Course Structure of Master of Arts in Economics
Department of Economics
Central University of Haryana,
Mahendergarh
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(Finalized By School Board in 2011)
The Master of Arts (M.A.) in Economics is a two years full time programme. The programme
is composed of four semesters I, II, III and IV. Following is the semester wise distribution of
study courses:
Semester –I
Paper Nomenclature Course Code Credit
Core Courses
Microeconomic Theory-I SHS ECO 01 101 C 3104 4
Macroeconomic Theory-I SHS ECO 01 102 C 3104 4
Economic Growth and Development-I SHS ECO 01 103 C 3104 4
Mathematics for Economic Analysis SHS ECO 01 104 C 2103 3
Elective Courses
Agriculture Economics SHS ECO 01 101 E 2103 3
Labor Economics SHS ECO 01 102 E 2103 3
Mathematical Economics-I SHS ECO 01 103 E 2103 3
Electives to be opted from Courses Offered by:
Management Department 3
Education Department 3
Law Department 3
Total Credit 33
Semester-II
Paper Nomenclature Course Code Credit
Core Courses
Microeconomic Theory-II SHS ECO 01 201 C 3104 4
Macroeconomic Theory-II SHS ECO 01 202 C 3104 4
Economic Growth and Development-II SHS ECO 01 203 C 3104 4
Statistical Methods SHS ECO 01 204 C 2103 3
Elective Courses
Health Economics SHS ECO 01 201 E 2103 3
Industrial Economics SHS ECO 01 202 E 2103 3
Mathematical Economics-II SHS ECO 01 203 E 2103 3
Electives to be opted from Courses Offered by:
Management Department 3
Education Department 3
Law Department 3
Total Credit 33
Semester-III
Paper Nomenclature Course Code Credit
Core Courses
International Economics-I SHS ECO 01 301 C 3104 4
Econometrics-I SHS ECO 01 302 C 3104 4
Indian Economy SHS ECO 01 303 C 3104 4
Public Economics-I SHS ECO 01 304 C 2103 3
Elective Courses
Financial Markets, Institutions and Services SHS ECO 01 301 E 2103 3
Applied Demand Analysis SHS ECO 01 302 E 2103 3
Economics of Infrastructure SHS ECO 01 303 E 2103 3
Electives to be opted from Courses Offered by:
Management Department 3
Education Department 3
Law Department 3
Total Credit 33
Semester-IV
Paper Nomenclature Course Code Credit
Core Papers
International Economics-II SHS ECO 01 401 C 3104 4
Econometrics-II SHS ECO 01 402 C 3104 4
Research Methodology SHS ECO 01 403 C 3104 4
Public Economics-II SHS ECO 01 404 C 2103 3
Elective Paper
Contemporary Issues in Indian Economy SHS ECO 01 401 E 2103 3
Time Series Econometrics SHS ECO 01 402 E 2103 3
Applied Production Analysis SHS ECO 01 403 E 2103 3
Electives to be opted from Courses Offered by:
Management Department 3
Education Department 3
Law Department 3
Total Credit 33
Course Code: Example
SHS ECO 01201C/E 3104: SHS (School of Arts, Humanities and Social Sciences), ECO
(Economics Department), 01(Programme), 2 (Semester), 01 (Course), C/E (Core/ Elective), 3
(Lecture), 1 (Tutorial), 0 (Practical), 4 (Total Credits).
Microeconomic Theory-I
Nature and scope of microeconomics; the circular flow of economic activity, positive and
normative economics, theorizing and modeling; theory of consumer behavior: cardinal utility,
indifference curve, revealed preference theory, derivation of consumer demand, Slutsky’s
theorem (substitution and income effect); market demand; elasticities of demand, relation
between revenue and price elasticity, constant elasticity demand function; consumer surplus,
indirect utility function.
Consumer behaviour under risk and uncertainty: concept of certainty, risk, and uncertainty,
measurement of risk, attitudes towards risk, risk aversion, risk loving and risk neutral, risk
aversion and indifference curves, reducing risk and uncertainty, insurance and gambling.
Theory of production: diminishing law of variable proportions, law of returns to scale,
marginal rate of technical substitution, elasticity of substitution, factor intensity, efficiency of
production, multi product firm, production possibility curve: properties and empirical
significance of Cobb-Douglas(C-D), constant elasticity of substitution (CES) and Trans-log
(TL) production functions; Traditional and modern theories of cost, total, fixed and variable
costs, short run and long run cost, relation between average and marginal costs, `envelope’
and L-shaped curves.
Theory of firm: price and output determination under perfect competition, short run and long
run equilibrium of the firm and industry, supply curve, efficiency implications of perfect
competition, determination of price and output under monopoly; short run and long run
equilibrium, price discrimination, regulated monopoly and monopoly control.
Macroeconomic Theory-I
Introduction, measurement of national income: product approach, income approach,
expenditure approach; measures of aggregate income: concept of gross, net, national,
domestic, market prices and factor costs, concept of value added; methodology of estimation
of national income in India; GDP deflator, consumer and producer price index.
Classical macroeconomics; Say’s law, equilibrium output and employment, New classical
models of output determination, Keynes model of income determination,
Consumption function: average and marginal propensity to consume, consumption
hypothesis; permanent income hypothesis, relative income hypothesis, life cycle hypothesis.
Savings and investment; business fixed investment, residential investment, inventory
investment, marginal efficiency of investment (MEI), marginal efficiency of capital (MEC),
saving and investment functions, determination of interest rates, multiplier concept,
acceleration principle and its implications, business cycles; meaning and phases of the
business cycle, interaction of multiplier and accelerator; Business cycles; Samuelson model,
Hicks model, Keynesian model and Kaldor model.
Introduction to economic fluctuations: time horizons in macroeconomics, aggregate demand,
aggregate supply, stabilization policy.
Economic Growth and Development-I
Meaning and measurement of economic development; economic growth and development,
economic development and welfare, meaning of economic under development, characteristic
of under developed economies, vicious circle of poverty; measurement of development;
conventional, human development index, and quality of life indices, concept of sustainable
development.
The big push theory, critical minimum effort thesis, stages of economic growth, concept of
take off into self-sustained growth, balanced versus unbalanced growth, balanced growth,
unbalanced growth, Malthus Theory of population, factors in economic development,
theories of development: Lewis model, Renis-Fei model.
Neo-classical model of economic growth; short run versus long run, three determinant of
growth, basic growth equation, conditions for steady state growth, stability of steady state
growth, sources of growth, technical progress and neutrality of technical change.
Economic development and planning models: meaning of economic planning, planning
versus price mechanism, main elements of plan and plan models; Harod-Domar model,
Mahalanobis model and development plans in India.
Mathematics for Economic Analysis
Concepts of sets subset and bounded set, set operations, convex set, identification of convex
set in budget line statement, production possibility frontier, indifference and isoquant curves,
Cartesian product, relations and functions, idea of polynomial, exponential, logarithmic and
trigonometric functions; Solution of linear and quadratic equations; limit and continuity of
functions (single variable);
Concept of a derivative and rules of differentiation: monotonicity, concavity and convexity of
functions of a single variable; necessary and sufficient conditions for a maximum and
minimum: applications to economics, total to marginal magnitudes, elasticities.
Idea of integration: definite and indefinite integral, rules of integration, applications in
economics, relation between marginal and total magnitudes, relations between cost curves,
consumer surplus.
Definitions of vector and matrix: addition and multiplication of matrices, transpose and
inverse of a matrix, minors and co-factors of a matrix, determinant of a matrix, rank of a
matrix, simultaneous system of equations, Cramer’s rule, solution of homogeneous and non
homogeneous system of equations; signs of quadratic forms with and without constraints,
positive definite, negative definite, positive semi definite, negative semi- definite.
Functions of several variables: production functions, utility functions, cost functions; partial
and total derivatives; implicit functions and their derivatives. Homogeneous functions;
Euler’s theorem; degrees of homogeneity of production functions, cost functions, demand,
functions and their economic interpretation,
Necessary and sufficient conditions for stationary values without constraints; necessary and
sufficient conditions for stationary values with linear constraints- the Lagrange method;
constrained maximization of utility.
Difference equation: solutions of linear first and second order difference equations with
constant coefficients and constant terms.
Agriculture Economics
Nature and scope of agricultural economics; economic development with unlimited supplies
of labour; Lewis-Fei-Ranis model; Lewis versus the Harris-Todaro view of underemployment
in LDCs, wage spillover and unemployment in a wage- gap economy; measurement problems
of surplus labour and disguised unemployment; theory of agricultural production, three stages
of production function.
Agricultural labour force and productivity: farm size and productivity, supply functions and
price responsiveness, contractual arrangements, employment and wages in rural markets;
interdependence between agricultural and industry; terms of trade between agriculture and
industry.
Rural credit markets and institutions in developing countries; rural infrastructure prospects
and strategies for land reforms; some theoretical aspects of agricultural policies; agricultural
diversification, food processing, and standardisation.
Agricultural development strategies: induced technical and institutional change, green
revolution; microeconomics of the rural sector; the new development economics; risk and
uncertainty in agriculture, environment and agricultural a development; WTO and
agriculture.
Labour Economics
Labour - Its Characteristics; Role of Labour in Economic Development - W.A. Lewis and
Ranis Fie; Mobility and productivity of labour.
Supply of Labour: Static Labor-Leisure Choice, Effects of Social Programs and Income
Taxes, The Life-Cycle Model, Investments in Human Capital, Collective Models of
Household Labor Supply, Occupational Choice; Demand of Labour: Static Cost, Profit and
Labor Demand Functions, Elasticity of Derived Demand: the Hicks-Marshall
Rules,Adjustment Costs and Dynamic Labor Demand; Equilibrium in Labour Market:
Compensating Differences -- Adam Smith, Efficiency Wages, Segmented Labor Markets,
Migration.
Employment and Development Relationship - Unemployment: Concept, Types, and
Measurement, particularly in India; Public Sector and Employment in Agricultural Sector;
Analysis of Educated Unemployment; Employment Policy in Five Year Plans and its
Evaluation.
Classical, Neo-classical and Bargaining Theories of Wage Determination; Concepts of
Minimum Wage, Living Wage and Fair Wage in Theory and Practice; Discrimination in
Labour Markets; Productivity and Wage Relationship; Analysis of Rigidity in Labour
Markets; National Wage Policy; Wages and Wage Boards in India; Bonus System and Profit
Sharing.
Theories of Origin and Growth of Labour Movement - Growth, Pattern and Structure of
Labour Unions in India, Achievements and Failures of Labour Unions;
Industrial Relations - Industrial Disputes and industrial Peace; Causes of industrial Disputes
and their Settlement and Prevention Mechanism.
Special Problems of Labour: Child Labour, Female Labour, Discrimination and Gender Bias
in Treatment of Labour; Labour Market Reforms in India - Second National Commission on
Labour; Globalisation and Labour Markets.
Mathematical Economics-I
Introduction: The role of theory, Microeconomics, The role of mathematics.
Theory of consumer behaviour: basic concepts, maximization of utility, demand functions,
income and leisure, substitution and income effects, generalization of n variables.
Topics in consumer behaviour: A linear expenditure system, separate and additive utility
function, homogeneous and homothetic utility functions, indirect utility functions and duality
in consumption, theory of revealed preferences, derivation of demand functions from
necessary conditions’ and the Slutsky equation from the sufficient condition, interpretation of
Lagrangian multiplier, consumer surplus, Problem of choice in situations involving risk,
behaviour under uncertainty.
The Theory of firm: basic concepts, optimizing behaviour, input demands, cost functions,
joint production, profit maximization and substitution effect.
Topics in theory of firm: homogeneous production function, CES production functions, C-D
production function, the Kuhn-Trucker theorem, duality in production, production under
uncertainty, linear production functions, linear programming.
Microeconomic Theory-II
Monopolistic competition; price and output decisions under monopolistic competition,
equilibrium with product differentiation and selling costs, excess capacity under monopolistic
and imperfect competition, criticism of monopolistic competition; non-collusive oligopoly,
Cournot, Bertrand, Chamberlin, and kinked demand model, collusive and non-collusive
oligopoly behavior; cartels and mergers, price leadership and basing point price system.
A critique of Neoclassical theory of the firm; Alternative theories of the firm: Baumol’s sales
revenue maximization model, Williamson model of managerial discretion, Marris model of
managerial enterprise, Bain’s limit pricing theory, the behavioral model of Cyert and March.
Neoclassical theory of factor pricing: marginal productivity theory, product exhaustion
theorem, elasticity of technical substitution, technical progress and factor shares, theory of
distribution in imperfect product and factor markets, determination of rent, wages, interest
and profits.
General equilibrium theory: Walras general equilibrium model, graphical illustration of
existence, uniqueness and stability of equilibrium; Welfare economics: criteria of social
welfare, the Pareto-optimality criterion, Kaldor Hicks compensation criterion; Bergson’s
social welfare function, criterion Arrow’s impossibility theorem; Game theory: zero-sum and
non-zero-sum game, pure and mixed strategy, dominant strategy, Nash equilibrium.
Macroeconomic Theory-II
Money: definition, components of money stock, demand for money, transaction motive,
precautionary motive, speculative motive, quantity theory of demand for money, Cambridge
quantity theory, Baumol and Tobin demand for money, inflation and interest rates, nominal
interest rate and demand for money, Keynesian liquidity approach, determinants of money
stock, money multiplier.
Goods market and IS curve, money market and LM curve, equilibrium, explaining
fluctuations with the IS-LM model, IS-LM – fiscal and monetary policy. Aggregate demand
in the open economy, Mundell-fleming model, exchange rate: determination, flexible and
fixed exchange rate system, monitory and fiscal policy in flexible and fixed exchange rate
system.
Inflation and its effects; effect on distribution of income and wealth, effect on output,
employment and growth, causes and types of inflation; demand pull inflation, cost push
inflation, structural inflation, policies to control inflation, tradeoff between inflation and
unemployment, Philips curve: adaptive and rational expectations.
New macro economics; Lucas imperfect information, model, new Keynesian model of price
stickness, rational expectations, random walk of GDP.
Central banking and monetary controls; functions of a central bank; monetary policy:
objectives of monetary policy, policy making process, implications of targeting monetary
aggregates and interest rate.
Economic Growth and Development-II
Role of education, knowledge, and governance in economic development; trade and
development; trade as engine of growth; Perbisch, Singer and Myrdal views, gains from
trade and less developed countries (LDC), role of foreign direct investment(FDI) and
multinational corporation (MNC) in economic development.
Concept and measures of poverty; head count ratio, income gap ratio, Sen’s poverty index;
concept and measures of inequality; Lorenz curve and Ginnis’ coefficient; growth and new
industrial policy; privatization and disinvestments; labour market reforms; state and state
failures; issues of good governance.
Economic development and environmental degradation: environmental Kuznet’s curve,
preservation and irreversibility of environmental change, Krutilla-fisher equation, energy and
development.
Solow model: Basic Solow model, technology and Solow model, Solow model with human
capital; Economics of ideas; Economic growth: Romer model,
Endogenous growth: mechanics of endogenous growth, the deeper economics of endogenous
growth, convergence, population growth and Malthus, Lessons from Asian tigers, natural
resources as limits to growth, neoclassical versus endogenous growth theory.
Statistical Methods
Data and date types, representation of data; Measures of central tendency from grouped and
ungrouped data: arithmetic mean, median, mode, geometric mean, and harmonic mean,
measures of dispersion from ungrouped data, range, mean deviation, quartile deviation,
standard deviation and coefficient of variation.
Measures of Skewness and Kurtosis: moments about origin, arithmetic mean, and an arbitrary
value; concepts and computation of Skewness and Kurtosis.
Correlation and regression: method of least squares, estimation of parameters of a regression
equation; simple, partial, and multiple correlation coefficients.
Probability and probability distribution: concepts, addition and multiplication rules of
probability, mathematical expectation; theoretical distributions: binomial, normal, and
Poisson distribution.
Sampling and sampling distribution: sample and population, sampling and non sampling
errors, sampling techniques.
Estimation and hypothesis testing: point and interval estimation, properties of estimator;
consistency, sufficiency, unbiasedness, and efficiency, null and alternative hypotheses,
degrees of freedom, Type-I and Type-II errors; level of significance; small and large sample
tests; t,
2
, F and Z.
Health Economics
Introduction: the relevance of economics in health and medical care
The Supply and Demand for Health and Medical Care: Supply of Health and Medical Care,
The production of health, The production, cost and technology of medical care; Demand for
Health and Medical care: Health as an investment good, Demand for Medical care; The
demand for health insurance; The market for health insurance: its performance and structure
The role of government in Health and medical care: Government intervention in medical
care, market imperfections, market failure, redistribution using in-kind subsidies; Health care
reform
Health dimensions of development - Determinants of health – Poverty, malnutrition, illiteracy
and lack of information, Economic dimensions of health care –Financing of health care and
resource constraints - Inequalities in health – Class and gender perspectives; Institutional
issues in health care delivery.
Industrial Economics
Concept and organisation of firm ownership, control and objectives of a firm. Theories of
Industrial Location; Weber and Sargent florence, Factors Affecting Location, Market
Structure; Seller’s Concentration, Product Differentiation, Entry and Exit Conditicons,
Economies of Scale, Market Structure and Profitability. Market Structure and Innovation.
Product-Pricing Theories and Evidence. Inuestment Expenditure and Methods of Evaluating
Investment Expenditure; Theories and Empirical Evidence on Mergers and Acquisitions (M
& As), and Industrial Diversification. Growth and constraints on the Growth of the Firm,
Concepts and Measurement of Productivity, Efficiency, and Capacity Utilisation.
Pattern of Industrialization; Public and Private, Large and Small Industries. Cost Benefit
Analysis; Net Present Value (NPV); Internal Rate of Return (IRR); MNC and Transfer of
Technology; Foreign Direct Investment (FDI) and Technology, Industrial Labour Problems,
Reforms, Liberalisation, Disinvestment, Privatisation and Social Security Consideration.
Industrial finance; Owned, External, and other components of funds. Pole, nature, volume,
and types of institutional finance; IDBI, IFCI, SFCs, SIDC, Commercial banks, Financial
statements; balance sheet, profit and loss account, assessment of financial soundness, and
ratio analysis. Development of small scale and cottage industries in Inida.
Mathematical Economics-II
Market Equilibrium: Assumptions of demand function, demand functions, supply functions,
commodity market equilibrium; Monopoly, monopsony & monopolistic competition:
monopoly basic theory, monopoly price discrimination, monopoly applications, monopolistic
competition.
Welfare economics: Pareto optimality, efficiency of perfect competition, external effect in
consumption and production function, taxes and subsidies, social welfare functions, theory of
second best.
Applications to Harrod-Domar one sector model, Solow model, Endogenous growth model:
AK and Lucas model; Cobweb model and the dynamic multiplier, Samuelson multiplier
acceleration interaction model, IS and LM curves.
Leontief’s input-output models (closed and open), Hawkin-Simon condition, price solution
for Leontief model; Elementary idea of game theory: zero sum and non zero sum game, pure
and mixed strategy, dominating strategy, saddle point solution of a game, a duopoly game.
International Economics-I
International economics: introduction, international trade and Nation’s standard of living,
current international economic problems; Trade theories: concept of international trade, basis
for and gains from trade, trade based on Absolute Advantages, Comparative advantages,
Comparative advantages and opportunity cost; standard theory of trade: production frontier
with increasing costs, community indifference curve, equilibrium in isolation.
Demand and supply, offer curves and terms of trade: Equilibrium relative commodity price
with trade - a partial equilibrium analysis, general equilibrium analysis, offer curves, terms of
trade.
Factor endowments and Hecksher Ohlin Theory: factor intensity, factor abundance, factor
price equalization, and income distribution, Stopler Samuelson theorem, Leontiff paradox;
Modern trade theory: economies of scale, imperfect competition, product differentiation.
International Trade Policy: Trade Restrictions; tariffs, partial equilibrium analysis of a tariff,
theory of tariff structure, general equilibrium analysis of tariff in small country and large
country, optimum tariff; non-tariff barriers: import quotas, other non-tariff barriers and new
protectionism, political economy of protectionism, Uruguay round and outstanding trade
problems.
Econometrics-I
Introduction: Broad classification of economic relations, stochastic and non stochastic
relations, econometrics versus mathematical economics, econometrics versus statistics,
concepts of econometric and mathematical models and their essential ingredients, functions
of econometrics, essential steps of an empirical study.
The simple linear regression model: ordinary least squares (OLS) estimators and their
properties, goodness of fit and tests of hypotheses, effect of changing scale and units of
measurement of variables.
Multiple linear regression model: least squares estimators and their properties, coefficient of
determination (R2) and adjusted coefficient of determination (R2
) as measures of goodness of
fit, commonly used functional forms, their choice and interpretation of coefficients, testing
of hypotheses, testing individual coefficients, testing several coefficients jointly, testing
linear combination of coefficients, computing R2
, R2
and F-statistic when there is no intercept
term, effect of omitting intercept term, effect of inclusion of irrelevant and exclusion of
relevant variable in the model.
OLS assumption violations: Multi-collinearity, heteroscedasticity, and auto-correlation,
detecting the problems, their consequences and solutions.
Indian Economy
Characterization of Indian Economy as a Developing Economy, Output of the economy and
its composition; Rationale, Features and Objectives of Indian Economic Planning, Vision and
Strategy for Twelth Five Year Plan, Economic Reforms in India, Macroeconomic
Stabilisation, Structural Reforms, Performance of Indian Economy since Economic Reforms.
Capital Requirement and Economic Growth; Domestic Savings and Capital Formation;
Concept and Incidence of Poverty in India.
Role, nature and cropping pattern of agriculture in India; public and private investment in
agriculture; W.T.O. and Indian agriculture; causes and measures of low productivity in Indian
agriculture; land reforms, agricultural inputs and green revolution; importance, sources, and
availability of agricultural finance; agricultural marketing in India; evaluation of
government’s agricultural policy; agricultural subsidies, public distribution system.
Problems of small scale and cottage industries and government policy in India; industrial
policy in pre and post reform period in India; evaluation of privatisation and disinvestment
policy in India; private sector in the post liberalisation period.
Monetary Policy of the Reserve Bank of India and its Appraisal; Fiscal Policy in India; Fiscal
Imbalance, Deficit Finance and Fiscal Responsibility in India; Growth and Structure of
India’s Foreign Trade, the Pre and Post 1991 Period Balance of Payments Situation in India;
Public Economics-1
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 – Tiebout model, theory of club
goods; Stabilization Policy – Keynesian case of stabilization policy; Uncertainty and
expectations; Failure of inter temporal markets; Liquidity preference; Social goals; Poverty
alleviation; Provision of infrastructural facilities, removing distributional inequalities and
regional imbalances.
Role of Government in an Economy - The Allocation, Distribution and The Stabilisation
Functions; Private Goods, Public Goods, and Merit Goods; Market Failure - Imperfections,
Decreasing Costs, Externalities; Wagner’s law of increasing state activities; WisemanPeacock
hypothesis; Pure theory of public expenditure; Structure and growth of public
expenditure; Criteria for public investment; Social cost-benefit analysis – Project evaluation;
Estimation of costs, discount rate; Reforms in expenditure budgeting; Programme budgeting
and Zero base budgeting.
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.
Financial Markets, Institutions and Services
Financial system: An overview, global financial system, Indian financial system, functions of
financial system in an economy, financial services: insurance services, IRDA and its
functions, factoring and forfaiting, merchant banking, mutual funds, venture capital, microfinancial
services.
Indian financial markets: Money markets and capital markets. Recent Reforms Call Money
Market, Treasury Bills Market, Commercial Bills Market, Markets for Commercial Paper &
Certificate of Deposits, Recent Developments in Capital Markets in India, Role of SEBI,
Merchant Banking, Venture Capital.
Financial & Banking Institutions: Role, Meaning and Importance of Financial Institutions,
SIDBI, NABARD, IFCI, state finance corporations and Banks in the Emerging New
Environment of Privatization and Globalization.
Investment Trust Companies, Economics of Investment Trust Companies, Mutual Funds, A
Detailed Critical Appraisal of UTI in the Indian Financial System. NBFC: Activities and Role
of NBFC; Regulatory Framework of NBFC; Recent development.
Financial sector reforms, features of financial markets, financial repression and major
financial reforms in India, supply and loans of demand for deposits.
Applied Demand Analysis
Theory and Models of Theory; Testability of Theory and Models; Significance of Consumer
Demand; Sources, Nature, and Refinements of Consumer Demand Data; Concept of Duality
and Duality Between Direct and Indirect Utility Functions; Roy’s Identity.
Estimation and Analysis of Consumer Demand Models; Measurement of Engle Curves From
Honsehold Budget Data; Modelling of Household Composition and Size; Specification and
Estimation of Single Equation Models of Demand.
Constant Elasticities Demand Functions; Simultaneous Equation Demand Models; The
Linear Expenditure Model, The Rotterdam Model, Addilog (Direct and Indirect) Model, and
Almost Ideal Demand (AID) Model; Incorporation of Durablegoods, habit formation and
distributional effects.
Economics of Infrastructure
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; Cross subsidization – free prices,
equity and efficiency.
The structure of transport costs and location of economic activities; Demand for transport –
Models of freight and passenger demand; Model choice; Cost functions in the transport
sector; Principle of pricing; Special problems of individuals modes of transport; Inter-model
condition in the Indian situation.
Rate making in telephone utilities; Principles of decreasing costs in telephone industry –
Characteristics of postal services; Criteria for fixation of postal rates; Measurement of
standards of service in telephone and postal utilities.
Primacy of energy in the process of economic development; Factors determining demand for
energy; Effects of energy shortages; Energy conservation, renewable and nonconventional
sources of energy; Energy modeling; The search for an optimal energy policy in the Indian
context.
Bulk supply and pricing of electricity – The relative economics of thermal, hydel and nuclear
power plants – The case for a National Power Grid, financing water utilities - Urban and rural
water supply; The exploitation of National Gas; Pricing problem.
Education and economic growth; Approaches to educational planning, social demand, rate of
return and manpower balance approaches; The case for universal, free, primary education;
Structure of higher education and problems of its financing in India; Human resources and
human capital development – The issues in education policy;
International Economics-II
Economic integration: customs, unions and free trade area; trade creation, trade diversion,
theory of second best, dynamic benefits from trade unions.
International trade and economic development: importance of trade to development, export
instability and economic development, import substitution and export orientation.
Balance of Payment; The Current Account The Capital Account; Foreign exchange markets
and exchange rates: exchange rate, spot, forward rates, foreign exchange risks, hedging and
market, interest arbitrary and efficiency of foreign exchange markets; exchange rate
determination: purchasing power parity, monetary approach to balance of payment.
Flexible and fixed exchange rates, balance of payment adjustments with fixed and flexible
exchange rate, income adjustment mechanism, income determination in a closed economy
and small open economy. Absorption approach, monetary adjustments, open economy
macroeconomics: adjustment policies, The IS-LM-BP model with flexible exchange rate.
International monetary system: past, present and future, gold standard, Bretton woods,
International Monetary Fund, World Bank.
Econometrics-II
Qualitative variables as explanatory variables: estimating the shift in intercept and slope
coefficient, interpretation of dummy coefficient in log-linear model, estimating season
effects, testing for structural change; qualitative dependent variables, Linear probability
model, Logit, Probit and Tobit models.
Distributed lag models: lagged independent variables, impact multiplier, interim multiplier,
and long-run multiplier, Koyck approach, partial adjustment model, adaptive expectation
model, consequences of the presence of lagged dependent variables as regressors.
Simultaneous equation models; structural and reduced form of simultaneous equation models;
simultaneous equation bias,; identification problem; estimation procedures; indirect least
squares (ILS), instrumental variables (IV), and two stage least squares (2SLS).
Lagged dependent variable and serial correlation, tests of serial correlation, estimation
methods with lagged dependent variable as regressors; unit roots and Dickey-Fuller tests;
stationarity.
Forecasting: fitted values, ex-post, and ex-ante forecasts, evaluation of models, conditional
and un-conditional forecasts, forecasting from time trends, combining forecast, forecasting
from econometric models, forecasting from time series models.
Research Methodology
Meaning and objectives of research, meaning and formulation of hypothesis, theory, models
of a theory, testing of theories and models; Methodology versus methods of research:
research problem and selection of research problem; review of literature and its role in
selecting a research problem;
Meaning and need for research design: meaning of population, sample and sample size,
meaning, types and characteristics of sample design, random and non-random sample,
stratified and multistage random samples, systematic samples.
Methods of data collection: primary and secondary data sources, brief information about
databases of Indian economy, nature of cross section, time series and panel data,
diagrammatic and tabular presentation of data, pie chart, bar diagram, histogram, scatter
diagram, tracing of curve, one way and two way tables.
Analysis of data: measures of central tendency and dispersion, Hypothesis testing: parametric
and no-parametric tests of hypothesis; linear regression, simple, partial and multiple
correlation coefficient, rank correlation, simple and multiple regression models,
Multivariate analysis techniques: factor analysis, cluster analysis, conjoint analysis,
multidimensional scaling, discreminant analysis, Analysis of variance; Report writing.
Public Economics-II
Classical view of public debt; Compensatory aspect of debt policy; Burden of public debt;
Sources of public debt; Debt through created money; Public borrowings and price level;
Crowding out of private investment and activity; Principles of debt management and
repayment.
Objectives of fiscal policy – full employment, anti-inflation, economic growth, redistribution
of income and wealth; Interdependence of fiscal and monetary policies; Budgetary deficit and
its implications; Fiscal policy for stabilization – Automatic vs discretionary stabilization;
Alternative measures of resource mobilization and their impact on growth, distribution and
prices; Balanced budget multiplier.
Principles of multi-unit finance; Fiscal federalism in India; Vertical and horizontal
imbalances; Assignment of function and sources of revenue; Constitutional provisions;
Finance Commission; Devolution of resources and grants; Theory of grants; Resource
transfer from Union to States – Criteria for transfer of resources; Centre-State financial
relations in India; Problems of states’ resources and indebtedness; Transfer of resources from
Union and States to local bodies.
Contemporary Issues in Indian Economy
Changing structure of Indian economy, Imbalance in occupational pattern and contribution to
GDP, Determinants of acceleration in growth rate of GDP in India, Bahaviour of saving and
investment in recent years.
Stagnancy in productivity in agriculture sector and trends in its diversification; Issues of
competitiveness of Indian manufacturing sector, emergence of knowledge intensive industries
in India.
Centre-State finance relations; eleventh, twelfth and thirteenth finance commissions; other
sources of transfer; Tax revenue of the central and state governments; evaluation of Indian
tax structure; direct tax code (DTC), goods and services tax in India.
Infrastructure bottlenecks in Indian economy, impact of institutional factors on development
of Indian economy.
Recent foreign trade policy in India; pros and cons of special economic zones policy: Indian
government’s policy towards foreign capital; foreign investment inflows, foreign aid and
India’s external debt. Management of foreign exchange reserves and exchange rate; issue of
capital account convertibility; operations of multinational corporations (MNCs); meaning and
effects of globalization on Indian economy; W.T.O., Provisions and Indian economy.
Time Series Econometrics
Difference equations: Time series models, difference equations and their solutions, solving
homogeneous difference equations, particular solutions for deterministic process, the method
of undetermined coefficients, lag operators.
Stationary time series models: stochastic difference equation models, ARMA models,
stationarity, the autocorrelation function, the partial autocorrelation function, sample
autocorrelations of stationary series, Box-Jenkins model selection, and seasonality.
Modeling Economic Time Series: Trends and Volatility: ARCH process, GARCH model,
ARCH-M model; Testing for Trends and Unit Roots: Unit root processes, Dicky-Fuller tests,
Augmented Dicky-Fuller test, Phillips Perron test.
Multi-equation Time Series Models: Intervention analysis, Transfer function models,
Introduction to VAR model, estimation and identification, the Impulse response function,
structural VAR.
Co-integration and Error Correction Models: Testing for co-integration, The Engle Granger
methodology, Johansen methodology, ARDL bounds-testing approach.
Applied Production Analysis
Theory of production versus models of production, Testability of theory and models:
production functions as models of production theory; concepts of duality and self duality,
Sheppard lemma, nested and non nested forms.
Flexibility versus well behavedness of production and cost functions: tradeoff between
generality and well behavedness; duality between production and cost functions: choice
between production and cost function, brief discussion on the sources, nature, and refinement
of production data relating to Indian economy.
Applied analysis of production and cost functions: Cobb-Douglas (C-D), constant elasticity
of substitution (CSE), variable elasticity of substitution (VES), and Leontief production and
cost functions, applied analysis of flexible forms of production and cost functions, trans-log
production and cost functions; generalized Leontief and generalized Cobb-Douglas
production function, significance of applied production analysis.
Suggested Readings
Micro-Economic Theory-I & II
Jehle & Renne, Advanced Microeconomic Theory, Pearson Education, India.
Mas-Colell, Andreu, Michael D. Whinston and Jerry R. Green (1995), Microeconomic
Theory, OUP, New York.
Salvatore, Dominick, Principles of Micro-Economics, Oxford University Press, 2009.
Varian, Hall R. (1990), Intermediate Microeconomics, W.W. Norton & Company, New York,
London.
Varian, Hall R. (1992), Microeconomic Analysis (Third Edition), W.W. Norton & Company,
New York, London.
Macro-Economic Theory-I & II
Begg, D.K.H. (1982), The Rational Expectation Revolution in Macro-economics, Oxford,
Allan.
Davidson, Paul (1994), Post Keynesian Macroeconomic Theory, Aldershot, UK: Edward
Elgar.
Dornbusch, R. and S. Fischer, Macroeconomics, McGraw-Hill.
Jha, R. (1991) – Contemporary Macroeconomic Theory and Policy; (Wiley Eastern)
Levacic, R. and A. Rebman (1986) – Macroeconomics; (2nd Ed., Macmillan).
Mankiw, N.G. and D. Romer (eds.) (1991) – New Keynesian Economics; (MIT, Cambridge).
Mankiw, N.G., Macroeconomics, Macmillan.
Rangarajan, C., B.H. Dholakia, Prinicples of Macroeconomics.
Romer, David (1996), Advanced Macroeconomics, New York: McGraw-Hill.
Erol D’Souza, “Macroeconomics, Pearson Education.
Economic Growth and Development-I & II
Aggarwal and Singh (1958): The Economics of Underdevelopment. Oxford University Press,
New Delhi.
Arrow, K.J. and Anthony C. Fisher, “Environmental Preservation, Uncertainty and
Irreversibility.” Quarterly Journal of Economics.
Basu, Kaushik : Analytical Development Economics. The Less Developed Economy
Revisited, OUP.
Chakarvarti, S. (1981): Development Planning: The Indian Experience. Oxford University
Press, New Delhi.
Chakravarti, S. (1982): Alternative Approaches to a Theory of Economic Growth, Oxford
University Press, New Delhi.
Chenery, H. et al. (1987): Handbook of Development Economic V 01.1 and II. NorthHolland.
Ghatak, S. : Introduction to Development Economics, Rutledge.
Haq, M.: Reflection on Human Development, Oxford University Press, New Delhi.
Jones, H.G., An Introduction to Modern Theories of Economic Growth, McGraw Hill Book
Company.
Krutilla John, V. (1967), “Conservation Reconsidered,” AER, Vol. 57.
Meier and Rauch: Leading Issues in Economic Development (8th edition), OUP.
Meier, G.M. (1971): Leading Issues in Economic Development. Oxford University Press,
New Delhi.
Myrdal, G. (1968): Asian-Drama: An Enquiry into the Poverty of Nations, Pelican, London.
Ray, D.: Development Economics, OUP.
Sen, A.K. (1970): Growth Economics, Penguin.
Sen, S.K. (1984): Resources, Values and Development, Basil Blackwell. London.
Thirawall, A. (1978): Growth and Development, Macmillan, London.
Todaro, M.P. and Smith, S.C.: Economic Development (8th Edition), Pearson.
Mathematics for Economic Analysis-I & II
Chiang, Alpha, C : Fundamental Methods of Mathematical Economics, 4th Edition, MC Grow
Hill, 2008.
Mukherjee B and V Pandit, Mathematical Methods for Economic Analysis Allied Publishers
Pvt Ltd, 1982.
Knut Sydsaeter and Peter J. Hammond, Mathematics for Economic Analysis, Prentice Hall.
Mathematical Economics-I & II
Peter N. Hess, Using Mathematics in Economic Analysis, Prentice Hall.
Akira Takayama, “Mathematical Economics “, Cambridge University Press, 2nd Edition.
Henderson and Quandant, “Microeconomic Theory: A Mathematical Approach”
R. G. D. Allen, Mathematical Economics, 1956.
Chiang, Alpha, C : Fundamental Methods of Mathematical Economics, 4th Edition, MC Grow
Hill, 2008.
Statistical Methods
Clarke, G.M. and Cooke D. (1992), A Basic Course in Statistics, 3rd edition, Arnold.
Croxton, Crowden and Klein (1971), Applied General Statistics, Prentice Hall of India, New
Delhi.
Freud, J.E. and Walpole, R.E. (1987), Mathematical Statistics, Prentice-Hall Inc.
Freund, J.E. (1999), Mathematical Statistics, 5th edition, Prentice-Hall International.
Gupta, S.C. (1993), Fundamentals of Applied Statistics, S. Chand and Sons, New Delhi.
Hogg, R.V. and Craig, A.T. “Introduction to Mathematical Statistics”, Prentice-Hall
International, Inc. Engle Wod Cliff, N.J., Fifth Edition, 1995.
Nagar, A.L. and Das, R.K., Basic Statistics, Oxford University Press.
Rees, D.G. (1987), Foundation of Statistics, Chapman & Hall.
Rice, J.A. (1995), Mathematical Statistics and Data Analysis, 2nd edition, Duxbury Press.
International Economics-I & II
Bhagwati, J. (Ed) (1981), International Trade, Selected Readings, Cambridge University
Press, Massachusetts.
Kindle berger, C.P. (1973), International Economics, R.D. Irwin, Homewood.
King, P.G.(1995), International Economics and International Economics Policy A Reader,
MC Grow Hill International, Singapore
Salvatore, D. (1997), International Economics, Prentice Hall, N.J. New York.
Soderston, B.O. (1991), International Economics, Macmillan Press Ltd, London.
Econometrics-I & II
Berndt, E.R. The Practice of Econometrics. Reading, Mass: Addison-Wesley, 1991
Gujrati, Damodar, N. (1995), Basic Econometrics, Mc Graw Hill, New Delhi
Intriligator, M., R.G. Bodkin, and C. Hsiaq, Econometric Models, Techniques and
Applications. Prentice Hall, 1996
Johnson, J. Econometric Methods. New York: Mc Graw-Hill, 1984
Kmenta, J. Elements of Econometrics. New York: Macmillan, 1986
Krishna, K.L. (Ed), Econometric Application in India Oxford University Press, New Delhi
(1997).
Lott, W., and S.C. Ray. Applied Econometrics: Problems and Data Sets. Fort Worth, Tex:
The Dryden Press, 1992
Maddala, G.S. Econometrics. Mc Graw-Hill, Inc. (1977)
Ramanathan, Ramu, Introductory Econometrics with Applications. South Western: Thomson,
2002.
Indian Economy
Ajit Singh (2005), “Manufacturing Services, Jobless and Informal Economy: Will Service be
new engine of Growth in India?” Paper presented in Seminar at ILO, New Delhi, Feb 16.
Bimal Jalan, India’s Economic Policy – Preparing for the Twenty First Century, Viking, New
Delhi-1996
Brahmananda, P.R. and V.R. Panchmukhi (eds.), The Development Process of the Indian
Economy Himalaya Publishing House, Bombay, 1987.
Dalip S. Swamy, The Political Economy of Industrialisation, Sage Publications, Delhi, 1994.
Dasgupta, B., Globalisation – India’s Adjustment Experience, Sage Publications, New Delhi,
2005
Ghosh, D.N., Banking Policy in India, Allied Publishers, Bombay, 1979.
Government of India (2010-11) “Economic Survey”.
Indian Institute of Applied Manpower (2004), “Manpower Profile in India: Yearbook”.
Kaushik Basu (ed.) The Oxford Companion to Economics in India; Oxford University Press,
New Delhi, 2007
Mahendra Dev, S. Inclusive Growth in India, Oxford University Press, New Delhi, 2008
Mishra, S.K. and V. K. Puri, Indian Economy (2009) Himalaya Publishing House
Montek S. Ahluwalia, Y. V. Reddy and S.S., Tarapore (ed) Macro Economics and Monetary
Policy, New Delhi, 2002
Rangarajan, C., Indian Economy – Essays on Money and Finance, UBS Publishers Ltd., New
Delhi, 1998
Sebastian, M., Rakesh Basant, Keshab Das, K. Ramchandran and A. Koshsy, The Growth
and Transformation of Small Firms in India, Oxford University Press, New Delhi, 2001
Suri, K.B. (ed), Small-Scale Enterprises in Indus Trial Development: The Indian Experience,
Sage Publications, New Delhi, 1988
Agriculture Economics
“Contributions to Indian Economic Analyses : A surceey, “ AER Supplement (September).
Amartya sen (1975) Employment, Technolgy and Development, Oxford University Press
Bhagwati, J. and S., and S. Chabravary (1969),
Meier, Gerald M and James E. Rauch. Leading Issues in Economic Development, Oxford
University Press, 2008
Sadhu & Singh (Latest Edition), Fundamentals of Agricultural Economics, Himalaya
Publishing House.
Stiglitz, Joseph E, “Incentives and Risk sharing in Agriculture,” Review of Economic
Studies, vol. 41, 1974, 209-56.
Financial Markets, Institutions and Services
Erol D’Souza, “Macroeconomics, Pearson Education.
M.Y. Khan, “Indian Financial System”, Tata McGraw Hill.
Peter Howells and Keith Bain “Financial Markets and Institutions”, Prentice Hall.
L.M. Bhole (1999), Financial Institutions and Markets, Tata McGraw Hill
Applied Production Analysis
Berndt , E.R. , M.N. Darrough, W.E. Diewert “ Flexible Functional Forms and Expendtive
Distribution: And Application to Canadian Consumer Demand Functions”, International
Economic Review, Oct, 1977,18,651-75.
Berndt, E.R., and David, o.wood, Technology, Prices nd the Derived Demand for Energy
Review of Economics and statistics, vol LVII, No 3rd Aug,1973), PP.259-268
Berndt, E.R., and L.R. Christensen, The Translog Function and the Substitution of
Equipment, Structures, and Labour in U.S. Manufacturing 1929-68, Journal of Econometric, I
, 1973, 81-114
Caves, D.W. , and L.R. Christensen, Global Properties of Flexible Functional Form”, the
A.E.R. (June 1960), PP. 422-432
Diewert, W.E. An Application of the shepherd Duality Theorem; A Generalised Leontief
Production Function; Journal of Political Economy, 79, May-June 1971, 481-507
Diewiert W.E., ‘ Separability and Generalisation of the Cobb- Douglas cost, Production and
Indirect Utility Functions, Technical Repost 86, IMSS, Stunford University (Jan, 1973)
Krishna, K.L. (Ed) Econometric Applications in India Oxford University Press, New Delhi
1997.
Public Economics
Goode, R.(1986), Government Finance in Developing Countries, TMH, New Delhi.
Jha. R.(1998), Modern Public Economics, Routledge, London.
Musgrave, R.A. and P.B.Musgrage (1976), Public Finance in Theory and Practice, McGraw
Hill,
Kogakusha, Tokyo.
Atkinson, A.B. and J.E. Siglitz (1980), Lectures on Public Economics,TMH, New York.
Herber, B.P. (1967), Modern Public Finance, Richard D.Irwin, Homewood.
Joseph E. Stiglitz, “Economics of the Public Sector: Third Edition”
Research Methodology
C.R. Kothari, Research Methodology, Wiley Eastern Ltd., New Delhi, 2002.
Don. E. Ethridge, “Research Methodology in Applied Economics”.
Joseph F. Hair, William C. Black, Barry J. Babin and Rolph E. Anderson, “Multivariate
Analysis.
W.G. Cochran, Sampling Techniques, John Wiley, New York, 1963.
W.J. Goode and P.K. Hatt, Methods in Social Research, McGraw Hill, New York, 1952.
T.S. Wilkinson and P.L. Bhandarkar, Methodology and Techniques of Social Research,
Himalaya Publishing House, Bombay, 1979.
Economics of Infrastructure
National Council of Applied Economic Research, 1996, India Infrastructure Report : Policy
Implications for Growth and Welfare, New Delhi.
Parikh, K.S. (1999), India Development Report 1999-2000, Oxford, New Delhi.
Economics of Infrastructure (1976), Vol.VI, ICSSR, ICSSR.
Crew, M.A. and P.R. Kleindorfer (1979), Public Utility Economics, MacMillan, New York.
Health Economics
Paul J. Feldstein, Economics of Healthcare, Cengage Learning, New Delhi.
Santerre, Rexford E. and Stephen P. Nuen; Health Economics: Theories, Insights, and
Industry Studies.
Henderson, James W. Health Economics and Policy. Thomson-South-Western. 3rd Edition.
Folland, S., Goodman, A. C. and M. Stano. The Economics of Health and Health Care.
Pearson Education International, 5/E, 2007.
Donaldson, C. and K. Gerard. Economics of Health Care Financing, The Visible Hand.
Palgrave Macmillan, 2/E, 2004. Chapters 3, 6-8.
Peter Zweifel · Friedrich Breyer · Mathias Kifmann, “Health Economics”, Springer
Dordrecht Heidelberg London New York
Labour Economics:
Campbell R. McConnell, Stanley L. Brue, and David A. Macpherson's “Contemporary Labor
Economics, 8th edition: Student Edition
George J. Borjas, “Labor Economics” McGraw-Hill, 1996; 2nd Edition, 2000, 3rd edition,
2005.
Pierre Cahuc and Andre Zylberberg, “Labor Economics”, The MIT Press.
Industrial Economics:
Barthwal, R.R. (1985) Industrial Economics, Wiley Eastern Ltd., New Delhi.
Divine, P.J. and R.M. Jones etal (1976), An Introduction to Industrial Economics, George
Allen and Unwin Ltd, London.
Singh, A. And A.N. Sadhu (1988), Industrial Economics, Himalya, Publishing House,
Bombay kuchal, S.C.(1980), Industrial Economy of India (5th Edition), chaitanya Publishing
House Allabad.
Hay, D. And D.J. Morris (1976), Industrial Economics: theory and Evidence University
Press, New Delhi.
Ahluwalia, I.J. (1985), Industrial growth in India oxford University Press, New Delhi.
Applied Demand Analysis
Brown, A. And Angus Deaton, (1972), Surveys in “Applied Economics: Models in Consumer
Behaviour The Economic Journal, Vol. 82, N0. 328 PP. 1145-1236
Deaton, A and J. Muellbauer (1980), “An Almost Ideal Demand System”, American
Economic Review, Vol. 70, PP. 312-326
Deation A.S. (1974), “ The Analysis of Consumer Demand in U.K. 1900-1970”, Economic
Journal, Vol. 84, PP. 330-348
Murty K.N. (1980). “ Consumer Behaviour in India; An Application of the Rotterdam
Demand System,” Economic Review, Vol. 14 PP. 221-35
Ray, Ranjan (1980),’ Analysis of a Time Series of House hold Expenditure Survey for India,’
Review of Economics and Statistics, No. PP. 595-602
Krishna, K. L. (Ed). Econometric Applications in India, Oxford University Press. New Delhi,
1997.
Contemporary Issues in Indian Economy:
Dhirendra Nath Konar, “Contemporary Issues of Indian Economy”.
Planning Commission (2006), “Towards Faster and More Inclusive Growth: An Approach to
the 11th Five Year Plan”.
Finance Commission (2010), “Thirteenth Finance Commission Report”.
Uma Kapila, India's Economic Development Since 1947 (3rd Edition)
Reserve Bank of India, Handbook of Statistics on Indian Economy (latest Issue)
Government of India, Ministry of Finance, “Economic Survey 2010-11”.
Government of India, Planning Commission, “Union Budget 2011-12”.
Government of India, Minister of Commerce, Department of Commerce, “India’s Foreign
Trade Policy: 2009-2014”.
Government of India, Department of Industrial Policy and Promotion, SIA Newsletters, FDI
Factsheets (Various Issues).
Time Series Econometrics
Walter Enders, “Applied Econometric Time Series”, John Wiley and Sons.
Kerry Patterson, “An Introduction to Applied Econometrics: A Time Series Approach”,
Palgrave, MacMillan.
Department of Economics
Central University of Haryana,
Mahendergarh
Click here to download Syllabus
For more details click here
(Finalized By School Board in 2011)
The Master of Arts (M.A.) in Economics is a two years full time programme. The programme
is composed of four semesters I, II, III and IV. Following is the semester wise distribution of
study courses:
Semester –I
Paper Nomenclature Course Code Credit
Core Courses
Microeconomic Theory-I SHS ECO 01 101 C 3104 4
Macroeconomic Theory-I SHS ECO 01 102 C 3104 4
Economic Growth and Development-I SHS ECO 01 103 C 3104 4
Mathematics for Economic Analysis SHS ECO 01 104 C 2103 3
Elective Courses
Agriculture Economics SHS ECO 01 101 E 2103 3
Labor Economics SHS ECO 01 102 E 2103 3
Mathematical Economics-I SHS ECO 01 103 E 2103 3
Electives to be opted from Courses Offered by:
Management Department 3
Education Department 3
Law Department 3
Total Credit 33
Semester-II
Paper Nomenclature Course Code Credit
Core Courses
Microeconomic Theory-II SHS ECO 01 201 C 3104 4
Macroeconomic Theory-II SHS ECO 01 202 C 3104 4
Economic Growth and Development-II SHS ECO 01 203 C 3104 4
Statistical Methods SHS ECO 01 204 C 2103 3
Elective Courses
Health Economics SHS ECO 01 201 E 2103 3
Industrial Economics SHS ECO 01 202 E 2103 3
Mathematical Economics-II SHS ECO 01 203 E 2103 3
Electives to be opted from Courses Offered by:
Management Department 3
Education Department 3
Law Department 3
Total Credit 33
Semester-III
Paper Nomenclature Course Code Credit
Core Courses
International Economics-I SHS ECO 01 301 C 3104 4
Econometrics-I SHS ECO 01 302 C 3104 4
Indian Economy SHS ECO 01 303 C 3104 4
Public Economics-I SHS ECO 01 304 C 2103 3
Elective Courses
Financial Markets, Institutions and Services SHS ECO 01 301 E 2103 3
Applied Demand Analysis SHS ECO 01 302 E 2103 3
Economics of Infrastructure SHS ECO 01 303 E 2103 3
Electives to be opted from Courses Offered by:
Management Department 3
Education Department 3
Law Department 3
Total Credit 33
Semester-IV
Paper Nomenclature Course Code Credit
Core Papers
International Economics-II SHS ECO 01 401 C 3104 4
Econometrics-II SHS ECO 01 402 C 3104 4
Research Methodology SHS ECO 01 403 C 3104 4
Public Economics-II SHS ECO 01 404 C 2103 3
Elective Paper
Contemporary Issues in Indian Economy SHS ECO 01 401 E 2103 3
Time Series Econometrics SHS ECO 01 402 E 2103 3
Applied Production Analysis SHS ECO 01 403 E 2103 3
Electives to be opted from Courses Offered by:
Management Department 3
Education Department 3
Law Department 3
Total Credit 33
Course Code: Example
SHS ECO 01201C/E 3104: SHS (School of Arts, Humanities and Social Sciences), ECO
(Economics Department), 01(Programme), 2 (Semester), 01 (Course), C/E (Core/ Elective), 3
(Lecture), 1 (Tutorial), 0 (Practical), 4 (Total Credits).
Microeconomic Theory-I
Nature and scope of microeconomics; the circular flow of economic activity, positive and
normative economics, theorizing and modeling; theory of consumer behavior: cardinal utility,
indifference curve, revealed preference theory, derivation of consumer demand, Slutsky’s
theorem (substitution and income effect); market demand; elasticities of demand, relation
between revenue and price elasticity, constant elasticity demand function; consumer surplus,
indirect utility function.
Consumer behaviour under risk and uncertainty: concept of certainty, risk, and uncertainty,
measurement of risk, attitudes towards risk, risk aversion, risk loving and risk neutral, risk
aversion and indifference curves, reducing risk and uncertainty, insurance and gambling.
Theory of production: diminishing law of variable proportions, law of returns to scale,
marginal rate of technical substitution, elasticity of substitution, factor intensity, efficiency of
production, multi product firm, production possibility curve: properties and empirical
significance of Cobb-Douglas(C-D), constant elasticity of substitution (CES) and Trans-log
(TL) production functions; Traditional and modern theories of cost, total, fixed and variable
costs, short run and long run cost, relation between average and marginal costs, `envelope’
and L-shaped curves.
Theory of firm: price and output determination under perfect competition, short run and long
run equilibrium of the firm and industry, supply curve, efficiency implications of perfect
competition, determination of price and output under monopoly; short run and long run
equilibrium, price discrimination, regulated monopoly and monopoly control.
Macroeconomic Theory-I
Introduction, measurement of national income: product approach, income approach,
expenditure approach; measures of aggregate income: concept of gross, net, national,
domestic, market prices and factor costs, concept of value added; methodology of estimation
of national income in India; GDP deflator, consumer and producer price index.
Classical macroeconomics; Say’s law, equilibrium output and employment, New classical
models of output determination, Keynes model of income determination,
Consumption function: average and marginal propensity to consume, consumption
hypothesis; permanent income hypothesis, relative income hypothesis, life cycle hypothesis.
Savings and investment; business fixed investment, residential investment, inventory
investment, marginal efficiency of investment (MEI), marginal efficiency of capital (MEC),
saving and investment functions, determination of interest rates, multiplier concept,
acceleration principle and its implications, business cycles; meaning and phases of the
business cycle, interaction of multiplier and accelerator; Business cycles; Samuelson model,
Hicks model, Keynesian model and Kaldor model.
Introduction to economic fluctuations: time horizons in macroeconomics, aggregate demand,
aggregate supply, stabilization policy.
Economic Growth and Development-I
Meaning and measurement of economic development; economic growth and development,
economic development and welfare, meaning of economic under development, characteristic
of under developed economies, vicious circle of poverty; measurement of development;
conventional, human development index, and quality of life indices, concept of sustainable
development.
The big push theory, critical minimum effort thesis, stages of economic growth, concept of
take off into self-sustained growth, balanced versus unbalanced growth, balanced growth,
unbalanced growth, Malthus Theory of population, factors in economic development,
theories of development: Lewis model, Renis-Fei model.
Neo-classical model of economic growth; short run versus long run, three determinant of
growth, basic growth equation, conditions for steady state growth, stability of steady state
growth, sources of growth, technical progress and neutrality of technical change.
Economic development and planning models: meaning of economic planning, planning
versus price mechanism, main elements of plan and plan models; Harod-Domar model,
Mahalanobis model and development plans in India.
Mathematics for Economic Analysis
Concepts of sets subset and bounded set, set operations, convex set, identification of convex
set in budget line statement, production possibility frontier, indifference and isoquant curves,
Cartesian product, relations and functions, idea of polynomial, exponential, logarithmic and
trigonometric functions; Solution of linear and quadratic equations; limit and continuity of
functions (single variable);
Concept of a derivative and rules of differentiation: monotonicity, concavity and convexity of
functions of a single variable; necessary and sufficient conditions for a maximum and
minimum: applications to economics, total to marginal magnitudes, elasticities.
Idea of integration: definite and indefinite integral, rules of integration, applications in
economics, relation between marginal and total magnitudes, relations between cost curves,
consumer surplus.
Definitions of vector and matrix: addition and multiplication of matrices, transpose and
inverse of a matrix, minors and co-factors of a matrix, determinant of a matrix, rank of a
matrix, simultaneous system of equations, Cramer’s rule, solution of homogeneous and non
homogeneous system of equations; signs of quadratic forms with and without constraints,
positive definite, negative definite, positive semi definite, negative semi- definite.
Functions of several variables: production functions, utility functions, cost functions; partial
and total derivatives; implicit functions and their derivatives. Homogeneous functions;
Euler’s theorem; degrees of homogeneity of production functions, cost functions, demand,
functions and their economic interpretation,
Necessary and sufficient conditions for stationary values without constraints; necessary and
sufficient conditions for stationary values with linear constraints- the Lagrange method;
constrained maximization of utility.
Difference equation: solutions of linear first and second order difference equations with
constant coefficients and constant terms.
Agriculture Economics
Nature and scope of agricultural economics; economic development with unlimited supplies
of labour; Lewis-Fei-Ranis model; Lewis versus the Harris-Todaro view of underemployment
in LDCs, wage spillover and unemployment in a wage- gap economy; measurement problems
of surplus labour and disguised unemployment; theory of agricultural production, three stages
of production function.
Agricultural labour force and productivity: farm size and productivity, supply functions and
price responsiveness, contractual arrangements, employment and wages in rural markets;
interdependence between agricultural and industry; terms of trade between agriculture and
industry.
Rural credit markets and institutions in developing countries; rural infrastructure prospects
and strategies for land reforms; some theoretical aspects of agricultural policies; agricultural
diversification, food processing, and standardisation.
Agricultural development strategies: induced technical and institutional change, green
revolution; microeconomics of the rural sector; the new development economics; risk and
uncertainty in agriculture, environment and agricultural a development; WTO and
agriculture.
Labour Economics
Labour - Its Characteristics; Role of Labour in Economic Development - W.A. Lewis and
Ranis Fie; Mobility and productivity of labour.
Supply of Labour: Static Labor-Leisure Choice, Effects of Social Programs and Income
Taxes, The Life-Cycle Model, Investments in Human Capital, Collective Models of
Household Labor Supply, Occupational Choice; Demand of Labour: Static Cost, Profit and
Labor Demand Functions, Elasticity of Derived Demand: the Hicks-Marshall
Rules,Adjustment Costs and Dynamic Labor Demand; Equilibrium in Labour Market:
Compensating Differences -- Adam Smith, Efficiency Wages, Segmented Labor Markets,
Migration.
Employment and Development Relationship - Unemployment: Concept, Types, and
Measurement, particularly in India; Public Sector and Employment in Agricultural Sector;
Analysis of Educated Unemployment; Employment Policy in Five Year Plans and its
Evaluation.
Classical, Neo-classical and Bargaining Theories of Wage Determination; Concepts of
Minimum Wage, Living Wage and Fair Wage in Theory and Practice; Discrimination in
Labour Markets; Productivity and Wage Relationship; Analysis of Rigidity in Labour
Markets; National Wage Policy; Wages and Wage Boards in India; Bonus System and Profit
Sharing.
Theories of Origin and Growth of Labour Movement - Growth, Pattern and Structure of
Labour Unions in India, Achievements and Failures of Labour Unions;
Industrial Relations - Industrial Disputes and industrial Peace; Causes of industrial Disputes
and their Settlement and Prevention Mechanism.
Special Problems of Labour: Child Labour, Female Labour, Discrimination and Gender Bias
in Treatment of Labour; Labour Market Reforms in India - Second National Commission on
Labour; Globalisation and Labour Markets.
Mathematical Economics-I
Introduction: The role of theory, Microeconomics, The role of mathematics.
Theory of consumer behaviour: basic concepts, maximization of utility, demand functions,
income and leisure, substitution and income effects, generalization of n variables.
Topics in consumer behaviour: A linear expenditure system, separate and additive utility
function, homogeneous and homothetic utility functions, indirect utility functions and duality
in consumption, theory of revealed preferences, derivation of demand functions from
necessary conditions’ and the Slutsky equation from the sufficient condition, interpretation of
Lagrangian multiplier, consumer surplus, Problem of choice in situations involving risk,
behaviour under uncertainty.
The Theory of firm: basic concepts, optimizing behaviour, input demands, cost functions,
joint production, profit maximization and substitution effect.
Topics in theory of firm: homogeneous production function, CES production functions, C-D
production function, the Kuhn-Trucker theorem, duality in production, production under
uncertainty, linear production functions, linear programming.
Microeconomic Theory-II
Monopolistic competition; price and output decisions under monopolistic competition,
equilibrium with product differentiation and selling costs, excess capacity under monopolistic
and imperfect competition, criticism of monopolistic competition; non-collusive oligopoly,
Cournot, Bertrand, Chamberlin, and kinked demand model, collusive and non-collusive
oligopoly behavior; cartels and mergers, price leadership and basing point price system.
A critique of Neoclassical theory of the firm; Alternative theories of the firm: Baumol’s sales
revenue maximization model, Williamson model of managerial discretion, Marris model of
managerial enterprise, Bain’s limit pricing theory, the behavioral model of Cyert and March.
Neoclassical theory of factor pricing: marginal productivity theory, product exhaustion
theorem, elasticity of technical substitution, technical progress and factor shares, theory of
distribution in imperfect product and factor markets, determination of rent, wages, interest
and profits.
General equilibrium theory: Walras general equilibrium model, graphical illustration of
existence, uniqueness and stability of equilibrium; Welfare economics: criteria of social
welfare, the Pareto-optimality criterion, Kaldor Hicks compensation criterion; Bergson’s
social welfare function, criterion Arrow’s impossibility theorem; Game theory: zero-sum and
non-zero-sum game, pure and mixed strategy, dominant strategy, Nash equilibrium.
Macroeconomic Theory-II
Money: definition, components of money stock, demand for money, transaction motive,
precautionary motive, speculative motive, quantity theory of demand for money, Cambridge
quantity theory, Baumol and Tobin demand for money, inflation and interest rates, nominal
interest rate and demand for money, Keynesian liquidity approach, determinants of money
stock, money multiplier.
Goods market and IS curve, money market and LM curve, equilibrium, explaining
fluctuations with the IS-LM model, IS-LM – fiscal and monetary policy. Aggregate demand
in the open economy, Mundell-fleming model, exchange rate: determination, flexible and
fixed exchange rate system, monitory and fiscal policy in flexible and fixed exchange rate
system.
Inflation and its effects; effect on distribution of income and wealth, effect on output,
employment and growth, causes and types of inflation; demand pull inflation, cost push
inflation, structural inflation, policies to control inflation, tradeoff between inflation and
unemployment, Philips curve: adaptive and rational expectations.
New macro economics; Lucas imperfect information, model, new Keynesian model of price
stickness, rational expectations, random walk of GDP.
Central banking and monetary controls; functions of a central bank; monetary policy:
objectives of monetary policy, policy making process, implications of targeting monetary
aggregates and interest rate.
Economic Growth and Development-II
Role of education, knowledge, and governance in economic development; trade and
development; trade as engine of growth; Perbisch, Singer and Myrdal views, gains from
trade and less developed countries (LDC), role of foreign direct investment(FDI) and
multinational corporation (MNC) in economic development.
Concept and measures of poverty; head count ratio, income gap ratio, Sen’s poverty index;
concept and measures of inequality; Lorenz curve and Ginnis’ coefficient; growth and new
industrial policy; privatization and disinvestments; labour market reforms; state and state
failures; issues of good governance.
Economic development and environmental degradation: environmental Kuznet’s curve,
preservation and irreversibility of environmental change, Krutilla-fisher equation, energy and
development.
Solow model: Basic Solow model, technology and Solow model, Solow model with human
capital; Economics of ideas; Economic growth: Romer model,
Endogenous growth: mechanics of endogenous growth, the deeper economics of endogenous
growth, convergence, population growth and Malthus, Lessons from Asian tigers, natural
resources as limits to growth, neoclassical versus endogenous growth theory.
Statistical Methods
Data and date types, representation of data; Measures of central tendency from grouped and
ungrouped data: arithmetic mean, median, mode, geometric mean, and harmonic mean,
measures of dispersion from ungrouped data, range, mean deviation, quartile deviation,
standard deviation and coefficient of variation.
Measures of Skewness and Kurtosis: moments about origin, arithmetic mean, and an arbitrary
value; concepts and computation of Skewness and Kurtosis.
Correlation and regression: method of least squares, estimation of parameters of a regression
equation; simple, partial, and multiple correlation coefficients.
Probability and probability distribution: concepts, addition and multiplication rules of
probability, mathematical expectation; theoretical distributions: binomial, normal, and
Poisson distribution.
Sampling and sampling distribution: sample and population, sampling and non sampling
errors, sampling techniques.
Estimation and hypothesis testing: point and interval estimation, properties of estimator;
consistency, sufficiency, unbiasedness, and efficiency, null and alternative hypotheses,
degrees of freedom, Type-I and Type-II errors; level of significance; small and large sample
tests; t,
2
, F and Z.
Health Economics
Introduction: the relevance of economics in health and medical care
The Supply and Demand for Health and Medical Care: Supply of Health and Medical Care,
The production of health, The production, cost and technology of medical care; Demand for
Health and Medical care: Health as an investment good, Demand for Medical care; The
demand for health insurance; The market for health insurance: its performance and structure
The role of government in Health and medical care: Government intervention in medical
care, market imperfections, market failure, redistribution using in-kind subsidies; Health care
reform
Health dimensions of development - Determinants of health – Poverty, malnutrition, illiteracy
and lack of information, Economic dimensions of health care –Financing of health care and
resource constraints - Inequalities in health – Class and gender perspectives; Institutional
issues in health care delivery.
Industrial Economics
Concept and organisation of firm ownership, control and objectives of a firm. Theories of
Industrial Location; Weber and Sargent florence, Factors Affecting Location, Market
Structure; Seller’s Concentration, Product Differentiation, Entry and Exit Conditicons,
Economies of Scale, Market Structure and Profitability. Market Structure and Innovation.
Product-Pricing Theories and Evidence. Inuestment Expenditure and Methods of Evaluating
Investment Expenditure; Theories and Empirical Evidence on Mergers and Acquisitions (M
& As), and Industrial Diversification. Growth and constraints on the Growth of the Firm,
Concepts and Measurement of Productivity, Efficiency, and Capacity Utilisation.
Pattern of Industrialization; Public and Private, Large and Small Industries. Cost Benefit
Analysis; Net Present Value (NPV); Internal Rate of Return (IRR); MNC and Transfer of
Technology; Foreign Direct Investment (FDI) and Technology, Industrial Labour Problems,
Reforms, Liberalisation, Disinvestment, Privatisation and Social Security Consideration.
Industrial finance; Owned, External, and other components of funds. Pole, nature, volume,
and types of institutional finance; IDBI, IFCI, SFCs, SIDC, Commercial banks, Financial
statements; balance sheet, profit and loss account, assessment of financial soundness, and
ratio analysis. Development of small scale and cottage industries in Inida.
Mathematical Economics-II
Market Equilibrium: Assumptions of demand function, demand functions, supply functions,
commodity market equilibrium; Monopoly, monopsony & monopolistic competition:
monopoly basic theory, monopoly price discrimination, monopoly applications, monopolistic
competition.
Welfare economics: Pareto optimality, efficiency of perfect competition, external effect in
consumption and production function, taxes and subsidies, social welfare functions, theory of
second best.
Applications to Harrod-Domar one sector model, Solow model, Endogenous growth model:
AK and Lucas model; Cobweb model and the dynamic multiplier, Samuelson multiplier
acceleration interaction model, IS and LM curves.
Leontief’s input-output models (closed and open), Hawkin-Simon condition, price solution
for Leontief model; Elementary idea of game theory: zero sum and non zero sum game, pure
and mixed strategy, dominating strategy, saddle point solution of a game, a duopoly game.
International Economics-I
International economics: introduction, international trade and Nation’s standard of living,
current international economic problems; Trade theories: concept of international trade, basis
for and gains from trade, trade based on Absolute Advantages, Comparative advantages,
Comparative advantages and opportunity cost; standard theory of trade: production frontier
with increasing costs, community indifference curve, equilibrium in isolation.
Demand and supply, offer curves and terms of trade: Equilibrium relative commodity price
with trade - a partial equilibrium analysis, general equilibrium analysis, offer curves, terms of
trade.
Factor endowments and Hecksher Ohlin Theory: factor intensity, factor abundance, factor
price equalization, and income distribution, Stopler Samuelson theorem, Leontiff paradox;
Modern trade theory: economies of scale, imperfect competition, product differentiation.
International Trade Policy: Trade Restrictions; tariffs, partial equilibrium analysis of a tariff,
theory of tariff structure, general equilibrium analysis of tariff in small country and large
country, optimum tariff; non-tariff barriers: import quotas, other non-tariff barriers and new
protectionism, political economy of protectionism, Uruguay round and outstanding trade
problems.
Econometrics-I
Introduction: Broad classification of economic relations, stochastic and non stochastic
relations, econometrics versus mathematical economics, econometrics versus statistics,
concepts of econometric and mathematical models and their essential ingredients, functions
of econometrics, essential steps of an empirical study.
The simple linear regression model: ordinary least squares (OLS) estimators and their
properties, goodness of fit and tests of hypotheses, effect of changing scale and units of
measurement of variables.
Multiple linear regression model: least squares estimators and their properties, coefficient of
determination (R2) and adjusted coefficient of determination (R2
) as measures of goodness of
fit, commonly used functional forms, their choice and interpretation of coefficients, testing
of hypotheses, testing individual coefficients, testing several coefficients jointly, testing
linear combination of coefficients, computing R2
, R2
and F-statistic when there is no intercept
term, effect of omitting intercept term, effect of inclusion of irrelevant and exclusion of
relevant variable in the model.
OLS assumption violations: Multi-collinearity, heteroscedasticity, and auto-correlation,
detecting the problems, their consequences and solutions.
Indian Economy
Characterization of Indian Economy as a Developing Economy, Output of the economy and
its composition; Rationale, Features and Objectives of Indian Economic Planning, Vision and
Strategy for Twelth Five Year Plan, Economic Reforms in India, Macroeconomic
Stabilisation, Structural Reforms, Performance of Indian Economy since Economic Reforms.
Capital Requirement and Economic Growth; Domestic Savings and Capital Formation;
Concept and Incidence of Poverty in India.
Role, nature and cropping pattern of agriculture in India; public and private investment in
agriculture; W.T.O. and Indian agriculture; causes and measures of low productivity in Indian
agriculture; land reforms, agricultural inputs and green revolution; importance, sources, and
availability of agricultural finance; agricultural marketing in India; evaluation of
government’s agricultural policy; agricultural subsidies, public distribution system.
Problems of small scale and cottage industries and government policy in India; industrial
policy in pre and post reform period in India; evaluation of privatisation and disinvestment
policy in India; private sector in the post liberalisation period.
Monetary Policy of the Reserve Bank of India and its Appraisal; Fiscal Policy in India; Fiscal
Imbalance, Deficit Finance and Fiscal Responsibility in India; Growth and Structure of
India’s Foreign Trade, the Pre and Post 1991 Period Balance of Payments Situation in India;
Public Economics-1
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 – Tiebout model, theory of club
goods; Stabilization Policy – Keynesian case of stabilization policy; Uncertainty and
expectations; Failure of inter temporal markets; Liquidity preference; Social goals; Poverty
alleviation; Provision of infrastructural facilities, removing distributional inequalities and
regional imbalances.
Role of Government in an Economy - The Allocation, Distribution and The Stabilisation
Functions; Private Goods, Public Goods, and Merit Goods; Market Failure - Imperfections,
Decreasing Costs, Externalities; Wagner’s law of increasing state activities; WisemanPeacock
hypothesis; Pure theory of public expenditure; Structure and growth of public
expenditure; Criteria for public investment; Social cost-benefit analysis – Project evaluation;
Estimation of costs, discount rate; Reforms in expenditure budgeting; Programme budgeting
and Zero base budgeting.
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.
Financial Markets, Institutions and Services
Financial system: An overview, global financial system, Indian financial system, functions of
financial system in an economy, financial services: insurance services, IRDA and its
functions, factoring and forfaiting, merchant banking, mutual funds, venture capital, microfinancial
services.
Indian financial markets: Money markets and capital markets. Recent Reforms Call Money
Market, Treasury Bills Market, Commercial Bills Market, Markets for Commercial Paper &
Certificate of Deposits, Recent Developments in Capital Markets in India, Role of SEBI,
Merchant Banking, Venture Capital.
Financial & Banking Institutions: Role, Meaning and Importance of Financial Institutions,
SIDBI, NABARD, IFCI, state finance corporations and Banks in the Emerging New
Environment of Privatization and Globalization.
Investment Trust Companies, Economics of Investment Trust Companies, Mutual Funds, A
Detailed Critical Appraisal of UTI in the Indian Financial System. NBFC: Activities and Role
of NBFC; Regulatory Framework of NBFC; Recent development.
Financial sector reforms, features of financial markets, financial repression and major
financial reforms in India, supply and loans of demand for deposits.
Applied Demand Analysis
Theory and Models of Theory; Testability of Theory and Models; Significance of Consumer
Demand; Sources, Nature, and Refinements of Consumer Demand Data; Concept of Duality
and Duality Between Direct and Indirect Utility Functions; Roy’s Identity.
Estimation and Analysis of Consumer Demand Models; Measurement of Engle Curves From
Honsehold Budget Data; Modelling of Household Composition and Size; Specification and
Estimation of Single Equation Models of Demand.
Constant Elasticities Demand Functions; Simultaneous Equation Demand Models; The
Linear Expenditure Model, The Rotterdam Model, Addilog (Direct and Indirect) Model, and
Almost Ideal Demand (AID) Model; Incorporation of Durablegoods, habit formation and
distributional effects.
Economics of Infrastructure
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; Cross subsidization – free prices,
equity and efficiency.
The structure of transport costs and location of economic activities; Demand for transport –
Models of freight and passenger demand; Model choice; Cost functions in the transport
sector; Principle of pricing; Special problems of individuals modes of transport; Inter-model
condition in the Indian situation.
Rate making in telephone utilities; Principles of decreasing costs in telephone industry –
Characteristics of postal services; Criteria for fixation of postal rates; Measurement of
standards of service in telephone and postal utilities.
Primacy of energy in the process of economic development; Factors determining demand for
energy; Effects of energy shortages; Energy conservation, renewable and nonconventional
sources of energy; Energy modeling; The search for an optimal energy policy in the Indian
context.
Bulk supply and pricing of electricity – The relative economics of thermal, hydel and nuclear
power plants – The case for a National Power Grid, financing water utilities - Urban and rural
water supply; The exploitation of National Gas; Pricing problem.
Education and economic growth; Approaches to educational planning, social demand, rate of
return and manpower balance approaches; The case for universal, free, primary education;
Structure of higher education and problems of its financing in India; Human resources and
human capital development – The issues in education policy;
International Economics-II
Economic integration: customs, unions and free trade area; trade creation, trade diversion,
theory of second best, dynamic benefits from trade unions.
International trade and economic development: importance of trade to development, export
instability and economic development, import substitution and export orientation.
Balance of Payment; The Current Account The Capital Account; Foreign exchange markets
and exchange rates: exchange rate, spot, forward rates, foreign exchange risks, hedging and
market, interest arbitrary and efficiency of foreign exchange markets; exchange rate
determination: purchasing power parity, monetary approach to balance of payment.
Flexible and fixed exchange rates, balance of payment adjustments with fixed and flexible
exchange rate, income adjustment mechanism, income determination in a closed economy
and small open economy. Absorption approach, monetary adjustments, open economy
macroeconomics: adjustment policies, The IS-LM-BP model with flexible exchange rate.
International monetary system: past, present and future, gold standard, Bretton woods,
International Monetary Fund, World Bank.
Econometrics-II
Qualitative variables as explanatory variables: estimating the shift in intercept and slope
coefficient, interpretation of dummy coefficient in log-linear model, estimating season
effects, testing for structural change; qualitative dependent variables, Linear probability
model, Logit, Probit and Tobit models.
Distributed lag models: lagged independent variables, impact multiplier, interim multiplier,
and long-run multiplier, Koyck approach, partial adjustment model, adaptive expectation
model, consequences of the presence of lagged dependent variables as regressors.
Simultaneous equation models; structural and reduced form of simultaneous equation models;
simultaneous equation bias,; identification problem; estimation procedures; indirect least
squares (ILS), instrumental variables (IV), and two stage least squares (2SLS).
Lagged dependent variable and serial correlation, tests of serial correlation, estimation
methods with lagged dependent variable as regressors; unit roots and Dickey-Fuller tests;
stationarity.
Forecasting: fitted values, ex-post, and ex-ante forecasts, evaluation of models, conditional
and un-conditional forecasts, forecasting from time trends, combining forecast, forecasting
from econometric models, forecasting from time series models.
Research Methodology
Meaning and objectives of research, meaning and formulation of hypothesis, theory, models
of a theory, testing of theories and models; Methodology versus methods of research:
research problem and selection of research problem; review of literature and its role in
selecting a research problem;
Meaning and need for research design: meaning of population, sample and sample size,
meaning, types and characteristics of sample design, random and non-random sample,
stratified and multistage random samples, systematic samples.
Methods of data collection: primary and secondary data sources, brief information about
databases of Indian economy, nature of cross section, time series and panel data,
diagrammatic and tabular presentation of data, pie chart, bar diagram, histogram, scatter
diagram, tracing of curve, one way and two way tables.
Analysis of data: measures of central tendency and dispersion, Hypothesis testing: parametric
and no-parametric tests of hypothesis; linear regression, simple, partial and multiple
correlation coefficient, rank correlation, simple and multiple regression models,
Multivariate analysis techniques: factor analysis, cluster analysis, conjoint analysis,
multidimensional scaling, discreminant analysis, Analysis of variance; Report writing.
Public Economics-II
Classical view of public debt; Compensatory aspect of debt policy; Burden of public debt;
Sources of public debt; Debt through created money; Public borrowings and price level;
Crowding out of private investment and activity; Principles of debt management and
repayment.
Objectives of fiscal policy – full employment, anti-inflation, economic growth, redistribution
of income and wealth; Interdependence of fiscal and monetary policies; Budgetary deficit and
its implications; Fiscal policy for stabilization – Automatic vs discretionary stabilization;
Alternative measures of resource mobilization and their impact on growth, distribution and
prices; Balanced budget multiplier.
Principles of multi-unit finance; Fiscal federalism in India; Vertical and horizontal
imbalances; Assignment of function and sources of revenue; Constitutional provisions;
Finance Commission; Devolution of resources and grants; Theory of grants; Resource
transfer from Union to States – Criteria for transfer of resources; Centre-State financial
relations in India; Problems of states’ resources and indebtedness; Transfer of resources from
Union and States to local bodies.
Contemporary Issues in Indian Economy
Changing structure of Indian economy, Imbalance in occupational pattern and contribution to
GDP, Determinants of acceleration in growth rate of GDP in India, Bahaviour of saving and
investment in recent years.
Stagnancy in productivity in agriculture sector and trends in its diversification; Issues of
competitiveness of Indian manufacturing sector, emergence of knowledge intensive industries
in India.
Centre-State finance relations; eleventh, twelfth and thirteenth finance commissions; other
sources of transfer; Tax revenue of the central and state governments; evaluation of Indian
tax structure; direct tax code (DTC), goods and services tax in India.
Infrastructure bottlenecks in Indian economy, impact of institutional factors on development
of Indian economy.
Recent foreign trade policy in India; pros and cons of special economic zones policy: Indian
government’s policy towards foreign capital; foreign investment inflows, foreign aid and
India’s external debt. Management of foreign exchange reserves and exchange rate; issue of
capital account convertibility; operations of multinational corporations (MNCs); meaning and
effects of globalization on Indian economy; W.T.O., Provisions and Indian economy.
Time Series Econometrics
Difference equations: Time series models, difference equations and their solutions, solving
homogeneous difference equations, particular solutions for deterministic process, the method
of undetermined coefficients, lag operators.
Stationary time series models: stochastic difference equation models, ARMA models,
stationarity, the autocorrelation function, the partial autocorrelation function, sample
autocorrelations of stationary series, Box-Jenkins model selection, and seasonality.
Modeling Economic Time Series: Trends and Volatility: ARCH process, GARCH model,
ARCH-M model; Testing for Trends and Unit Roots: Unit root processes, Dicky-Fuller tests,
Augmented Dicky-Fuller test, Phillips Perron test.
Multi-equation Time Series Models: Intervention analysis, Transfer function models,
Introduction to VAR model, estimation and identification, the Impulse response function,
structural VAR.
Co-integration and Error Correction Models: Testing for co-integration, The Engle Granger
methodology, Johansen methodology, ARDL bounds-testing approach.
Applied Production Analysis
Theory of production versus models of production, Testability of theory and models:
production functions as models of production theory; concepts of duality and self duality,
Sheppard lemma, nested and non nested forms.
Flexibility versus well behavedness of production and cost functions: tradeoff between
generality and well behavedness; duality between production and cost functions: choice
between production and cost function, brief discussion on the sources, nature, and refinement
of production data relating to Indian economy.
Applied analysis of production and cost functions: Cobb-Douglas (C-D), constant elasticity
of substitution (CSE), variable elasticity of substitution (VES), and Leontief production and
cost functions, applied analysis of flexible forms of production and cost functions, trans-log
production and cost functions; generalized Leontief and generalized Cobb-Douglas
production function, significance of applied production analysis.
Suggested Readings
Micro-Economic Theory-I & II
Jehle & Renne, Advanced Microeconomic Theory, Pearson Education, India.
Mas-Colell, Andreu, Michael D. Whinston and Jerry R. Green (1995), Microeconomic
Theory, OUP, New York.
Salvatore, Dominick, Principles of Micro-Economics, Oxford University Press, 2009.
Varian, Hall R. (1990), Intermediate Microeconomics, W.W. Norton & Company, New York,
London.
Varian, Hall R. (1992), Microeconomic Analysis (Third Edition), W.W. Norton & Company,
New York, London.
Macro-Economic Theory-I & II
Begg, D.K.H. (1982), The Rational Expectation Revolution in Macro-economics, Oxford,
Allan.
Davidson, Paul (1994), Post Keynesian Macroeconomic Theory, Aldershot, UK: Edward
Elgar.
Dornbusch, R. and S. Fischer, Macroeconomics, McGraw-Hill.
Jha, R. (1991) – Contemporary Macroeconomic Theory and Policy; (Wiley Eastern)
Levacic, R. and A. Rebman (1986) – Macroeconomics; (2nd Ed., Macmillan).
Mankiw, N.G. and D. Romer (eds.) (1991) – New Keynesian Economics; (MIT, Cambridge).
Mankiw, N.G., Macroeconomics, Macmillan.
Rangarajan, C., B.H. Dholakia, Prinicples of Macroeconomics.
Romer, David (1996), Advanced Macroeconomics, New York: McGraw-Hill.
Erol D’Souza, “Macroeconomics, Pearson Education.
Economic Growth and Development-I & II
Aggarwal and Singh (1958): The Economics of Underdevelopment. Oxford University Press,
New Delhi.
Arrow, K.J. and Anthony C. Fisher, “Environmental Preservation, Uncertainty and
Irreversibility.” Quarterly Journal of Economics.
Basu, Kaushik : Analytical Development Economics. The Less Developed Economy
Revisited, OUP.
Chakarvarti, S. (1981): Development Planning: The Indian Experience. Oxford University
Press, New Delhi.
Chakravarti, S. (1982): Alternative Approaches to a Theory of Economic Growth, Oxford
University Press, New Delhi.
Chenery, H. et al. (1987): Handbook of Development Economic V 01.1 and II. NorthHolland.
Ghatak, S. : Introduction to Development Economics, Rutledge.
Haq, M.: Reflection on Human Development, Oxford University Press, New Delhi.
Jones, H.G., An Introduction to Modern Theories of Economic Growth, McGraw Hill Book
Company.
Krutilla John, V. (1967), “Conservation Reconsidered,” AER, Vol. 57.
Meier and Rauch: Leading Issues in Economic Development (8th edition), OUP.
Meier, G.M. (1971): Leading Issues in Economic Development. Oxford University Press,
New Delhi.
Myrdal, G. (1968): Asian-Drama: An Enquiry into the Poverty of Nations, Pelican, London.
Ray, D.: Development Economics, OUP.
Sen, A.K. (1970): Growth Economics, Penguin.
Sen, S.K. (1984): Resources, Values and Development, Basil Blackwell. London.
Thirawall, A. (1978): Growth and Development, Macmillan, London.
Todaro, M.P. and Smith, S.C.: Economic Development (8th Edition), Pearson.
Mathematics for Economic Analysis-I & II
Chiang, Alpha, C : Fundamental Methods of Mathematical Economics, 4th Edition, MC Grow
Hill, 2008.
Mukherjee B and V Pandit, Mathematical Methods for Economic Analysis Allied Publishers
Pvt Ltd, 1982.
Knut Sydsaeter and Peter J. Hammond, Mathematics for Economic Analysis, Prentice Hall.
Mathematical Economics-I & II
Peter N. Hess, Using Mathematics in Economic Analysis, Prentice Hall.
Akira Takayama, “Mathematical Economics “, Cambridge University Press, 2nd Edition.
Henderson and Quandant, “Microeconomic Theory: A Mathematical Approach”
R. G. D. Allen, Mathematical Economics, 1956.
Chiang, Alpha, C : Fundamental Methods of Mathematical Economics, 4th Edition, MC Grow
Hill, 2008.
Statistical Methods
Clarke, G.M. and Cooke D. (1992), A Basic Course in Statistics, 3rd edition, Arnold.
Croxton, Crowden and Klein (1971), Applied General Statistics, Prentice Hall of India, New
Delhi.
Freud, J.E. and Walpole, R.E. (1987), Mathematical Statistics, Prentice-Hall Inc.
Freund, J.E. (1999), Mathematical Statistics, 5th edition, Prentice-Hall International.
Gupta, S.C. (1993), Fundamentals of Applied Statistics, S. Chand and Sons, New Delhi.
Hogg, R.V. and Craig, A.T. “Introduction to Mathematical Statistics”, Prentice-Hall
International, Inc. Engle Wod Cliff, N.J., Fifth Edition, 1995.
Nagar, A.L. and Das, R.K., Basic Statistics, Oxford University Press.
Rees, D.G. (1987), Foundation of Statistics, Chapman & Hall.
Rice, J.A. (1995), Mathematical Statistics and Data Analysis, 2nd edition, Duxbury Press.
International Economics-I & II
Bhagwati, J. (Ed) (1981), International Trade, Selected Readings, Cambridge University
Press, Massachusetts.
Kindle berger, C.P. (1973), International Economics, R.D. Irwin, Homewood.
King, P.G.(1995), International Economics and International Economics Policy A Reader,
MC Grow Hill International, Singapore
Salvatore, D. (1997), International Economics, Prentice Hall, N.J. New York.
Soderston, B.O. (1991), International Economics, Macmillan Press Ltd, London.
Econometrics-I & II
Berndt, E.R. The Practice of Econometrics. Reading, Mass: Addison-Wesley, 1991
Gujrati, Damodar, N. (1995), Basic Econometrics, Mc Graw Hill, New Delhi
Intriligator, M., R.G. Bodkin, and C. Hsiaq, Econometric Models, Techniques and
Applications. Prentice Hall, 1996
Johnson, J. Econometric Methods. New York: Mc Graw-Hill, 1984
Kmenta, J. Elements of Econometrics. New York: Macmillan, 1986
Krishna, K.L. (Ed), Econometric Application in India Oxford University Press, New Delhi
(1997).
Lott, W., and S.C. Ray. Applied Econometrics: Problems and Data Sets. Fort Worth, Tex:
The Dryden Press, 1992
Maddala, G.S. Econometrics. Mc Graw-Hill, Inc. (1977)
Ramanathan, Ramu, Introductory Econometrics with Applications. South Western: Thomson,
2002.
Indian Economy
Ajit Singh (2005), “Manufacturing Services, Jobless and Informal Economy: Will Service be
new engine of Growth in India?” Paper presented in Seminar at ILO, New Delhi, Feb 16.
Bimal Jalan, India’s Economic Policy – Preparing for the Twenty First Century, Viking, New
Delhi-1996
Brahmananda, P.R. and V.R. Panchmukhi (eds.), The Development Process of the Indian
Economy Himalaya Publishing House, Bombay, 1987.
Dalip S. Swamy, The Political Economy of Industrialisation, Sage Publications, Delhi, 1994.
Dasgupta, B., Globalisation – India’s Adjustment Experience, Sage Publications, New Delhi,
2005
Ghosh, D.N., Banking Policy in India, Allied Publishers, Bombay, 1979.
Government of India (2010-11) “Economic Survey”.
Indian Institute of Applied Manpower (2004), “Manpower Profile in India: Yearbook”.
Kaushik Basu (ed.) The Oxford Companion to Economics in India; Oxford University Press,
New Delhi, 2007
Mahendra Dev, S. Inclusive Growth in India, Oxford University Press, New Delhi, 2008
Mishra, S.K. and V. K. Puri, Indian Economy (2009) Himalaya Publishing House
Montek S. Ahluwalia, Y. V. Reddy and S.S., Tarapore (ed) Macro Economics and Monetary
Policy, New Delhi, 2002
Rangarajan, C., Indian Economy – Essays on Money and Finance, UBS Publishers Ltd., New
Delhi, 1998
Sebastian, M., Rakesh Basant, Keshab Das, K. Ramchandran and A. Koshsy, The Growth
and Transformation of Small Firms in India, Oxford University Press, New Delhi, 2001
Suri, K.B. (ed), Small-Scale Enterprises in Indus Trial Development: The Indian Experience,
Sage Publications, New Delhi, 1988
Agriculture Economics
“Contributions to Indian Economic Analyses : A surceey, “ AER Supplement (September).
Amartya sen (1975) Employment, Technolgy and Development, Oxford University Press
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Financial Markets, Institutions and Services
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Applied Production Analysis
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Equipment, Structures, and Labour in U.S. Manufacturing 1929-68, Journal of Econometric, I
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Indirect Utility Functions, Technical Repost 86, IMSS, Stunford University (Jan, 1973)
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Public Economics
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Research Methodology
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Economics of Infrastructure
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Health Economics
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Labour Economics:
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Industrial Economics:
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Allen and Unwin Ltd, London.
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Applied Demand Analysis
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1997.
Contemporary Issues in Indian Economy:
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the 11th Five Year Plan”.
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Government of India, Minister of Commerce, Department of Commerce, “India’s Foreign
Trade Policy: 2009-2014”.
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Factsheets (Various Issues).
Time Series Econometrics
Walter Enders, “Applied Econometric Time Series”, John Wiley and Sons.
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Palgrave, MacMillan.