods
– Kravis and Linder Theory of Trade, Product – Cycle Hypotheses and other modern
theories of trade.
UNIT II : Trade Theories, Technical Progress and Supply of Factors of Production
[11 Hours]
Economies of scale and Trade, Imperfect Competition and international trade, intraindustry trade, specific factor model. Rybczynski theorem, Technical progress and
terms of trade, Factor price equalization theorem.
UNIT III : Trade Policies
[11 Hours]
Instruments of Trade Policy Theory of tariff, Arguments for Protection - Tariff and
rewards to factors of production, Stolper - Samuelson theorem- Metzler paradox,
Political economy of trade policy, strategic trade policies.
UNIT IV : Regional Block and World Trading System
[11 Hours]
The theory of customs union – European union, Regional Trading arrangements
NAFTA, ASEAN, SAARC, WTO, UNCTAD and World Trading system, International
Factor movements, Multinational firms.
Mode of Transaction:
This course will be delivered through lectures. However, there will be class discussions
on recent developments. There will be practical exercises on numerical problems and
assignments wherever possible.
33
References [All Latest Editions wherever applicable]
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
Bhagwati, J. (Ed.) (1981), International Trade, Selected Readings, Cambridge,
University Press, Massachusetts.
Carbough, R.J., International Economics, International Thempson Publishing,
New York.
Chacholiades, M. (1990), International Trade : Theory and Policy, McGraw Hill,
Kogakusha, Japan.
Dana, M.S. (2000), International Economics : Study, Guide and Work Book, (5th
Edition), Routledge Publishers, London.
Dunn, R.M. and J.H. Mutti (2000), International Economics, Routledge, London.
Government of India: Economic Survey Annual Issue.
Kenen, P.B. (1994), The International Economy, Cambridge University Press,
London.
King, P.G. (1995), International Economics and International Economic Policy : A
Reader, McGraw Hill International, Singapore.
Krugman, P.R. and M. Obstfeld (1994), International Economics : Theory and
Policy, Glenview, Foresman.
RBI Annual Report, Latest Issue.
RBI: Report on Currency and Finance, Annual Issue.
Salvatore, D., International Economics, Prentice Hall, Upper Saddle River, N.J.
New York.
Soderston, Bo and Reed, International Economics, The Macmillan Press Ltd.
London.
34
M.A. ECONOMICS : SEMESTER III
Core 14
WELFARE ECONOMICS
[Paper Code : AM3C14EC0N]
Objectives:
At the end of this course students will be able to:
To enable the student to understand the important distinction between positive
Economics & Normative Economics
To analyze desirability of outcomes of positive economics and policy outcomes.
Course Outline:
UNIT I : Fundamentals of Classical Welfare Economics
[11 Hours]
The Issue of Welfare and Justice in the Exchange Economy. Welfare in the
Framework of General Equilibrium. – Hedonism and the Benthamite approach to
Aggregate Welfare, Optimum resource allocation and welfare maximization. – Utility
Function of individuals, Problems in inter-personal Utility comparison, issues in
income distribution. – Marshallian conception of welfare economics, consumer’s
surplus, measurement oof consumer’s surplus and the problems involved in the
measurement. Pigouvian views on private and social cost.
UNIT II : Restructuring Classical Welfare Economics
[11 Hours]
The Principle of compensating variation, Hicksian types of consumer’s surplus,
Slutsky’s approach to measurement of consumer’s surplus. – The Concept and the
conditions of Pareto Optimality, Pareto optimality in the General Equilibrium
system. – Compensation criteria contributions of Barone, Hicks and Kaldor.
Scitovsky criterion. – Applications of Compensation Principle to tax/bounty effects.
UNIT III : New Welfare Economics-I
[11 Hours]
Social Optimum, Community indifference map, Samuelson’s utility possibility curve
– Bergson’s Concept of Welfare and its Measurement. – Social Welfare Function,
Arrow’s Possibility Theorem and its implications. – Problems of non-market
interdependence, externalities in production and consumption, problems of
accounting and pricing.
UNIT IV : New Welfare Economics-II
[12 Hours]
External economics and diseconomies. Problems in Accounting. – Problems of Public
Goods and Negative spillovers. The Problem of Market Failure. – The Second Best
Problem, issues related with the second-best problem. Interdependent utilities. –
Welfare, justice and efficiency, Cascading effects of injustice on efficiency. –
Considerations of welfare in public policies and programmes, Evaluation of public
Policies. Amartya Sen’s contribution & significance of his work.
35
Modes of Transaction:
Majority of course instruction will be through class room lectures.
Part of the Course work will be given in the form of tutorials and assignments.
Some of the topics will be accomplished through class discussion.
References [All Latest Editions wherever applicable]
1.
2.
Baumol, W. J. (ed.) (2001), Welfare Economics, Edward Elgar Publiching Ltd. UK
Broadway, R. W. and N. Bruce (1984), Welfare Economics, Basil Blaskwell,
Oxford.
3. Browning EK & Browning J. M. (1986), Microeconomic Theory & Applications,
Kalyani Publishing.
4. Domick Salvatore (2009), Principles of Micro Economics, Ox Ford University
Press.
5. Frank Robert H. (2006), Micro Economic & Behaviour, McGraw Hill International.
6. Little, I.M.D. (1957), A Critique of Welfare Economics, Oxford Univ. Press, Oxford.
(2nd edition).
7. Maurice S. Charles and Philips Owen R. (1992), Economic Analysis – Theory and
Applications, Richard D. Irwin, Inc.
8. Myint, Hla (1984), Theories of Welfare Economics, Longmans, London.
9. Quirk, J. and R. Saposnik (1968), Introduction to General Equilibrium Theory and
Welfare Economics, McGraw Hill, New York.
10. Solberg Eric J. (1982), Intermediate Microeconomics – Business Publications, Inc.
Additional Reading List:
1.
2.
3.
4.
Blaug, M. (1987), Economic Theory in Retrospect, Cambridge University Press,
London.
Feldman, A M (1980), Welfare Economics and Social Choice Theory, Kluwer
Nijkoff, Boston.
Pearce, D W and C A Nash (1981), The Social Appraisal of Projects: A text in Cost
Benefit Analysis, Halsted Press. John Wiley & Sons, New York.
Varian, H R (1992), Microeconomic Analysis, W W Norton & Co. New York.
36
M.A. ECONOMICS : SEMESTER III
Core 15(a)
ECONOMICS OF GENDER AND DEVELOPMENT
[Paper Code : AM3C15EC0N]
Objective:
To acquaint and equip the students with the Economics of Gender and development
concerns.
Course Outline:
UNIT I : Introduction to Gender Studies
[12 Hours]
Concept of gender and importance of gender studies, gender in mainstream
Economics. Gender bias in the theories of value, distribution and population.
Review of ‘neo-classical’ economics and analysis of Becker’s economics of the family.
Bargaining models. Feminist economics; Approach and a critique of mainstream
economic concepts and methodology.
UNIT II : Demographic Aspects
[11 Hours]
Demography of female population: Age structure, mortality rates, and sex ratio –
Causes of declining sex ratios and fertility rates in LDCs and particularly India –
Theories and measurement of fertility and its control: Women and their access to
nutrition, health, education, and social & community resources - their impact on
female mortality and fertility, economic status – impact on work participation rate.
Impact of technological development and modernization on women’s work
participation.
UNIT III : Women’s Work and Development
[11 Hours]
Concept of ‘Work’: Productive and unproductive, visible and invisible, paid and
unpaid work, economically productive and socially productive work. Methods of
evaluating women’s unpaid domestic work and women’s contribution to national
income. Returns to girls education and women’s contribution to national income.
Gender and development Indices. Government policies and their critical appraisal.
UNIT IV : Women and Labour Market
[11 Hours]
Intra-household decision making and division of labour within the household.
Factors affecting decision making. Human capital models and labour market
discrimination theories: Approaches and limitations. Gendered attachments to the
labour market: gender differences in occupation and earnings across different
sectors. Wages-Structure and differentials.
Mode of Transaction: Lecture Method and assignment.
37
References [All Latest Editions wherever applicable]
1. Gary S. Becker (1991). A Treatise on the Family, Harvard University Press,
2. Government of India (1974), Towards Equality – Report of the Committee on the
Status of Women in India, Department of Social Welfare, Ministry of Education
and Social Welfare, New Delhi.
3. Joyce P. Jacobson (1998), Economics of Gender (2nd Edition), Blackwell
Publishing, New York.
4. Krishnaraj, M, R.M. Sudarshan and A. Shariff (1999), Gender, Population and
Development, Oxford University Press, New Delhi.
5. Seth, M. (2000), Women and Development : The Indian Experience, Sage
Publications, New Delhi.
6. Srinivasan K. and A. Shroff (1998), India: Towards Population and Development
Goal, Oxford University Press, New Delhi.
7. Venkateswaran, S. (1995), Environment, Development and the Gender Gap, Sage
Publications, New Delhi.
8. Wazir, R. (2000), The Gender Gap in Basic Education : NGOs as Change Agents,
Sage Publication, New Delhi.
Journal ArticlesAs per the instructions and suggestion of the teacher concerned.
38
M.A. ECONOMICS : SEMESTER III
Core 15(b)
INDUSTRIAL ECONOMICS
[Paper Code : AM3C15EC0N]
Objective:
To acquaint and equip the students with the theory of Industrial Economics.
Course Outline:
UNIT I : Framework and Problems of Industrial Economics
[12 Hours]
Scope of Industrial Economics, Concept and organization of a firm; ownership,
control and objectives of the firm; Passive and active behaviour of the firm; Various
Theories of firm; Black Box view of the firm; and the modern contractual approach;
classification of industries.
UNIT II : Market Structure
[11 Hours]
Sellers’ concentration; Product differentiation; Entry conditions; Economies of scale
and scope; Market structure and profitability; Market structure and innovation;
Theories of industrial location – Weber and Sargent Florence; Factors affecting
location.
UNIT III : Market Conduct:
[11 Hours]
Product pricing – theories and evidence; Theories and empirical evidence on Merger
and acquisitions (M & As) and diversification, Research and Development,
Advertising, Vertical restraints.
UNIT IV : Market Performance
[11 Hours]
Growth of the firm – Size and growth of a firm; Growth and profitability of the firm;
Constraints on growth; Productivity, efficiency and capacity utilization – Concept
and measurement. Market concentration and market performance.
Mode of Transaction: Lecture method.
References [All Latest Editions wherever applicable]:
1. Armstrong,M and Porter R (2007) Handbook of Industrial Organization. North Holland
2. Barthwal, R.R. (1992), Industrial Economics, Wiley Eastern Ltd., New Delhi.
3. Divine, P.J. and R.M. Jones et.al. (1976), An Introduction to Industrial Economics,
George Allen and Unwin Ltd., London.
4. Hay, D. and D.J. Morris (1979), Industrial Economics : theory and Evidence, Oxford
University Press, New Delhi.
5. Stephen Martin (1989), Industrial Economics, Maxwell Macmillan.
Journal Articles : As per the instructions and suggestion of the teacher concerned.
39
M.A. ECONOMICS : SEMESTER III
Interdisciplinary Elective 03
GUJARAT ECONOMY
[Paper Code : AM3I03EC0N]
Objectives:
At the end of this course students will be able to:
To enable the student to understand the various aspects of Gujarat Economy as a
growing economy.
To analyze the future prospects of Gujarat Economy.
Course Outline:
UNIT I : Gujarat Economy – An Overview
[12 Hours]
Gujarat in Indian Economy - Growth and Structural Change in the Economy of
Gujarat - Economic Scene of Gujarat - District level Planning in Gujarat Infrastructure in Gujarat, Pattern of Financial Outlays,
UNIT II : Agriculture and Rural Development
[10 Hours]
Agricultural and Irrigation Development - Land use Pattern, Issues in Agricultural
Productivity, New Agro – Industrial Policy, Sources of Irrigation Institutional set up
for Irrigation Development – Agricultural Marketing Infrastructure – Allied
Agricultural Activities.
UNIT III : Industry and Urban Development
[12 Hours]
Pattern of Industrial Development in Gujarat - Key Industries in Gujarat, Industrial
Policy of Gujarat, Urbanization - Process, Development and related problems - Social
Sector in Gujarat - Employment Scenario - Environmental Problems of
Industrialization and Urbanization
UNIT IV : Financial Development in Gujarat
[11 Hours]
Public Sector Financial Institution in Gujarat : Functions and Working - Banking in
Gujarat - Commercial Banks - Rural Credit in Gujarat : Micro Finance and Credit Cooperatives - Financing of Government of Gujarat.
Modes of Transaction:
Majority of course instruction will be through class room lectures.
Part of the Course work will be given in the form of tutorials and assignments.
Some of the Topics will be accomplished through class discussion.
References (All Latest Editions wherever applicable)
1. Bhatt, B. K. (2009) - The Gujarat Economy (2nd Revised Edition), Vrinda Publication Ltd.
New Delhi.
2. Bureau of Economics and Statistics, Govt. of Gujarat – Socio-Economic Survey of Gujarat.
3. Govt. of Gujarat – Annual Budget of Govt. of Gujarat.
4. Menon, Sudha V. (2010) - Gujarat Economy : The Way Ahead, The ICFAI University Press.
40
M.A. ECONOMICS : SEMESTER IV
Core 16
ECONOMIC GROWTH AND STRUCTURAL CHANGE
[Paper Code : AM4C16EC0N]
Objectives:
At the end of this course students will be able to:
Understand the importance of factors of production in growth process.
Comprehend in adequate detail the role of Technological progress in Growth
processes.
Understand the structural changes accompanying development process.
Understand the relation between Growth theory and Planning Process.
Course Outline:
UNIT I : Economic Growth and Technological Change
[11 hours]
Statics, Dynamics and Steady State Growth; Choice of technique; Technological
progress – embodied and disembodied technical progress; neutral and non-neutral
Technical Progress [Hicks and Harrod’s views]; learning by doing, Pace of
technological change; Production function approach to economic growth, Power
functions; Total factor productivity and growth accounting. Technical efficiency and
scale of operation; Embodied technical change and measurement bias.
UNIT II : Economic Growth and Economic Models
[12 hours]
Growth models – Harrod-Domar growth models; Neo-Classical growth models –
Solow and Meade, Joan Robinson’s growth models; Cambridge criticism of Neoclassical analysis of growth, the capital controversy. Growth models of Kaldor and
Tobin; Extension of Neo-classical models: The new growth theory; Endogenous
growth; Intellectual capital: role of learning, education and research; AK model –
Explanation of cross country differentials in economic growth.
UNIT III : Growth and Structural Change
[11 hours]
Morphology of Growth – Structural changes accompanying growth – Patterns of
sectoral changes. Trends in growth of National Income; Development and Structural
Change – Engel’s elasticities – Structural changes in Demand – Production –
Investment- labour absorption – Migration - Trade; Sectoral productivity - growth
and Distribution; Inequalities; Inverted ‘U’ Hypothesis; Regional Development centre periphery theory – Inter regional and intra regional development.
UNIT IV : Allocation of Resources & Development Planning
[11 hours]
Market failure and state failure, Need for investment criteria in developing countries
- present vs., future, Alternative investment criteria; Cost - benefit analysis, Shadow
prices, Project evaluation. Need for planning - democratic decentralized and
indicative planning, micro level planning, regional planning; Plan models in Indian
Planning , Alternative strategy, Input Output Models and Linear Programming. East
Asian miracle, India and China in 21st century.
41
Modes of Transaction:
Lecture method is generally used but along with it as and when required, discussion
method would be used.
Activity assignments be given to the students and assignment method would help
them to learn by doing.
Power Point presentation may be used for delivering lectures.
References [All Latest Editions wherever applicable]:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
Adelman I (1961), Theories of Economic Growth and Development, Stanford
University Press, Stanford.
Barrow R. & Sala-Xavier Martin (2007), Economic Growth, Prentice Hall of India.
Behrman, S and T.N. Srinivasan (1995), Handbook of Development Economic Vol.
3, Elsevier, Amsterdam.
Brown M. (1966), On the Theory and Measurement of Technical Changes,
Cambridge University.
Chenery H B et. (Eds) 91974), Redistribution of Growth, Oxford University Press,
Oxford.
Chenery H and T N Srinivasan (Eds) (1989), Handbook of Development
Economics, Vols. 1 & 2, Elsevier, Amsterdam.
Dasgupta P 1993), An Enquiry in to Well-being and Destitution, Clarendon Press,
Oxford.
Ghatak S (1986), An Introduction to Development Economics, Allen and Unwin,
London.
Gillis M., D, H. Perkins, M. Romer and D.R. Sndograss (1992), Economics of
Development (3rd Edition), W. W. Norton, New York.
Gimmell N. (1987), Survey in Economic Development, Blackwell, Oxford.
Higgins B. (1959), Economic Development, W. W. Norton, New York.
Hogendorn J (1996), Economic Development, Addison, Wesley, New York.
Kahkonon S. and M. Olson (2002), A New Institutional Approach to Economic
Development, Vistaar.
Kindelberger C.P. (1977), Economic Development (3rd Edition), McGraw Hill,
New York.
Meier G.M. (1995), Leading Issues in Economic Development (6th Edition), Oxford
University Press, Oxford.
Myint, Hla (1965), The Economics of Underdeveloped Countries, Preager, New
York.
Myint H (1971), Economic Theory and Underdeveloped Countries, Oxford
University Press, New York.
Todaro M.P. (2003), (8th Edition), Economic Development, Longman, London.
Thirwal A.P. (1999) (6th Edition), Growth and Development, McMillan, U.K.
Weil David N.(2009), (2nd Edition), Economic Growth, Perarson Education.
Yujiro Hayami and Yoshihisa Godo (2005), (3rd edition) Development Economics
from Poverty to Wealth of Nations, Oxford University press.
42
M.A. ECONOMICS : SEMESTER IV
Core 17
FISCAL FEDERALISM – WITH REFERENCE TO INDIA
[Paper Code : AM4C17EC0N]
Objective:
To acquaint and equip the students with the principles and theory of Fiscal federalism
and the functioning of Fiscal Federalism in India.
Course Outline:
UNIT I : Principles and Structure of Multiunit Finance
[12 Hours]
Canons of Fiscal Federalism; Fiscal powers of different levels of government and
system of inter-governmental resource transfer in India and Fiscal relations.
Finance Commission and Planning Commission; Various fiscal issues across CentreState-local level governments.
UNIT II : Growth and Structure of Government Expenditure and Revenue
[11 Hours]
Public sector in national income accounts. Growth, structure, composition of various
components of government (Central and State) expenditure and revenue. Causes of
expenditure and revenue growth.
UNIT III : Tax System and Public Debt
[11 Hours]
Tax system in India, its features and reforms; public debt of central and state
governments; various types of deficits and their implication, approach and
measures to debt servicing.
UNIT IV : Local Government Finance
[11 Hours]
Nature of fiscal decentralization at Panchayat and municipal corporation levels.
Functions and powers. Finance Commission and local government bodies, Role and
function of State Finance Commission.
Mode of Instruction: Lecture method and assignments.
References [All Latest Editions wherever applicable]
1. Bhatia H.L. Public Finance, Vikas Publishing House Pvt. Ltd, New Delhi.
2. Prakash Om, Public Economics- Theory and Practice, Vishal Publishing Co,
Jalandhar-Delhi
3. Government of India: Finance Commission Report, Reserve Bank of India
Journal Articles:
As per the instructions and suggestion of the teacher concerned.
43
M.A. ECONOMICS : SEMESTER IV
Core 18
INTERNATIONAL FINANCE AND MONETARY SYSTEM
[Paper Code : AM4C18EC0N]
Objectives:
At the end of the course student will be able to analyze BOP issues and trends in the open
economy.
This course will provide students with the knowledge relating to various aspects of BOP,
International Monetary and Financial Institution and their impact on Indian economy as
well as global economy.
The student will be able to understand the working of exchange rate mechanism and foreign
exchange market.
Course Outline:
UNIT I : Balance of Payments
[12 Hours]
Equilibrium and disequilibrium in the balance of payment; The process of adjustment
under systems of Gold standard, fixed exchange and flexible exchange rates; Income
adjustment approach – foreign trade multiplier with and without foreign repercussions
and determination of national income and output; a critical review of the monetary
approach to the theory of balance of payments adjustment; Expenditure-reducing and
expenditure-switching policies and direct controls for adjustment.
UNIT II : International Finance
[11 Hours]
International Financial Markets – Foreign Exchange Markets – spot and forward market
Exchange rate determination – purchasing power parity conditions. Interest Rate
Arbitrage and Interest Rate Parity conditions, Exchange Rates – Overshooting and
undershooting – J curve effect– Emerging capital market – ADR & GDR, International
Debt Problem and Risk exposure of banks. Euro market.
UNIT III : International Financial Institutions and Monetary System
[11 Hours]
Rise and fall of gold standard and Bretton-woods system; Need, adequacy and
determinants of international reserves; Conditionality clause of IMF; Emerging
International Monetary System and Reform of the International Monetary system and
its relevance to India and developing countries; theory of short-term capital movement;
East-Asian Crisis and lessons for developing countries; Objectives and functions of IMF,
World Bank and Asian Development Bank – their achievements and failures.
UNIT IV : India’s Exchange Rate Arrangements
[11 Hours]
India’s exchange Rate Policy prior and after 1991, full convertibility of Rupee, Foreign
Capital inflows – FDI and FPI, India’s international Debt composition – Policies for
achieving internal and external equilibrium simultaneous under alternative exchange
rate regimes; An overview of India’s Balance of Payment crisis – 1966, 1975, 1981,
1991. Structural changes in India’s balance of payments in the post liberalization period
– non debt creating inflows on capital account and their implications and FEMA.
44
Mode of Transaction:
This course will be delivered through lectures. However, there will be class discussions
on recent developments. There will be practical exercises on numerical problems and
assignments where ever possible.
References [All Latest Editions wherever applicable]
1.
Carbough, R.J., International Economics, International Thempson Publishing,
New York.
2. Dana, M.S. (2000), International Economics : Study, Guide and work Book, (5th
Edition), Routledge Publishers, London.
3. Dunn, R.M. and J.H. Mutti (2000), International Economics, Routledge, London.
4. Government of India: Economic Survey Annual Issue.
5. Kenen, P.B. (1994), The International Economy, Cambridge University Press,
London.
6. King, P.G. (1995), International Economics and International Economic Policy : A
Reader, McGraw Hill International, Singapore.
7. Krugman, P.R. and M. Obstfeld (1994), International Economics : Theory and
Policy, Glenview, Foresman.
8. RBI Annual Report, Latest Issue.
9. RBI: Report on Currency and Finance, Annual Issue.
10. Salvatore, D., International Economics, Prentice Hall, Upper Saddle river, N.J.
New York.
11. Soderston, Bo and Reed, International Economics, The Macmillan Press Ltd.
London.
45
M.A. ECONOMICS : SEMESTER IV
Core 19
ECONOMICS OF HUMAN RESOURCES
[Paper Code : AM4C19EC0N]
Objectives:
To provide an overview of the theoretical aspects of human resource development.
To understand the importance of investment in education for economic growth.
To understand the cost-benefit aspect of educational planning.
To understand the economic dimensions of health as investment.
To review the development of health and education in India.
To understand, in detail, the economic foundations of the labor market – its
features and functioning.
To study the impact of trade unions on wages and factors responsible for wage
differentials.
To develop an understanding of the theories of discrimination in the labor market
and migration.
Course Outline:
UNIT I : Foundations of Human Resource Development
[11 Hours]
Human Capital and human resource development : Meaning, measurement and
importance – Human versus Physical Capital – differences in features and
measurement – forms of human capital investment – on-the-job training : general
and specific – human capital in growth accounting – Strategies for Human Resource
Development – Human Development Index – subsequent modifications.
UNIT II : Education
[11 Hours]
Economic dimensions of health and education – Role of Education in Economic Growth
– determinants of demand for education – private and social costs/benefits of education –
cost-benefit approach to educational planning in developing economies – manpower
requirements approach – education and labor market – educational financing – issues in
educational development in India
UNIT III : Health
[10 Hours]
Education and health : similarities and differences – Economic dimensions of health
– determinants of health – supply of and demand for health care – health financing –
welfare implications of pricing health services – health indices – cost-benefit and
cost-effectiveness in health care provision – issues in health development in India
UNIT IV : Labour
[13 Hours]
Characteristics of labor – components of labor supply – labor force : concept and
measurement – demand for labor : competitive and non-competitive markets –
supply and demand together : the search process – union effects on labor markets –
collective bargaining – wage differentials – theories of labor market discrimination –
migration.
46
Modes of Transaction:
The major part of the course work will be taught by the lecture method but
wherever necessary, discussion on different practical issues will also be employed.
Some portion of the course work would be given to students in the form of
assignments.
Audio-visual aids in terms of PowerPoint presentations of assignments by students
would be encouraged.
Teachers will also be encouraged to use such audio-visual aids in explaining
certain concepts.
Wherever feasible, students may be taken on field trips to gather data as well as
observe the working of the economy.
References [All Latest Editions wherever applicable]
1. Bellante, D. and M. Johnson (1983) – Labor Economics : Choice in Labor Markets,
McGraw Hill, Singapore.
2. Blaug, Mark (1970) – An Introduction to Economics of Education, Penguin.
3. Borjas, G.J. (1996) – Labor Economics, McGraw Hill, Singapore.
4. Journal of Political Economy : Investment in Human Beings (1962) – Supplement
Edition, Vol. LXX, No.5, Part 2, October.
5. Kutty, V. Raman (1999) – A Primer of Health Systems Economics, Allied
Publishers, New Delhi.
6. Lekhi, R.K. (1999) – The Economics of Development and Planning, Kalyani
Publishers, New Delhi.
7. Rees, Albert and Daniel Hamermesh (1984) – Economics of Work and Pay, New
York, Haper & Row Publishers.
8. UNDP – Human Development Reports – Various Issues.
9. Woodhall, Maureen (1970) – Cost-benefit Analysis in Educational Planning,
UNESCO.
47
M.A. ECONOMICS : SEMESTER IV
Core 20(a)
ECONOMICS OF INFRASTRUCTURE
[Paper Code : AM4C20EC0N]
Objective:
To acquaint and equip the students with the theory and practice of Economics of
Infrastructure.
Course Outline:
UNIT I : Introduction
[12 Hours]
Infrastructure and economic development – Infrastructure as a public good; social
and physical infrastructure; Special characteristics of public utilities. The peak-load,
Off-Load Problem, Dual Principle Controversy; Economies of scale of Joint supply;
Marginal Cost Pricing vs. other methods of pricing in public utilities; Crosssubsidization – free prices, equity and efficiency.
UNIT II : Transport and Communication
[11 Hours]
The structure of transport costs. Transport models of freight and passenger
Demand. Modal Choice: Cost Functions in the Transport Sector, Special Problems of
Individuals Modes of Transport with respect to pricing and financing; Inter-Modal
Mix in the Indian Situation. Organizational characteristics of communication
industry and issues related to pricing and financing.
UNIT III : Electricity and Gas
[11 Hours]
Institutional Framework and Issues, Bulk Supply and Pricing of Electricity. The
Relative Economics of thermal, hydel and nuclear Power Plants. Various reforms in
power sector of India. The Case for a National Power Grid. The Exploitation of
Natural Gas. Pricing Problem.
UNIT IV : Social Infrastructure
[11 Hours]
Supply, Demand, Pricing and Financing of Social Infrastructure, Demand and Supply
of Education, its relationship with employment, poverty, internal migration and
brain drain, Health System Characteristics, Measurement, distribution, and
Financing.
Mode of Transaction: Lecture method and assignment.
References [All Latest Editions wherever applicable]
1.
2.
3.
4.
5.
Crew, M.A. and P.R. Kleindorfer (1979), Public Utility Economics, Macmillan, London.
Parikh, K.S. (Ed.) (1997), India Development Report 1997, Oxford, New Delhi.
Parikh, K.S. (Ed) (1999), India Development Report – 1999-2000, Oxford, New Delhi.
Turvey, R. (Ed.) (1968), Public Enterprises, Penguin, Harmondsworth.
India Infrastructure Report.
Journal Articles : As per the instructions and suggestion of the teacher concerned.
48
M.A. ECONOMICS : SEMESTER IV
Core 20(b)
MATHEMATICAL ECONOMICS
[Paper Code : AM4C20EC0N]
Objectives:
At the end of this Course Students will be able to
Describe the concepts and objectives of study of Mathematical Economics
Formulate economic theory (Micro & Macro) in Mathematical Framework.
Enhance their understating of economic theory with a greater degree of precision.
Explain economic theory with examples from real life.
Throw light on inter-relationships among economic variable and provide an
economic framework for empirical verification of theories.
Course Outline:
UNIT I : Comparative Static Methodology-I
[13 Hours]
Equilibrium & Optimization: Cardinal and Ordinal Utility, Ordinal utility
maximization, Slutsky equation, Ordinary and Compensated demand functions,
income, substitution and price effect, concept of elasticities - consumer’s &
producer’s surplus – Economic applications of difference and differential equations.
UNIT II : Comparative Static Methodology-II
[11 Hours]
Production function – homogeneous and non-homogeneous, Properties and
derivation of production functions, cost functions, producer’s equilibrium – laws of
returns and returns to scale, constrained optimization by a producer, input demand
functions, adding up theorem.
UNIT III : Analysis of Equilibrium & Game Theory
[10 Hours]
Price determination in perfect competition, monopoly; Discriminating Monopoly,
Monopolistic Competition, duopoly, oligopoly, and monopsony; Bilateral monopoly,
Game Theory : Concept of game – Two person Zero-sum game, pure and mixed
strategies, Maximin, Minimax and Saddle point solutions, non-constant sum game,
prisoner’s dilemma, Nash Equilibrium.
UNIT IV : Mathematical Programming and Input Output Analysis
[11 Hours]
Non-linear programming and its applications – Kuhn Tucker conditions and
inequality constraints, Input-Output Analysis - Open and closed system, HawkinsSimon conditions, Leontief dynamic system.
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Modes of Transaction:
Lecture method is generally used but along with it as and when required discussion
method would be fruitful.
Activity assignments (i.e. practical numerical problems) may be given to the
students and assignment method would help them to learn by doing
Students may be given training by use of computer.
Power Point presentation may be used for delivering lectures
References [All Latest Editions wherever applicable]
1.
2.
Allen R.G.D. (1976), Mathematical Economics, Macmillan, London.
Arrow K.J. and M. Intrilligator (Eds.) (1992), Handbook of Mathematical
Economics, Volumes I,II and III, North Holland, Amsterdam.
3. Baumol W. J. (1987), Economic Theory and Operations Analysis, 4th Edition,
Prentice Hall of India Pvt. Ltd. New Delhi.
4. Chiang A.C. (2005), Fundamental Methods of Mathematical Economics, 4th
Edition, McGraw Hill, New Delhi.
5. Edward T. Dowling (1992) Schaum’s Outline of Theory and Problems of
Introduction to Mathematical Economics, 2nd Edition, McGraw-Hill, Inc.
6. Hands, D.W. (1991), Introductory Mathematical Economics, D.C. Heath.
7. Handy, S.T. (1997), Operations Research, Prentice-Hall of India, New Delhi.
8. Henderson, J. and R.E. Quandt (1980), Microeconomic Theory : A Mathematical
Approach, MacGraw Hill, New Delhi.
9. Michael Hoy, John Livernois, Chris Mckenna, Ray Rees & Thanasis Stengos
(2004), Mathematics for Economics, 2nd Edition, Prentice Hall of India Pvt. Ltd.,
New Delhi.
10. Mukherji, B. and V. Pandit (1982), Mathematical Method of Economic Analysis,
Allied Publishers, New Delhi.
11. Taro Yamane (2000), Mathematics for Economics-An Elementary Survey, 2nd
Edition, Prentice Hall of India Pvt. Ltd. New Delhi.
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M.A. ECONOMICS : SEMESTER IV
Interdisciplinary Elective 04
RURAL ECONOMICS
[Paper Code : AM4I04EC0N]
Objectives:
At the end of this course students will be able to:
Have a conceptual knowledge about Rural Economics.
Understand the dynamics of rural development and the socio-ecological system.
Identify and analyze the various aspects affecting rural economy in the Indian context.
Course Outline:
UNIT I : Introduction
[11 Hours]
Concepts: Rural areas – Rural Socio-Ecological System and its components, Land - use
pattern, Population: Magnitude, rural – urban distribution, occupational structure, workforce participation, rural poverty and Income.
UNIT II : Agriculture
[11 Hours]
Land reforms: Need, measures of land reforms in India, concept of economic holdings, size
and pattern of land holdings in India; Agricultural inputs and production, effects of green
revolution and measures for improvement; Allied Agricultural enterprise and its impact on
rural economy: Plantation, Horticulture Animal husbandry, dairying and fisheries.
UNIT III : Rural Industries and Rural Finance
[11 Hours]
Rural Industry: Importance, types & problems - Handicrafts - Handloom, Khadi and Village
Industries, Food processing industries, coir industry.
Rural Finance and Credit System: types, institutions & problems.
UNIT IV : Social Sector and Infrastructure Development
[12 Hours]
Rural Housing, Rural Health, Sanitation and Water, Education, Roads, Transport and
Communication, Electrification, Rural Development Programmes, Bharat Nirman, Rural
Administration – Panchayati Raj System.
Modes of Transaction: Lectures – Class Discussion.
References (All Latest Editions wherever applicable)
1. Ishwar Dhingra (Latest Edition) - The Indian Economy, Sultan Chand & Sons
Publications.
2. Gaurav Dutt and A. Mahajan (Latest Edition) - Dutt and Sundharam’s Indian Economy,
Sultan Chand & Sons Publications.
3. Astha Ahuja - Agriculture and Rural Development in India – Post Liberalization Initiatives,
New Century Publications, New Delhi.
4. Dr. Chandra Shekhar Prasad (2007) - Agriculture and Rural Development in India since
1947, New Century Publications, New Delhi.
5. K. Hanumantha Rao - Rural Development Statistics 2009-2010, National Institute of Rural
Development.
6. Satya Sundar (Latest Edition) - Rural Development, Himalaya Publishing House.
7. Dr. Gopal Lal Jain - Rural Development, Mangal Deep Publications, Jaipur.
8. A. Mustafa (2010) - Indian Rural Economy, Serials Publications 4008/24, 1st Floor
Ansari Road Darya Gunj, New Delhi – 110 002.
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