CURRICULUM FOR BS (FOUR YEARS) IN ECONOMICS

1

CURRICULUM FOR BS (FOUR YEARS)

IN ECONOMICS

DEPARTMENT OF ECONOMICS

BACHA KHAN UNIVERSITY CHARSADDA

2020

2

TABLE OF CONTENTS

FRAMEWORK FOR BACHELOR OF SCIENCE (FOUR YEAR) IN ECONOMICS ............... 3

LAYOUTS FOR BS (FOUR YEAR) ECONOMICS .................................................................... 4

CURRICULUM FOR FOUR YEARS BS IN ECONOMICS ........................................................ 6

OPTIONAL COURSES.................................................................................................................. 8

COURSE CODES DISTRIBUTION .............................................................................................. 8

MARKS DISTRIBUTION ............................................................................................................. 8

ELIGIBILITY CRITERIA: ............................................................................................................ 9

FIRST YEAR: FIRST SEMESTER ............................................................................................. 10

FIRST YEAR: SECOND SEMESTER ........................................................................................ 20

SECOND YEAR: THIRD SEMESTER ....................................................................................... 26

SECOND YEAR: FOURTH SEMESTER ................................................................................... 31

THIRD YEAR: FIFTH SEMESTER ............................................................................................ 36

THIRD YEAR: SIXTH SEMESTER ........................................................................................... 43

FOURTH YEAR: SEVENTH SEMESTER ................................................................................. 51

FOURTH YEAR: EIGHTH SEMESTER .................................................................................... 55

LIST OF OPTIONAL COURSES ................................................................................................ 62

3

Framework for Bachelor of Science (Four Year) in Economics

(As Adopted by HEC)

STRUCTURE

Sr. Categories No. of courses

Min – Max Credit Hours Min – Max

1. Compulsory Requirement (No Choice) 8– 9 22 – 25

2. General Courses to be chosen from other

departments 7 – 8 21 – 24

3. Discipline-specific Foundation Courses 8 – 8 24 – 24

4. Major Courses including research project/Internship 11 – 15 33 – 45

5. Electives/Optional within the major 4– 8 12 – 24

Total 38 – 48 112 – 142

Total numbers of Credit hours 112-142

Duration 4 years

Semester duration 16-18 weeks

Semesters 8

Course Load per Semester 15-18 Cr hr

Number of courses per semester 4-6

4

LAYOUTS FOR BS (FOUR YEAR) ECONOMICS

Compulsory Requirements

(the student has no choice) General Courses to be chosen from

other departments Discipline Specific Foundation Courses

8 courses 7 courses 8 courses 22 Credit hours 21 Cr. Hours 24 Credit hours

Subject Cr.

Hr Subject .

Cr.

hr Subject Cr.

Hr

1. English I(Functional

English )

2. English

II(Communication

Skills)

3. English III(Technical

Writing and

Presentation Skills)

4. Entrepreneurship

(General)

5. Pakistan Studies 6. Islamic Studies 7. Mathematics-I 8. Introduction to

Computer

Application

Note: Affiliated Colleges can

substitute

Entrepreneurship with

any other general

subject according to the

availability of their

faculty

3

3

3 3

2 2 3

3

1. Principles of

Management

2. Introduction to

Philosophy

3. Introduction to

Commerce

4. Introduction to Logic 5. Introduction to Marketing 6. Citizen Education and

Community Engagement

7. Introduction to

Accounting 8. Principles of Sociology

Note:

Affiliated colleges may

substitute any of the above

subject with:

Introduction to Psychology,

Introduction to Gender

Studies, Introduction to

Political Science, ,

Introduction to

Anthropology, Introduction

to Education, Introduction

to Law, Introduction to

Management or any other

general subject from other

departments t according to

the availability of faculty.

3

3

3

3

3

3

3 3

1. Principles of Microeconomics 2. Principles of Macroeconomics 3. Intermediate Microeconomics

4. Intermediate Macroeconomics 5. Statistics-I 6. Statistics II 7. Econometrics-I

8. Mathematical Economics-I

3 3 3

3 3

3 3

3

22 24 24

Total Credit Hours: 70

5

Major courses including research thesis

15 courses 48 Credit hours

Subject Credit

hours Optional subjects, Choose 7-8

courses, 21-24 cr. hrs. Credit

hours

1. Microeconomics Analysis

2. Macroeconomics Analysis 3. Mathematical Economics II 4. Econometrics II 5. Agricultural Economics

6. Fiscal Policy 7. Agricultural Economics

8. Industrial Economics

9. International Economics 10. Research Methodology 11. Managerial Economics 12. Monetary Policy 13. Economic Growth

14. Applied Econometrics 15. Research Thesis

3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 6

1. Game Theory

2. Population Economics 3. Financial Market 4. General Equilibrium and Welfare

Economics

5. Labor Economics 6. Major Issues in Pakistan Economy 7. Natural Resources &

Environmental Economics

8. Philosophy of Economics 9. Institutional Economics 10. Islamic Economics 11. International Finance 12. Public Finance

13. History of Economics

Thoughts &Philosophy

14. Islamic Economics

15. Development Economics

16. International Finance

3 3 3

3 3

3

3

3 3 3 3 3 3 3

3 3

48 48

Total Credit Hrs: 136

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CURRICULUM FOR FOUR YEARS BS IN ECONOMICS

FIRST YEAR: FIRST SEMESTER

COURSE

CODE COURSE TITLE

CREDIT

HOURS

CUMMULATIVE

CREDIT HOURS

ELL-311 English I: Functional English 03 03

IS-312 Islamic Studies 03 06

SOC -313 SS-1 (Citizenship Education and

community Engagement)

03 09

EDU-312 NS-1 (General Science) 03 12

ECON-311 Principles of Microeconomics 03 15

ECON-312 Statistics-I 03 18

Total Credit Hours 18 18

FIRST YEAR: SECOND SEMESTER

COURSE

CODE COURSE TITLE

CREDIT

HOURS

CUMMULATIVE

CREDIT HOURS

ELL-321 English II: Composition Writing 03 21

PS-321 Pakistan Studies* 03 24

CS-311 QR-1 (Introduction to Computer) 03 27

Arts and Humanities-I (Languages) 03 30

ECON-321 Principles of Macroeconomics 03 33

ECON-322 Statistics-II 03 36


SECOND YEAR: THIRD SEMESTER

SECOND YEAR: FOURTH SEMESTER

COURSE

CODE COURSE TITLE

CREDIT

HOURS

CUMMULATIVE

CREDIT HOURS

Arts and Humanities-II 03 54

PHIL-312 QR-II(Logic and Quantitative

Reasoning)

03 57

ECON-421 Intermediate Macroeconomics 03 60

ECON-422 Econometrics-I 03 63

ECON- Optional (Economics) 03 66


COURSE

CODE COURSE TITLE

CREDIT

HOURS

CUMMULATIVE

CREDIT HOURS

ELL-411 English III: Academic Reading and

Writing

03 39

Social Sciences - II 03 42

Natural Sciences-II 03 45

ECON-411 Intermediate Microeconomics 03 48

ECON-412 Mathematical Economics-I 03 51


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THIRD YEAR: FIFTH SEMESTER

S.

No

COURSE

CODE

TITLE OF COURSES CREDIT

HOURS

CUMMULATIVE

CREDIT HOURS

25 ECON-511 Microeconomic Analysis 03 69

26 ECON-512 Managerial Economics 03 72

27 ECON-513 Agricultural Economics 03 75

28 ECON-514 Mathematical Economics-II 03 78

29 ECON- Optional (Economic) 03 81

30 ECON- Optional (Economics) 03 84

TOTAL 18 84

THIRD YEAR: SIX SEMESTER

S.

No

COURSE

CODE


HOURS

CUMMULATIVE

CREDIT HOURS

31 ECON-521 Macroeconomic Analysis 03 87

32 ECON-522 Econometrics-II 03 90

33 ECON-523 Monetary Policy 03 93

34 ECON-524 Industrial Economics 03 96


36


TOTAL 18 102

FOURTH YEAR: SEVENTH SEMESTER

S.

No

COURSE

CODE


HOURS

CUMMULATIVE

CREDIT HOURS

37 ECON-611 International Economics 03 105

38 ECON-612 Research Methodology 03 108



41

ECON- Optional (Economics) 03

117

TOTAL 15 117

FOURTH YEAR: EIGHT SEMESTER

S.

No

COURSE

CODE


HOURS

CUMMULATIVE

CREDIT HOURS

42 ECON-621 Applied Econometrics 03 120

43 ECON-622 Research Thesis /Report

Writing + one optional

Subject

06/03+03 126



TOTAL 15 132

GRAND TOTAL 132 132

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Course Codes Distribution

The Economics codes consist of four alphabets (ECON) followed by three numeric

values. Each numeric value from left to right has it’s nomenclature as follows:

1. The first numeric value represents academic year after matriculation that is 3

represent third year after matriculation (BS first year) and in similar way 4, 5, 6 and 7

represent fourth, fifth, sixth and seventh year after matriculation, respectively.

2. The middle numeric value represents the semester if they are 1 or 2 of that

academic year. Similarly if this value is 0 then it represent the course of other

department and for values other than 0, 1 and 2, this value represent the course of this

department.

3. The last numeric value represents the number of course of that specific semester if

applicable.

Marks Distribution

Midterm 30%

Tests/assignment/quiz/attendance/presentation 20%

Final examination 50%

Total 100%

Optional Courses

Note: University/Affiliated Colleges /Students can select any of the following subjects as

their optional subject. All optional courses are of three credits hours.

ECON-313 Fundamental of Economics

ECON-314 Introduction to Microeconomics

ECON-315 Introduction to Macroeconomics

ECON-423 Development Economics

ECON-424 Economic Growth

ECON-515 Fiscal Policy

ECON-516 History of Economic Thought & Philosophy

ECON-517 Major Issues in The Economy of Pakistan

ECON-518 Philosophy of Economics

ECON-525 Population Economics

ECON-526 International Finance

ECON-527 Energy Economics

ECON-614 Labor Economics

ECON-615 Financial Market

ECON-616 Political Economy

ECON-617 Institutional Economics

ECON-623 Natural Resource and Environmental Economics

ECON-624 General Equilibrium & Welfare Economics

ECON-625 Game Theory

ECON-626 Islamic Economics

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Eligibility Criteria:

F.A/F.Sc/FCS/D.Com or any equivalent Certificate at least 2nd division (45% Marks).

Applicant is required to have at least one of the courses Mathematics, Statistics, or

Economics in intermediate are eligible for admission.

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FIRST YEAR: FIRST SEMESTER

COURSE

CODE

COURSE TITLE Course Type CREDIT

HOURS

ELL-311 English I: Functional English Gen Ed 03

IS-312 Islamic Studies Gen Ed 03

SOC -313 SS-1 (Citizenship Education and

community Engagement)

Gen Ed 03

EDU-312 NS-1 (General Science) Gen Ed 03

ECON-311 Principles of Microeconomics Subject-Specific 03

ECON-312 Statistics-I Subject-Specific 03

Total Credit Hours 18

COURSE TITLE: ENGLISH-I (FUNCTIONAL ENGLISH)

COURSE CODE: ELL-311

CREDIT HOURS: 03

COURSE OBJECTIVES: To enhance and develop language skills and critical thinking

COURSE CONTENTS: Grammar

Basics of Grammar

Parts of speech and use of articles

Sentence structure, active and passive voice

Practice in unified sentence

Analysis of phrase, clause and sentence structure

Transitive and intransitive verbs

Punctuation and spelling

Comprehension

Answers to questions on a given text

Discussion

General topics and every-day conversation (topics for discussion to be at the

discretion of the teacher keeping in view the level of students)

Listening

To be improved by showing documentaries/films carefully selected by subject

teachers

Translation skills

Urdu to English

Paragraph writing

Topics to be chosen at the discretion of the teacher

Presentation skills

Introduction

Note: Extensive reading is required for vocabulary building

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COURSE RECOMMENDED BOOKS:

1. Langan, John. (2004). College Writing Skills. London: Mc-Graw-Hill Higher

Education.

2. Laurie G. Kirszner and Stephen R. Mandell. (2001). Patterns of College

Writing. St. Martin’s Press.

3. Marie, Brinand, and Grellet.( 1993). Oxford Supplementary Skills. London:

Oxford University Press.

COURSE TITLE: ISLAMIC STUDIES

COURSE CODE: IS-312

CREDIT HOURS: 03

Course Objectives:

This course is aimed at:

1. To provide Basic information about Islamic Studies

2. To enhance understanding of the students regarding Islamic Civilization

3. To improve Students skill to perform prayers and other worships

4. To enhance the skill of the students for understanding of issues related to faith and

Religious life

Course Contents:

Introduction to Quranic Studies

Basic Concepts of Quran

History of Quran

Uloom-ul -Quran

Study of Selected Text of Holly Quran

Verses of Surah Al-Baqra Related to Faith(Verse No-284-286)

Verses of Surah Al-Hujrat Related to Adab Al-Nabi (Verse No-1-18)

Verses of Surah Al-Mumanoon Related to Characteristics of faithful (Verse No-

1-11)

Verses of Surah al-Furqan Related to Social Ethics (Verse No.63-77)

Verses of Surah Al-Inam Related to Ihkam(Verse No-152-154)

Study of Selected Text of Holly Quran

Verses of Surah Al-Ihzab Related to Adab al-Nabi (Verse No.6, 21, 40, 56, 57,

58.)

Verses of Surah Al-Hashar (18,19,20) Related to thinking, Day of Judgment

Verses of Surah Al-Saf Related to Tafakar,Tadabar (Verse No-1,14)

Seerat of Holy Prophet (S.A.W) I

Life of Muhammad Bin Abdullah ( Before Prophet Hood)

Life of Holy Prophet (S.A.W) in Makkah

Important Lessons Derived from the life of Holy Prophet in Makkah

Seerat of Holy Prophet (S.A.W) II

Life of Holy Prophet (S.A.W) in Madina

Important Events of Life Holy Prophet in Madina

Important Lessons Derived from the life of Holy Prophet in Madina

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Introduction to Sunnah

Basic Concepts of Hadith

History of Hadith

Kinds of Hadith

Uloom –ul-Hadith

Sunnah & Hadith

Legal Position of Sunnah

Introduction to Islamic Law & Jurisprudence

Basic Concepts of Islamic Law & Jurisprudence

History & Importance of Islamic Law & Jurisprudence

Sources of Islamic Law & Jurisprudence

Nature of Differences in Islamic Law

Islam and Sectarianism

Islamic Culture & Civilization

Basic Concepts of Islamic Culture & Civilization

Historical Development of Islamic Culture & Civilization

Characteristics of Islamic Culture & Civilization

Islamic Culture & Civilization and Contemporary Issues

Islam & Science

Basic Concepts of Islam & Science

Contributions of Muslims in the Development of Science

Quranic & Science

Islamic Economic System

Basic Concepts of Islamic Economic System

Means of Distribution of wealth in Islamic Economics

Islamic Concept of Riba

Islamic Ways of Trade & Commerce

Political System of Islam

Basic Concepts of Islamic Political System

Islamic Concept of Sovereignty

Basic Institutions of Govt. in Islam

Islamic History

Period of Khlaft-E-Rashida

Period of Ummayyads

Period of Abbasids

Social System of Islam

Basic Concepts of Social System of Islam

Elements of Family

Ethical Values of Islam

13

COURSE RECOMMANDED BOOKS:

1. Bhatia, H.S. (1989). Studies in Islamic Law, Religion and Society. New Delhi:

Deep & Deep Publications.

2. Hasan, Ahmad. (1993) .Principles of Islamic Jurisprudence. Islamabad: Islamic

Research

Institute, IIU.

3. Waliullah, Mir. (1982). Muslim Jrisprudence and the Quranic Law of Crimes.

Lahore:

Islamic Book Service.

4. Zia-ul-Haq, Muhammad. (2001). Introduction to Al Sharia Al Islamia.

Islamabad:Allama

Iqbal Open University.

COURSE TITLE: CITIZENSHIP EDUCATION AND COMMUNITY ENGAGMENT

COURSE CODE: SOC-313

CREDIT HOURS: 03

Course Objectives:

The overall objectives of this course are to:

Teach students the importance and role of active citizenship in promoting a

productive, harmonious and developed society/world

Educate students about the importance of concepts, skills and philosophy of

community linkages in developing a sustainable society

Inculcate the importance of community involvement for ensuring an

improved, tolerant and generative society/world

Provide an opportunity to the students to develop their relationship with the

community

Learning Outcomes:

The primary outcome is inclusive development through active citizenship locally and

globally,. Moreover, the following are the detailed outcomes of the course based on

the three domains of Bloom’s Taxonomy i.e Affective, Psychomotor and Cognitive.

The students will be able to:

Understand the overall organization of the society

Recognize and exercise their rights, responsibilities and the significance of

active citizenship in positive societal development

Identify and critically evaluate social issues and implement practicable

community based solutions

Understand the concept of human rights and its significance

Appreciate diverse viewpoints and inter-cultural harmony

Course Outline:

Introduction to Citizenship Education and Community Engagement

Orientation (Course outline, learning outcomes etc.)

Introduction to Active Citizenship: Overview of the Ideas, Concepts,

Philosophy and Skills

Approaches and Methodology for Active Citizenship

14

Identity, Culture, and Social Harmony

Concept and Development of Identity

Components of Cultural and Social Harmony

Cultural & Religious Diversity( Understanding and affirmation of similarities

& differences)

Monitoring & evaluation (impact assessment/value enhancement)

Practicum (list and number of practical/activities/projects/field visits etc) one field

social action project

Teaching Methods (propose more than one method according to the nature and scope

of the course e.g.)

Lecturing

Assignments

Guest Speaker

Field Visits

Report Writing

Assessment (Formative/Summative)

In order to pass the course and gain a certificate students should therefore:

Mid Term

Individually complete a self-assessment exercise after the group work,

showing the reflective and personal development aspects of the

programme and their appreciation of the course learning.

Participate in the design and planning of a social action project and

provide evidence of this in the form of a group presentation, to a panel of

peers, tutors and a community representative for feedback before

implementing the project in the community.

Final Term

Compile a group report on the project process to a standard format at the

end of the project commenting on: project outcomes, individual

contributions and group learning.

Text and Reference Books:

Anne Karin Larsen, Participation in community work: International

Perspectives (VishanthieSewpaul, Grete Oline Hole, 2013)

Alan Twelvetrees, Community Work (London: Palgrave Macmillan, 2008)

British Council, Active Citizen’s Social Action Projects Guide (Scotland:

British Council, 2017)

15

COURSE TITLE: GENERAL SCIENCE

COURSE CODE: EDU-312

CREDIT HOURS: 03

Course Outline

Unit 01: Nature of General Science

1.1 Definition and nature of General Science

1.2 Importance of General Science in Daily Life

1.3 Contributions of Muslim Scientists in Different Areas of Science

1.4 Scope of General Science

Unit 02: Introductions to Physics

2.1 Introduction to Physics

2.2 Branches of Physics

2.3 Islam and Physics

2.4 Scientific Method

Unit 03: Measurements

3.1 Concept of Physical Quantities

3.2 Different Systems of Units

3.3 Relationship of Different Quantities

3.4 Pre-fixes and Scientific Notation

Unit 04: Introduction to Chemistry

4.1 Meaning and Importance to Chemistry

4.2 History of Chemistry

4.3 Braches of Chemistry

4.4 Chemistry and its Applications

Unit 05: Basic Concepts of Chemistry

5.1 Atom, Molecule, Valence Simple formulae

5.2 Atomic Number, Atomic Weight, Formulae weight

5.3 Structure of Atom

5.4 Different Atomic Theories

Unit 06: Introductions to Biology

6.1 Introductions to Biology

6.2 Quran and Biology

6.3 Branches of Biology

6.4 Biology and Human Welfare

Unit 07: Basic Concepts of Biology

7.1 Cell, Tissue, Organs and System

7.2 Parts and Structure of Plant Cell

7.3 Parts and Structure of Animal Cell

7.4 Difference Between Animal and Plant Cell

Unit 08: Concept of Physical Chemistry

8.1 Ideal Gas Equation

8.2 Vander Waals Equations

8.3 Thermodynamics

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8.4 Free Energy and Chemical Equilibrium

Unit 09: Waves

9.1 Concept of Wave

9.2 Types of Waves

9.3 Simple Harmonic Motion

9.4 Derivation of Equation

Unit 10: Conservation of Energy

10.1 Conservation laws in Physical World

10.2 Conservation of Energy

10.3 Conservative Forces

10.4 Conservation of Linear Momentum

Unit 11: Diversity

11.1 Taxonomy of Plants

11.2 Taxonomy of Animals

11.3 Fauna and Flora

Unit 12: Systems in plants Transportation

12.2 Excretion

12.3 Photosynthesis

Recommended Books

Harlen, W. (2003). Teaching of Science, London: David Fulton.

Hassard J. (2004) Minds of Science: Middle and secondary methods, New

York: Harper Collins Publishers.

Monler Martin (1999) Learning to teach science, London, the Falmer Press

Nellist, J. & Nicholl, B. (2004). Science Teachers Handbook. London: the

Association of Science Education

Rehman M. (2004).Teaching of science and Mathematics. Ijaz Printer

Peshawer Pakistan.

Lewis Eikenberry, W. (2008) The teaching of general science, The University

of Chicago Press

COURSE TITLE: PRINCIPLES OF MICROECONOMICS

COURSE CODE: ECON-311

CREDIT HOURS: 03

Objectives The course is designed for the beginners with either no formal background or very

little acquaintance with economics. The objective is to give the students with a clear

understanding of the basic concepts, tools of analysis and terminologies used in

microeconomics. Emphasis will be on the use of graphs, diagrams and numerical

tables/schedules for exposition. The teacher is expected to draw examples from the

surrounding world to clarify the concepts.

Course Contents

Introduction An overview of the social system, Economy as integral part of the social system,

Economic agents and economic problem, Economics as a science of choices between

17

competing wants and limited resources, Classification of economics, Importance and

scope of micro-economics, Basic concepts: Commodities, Income and Resources,

Production and Consumption, Exchange and Distribution.

The Price Mechanism The concept of a market economy, Laws of demand and supply, schedules & graphs

of demand and supply, Market equilibrium and determination of price, Movement

along and shifting of demand and supply curves, Concept of elasticity of demand and

supply, Importance of elasticity.

Consumer’s Behaviour Consumers/ households as economic agents, Problem of the consumers, The utility

theory, Laws of diminishing marginal utility and equi-marginal utilities, Budget

constraint and consumer’s equilibrium, Individual demand and market demand,

Introduction to demand elasticity.

Firms and Industries Business enterprises, Forms of business organization: Proprietorship, Partnership,

Joint stock companies, Multi- national corporations, Classification of the firms,

Production and supply of commodities (goods and services), Objectives of the firm:

The profit motive, Output maximization and cost minimization, Industrial structure &

market supply.

Production and Cost Functions Production function, Primary inputs: factors of production, Secondary/intermediate

inputs: Raw material and energy, The laws of returns, Revenues of the firm: total,

average and marginal revenues, Cost function: Total, average and marginal costs,

Short-run and Long-run costs, Equilibrium of the firm.

Market Structure Classification of markets according to nature of commodity, extent, time and degree

of competition, Perfect competition among buyers and sellers, Imperfect competition:

Monopoly and Monoposony, Monopolistic competition, Price determination, The

need for market regulation and role of the government, Public goods and their

provision beyond the market.

Recommended Books • Mankiw, G. - Principles of Economics - 2nd Edition (2001), South-West

Publishers. • Samuelson and Nordrons - Economics –18th Edition (2004)-McGraw Hill.

COURSE TITLE: STATISTICS-I


CREDIT HOURS: 03

COURSE OBJECTIVE The main objectives of the course are to enhance students‟ competency in application

of statistics to solve economic problems in practical life and to improve their level of

quantitative sophistication for further advanced business analysis.

18

INDENTED LEARNING OUTCOMES At the conclusion of this course, the student will be:

1. Data description and data presentation in a economic environment;

2. Measures of Central Tendency

3. Measure of Relative Dispersion

4. Use of index numbers

5. Basic probability concepts and probability distributions as an aid to economic

decision making.

COURSE CONTENTS

1. Statistics and Statistical Thinking

.The Science of Statistics and its importance

.Fundamental Elements of Statistics

.The Role of Statistics in Critical Thinking and Ethics

2. Organizing Data

Types of Variables Measurement Scales (nominal, ordinal, interval

and ratio scale)

Data Collection Methods

Presentation of data through classification, tabulation, diagrams and

graphs

3.Descriptive Measures Measures of Location:

Mean, Median, Mode, Geometric Mean, Qartiles, Deciles & Percentiles

Measures of Dispersion; Range, Mean Absolute Deviation, Standard

Deviation, Coefficient of Variation, Boxplots

4.Index Numbers

Defining an Index Number

Un-weighted Aggregates Index

Weighted Aggregates Index

Average of Relative Methods

Quantity and Value Indices

5. Time Series Analysis:

Introduction

Components of Time Series

Depersonalization of Data

6. Probability

Probability

Rules of Probability

Bayes Theorem

1. Random Variable and Discrete Distributions

Discrete Random Variables

Mean and Standard Deviation of a Discrete Random Variable

The Binomial, Poison and other discrete distributions

2. The Normal Distribution

Central Limit Theorem

Introducing Normally Distributed Variables

Areas under the Standard Normal Curve

19

Working with Normally Distributed Variables

Assessing Normality; Normal Probability Plots

TEXT/REFERENCE BOOKS: 1. David, S Moore et.al, Introduction to the Practice of Statistics, 6th Edition WH.

Freeman.

2. Levin I. Richard., Statistics for Management, 4th ed; McGraw Hill.

3. Engle wood Cliffs, New Jersey, Prentice Hall International, 1987.

4. Michael J. Evans & Jeffrey S. Rosenthal, Probability and Statistics , WH Freeman

5. Starr K. Martian &Sobal Gross Marion, Statistics for Business and Economics, 1st

Ed; New York, McGraw Hill, International, 1983.

6. Walpole, R, Introduction to Statistics, Edition 3

7. Shaum and Seigel, Statistics for Business (Latest Edition)

20

FIRST YEAR: SECOND SEMESTER

COURSE

CODE COURSE TITLE

Course Type CREDIT

HOURS

ELL-321 English II: Composition Writing Gen Ed 03

PS-321 Pakistan Studies* Gen Ed 03

CS-311 QR-1 (Introduction to Computer) Gen Ed 03

Arts and Humanities-I (Languages) Gen Ed 03

ECON-321 Principles of Macroeconomics Subject-Specific 03

ECON-322 Statistics-II Subject-Specific 03


ENGLISH-II (COMMUNICATION SKILLS)


CREDIT HOURS: 03

Course Objectives: Enable the students to meet their real life communications

needs.

Course Contents:

Paragraph writing

Practice in writing a good, unified and coherent paragraph

Essay writing

Introduction

CV and job application

Translation skills

Urdu to English

Study skills

Skimming and scanning, intensive and extensive, and speed reading, summary

and précis writing and comprehension

Academic skills

Letter/memo writing, minutes of meetings, use of library and internet

Presentation skills

Personality development (emphasis on content, style and pronunciation)

Note: documentaries to be shown for discussion and review



Education.





4. Nolasco,Rob. (1992). Oxford Supplementary Skills: Fourth Impression.

5. Tomlinson, and Ellis. Rod. (1992). Oxford Supplementary Skills. London:


6. Thomson, and Martinet. (1997). Practical English Grammar. London: Oxford

University Press.

21

COURSE TITLE: PAKISTAN STUDIES (COMPULSORY)

COURSE CODE: PS-321

CREDIT HOURS: 03

COURSE OBJECTIVES:

Develop vision of historical perspective, government, politics, contemporary

Pakistan, ideological background of Pakistan and to Study the process of governance,

national development, issues arising in the modern age and posing challenges to

Pakistan.

COURSE CONTENTS:

Historical Perspective

Ideological rationale with special reference to Sir Syed Ahmed Khan, Allama

Muhammad Iqbal and Quaid-i-Azam Muhammad Ali Jinnah.

Factors leading to Muslim separatism

People and Land

i. Indus Civilization

ii. Muslim advent

iii. Location and geo-physical features.

Government and Politics in Pakistan

Political and constitutional phases:

1947-58

1958-71

1971-77

1977-88

1988-99

1999 onward

Contemporary Pakistan

Economic institutions and issues

Society and social structure

Ethnicity

Foreign policy of Pakistan and challenges

Futuristic outlook of Pakistan

RECOMMENDED BOOKS:

1. Amin, Tahir. (1999). Ethno-National Movement in Pakistan. Islamabad:

Institute of Policy Studies, Islamabad.

2. Burke,S.M and Ziring,Lawrence. (1993). Pakistan’s Foreign policy: An

Historical analysis. Karachi: Oxford University Press,

3. Mehmood, Safdar. (2001). Pakistan KayyunToota. Lahore: Idara-e-Saqafat-e-

Islamia. Club Road Press.

4. Mehmood, Safdar. (1994). Pakistan Political Roots & Development. Lahore.

COURSE TITLE: INTRODUCTION TO COMPUTER APPLICATION

COURSE CODE: CS-311

CREDIT HOURS: 03

COURSE OBJECTIVE: This course will enable students to understand different

terms associated with computer and will enable them to identify various components

of computer system. Along with this the course will also be helpful in understanding

MS Office

22

COURSE CONTENTS:

Introduction:

Definitions and Importance of Computer

Basic Concepts of the Computer

Input and Output Devices

Classification of Computers

Functions of Computer

Storage Devices

Software:

Concept of Software

Operating System

Programming and Application Software

Word Process and Document Handling:

Creating a Document

Composing Educational Documents

Internet Browsing

Plagiarism

Email

Spreadsheet (Excel):

Charts and Graphs

Sum/Subtractions/Multiplication/division

Sorting.

Database

Simulating and Modeling Change

Power Point:

Composing Presentations

Delivering Presentations

Data Communication:

The Internet: Browsers and Search Engines

Making and Opening Net ID

Email

E. Commerce

COURSE RECOMMANDED BOOKS:

1. Faden, P.D. and Vogel, RM. (2003). Methods of Teaching. Boston: Mc-Graw

Hills.

2. Norton, Peter. (2003).Introduction to Computers. New York: McGraw-Hill

Book

PRINCIPLES OF MACROECONOMICS


CREDIT HOURS: 03

Objectives The course is designed for the beginners with no formal background or little

23

acquaintance with economics. The objective is to give the students with a clear

understanding of the basic concepts, tools of analysis and terminologies used in

macroeconomics. Emphasis will be on the use of graphs, diagrams and numerical

tables/schedules for exposition. The teacher is expected to draw examples from the

surrounding world to clarify the concepts.

Course Contents

Introduction The economy in aggregate, Complexities of the world of business, Scope of

macroeconomics, Brief account of the development of macroeconomics after the

World War-II, Concept of business cycles: Boom and Depression, Concepts of

Inflation and Unemployment, Macroeconomic variables and their mutual relationship,

Macro-models as abstraction from the real economy.

National Income Definition and concept of national income, Measures of national income: Gross

Domestic Product (GDP) and Gross National Product (GNP), GDP at factor cost and

at market prices, Computation of national income: Product, Income and Expenditure

approaches, Circular flow of income, Nominal versus Real income, Per capita income

and the standard of living.

Components of Aggregate Demand The Concept of Open and closed economy models, Concept of aggregate markets:

Product, Money, Labor and Capital markets, Components of aggregate demand:

Consumption, Investment and Government spending, Income and expenditure

identities.

Money and Banking Money: definition, forms and functions, Central Bank and its functions with reference

to the State Bank of Pakistan, Commercial banking, The Quantity Theory of money,

Inflation: measurement and impacts, causes of inflation and remedies, Monetary

policy: brief introduction.

Public Finance and Taxation Sources of public revenue, Various forms of taxes: Direct and Indirect, Income and

Commodity taxes, Sales, Excise, Customs, Non-tax revenues, Major heads of public

expenditure, Revenue and Capital account, Concept of budget deficits and sources of

filling the gaps, Deficit financing, Fiscal policy: meaning and objectives.

International Trade Global distribution of resources, Concept of imports and exports, Theory of absolute

and comparative advantage, Currency exchange rates, Balance of Payments: causes of

deficits in BOP of Pakistan and remedial measures, Custom Unions, The problem of

external debt, Commercial Policy: objectives and scope.

Recommended Books • Mankiw,G–Principles of Economics-2ndEdition (2001)- South-West

Publishers. • Samulson and Nordrons - Economics –18th Edition (2004)-McGraw Hill. Inc. • Parkin, Michael - Macroeconomics, 7th Edition (2004)- Prentice Hall.

24

COURSE TITLE: STATISTICS-II COURSE CODE: ECON-322

CREDIT HOURS: 03

COURSE DESCRIPTION/OBJECTIVES

The main objectives of the course are to enhance students‟ competency in application

of statistics to solve economic problems in practical lifeand to improve their level of

quantitative sophistication for further advanced business analysis.

INDENTED LEARNING OUTCOMES At the conclusion of this course, the student will be:

1. Know the sampling

2. Estimation

3. Hypothesis testing

4. Regression and correlation analysis

5. Time series

COURSE CONTENTS

1. Sampling and Sampling Distributions

Sampling techniques; random, cluster, systematic, convenience,

judgment and stratified ° Simple random sampling

Point estimation

Introduction to sampling distributions

Properties of point estimators

2. Interval Estimation

Population with ∂ known

Population mean with ∂ unknown

Determining the sample size

Population proportion

3. Hypothesis Testing

Developing null and alternative hypothesis

Type I and type II error

Population mean with ∂ known

Population mean with ∂ unknown

Population Proportion

Hypothesis testing and decision making

Calculating probabilities of Type-II error

Determining the sample size for hypothesis testing about a

population me

4. Statistical Inference About Mean and Proportions with Two

Populations

Inference about the difference between two population means

with known and unknown values of ∂1 and ∂2

Inference about the difference between two population means:

matched samples

5. Inferences About Population Variances

Inferences about a population variance

Inference about two population variances

25

6. Tests of Goodness of Fit and Independence

Goodness of Fit: A multinomial population

Tests of independence

Goodness of fit tests

7. Analysis of Variance and Experimental designs

An introduction to analysis of variance

Analysis of variance: testing for the equality of k population

means

Multiple comparison procedures

An introduction to experimental design ° Randomized block

design °Factorial experiments

8. Nonparametric Methods

Sign test Wilcoxon test

Mann-Whitney-Wilcoxon test ,Kruskal-Wallis test , Rank

correlation

TEACHING METHODOLOGY: Lectures In Class Activities Written

Assignments Practical (SPSS / Excel etc)

TEXT/REFERENCE BOOKS 1. Anderson, Sweeney and Williams, Statistics for Business and Economics, Cengage

Learning.

2. Wonnacott, T.H. and Wonnacott, R. J., Introductory Statistics, John Wiley & Sons,

New York.

26

SECOND YEAR: THIRD SEMESTER

COURSE

CODE

COURSE TITLE Course Type CREDIT

HOURS

ELL-411 English III: Academic Reading and

Writing

Gen Ed 03

Social Sciences - II Gen Ed 03

Natural Sciences-II Gen Ed 03

ECON-411 Intermediate Microeconomics Subject-Specific 03

ECON-412 Mathematical Economics-I Subject-Specific 03


COURSE TITLE: ENGLISH-III (TECHNICAL WRITING AND PRESENTATION SKILLS)


CREDIT HOURS: 03

COURSE OBJECTIVES: Enhance language skills and develop critical thinking

COURSE CONTENTS

Presentation skills

Methods and Techniques

Essay Writing

Descriptive

Narrative

Discursive

Argumentative

Academic Writing

How to write a proposal for research paper/term paper

How to write a research paper/term paper (emphasis on style, content,

language, form, clarity, consistency)

Technical Report Writing

Progress Report Writing

Note: Extensive reading is required for vocabulary building



Education.





6. Nolasco,Rob. (1992). Oxford Supplementary Skills: Fourth Impression.

27

COURSE TITLE: INTERMEDIATE MICROECONOMICS


CREDIT HOURS: 03

Objectives The objective of the course is to clarify and extend further the microeconomic

concepts and to develop analytical skills and solving petty problems. In addition to

diagrammatic approach, the students ought to get accustomed to simple mathematics

and numerical tools. The teacher is expected to draw examples from surroundings for

exposition. The students may be given assignments to collect information from the markets and to

analyze the data. They may have tours to the industrial units and to observe the

process of production and problems in supply and demand. Course Contents

Introduction Scope of Microeconomics and areas of its concern, Economic agents and decision

making, Brief account of the Theory of Value, The relationship between production

and consumption, The role of markets and importance of price signals in efficient

allocation of resources, Economic models as abstraction from the reality, Introduction

to mathematical functions used in economics: Utility, Demand, Supply and

Production functions etc.

Theory of Consumer Behaviour Axioms of Rationality, The utility function and its arguments, Laws of diminishing

marginal and equi-marginal utility, Indifference curves and their properties, Concepts

of imperfect substitutes and complements, Marginal rate of (commodity) substitution

(MRCS), Convexity of indifference curve and diminishing MRS, The budget

constraint, Consumer’s equilibrium and law of equi-marginal utility, Income &

Substitution effects of a price change: diagrammatic representation, Normal, Inferior

and Giffen goods, Gross substitutes and net substitutes, The indirect utility function,

Non-homothetic Preferences, Introduction to the Revealed Preference Theory.

Demand & Elasticity Derivation of demand functions using indifference curves, Ordinary and

Compensated demand functions, Engel’s law and classification of goods, Market

demand as horizontal summation of individual demands, Elasticity of demand,

Importance and types: Own-Price, Cross-Price and Income elasticity, Relationships

among different demand elasticities.

Production Functions Definition, classification and problems of firms, Production and value-added

functions, Fixed and variable-coefficient functions, Some commonly used production

functions: Cobb Douglas and CES etc., Average and marginal products of variable

factors and their inter-relationship, Iso-quant maps, Marginal rate of (technical)

substitution (MRTS), The cost line and equilibrium of the firm, Output maximization

subject to given cost/budget, Demand for variable factors, Elasticity of substitution,

Returns to scales and Economies of scales.

28

Cost of Production Types of costs: Economic and Accounting costs, Opportunity costs, Fixed and Sunk

costs, Total and variable costs, average and marginal costs, Short-run and Long-run

cost functions, Decreasing, Constant and Increasing cost industries, Cost

minimization subject to given/pre-determined level of output, Input cost and demand

for factors of production.

Behaviour of the Firm Profit maximization (loss minimization) as the sole objective of all firms, Equilibrium

of the firm when it faces the market, Total, Average and Marginal Revenues, Equality

of marginal revenue and marginal costs, Economic profit and rent, Short-run and

Long-run position of a price taking and price seeking firm, The controversy over the

profit maximization hypothesis.

Market Structure and Price Determination

(i) The Perfectly Competitive Market Assumptions of the model, Pure and Perfect Competition, Short-run and Long-run

equilibrium of competitive firms, Supply functions in the short and long-run,

Constant-cost and increasing-cost industries, Derivation of equilibrium Prices and

Quantity using simple equations.

(ii) Monopoly and Monopsony The market power of a firm, Sources of monopoly power: why do monopolies exist,

Decreasing-cost industries and natural monopolies, Comparison between monopoly

and monopsony, Short-run and Long-run Equilibrium of a firm with monopoly power,

Price discrimination, Bi-lateral monopoly, Multi-plant monopoly, The social costs of

monopolies, Public utilities and marginal cost pricing, Market regulation and anti-

trust policies, Market equilibrium with monopoly power.

(iii)Monopolistic Competition and Oligopoly Characteristics of monopolistic competition, Short-run and Long-run equilibrium, The

basic theories of monopolistic competition, Comparison with pure competition &

monopoly, The role of advertisement and media, Models of non-collusive Oligopoly:

Cournot, Bertrand, Chamberlain, Sweezy etc. Price leadership and cartel formation.

Pricing of the Factors of Production Derived Demand for Variable Inputs, The marginal productivity theory and its

criticism, Modern theory of factor demand with emphasis on the labour and capital

markets, Thelabour supply function, Wage determination and the role of government

and labour unions, Input price elasticity, Pricing of factors that are fixed in the short-

run: Rents & Quasi-rents, Stock prices. Recommended Books

• Pindyck and Rubinfled with Mehta- Microeconomics- 6th Edition (2005)-

• Pearson Education, Singapore • Walter Nicholson- Intermediate Microeconomics- 6th Edition (1994) or latest

– • The Dryden Press: Harcourt Brace College Publishers • Koutsoyiannis, A.- Modern Microeconomics- 2nd edition (1979)-Macmillan. • Varian Hall R.- Intermediate Microeconomics: Modern Approach-6th edition

29

COURE TITLE: MATHEMATICAL ECONOMICS-I


CREDIT HOURS: 03

Objectives The course is designed to enable the students use mathematical tools in clarifying

their economic concepts and solving problems. This is because economic analysis

requires extensive use of mathematics in the present day world of complexity. Mere

logical reasoning and diagrammatic approach is perhaps not sufficient. This is true for

positive economics in particular. As such, the students of economics have to learn and

apply mathematics along side their theoretical underpinnings.

Homework:

The students may be given assignments and exercises from the texts and weekly or

fortnight class tests including MCQ's and confronted to extensive practice. Course Contents

The Nature of Mathematical Economics Pure and applied mathematics, The use of mathematical tools in social sciences,

particularly in economics, Economic theory (logical argument) as description of some

kind of relationship between variables, Mathematical Support: Expression of theory in

functional form, Explaining properties of economic parameters like elasticity,

propensity to consume etc., Verification of hypotheses and the use of mathematical

models, Parameters and variables (dependent and independent), Linear and non-linear

functions: quadratic, polynomial, circular, Types of functions: constant, rational, non-

algebraic, logarithms & exponential, Rules of logarithms and exponents, Functions of

more than two independent variables, Graphs of various functions, The importance

and limitations of mathematical models.

Equilibrium Analysis Equation of a straight line: Intercept and Slope parameters and their economic

interpretation, Partial and general equilibrium analysis, Single and Simultaneous

equation models, Examples from market models: Demand and supply equations,

Determination of price and quantity, Calculation of elasticities at equilibrium, The

effect of an excise tax on market equilibrium, National Income determination: Closed

economy with goods and money markets.

Linear Models and Matrix Algebra Simultaneous equations models and the use of matrices, Types of matrices: Square,

identity, null, idempotent, diagonal, transpose and their properties, Laws of matrix

operations: addition/subtraction, scalar and vector multiplication, Conditions for non

singularity of a matrix, Determinant & its properties, Minors and cofactors, Ad-joint

and inverse of a matrix, Properties of inverse of a matrix, Solution of linear equations:

the Gaussian method, the Cramer’s rule and Inverse matrix method, Economic

applications: Solution of market models, national income models, and the normal

equations of the Least-Squares econometric model via matrix approach.

Differentiation The concept of derivations, Functions of one variable and rules of differentiation:

Sum-difference, product and quotient rules, chain rule, power function rule, inverse

30

function rule, Implicit functions rule, Combinations of rules, differentiation of

logarithmic & exponential functions, Higher order derivatives, Concept of maxima &

minima, First and second derivative tests, point of inflection, Free and Constrained

optimization, Partial differentiation & its rules, Hessian and Jacobian determinants,

Higher order & cross partial derivatives (Young’s theorem), Total differentials & total

derivatives, Optimizing cubic functions. Economic Applications of Differential Calculus Analysis of Utility, Demand, Production, Cost and Supply functions, Lagrange

function: Profit maximization and cost minimization under perfect competition and

monopoly, Maximizing excise tax revenue in monopolistic competitive market,

Comparative static analysis: Partial equilibrium market model, National Income

model, Partial and Substitution elasticities, Optimization of unconstrained functions

and their economic applications, Profit maximization by a multi-product and multi-

plant firms, Price discrimination and monopoly, Optimization by using Cobb-

Douglas, CES and Translog functions with interpretation of the results.

Linear Programming Ingredients of linear Programming, Graphical approach, Simplex method, Economic

application of linear programming, Concept of primal & dual, Duality theorems,

Solving of Primal via dual, Economic interpretation of a dual.

Recommended Books • Chiang, A. C. - Fundamental Methods of Mathematical Economics – 3rd

Edition (1984) - McGraw Hill Publishing Company. • Frank, Budnick - Applied Mathematics for Business, Economics and Social

Sciences- 4th Edition (1993) or latest – McGraw Hill Publishing Company. • Dowling E. T.- Mathematics for Economists, Schaum's Outline Series- 3rd

Edition

31

SECOND YEAR: FOURTH SEMESTER

COURSE

CODE COURSE TITLE

Course Type CREDIT

HOURS

Arts and Humanities-II Gen Ed 03

PHIL-312 QR-II(Logic and Quantitative Reasoning) Gen Ed 03

ECON-421 Intermediate Macroeconomics Subject-Specific 03

ECON-422 Econometrics-I Subject-Specific 03

ECON- Optional (Economics) Subject-Specific 03


COURSE TITLE: LOGIC AND QUANTITATIVE REASONING

COURSE CODE: PHIL-312

CREDIT HOURS: 03

COURSE CONTENTS:

Basic Logical Concepts:

Definition of Logic.

Logic as a Science and Art

The scope of Logic

Propositions, Arguments

Conclusion-indicators and Premise-indicators

The Laws of Thought

Characteristics of Induction and Deduction

The Uses of Language:

The basic uses of language

Discourse serving multiple functions

The forms of discourse

Kinds of agreement and disagreement

Fallacies:

The classification of Fallacies

Fallacy of Relevance

Fallacy of Ambiguity

Categorical Propositions:

The theory of Deduction

Classes and Categorical Propositions

The four kinds of Categorical Proposition

Quality, Quantity and Distribution

The traditional square of opposition

Obversion, Contraposition

Symbolism and Diagrams of Categorical Proposition

Categorical Syllogism:

Standard form of Categorical Syllogism

The formal nature of Syllogistic arguments

32

Venn diagram technique for testing Syllogism

Syllogistic Rules and Fallacies

Exposition of the 15 Valid forms of Categorical Syllogism

Syllogism in ordinary Language:

Syllogistic Arguments

Dilemma

Disjunctive and Hypothetical Syllogism

Symbolic Logic:

Modern Logic and Symbolic Language

The symbols for Conjunction, Negation, and Disjunction

The precise meaning of Valid and Invalid

Testing arguments on Truth Table

Science and Hypothesis:

Hypothesis

Scientific explanation and Unscientific explanation


1. Stewart, David and Blocker, Gene. H. (2006). Fundamentals of

Philosophy. New Delhi: Pearson Education.

2. Copi, Iring. M. And Cohen, Carl. (2009). Introduction to Logic. New

Delhi: Pearson Education.

3. Copi, Iring. M. , Cohen, Carl., Jetli, Priyadarshi. and Prabhakar, Monica.

(2009).Introduction to Logic. New Delhi: Dorling Kindersley Pvt, Ltd.

COURSE TITLE: INTERMEDIATE MACROECONOMICS


CREDIT HOURS: 03

Objectives The objective of the course is to clarify and extend further the concepts of

macroeconomics so as they develop the capacity to understand the issues and

problems of the economy in a global scenario. In particular, they have to capture the

nature and scope of various public policies. In addition to diagrammatic approach, the

students are confronted to simple mathematical and numerical analysis. The teacher is

expected to draw examples from the surrounding world for exposition. The students may be given assignments to collect information about various aspects

of the economy. They have to read and understand the Economic Survey and Annual

Reports of the State Bank of Pakistan. They may be asked to discuss the Federal and

Provincial Budgets and to analyze the framework.

Course Contents Introduction The Keynesian revolution and growth of Macroeconomics, Actual vs. Potential

Output, Analytical approach to macroeconomics, Oken’s Law and unemployment,

Price Indices and Inflation, The simple macroeconomic models, Lead and Lagged

33

variables, Exogenous and Endogenous variables and their functional relationships,

Introduction to the Classical and Keynesian Schools of Thought.

Measurement of National Income The circular flow of National Income, GDP and GNP, Measurement of GNP:

Expenditure (demand), Product (supply) and Income (factor rewards) approach, Value

added at factor cost and market prices, Personal and disposable income, Per capita

income, GNP as measure of welfare, Injections into and Leakages from the economy:

Saving and Investment, Exports and Imports, Domestic Absorption, Nominal and

Real income, The GDP deflator, Problems in computation of national income, The

underground economy, Components of Aggregate Demand: The closed and open

economy models.

Theories of Consumption Consumption as a function of income, Theories of Consumption: The Absolute

income, Relative income, Permanent income and Life-cycle income hypotheses,

Kuznet’s findings and Reconciliation of Marginal and Average Propensity to

Consume.

Saving and Investment Definition of Investment, Real and Financial investment, Autonomous and Induced

investment, Determinants of investment: The Present Value, IRR and benefit-cost

ratio Criteria, Investment Demand and capital formation, Tobin’s Q-Theory, Lags in

Investment Demand, Volatility of Investment, Investment by the Public sector,

Equilibrium in the goods market, Derivation of IS curve (graphic), Factors affecting

the position and slope of the IS curve, The Saving-Investment gap in developing

countries.

The Demand for and Supply of Money The demand for money, The Quantity Theory of money, The Liquidity Preference/

Portfolio Balance Approach, The supply of money: M1, M2, M3 concepts, The

money supply multiplier and the role of banking system, Instruments of credit control

and the role of central bank, Equilibrium of the money market, Derivation of LM

Curve (graphic), Factors affecting the position and slope of the LM curve.

Determination of National Income The Keynesian model for a simple two-sector economy, inflationary and deflationary

gaps, The concepts of multiplier, Interaction of the IS and LM functions and

derivation of the aggregate demand function, The impact of changes in public

expenditure, taxation and money supply on aggregate demand and the rate of interest.

Aggregate Supply and the Labour Market The aggregate production function, Demand for Labor in the short run, Labor market

and its Equilibrium: The flexible and sticky wage models, The imperfect information

model, The short-run aggregate supply function, The concepts of full-employment

and underemployment, Supply shocks and stabilization, Interaction of aggregate

demand and supply and price determination.

Inflation and Unemployment Types, causes and measurement of inflation, The structural and monetary approaches

to inflation, Global inflation and its impacts on developing economies, Transitory and

34

structural unemployment, The problem of unemployment with special reference to

Pakistan, The relationship between inflation and unemployment, Phillips curve in the

short-run and long-run, Remedial measures to combat inflation and unemployment. Recommended Books

• Shapiro, Edward – Macroeconomic Analysis- 7th Edition (2000) – Harcourt Brace Inc.

• Froyen, Richard–Macroeconomics: Theories and Policies–7th Edition (2002) – • Macmillan • Mankiw, Gregory N.- Macroeconomics -6th Edition (2007), Worth Publishers,

NY. • Blanchard, Oliver – Macroeconomics -2nd Edition (2000)-Prentice Hall

International. • Dornbusch& Fisher – Macroeconomics- 9th Edition (2004) - McGraw Hill Inc. • Pakistan Economic Survey (latest), Annual reports of the State Bank of

Pakistan, Federal and Provincial Budgets (latest).

COURSE TITLE: ECONOMETRICS-I


CREDIT HOURS: 03

Objectives The course is designed to enable the students derive relationship between economic

variables from the available data. The students should be in a position to apply

statistical methods to data via simple mathematical models and to interpret the results

by using economic theory. The students are encouraged to learn the use of simple

computer programs and econometric packages in handling data and to understand the

print outs. The teacher should expose the students to the use of computer in solving

simple econometric problems and assignments. Course Contents

Introduction Definition and scope of Econometrics, Economic theory as the basis for empirical

analysis, Mathematical and Econometric models, Application of Statistical techniques

to Economic data, Ingredients of Econometric modeling: Specification, Estimation,

Evaluation and Forecasting. The Classical Linear Regression Model (CLRM)

(a) The Simple Two-Variables Model Variables and parameters, Meaning of the explained and explanatory variables,

Estimators and estimates, Correlation and Regression theory, Mathematical

versus econometric model, Structure of the linear econometric model with two

explanatory variables, Rationale for inclusion of the disturbance term,

Assumptions of the model with special reference to the disturbance term, The

least squares principle, BLUE properties of the OLS estimators, The estimation

procedure, The economic interpretation of the estimated coefficients, Hypothesis

testing and the use of Z, t, F, test statistics, The confidence interval and tests of

significance approaches, The ANOVA technique, The explanatory power of the

model, Coefficient of determination vs. correlation coefficient: comparing

regression and correlation theory, Econometric forecasting and confidence

interval for the dependent variable against future value of the independent

variable, Important features of a good forecast, Extensions of the model: Time as

explanatory variable, Dummy variables, Estimation through the origin.

35

(b) The Multiple Linear Regression Model (MLRM) The general format of MLR model, Assumptions of model with special reference to independence of the explanatory variable, Estimation of model with 3-4 explanatory variables using the OLS procedure, Interpretation of the estimated coefficients, Computation of elasticities, The degree of freedom and adjusted R2, The explanatory power of the model and ‘Goodness of Fit’, Hypothesis testing in MLR, Overall significance of the regression and the use of F-statistics, Economic theory and econometric modeling.

(c) Deviation from the Classical Assumptions Assumptions of the classical model and economic reality, Relaxation of the

assumptions and estimation issues, Brief introduction to the nature of problems

and alternatives.

(i) Multicollinearity Linear relationship between any two explanatory variables, Nature and severity

of the problem, Distinction between perfect and partial Multicollinearity,

Properties of OLS estimators in the presence of collinearity, Detection of the

problem and remedial measures.

(ii) Heteroskedasticity Meaning of Heteroskedasticity, The nature of the problem with reference to

economic theory, Cross-section data and the problem of non-constant variances,

Consequences for OLS estimators, Detection of the problem and remedial

measures in brief, Introduction to the Generalized Least-Squares model (GLS).

(iii) Autocorrelation Autocorrelation and its causes, Time-series data and emergence of the problem

with reference to economic theory, The AR(1) process, Consequences of

Autocorrelation for OLS estimators, Detection of the problem and remedial

measures in brief.

The Simultaneous Equations Models Why Simultaneous Equations Models: Deviation from the classical assumptions, The

simultaneous equations bias, Various types and general format of simultaneous

equations models, Exogenous Endogenous variables, The structural and reduced-form

models, The identification problem, Formal rules for identification: The Order and

Rank conditions, The Indirect Least Squares (ILS),The Instrumental Variables and

Two-Stage Least Square(2-SLS).

Recommended Books • Gujrati, D.J. - Basic Econometrics – 4th Edition (2003)- McGraw Hill

Company. • Dougherty, Christopher – Introduction to Econometrics – 2nd edition (2002) • Oxford University Press. • Koutsoyiannis, A.- Theory of Econometrics - 2nd Edition (1977) - McMillan. • Wonnacot&Wonnacot –Econometrics – 2nd Edition (1970)-John Wiley, New

York. • Pindyck&Rubinfeld- Econometric Models & Economic Forecasts- 3rd Edition

(1992)- McGraw Hill Inc. • Maddala, G.S. – Econometrics - (1988) - McGraw Hill Company

36

THIRD YEAR: FIFTH SEMESTER

YEAR 3: SEMESTER –V

S. No COURSE

CODE


HOURS

CUMMULATIVE

CREDIT HOURS

25 ECON-511 Microeconomic Analysis 3 73

26 ECON-512 Managerial Economics 3 76

27 ECON-513 Agricultural Economics 3 79

28 ECON-514 Mathematical Economics II 3 82



TOTAL 18 88

COURSE TITLE: MICROECONOMIC ANALYSIS


CREDIT HOURS: 03

Objectives The course is designed for senior undergraduates. The objective is to confront them to

advanced theoretical concepts and rigorous analysis with mathematical tools at hand.

They have to develop the analytical skills and to enhance the capabilities to solve

somewhat complicated problems. As usual, the teacher is expected to draw examples

from the surrounding world for exposition.

The students may be given frequent assignments and exercises from the texts, which

may be discussed by the teacher in the class after submission. The students should be

motivated to use computer for solving the assignments.

COURSE CONTENTS:

1. Introduction

The Economic Problem, Basic economic agents, Microeconomics

and Macroeconomics, Types of Microeconomic Analysis, framework of

Microeconomics

2. Consumer Behaviour

Consumer Preferences Consumption bundle Axioms of consumer

preferences Budget Constraint Consumer choices o Utility

maximization subject to budget constraint o Marshallian demand function

(Concept, Derivation and Properties) o Indirect utility function (Concept,

Derivation and Properties) o Budget minimization subject to utility

constraint o Hicksian demand function (Concept, Derivation and

Properties) o Expenditure Function (Concept, Derivation and Properties) o

Duality between Hicksian and Marshallian demand functions, o Duality

between utility function and indirect utility function o Choice under

uncertainty (elementary treatment) o Consumption over Time (elementary

treatment)

3. Production Analysis

Constraints o Technical Constraints: Production, production process,

Types of inputs, concept of net output, production plan, Production set,

37

Few Concepts in describing technology; Iso-quants, Technical rate of

substitutions, Elasticity of substitution, Returns to scale, Elasticity of scale,

Homogeneous and homothetic technologies, Euler’s theorem,

Technologies with distinct outputs and inputs, Production function and

Classification of production functions; Fixed coefficients production

unction, Leoetief technology, Linear production function, Cob-Douglas

production function, Constant elasticity of substitution production

function, Transcendental logarithmic production function. o Financial

Constraints: Budget Constraint, Cost of Production, Economic Cost,

Private Cost, External Cost, Implicit Cost, Explicit Cost, Cost equation

and Cost Function. o Market Constraints: Price Constraints: price takers,

price regulations, sticky prices, minimum prices etc, Quantity Constraints:

Quota, Negatively sloped demand curve, kinked demand curve

4. Optimization o Profit maximization:

Profit equation, Input demand function (concept, derivation and

properties), Output supply function (concept, derivation and properties),

Profit function (concept, derivation and properties). o Cost minimization:

The cost minimization problem, Conditional input demand function

(concept, derivation and properties), Cost function (concept, derivation

and properties) o Revenue maximization: The revenue maximization

problem, Revenue function concept, derivation and properties)

TEACHING METHODOLOGY:

Lectures In Class Activities Written Assignments

TEXT AND REFERENCE BOOKS

1. Gravelle and Rees, Microeconomics, Third Edition, Pearson Education,

2. Varian H. R. Microeconomic Analysis, Third Edition, W.W. Norton and

Company, New York, 1992

3. Silberberg E. The Structure of Economics: A mathematical analysis,

Second Edition, McGraw Hill publishing Company, 1999

COURSE TITLE: MANAGERIAL ECONOMICS


CREDIT HOURS: 03

Course Contents Nature, Scope and Overview of Managerial Economics The Nature and Scope of Managerial Economics. The Managerial decision making

process. Theory of the firm. Profit maximization, Cost Minimization. Economic

optimization. Economic relations of variables. The Incremental concept in Economic

Analysis. Demand, Supply and Equilibrium. Demand Analysis: Estimation and Forecasting The Basis for Demand. The Market Demand function. Demand sensitivity analysis:

Elasticity, Price Elasticity of Demand with Managerial

applications. Income Elasticity of Demand with Managerial applications. Application

of Regression Analysis: Demand estimation. Demand forecasting.

38

Production and Cost Analysis Production functions. Total, Marginal and Average Product. Revenue and Cost in

Production. Production function estimation.Productivity Measurement.Homogenous

and Homothetic Production Function. Short run and long run cost curves. Learning

curves and application.Cost-value-profit analysis. Cost estimation.

Decision Making Under Risk and Uncertainty Introduction. Risk Analysis of Decision Alternatives. Adjustment for Risk in Decision

Making. The Expected Value Criterion. The Standard Deviation Criterion. The

Coefficient of Variation Criterion. The Certainty Equivalent Criterion. The Maximax

Criterion, Maximin Criterion and Minimax regret criterion. The Decision Tree and

Joint Probabilities. Optimal decision Strategy. Limit Pricing and Preventing entry. Pricing Analysis and Decisions A Review of Market Structures and Basic Pricing Models. Perfect Competition.

Monopoly. Monopolistic Competition. Oligopoly. Selected Pricing Models.

Marginalist Pricing. Mark up pricing. New Product Pricing. Oligopoly Model.

Contestable Markets. Pricing Strategies for Firms and Market Power. Monopolistic

Competition. Price Discrimination, Monopsony and Price Product. Managerial Theories and Models of the Firm Baumol’s Theory of Sales Revenue Maximization. Marris’s Model of Managerial

Enterprise. Williamson’s Model of Managerial Discretion Topics, Behavioral Model

by Cyert and March.

Public Sector Production and Pricing of Goods Public and Private Goods and their pricing mechanism. Decreasing cost Industry and

pricing. Externalities and Market Pricing issues. Rent seeking and control.

Government Policy and International Trade, tariff and pricing. Import

Competitiveness and tax, International pricing Techniques /Strategies. Capital Budgeting and Investment Pre-requisites of Capital Budgeting. Investment Criteria and Decisions. Cash flow

estimation, Internal Rate of Return, Profitability-Index Criterion and other criterion.

Optimal Capital Budget.

Recommended Books • Douglas, E. J., Managerial Economics, Prentice Hall, (1990). • Hirschey, M. Managerial Economics, (10th edition) U.S.A. Thomson South-

Western, (2003). • Hirschey, M. and J.L. Pappas; Fundamentals of Managerial Economics,

Dryden Press, (1998). • Kent P, and P Young., Managerial Economics: Economic Tools for Today’s

Decision Makers., (4th Edition) Pearson (2003). • Keat, P., and P., Young, Managerial Economics, MacMillan, (1992).

• Koutsoyiannis, A., Modern Microeconomics, MacMillan, (1979). • Mansfield E., (1998), Manageral Economics, Theory, Application and Cases.

W. W. Nortion& co. • Michael R., Baye (2000) Managerial Economics and Business Strategy,

McGraw Hills.

39

• Pappas, James, Brigham Eugene F and Hirschey Mark., (latest edition),

Managerial Economics, Dryden Press, Chicago. • Salvatore, D. Managerial Economics, McGraw Hill, (2001). • Thomas, Maurice., Managerial Economics: In a Global Economy (7th Edition)

New York: McGraw Hills, (2002).

COURSE TITLE: AGRICULTURAL ECONOMICS


CREDIT HOURS: 03

Objectives The course aims at equipping the students with the knowledge and skills required to

analyze the agricultural economic issues for efficient use of scarce resources in

agriculture sector and its development, consistent with the interest of all stake holders.

Course Contents

Introduction and Importance of Agriculture Agricultural Revolution, Importance of Agriculture, Food Safety, Agriculture vs.

Industrial development Debate.Current State of Agricultural Development.Brief

Overview of Sources of Growth.Introduction to issues in Agriculture etc. Structure and Characteristics of Agriculture in LDCs Traditional Agriculture and Productivity.Access to non-labor resources.

The Framing Environment: Natural Hazards and Economic Uncertainties. The Food

problem.Farm Size and Productivity.Farm Size in Pakistan and Productivity

Commercial Farms.Impact of Agricultural Reforms on Farm Size. Role of Agriculture in Economic Development A framework of Analysis.Product Contribution, Market Contribution, Factor’s

Contribution.Foreign Exchange Contribution.Agriculture vs. Industry Debate of

Development. Theory of Rent and the Concept of ‘Surplus’ Introduction.Economic Rent.The Theory of Rent. Rent and Quasi-Rent The Ricardian

‘Corn Rent. The Rental Market.Agricultural Surplus.Characteristics of

Landownership in Underdeveloped Agriculture and Pakistan.The Theory of Share

Tenancy.Some Extensions of the Share Tenancy Model.Tenant’s Status in

Pakistan.Agricultural productivity in Pakistan and use of inputs. Agriculture in Dualistic Development Models Introduction.The Lewis Model.The Ranis-Fei (FR) Model.The Jorgenson Model.

Kelley, Williamson, Cheetham Model. Criticism : Dual Economy Models.

Agricultural Adequacy; Mellor’s Model. Resource Use Efficiency and Technical Change in Peasant Agriculture. Efficiency of Resource Utilization.Technological Change in Agriculture.Generation

of new Agricultural Technology.Factor-biased Technological Change and its

Distributional Consequences. Agricultural Technical Change and Agricultural

Employment: Empirical Evidences. Agricultural Resources and Technical Change in

LDCs: with Special Reference to Pakistan.

40

Supply Response Introduction. The Cobweb Model: An Illustration. Price-Supply Response in

Backward Agriculture. A simple Supply Response Model.Supply Response in the

Underdeveloped Agricultural labour Market, Specifically in Pakistan. The Concept of

‘ Marketed Surplus’: Some Methods of Estimation.Some Criticisms of Krishna’s

Method and the Alternative Approach of Behrman Perennial Crops and Marketed

Surplus in Pakistan. Green Revolution in Pakistan and Responses. Present Status of

Green Revolution in Pakistan: Empirical Analysis.

Population and Food Supplies The Classical Model.Contra-Malthusian Model. Ecological Disequilibrium. Synthesis

of Population and Food Supply Theories.Malnutrition in Developing Countries like

Pakistan and Remedial Manners.Choice of Planning Strategy for Agriculture

Development, Agricultural Project Planning. Recommended Books

• Brown, Lester, The Social Impact of Green Revolution, New York, The

GreogieEndownment for International Peace, 1971. • Capstick Margret. The Economics of Agriculture, London George Allen

Unwin Ltd., latest edition. • Chaudhary M. Aslam, (1989), Agricultural Development and Public Policies,

Izhar Sons, Lahore.

• Ghatak S., and Ingersent K., Agriculture and Economic Development, (Latest

Edition), Harvester Press. • Johnston, Bruce, F &FellirKily. Agricultural and Structural Transformation,

Economic Strategies in late Developing Countries. • Khan Mahmood-ul-Hassan. The Economics of Green Revolution in Pakistan,

New York, Published 1975.

• Karamat, A., Political Economy of Rural Development in Pakistan, Lahore

Vanguard Book House, 1981.

• Shafi M., (1995), Pricing of Farm Produce in Pakistan, Objectives, Practices,

and Experiences. Print Associates International, Islamabad. • ThorbakeErike. The Role of Agriculture in Economic Development, New

York, Columbia University Press (1971). • Upton Marlin, Agricultural Production and Resource Use. • Colman D. and Young T., Principals of Agricultural Economics, Markets and

Prices in Less Developed Countries, (1989), Cambridge University Press. • Yujiro Hayami and Vernon W. Ruttan, Agricultural Development, John

Hopkin University Press, London. (Latest edition).

COURSE TITLE: MATHEMATICAL ECONOMICS-II


CREDIT HOURS: 03

Objectives Objectives: The course is designed for senior undergraduates more interested in

quantitative economics. The objective is to confront the students to advanced

mathematical techniques so as to enable them handle economic models, interpret the

results and solve complex problems.

41

The students may be given assignments and exercises from the texts and weekly or

fortnight class tests and quizzes including MCQ's.

Course Contents Complex Number and Circular Functions Imaginary and Complex Numbers, Complex Roots, Circular Functions, Properties of

Sine & Cosine functions, Eular and Maclaurin series, Alternative representation of

Complex Numbers. Integral Calculus Comparative Dynamics and Integration, The Nature of Indefinite Integrals, Rules of

Integrations and Operation: Substitution Rule, Integration by parts. Definite integrals

and their properties, Definite Integrals and Area under a curve, Improper integrals,

Economic Applications of Integrals: Finding total functions from marginal functions,

Investment & capital formation, Present value of cash flow, P.V. of a Perpetual Flow,

The Domar growth model. Differential Equations

(i) First Order Linear Differential Equations Meaning and Definition; Homogenous & non-Homogenous cases, Solution of

first order linear differential equations: with constant coefficient & constant term,

with variable coefficient and variable terms, Qualitative approach: Concept of

phase diagrams, types of time paths and the dynamic stability of equilibrium,

Exact differential equations: Solution and Verification, Non-linear differential

equations of the first order and first degree, Bernoulli Equation,

Separable Variables, Economic Application: Dynamics of market models, Solow

growth model. (ii) Higher Order Differential Equations

Solution and Verification of second order linear differential equations with

constant coefficients and constant terms, Real and imaginary roots, Distinct,

repeated roots and complex roots, Dynamic stability of equilibrium, Economic

applications: Market models with price expectations, The Interaction of inflation

and unemployment in continuous time, Higher order differential equations,

Convergence and the Routh theorem, Solution of simultaneous difference

equations.

Difference Equations

(i) First Order Difference Equations Meaning and definition, First order linear difference equations: Solution and

verification of results, Conditions for dynamic stability of equilibrium, Types of

time paths, Economic applications: The Cobweb model, Market model with

inventory, Model with price ceiling, Nonlinear difference equations, The

qualitative/graphic approach and phase diagrams. (ii) Higher Order Difference Equations

Solution and verification of second-order linear difference equations with

constant coefficients and constant terms, Real and imaginary roots, Distinct,

repeated and complex roots, The convergence and divergence of the time paths.

Economic applications: Models of business cycles, The Multiplier-Acceleration

42

interaction model, inflation-unemployment model in discrete time, Higher order

difference equations and their solutions, Convergence and the Schur's theorem,

Solution of simultaneous difference equations.

Non-Linear Programming The nature of non-linear programming, Non-linearities in Economics, Kuhn-Tucker

conditions and their interpretation, The Kuhn-Tucker Sufficiency theorem: Concave

programming, The Arrow-Enthoven Sufficiency theorem: Quasi-concave

programming, Economic applications: Utility maximization, Least-cost combination, Recommended Books

• Chiang A.C and Kevin Wainwright - Fundamental Methods of Mathematical Economics- 4th Edition (2005) McGraw Hill Publishing Company.

• Gandalfo, G – Economic Dynamics: Methods and Models – (1983 or Latest

Edition) • North Holland Publishing Company • Dowling Edward T. -Mathematics for Economics: Schaum Series

– (1981). • Weber E. Jean, Mathematical Analysis, Business and Economic Application

(latest edition), Harper and Row Publishers, Netherlands. • Hoy M., Livermois J, Rees R, Stengos T. - Mathematic for Economics –

(1996) - Addison & Wesley Publishers.

• Shone, R – Economic Dynamics: Phase Diagrams and their Economic

Applications- (1997)- Cambridge University Press.

43

THIRD YEAR: SIXTH SEMESTER

SEMESTER -VI

S. No COURSE

CODE


HOURS

CUMMULATIVE

CREDIT HOURS

31 ECON-521 Macroeconomic Analysis 3 91

32 ECON-522 Econometrics- II 3 94

33 ECON-523 Monetary Policy 3 97

34 ECON-524 Industrial Economics 3 100


36


COURSE TITLE: MACROECONOMIC ANALYSIS


CREDIT HOURS: 03

Objectives The course is designed for senior level undergraduate students. The objective is to

enhance their analytical skills and to clarify further their macroeconomic concepts

with quantitative tools at hand. They must have a strong theoretical foundation so as

to understand the real problems of the economy with particular emphasis on inflation,

unemployment, instability, deficit and debt etc. to which the developing countries are

confronted at present.

Homework: The students may be given frequent assignments and exercises from the

texts, Economic Survey, reports of the State Bank as well as from articles appearing

in the press. The students should be motivated to use computer for solving the

assignments.

Course Contents

Macroeconomics: The Classical Framework Ingredients of the Classical model: The Says law of markets, The Quantity theory of

money, The Marginal Productivity theory, Equilibrium in the goods and money

markets, A critical appraisal of the Classical model, Dichotomy in the economy. The Demand Management Economy The Keynesian framework, Characteristics of a depression economy, Innovations due

to Keynes: The consumption function, The liquidity preference function, Wage

rigidity in the labour market, The ISLM model, Mathematical derivation of the IS and

LM functions, The interaction of the goods and money markets in a closed economy,

The role of public sector investment, The multiplier effects of fiscal and monetary

actions, Derivation of the aggregate demand curve/function, Stabilization and the

relative effectiveness of fiscal and monetary policies, The Neoclassical critique of the

Keynesian model: the Keynes effect, the Pigou effect, the Real Balances effect, The

Keynesian-Neoclassical Synthesis. The Supply Side Economics Demand for and Supply of Labour, The wage rate determination, Rigidity versus

flexibility of nominal wage rate, The short-run Production function, Derivation of

44

Aggregate Supply under the Classical and Keynesian assumptions, The notions of

full-employment and under-employment, Scarcity of raw material and energy, The

supply side disturbances leading to stagflation, The problems of developing countries:

shortage of supply vs. deficiency of demand, The scope for structural changes (instead

of fine tuning) in developing economies. The Open Economy Macroeconomics Balance of Payments: Current and Capital account, The IS-LM-FB model due to

Mundell and Fleming, The case of a small open economy with special reference to

developing economies, The relative effectiveness of Fiscal and Monetary policies

under the Fixed and Floating exchange rate regimes, The Managed exchange rates

system, Determinants of the Exchange Rates, Devaluation and its impacts for

developing countries, Perfect and imperfect capital mobility, Problems of stabilization

in a global framework.. Macroeconomic Policy Debate Policy Actions: Active or Passive, Ignorance, Expectations and the Lucas Critique,

Conduct of Policy: Formula/Rule vs. Discretion, Distrust of Policy makers and

Political Process, Macroeconomics Policy: the Fiscal, Monetary and Commercial

policies, Policy formulation and

implementation in a world of uncertainty, Seignorage and Inflation: Monetarists vs.

Activists, the short-run and long-run analysis of the Phillips Curve, The expectation-

augmented Phillips Curve, The Perfect Foresight and adjustment. Growth and Business Cycles The accumulation of capital, Acceleration principle and the concept of steady state

growth path, The steady state conditions, The basic Neoclassical (Solow) growth

model, Golden rule for consumption and investment (capital accumulation), The role

of technical progress in growth, Introduction to the theory of Real Business Cycles:

Interpretation, Labor market, Technology shocks, Household Behaviour, the

persistence of output Fluctuations, Limitations of the Model. Recommended Books

• Branson, Willium – Macroeconomics: Theory and Policy – 3rd Edition (1989) or latest Harper and Row, New York.

• Froyen, Richard–Macroeconomics: Theories and Policies – 7th Edition (2002) • Prentice Hall • Gupta, G.S.- Macroeconomics: Theory and Applications- 2nd Edition (2004) • Tata McGraw Hill Publishing Company, New Delhi • Scarth, Willium,M – Macroeconomics: An Introduction to Advanced

methods- • 2nd Edition (1996)- Dryden Press: Harcourt Brace & Company. • Romer, David - Advanced Macroeconomics -(2001)- McGraw Hills, New

York. • Mankiw, Gregory- Macroeconomics- 5th Edition (2003)- Worth Publisher,

New York.

45

COURSE TITLE: ECONOMETRICS-II


CREDIT HOURS: 03 Objectives The course is designed for senior undergraduates more inclined towards quantitative

studies. The objective is to enable the students dive deep into complex problems of

the real world economic life. They have to understand data problems, to have good

grasp over advanced estimation techniques and to have the capability of inferring

results accurately. The students have to learn certain computer packages like SPSS, E-

views and Strata besides Excel.

Laboratory work: The students are required to devote at least one hour per week to

computer laboratory. They have to develop the capacity to read and understand papers

that appear in research journals. Course Contents

Overview of the Classical Regression Model The multiple regression (K-variable) model in matrix format, Assumptions of the model, The Least-Squares estimation procedure in matrix notation, Properties of the OLS estimators, Interpretation of the Beta coefficients (β1, β2,…., βk), Hypothesis testing using matrix approach, Forecasting in OLS model, Time as an explanatory variable, Regression on Dummy variables, Dummy variable trap, Chow test, Specification bias and Errors in variables, Estimation with endogenous lagged variables, Restricted Least Squares, The Generalized Least-Squares Model Deviation from the assumptions of the classical regression model, The problem of

heteroscedasticity, The GLS model in matrix format, Detection of the problem and

consistent estimators, The problem of autocorrelation: Autoregressive and Moving

Average processes, The Durbin-Watson statistics, Alternative estimation techniques. The Maximum Likelihood Estimators The likelihood function, Properties of ML estimators: consistency, Asymptotic

normality, efficiency, Comparison with OLS estimators, Instrumental variable (IV)

estimators Time Series Analysis Rationale for univariate analysis, ARMA and ARIMA Models, Comparison of

forecast based on ARIMA and regression models, Stationarity, Unit roots, co-

integration and error correction models, Introduction to Autoregressive Distributed

Lag models, ARCH models

Recommended Books • Johnston, J & John Dinardo- Econometric Methods – 4th Edition (1997) The

McGraw Hill Companies, Inc, Singapore.

• Intrilligator, M - Econometric Models: Techniques and Applications- N. J.

Prentice Hall, (Latest). • Judge, George G. et al - The Theory and Practice of Econometrics- (1988)

46

COURSE TITLE: MONETARY POLICY


CREDIT HOURS: 03

Course Importance

This course will discuss the impact of monetary policy on the individual behavior and

macro economy. The goal of this course is to develop and use a dynamic theoretical

model of monetary decisions and study how money and financial markets,

emphasizing the evolution and economic rationale of money and financial institutions,

determinants of the price level and interest rates, alternative monetary policies, and

international monetary relations.

Course Outline

Why Study Financial Markets. The Bond Market and Interest. The Stock Market. The

Foreign Exchange Market. Why Study Banking and Financial Institutions? Structure

of the Financial System. Banks and Other Financial Institutions, Money and Inflation,

Money and Interest Rates

Function of Financial Markets, Structure of Financial Markets, Debt and Equity

Markets, Primary and Secondary Markets, Exchanges and Over-the-Counter Markets,

Money and Capital Markets, Internationalization of Financial Markets

Meaning of Money, Functions of Money, Medium of Exchange Unit of Account,

Store of Value Evolution of the Payments System, Commodity Money, Fiat Money,

Measuring Interest Rates, Present Value, Four Types of Credit Market Instruments,

Yield to Maturity

Determinants of Asset Demand, Wealth, Expected Returns, Risk, Liquidity, Theory of

Asset Demand, Supply and Demand in the Bond Market, Demand Curve, Supply

Curve, Market Equilibrium, Supply and Demand Analysis, Loanable Funds

Framework, Changes in Equilibrium Interest Rates, Shiftsin the Demand for Bonds

Risk Structure of Interest Rates, Liquidity Income Tax Consideration, Expectations

Theory, Segmented Markets Theory, Liquidity Premium and Preferred Habitat

Theories

Computing the Price of Common Stock, The One-Period Valuation, The Generalized

Dividend Valuation Model, The Gordon Growth Model, The Theory of Rational

Expectations, Formal Statement of the Theory, Rationale Behind the Theory

The Bank Balance Sheet, Liabilities, assets, basic banking, general principal of

banning and management, liquidity management and the role of reserves, Asset

Management, Liability Management, Capital Adequacy Management

Insurance, Life Insurance, Property and Casualty Insurance, The Competitive Threat

from the Banking Industry, Application Insurance Management, Screening, Risk-

Based Premiums, Restrictive Provisions, Prevention of Fraud, Cancellation of

Insurance, Deductibles

Hedging, Interest-Rate Forward Contracts, Pros and Cons of Forward Contracts,

Financial Futures Contracts and Markets, Following the Financial News Financial

Futures, Application Hedging with Financial Futures, Organization of Trading in

47

Financial Futures Markets, The Globalization of Financial Futures Markets, Central

Banking and the Conduct of Monetary Policy

Origins of the Federal Reserve System, Federal Reserve System, Formal Structure of

the Federal Reserve System, Member Banks, Board of Governors of the Federal

Reserve System, Federal Open Market Committee (FOMC), Reserve System, How

Independent Is the Fed?

Four Players in the Money Supply Process, The Fed’s Balance Sheet, Liabilities,

Assets, Control of the Monetary Base, Federal Reserve Open Market Operations,

Shifts from Deposits into Currency

The Money Supply Model and the Money Multiplier, Deriving the Money Multiplier,

Intuition Behind the Money Multiplier, Factors that Determine the Money Multiplier,

Changes in the Required Reserve Ratio, Changes in the Currency Ratio, Changes in

the Excess Reserves Ratio, Additional Factors That Determine the Money Supply,

Changes in the Nonborrowed Monetary Base MBn, Changes in the Discount Loans

DL from the Fed

The Market for Reserves and the Federal Funds Rate, Supply and Demand in the

Market for Reserves, How Changes in the Tools of Monetary Policy Affect the

Federal Funds Rate, Open Market Operations, Discount Policy, Operation of the

Discount Window, Lender of Last Resort, Advantages and Disadvantages of Discount

Policy, Reserve Requirements,

Goals of Monetary Policy, High Employment, Economic Growth, Price Stability,

Interest-Rate Stability, Stability of Financial Markets, Stability in Foreign Exchange

Markets, Conflict Among Goals

Foreign Exchange Market, What Are Foreign Exchange Rates?Following the

Financial News Foreign Exchange Rates, Why Are Exchange Rates Important? How

Is Foreign Exchange Traded? Exchange Rates in the Long Run, Law of One Price

Intervention in the Foreign Exchange Market, Foreign Exchange Intervention and the

Money Supply, Foreign Exchange Desk, Unsterilized Intervention, Sterilized

Intervention, Balance of Payments, volution of the International Financial System,

Gold Standard, Bretton Woods System

The Role of a Nominal Anchor, The Time-Consistency Problem, Exchange-Rate

Targeting, Advantages of Exchange-Rate Targeting, Disadvantages of Exchange-Rate

Targeting, When Is Exchange-Rate Targeting Desirable for Industrialized Countries?

When Is Exchange-Rate Targeting Desirable for Emerging Market Countries?

Currency Boards, Dollarization

Quantity Theory of Money, Velocity of Money and Equation of Exchange, Quantity

Theory, Quantity Theory of Money Demand, Is Velocity a Constant? Keynes’s

Liquidity Preference Theory, Transactions Motive, Precautionary Motive, Speculative

Motive

Determination of Aggregate Output, Consumer Expenditure and the Consumption

Function, Investment Spending, Equilibrium and the Keynesian Cross Diagram,

Expenditure Multiplier, Role of International Trade, Summary of the Determinants of

Aggregate Output, The ISLM Model, Equilibrium in the Goods Market: The IS

48

Curve, Equilibrium in the Market for Money: The LM Curve, ISLM Approach to

Aggregate Output and Interest Rates

Factors That Cause the IS Curve to Shift, Factors That Cause the LM Curve to Shift,

Changes in Equilibrium Level of the Interest Rate and Aggregate Output, Response to

a Change in Monetary Policy, Response to a Change in Fiscal Policy, Effectiveness of

Monetary Versus Fiscal Policy, Monetary Policy Versus Fiscal Policy

Aggregate Demand, Monetarist View of Aggregate Demand, Following the Financial

News Aggregate Output, Unemployment, and the Price Level, Keynesian View of

Aggregate Demand, The Crowding-Out Debate, Aggregate Supply

Framework for Evaluating Empirical Evidence, Structural Model Evidence, Reduced-

Form Evidence, Advantages and Disadvantages of Structural Model Evidence,

Advantages and Disadvantages of Reduced-Form Evidence

The Lucas Critique of Policy Evaluation, Econometric Policy Evaluation, Example:

The Term Structure of Interest Rates, New Classical Macroeconomic Model, Effects

of

Recommended Books:

Mishkin, F. S. (2007). The economics of money, banking, and financial

markets.Pearson education.

Walsh, C. E. (2017). Monetary theory and policy.MIT press.

Friedman, B. M., & Woodford, M. (Eds.).(2010). Handbook of monetary

economics.Elsevier.

Levinson, M. (2014). The economist guide to financial markets: Why they exist and

how they work. The Economist.

COURSE TITLE: INDUSTRIAL ECONOMICS COURSE CODE: ECON-524

CREDIT HOURS: 03

Objectives The course analyzes the problems of the real economy that cannot be described within

the framework of a classical economic theory that is taught by traditional micro- and

macroeconomics. This course will cover all the three main fields of industrial

organization theory: the theory of a firm, the theory of imperfect competition, and the

theory of economic regulation. The students are presumed to be familiar with the

standard courses in micro- and macroeconomics at the graduate level. Course Contents Theory of a firm What is the firm and why is it organized? A firm as analternative to a market.

Transaction costs theory explaining appearance of firms. Production scale,

specialization level and advantages of firms as a means of production.Hierarchical

firm structure. Consumer Surplus and Public Welfare Estimation of public welfare within the framework of partial equilibrium

49

analysis.Quasilinear utility function and measure of public welfare.Compensated and

equivalent variations. Public welfare and Hicksian and Marshallian demand functions. Economic Theory of Bundling Bundling as a marketing tactics.Price discrimination and bundling.Heterogeneous

consumers. Pure components strategy, pure bundling strategy, and mixed bundling

strategy. Superiority of mixed bundling relative to pure bundling.Conditions for

mixed bundling strategy to be dominant over pure components strategy.Independent

distribution of reservation prices.Homogeneous consumers.Commodity bundling and

consumer surplus.

Mergers and Acquisitions.

Horizontal Mergers and Acquisitions Types of mergers and acquisitions: horizontal, vertical, conglomerates. Examples of

mergers and acquisitions within the last decade.Mergers of firms with identical

production costs. Condition of a merger profitability. Mergers of firms with differing

production costs.Reaction of a firm to a change in output by all other firms on the

same market. Condition of industry output increase, resulting from a merger.

Horizontal mergers and public welfare.Herfindal-Hirshman index as a measure of

public welfare.Condition under which horizontal merger results in higher public

welfare.

Vertical Mergers Effect of a vertical merger on output of final and intermediate products.Vertical

mergers and market foreclosure.Vertical mergers and profits of integrated and

unintegrated firms.

Product Differentiation Location Models Linear city, linear transportation costs. Quadratic transportation costs. Stability of

equilibrium states.Circular city.Welfare implications.

Differentiated Goods, Increasing Returns to Scale, and Monopolistic

Competition

Markets for differentiated goods. The problems solved by consumers and producers.

Market equilibrium under free entry conditions. Effects of fixed costs and market size

on product diversity and output.

Industrial Agglomeration Phenomenon of industrial agglomeration.Increasing returns to scale as a driving force

of agglomeration.External and internal mechanisms of increasing returns to scale. The

role of transportation costs. A simple model of industrial agglomeration: two regions,

two production factors (perfectly mobile workers and immobile farmers). Competition

and market size – the main factors affecting the process of industrial agglomeration.

Effects of transportation costs, fixed costs, a share of immobile factor on industrial

agglomeration.Stability of distributed and agglomerated equilibria.Multiple equilibria

and hysteresis. Economics of Innovations Model of the innovation process.Patent race.Market structure and innovation

efforts.Incentives for innovations.Socially optimal and market investments into R&D.

Patent life.

50

Imperfect Competition and Macroeconomics (1 lecture). Theories of business cycles. Increasing returns to scale and stability of economic

equilibrium. Price rigidity as a source of business cycles. Explanations of price

rigidities: kinked demand curve, menu costs. Market monopolization and price

rigidity.Small menu costs and large business cycles during economic booms and

busts. Externalities, corrective taxes, and market structure.Possibility of a negative effect of

Pigou tax on public welfare under monopoly. Theory of Regulation Public costs of monopoly.Subadditivity of cost function – a necessary and sufficient

condition for a natural monopoly.Economy of scale, concavity of a cost function and

subadditivity.Stability of a natural monopoly.

History of regulation after World War II. When should natural monopolies be

regulated? Demsetz competition for a market.Contestability of a market. Deadweight

losses, sunk costs and regulation. Regulation under complete information.Price

discrimination and nonlinear tariffs as a means of increasing efficiency of a regulated

monopoly.Peak-load pricing.Regulating monopoly under asymmetric

information.Exogenous mechanisms of regulation.Averch-Johnson

model.Endogenous mechanisms of regulation. The delegation and revelation

approaches. Analysis of Particular Industries and Enterprises. Airlines

Effects of deregulating air companies.“Hub and Spokes” system and its efficiency.

Theatres and restaurants Why in developed market economies there are queues in theatres, restaurants, etc.?

Network externalities in services consumption and nonmonotonicity of demand

function. Instability of equilibrium, corresponding to profit maximization, and

limitedness of prices and supply of services. Economics of Show Business Why relatively small number of people in show business, sports, book publishing, etc.

earn a lot of money and dominate on markets? Effect of imperfect substitution: lesser

talent is a poor substitute of larger talent. Dependence of demand function on quality.

Increasing returns to scale in show business production. Demand and supply

structure.Market equilibrium.Convexity of revenue function, depending on

talent.Continuous distribution of performers on talent, and rent dissipation.

Outstanding performer and rent value.

Recommended Books

• Adams W.J., and J.L. Yellen, 1976, “Commodity Bundling and the Burden of

Monopoly”, Quarterly Journal of Economics, vol. XC, 475-498. • Averch H., and L.L. Johnson, 1962, Behavior of the Firm under Regulatory

Constraint, American Economic Review, vol. 52, 1052-1069. • Baron D., 1989, Design of Regulatory Mechanisms andInstitutions, in R.

Schmalensee and R.D. Willig eds.: TheHandbook of Industrial Organization,

Elsevier North-Holland.

51

FOURTH YEAR: SEVENTH SEMESTER

YEAR 4: SEMESTER –VII

S. No COURSE

CODE


HOURS

CUMMULATIVE

CREDIT HOURS

37 ECON-611 International Economics 3 109

38 ECON-612 Research Methodology 3 112



41

ECON- Optional (Economics) 3

121

COURSE TITLE: INTERNATIONAL ECONOMICS


CREDIT HOURS: 03

Course Objective:

To understand international economic relations is the aim of this

course.Students acquire basic instruments for studying international trade patte

rnsand changes in income distribution generated by international trade.

Students will explain why countries trade and the gains from trade.

Students will understand and apply specific trade models such as

comparative advantage, factor endowment, and new models based on

increasing returns.

Students will apply these trade models to explain patterns of international

trade in goods and services.

Topic: 1

Introduction to International Trade

The relevance of international economics, The scope of international economics, The

role of trade, The role of international monetary relations, The mercantilist thesis on

trade, Three basic questions, Absolute advantage, Comparative advantage, The case

of Greek bananas, Comparative costs expressed in money, Opportunity cost.

International Equilibrium with Increasing Costs

Increasing opportunity costs, Community indifference, General equilibrium in a

single economy, A neoclassical demonstration of comparative advantage, Differences

in tastes as a basis for trade, Offer curves, International equilibrium, The terms of

trade, East-West trade.

The Heckscher-Ohlin Model and Alternative Trade Theories

The basic assumptions of the Heckscher-Ohlin model, The meaning of factor

intensity, Factor abundance, The main propositions of the Heckscher-Ohlin model,

The Rybczynski theorem, The Heckscher-Ohlin theorem, The Stolper-Samuelsom

theorem, The factor-priceequalization theorem, Empirical testing of the Ricardian

theory, The Leontief paradox,Explanations of the Leontief paradox, The specific

factors model, Empirical challenges totraditional theories, Increasing returns,

Monopolistic competition and international trade, Linder’s thesis, Technological gap

and product cycle

52

Growth and Trade

The nature of the growth process, The sources of economic growth, Classification of

technical progress, The effects of growth on small countries, The scenario, Factor

accumulation, Technical progress, The effects of growth on large countries, The terms

of trade effect, The effect of growth on social welfare, Growth in the world economy,

The Perbisch-singer thesis.

The Theory of Tariffs

Types of tariff, The partial equilibrium analysis of the tariff, The general equilibrium

analysis of the tariff: The small country case, The effects of the tariff on a large

country, Tariffs and world welfare, The tariff as a production subsidy plus a

consumption tax, Measuring the costs of protection, Effective protection, Empirical

evidence on effective e protection, The optimal tariff, Tariff wars in the 1930s, The

theory of domestic distortions, The infant-industry argument, Other economic

arguments for protection, Non-economic arguments for protection, Candle makers

Versus The Sun

Instruments of Commercial Policy and Customs Unions

Export taxes, Ghana’s export taxes on cocoa, Export subsidies, Quantitative

restrictions

International cartels, OPEC, The voluntary export restraint on Japanese autos,

Dumping, Other Nontariff barriers, The Poitiers plan, Highlights of U.S. tariff history

and trade liberalization, Preferential trading arrangements: some definitions, The

nature of preferential trading, The theory of the second best: a digression, An outline

of the theory of customs unions, An illustration of trade creation and trade diversion,

Consumption effects, Dynamic effects of customs unions, The common external

tariff, Common agricultural policy, Preferential trading among developing economies,

The free trade agreement between Canada and the United States.

The Foreign Exchange Market and The Balance of Payments

The basis of the foreign exchange market, Organization of the market, Exchange rate

systems, The international character of the foreign exchange market, Exchange risk,

Forward exchange, Covered interest arbitrage, The Eurodollar market, BOP:

Definitions and conventions, Balance of payments accounting The US balance of

payments, Reporting difficulties, Balance of payments equilibrium, Accounting

balances, The US trade balance, The international investment position, The

international investment position, The US foreign debt, The Balance of payments

problem: A basic model, The basic assumptions, International equilibrium, The

adjustment process, Countertrade, Temporary versus fundamental disequilibria.

The Price and Income Adjustment Mechanism

The partial equilibrium model, Schedules for imports and exports, Equilibrium in the

commodity markets, The effects of devaluation, Price elasticities of demand for

imports and exports, The J-curve effect, Supply and demand for foreign exchange,

Non-traded goods: A digression, The price-specie-flow mechanism, Effective

exchange rates, Real exchange rates, The effect of dollar appreciation on US textile

and apparel imports, The income adjustment mechanism: Income determination in a

closed economy, Income determination in an open economy, The foreign trade

multiplier, Devaluation: absorption versus elasticities, Policy mix for internal and

53

external balance, Foreign repercussions, Macroeconomic interdependence in the real

world, Direct controls Switching policies during the great depression.

Fiscal and Monetary Policy for Internal, External Balance and Exchange Rate

The IS-LM model, Balance of payments equilibrium: The external balance schedule,

The effects of fiscal and monetary policy, The compatibility of internal and external

balance, The assignment problem, Criticism of the fiscal monetary policy mix,

Payments imbalances and the supply of money, The monetary process, Flexible

versus fixed exchange rates: The theory of employment with flexible exchange rates,

The IS-LM model with flexible exchange rates, Exchange-rate overshooting,

Stabilization policy: a digression, Exchange-rate regimes and stabilization, The policy

mix of the first Reagan administration, Further arguments for and against flexible

exchange rates.

Recommended Books:

1. Chacholiades, Miltiades, International Economics*, (Latest Edition), McGraw Hill

Book

Company. New York. London

2. Caves Richard, E., and Jones Ronald W., World Trade 'and Payments: An

Introduction*, Latest

Editions.Lillie, Brown and Company, Boston.Toronto.

3. Donomick Salvatore B., International Economics*. (Latest Edition), Prenth:e Hall.

4. Grube! Herbert c., International Economics, (Latest Edition) Richard D. Irwin Inc.,

Honcwood,

lllihois.

5. PetcrHolindcr& Thomas A., Pugel., International Economics. 9lh Edition 1996.

6. Sodersten B. and Geoffry Read., (1994). International Economics, MacMillan

Press ltd

7. The Global Competitiveness, Report, 1999, World Economic 'Forum, Oxford

University

8. World Bank. World Development Report, 1986.Oxford University press.

COURSE TITLE: RESEARCH METHODOLOGY


CREDIT HOURS: 03

COURSE AIMS AND OBJECTIVE:

The course aims to learn about the basic concepts of economic research, various

research methodologies, both quantitative and qualitative. The students will learn about

the usage of various methodologies while conducting research on different topics. The

main tools and research techniques will be studied. It is assumed that the students have a

background in basic statistics and in economic thought and philosophy. The students will

also learn about certain specific computer software like SPSS, NUDIST and Ethnograph.

COURSE OUTLINES:

Formulation of Research Problem

Importance of Research Problem.

Sources of Research Problem.

Consideration in Research Problem.

Steps in Research Problem.

54

Review of Literature.

Formulation of objectives.

Establishing of Operational Definitions.

Variables

Introduction and Definitions of Variables.

Concept, Indicators, and Variables

Difference between Concept and Variables.

Types of Variables.

Measurement Scale

Why Measurement.

Qualitative and Quantitative Measurement.

Levels of measurements.

Scale and Types of Measurement Scale.

Validity and Reliability:

1. Meaning, Definitions and Concepts of Validity

2. Types of Validity

3. Meaning, Definitions and Concepts of Reliability

4. Factors effecting reliability of a research instrument

5. Methods of determining the reliability of an instrument

6. How to improve reliability

7. Types of reliability

Methods/Tools of Data Collection:

Interview Schedule

Questionnaire.

Focus Group Discussion.

Observation.

Survey method

Experimental method

Case study method

Case History Methods

Content Analysis

Focus Group Discussion

Thesis Writing:

Writing a research report

Developing an outline

Referencing

Writing bibliography


1. Alwin, Duene .F. (2007). Margins of Error; A Study of Reliability in Survey

Measurments. U.S.A : John Wiley & Sons, Inc.

2. Babbie, Earl. (2004). The Practice of Social Research. 10th Edition. Belmont: CA

Words Worth Publishing.

3. Jackson, Sherri.L. (2008). Research Methods: A Modular Approach. USA: Thomson

Higher Education.

55

FOURTH YEAR: EIGHTH SEMESTER

SEMESTER -VIII

S.

No

COURSE

CODE


HOURS

CUMMULATIVE

CREDIT HOURS

42 ECON-621 Applied Econometrics 3 124

43 ECON-622 Research Thesis /Report Writing +

One Optional Subject

06/03+03 130



COURSE TITLE: APPLIED ECONOMETRICS


CREDIT HOURS: 03

Course Contents Introduction to Windows 2000 and MS-Word Operating System, Performance Management, Desktop Management, Printer

Management, Internet Explorer, E-mail. MS-Word, using Advanced Formatting

Features, Sharing data with Word, Word Macros, Composing Models and

Mathematical Equations. PowerPoint and MS-Access (XP) Database Concepts, File Linkages, Data Retrieval, Data Editing/ Updating. Data

Transferring. SPSS and E-View Menu, Tool Bars, File Linkages, Dialog Boxes.Data Analysis, Analysis of

Variance.Simple and Multiple Regression Analysis, Formatting Reports, Creation and

Modification of Chart, Line Area and Pie Chart. Output Navigator Printing, Data

Editor Printing, Command Syntax Printing. Use of E-view for Model Estimation. Estimation of Production Function Use of Computer, SPSS, E-View to Estimate Production Functions. Cob-Douglas

Production Function, Constant Elasticity Production Function . Computer Applications: Demand – Supply & Equilibrium Estimation of Demand and Supply using E-View / SPSS. Aggregate Demand –

Aggregate Supply and Equilibrium. Model Building and Estimation Building Simple Econometric Models and Estimation.Single Equation Models,

Multiple / Simultaneous Equation Model.Interpretation of Computer Output. Project Appraisal and Computer Application Use of Computer Programming (Software), E-View etc. for Cost-Benefit Analysis,

Estimation of Present Values, Estimation of Economic and Social Benefits.Project

Appraisal Using E-View etc.Estimation of Cost Functions and Decision Making.

56

Econometric Analysis and Computer Applications Regression Functions.Estimation with Qualitative Variables Confidence Interval and

Hypothesis Testing. Estimation and Improving Model Estimates: Autocorrelation,

Estimation of Simultaneous Equations. Estimation of VAR and ARIMA Models.

Recommended Books • E-View Manual, (Learning help available with package (software)).

• Gimi, Carter and Annette, Marquis, with Karl Browning,

Mastering Microsoft Office XP Premium, Selection B.P.B., Publishers, New Dehli , (2001).

COURSE TITLE: RESEARCH THESIS


CREDIT HOURS: 06

AIMS AND OBJECTIVES OF THE RESEARCH THESIS/PROJECT:

As part of Four Years BS in Economics, students are required to complete a thesis under

the supervision of a supervisor or faculty member, who has a related scholarly interest. The

thesis/project is seen as a capstone experience for majors in that it allows them both to

explore research and analytical skills that they have learned earlier and to develop these

skills with direct application. In addition, in the process of research and writing, the student

develops new skills for the analysis that grow out of the first-hand research tasks. Finally,

the thesis process allows the department to assess how well it is doing in preparing students

for critical and creative thinking, and for professional or allied careers using their major.

The topic of thesis/project research is chosen in consultation between the student and the

faculty. Hands-on empirical research is encouraged, sometimes using available data sets --

including those developed through the surveys carried out in the Research Methods course

in the department -- and sometimes requiring the full initiation and carrying out of data

gathering in the form of a survey, participant observation project, content analysis or other

research method.

Format Guidelines for Four Years BS in Economics research project/thesis:

Arrangement of dissertation.

1. Each thesis must be arranged in the following order. Italicized pages are optional.

2. Signature Page Include this page in the pretext page count, but do not place a page

number on it.

3. Title Page Include this page in the pretext page count, but do not place a page number on

it.

4. Dedication and/or Epigraph. Include this page in the pretext page count, but do not

place a page number on it.

5. Acknowledgements and/or Preface. Begin placing pretext lowercase Roman numerals

at the bottom of this page, counting all preceding pretext material except for the fly page.

Page numbers are centered one inch from the bottom of the page.

6. Abstract Continue pretext page numbering with lowercase Roman numerals.

7. Table of Contents. Continue pretext page numbering with lowercase Roman numerals.

8. List of Tables. Continue pretext page numbering with lowercase Roman numerals.

9. List of Figures. Continue pretext page numbering with lowercase Roman numerals.

10. List of Illustrations/Maps/Slides. Continue pretext page numbering with lowercase

Roman numerals.

57

11. Text. All pages from the first page of text through the Vita are numbered consecutively

in Arabic numerals, beginning with Arabic numeral “1” on the first page of the thesis or

report text.

12. Appendix.Continue page numbering with Arabic numerals.

13. Glossary.May, instead, be placed after the Table of Contents in the area with the Lists

of Tables, List of Figures, etc. Continue page numbering with Arabic numerals.

14. Bibliography. Other possible titles are “References” or “Works Cited.” Continue page

numbering with Arabic numerals.

PAGE FORMAT AND LAYOUT

a. Font

A single font must be used throughout the thesis, the only exceptions being in tables,

graphs, and appendices. Headings may be bolded and no more than 2 points larger than the

rest of the text.

b. Margins

All theses and reports must have consistent margins of at least 1.25 inches at the top,

bottom, left, and right edges of the page. Page numbers must be placed at least one inch

from the bottom of the page. Margins which are larger than those required are acceptable,

but smaller margins are not.

c. Spacing

The thesis or report must be double-spaced or 1.5-spaced. Single spacing may be used only in

the Table of Contents, footnotes and endnotes, charts, graphs, tables, quotations, captions,

glossary, appendices, and bibliography. Prose quotations over three lines long should be in

block quote, double or single-spaced, and indented on the left. Do not use quotation marks in

the block quote except when indicating quotations within the block quote.

d. Numbering of Pages

Beginning with the first page of the Acknowledgements or Preface, if used, all preliminary

pages preceding the actual text must be numbered in lowercase Roman numerals; e.g., iii,

iv, v, etc. These numerals must be centered under the text with at least one inch of space

between the number and the bottom of the page. If no optional pages are used, the page

numbers must begin on the Abstract. Do not number the copyright page, signature page,

title page, or dedication, but do include each of them in the pretext page count. The first

page of the text begins at Arabic numeral 1. All pages within the text must contain an

Arabic page number, bottom-centered, at least one inch from the bottom edge of the page.

The first page of every major section (chapters, appendices, bibliography, Vita, etc.) must

begin on a new page.

e. Tables and Illustrations

Pages carrying illustrative material must be given page numbers appropriate to their place

in the document. Illustrative material may not be inserted after the document has been

numbered and given numbers such as “10a.” All tables, figures, illustrations, and other

types of examples included and referenced in the text of the dissertation should be

numbered for identification. There should be no duplication of these numbers; i.e., no two

tables should be assigned the same number. Figures may be numbered in one of two ways:

consecutively throughout the document (Table 1, Table 2, Table 3, etc.), or double-

numbered so that illustrations’ numbers reflect their locations in the document (Figure 9.3

is the third figure in Chapter 9, or Figure A2 is the second figure in Appendix A.) Captions

58

and legends must be placed on the same page with the figure, graph, table or illustration

they describe. In order to fit both figure and caption on the same page, captions may be

single-spaced, margins may be decreased to one inch, and figures may be reduced in size to

fit. If the figures are reduced from their original size, then the page number must be added

after the reduction so as not to alter its size. If there is no other way to manage the amount

of material to be shown, the caption and figures should be side-by-side in continuous view.

This method should only be used in the rare instance where all of the pertinent material will

not fit on the same page. Figures, captions, and page numbers must be easily readable when

the electronic document is viewed at 100 percent.

Footnotes and Bibliography

A Bibliography, or Reference, section must immediately precede the Vita at the end of the

thesis or report, even in theses where chapter end notes have been used. Bibliographies may

be omitted only in wholly original theses such as novels or musical compositions. The

bibliography must include materials used including the edition, if not the first, so the

citation can be readily verified. Footnote citations must be sufficiently exact to enable the

reader to find the source with ease. Any standardized form for footnotes and bibliography

approved by your supervisor is acceptable if followed consistently. Several useful manuals

for selecting a footnote/bibliography format include the Chicago Manual of Style.

Copies required:

All students who successfully accomplished writing up dissertation are required to submit

at least four copies in hard and one copy in soft to the supervisor or chairmen or head of

department.

Viva voice:

For a student to be eligible for the award of BS (Hons) in economics, it is necessary and

compulsory element and requirement for his/her dissertation assessment to appear before a

panel of internal supervisor and external examiner for a viva voice.

Recommended Books:

1. Denscombe, M (1998) the good research guide. Open University, Buckingham

2. Cryer, P. (1996) The Research students guide to success. OU Press

3. Kane, E. (1985) Doing your own research. Marion Boyars

4. Rudestam, K.J. & Newton, R.R (1992) Surviving your dissertation, Sage, London

5. Murray, R (2002) How to write a Thesis. Open University Press

6. Bell, J (1999) Doing your Research Project: A guide for first-time researchers in

Education and Social Science, 3rd edition. Open University Press

COURSE TITLE: REPORT WRITING


CREDIT HOURS: 03

AIMS AND OBJECTIVES OF THE RESEARCH THESIS/PROJECT:

As part of Four Years BS in Economics, students are required to write an internship based

report under the supervision of a supervisor or faculty member, who has a related scholarly

interest. The report is seen as a capstone experience for majors in that it allows them both to

explore research and analytical skills that they have learned earlier and to develop these

skills with direct application. In addition, in the process of report writing, the student

59

develops new skills for the analysis that grow out of the first-hand research tasks. Finally,

the report writing process allows the department to assess how well it is doing in preparing

students for critical and creative thinking, and for professional or allied careers using their

major.

The topic of report writing is chosen in consultation between the student and the faculty.

Hands-on empirical research is encouraged, sometimes using available data sets --

including those developed through the surveys carried out in the Research Methods course

in the department -- and sometimes requiring the full initiation and carrying out of data

gathering in the form of a survey, participant observation project, content analysis or other

research method.

Format Guidelines for Four Years BS in Economics report writing:

Arrangement of dissertation.

1. Each report must be arranged in the following order. Italicized pages are optional.

2. Signature Page Include this page in the pretext page count, but do not place a page

number on it.

3. Title Page Include this page in the pretext page count, but do not place a page number on

it.

4. Dedication and/or Epigraph. Include this page in the pretext page count, but do not

place a page number on it.

5. Acknowledgements and/or Preface. Begin placing pretext lowercase Roman numerals

at the bottom of this page, counting all preceding pretext material except for the fly page.

Page numbers are centered one inch from the bottom of the page.

6. Abstract Continue pretext page numbering with lowercase Roman numerals.

7. Table of Contents. Continue pretext page numbering with lowercase Roman numerals.

8. List of Tables. Continue pretext page numbering with lowercase Roman numerals.

9. List of Figures. Continue pretext page numbering with lowercase Roman numerals.

10. List of Illustrations/Maps/Slides. Continue pretext page numbering with lowercase

Roman numerals.

11. Text. All pages from the first page of text through the Vita are numbered consecutively

in Arabic numerals, beginning with Arabic numeral “1” on the first page of the thesis or

report text.

12. Appendix.Continue page numbering with Arabic numerals.

13. Glossary.May, instead, be placed after the Table of Contents in the area with the Lists

of Tables, List of Figures, etc. Continue page numbering with Arabic numerals.

14. Bibliography. Other possible titles are “References” or “Works Cited.” Continue page

numbering with Arabic numerals.

PAGE FORMAT AND LAYOUT

a. Font

A single font must be used throughout the thesis, the only exceptions being in tables,

graphs, and appendices. Headings may be bolded and no more than 2 points larger than the

rest of the text.

b. Margins

All theses and reports must have consistent margins of at least 1 inches at the top, bottom,

and right edges of the page, however, left side margin should be 1.5 inches. Page numbers

must be placed at least one inch from the bottom of the page. Margins which are larger than

those required are acceptable, but smaller margins are not.

60

c. Spacing

The thesis or report must be double-spaced or 1.5-spaced. Single spacing may be used only in

the Table of Contents, footnotes and endnotes, charts, graphs, tables, quotations, captions,

glossary, appendices, and bibliography. Prose quotations over three lines long should be in

block quote, double or single-spaced, and indented on the left. Do not use quotation marks in

the block quote except when indicating quotations within the block quote.

d. Numbering of Pages

Beginning with the first page of the Acknowledgements or Preface, if used, all preliminary

pages preceding the actual text must be numbered in lowercase Roman numerals; e.g., iii,

iv, v, etc. These numerals must be centered under the text with at least one inch of space

between the number and the bottom of the page. If no optional pages are used, the page

numbers must begin on the Abstract. Do not number the copyright page, signature page,

title page, or dedication, but do include each of them in the pretext page count. The first

page of the text begins at Arabic numeral 1. All pages within the text must contain an

Arabic page number, bottom-centered, at least one inch from the bottom edge of the page.

The first page of every major section (chapters, appendices, bibliography, Vita, etc.) must

begin on a new page.

e. Tables and Illustrations

Pages carrying illustrative material must be given page numbers appropriate to their place

in the document. Illustrative material may not be inserted after the document has been

numbered and given numbers such as “10a.” All tables, figures, illustrations, and other

types of examples included and referenced in the text of the dissertation should be

numbered for identification. There should be no duplication of these numbers; i.e., no two

tables should be assigned the same number. Figures may be numbered in one of two ways:

consecutively throughout the document (Table 1, Table 2, Table 3, etc.), or double-

numbered so that illustrations’ numbers reflect their locations in the document (Figure 9.3

is the third figure in Chapter 9, or Figure A2 is the second figure in Appendix A.) Captions

and legends must be placed on the same page with the figure, graph, table or illustration

they describe. In order to fit both figure and caption on the same page, captions may be

single-spaced, margins may be decreased to one inch, and figures may be reduced in size to

fit. If the figures are reduced from their original size, then the page number must be added

after the reduction so as not to alter its size. If there is no other way to manage the amount

of material to be shown, the caption and figures should be side-by-side in continuous view.

This method should only be used in the rare instance where all of the pertinent material will

not fit on the same page. Figures, captions, and page numbers must be easily readable when

the electronic document is viewed at 100 percent.

Footnotes and Bibliography A Bibliography, or Reference, section must immediately precede the Vita at the end of the

thesis or report, even in theses where chapter end notes have been used. Bibliographies may

be omitted only in wholly original theses such as novels or musical compositions. The

bibliography must include materials used including the edition, if not the first, so the

citation can be readily verified. Footnote citations must be sufficiently exact to enable the

reader to find the source with ease. Any standardized form for footnotes and bibliography

approved by your supervisor is acceptable if followed consistently. Several useful manuals

for selecting a footnote/bibliography format include the Chicago Manual of Style.

61

Copies required:

All students who successfully accomplished writing up dissertation are required to submit

at least four copies in hard and one copy in soft to the supervisor or chairmen or head of

department.

Viva voice:

For a student to be eligible for the award of BS (Hons) in economics, it is necessary and

compulsory element and requirement for his/her dissertation assessment to appear before a

panel of internal supervisor and external examiner for a viva voice.

Recommended Books:

7. Denscombe, M (1998) the good research guide. Open University, Buckingham

8. Cryer, P. (1996) The Research students guide to success. OU Press

9. Kane, E. (1985) Doing your own research. Marion Boyars

10. Rudestam, K.J. & Newton, R.R (1992) Surviving your dissertation, Sage, London

11. Murray, R (2002) How to write a Thesis. Open University Press

12. Bell, J (1999) Doing your Research Project: A guide for first-time researchers in

Education and Social Science, 3rd edition. Open University Press

62

LIST OF OPTIONAL COURSES

COURSE TITLE: FUNDAMENTAL OF ECONOMICS


CREDIT HOURS: 03






The Price Mechanism The concept of a market economy, Laws of demand and supply, schedules & graphs

of demand and supply, Market equilibrium and determination of price, Movement

along and shifting of demand and supply curves, Concept of elasticity of demand and

supply, Importance of elasticity.









market supply.









identities.





63







COURSE TITLE: INTRODUCTION TO MICROECONOMICS


CREDIT HOURS: 03














market supply.



COURSE TITLE: INTRODUCTION TO MACROECONOMICS


CREDIT HOURS: 03






64









identities.











COURSE TITLE: DEVELOPMENT ECONOMICS


CREDIT HOURS: 03

Objectives The Development Economic will help to establish both the conceptual base and the

analytical skills that are needed to harness local and regional economic change and

help develop the capacity of institutions as agents of development. Its key concern is

with the variety of ways in which national and regional governments and local

agencies may be mobilized, managed and co-ordinate with the private sector in order

to stimulate local economies. Students will also develop an understanding of the local,

national and international trends in business organization, and a knowledge of the

variety of agents that constitute the governance of local and regional economies. COURSE CONTENTS

1. An Overview of Development:

Historical experiences of developing countries

Broad conceptual explanation of underdevelopment

Economic Growth versus economic development

65

Comparative economic development

Emerging major issues of developing world

Basic theories of growth and development, and

Contemporary models of underdevelopment/development

3. Major Theories of Development Classical and Neo-classical Theories, Adam Smith and Competitive

Capitalism, Vicious Circle of Poverty, Stages of Economic Growth, Balanced

and Unbalanced Growth, Big Push Theory.

Dependency Theory, Structuralist’s View Point. Endogenous Growth Theory:

New growth Theory.

Income Convergence/Divergence debate.Market Friendly Approach.

2. Domestic Problems and Policies:

The nexus of poverty, inequality and underdevelopment

The distribution of wealth and resources

Poverty and nutrition

Demographic transition, population growth; its causes and consequences

Urbanization/rural-urban migrations; its causes and consequences

Human capital; education, health and development

Human Development Index

Agriculture and rural development

Land distribution

Environment and natural resources

Feudalism and Asiatic Mode of Production

Colonial Path and Asiatic Capitalism in South Asia

Agrarian class relations in Pakistan

Industrial relations in Pakistan

3. International Problems and Policies:

Trade/access to factor and product markets and development

Balance of payment problems

Debt, stabilization policies

International shocks, foreign finance

Foreign assistance and aids

International wars, conflicts and refugees

Migration and remittances

4. Markets and Development:

The role of markets in development,

Credit, financing, SME’s, industrial and trade policies, land, labor and

agriculture and livestock

Market failure and government intervention

Property rights and investment incentives

Technology adoption and learning

Stabilization policies

5. Institutions and Development:

What are the institutions?

66

Political institutions Versus economic institutions

The Role of Institutions in Development

The political economy and corruption

Democracy Versus dictatorship

Decentralization and federalism

Various tiers of government

Good governance, corruption

Rent seeking

Ethnic conflict

Gender inequality

Voting and lobbying

The role of civil society

The role of state for economic development

The Informal institutions and development

Social network and social capital

Various tiers of government

6. Alternative Theories of Economic Development

Culture Hypothesis

Geography Hypothesis

Institutions Hypothesis

TEACHING METHODOLOGY

Lectures Written Assignments Guest Speakers (if any) Group Discussion

Field Visits Report Writing/Case Studies Presentations

TEXT AND REFERENCE BOOKS:

1. Todaro, M. P. and S. C. Smith. (2011). Economic Development, 11th edition,

Palgrave.

2. Debraj Ray (998).Development Economics, Princeton University Press.

3. DaronAcemoglu and James Robinson (2012). Why Nations Fails:

COURSE TITLE: ECONOMIC GROWTH


CREDIT HOURS: 03

OBJECTIVES: This is an advanced undergraduate course in Economics, dealing with

theoretical and empirical examination of economic growth and income differences

between countries. The course focuses on both the historical experience of countries that

are currently rich and the process of catch-up among poor countries. Topics include

underlying determinants of economic growth, including population growth, accumulation

of physical and human capital, technological change, natural resources, income

distribution, geography, government, and culture.

COURSE OUTLINES:

. 1. Introduction

The Growth Game

The economics of Growth: Capital, Labor and Technology

67

The Historical Record: Kuznets Characteristics of Modern Economic

Growth

The Limited Value of Historical Growth Experience: Differing Initial

Conditions

2. Concepts and Methods of Growth Theory and Growth Accounting

Introduction

The Variables and Aggregation

Saving and Investment

Technology and the Economy

Rates of Growth

Steady Growth

A Brief History of modern Growth Theory

3. The Harrod-Domer Model of Economic Growth

Introduction

The Harrod Model

The First Harrod Problem

The Harrod Stability Condition

Domer’s Model of Growth

Harrod and Domer: Some Comparisons

4. The Neoclassical/Solow-Swan Growth Model

Introduction

The Assumptions

The Fundamental Equation of Neoclassical Economic Growth

Fundamental Propositions of Neoclassical Economic Growth

5. Two Sector Models of Economic Growth

Uzawa’s Two Sector Growth Model

The Fel’dman Model of Growth

6. The Cambridge Critics

The Capital Controversy

The Kaldor Model

The Pasitti Model

7. Optimal Growth, Dynamic Efficiency and Welfare

The Golden Rule of Accumulation

Optimal Growth: Concepts and Problems

The Keynes-Ramsey Rule

8. Theory and Models of Endogenous Growth

Human Capital Model

Research and Development Model

9. Growth in the Open Economy:

Autarky versus openness,

Globalization,

The effect of openness on economic growth,

Effects of geographical barriers,

Openness and factor accumulation,

Growth with capital mobility,

Openness and productivity,

Trade as a form of technology,

68

Openness and technological progress, and opposition to openness.

9. Fundamentals behind Economic Growth:

Government: Government’s role in economy,

Governance and rule of law,

Taxation,

Efficiency and the size of government,

Planning and policies,

Corruption and Kleptocracy,

Democracy and economic growth,

Causation from government quality to income.


Lectures In class activities Term paper (optional)


1.Jones, Hywel: An Introduction to Modern Theories of Economic Growth, Van

Nostrand Reinhold (UK) Co. Ltd. (Southampton)

2. Romer, D. (2006): Advanced Macroeconomics, McGraw-Hill (Boston)

3 Robert J. Barro and Xavier Sala-i-Martin: Economic Growth, The MIT Press

Cambridge, Massachusetts London, England.

COURSE TITLE: FISCAL POLICY


CREDIT HOURS : 03 Objectives This course will discuss the impact of Fiscal policy on individual behavior and the macro economy. The goal of this course is to develop and use a dynamic theoretical model of individual decisions and study how government tax and transfer policies, government debt and deficits affect these decisions. Course contents

Introduction

Fiscal Policy in Equilibrium Models

Goals of Macro-Economic Policy

Political Economy of Budget Deficits

. Tax Smoothing

Fiscal policy instruments as Automatic Stabilizers

Deficits and Interest Rate

Public sector

Role and size of public sector

Market efficiency, market failure, distributional concerns

Budget deficit

Facts about deficits and debts

The government budget constraint

Ricardian equivalence: origin, results and assumptions

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Economics of taxation

Taxation of income and wealth tax

Taxation and environment

Tax reforms

Consumption, labor and capital taxation

Intergovernmental fiscal relations and local government finance

Fiscal federalism and fiscal decentralization

Resource transfer

Fiscal policy and growth

Fiscal policies and growth models.

Fiscal situation of developing world.

Fiscal and social policy

Poverty, income distribution and scio-economic development

Fiscal and social policy issues

Third World Debt Crisis

Fiscal Policy and Long run Economic Growth

Fiscal Policy in Pakistan

Fiscal Policy and Resource Allocation in Islam

Recommended books

Atkinson A. B. and stiglitz J. E. “Lectures on Public Economics”

Rosen, S. (2002), public finance, 6th Edition Mc-Graw-Hill

Richard A. Musgave and Peggy B. Musgrave “Public Economics in Theory

and Practice”, Fifth Edition

Froyen, Richard T., Macroeconomics: Theories and Policies, (latest edition) ,

Prentice Hall International

Romer David, Advance Macroeconomics, (latest edition) Edition,

McGrawHill Irwin

Brown C.V. & Jackson P.M., Public Sector Economics, (latest edition), Basil

Blackwell,

COURSE TITLE: HISTORY OF ECONOMIC THOUGHT&PHILOSOPHY


CREDIT HOURS: 03

Objectives

This course evaluates the development of economic thought and philosophy through

the eyes of Ancient, Medieval, Greek, Romans and European traditions before

exploring economic philosophical thoughts in the context of the 20th Century . The

course is philosophical in content and international in perspective allowing students to

develop a critical understanding of the influence of evolving economic thought on

contemporary global economics.

Course Contents

Introduction Importance of Economic History and Philosophy

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Philosophical Approaches to Study Economics.

Ancient Indian Economic Philosophy.

Greek Economic Philosophy.

The Economic Philosophy of Islam. Mercantilists and the Physiocrats The Contributions of Mercantilists and the Physiocrats. A doctrine of economic

process, transition to liberalization: Wage theory to natural price, the task of

government. Overtime, Changing Role of Government. Classical School and its Economic Philosophy

Hume and Mill: Theory of Utilitarianism

Adam Smith: Theory of Moral Sentiment, The framework for classical economics.

Malthus and Ricardo :Theory of Population growth, The Labor Theory of Value. Bullin Debate. Ricardo’s Monetary Thought. The Theory of Rent. Profit Concepts of Colonization.

Socialism and its Economic Philosophy Socialism before Marx.English Socialists.

Anarchism.

Karl Marx’s Contributions.

The Class Struggle.

Criticism on Marx.Challenges to Capitalism.

German Historical School.

Weber’s contributions.

Neo-Classical Economics

Alfred Marshall; Framework of Neo Classical Economics

The Marginalist School, Neo-Classical Economics. Jeons Inference.

The concept of Welfare State.Chamberlin and Robinson.

Austrian School of thought.Veber and Galberith’s Contribution.

Pre 1914 variations to Neo-Classical Themes; Post script to NeoClassical

Economics Keynesian and Post Keynesian Economic Philosophy The Keynesian and Post Keynesian School, The Great Depression: Economic Policies and Capitalist Instability Between the World Wars. The 20th Century Paradigms. The Growth of International Economy.The Rise and fall of Post World War II.The American economic history and Lessons. i) The Emergence of Modern Economic Growth, Building Blocks, Industrial

Revolution, Structuralist and Dependency School of thought; Sunkel, Amir

Samer, Frank and others’ contribution. Technological Change and Impacts.

The Crisis of the 1970’s and International Responses.Failure of Trickle down

effects.Rational Expectation Revolution.Basic Needs Approach and

welfare.Emergence Famine and Poverty. ii) Modern Economic Thought. Comparison of Post Keynesian and Monetarist

71

Thoughts. Supply side economics. Globalization, Liberalization and New Weave

of Economic Growth and Welfare. New Growth Theory. Convergence and

Divergence Debate. Future of Economics, Quality and International Trade and

emergence of markets, New Regionalism, New directions of research.

Environment and sustainable growth. Recommended Books

• A History of Economic Ideas, (1959), Robert Lekachman, McGraw Hill

Company.

• Economic Theory in Retrospect, Blaug, (1978), Cambridge University Press.

• Frank A. G., (1998), Global Economy in the Asian Age, Univ., of California

Press.

• Henery John D., The Future of Economics, (1992), Black Wall Publishers. • Marx k., and Engles F., The Communist Manifesto, Peoples Publishing

House, Moscow, latest edition. • Rima Ingrid, Development of Economic Analysis, Routledge Publishers

(Latest ed.).

• Spechler, Martin C., (1990), Perspective in Economic Thought, McGraw

Hills. • The Main Current in Modern Economics (latest edition), The Free Press of

Glancer.

COURSE TITLE: MAJOR ISSUES IN PAKISTAN ECONOMY


CREDIT HOURS: 03

COURSE DESCRIPTION

This course gives an overview of economic issues of Pakistan. Starting from national

income accounts, it carries a detail description of all sectors of the economy.

Moreover it also highlights the main problems like poverty, inflation and

unemployment. The last section of this course describes the recent challenges to the

economy of Pakistan.

COURSE OBJECTIVES

The major objective of the course is to give the students the complete comprehension

o socioeconomic issues of Pakistan economy. The students will be able:

1. To have the familiarity with key features of socioeconomic problems and their

solutions in Pakistan

2. To understand the process of emerging issues in Pakistan economy

3. To analyze the programs dealing with issues in Pakistan economy

LEARNING OUTCOMES

Upon Successful Completion, the Students Should be able to:

IDENTIFY the challenges to the economy of Pakistan

UNDERSTAND the problems to the economy of Pakistan

HAVE knowledge about the state of economy.

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COURSE CONTENTS

1. Quick Review of National Income Accounts

GDP (Nominal and Real) and GNP

Measure of Inflation and Employment

Measures of Social Welfare

Beyond GDP

Basic Needs Approach

HDI Approach

2. Review of Alternative Models of Economic Management

Markets or Liberal Capitalism

Socialism or State Capitalism

Social Democracy or Mixed Economy

Islamic Economics or Islamic Capitalism

Pakistan’s Models of Economic Management

3. Agricultural Sector of Pakistan

1947-58: The Neglected Agriculture Sector

The Green Revolution and its Impacts

Evaluation of Green Revolution as Development Strategy

Critical Analysis of Land Reforms in Pakistan

Pakistan’s Agricultural Sector: Historical Perspectives and Implications

4. Industrial Sector of Pakistan

Composition of Manufacturing Sector

Process of Industrialization from 1947-58

The Development Decade of Ayub—1958-68

The Experimental Regime of Bhutto—1972-77

Zia Regime and back to the Basics—1977-88

Industry after Structural Adjustment Program—1988-onwards

Industrial Development in Pakistan: Factors and Development Programs

5. Fiscal and Monetary Policies and Inflation in Pakistan

Fiscal Developments

Structure and Trends in Revenue

Structure of Expenditures and Trends of Fiscal Deficit

Financing of Fiscal Deficit

New NFC Award and Medium-Term Budgetary Framework

Monetary Policy Management and Inflation in Pakistan

Understanding Monetary Data

Monetary Management

Financial Sector Reforms

Salient Features of Banking Sector

Inflation and its Causes in Pakistan

6. Public and External Debts in Pakistan

Difference between the two Debts

Is Debt Creation Always Bad?

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Concerns Regarding Pakistan’s Fiscal Deficit

Reforms to Bring Debt under Control

7. Structural Adjustment Program (SAP) and Pakistan

Globalization and Export of Development Thinking

Composition of SAP

Implementation of SAP in Pakistan

Evaluation of the Results of SAP

Did Pakistan Need to Go for SAP?

Why Does Pakistan Adopt IMF Program

8. Performance of Pakistan on Foreign Economic Front

Understanding BOP accounts

Trends in BOP

Composition of Exports and Imports

Historical Directions of Pakistan’s Trade Policy Regimes

Impacts of Structural Adjustment Program on Trade Policy

Dealing with Globalization and WTO

Impacts of Globalization on Poverty and other Socioeconomic Indicators

in Pakistan

Exchange Rate Regimes in Pakistan

The Weakening Currency of Pakistan

Why can’t Muslims Adopt a Common Currency?

9. Social Sector in Pakistan

Health Sector and its Issues

Education and its Issues

Gender Inequality

Regional Inequalities

Structure of Population

Population: Asset or Liability?

Urbanization and Housing Problems

Infrastructure Development

Poverty and Income Distribution

Measurement Issues of Poverty and Income Inequality

Trends in Poverty and Income Distribution

The Implications of Poverty and Income Disparity

Growth and Poverty?

Analysis of Poverty Alleviation Strategies

10. Recent Challenges Facing Pakistan Economy

Law and Order Situation

Energy Crises

Rising Circular Debt


Lectures

Group Discussion

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Guest Lectures (optional)

Term Paper (optional)

TEXT AND REFERENCE BOOKS

Zaidi, Akbar. Issues in Pakistan’s Economy, Oxford University Press,

Karachi. (Latest edition).

Ahmed, Vaqar (2017) Pakistan’s Agenda for Economic Reform, Oxford

University Press.

Hussain, Ishrat (2007) Pakistan: The Economy of an Elite State, Oxford

University Press, Karachi.

Saeed, Khawaja Amjed. Economy of Pakistan. Oxford University Press,

Karachi. (Latest edition).

Economic Survey of Pakistan (various issues) Federal Bureau of Statistics,

Government of Pakistan.

Rashid, Amjed and Barki, Shahid Javed (2016) Pakistan Moving the Economy

Forward. Oxford University Press, Karachi

COURSE TITLE: PHILOSOPHY OF ECONOMICS COURSE CODE: ECON-518

CREDIT HOURS: 03 Introduction:

Objectives

The objectives of the course is to provide an introduction (a) to parts of philosophy of

science (especially to the works of Karl Popper and ImreLakatos), (b) to parts of

economics (particularly standard microeconomics and general equilibrium theory) and

(c) to some philosophical work devoted specifically to economic methodology.

Course Contents

Methodology of Economics

Scientific method in economics,Induction in economics, Deduction in economics,

Boundries of economics, Positivism in economics, Problem of subjectivity in

economics, Historical method,Mathematical method, Statistical method, Philosophical

method

Economics and Metaphysics: The metaphysical foundations of various economic

theories: Materialisms and materialistic economic theories, Spiritualism and

spiritualistic economic theories

Economics and the Moral Philosophy

The relationship between Ethics and Economics, Utilitarianism in economics:

J.S.Mill, Pragmatic ethics and economics: John Dewey's theory of ethics and its

application in economics, Deontological ethics and its application in economics: A

study of the origion of postmodern theories economics theories, Religious ethics and

economics: Foundationalim and Altruism

Introduction to the Ancient and Medieval schools of Economics

Indian school of economics, Chinese school of Economics, Greek thoughts about

economics, Muslim school of economics, Medieval Western Scholasticism,

Mercantilism, Physiocrats

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Philosophical and critical analysis of the laws of economics

Law of Supply and Demand, Law of Absolute Freedom, CoaseTheorem,Game

Theory, Theory of Prisoner's Dilemma, Theory of Invisible Hand Game,Principle of

Absolute Advantage, Rule of Three Theorems, Pareto's Principle, Arrow's

Impossibility Theorem, Law of Diminishing Marginal Utility, Law of Equi Marginal

Utility (Law of Substitution)

A comparative and critical analysis of economic systems:

Capitalism, Marxism, Islam

Economics and the Political Philosophy: The study of the organic relationships

between Liberalism and Capitalism

Classical libralism, Scottish enlightenment and the emergence of Capitalism,

Ontological Liberalism and its contributions in the stability of Capitalist system,

Deontological Liberalism and Capital accumulation, Capitalist system, Global state

and the Clash of Civilizations, Methodology of Revolution: A study of the

methodology of Islamic, Capitalist and Communist revolutions

Economics and the Philosophy of History: Philosophical theories about social

change and economic development

Dialectical theory of social change and economic development, Evolutionary theory

of social change and economic development, Cyclical theory of social change and

economic development

Economics and the Critical Theorists:

History and Class Consciousness: Georg Lukacs,Cultural Hegemony: Antonio

Gramsci, Phenomenological Marxism: Herbert Marcuse, Capitalism and

Schizophrenia: Gilles Deleuze and Félix Guattari, Economic calculation

problem:Hayek, Levels and practices:LouisAlthussar, Capitalist system and the

culture of therapists:A study of Michal Focoult's criticism of western way of life

SUGGESTED READINGS

Maulana Syed Abul Ala Maududi ,Islama ur Jadeed Ma'shiNazriat,Islamic

Publications Lahore Balzer, W. and B. Hamminga, eds. 1989. Philosophy of

Economics, Dordrecht: Kluwer-Nijhoff

Backhouse, R.E. and B.W. Bateman, 2011. Capitalist Revolutionary: John

Maynard Keynes, Cambridge and London: Harvard University Press.

Barker, D. and E. Kuiper, eds. 2003. Toward a Feminist Philosophy of

Economics, London: Routledge.

Bonar, J. 1893. Philosophy and Political Economy, rpt. London: Allen &

Unwin, 1967.

COURSE TITLE: POPULATION ECONOMICS


CREDIT HOURS: 03

COURSE DESCRIPTION: This course familiarize the students with the basic

concepts of demography. The course aims to establish initial understanding of the

important demographic issues for instance, demographic processes, demographics

76

theories, population characteristics, methods of demographic analysis, and the

demographic transitions. In the latter part of the course the focus will be on the issues

such as urbanization, family change, population aging, and health related issues.

COURSE OBJECTIVES: 1. To provide the initial exposure of the important

demographic issues. 2. To enable the students to establish the linkages between

economic and demographic factors.

COURSE LEARNING OUTCOMES:

Upon Successful Completion, the Students Should be able to: UNDERSTAND

the importance of demography IDENTIFY the factors related to population policies

Acquire KNOWLEDGE of the population dynamics of Pakistan.

COURSE CONTENTS:

1. Introduction

1.1 Understanding Demography

1.2 Importance of Demography

1.3 Sources of Demographic Data

1.4 Processes of Demography

2. Theories of Population

2.1Mercantilist Perspective

2.2Malthusian Theory of Population

2.3The Marxist Perspective

2.4John Stuart Mill

2.5 Lujo Brentano’s Theory

2.6 Emile Durkheim’s Perspective

2.7 The Theory of Demographic Transition

2.8 Theory of Relative Income

3. Fertility

3.1Understanding the Concept

3.2Measuring Fertility

3.3Period Measures of Fertility

3.4 Cohort Measures of Fertility

3.5Fertility Trends

3.6 Fertility & Population Growth in Pakistan

4. Mortality

4.1Components of Mortality

4.2Measuring Mortality

4.3Differentials in Mortality

4.4Estimates of Mortality in Pakistan

5. Migration

5.1Definition & Measurement

5.2Causes of Migration

5.3Internal Vs International Migration

5.4 Individual & Social Consequences of Migration

5.5Migration Trends in Pakistan: Causes & Consequences

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6. Population Composition: Age & Sex Composition

6.1Measuring the Age Composition

6.2Measuring the Sex Composition

6.3Impact of Population Processes on the Age Composition

6.4 Impact of Age Composition on Population Processes

6.5The Dynamics of Age/Sex Compositions; Age-Stratification Theory

7 Population Growth & Ageing

7.1Demographic Composition of the Elderly

7.2Dynamic Scenarios, Biological & Social Aspects of Aging

7.3Implications for the Society

8. Urbanization

8.1 Demographic Components of Urbanization

8.2Internal Rural-to-Urban Migration

8.3Impact of Population Processes and Urbanization in Pakistan

9. Population Policy

9.1Need of Population Policy

9.2Influencing Population Processes

9.3Case Studies of Pakistan

RECOMMENDED BOOKS:

1.Weeks J. R, Population. An Introduction to Concepts and Issues(latest edition).

Wadsworth Publishing Company, USA.

2.Poston D. L.& L. F. Bouvier. Population and Society: An Introduction to

Demography, (latest edition), Cambridge University Press, UK.

COURSE TITE: INTERNATIONAL FINANCE


CREDIT HOURS: 03

Objectives:

International Finance is built on belief to understand the international economy,

students need to learn how economic models are applied to real world problems. This

subject develops a unified model of the international macroeconomy. The text

provides detailed descriptions of major macroeconomic variables, covers the interest

rate parity and purchasing power parity theories of exchange rate determination, takes

an exhaustive look at the pros and cons of trade imbalances and presents the well-

known AA-DD model to explore the effects of fiscal and monetary policy under both

fixed and flexible exchange rates. Course Contents: International Finance

Course Outline:

1. Introductory Finance Issues: Current Patterns, Past History

2. National Income and the Balance of Payments Accounts

3. The Trade Imbalances

4. Foreign Exchange Markets and Rates of Return

5. Interest Rate Parity

6. Purchasing Power Parity

7. Interest Rate Determination

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8. National Output Determination

9. The AA-DD Model

10. Exchange Rates and its management

11. Policy Effects with Floating Exchange Rates

12. Policy Effects with Fixed Exchange Rates

13. Short and long term financing

14. International finance in context of Pakistan

Recommended Books: 1. Steve Suranovic, International Finance: Theory and Policy latest edition

2. Madura, International Financial Management 8th , Ed. Thomson/Southwest

COURSE TITLE: ENERGY ECONOMICS


CREDIT HOURS: 03

Course Description: This course is the study of economic relationships in energy

production, consumption, demand and supply, pricing and conservation, energy

policy and the development of new and renewable energy sources. This course aims

to provide students with the opportunity to study and develop a broader understanding

of the economics of energy. There is mounting evidence that the current global energy

system has been growing far beyond what is globally sustainable and already poses a

serious, and potentially irreversible, threat to global environmental quality and

stability in future decades.

Course Outline:

Overview and Fundamental Concepts:

Energy in the Economy; Global Energy Problems and Issues, Fundamental Concepts:

Energy, Power;

Measuring energy:

units and conversion factors, Laws of Thermodynamics, 1st Law and Entropy law,

Input and output energy, energy efficiency, Energy conversions (technologies),

Global Energy system sustainability issues, Energy markets and energy prices;

competitive market valuation and social valuation,

Market Failures:

Market power (monopoly, oligopoly, and cartels), Externalities, Public goods and

common property resources. Oil Resources and Economic Issues: Discounted cash

flow analysis, reserve and resources, resource substation, forecasting prices and

speculation, Natural resource (oil) demand and supply, OPEC.

Overview of Energy Economics and Global Energy Sustainability:

Primary energy supply, secondary energy and energy end use demand/consumption,

Energy, economic activity, and growth: energy intensity, global energy use forecasts,

Energy conversion, energy transportation and/or transmission, and clean energy use,

Conditions for a sustainable global energy system, climate change and clean energy

Clean Energy Supply from Non-Conventional,

79

Alternative and Renewable sources:

Climate change and primary and secondary energy use, Energy Conservation

policies, demand side management, Non-conventional and renewable alternative

energy: Solar, Biomass, Wind, Geothermal, Tidal & other, Hydrogen energy,

fuel cells Energy Supply from Non-Renewable Fossil Fuel Resources:

Fossil fuel resources and reserves model, Cartel models of global energy markets,

Overview of Oil, Natural gas, and Coal industries, Backstop technologies and Non-

renewable resource Pricing (Hotelling model), Clean fossil fuel use; carbon

sequestration

Energy Conversion and Supply by Electric Utility Industries:

Electric Power demand and load duration vs. Electric energy consumption, time-of-

use, Electricity production technologies and electricity production cost trade-offs,

Thermal, hydro, nuclear and renewable production and transmission of electricity,

Electricity pricing issues, regulation and deregulation issues, Nuclear energy issues

and prospects. Sustainable Energy Policy Jaccard’s Sustainable Energy System in

2100, Energy Policy of Pakistan, Sustainable energy options and criteria for

comparison, Sustainable Energy Policy Alternatives and Climate Change,

International Policy Initiatives.

Textbook:

1. Mark Jaccard, Sustainable Fossil Fuels: The Unusual Suspects in the Quest for

Clean and Enduring Energy, Cambridge University Press (2005)

2. Subhes C. Bhattacharyya Energy Economics Concepts, Issues, Markets and

Governance Springer-Verlag London Limited (2011)

3. J. M. Griffin, and H. B. Steele (1985): Energy Economics and Policy, Academic

Press

4. Tom Tietenberg and Lynne Lewis Environmental &Natural Resource Economics

Pearson Education, Inc., 9 th Edition 2012

COURSE TITLE: LABOR ECONOMICS


CREDIT HOURS: 03

COURSE DESCRIPTION

This course is aiming to provide an exposure of the functioning of labour market. This

course is expected to impart the skills essentially needed to understand the topics like

labour demand and supply, wage determination, labor migration, unemployment, and

the role of labor unions.

COURSE OBJECTIVES:

1. To understand the dynamics of labour market.

2. To understand the employment decisions initiated by the firm.

3. To understant the mechanism of wage determination.

4. To analyze the causes of unemployment for potential policy interventions.

COURSE LEARNING OUTCOMES:

Upon Successful Completion, the studentmust be able to:

UNDERSTAND that how firms make decisions about their need for workers,

80

how workers make labour supply decisions and how wages and other benefits

are determined

IDENTIFY role of migration and labour unions Acquire

KNOWLEDGE of relevant public policies, such as minimum wage.

COURSE CONTENTS

1. Introduction

Introduction of the labour market

Important actors of the labour market

Importance of the understanding of the labour market.

2. Labour Supply

Defining and measuring the labour force

Factors behind labour supply

Understanding the worker’s preferences

Derivation of labour supply curve

Measuring the elasticity of labour supply

3. Labour Demand

The production function

Employment decisions by the firm and factors related to

these decisions

Cost adjustment and labour demand

The effect of minimum wage on labour demand

4. Labour Market Equilibrium

Labour market equilibrium in a competitive environment

Competitive equilibrium across labour markets

Economic impact of labour force migration

The cobweb model in labour market

Non-competitive labour markets

5. Compensating Wage Differentials

The Market for risky jobs

Hedonic wage estimation

Safety and health regulations

Compensating wage differentials

Health insurance and labor market

6. Human Capital

Education and labour market

Present value of education

The schooling model

Education and earning

On-job trainings

7. The Wage Structure

The earnings distribution

Explanation of wage inequality

81

Family migration

The job match

Job turnover and retention policies

8. Labour Market Discrimination

Race and gender based discrimination in labor market

Estimation of the coefficient for discrimination

Employer discrimination

Employee discrimination

Discrimination among other groups

9. Labour Unions and Collective Barganing

Labour union: background and facts

Determinants of union membership

Unions and monopoly

Efficient bargaining

Strikes

Wage and non-wage effects of union

Unemploymet

Types of unemployment

Mismatching and unemployment

Unemployment compensation

Intervention in labour markets and unemployment


Lectures

In Class Activities

Group Discussion

Guest Lectures (optional)



Borjas, George J. (2008). Labor Economics. McGraw-Hill/Irwin.

McConnell et al. Contemporary Labor Economics, (latest edition),

McGrawHill/Irwin.

R. Ehrenberg and R. Smith. Modern Labor Economics, (latest edition),

Addison Wesley.

COURSE TITE: FINANCIAL MARKET


CREDIT HOURS: 03

Course Contents Theory of the Role and Functioning of Financial System Information asymmetric and the need for the role of financial sector.Some Basic

concepts like adverse selection, moral hazard, free rider and principal-agent problems

in financial sector to understand puzzles of financial markets.Financial system and its

relationship with the rest of the economy. Functions of financial sector: mobilization

and allocation of resources; pooling, diversification and trading of risk; advisory role;

82

financing technological innovation and development. Financial Repression vs

Financial Liberalization.

Growth and stability of financial system. Why there is need to regulate the financial sector? Why financial sector is most

regulated one in an economy? State Bank of Pakistan and its main functions: conduct

of monetary policy; promotion, establishment, regulation and supervision of

depository institutions; exchange rate policy and management of foreign exchange

reserves; Payment System (NIFT And its functions. Relating to payments system).

Securities and Exchange Commission of Pakistan and its functions: promotion,

establishment, regulation and supervision of various components of capital market .

Financial Institutions and Current issues i) Scheduled Banks and their role in economic development of Pakistan:

Introduction to commercial banking; structure of commercial bank in Pakistan;

Assts and Liabilities of a commercial bank; performance indictors for commercial

banks; recent issues in commercial banking. ii) Non-bank Financial Institutions: Development Financial Institutions, Investment

Banks, Modarbas, Leasing companies, Mutual Funds, Housing Finance

Corporations, Discount Houses, Venture Capital Companies.

iii) Micro Finance Institutions, SME Banks

iv) Insurance Companies – the rationale and role.

Financial Markets and Current Issues i) Functioning of Money Market (Primary and Secondary Dealers

ii) Capital Market (Stock exchanges and Various Components of capital markets –

Securities, equities, bonds, debentures) iii) Foreign Exchange Market and its evolution, dollarization of the economy.

Financial Infrastructure Legal Framework (SBP Act 1956, BCO, 1984, SBP Prudential Regulations),

Accounting Standard, Auditing, Corporate governance of banks and other financial

institutions. Human Resource Development|(Skill and Training) – Importance for

functioning of financial sector. Electronic Banking and its prospects

Recommended Books • Fabozzi, F. and Modigliani, F. Capital Markets. 2nd edition. Prentice- Hall

London (1996).

• Mishkin (2003), The Economics of Money, Banking, and Financial Markets.

7th edition.

• Ritter, L. S. and Peterson, R.L. Financial Institutions and Financial Markets.

9th edition. New York. Basic Books. • Arby, Muhammad Farooq (2004), “Functions, Evolution and Organization of

State Bank

COURSE TITLE: POLITICAL ECONOMY


CREDIT HOURS: 03

Course Contents Introduction

Meaning, Definition and brief Introduction of basic Concepts of Political Economy.

Economic and Political Integration. Policy Reform and Popular Organization, key

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Economic indicators. Political and Economic Institutions and their role in decision

making. Linkages of Politics and Economics. Conceptualizing the Changing Global

Order.

Political Economy and Laws of Economics Law of Supply and Demand, Law of Absolute Freedom, Coase Theorem, Game

Theory, Theory of Prisoner's Dilemma, Theory of Invisible Hand Game, Principle of

Absolute Advantage, Rule of Three Theorems, Pareto's Principle, Arrow's

Impossibility Theorem, Law of Diminishing Marginal Utility, Law of Equi. Marginal

Utility (Law of Substitution)

Political Economy and the Critical Theorists: History and Class Consciousness: Georg Lukacs, Cultural Hegemony: Antonio

Gramsci, Phenomenological Marxism: Herbert Marcuse, Capitalism and

Schizophrenia: Gilles

Political Economy and World Order Scottish enlightenment and the emergence of economics ,Ontological Liberalism,

Deontological Liberalism, Capital accumulation, Problem of Power and Knowledge:

New Millennium, Knowledge, Politics and Neo-Liberal Political Economy. New

Voices in the Globalization Debate: Green Perspective, Regional Phenomena and

State Order, New State Actors, Theory of Exclusion.

Regional Dynamics Regionalism and Globalization, The Political Economy of European Integration,

Regionalism in the Asia-Pacific Political Globalization and the Competition State.

Global Issues Global Issues in Historical Perspective, Capital Mobility and Global Order, Opening

up of Services Sector and its benefitries. Will there be free mobility of factors of

production? Capital, labor and entrepreneurs etc. Multinationals: Objectives,

Contribution and their Mobility. Emerging World Financial Order.The Group of

Seven and Political Management of the Global Economy

Recommended Books • Azhar, H. Nadeem (2002), Pakistan: The Political Economy of

Lawlessness, Oxford University Press.

• Gupta, S. Dev, The Political Economy of Globalization, Kluwer Academic

Publishers. (Latest eds.)

COURSE TITLE: INSTITUTIONAL ECONOMICS


CREDIT HOURS: 03

Objectives: A course in "Institutional economics" accomplishes a series of courses

that constitute the basic training for economists. Before studying institutional

economics students should master not only the fundamentals of general economic

theory but have knowledge of the historical courses and humanities as well. Pre-

Requisite: It is assumed that the students should be familiar with the following

84

courses: Microeconomics and Macroeconomics, game theory, industrial organization,

economic history and history of economic thought.

1. Introduction to institutional analysis;

The concept of institution: attempts at definition. Institutions and organizations.

Functions of social institutions. Interaction situations and the types of norms:

prisoners' dilemma-type situation; co-ordination situation; inequality situation.

Enforcement characteristics. Institutional structure of a society. Formal and

informal institutions. Sanctions for disobeying norms (self- enforcing sanctions,

guilt, shame, informational sanctions, bilateral costly sanctions, multilateral

costly sanctions). Conditions of norms' effectiveness. Interaction of formal and

informal institutions. The limits of imitations of institutions from best-performing

countries. The problems of their enforceability. The New Institutional Economics

and modern institutionalism. Old institutional economics.

2. Transaction costs:

The concept of transaction. Market and intrafirm transactions. Transaction costs

as friction in the economy. Transaction costs and transformation costs.

Interdependency between transaction costs and transformation costs. Types of

market transaction costs and means of transaction costs minimization (search and

information costs; measurement costs; bargaining and decision costs; supervision

and enforcement costs). Comparative advantages and shortcomings of the legal

enforcement mechanism. Reputation as a contract enforcement device. Ideal

model of "perfect reputation". Shortcomings of the reputation as a contract

enforcement mechanism. Reputation and the "free rider problem". Reputations

aided by institutions. Contract enforcement in contemporary Russia.

3. The definition of property rights.

Property rights in different legal traditions (common law and civil law traditions).

The property rights approach: some basic concepts. Specification of property

rights, the bundle of rights, partitioning of property rights, attenuation of property

rights. Assigning of property rights: the internalization of externalities. The Coase

Theorem. Critic of Coase (dynamic effects of alternative legal rules, wealth

effect, distributional effects, strategic behavior and the problem of holding-out,

endowment effect, sociological critic, unrealistic assumption about zero

transaction costs). Alternative property rights regimes. Common property (open

access) and the tragedy of the commons. Exclusive property rights and the

conditions for their emergence. The first economic revolution. Communal

property. Optimal group size. Private property. Moral and economic aspects of

private property. Public property. The emergence of property rights. The

optimistic theory of the emergence of property rights (naive model). The interest-

group theory of property rights. The costs of collective action. The theory of rent-

seeking. Interest-groups and rent-seeking in the Russian economy.

4. Contracts: The definition of a contract.

Legal and economic approach to contracts. Freedom of contract. Bounded

rationality and contractual incompleteness. Asymmetric information (hidden

characteristics, hidden information/ hidden action, hidden intentions) and

opportunistic behavior. Adverse selection and the closing of markets. Signalling,

85

screening and self-selection. Asset plasticity and moral hazard. Principal-agent

problem and agency costs. A simple principle-agent experiment in the classroom.

Controlling and preventing moral hazard (controlling the agent, incentive

contracts, bonding, do-it-yourself method). Case study: crisis of the savings and

loan associations in America as an example of moral hazard in financial markets.

Attributes of transactions and the choice of a contract. Asset specificity, types of

specific assets. Synergy effects, quasi-rents appropriation and hold-up problem.

Classification of contracts (classical, neoclassical and relational contracting).

Discrete alternative governance structures: market, hybrids and hierarchy. Self-

enforcing agreements (Telser) and hostages (Williamson). Hybrids: specific

assets and their safeguards. Institutional environment and its role in the choice of

contract. GM and Toyota: different models for solving the problem of safeguards

for specific investments. The role of trust. Economic approach to trust. Kreps: the

trust game. Types of trust (contractual trust, competence trust and good will

trust). Explaining the internal structure of formal organizations: transaction costs

approach.

5. The new institutional theory of the firm:

Neoclassical theory of the firm. Explanations of the firm in the new institutional

theory (F. Knight, R. Coase, A. Alchian and H. Demsetz, O. Williamson, O.

Hart). The market and the firm. Comparative analyses of the alternative

coordination forms. Internal market and influence costs. The boundaries of the

firm. Ownership structure of the firm. A theory of the owner-monitor. Competing

forms of economic organization, relative advantages of alternative structures

(proprietorships, partnerships, open corporation, regulated firms, public

enterprises, nonprofit organizations, labor-managed firms). Separation of

ownership and control in the open corporation. Opportunistic behavior of the

managers and corporate control. Outsider and insider corporate governance.

Privatization in Russia and other transition economies: how to control the

managers.

6. The new institutional theory of the state:

Social mechanisms for constraining open access. Contractual theories of the state

(Locke, Rousseau), Hobbes predatory theory of the state. North's model of the

state. The regulatory role of the state in the Russian economy.

7. The theory of institutional change:

Stability of institutions and institutional change. The concept of institutional

equilibrium. The main sources of institutional change. Centralized and

spontaneous institutional change. The role of the state in the process of

institutional change. The problem of compensation of the disadvantaged groups.

Theories of selection of efficient institutions in the process of competition

(Alchian, Friedman). Institutional change and path dependence. Forms of path-

dependence (weak form, semi-strong and strong forms). Institutional change in

contemporary Russia.

Recommended Books:

1. Elinor Ostrom, "Understanding Institutional Diversity" latest Edition, Princeton

University Press

2. Marc Tool, "Institutional Economics Theory, Method, Policy" Latest Edition

86

3. Akerlof G. A. (1984) The Markets for "Lemons": Quality Uncertainty and the

Market Mechanism" 84 Quarterly Journal of Economics, pp. 488-500

4. Milgrom P., Roberts (1992) J. Economics, Organization and Management. -

Prentice-Hall Int.,. 13. North D. (1990) Institutions, Institutional Change and

Economic Performance. Cambridge University Press,

COURSE TITLE: NATURAL RESOURCE & ENVIRONMENTAL ECONOMICS


CREDIT HOURS: 03

Week: 1

What is Economics of Environment. Historical Framework for Environmental

Protection. Distinction between natural resource economics and environmental

economics.

Week: 2

Sustainable development in economics.The Economy and the Environment. First and

the second laws of thermodynamics. The fundamental balance.

Week: 3

Supply and Demand Issue: Cost of Controlling Environment Benefit – Cost and its

Estimation. Willingness to Pay.

Week: 4

Equilibrium Principle Technology and Equi. Marginal Principles, Marginal Cost and

Supply, Economic Efficiency and Markets. Equity and Social Efficiency. External

costs and external benefits.

Week: 5

Pollution and Impacts on Human Life, quality of life and Environment Quality,

General Models of Pollution Control.

Week: 6

Emission Reduction and Equi. Marginal Principle. Long Run Sustainability through

Pricing Mechanism.

Week: 7

Measuring environmental benefits: Contingent valuation, the travel cost method and

the hedonic approach.

Week: 8

Midterm Examination

Week: 9

Benefit Cost analysis: Framework of cost benefit analysis and applications. Costs:

The value of life, health, safety and risk. Pigovian Analysis, The chaos Theorem.

Week: 10

General considerations, Environmental degradation in developing economies.

Economy and Environment.

87

Week: 11

The Pollution Haven hypothesis. The role of developed countries . Analysis of

relationship between economics growth and environment.

Week: 12

Emergence of Environment Issue in Pakistan, Industrial Waste, Urban Waste and

Agricultural Issues Related to Pesticides use, Salinity and Water Logging. Urban

Environmental Issues.

Week: 13

Meta-analysis of environment Via Kuznets Curve. Public and Private Efforts to

Improve Environment Quality and Impacts. Air pollution in Pakistan.

Week: 14

Ozone Depletion, The impact of ozone depletion on world’s environment, the

Economics of Global Warming. Keyoto - Protocol and Issues International

Environmental Agreements. UN and environmental cooperation.

Week: 15

International trade and the environment impacts of awareness policy. Energy analysis,

Externalities and internalities.

Week: 16

Final Term Examination

Recommended Books

1. Field, B.C and M.K Field, Environmental Economics: An Introduction (3rd

Edition) 2002 New York: Mc Graw Hill

2. Barry C. Field, Environmental Economics, An Introduction, McGraw Hill (Latest

Edition).

3. Chapman, D. Environmental Economics: Theory Application and Policy, Latest

eds. Massachusetts: Addison- Wesley

4. Hussen A. (2003), Principles of Environmental Economics, Routledge Publishers.

5. Baker Steve, Environmental Economics, (2003) Dominant Publisher and

Distributors, New Delhi edition), Tlie Free Press of Glance.

COURSE TITLE: GENERAL EQUILIBRIUM AND WELFARE ECONOMICS


CREDIT HOURS: 03

COURSE DESCRIPTION: In this course, we extend the partial equilibrium

analysis, studied in the basic microeconomics, to general equilibrium.

Alternatively, here we study the equilibrium and their welfare consequences in

case of many markets where the allocation of resources results from the

interaction of several economic agents (consumers and producers). The basic

structure is based the competitive forces with no externality and no information

asymmetry accompanied by rational individuals (utility maximization of

consumers and profit maximization of producers). The maximization behaviour

of individual economic agents occur in such a way that all markets clear in a

simultaneous way. Second, the course includes the theory of social choice and

88

welfare ranging from the measurement of welfare to the fundamental theorems of

welfare. After the completion of course, the student should be able to understand

the framework of general equilibrium and its welfare characteristics.

COURSE OBJECTIVES: 1. To Provide an Overview to Students how the Overall

Economic System Works 2. To Introduce the Basic Concepts and Techniques

related to the Equilibrium in the Overall Economy 3. To show the Welfare

Characteristics of Overall Economy 4. To Show the Students some Applications

of General Equilibrium Theory

COURSE CONTENTS

1. Introduction to General Equilibrium Complete Markets, Spot Market vs Forward Market, Partial versus general

equilibrium, the Walrasian System, Exchange Economy, Production

Economy

2. Exchange Economy

General equilibrium of Pure Exchange Economy, The Edgeworth Box

Diagram, Offer Curves, Existence, Uniqueness and Stability of Equilibrium,

Mathematical and Graphical Representation of General Equilibrium, Pareto

Efficiency in Exchange Economy, Contract Curve, Core in Exchange

Economy, Interaction between Equilibrium, Pareto Efficiency and Core

3. Production Economy

General equilibrium of production and consumption; A Robinson Crusoe

Economy: One Consumer and One Producer Economy, Equation of Contract

Curve, Production Possibility Frontier, ISO Welfare Line, Pareto Efficiency

in Robinson Crusoe Economy; General equilibrium in the two-sector model;

The Production Economy in Edgeworth Box: 2x2 Model, Pareto Efficiency

in 2x2x2 economy, general equilibrium and allocation of resources,

Extension of the simple general equilibrium model to any number of

Consumers, producers and factors 3. Application of General Equilibrium

Theory some applications like Heckscher-Ohlin Theory of Trade,

StolperSamuelson Theorems, Problems of the general equilibrium model

4. Welfare Economics Meaning of welfare, measurement of social welfare, Utility Possibility Set,

Social Welfare Function, Pareto Optimality, Theory of Social Choice, the

Majority Rules, Condorcet’s Paradox, Borda Count, Arrow’s Impossibility

Theorem, Maximization of social welfare, Welfare maximization and perfect

competition, the First Fundamental Theorem of Welfare, the Second

Fundamental Theorem of Welfare, Monopoly, Externalities, imperfect

information, public goods, Some Criticism, Extension and Policy

implication

5. Ethics and development:

Normative framework for development Normative concerns lie at the heart of

development analysis and policy. Development policy and uncertainty, trade-

off, and complexity Any public policy is based on ideas about what matters.

89

Different kinds of ideas lead to different kinds of actions (e.g. poverty

reduction policies depend on how poverty is conceptualised). The output or

impact on wellbeing of any given policy varies depending on the context of

countries or societies. Concerns for people should come first in social and

economic progress


Lectures In Class discussion

TEXT AND REFERENCE BOOKS: . James C Moore, General Equilibrium and

Welfare Economics: An Introduction (latest edition), Springer. . Layard, P.R.G

and Walters, A.A Microeconomic Theory, Latest Edition. . Mas-Colell,

Andreu, Michael D. Whinston, and Jerry R. Green. Microeconomic Theory .

Eugene Silberberg and Wing Suen. “The Structure of Economics: A

Mathematical Analysis

COURSE TITLE: GAME THEORY


CREDIT HOURS: 03

Course Objectives:

Game theory is the study of multiperson decision problems. How individuals take

decisions in a situation where his/her interests depends not only on own actions but on

the actions of other people as well. Game theory provides the analysis of such

strategic interactions. This subject is an introduction to the economic study of game

theory. A main aim of this subject is to show how tools and techniques from game

theory can be applied to interesting and relevant problems in economics and everyday

life.

COURSE CONTENTS:

1. Principles and Basic Concepts of Game Theory

Introduction: Basic Concepts

Static Games of Complete Information. Strategic Game: Simultaneous games

with pure and discrete strategies, Pure strategy Nash Equilibrium, Pure Versus

Behavioral Strategies, Common Knowledge of Rationality. Dominate and

dominated strategy. Iterative elimination of dominated strategy. Correlated

Equilibrium o Multiple Nash Equilibria, Pareto Optimality, Existence of Nash

Equilibrium

Static Games of complete but imperfect information o Simultaneous games

with continuous and mixed strategies, Non-Existence of a Pure Strategy

Equilibrium. Mixed Strategy Nash Equilibrium

Dynamic games of complete information . Sequential Games: Extensive form

representation of game . Theory of Backward Induction, Sequential

Rationality and Backward Induction, Sub Game Perfect Nash Equilibrium

(SPE), Critique of Backward Induction and Sub game Perfection

Dynamic games of complete but imperfect information . Sub-games, Sub-

game perfect Nash Equilibrium

90

2. Advanced Concepts of Game Theory

Static Games of Incomplete Information, o Static Bayesian Games

and Bayesian Nash Equilibrium, Examples of Bayesian Equilibrium,

Dynamic Games of Incomplete information,. Perfect Bayesian

Equilibrium. Signaling Games

Repeated games: Finitely Repeated Games with Several Static

Equilibria . Infinitely Repeated Games, Infinite Horizon Equilibria, .

Folk Theorem

3. Applications of Game Theory

Industrial organization: Cournot Model of Duopoly . Cournot

Competition Under Asymmetric Information . Providing a Public

Good under Incomplete Information . Bertrand Model of Duopoly, the

Problem of Commons . Stackelberg Model of Duopoly

Bargaining: Rubinstein Model of Bargaining, Uniqueness of Infinite

Horizon Equilibria, comparative Statics

Auctions: Theory of Auctions and Competitive Bidding


Lectures In Class Activities Written Assignments


Mas-Colell, Whinsten and Green. Microeconomic Theory

H. R. Varian , Microeconomic Analysis

Martin J. Osborne, An Introduction to Game Theory

Robert Gibons , Game Theory for Applied Economists

Osborne and Rubinstein , A Course in Game Theory

Abreu, D. and D. Pearce and E. Stacchetti, “Optimal Cartel Equilibria with

Imperfect Monitoring,” JET, 39, 1986, 251-269

Abreu, D. and D. Pearce and E. Stacchetti, “Toward a Theory of Discounted

Repeated Games with Imperfect Public Monitoring,” Econometrica, 58,

1990, 1041-1063

Compte O., “Communication in Repeated Games with Imperfect Private

Monitoring,” Econometrica, 66, 1998, 597-626

David M. Kreps “Game Theory and Economic Modelling”. Oxford

University Press.

Ely, J. and J. Valimaki, “A Robust Folk Theorem for the Prisoner’s

Dilemma,” JET, 102, 2002, 84-105

COURSE TITLE: ISLAMIC ECONOMICS


CREDIT HOURS: 03

Objectives The course is designed for senior students having gone through some basic courses in

economic theory and development economics. The objective is to let them realize that

Islam provides full guidance to its followers in all spheres of social life. The students

have to understand the Islamic injunctions ordained for economic behaviour, both in

the individual as well as collective capacity. They have to compare the prevailing

91

system with that devised by Islam, to capture the socio-economic problems faced by

the present day Muslim countries and to find ways and means to reconstruct the

system in vogue according to Islamic guidelines so as to achieve greater stability,

equity in distribution and reduction in poverty as the primary goals of all developing

nations. Course Contents

COURSE CONTENTS:

1. Definitions and Basics

Definitions, concepts and

terminologies,

Brief History of Islamic

Economics,

Rationale for Islamic Economics,

Islamic Economic System,

Sources of Islamic Laws,

The Holy Qur’an, Sunnah & Hadith,

Ijma Ijtihad/Qiyas/Reason

2. Islam and other Economic

Systems

Introduction,

Capitalism, Socialism, Communism, Mixed Economic System,

Comparison and contrast

3. Islamic Economics

Defining Islamic Economics,

Principles of Islamic Economics,

Consumer behavior, Basic values of

Islamic economic system,

Philanthropic and other-regarding

behavior

4. Factors of Production

Land as a Factor of Production,

Land Tenure System in Islam,

Place of Capital in Islamic Socio-

Economic set-up,

Labour-Capital Relationship and

Islam,

Rent and Wages in Islam, Islamic

Values and work life

5. Interest, its Prohibitions and

Classifications

Riba /interest definitions and its

types,

Riba in Quran, Riba in Hadith,

Commercial Interest and Usury,

The implications of interest

92

6. Islamic Financial System

Islamic Contracts,

Islamic Modes of Financing,

Banking in Islam

7. Financial system in Islamic

Economy

Applications of Islamic Financing,

Project Financing,

Working Capital Financing,

Import Financing, Export Financing

8. Islamization of Economy

Pre-modern Muslim thought on

economics,

Development of "Islamic

economics" as an academic

discipline,

Achievements, Challenges,

Islamization of financial institutions

in Pakistan: Achievements,

Problems and prospects.

9. Case Studies

Islamic Financial Institutions

(Bank/ Insurance),

slamization of economy [at least any

two

countries]

10. Emerging Trends and Recent

Developments


Lectures In Class Activities Group

Discussion Guest Lectures (optional)



Asad Zaman Islamic Economics; ASurvey of the Literature, IRI publications, IIUI,

Islamabad (available online) Syed Nawab Haider Naqvi, Perspectives on Morality

and Human Well