ECONOMICS 4 -Semester Course

DEPARTMENT OF ECONOMICSFaculty of Arts

The Maharaja Sayajirao University of BarodaVadodara.

Master of Arts Programme of Studies

ECONOMICS

4-Semester Course

3 Credit Course per paper per semester

Maximum 45 hours per paper

Course Titles and Detailed Syllabi

[w.e.f. 2013-2014]

1

M.A.: Economics: Titles of Courses

Semester Course No. Course Code Course Title Page No.

Semester-01(06 + 01)

CORE-01 ECO2101 Microeconomic Analysis – I 02CORE-02 ECO2102 Macroeconomic Analysis – I 04CORE-03 ECO2103 Mathematical Methods in Economics 06CORE-04 ECO2104 Environmental and Natural Resource

Economics08

CORE-05 ECO2105

ECO2106

(a) Agricultural EconomicsOR

(b) Financial Institutions and Markets

10

12PROJECT-01 ECO2107 Project-I ---IDE-01 ECO2108 Structure of Indian Economy 14


CORE-06 ECO2201 Microeconomic Analysis – II 15CORE-07 ECO2202 Macroeconomic Analysis – II 17CORE-08 ECO2203 Statistical Methods for Economic Analysis 19CORE-09 ECO2204 Indian Economic Policy 20CORE-10 ECO2205

ECO2206

(a) EconometricsOR

(b) Economics of Insurance

22

24PROJECT-02 ECO2207 Project-II ---IDE-02 ECO2208 Urban Economics 26


CORE-11 ECO2301C11 Development Economics 28CORE-12 ECO2302C12 Theoretical Foundations of Public Economics 30CORE-13 ECO2303C13 International Trade 32CORE-14 ECO2304C14 Welfare Economics 34CORE-15 ECO2305C15

ECO2306C15

(a) Economics of Gender and DevelopmentOR

(b) Industrial Economics

36

38PROJECT-03 ECO2307P03 Project-III ---IDE-03 ECO2308E03 Gujarat Economy 39


CORE-16 ECO2401C16 Economics of Growth and Structural Change 40CORE-17 ECO2402C17 Fiscal Federalism – With Reference to India 42CORE-18 ECO2403C18 International Finance and Monetary System 43CORE-19 ECO2404C19 Economics of Human Resources 45CORE-20 ECO2405C20

ECO2406C20

(a) Economics of InfrastructureOR

(b) Mathematical Economics

47

48PROJECT-04 ECO2407P04 Project-IV ---IDE-04 ECO2408E04 Rural Economics 50

28 X 3 = 84credits

2

The Maharaja Sayajirao University of BarodaFaculty of Arts

DEPARTMENT OF ECONOMICSPhone: 0091-0265-2791971E-mail: [email protected]

ACADEMIC YEAR

w.e.f. 2013-14

Master of Arts : ECONOMICS : CBCS

YEAR I CORE-01ECO2101 : MICROECONOMIC ANALYSIS – I

CREDIT 3

Semester I HOURS 45

OBJECTIVES: At the end of this course students will be able to : Comprehend in adequate details and depth the micro economic models. Develop insight about the decision making process of micro economic units. Explain Economic theory in a mathematical frame work. Apply microeconomic tools to amylase and explain real world economic

phenomena. Develop skill of policy formulation for economic decision at a micro level.

COURSE CONTENT / SYALLABUS

UNIT-I

Demand Analysis:

11 hrs.

Theories of demand; Cardinal Utility Analysis of Demand, Indifferencecurves and their applications; Revealed Preference theory; Marshall &Hick’s Concept of Consumer Surplus; Concept and measurement ofelasticities of demand, Bandwagon, Snob, and Veblen Effects, StatisticalDemand Curves, Linear Expenditure System.

UNIT-II

Theory of Production and Costs:

12 hrs.

Production function - short period and long period; Law of variableproportion and returns to scale; Iso-quant - Least cost combination ofinputs; Returns to factors; Economies of scale; Multi product firm;Elasticity of substitution; Euler's theorem; Technical progress andproduction function; Cobb-Douglas production function.

UNIT-III

Price and Output Determination:

10 hrs.

Review of Market Structure - Oligopoly - Non-collusive (Cournot,Bertrand, Edgeworth, Chamberlain, kinked demand curve andStackleberg's solution) and collusive (Cartels and mergers, priceleadership and basing point price system) models; Price and outputdetermination under monopsony and bilateral monopoly; Criticalevaluation of marginal analysis.

UNIT-IV

Behavioural Theories of Firm:

12 hrs.Baumol's sales revenue maximization model; Williamson's model ofmanagerial discretion; Marris model of managerial enterprise; Full costpricing rule; Bain's limit pricing theory; Behavioural model of the firm;Game theoretic models.

Modes of Transaction Lecture method is generally used but along with it as and when required, discussion method would be used. Activity assignments (that is practical numerical problems) may be given to the students and assignment method

would help them to learn by doing. Students may be given training by use of computer. Power Point presentation may be used for delivering lectures.

3

M.A.: Semester-I: ECONOMICS: CBCS: CORE-01: ECO2101: MICROECONOMIC ANALYSIS – I

REFERENCES(All Latest Editions wherever applicable)

1 Chauhan S.P.S. (2009), Microeconomics – An Advanced Treatise (1st Edition), PHI LearningPrivate Limited, New Delhi.

2 Dominick Salvatore (2003), Microeconomics – Theory and Applications (4th Edition),Oxford University Press, New Delhi.

3 Jeffrey M. Perloff (2001), Microeconomics (2nd Edition), Pearson Education Asia, NewDelhi.

4 Koutsoyiannis A. (1979), Modern Microeconomics, (2nd Edition) Macmillan Press, London.5 Kreps David M. (1990), A course in Microeconomics Theory, Princeton University Press,

Princeton.6 Layard P.R.G. and A.W. Walters (1976), Microeconomics Theory, McGraw Hill, New York.7 Robert S. Pindyck & Daniel L. Rubinfeld (2002), Microeconomics (5th Edition), Pearson

Education Asia, New Delhi.8 Sen A. (1999), Microeconomics Theory and Applications, Oxford University Press, New

Delhi.9 Stigler G. (1996), Theory of Price, (4th Edition), Prentice Hall of India, New Delhi.

10 Varian H. (2000), Microeconomic Analysis, W.W. Norton, New York.

4



ACADEMIC YEAR

w.e.f. 2013-14


YEAR I CORE-02ECO2102 : MACROECONOMIC ANALYSIS – I

CREDIT 3

Semester I HOURS 45

OBJECTIVES: At the end of this course students will be able to : To enable the students think independently about real world situation and help

them master the basic analytical tools. To provide an integrated view of macroeconomics and to make close contact

with current macroeconomics events.COURSE CONTENT / SYALLABUS

UNIT-I

Introduction, Measurement and Framework for Aggregative Analysis

11 hrs.

The development of macroeconomics – subject matter and fundamentalconcepts – Aggregation, Macro economic equilibrium and Micro foundations –circular flow of Income and expenditure – Macroeconomic Goals andInstruments - Income concepts – Income measurements – Nominal and RealIncome – Measured and PPP Income – Income and Human development Index –Income and welfare.

UNIT-II

Classical Economics and Keynesian Revolution

11 hrs.

Salient features of classical paradigm – Determinates of output and employment– working of goods, Money and commodity market – salient features of Keynes’sParadigm – Critique of classical system – Role of Aggregate Demand andcomponents of Aggregate Demand – Consumption function, savings functionand Investment multiplier – Simon Kuznets findings – absolute income, relativeincome, Life cycle and Permanent income – Investment – Determinants ofInvestment.

UNIT-III

Supply and Demand for Money

11 hrs.

A behavioural model of money supply determination, RBI approach to moneysupply; High powered money and money multiplier; budget deficits and moneysupply; money supply and open economy; control of money supply.Classical approach to demand for money -- Quantity theory approach, Fisher'sequation, Cambridge quantity theory, Keynes's liquidity preference approach,transaction, precautionary and speculative demand for money --- aggregatedemand for money; Equilibrium of demand and supply of money.

UNIT-IV

Neo-classical Keynesian Synthesis and New Classical Macroeconomics

12 hrs.

Neo-classical and Keynesian views on interest; The IS-LM Models; Extension ofIS-LM model with government sector; Relative effectiveness of monetary andfiscal policies; Extension of IS-LM models with labour market and flexibleprices: Post-Keynesian approaches to demand for money --- Patinkin and theReal balance Effect, approaches of Baumol and Tobin; Friedman and the modernquantity theory; Crisis in Keynesian economics and the revival of monetarism.

Modes of Transaction The major part of the course work will be taught by the lecture method but wherever necessary, discussion on

different practical issues will also be employed. Some portion of the course work would be given to students in the form of assignments. Audio-visual aids in terms of Power Point presentations of assignments by students would be encouraged.

Teachers will also be encouraged to use such audio-visual aids in explaining certain concepts.

5

M.A.: Semester-I: ECONOMICS: CBCS: CORE-02: ECO2102: MACROECONOMIC ANALYSIS – I


1 Ackley, G (1978), Macroeconomics: Theory and Policy, Macmillan, New York.2 Branson, W.A. (1989), Macroeconomic Theory and Policy, (3rd Edition), Harper and Row,

New York.3 Burda and Wyplosz (2009), Macroeconomics,4 Carlin Wendy & Soskice David (2007), Macroeconomics – Imperfection, Institutions and

Policies – Oxford University Press.5 D’souza Errol (2008), Macroeconomics : Dorling Kindersley(India) Pvt. Ltd.6 Dornbusch R. Fischer S. & Startz R. (2004), Macroeconomics, Tata McGraw –Hill ed.7 G. S. Gupta (2004), Macroeconomics – Theory and applications, McGraw-Hill.8 Gordon, R.J. (1998), Macroeconomics, Addison Wesley.9 Harris, L. (1985), Monetary Theory, McGraw Hill, New York.

10 Jha, R. (1991), Contempory Macroeconomic Theory and Policy, Wiley Eastern Ltd., NewDelhi.

11 Levacic, R. and Rebmann. A (2003), Macroeconomics – An introduction to Keynesian –Neoclassical controversies, - MacMillan Press Ltd.

12 M. C. Vaish, Macroeconomics -13 Mankiw, N.G. (2000), Macroeconomics, MacMillan14 Poindexter, J.C. (1981), Macroeconomics, The Dryden Press.15 Richard T. Froyen (2009), Macro Economics – Theories and Policies, Prentice Hall.16 Scarfe, B.L. (1977), Cycles, Growth and Inflation, McGraw Hill, New York.17 Shapiro, E. (1996), Macroeconomic Analysis, Galgotia Publications, New Delhi.18 Surrey, M.J.C. (Ed.) (1976), Macroeconomic Themes, Oxford University Press, Oxford.

6



ACADEMIC YEAR

w.e.f. 2013-14


YEAR I CORE-03ECO2103 : MATHEMATICAL METHODS IN ECONOMICS

CREDIT 3

Semester I HOURS 45

OBJECTIVES: At the end of this course students will be able to : The student will learn the mathematical tools for modeling economic behaviour. The mathematical economic models are used for predictive purposes planning

and decision-making. At the end of the course the student will gain the insight of formulating simple

mathematical models in economics on his/her own.COURSE CONTENT / SYALLABUS

UNIT-I

Analysis of Equilibrium Economic Models

10 hrs.

Meaning of Equilibrium-Partial Market Equilibrium-General MarketEquilibrium-Comparative Static’s and Concept of Derivative-PartialDifferentiation- Total Differential and Derivatives- Implicit Functions-Analysis of General Function Models.

UNIT-II

Optimization and Equilibrium Analysis

10 hrs.

Optimum Values and Extreme Values-Higher Order Derivatives- TotalDifferential Version of Optimization—Optimization with EqualityConstraints- Lagrange Multiplier Method.

UNIT-III

Mathematical Programming & Game Theory

12 hrs.

Linear programming and its applications – simplex method, duality andShadow prices – Concept of a game; Strategies – simple and mixed;Prisoner’s Dilemma- Value of a game; Saddle point solution; MixedStrategies-Dominant Strategies.

UNIT-IV

Dynamic Models in Economics

13 hrs.

Derivatives of Exponential and Logarithmic Functions-Optimal Timing-Rate of Growth - Dynamics and Integration-Economic Applications ofIntegrals- Simple Difference & Differential Equations- Phase Diagrams.

Modes of Transaction

Instruction will be based on the lecture method with interactive sessions. Assignments and tutorials on applications and practice problems will be extensively used. Wherever possible, practical problems will be implemented on computers.

7

M.A.: Semester-I: ECONOMICS: CBCS: CORE-03: ECO2103: MATHEMATICAL METHODS IN ECONOMICS


1 Alpha C. Chiang and Kevin Wainwright, Fundamental Methods of MathematicalEconomics, 4th ed. (New York, NY: McGraw-Hill, 2005).

2 Anthony Martin & Norman Biggs, Mathematics for economics and finance: methods and modeling, Cambridge University Press, 2003 reprint.

3 Chiang Alpha, Elements of Dynamic Optimization, Publisher: McGraw-Hill UK, 1992.4 Hands D. Wade, Introductory Mathematical Economics, Oxford University Press, 2003.

5 Mavron Vassilis C. and Timothy N. Phillips, Elements of Mathematics for Economics and Finance, Springer, 2007

6 Michael Hoy John Livernois, Chris McKenna, and Ray Rees, Mathematics for Economics, 2nd ed. (Cambridge, MA: MIT, 2001)

7 Michael Klein, Mathematical Methods for Economics, 2nd ed. (Reading, MA: Addison Wesley, 2001)

8 Osborne, Martin J., An Introduction to Game Theory, Oxford University Press Inc, USA, 2003.

9 Pemberton Malcolm & Nicholas Rau, Mathematics for Economists: An Introductory Textbook, 2nd ed. (Manchester, UK: Manchester University Press, 2006)

10 Romp Graham, Game Theory - Introduction and Applications, Oxford University Press, 1997.

11 Rosser Mike, Basic Mathematics for Economists, Second Edition, Rutledge.12 Silberberg Eugene, The Structure of Economics: A Mathematical Analysis 3rd ed., (3rd ed.

with Wing Suen). McGraw-Hill13 Turkington Darrell Mathematical Tools for Economics, Publisher: Blackwell Publishing,

2006.

8



ACADEMIC YEAR

w.e.f. 2013-14


YEAR I CORE-04ECO2104 : ENVIRONMENTAL AND NATURAL

RESOURCE ECONOMICS

CREDIT 3

Semester I HOURS 45

OBJECTIVES: At the end of this course students will be able to : To provide an overview of the theoretical principles, policy instruments, and current practice of

using economics in understanding environmental problems. To understand the market system, the externalities causing market failure, and the mechanisms

to correct for externalities. To understand the basics of cost-benefit analysis and the problems associated with their

measurements. To apply economic tools for evaluating environmental policies. To analyze economic incentives that lead to environmental improvement or degradation. To understand the legal institutions responsible for environmental protection. To analyze and understand effective natural resource management practices.


UNIT-I

Fundamentals of Environmental Economics

11 hrs.

Welfare foundations – Pareto Optimality – efficiency in production andconsumption – issues in allocation of environmental resources : externalities,public goods, missing markets, imperfect markets, market failure, non-convexities, common property resources, transaction costs (Coase Theorem),social cost, Property Rights – uncertainty, irreversibility and asymmetry – lawsof Thermodynamics, material balance principle – Sustainable Development :concept, measures and indicators – environmental accounting.

UNIT-II

Environmental Valuation

10 hrs.

Environment-economy linkages – Causes and effects of environmentaldegradation – Concept of total economic value : Use values; Option values andnon-use values – non-essentiality and weak complementarity – environmentaldemand theory – WTP and WTAC – compensated demand – Measurement ofEnvironmental Values : Valuation methods – Methods based on observedmarket behaviour : Hedonic Model – Property pricing and travel cost methods –hypothetical markets (Stated Preference) – contingent valuation method.

UNIT-III

Environmental Protection: Instruments & Legislation

10 hrs.

Pollution prevention, control and abatement : Criteria for and classification ofcontrol instruments, cost-effectiveness – Command and control vs. market-based instruments, their merits and demerits – macroeconomic policies andenvironment – environmental policy in India : Legal institutions, legislationsand instruments – Environmental Impact Assessment – WTO and environment.

UNIT-IV

Economics of Natural Resource Use

14 hrs.

Natural resource categories – economics of Water resource: characteristics,pricing, need for intervention in water supply – Mineral economics: theory ofoptimal extraction of a non-renewable resource. sustainability issues, resourcediscovery, backstop technologies – economics of Fishery – bionomic model offishery, effort-yield function, efficient rates of effort, fisheries management –Forestry economics – optimal rotation period, portfolio choice – Energy use andimpact on health and natural resources.

9


different practical issues will also be employed. Some portion of the course work would be given to students in the form of assignments. Audio-visual aids in terms of PowerPoint presentations of assignments by students would be encouraged.

Teachers will also be encouraged to use such audio-visual aids in explaining certain concepts.

Wherever feasible, students may be taken on field trips to gather data as well as observe the working of theeconomy.

M.A.: Semester-I: ECONOMICS: CBCS:CORE-04: ECO2104: ENVIRONMENTAL AND NATURAL RESOURCE ECONOMICS


1 Ahuja, H.L. – Advanced Microeconomic Theory, S. Chand & Co., New Delhi2 Barry C. Field. (2008) – Natural Resource Economics: An Introduction (second edition),

Waveland Press.3 Bhattacharya, R.N. (Ed.) (2001), Environmental Economics: An Indian Perspective, Oxford

University Press, New Delhi.4 George K.D. and Shorey J.(1978) - The Allocation of Resources, London, George Allen &

Unwin Ltd.5 Hartwick, J. and N. Oliweler – Economics of Natural Resource Use, Harper and Row

Publishers, New York6 Kneese, A. and J. Sweeny (eds.) (1985) – Handbook of Natural Resource and Energy

Economics, North-Holland.7 Kolstad, C.D. (2000), Environmental Economics, Oxford University Press, Oxford.8 Nick, Hanley, Shogren and White (1997) – Environmental Economics, Macmillan.9 Pearce, D.W. and R.K. Turner (1991), Economics of Natural Resource Use and

Environment, Johns Hopkins University Press, Baltimore.10 Perman, R. et. al. (1999) – Natural Resource and Environmental Economics, Longman,

Pearson Education Ltd.11 Tietenberg, Tom (1998) – Environmental Economics and Policy, California, Addision

Wesley.12 Tietenberg, Tom (2004) – Environmental and Natural Resource Economics, California,

Pearson Education Ltd., New Delhi.

10



ACADEMIC YEAR

w.e.f. 2013-14


YEAR I CORE-05 (a)ECO2105 : AGRICULTURAL ECONOMICS

CREDIT 3

Semester I HOURS 45

OBJECTIVES: At the end of this course students will be able to : The application of economic theory to agricultural production. Labour market in the agriculture sector. The mechanics for agricultural produce distribution, agricultural prices and finance. Issues affecting agricultural growth in India.


UNIT-I

Agricultural Production and Productivity

14 hrs.

Nature and scope of agricultural production economics; Agriculturalproduction – Resource use and efficiency; Cost analysis and Productionfunction analysis in agriculture; Factor combination and resourcesubstitution; Size of farm and laws of returns – Theoretical and empiricalfindings; Farm budgeting and cost concepts; Behavior of agriculturalprices – Cobweb Model.

UNIT-II

Factor Market and Modernization of Agriculture

08 hrs.

Rural labour supply; interlocking of factor markets: Mobility of labor andsegmentation labor markets; marginalization of rural labor; Nature,extent and trends in rural unemployment; Agricultural wages in India;Male-female wage differences; Analysis of the process of modernizationof agriculture, Interdependence between agriculture and industry.

UNIT-III

Agriculture Sector Policies: Distribution, Prices and Finance

11 hrs.

Regulated Market and marketable surplus; marketing infrastructure,crop insurance; Pricing of inputs and role of subsidies Terms of tradebetween agricultural and non-agricultural prices; objectives ofagricultural price policy, Food security in India and public distributionsystem, agricultural finance : NABARD and Co-operation.

UNIT-IV

Agricultural Growth in India

12 hrs.

Recent trends in agricultural growth in India: Inter-regional variations ingrowth of output, Cropping pattern shifts; Role of Public investment andcapital formation in Indian agriculture; Sustainable agriculture : Bio-technological practices and growth potential, Globalization & IndianAgriculture, WTO and its effect on Agriculture sector.

Modes of Transaction Lecture method and class discussions.

11

M.A.: Semester-I: ECONOMICS: CBCS: CORE-05 (a): ECO2105: AGRICULTURAL ECONOMICS


1 Bhaduri, A. (1984), The Economic Structure of Backward Agriculture, Macmillan, Delhi.2 Bilgrami, S.A.R. (1996), Agricultural Economics, Himalaya Publishing House, Delhi.3 Dantwala, M.L. et. al. (1991): Indian Agricultural Development Since Independence, Oxford

& IBH, New Delhi.4 Desai Pranav K. (2010) – Agricultural Economics, Biotech books, New Delhi.5 Government of India (1976), Report of the National Commission on Agriculture, New

Delhi.6 Government of India, Economic Survey, (Annual), New Delhi.7 Gulati A. and R. Kelly (1999), Trade Liberalization and Indian Agriculture, Oxford

University Press, New Delhi.8 I. Sundar L. (2009), Principles of Agricultural Economics, Sarap Book Publisher, New

Delhi.9 Joshi, P.C. (1975): Land Reforms in India: Trends and Prospects, Allied Publishers,

Bombay.10 Kahion, A.S. and Tyagi D.S. (1983): Agriculture Price Policy in India, Allied Publishers,

New Delhi.11 Rao, C.H. Hanumantha (1975), Agricultural Growth, Rural Poverty and Environmental

Degradation in India, Oxford University Press, New Delhi.12 Reserve Bank of India, Report on Currency and Finance (Annual), Mumbai.13 Ruddar Dutt and K.P.M. Sundaram (Latest Edition), Indian Economy, S. Chand & Co.14 Rudra, A. (1982), Indian Agricultural Economics: Myths and Reality Allied Publishers, New

Delhi.15 S. Subba Reddy and others (2004), Agricultural Economics, Oxford & IBH Publishing Co.

Pvt. Ltd., New Delhi.16 Saini, G.R. (1979), Farm Size, Resource Use Efficiency and Income Distribution, Allied

Publishers, New Delhi.

12



ACADEMIC YEAR

w.e.f. 2013-14


YEAR I CORE-05 (b)ECO2106 : FINANCIAL INSTITUTIONS AND MARKETS

CREDIT 3

Semester I HOURS 45

OBJECTIVES: At the end of this course students will be able to : Understand the concepts products of Financial Institutions, Banks and their characteristics in

details Evaluate and determine the Price, Value of Financial Assets Understand the nature and working of Financial institutions and markets Apply financial tools in investment and financial decision making Develop skills of policy design and development of financial firm markets.


UNIT-I

Nature and Role of Financial System

12 hrs.Money and Finance -- Money and near-money -- Financial intermediation andfinancial intermediaries -- The structure of the financial system -- Functions ofthe financial sector --- Indicators of financial development -- Equilibrium inFinancial Markets -- Financial system and Economic Development.

UNIT-II

Asset Prices and Valuation

10 hrs.

Prices, risk and yield in financial Markets -- Determinants of Assets prices andinterest rates -- Theories of interest rate determination --. Criteria to evaluateassets: risk and financial assets, types of risk, return on assets, Risk -- Returntrade off --- Valuation of Securities. Term structure of Interest rates --- RiskReturn and asset pricing --- Capital Asset Pricing Model (CAPM) and portfoliomodel – Arbitrage Pricing Model (APM).

UNIT-III

Banking and Financial Institution

10 hrs.

Type of banking and non-bank financial intermediaries -- Profitability andefficiency of banks; Development banks -- role and functions; Investmentbanking and merchant banking; Financial sector reforms in India and FinancialPolicy.Definition and types of non-bank financial institutions; Their growth and impacton India's economic development, Measures taken to control their operations –Financial innovations – Asset securitization – asset and Liability Managementfor financial intermediaries.

UNIT-IV

Financial Markets

13 hrs.

Role and structure of money market and capital market -- Call money market,Treasury bill market, Commercial bill market including commercial paper andcertificate of deposit, Discount market -- Government securities market --Markets for derivatives; futures and options, and other derivatives; types, usesand pricing of derivatives -- Primary and secondary market for securities;Mutual funds; Regulation-SEBI; Its impact on the working of capital market inIndia; IRDA and its role in Insurance markets -- Cost of capital -- capitalstructure -- dividend policy -- Mergers and acquisitions.

Modes of Transaction Generally Class lectures along with discussion method will be used Practicals on financial valuation will be good for Learning. Students will be given assignments on important aspect of topics.

Wherever possible, students will be taught financial Software’s.

13

M.A.: Semester-I: ECONOMICS: CBCS: CORE-05 (b): ECO2106: FINANCIAL INSTITUTIONS AND MARKETS


1 Chandra Prasanna, Financial Management: Theory and Practice, Tata McGraw Hill.2 Kohn Meir (Third Reprint): Financial Institutions and Markets, Tata McGraw Hill.3 Pathak Bharati V. (2nd Edition): The Indian Financial System, Pearson.4 Reilly and Brown (6th Edition): Investment Analysis and Portfolio Management, South

Western.

14



ACADEMIC YEAR

w.e.f. 2013-14


YEAR I Interdisciplinary Elective-01ECO2108 : STRUCTURE OF INDIAN ECONOMY

CREDIT 3

Semester I HOURS 45

OBJECTIVES: At the end of this course students will be able to : understand many aspects of the Indian economy particularly economic trends and

sector composition, phenomena/ issues involved in development of Indian economy. Understand meaning of different terms and concepts used in various reports relating to

Indian economy and able to analyze the issues/problems and in a position to suggestsome solutions for the same.

Participate in debate on developments in Indian economy.


UNIT-I

Introduction

12 hrs.Indian economy on the eve of Independence, India as mixed economy and itsfeatures, India in global economy, National income-various concepts, trends innational income, growth, structure, and constraints in growth, growth andeconomic development. Poverty and poverty alleviating policy measures.

UNIT-II

Agriculture

11 hrs.Role of agriculture in Indian economy, cropping pattern, irrigation, greenrevolution – meaning, achievements/ failures, national agricultural policy 2000,rural credit- trends and constraints.

UNIT-III

Industry and Infrastructure

11 hrs.Industry at the time of independence and role of industrialization, industrialgrowth pattern Large, medium and small scale industry, New Industrial policy,SMEs Privatization, Industrial finance – current trends and issues,Infrastructures in Indian economy-energy, transport and communication.

UNIT-IV

Other Current Issues

11 hrs.India’s population- size, growth rate, composition by sex, and age, density andurbanization trends, Occupational structure and work force, Quality ofpopulation- Human Development in India-(HDI,GDI, HPI)-Social sectors–education and health related issues.


Major part of course will be taught by lecture method, class discussion and experience sharing. Students will be given course work in the form of assignments and cases.

M.A.: Semester-I: ECONOMICS: CBCS:IDE-01: ECO2108: STRUCTURE OF INDIAN ECONOMY


1 Datt Ruddar and K P M Sundharam, Indian Economy, S. Chand. latest edition

2 Dhingra I. C., Indian Economy, S. Chand latest edition

3 Agarwal A N., Indian Economy

4 S. P. Verma., Infrastructure in India’s Development-power, Transport and Communication,Kanishka Publishers & distributors, New Delhi

5 UNDP, Human Development Report, latest issue, Palgrave MacMillan

15



ACADEMIC YEAR

w.e.f. 2013-14


YEAR I CORE-06ECO2201 : MICROECONOMIC ANALYSIS – II

CREDIT 3

Semester II HOURS 45

OBJECTIVES: At the end of this course students will be able to : Comprehend in adequate details and depth the micro economic models. Develop insight about the decision making process of micro economic units. Explain Economic theory in a mathematical frame work. Apply microeconomic tools to amylase and explain real world economic phenomena. Develop skill of policy formulation for economic decision at a micro level.


UNIT-I

Theory of Distribution

10 hrs.Neo-classical approach - Marginal productivity theory; Productexhaustion theorem; Elasticity of technical substitution; technicalprogress and factor share; Theory of distribution in imperfect productand factor markets; Determination of rent, wages and profit.

UNIT-II

Welfare Economics

12 hrs.

Pigovian welfare economics; Pareto optimal conditions; Value judgments;Social welfare functions; Compensation principle; Inability to obtainoptimum welfare - Imperfections, market failure, decreasing costs,uncertainty and non existence and incomplete markets; Theory of secondbest, Welfare implications of inter-temporal consumption.

UNIT-III

Economics of Uncertainty

13 hrs.

Consumer’s and Producer’s choice under uncertainty - describing risk,reducing risk, Demand for risky assets -Market with asymmetricinformation- quality uncertainty and the market for "Lemons", Marketsignaling, Moral hazard, Principal agent problem, Asymmetricinformation in labour market; Efficiency wage theory, Investmentanalysis.

UNIT-IV

General Equilibrium Analysis

10 hrs.

Partial and general equilibrium, Walrasian excess demand and inputoutput approaches to general equilibrium, existence, stability anduniqueness of equilibrium and general equilibrium, coalitions andmonopolies; Production without consumption - one sector model,homogeneous functions, income distribution.

Modes of Transaction Lecture method is generally used but along with it as and when required, discussion method would be used. Activity assignments (that is practical numerical problems) may be given to the students and assignment method

would help them to learn by doing. Students may be given training by use of computer. Power Point presentation may be used for delivering lectures.

16

M.A.: Semester-II: ECONOMICS: CBCS: CORE-06: ECO2201: MICROECONOMIC ANALYSIS – II


1 Chauhan S.P.S. (2009), Microeconomics – An Advanced Treatise (1st Edition), PHI LearningPrivate Limited, New Delhi.

2 Dominick Salvatore (2003), Microeconomics – Theory and Applications (4th Edition),Oxford University Press, New Delhi.

3 Jeffrey M. Perloff (2001), Microeconomics (2nd Edition), Pearson Education Asia, NewDelhi.

4 Koutsoyiannis A. (1979), Modern Microeconomics, (2nd Edition) Macmillan Press, London.5 Kreps David M. (1990), A course in Microeconomics Theory, Princeton University Press,

Princeton.6 Layard P.R.G. and A.W. Walters (1976), Microeconomics Theory, McGraw Hill, New York.7 Robert S. Pindyck & Daniel L. Rubinfeld (2002), Microeconomics (5th Edition), Pearson

Education Asia, New Delhi.8 Sen A. (1999), Microeconomics Theory and Applications, Oxford University Press, New

Delhi.9 Stigler G. (1996), Theory of Price, (4th Edition), Prentice Hall of India, New Delhi.

10 Varian H. (2000), Microeconomic Analysis, W.W. Norton, New York.

17



ACADEMIC YEAR

w.e.f. 2013-14


YEAR I CORE-07ECO2202 : MACROECONOMIC ANALYSIS – II

CREDIT 3


OBJECTIVES: At the end of this course students will be able to : To enable the students think independently about real world situation and help them

master the basic analytical tools. To provide an integrated view of macroeconomics and to make close contact with

current macroeconomics events.


UNIT-I

Unemployment & Inflation: Causes & Consequences

11 hrs.

Unemployment – definition and concepts – causes & consequences ofunemployment, Inflation – definition and concepts – causes &consequences of inflation, Aggregate supply function – Philips curve –Philips curve vis-à-vis Aggregate supply function – price expectationmodels – Macro Economic policies.

UNIT-II

New Classical and New Keynesian Models

11 hrs.

New classical position – a review of Keynesian position – The RationalExpectation concept and its implications – New classical policyconclusions. New Keynesian position – Sticky price (Menu Cost) Models –Efficiency wage Models – Insider – Outsider models and Hysteresis. Asummary of Macro Economic Models.

UNIT-III

Open Economy Macro Economics and Business Cycles

11 hrs.

Important concepts of open Economy – Macro Economic GAPS –Determinants of Trade Balance and Balance of Payments – ForeignExchange rate system and Determinants of foreign Exchange rate –Monetary and Fiscal Policy in the open economy and the Mundell -Fleming model - Business cycles – definition and characteristics –Theories of Schumpeter, Kaldor, Samuelson and Keynes - control ofBusiness cycles and stabilization policies.

UNIT-IV

Economic Growth

12 hrs.Determinants of Income and growth – Harrod – Domar Model – SolowModel – Endogenous Growth theory – Economic Reforms, institution,governance and Economic growth in India- Growth Accounting chinaand India.


different practical issues will also be employed. Some portion of the course work would be given to students in the form of assignments. Audio-visual aids in terms of Power Point presentations of assignments by students would be encouraged. Teachers

will also be encouraged to use such audio-visual aids in explaining certain concepts.

18

M.A.: Semester-II: ECONOMICS: CBCS: CORE-07: ECO2202: MACROECONOMIC ANALYSIS – II


1 Ackley, G (1978), Macroeconomics: Theory and Policy, Macmillan, New York.2 Branson, W.A. (1989), Macroeconomic Theory and Policy, (3rd Edition), Harper and Row,

New York.3 Burda and Wyplosz (2009), Macroeconomics,4 Carlin Wendy & Soskice David (2007), Macroeconomics – Imperfection, Institutions and

Policies – Oxford University Press.5 D’souza Errol (2008), Macroeconomics : Dorling Kindersley(India) Pvt. Ltd.6 Dornbusch R. Fischer S. & Startz R. (2004), Macroeconomics, Tata McGraw –Hill ed.7 G. S. Gupta (2004), Macroeconomics – Theory and applications, McGraw-Hill.8 Gordon, R.J. (1998), Macroeconomics, Addison Wesley.9 Harris, L. (1985), Monetary Theory, McGraw Hill, New York.

10 Jha, R. (1991), Contempory Macroeconomic Theory and Policy, Wiley Eastern Ltd., NewDelhi.

11 Levacic, R. and Rebmann. A (2003), Macroeconomics – An introduction to Keynesian –Neoclassical controversies, - MacMillan Press Ltd.

12 M. C. Vaish, Macroeconomics -13 Mankiw, N.G. (2000), Macroeconomics, MacMillan14 Poindexter, J.C. (1981), Macroeconomics, The Dryden Press.15 Richard T. Froyen (2009), Macro Economics – Theories and Policies, Prentice Hall.16 Scarfe, B.L. (1977), Cycles, Growth and Inflation, McGraw Hill, New York.17 Shapiro, E. (1996), Macroeconomic Analysis, Galgotia Publications, New Delhi.18 Surrey, M.J.C. (Ed.) (1976), Macroeconomic Themes, Oxford University Press, Oxford.

19



ACADEMIC YEAR

w.e.f. 2013-14


YEAR I CORE-08ECO2203 : STATISTICAL METHODS FOR

ECONOMIC ANALYSIS

CREDIT 3


OBJECTIVES: At the end of this course students will be able to : The student will grasp the basic methods of statistical inference economic

analysis. The approach to hypothesis testing and estimation will be understood.


UNIT-I

Elements of Probability Theory

08 hrs.Probability: Laws of addition and multiplication: Conditional probabilityand concept of interdependence; Elementary concept of random variable;Mathematical Expectations, Properties (without derivations) of Binomial,Poisson and Normal distributions, Bayse Theorem.

UNIT-II

Sampling and Sampling Distributions

12 hrs.Basic concept of sampling – random and non-random sampling designprocess-Random sampling methods-sampling and non-sampling errors-sampling distribution; Central Limit Theorem-sampling distribution ofsample proportion.

UNIT-III

Estimation and Hypothesis Testing

15 hrs.

Concept of an estimator and its sampling distribution; Desirableproperties of an estimator; Formulation of Statistical Hypothesis – Nulland alternative; Goodness of fit; confidence intervals and level ofsignificance; Hypothesis testing – based on z, t, Chi-Square and F tests;Type 1 and Type 2 errors.

UNIT-IV

Correlation and Regression Analysis

10 hrs.

Meaning assumptions and limitations of simple correlation andregression analysis; Concept of the least squares and the line ofregression; Standard error of estimate-Goodness of fit-Prediction ofindividual values, Multivariate Regression Analysis – Estimation &Testing.


Instruction will be based on the lecture method with interactive sessions. Assignments and tutorials on applications and practice problems will be extensively used. Wherever possible, practical problems will be implemented on computers.

M.A.: Semester-II: ECONOMICS: CBCS: CORE-08: ECO2203: STATISTICAL METHODS FOR ECONOMIC ANALYSIS


1 Anderson David R., Dennis J. Sweeney, Thomas A. Williams, (2004), Statistics for Business and Economics South-Western College Pub; 9th edition.

2 Gujarati Damodar, Essentials of Econometrics McGraw-Hill International edition.3 Levine D & N.Bajpai (2010), Quantitative Analysis, Pearson.

20



ACADEMIC YEAR

w.e.f. 2013-14


YEAR I CORE-09ECO2204 : INDIAN ECONOMIC POLICY

CREDIT 3


OBJECTIVES: At the end of this course students will be able to : The Planning structure and it’s implementation process Policy reforms in financial sector, trade, environment and infrastructure Policy and performance issues in agriculture and industry sectors.


UNIT-I

Economic Planning and Policy

10 hrs.Objectives and Strategy of Planning; Failure and achievements ofPlanning; Planning and Policy interface; Decentralized Planning; Fiscalfederalism in India;73rd and 74th amendment to the constitution; role ofcivil society as third sector in planning, Policies for Inclusive Growth.

UNIT-II

Economic Reforms and Policy Impacts

14 hrs.Financial sector reforms; Economic reforms, Trade Policy reforms andissues, Exchange rate policy; Foreign capital and MNCs in India; WTOand its impact on the economy; Monetary and Fiscal Policy reforms.

UNIT-III

Agriculture and Industry

14 hrs.

India’s Agricultural Policy since Independence – agricultural pricing andprice behavior; Terms of trade between agriculture and industry;Agricultural finance; Issues in food security and public distributionsystem – policies for sustainable agriculture. Growth and pattern ofindustrialization; Industrial policy; Public sector enterprises and theirperformance; Privatization and disinvestment debate. Small and MediumEnterprises.

UNIT-IV

Planning and Social Infrastructure

07 hrs.Policies reforms related to Energy, Telecom, Transport, etc. SocialInfrastructure policies and labour market reforms, Environmental policy,and knowledge economy.

Modes of Transaction Lecture method and class discussion.

21

M.A.: Semester-II: ECONOMICS: CBCS: CORE-09: ECO2204: INDIAN ECONOMIC POLICY


1 Ahluwalia, I. J. and I.M.D. Little (Eds.) (1999), India’s Economic Reforms and Development(Essay in honor of Manmohan Singh), Oxford University Press, New Delhi.

2 Alagh Y.K. [ed.] State of Indian Farmer: A Millennium Study, Various volumes. AcademicFoundation

3 Bardhan, P.K. (9th Edition) (1999), The Political Economy of Development in India, OxfordUniversity Press, New Delhi.

4 Brahmananda, P R and V R Panchmukhi (Eds) (2001), Development Experience in theIndian Economy – Inter State Perspective, Bookwell, Delhi.

5 Carl Dahlman and Anuja Utz: (2005), India and the Knowledge Economy: Leveraging,Strengths and opportunities, World Bank Publication.

6 Chakravarty, S. (1987), Development Planning: The Indian Experience, Oxford UniversityPress, New Delhi.

7 Dantwala, M.L. (1996), Dilemmas of Growth: The Indian Experience, Sage Publication, NewDelhi.

8 Datta, R (Ed.) (2001), Second Generation Economic Reform in India, Deep and DeepPublication, New Delhi.

9 GOI Economic Survey latest issue10 Government of India, Economic Survey (Annual), Ministry of Finance, New Delhi.11 India Infrastructure Report Oxford University Press latest issue.12 Ishwar Dhingra: Indian Economy. Latest edition, Sultan Chanel Publication.13 Jain, A K (1986), Economic Planning in India, Ashish Publishing House, New Delhi.14 Jalan, B (1996), India’s Economic Policy - Preparing for Twenty First Century, Penguin

Books, New Delhi.15 Jalan, B. (1992), The Indian Economy- Problems and Prospects, Penguin Books, New Delhi.16 Joshi, V. and I.M.D. Little (1999), India: Macroeconomic and Political Economy, 1964-1991,

Oxford University Press, New Delhi.17 Kapila Uma:[ed.] Indian Economy since Independence : Academic Foundation [latest

edition]18 Parikh, K.S. (1999), India Development Report – 1999-2000, Oxford University Press, New

Delhi.19 Rao V.M. (1996) Agricultural Development with a Human face, EPW 31(26): June 29.20 Reserve Bank Of India, Report on Currency and Finance, (Annual).21 Sandesara, J.C. (1992), Industrial Policy and Planning 1947-1991: Tendencies

Interrelations and Issues, Sage Publication, New Delhi.22 Sen, R.K.and B. Chatterjee (2001), Indian Economy: Agenda for 21st Century (Essays in

honour of Prof P.R. Brahmanda), Deep and Deep Publication, New Delhi.

22



ACADEMIC YEAR

w.e.f. 2013-14


YEAR I CORE-10 (a)ECO2205 : ECONOMETRICS

CREDIT 3


OBJECTIVES: At the end of this course students will be able to : Comprehend in adequate detail various econometric techniques. Develop understanding about the economic models and their uses. Understand the relation between economic theory and econometric models. Develop skill to formulate an econometric model and test for the results.


UNIT-I

Econometrics – An Introduction

12 hrs.

Nature and scope of econometrics; Simple and general linear regressionmodel – Assumptions, Estimation using OLS method; properties ofestimators; Gauss-Markov theorem; Analysis of variance approach andits application in regression analysis; Estimation of non-linear equations.Multivariate regression analysis –matrix approach.

UNIT-II

Violation of Classical Model Assumptions

11 hrs.

Single equation model: Problems of Heteroscedasticity; Multicolinearity –Method of Principal Component Analysis; Auto-correlation; Problems ofspecification error; Errors of measurement – Applications. Multiequation Model: Simultaneous equation bias and inconstancy of OLSestimators – Alternative methods.

UNIT-III

Qualitative Independent and Dependent Variables

11 hrs.

Types of Qualitative variables; Dummy variable technique – Testingstructural stability of regression models comparing two regressions,interaction effects, seasonal analysis, piecewise linear regression,Regression with dummy dependent variables; The LPM, Logit, Probit, andTobit models – Applications.

UNIT-IV

Dynamic Econometric Models and Time Series

11 hrs.

Autoregressive and distributed lag models – Koyak model, Partialadjustment model, adaptive expectations; Instrumental variables;Problem of auto-correlation – Application; Almon approach todistributed-lag models; Error Correction Mechanism, Causality tests.Time series analysis: Stationarity, unit roots, co-integration-spuriousregression, Dickey-Fuller test, Random walk model, Forecasting ineconomics.

Modes of Transaction Lecture method is generally used but along with it as and when required, discussion method would be used. Activity assignments with numerical problems be given to the students and assignment method would help them

to learn by doing. Students may be introduced to various Statistical and Econometric Software. Power Point presentation may be used for delivering lectures.

23

M.A.: Semester-II: ECONOMICS: CBCS: CORE-10 (a): ECO2205: ECONOMETRICS


1 Baltagi, B.H. (1998), Econometrics, Springer, New York.2 Dongherty, C. (1992), Introduction to Econometrics, Oxford University Press, New York.3 Goldberger, A.S. (1998), Introductory Econometrics, Harvard University Press, Cambridge,

Mass.4 Gujarati, D.N., Basic Econometrics, (2nd Edition), McGraw Hill, New Delhi.5 Kennedy, P. (1998), A guide to Econometrics (4th Edition), MIT Press, New York.6 Kmenta, J. (1997), Elements of Econometrics (Reprint Edition), University of Michigan

Press, New York.7 Koutsoyiannis, A. (1977), Theory of Econometrics (2nd ed.), The Macmillan Press Ltd.

London.8 Krishna, K.L. (Ed.) (1997), Econometric Applications in India, Oxford University Press,

New Delhi.9 Maddala, G.S. (Ed.) (1993), Econometric Methods and Application (2 Vols), Aldershot U.K.

10 Pindyck, R.S.and Rubinfeld, D. L. (1998), Econometric Models and Economic Forecast,McGraw Hill, New York.

11 Ramu Ramanathan (2002), Introduction to Econometrics with Applications (5thed),Cengage Learning India Pvt Ltd, New Delhi.

12 Theil, H. (1981), Introduction to Econometrics, Prentice Hall of India, Delhi.

24



ACADEMIC YEAR

w.e.f. 2013-14


YEAR I CORE-10 (b)ECO2206 : ECONOMICS OF INSURANCE

CREDIT 3


OBJECTIVES: At the end of this course students will be able to : understand the meaning of various risks, economic security and insurance. Student will be able

to analyze risk and identify relevant different insurance products as a solution to risk. familiarize the students with various type of insurance –life and non-life- and insurance policies. understand IRDA’s regulation and developmental activity and its rationale.

analyze and evaluate various aspect of working of insurance industry as a whole such asreforms in insurance industry, life and non-life segments, underwriting/rating process,distribution channel, various insurance products/pension products and regulatory environment.


UNIT-I

Concepts of Risk and Insurance Perspective

12 hrs.

Concept of Insurance and economic security, Fundamental of uncertainty andrisk- pure risk and speculative risk, exposure to losses, role of insurance.Definition of risk- economic-legal perspective- insurable event, risk pooling–mathematical basis of insurance-law of large numbers and risk transfer- lifeand non-life insurance classification of life, health, general insurance policies.Expected utility and decision making under uncertainty, expected utility anddemand for insurance, concepts of risk management and Elements of riskmanagement- risk assessment, risk control –risk financing.

UNIT-II

Insurance Contract and Various Terms

10 hrs.Feature of insurance contract in life and non-life insurance, indemnity,insurable interest. contribution and subrogation, Representation, utmostgood faith, material facts, Adverse selection and moral hazard, physicalhazard, moral hazard, standard risk.

UNIT-III

Life Insurance and Health Insurance

10 hrs.

Fundamentals of life and health insurance, mortality tables and plans of lifeinsurance, underwriting and rate making of insurance risk, basics ofpremium calculation, classification of policies- individual and groupinsurance for life and health risk. Health Insurance Valuation anddistribution of surplus.

UNIT-IV

General and Miscellaneous Insurance

13 hrs.

Definition of general insurance, types of general insurance - fire insurance,motor insurance, marine insurance and other miscellaneous insurance.Selection of risk, rate making and calculation of premium, various distributionchannels of insurance, technology development and general insurance. Pensionplans-basics principles of retirement planning and pension plans, pension plansin India. Regulation of insurance in India- IRDA act covering regulatoryprovisions for brokers/agents/ insurance firms. other Acts applicable toinsurance contract.

Modes of Transaction The major part of the course will be delivered through class lecture method and lab work. However some topics will be covered by student assignments/ practical exercises on computers. Students will also have exposures to workshops / experts’ lectures on select issues of insurance. Students may also undertake an industry visit and collect primary data on working of insurance activity.

25

M.A.: Semester-II: ECONOMICS: CBCS: CORE-10 (b): ECO2206: ECONOMICS OF INSURANCE


1 Dorfman Mark S. (2009): Introduction to Risk Management and Insurance, 9th edition,Prentice Hall of India, New Delhi.

2 Institute of Certified Risk and Insurance Manager (ICRIM) (2002): Reinsurance Text Book,Hyderabad.

3 Institute of Certified Risk and Insurance Manager (ICRIM) (2002): Risk and InsuranceText Book, Hyderabad.

4 Institute of Certified Risk and Insurance Manager (ICRIM) (2002): Actuarial Principlesand Practice Text Book, Hyderabad.

5 Narayanan H (2008): Indian Insurance - A Profile, Jaico Books Mumbai.6 P K Gupta (2005): Fundamentals of Insurance, Himalaya Publishing House.7 Rejda George E: Principles of Risk Management and Insurance, Pearson Education.8 Vaughan E. J and Therese Vaughan, Essentials of Risk Management and Insurance, John

Wiley and Sons.9 Vaughan E. J and Therese Vaughan, Fundamental of Risk Management and Insurance,

John Wiley and Sons.Web references:

www.irda.orgwww.nai.orgwww.insuranceinstituteofindia.comwww.lifeinsurancecouncil.orgwww.gicouncil.inwww.swissre.comwww.munichre.com

http://www.irda.org

http://www.nai.org

http://www.insuranceinstituteofindia.com

http://www.lifeinsurancecouncil.org

http://www.gicouncil.in

http://www.swissre.com

http://www.munichre.com

26



ACADEMIC YEAR

w.e.f. 2013-14


YEAR I Interdisciplinary Elective-02ECO2208 : URBAN ECONOMICS

CREDIT 3


OBJECTIVES: At the end of this course students will be able to : Get understanding of many economic problems / phenomena/ issues involved in

urban areas and cities. Understand meaning of different terms and concepts of urban economics and

able to analyze the urban problems and in apposition to suggest some solutionsfor the same.

Participate in design and monitoring the developments in the urbanization andpolicy component of urban transport and congestion, municipal finances,housing and slums pollutions and quality of urban life etc.


UNIT-I

Introduction and Urbanization in India

10 hrs.Nature of Urban Areas, and why Urban Areas - Urban Policy Analysis -Definition of Urban Area, Growth of Urbanization and its Sources, Longterm Trends in Urbanization - Classification of Cities by Size, Migration ofCapital and Labour in Urban Areas, Policy Issues.

UNIT-II

Urban Land Use and Housing

10 hrs.

Urban Population Density, Spatial Pattern in Urban Land Use, Land UseControls - Housing Policy in Urban Areas - Demand and Supply Gap andSlums - Public Policy to improve them - Slums and Urban Poverty, UrbanPollution - Clean Air and Property Values, Urban Infrastructure andQuality of Life in Urban Localities.

UNIT-III

Urban Finances

10 hrs.

Revenues and Finances of Municipalities, Urban Infrastructures - Public-Private Partnership Model (PPP) in Urban Transport, Sanitation, Health,Education, Road and Bridges etc. Jawaharlal Nehru National UrbanRenewal Mission (JNNURM) and its Objectives and Working, UrbanReforms.

UNIT-IV

Urban Transportation

15 hrs.

Multiple Modes of Urban Transport - their Competitive andComplementary Role, National Urban Transport Policy 2006, Public(Subsidized Mass) Transport vs. Private Transport with externalitiessuch as lock in Capital in Transport Equipment, Parking Provisions,Pollution, Exposure to Road Accident, Congestion. Cost and Pricing ofTransport Services, Metro Railways and Rapid Bus Transport inMetropolitan Cities, Urban Transport Sector Reform.


Major part of course will be taught by lecture method, class discussion and experience sharing. Students will be given course work in the form of assignments and cases.

27

M.A.: Semester-II: ECONOMICS: CBCS: IDE-02: ECO2208: URBAN ECONOMICS


1 Robert L Bish and Hugh O. Nourse (Latest Edition) - Urban Economics and Policy Analysis,McGraw Hill.

2 Govt of India - Min. of Urban Development and Poverty Alleviation, ANNUAL REPORT2010-11.

3 O’Sullivan Arthur (2003) - Urban Economics, McGraw Hill.4 Prasad B K Sarup (2003) - Urban Development, New Delhi.5 Jain A. K. - Urban Housing & Slums, Read Worthy, New Delhi.6 Harvey Jack Ernie J (2005) - Urban Land Economics, Palgrave.7 Chaudhuri Kameshwar (2000) - Globalization, Governance Reforms and Development in

India, Sage.

28



ACADEMIC YEAR

w.e.f. 2013-14


YEAR I CORE-11ECO2301C11 : DEVELOPMENT ECONOMICS

CREDIT 3

Semester III HOURS 45

OBJECTIVES: At the end of this course students will be able to : Understand the interdependence between social and economic factors for development. Comprehend in adequate detail various processes of development. Develop understanding about the economic development theories and their

applications.

Understand the relation between economic theory and economic development.


UNIT-I

Social and Institutional Aspects of Development

12 hrs.

Economic Growth and Development; Development andunderdevelopment – perpetuation of underdevelopment; Economic andnon economic factors affecting economic growth; Measuringdevelopment and development gap – per capita income, Humandevelopment index and other indices of development and quality of life.Human resource development; Population problem and growth patternsand changes – Demographic dividend; income inequality - Poverty-undernourishment; poverty and environment linkages. Role of capital,labor and technology in economic development.

UNIT-II

Historical Aspects of Development

11 hrs.

Historical approach to economic development – Kuznets - Differing initialconditions. Linear stage theories-Rostow; Neoclassical dependencetheories; Dualistic theory – Theory of unlimited supply of labour – Lewis-Fei Rannis; Urban – Rural migration; Urban informal sector. Economicdevelopment and institutions – markets and market failure, state andstate failure.

UNIT-III

Economic Development Theories

11 hrs.Classical theory of development – contributions of Adam Smith, Ricardoand Malthus; Karl Marx and development of capitalist economy;Schumpeter and capitalist development; Structural analysis ofdevelopment; Imperfect market paradigm.

UNIT-IV

Approaches to Development

11 hrs.

Development Strategy; Partial theories of growth and development –Vicious circle of poverty, Big push, Balanced growth, Unbalanced growth,Critical minimum effort thesis, Low income equilibrium trap; Typology ofDualism – Institutional, Technical, Geographical, Ecological and Social;Savings and capital formation.

Modes of Transaction Lecture method is generally used but along with it as and when required, discussion method would be used. Activity assignments be given to the students and assignment method would help them to learn by doing.

Power Point presentation may be used for delivering lectures.

29

M.A.: Semester-III: ECONOMICS: CBCS: CORE-11: ECO2301C11: DEVELOPMENT ECONOMICS


1 Adelman I (1961), Theories of Economic Growth and Development, Stanford UniversityPress, Stanford.

2 Barrow R. & Sala-Xavier Martin (2007): Economic Growth, Prentice Hall of India.3 Behrman, S and T.N. Srinivasan (1995), Handbook of Development Economic Vol. 3,

Elsevier, Amsterdam.4 Brown M. (1966), On the Theory and Measurement of Technical Changes, Cambridge

University.5 Chenery H and T N Srinivasan (Eds) (1989), Handbook of Development Economics, Vols. 1

& 2, Elsevier, Amsterdam.6 Chenery H B et. (Eds) 91974), Redistribution of Growth, Oxford University Press, Oxford.7 Dasgupta P (1993), An Enquiry in to Well-being and Destitution, Clarendon Press, Oxford.8 Ghatak S (1986), An Introduction to Development Economics, Allen and Unwin, London.9 Gillis M., D, H. Perkins, M. Romer and D.R. Sndograss (1992), Economics of Development

(3rd Edition), W. W. Norton, New York.10 Gimmell N. (1987), Survey in Economic Development, Blackwell, Oxford.11 Higgins B. (1959), Economic Development, W. W. Norton, New York.12 Hogendorn J (1996), Economic Development, Addison, Wesley, New York.13 Kahkonon S. and M. Olson (2002), A New Institutional Approach to Economic

Development, Vistaar.14 Kindelberger C.P. (1977), Economic Development (3rd Edition), McGraw Hill, New York.15 Meier G.M. (1995), Leading Issues in Economic Development (6th Edition), Oxford

University Press, Oxford.16 Myint H (1971), Economic Theory and Underdeveloped Countries, Oxford University Press,

New York.17 Myint, Hla (1965), The Economics of Underdeveloped Countries, Preager, New York.18 Thirwal A.P. (1999) (6th Edition), Growth and Development, McMillan, U.K.19 Todaro M.P. (2003), (8th Edition), Economic Development, Longman, London.20 Weil David N. (2009), (2nd Edition), Economic Growth, Pearson Education.21 Yujiro Hayami and Yoshihisa Godo (2005), (3rd edition) Development Economics from

Poverty to Wealth of Nations, Oxford University Press.

30



ACADEMIC YEAR

w.e.f. 2013-14


YEAR I CORE-12ECO2302C12 : THEORETICAL FOUNDATIONS OF

PUBLIC ECONOMICS

CREDIT 3


OBJECTIVES: To acquaint and equip the students with the theoretical Foundation of the theoryof Public Economics.


UNIT-I

Rationale for Public Policy & Public Choice

11 hrs.

Market failure & Role of Government; Changing perspective: governmentas an agent for economic planning and development; Major function ofBudgetary policy & Its objectives; private goods, public goods, and mixedgoods, merit goods, demerit goods. Theory of club goods.Problems of preference revelation and aggregation of preferences; Votingsystems; Arrow impossibility theorem; An economic theory ofdemocracy.

UNIT-II

Theory of Public Goods & Public Expenditure

12 hrs.

Allocation of resources – provision of public goods; Voluntary exchangemodels; Impossibility of decentralized provision of public goods(contributions of Samuelson and Musgrave); Demand-revealing schemesfor public goods.Wagner’s law of increasing state activities; Wiseman-Peacock hypothesisColin Clark’s Theory other recent theories. Reforms in expenditurebudgeting; Programme budgeting, zero base budgeting, Gender basedbudgeting.

UNIT-III

Taxation

11 hrs.

Theory of incidence; Alternative concepts of incidence – Allocative andequity aspects of individual taxes; Benefit and ability to pay approaches;Theory of optimal taxation; Excess burden of taxes; trade -off betweenequity and efficiency; Theory of measurement of dead weight losses; Theproblem of double taxation.

UNIT-IV

Public Debt

11 hrs.Classical view of public debt; Compensatory aspect of debt policy; Burdenof public debt; Sources of public debt; Debt through created money;Automatic and Discretionary Fiscal stabilizers. Fiscal policy and itsfunctions; various concepts of budgetary deficits and their implications.

Modes of Transaction Lecture Method

31

M.A.: Semester-III: ECONOMICS: CBCS:CORE-12: ECO2302C12: THEORETICAL FOUNDATIONS OF PUBLIC ECONOMICS


1 Atkinson, A.B. and J.E. Siglitz (1980), Lectures on Public Economics, Tata McGraw Hill,New York.

2 Auerbach, A.J. and M. Feldstern (Eds.) (1985), Handbook of Public Economics, Vol.I, NorthHolland, Amsterdam.

3 Buchanan, J.M. (1970), The Public Finances, Richard D. Irwin, Homewood.4 Goode, R. (1986), Government Finance in Developing Countries, Tata McGraw Hill, New

Delhi.5 Houghton, J.M. (1970), The Public Finance: Selected Readings, Penguin, Harmondsworth.6 Jha, R. (1998), Modern Public Economics, Rutledge, London.7 Menutt, P. (1996), The Economics of Public Choice, Edward Elgar, U.K.8 Musgrave, R.A. (1959), The Theory of Public Finance, McGraw Hill, Kogakhusa, Tokyo.9 Musgrave, R.A. and P.B. Musgrave (1976), Public Finance in Theory and Practice, McGraw

Hill, Kogakusha, Tokyo.Journal Articles - As per the instructions and suggestion of the teacher concerned.

32



ACADEMIC YEAR

w.e.f. 2013-14


YEAR I CORE-13ECO2303C13 : INTERNATIONAL TRADE

CREDIT 3


OBJECTIVES: The objective of this paper is to introduce the students with various trade theoriestrade policies and their empirical relevance. The student will be able to analyzetrade issues and evaluate policy option.


UNIT-I

International Trade Theories and their Empirical Verification

12 hrs.

Classical Theory of Trade and its empirical verification, opportunity costapproach -Heckscher-Ohlin model, Empirical Testing and Generalizationto n factors and Goods – Kravis and Linder Theory of Trade, Product –Cycle Hypotheses and other modern theories of trade.

UNIT-II

Trade Theories, Technical Progress and Supply of Factors of Production

11 hrs.Economies of scale and Trade, Imperfect Competition and internationaltrade, intra-industry trade, specific factor model. Rybczynski theorem,Technical progress and terms of trade, Factor price equalization theorem.

UNIT-III

Trade Policies

11 hrs.

Instruments of Trade Policy Theory of tariff, Arguments for Protection -Tariff and rewards to factors of production, Stolper - Samuelsontheorem- Metzler paradox, Political economy of trade policy, strategictrade policies.

UNIT-IV

Regional Block and World Trading System

11 hrs.The theory of customs union – European union, Regional Tradingarrangements NAFTA, ASEAN, SAARC, WTO, UNCTAD and World Tradingsystem, International Factor movements, Multinational firms.


This course will be delivered through lectures. However, there will be class discussions on recentdevelopments. There will be practical exercises on numerical problems and assignments whereverpossible.

33

M.A.: Semester-III: ECONOMICS: CBCS: CORE-13: ECO2303C13: INTERNATIONAL TRADE


1 Bhagwati, J. (Ed.) (1981), International Trade, Selected Readings, Cambridge, UniversityPress, Massachusetts.

2 Carbough, R.J., International Economics, International Thempson Publishing, New York.3 Chacholiades, M. (1990), International Trade: Theory and Policy, McGraw Hill, Kogakusha,

Japan.4 Dana, M.S. (2000), International Economics: Study, Guide and Work Book, (5th Edition),

Rutledge Publishers, London.5 Dunn, R.M. and J.H. Mutti (2000), International Economics, Rutledge, London.6 Government of India: Economic Survey Annual Issue.7 Kenen, P.B. (1994), The International Economy, Cambridge University Press, London.8 King, P.G. (1995), International Economics and International Economic Policy: A Reader,

McGraw Hill International, Singapore.9 Krugman, P.R. and M. Obstfeld (1994), International Economics: Theory and Policy,

Glenview, Foresman.10 RBI Annual Report, Latest Issue.11 RBI: Report on Currency and Finance, Annual Issue.12 Salvatore, D., International Economics, Prentice Hall, Upper Saddle River, N.J. New York.13 Soderston, Bo and Reed, International Economics, The Macmillan Press Ltd. London.

34



ACADEMIC YEAR

w.e.f. 2013-14


YEAR I CORE-14ECO2304C14 : WELFARE ECONOMICS

CREDIT 3


OBJECTIVES: At the end of this course students will be able to: To enable the student to understand the important distinction between positive

Economics & Normative Economics. To analyze desirability of outcomes of positive economics and policy outcomes.


UNIT-I

Fundamentals of Classical Welfare Economics

11 hrs.

The Issue of Welfare and Justice in the Exchange Economy. Welfare in theFramework of General Equilibrium. – Hedonism and the Benthamiteapproach to Aggregate Welfare, Optimum resource allocation andwelfare maximization. – Utility Function of individuals, Problems in inter-personal Utility comparison, issues in income distribution. – Marshallianconception of welfare economics, consumer’s surplus, measurement ofconsumer’s surplus and the problems involved in the measurement.Pigouvian views on private and social cost.

UNIT-II

Restructuring Classical Welfare Economics

11 hrs.

The Principle of compensating variation, Hicksian types of consumer’ssurplus, Slutsky’s approach to measurement of consumer’s surplus. – TheConcept and the conditions of Pareto Optimality, Pareto optimality in theGeneral Equilibrium system. – Compensation criteria contributions ofBarone, Hicks and Kaldor. Scitovsky criterion. – Applications ofCompensation Principle to tax/bounty effects.

UNIT-III

New Welfare Economics-I

11 hrs.

Social Optimum, Community indifference map, Samuelson’s utilitypossibility curve – Bergson’s Concept of Welfare and its Measurement. –Social Welfare Function, Arrow’s Possibility Theorem and itsimplications. – Problems of non-market interdependence, externalities inproduction and consumption, problems of accounting and pricing.

UNIT-IV

New Welfare Economics-II

12 hrs.

External economics and diseconomies. Problems in Accounting. –Problems of Public Goods and Negative spillovers. The Problem ofMarket Failure. – The Second Best Problem, issues related with thesecond-best problem. Interdependent utilities. – Welfare, justice andefficiency, Cascading effects of injustice on efficiency. – Considerations ofwelfare in public policies and programmes, Evaluation of public Policies.Amartya Sen’s contribution & significance of his work.


Majority of course instruction will be through class room lectures. Part of the Course work will be given in the form of tutorials and assignments. Some of the topics will be accomplished through class discussion.

35

M.A.: Semester-III: ECONOMICS: CBCS: CORE-14: ECO2304C14: WELFARE ECONOMICS


1 Baumol, W. J. (ed.) (2001), Welfare Economics, Edward Elgar Publishing Ltd. UK2 Broadway, R. W. and N. Bruce (1984), Welfare Economics, Basil Blackwell, Oxford.3 Browning EK & Browning J. M. (1986), Microeconomic Theory & Applications, Kalyani

Publishing. 4 Domick Salvatore (2009), Principles of Micro Economics, Ox Ford University Press.5 Frank Robert H. (2006), Micro Economic & Behaviour, McGraw Hill International.6 Little, I.M.D. (1957), A Critique of Welfare Economics, Oxford Univ. Press, Oxford. (2nd

edition).7 Maurice S. Charles and Philips Owen R. (1992), Economic Analysis – Theory and

Applications, Richard D. Irwin, Inc.8 Myint, Hla (1984), Theories of Welfare Economics, Longmans, London.9 Quirk, J. and R. Saposnik (1968), Introduction to General Equilibrium Theory and Welfare

Economics, McGraw Hill, New York.10 Solberg Eric J. (1982), Intermediate Microeconomics – Business Publications, Inc.

Additional Reading List:1 Blaug, M. (1987), Economic Theory in Retrospect, Cambridge University Press, London.2 Feldman, A. M (1980), Welfare Economics and Social Choice Theory, Kluwer Nijkoff,

Boston.3 Pearce, D W and C A Nash (1981), The Social Appraisal of Projects: A text in Cost Benefit

Analysis, Halsted Press. John Wiley & Sons, New York.4 Varian, H R (1992), Microeconomic Analysis, W Norton & Co. New York.

36



ACADEMIC YEAR

w.e.f. 2013-14


YEAR I CORE-15 (a)ECO2305C15 : ECONOMICS OF GENDER AND

DEVELOPMENT

CREDIT 3


OBJECTIVES: To acquaint and equip the students with the Economics of Gender anddevelopment concerns.


UNIT-I

Introduction to Gender Studies

12 hrs.

Concept of gender and importance of gender studies, gender inmainstream Economics. Gender bias in the theories of value, distributionand population. Review of ‘neo-classical’ economics and analysis ofBecker’s economics of the family. Bargaining models. Feministeconomics; Approach and a critique of mainstream economic conceptsand methodology.

UNIT-II

Demographic Aspects

11 hrs.

Demography of female population: Age structure, mortality rates, and sexratio – Causes of declining sex ratios and fertility rates in LDCs andparticularly India – Theories and measurement of fertility and its control:Women and their access to nutrition, health, education, and social &community resources - their impact on female mortality and fertility,economic status – impact on work participation rate. Impact oftechnological development and modernization on women’s workparticipation.

UNIT-III

Women’s Work and Development

11 hrs.

Concept of ‘Work’: Productive and unproductive, visible and invisible,paid and unpaid work, economically productive and socially productivework. Methods of evaluating women’s unpaid domestic work andwomen’s contribution to national income. Returns to girls’ education andwomen’s contribution to national income. Gender and developmentIndices. Government policies and their critical appraisal.

UNIT-IV

Women and Labour Market

11 hrs.

Intra-household decision making and division of labour within thehousehold. Factors affecting decision making. Human capital models andlabour market discrimination theories: Approaches and limitations.Gendered attachments to the labour market: gender differences inoccupation and earnings across different sectors. Wages-Structure anddifferentials.

Modes of Transaction Lecture Method and assignment.

37

M.A.: Semester-III: ECONOMICS: CBCS:

CORE-15 (A): ECO2305C15: ECONOMICS OF GENDER AND DEVELOPMENT


1 Gary S. Becker (1991). A Treatise on the Family, Harvard University Press,2 Government of India (1974), Towards Equality – Report of the Committee on the Status of

Women in India, Department of Social Welfare, Ministry of Education and Social Welfare,New Delhi.

3 Joyce P. Jacobson (1998), Economics of Gender (2nd Edition), Blackwell Publishing, NewYork.

4 Krishnaraj, M, R.M. Sudarshan and A. Shariff (1999), Gender, Population and Development,Oxford University Press, New Delhi.

5 Seth, M. (2000), Women and Development: The Indian Experience, Sage Publications, NewDelhi.

6 Srinivasan K. and A. Shroff (1998), India: Towards Population and Development Goal,Oxford University Press, New Delhi.

7 Venkateswaran, S. (1995), Environment, Development and the Gender Gap, SagePublications, New Delhi.

8 Wazir, R. (2000), The Gender Gap in Basic Education: NGOs as Change Agents, SagePublication, New Delhi.Journal Articles: As per the instructions and suggestion of the teacher concerned.

38



ACADEMIC YEAR

w.e.f. 2013-14


YEAR I CORE-15 (b)ECO2306C15 : INDUSTRIAL ECONOMICS

CREDIT 3


OBJECTIVES: To acquaint and equip the students with the theory of Industrial Economics.COURSE CONTENT / SYALLABUS

UNIT-I

Framework and Problems of Industrial Economics

12 hrs.Scope of Industrial Economics, Concept and organization of a firm;ownership, control and objectives of the firm; Passive and activebehaviour of the firm; Various Theories of firm; Black Box view of thefirm; and the modern contractual approach; classification of industries.

UNIT-II

Market Structure

11 hrs.Sellers’ concentration; Product differentiation; Entry conditions;Economies of scale and scope; Market structure and profitability; Marketstructure and innovation; Theories of industrial location – Weber andSargent Florence; Factors affecting location.

UNIT-III

Market Conduct

11 hrs.Product pricing – theories and evidence; Theories and empirical evidenceon Merger and acquisitions (M & As) and diversification, Research andDevelopment, Advertising, Vertical restraints.

UNIT-IV

Market Performance

11 hrs.Growth of the firm – Size and growth of a firm; Growth and profitabilityof the firm; Constraints on growth; Productivity, efficiency and capacityutilization – Concept and measurement. Market concentration andmarket performance.

Modes of Transaction Lecture Method.

M.A.: Semester-III: ECONOMICS: CBCS: CORE-15 (b): ECO2306C15: INDUSTRIAL ECONOMICS


1 Armstrong, M and Porter R (2007) Handbook of Industrial Organization. North -Holland2 Barthwal, R.R. (1992), Industrial Economics, Wiley Eastern Ltd., New Delhi.3 Divine, P.J. and R.M. Jones et.al. (1976), An Introduction to Industrial Economics, George

Allen and Unwin Ltd., London.4 Hay, D. and D.J. Morris (1979), Industrial Economics: theory and Evidence, Oxford

University Press, New Delhi.5 Stephen Martin (1989), Industrial Economics, Maxwell Macmillan.

Journal Articles: As per the instructions and suggestion of the teacher concerned.

39



ACADEMIC YEAR

w.e.f. 2013-14


YEAR I Interdisciplinary Elective-03ECO2308E03 : GUJARAT ECONOMY

CREDIT 3


OBJECTIVES: At the end of this course students will be able to: To enable the student to understand the various aspects of Gujarat Economy as

a growing economy. To analyze the future prospects of Gujarat Economy.


UNIT-I

Gujarat Economy – An Overview

12 hrs.Gujarat in Indian Economy - Growth and Structural Change in theEconomy of Gujarat - Economic Scene of Gujarat - District level Planningin Gujarat - Infrastructure in Gujarat, Pattern of Financial Outlays.

UNIT-II

Agriculture and Rural Development

11 hrs.Agricultural and Irrigation Development - Land use Pattern, Issues inAgricultural Productivity, New Agro – Industrial Policy, Sources ofIrrigation Institutional set up for Irrigation Development – AgriculturalMarketing Infrastructure – Allied Agricultural Activities.

UNIT-III

Industry and Urban Development

11 hrs.Pattern of Industrial Development in Gujarat - Key Industries in Gujarat,Industrial Policy of Gujarat, Urbanization - Process, Development andrelated problems - Social Sector in Gujarat - Employment Scenario -Environmental Problems of Industrialization and Urbanization.

UNIT-IV

Financial Development in Gujarat

11 hrs.Public Sector Financial Institution in Gujarat: Functions and Working -Banking in Gujarat - Commercial Banks - Rural Credit in Gujarat: MicroFinance and Credit Co-operatives - Financing of Government of Gujarat.


Majority of course instruction will be through class room lectures. Part of the Course work will be given in the form of tutorials and assignments. Some of the Topics will be accomplished through class discussion.

M.A.: Semester-III: ECONOMICS: CBCS: IDE-03: ECO2308E03: GUJARAT ECONOMY


1 Bhatt, B. K. (2009) - The Gujarat Economy (2nd Revised Edition), Vrinda Publication Ltd. NewDelhi.

2 Bureau of Economics and Statistics, Govt. of Gujarat – Socio-Economic Survey of Gujarat.

3 Govt. of Gujarat – Annual Budget of Govt. of Gujarat.

4 Menon, Sudha V. (2010) - Gujarat Economy: The Way Ahead, The ICFAI University Press.

40



ACADEMIC YEAR

w.e.f. 2013-14


YEAR I CORE-16ECO2401C16 : ECONOMIC GROWTH AND

STRUCTURAL CHANGE

CREDIT 3

Semester IV HOURS 45

OBJECTIVES: At the end of this course students will be able to: Understand the importance of factors of production in growth process. Comprehend in adequate detail the role of Technological progress in Growth

processes. Understand the structural changes accompanying development process. Understand the relation between Growth theory and Planning Process.


UNIT-I

Economic Growth and Technological Change

11 hrs.

Statics, Dynamics and Steady State Growth; Choice of technique; Technologicalprogress – embodied and disembodied technical progress; neutral and non-neutral Technical Progress [Hicks and Harrod’s views]; learning by doing, Paceof technological change; Production function approach to economic growth,Power functions; Total factor productivity and growth accounting. Technicalefficiency and scale of operation; Embodied technical change and measurementbias.

UNIT-II

Economic Growth and Economic Models

12 hrs.

Growth models – Harrod-Domar growth models; Neo-Classical growth models –Solow and Meade, Joan Robinson’s growth models; Cambridge criticism of Neo-classical analysis of growth, the capital controversy. Growth models of Kaldorand Tobin; Extension of Neo-classical models: The new growth theory;Endogenous growth; Intellectual capital: role of learning, education andresearch; AK model – Explanation of cross country differentials in economicgrowth.

UNIT-III

Growth and Structural Change

11 hrs.

Morphology of Growth – Structural changes accompanying growth – Patterns ofsectoral changes. Trends in growth of National Income; Development andStructural Change – Engel’s elasticities – Structural changes in Demand –Production – Investment- labour absorption – Migration - Trade; Sectoralproductivity - growth and Distribution; Inequalities; Inverted ‘U’ Hypothesis;Regional Development - centre periphery theory – Inter regional and intraregional development.

UNIT-IV

Allocation of Resources & Development Planning

11 hrs.

Market failure and state failure, Need for investment criteria in developingcountries - present vs., future, Alternative investment criteria; Cost - benefitanalysis, Shadow prices, Project evaluation. Need for planning - democraticdecentralized and indicative planning, micro level planning, regional planning;Plan models in Indian Planning , Alternative strategy, Input Output Models andLinear Programming. East Asian miracle, India and China in 21st century.

Modes of Transaction Lecture method is generally used but along with it as and when required, discussion method would be used. Activity assignments be given to the students and assignment method would help them to learn by doing. Power Point presentation may be used for delivering lectures.

41

M.A.: Semester-IV: ECONOMICS: CBCS:CORE-16: ECO2401C16: ECONOMIC GROWTH AND STRUCTURAL CHANGE


1 Adelman I (1961), Theories of Economic Growth and Development, Stanford UniversityPress, Stanford.

2 Barrow R. & Sala-Xavier Martin (2007), Economic Growth, Prentice Hall of India.3 Behrman, S and T.N. Srinivasan (1995), Handbook of Development Economic Vol. 3,

Elsevier, Amsterdam.4 Brown M. (1966), On the Theory and Measurement of Technical Changes, Cambridge

University.5 Chenery H B et. (Eds) 91974), Redistribution of Growth, Oxford University Press, Oxford.6 Chenery H and T N Srinivasan (Eds) (1989), Handbook of Development Economics, Vols. 1

& 2, Elsevier, Amsterdam.7 Dasgupta P 1993), An Enquiry in to Well-being and Destitution, Clarendon Press, Oxford.8 Ghatak S (1986), An Introduction to Development Economics, Allen and Unwin, London.9 Gillis M., D, H. Perkins, M. Romer and D.R. Sndograss (1992), Economics of Development

(3rd Edition), W. W. Norton, New York.10 Gimmell N. (1987), Survey in Economic Development, Blackwell, Oxford.11 Higgins B. (1959), Economic Development, W. W. Norton, New York.12 Hogendorn J (1996), Economic Development, Addison, Wesley, New York.13 Kahkonon S. and M. Olson (2002), A New Institutional Approach to Economic

Development, Vistaar.14 Kindelberger C.P. (1977), Economic Development (3rd Edition), McGraw Hill, New York.15 Meier G.M. (1995), Leading Issues in Economic Development (6th Edition), Oxford

University Press, Oxford.16 Myint, Hla (1965), The Economics of Underdeveloped Countries, Preager, New York.17 Myint H (1971), Economic Theory and Underdeveloped Countries, Oxford University Press,

New York.18 Todaro M.P. (2003), (8th Edition), Economic Development, Longman, London.19 Thirwal A.P. (1999) (6th Edition), Growth and Development, McMillan, U.K.20 Weil David N. (2009), (2nd Edition), Economic Growth, Pearson Education.21 Yujiro Hayami and Yoshihisa Godo (2005), (3rd edition) Development Economics from

Poverty to Wealth of Nations, Oxford University press.

42



ACADEMIC YEAR

w.e.f. 2013-14


YEAR I CORE-17ECO2402C17 : FISCAL FEDERALISM – WITH

REFERENCE TO INDIA

CREDIT 3


OBJECTIVES: To acquaint and equip the students with the principles and theory of Fiscalfederalism and the functioning of Fiscal Federalism in India.


UNIT-I

Principles and Structure of Multiunit Finance

12 hrs.Canons of Fiscal Federalism; Fiscal powers of different levels ofgovernment and system of inter-governmental resource transfer in Indiaand Fiscal relations. Finance Commission and Planning Commission;Various fiscal issues across Centre-State-local level governments.

UNIT-II

Growth and Structure of Government Expenditure and Revenue

11 hrs.Public sector in national income accounts. Growth, structure,composition of various components of government (Central and State)expenditure and revenue. Causes of expenditure and revenue growth.

UNIT-III

Tax System and Public Debt

11 hrs.Tax system in India, its features and reforms; public debt of central andstate governments; various types of deficits and their implication,approach and measures to debt servicing.

UNIT-IV

Local Government Finance

11 hrs.Nature of fiscal decentralization at Panchayat and municipal corporationlevels. Functions and powers. Finance Commission and local governmentbodies, Role and function of State Finance Commission.

Modes of Instruction: Lecture method and assignments.

M.A.: Semester-IV: ECONOMICS: CBCS:CORE-17: ECO2402C17: FISCAL FEDERALISM – WITH REFERENCE TO INDIA


1 Bhatia H.L. Public Finance, Vikas Publishing House Pvt. Ltd, New Delhi.2 Prakash Om, Public Economics- Theory and Practice, Vishal Publishing Co, Jalandhar-

Delhi.3 Government of India: Finance Commission Report, Reserve Bank of India.


43



ACADEMIC YEAR

w.e.f. 2013-14


YEAR I CORE-18ECO2403C18 : INTERNATIONAL FINANCE AND

MONETARY SYSTEM

CREDIT 3


OBJECTIVES: At the end of the course student will be able to: Analyze BOP issues and trends in the open economy. This course will provide students with the knowledge relating to various aspects of

BOP, International Monetary and Financial Institution and their impact on Indian economy as well as global economy.

The student will be able to understand the working of exchange rate mechanism and foreign exchange market.


UNIT-I

Balance of Payments

12 hrs.

Equilibrium and disequilibrium in the balance of payment; The process ofadjustment under systems of Gold standard, fixed exchange and flexibleexchange rates; Income adjustment approach – foreign trade multiplier withand without foreign repercussions and determination of national income andoutput; a critical review of the monetary approach to the theory of balance ofpayments adjustment; Expenditure-reducing and expenditure-switchingpolicies and direct controls for adjustment.

UNIT-II

International Finance

11 hrs.

International Financial Markets – Foreign Exchange Markets – spot and forwardmarket Exchange rate determination – purchasing power parity conditions.Interest Rate Arbitrage and Interest Rate Parity conditions, Exchange Rates –Overshooting and undershooting – J curve effect– Emerging capital market –ADR & GDR, International Debt Problem and Risk exposure of banks. Euromarket.

UNIT-III

International Financial Institutions and Monetary System

11 hrs.

Rise and fall of gold standard and Bretton-woods system; Need, adequacy anddeterminants of international reserves; Conditionality clause of IMF; EmergingInternational Monetary System and Reform of the International Monetarysystem and its relevance to India and developing countries; theory of short-term capital movement; East-Asian Crisis and lessons for developing countries;Objectives and functions of IMF, World Bank and Asian Development Bank –their achievements and failures.

UNIT-IV

India’s Exchange Rate Arrangements

11 hrs.

India’s exchange Rate Policy prior and after 1991, full convertibility of Rupee,Foreign Capital inflows – FDI and FPI, India’s international Debt composition –Policies for achieving internal and external equilibrium simultaneous underalternative exchange rate regimes; An overview of India’s Balance of Paymentcrisis – 1966, 1975, 1981, 1991. Structural changes in India’s balance ofpayments in the post liberalization period – non debt creating inflows on capitalaccount and their implications and FEMA.

Mode of Transaction: This course will be delivered through lectures. However, there will be class discussions on recent developments.

There will be practical exercises on numerical problems and assignments where ever possible

44

M.A.: Semester-IV: ECONOMICS: CBCS:CORE-18: ECO2403C18: INTERNATIONAL FINANCE AND MONETARY SYSTEM


1 Carbough, R.J., International Economics, International Thempson Publishing, New York.2 Dana, M.S. (2000), International Economics: Study, Guide and work Book, (5th Edition),

Rutledge Publishers, London.3 Dunn, R.M. and J.H. Mutti (2000), International Economics, Rutledge, London.4 Government of India: Economic Survey Annual Issue.5 Kenen, P.B. (1994), The International Economy, Cambridge University Press, London.6 King, P.G. (1995), International Economics and International Economic Policy: A Reader,

McGraw Hill International, Singapore.7 Krugman, P.R. and M. Obstfeld (1994), International Economics: Theory and Policy,

Glenview, Foresman.8 RBI Annual Report, Latest Issue.9 RBI: Report on Currency and Finance, Annual Issue.

10 Salvatore, D., International Economics, Prentice Hall, Upper Saddle river, N.J. New York.11 Soderston, Bo and Reed, International Economics, The Macmillan Press Ltd. London.

45



ACADEMIC YEAR

w.e.f. 2013-14


YEAR I CORE-19ECO2404C19 : ECONOMICS OF HUMAN RESOURCES

CREDIT 3


OBJECTIVES: At the end of the course student will be able to: To provide an overview of the theoretical aspects of human resource development. To understand the importance of investment in education for economic growth. To understand the cost-benefit aspect of educational planning. To understand the economic dimensions of health as investment. To review the development of health and education in India. To understand, in detail, the economic foundations of the labor market – its features and

functioning. To study the impact of trade unions on wages and factors responsible for wage differentials. To develop an understanding of the theories of discrimination in the labor market and

migration.


UNIT-I

Foundations of Human Resource Development

11 hrs.

Human Capital and human resource development: Meaning, measurement andimportance – Human versus Physical Capital – differences in features andmeasurement – forms of human capital investment – on-the-job training:general and specific – human capital in growth accounting – Strategies forHuman Resource Development – Human Development Index – subsequentmodifications.

UNIT-II

Education

11 hrs.

Economic dimensions of health and education – Role of Education in EconomicGrowth – determinants of demand for education – private and socialcosts/benefits of education – cost-benefit approach to educational planning indeveloping economies – manpower requirements approach – education andlabor market – educational financing – issues in educational development inIndia.

UNIT-III

Health

10 hrs.

Education and health : similarities and differences – Economic dimensions ofhealth – determinants of health – supply of and demand for health care – healthfinancing – welfare implications of pricing health services – health indices –cost-benefit and cost-effectiveness in health care provision – issues in healthdevelopment in India.

UNIT-IV

Labour

13 hrs.

Characteristics of labor – components of labor supply – labor force: concept andmeasurement – demand for labor: competitive and non-competitive markets –supply and demand together: the search process – union effects on labormarkets – collective bargaining – wage differentials – theories of labor marketdiscrimination – migration.

Mode of Transaction: The major part of the course work will be taught by the lecture method but wherever necessary, discussion on different

practical issues will also be employed. Some portion of the course work would be given to students in the form of assignments. Audio-visual aids in terms of PowerPoint presentations of assignments by students would be encouraged. Teachers will also be encouraged to use such audio-visual aids in explaining certain concepts. Wherever feasible, students may be taken on field trips to gather data as well as observe the working of the economy.

46

M.A.: Semester-IV: ECONOMICS: CBCS:CORE-19: ECO2404C19: ECONOMICS OF HUMAN RESOURCES


1 Bellante, D. and M. Johnson (1983) – Labor Economics: Choice in Labor Markets, McGraw Hill, Singapore.

2 Blaug, Mark (1970) – An Introduction to Economics of Education, Penguin.3 Borjas, G.J. (1996) – Labor Economics, McGraw Hill, Singapore.4 Journal of Political Economy: Investment in Human Beings (1962) – Supplement Edition,

Vol. LXX, No.5, Part 2, October.5 Kutty, V. Raman (1999) – A Primer of Health Systems Economics, Allied Publishers, New

Delhi.6 Lekhi, R.K. (1999) – The Economics of Development and Planning, Kalyani Publishers, New

Delhi.7 Rees, Albert and Daniel Hamermesh (1984) – Economics of Work and Pay, New York,

Haper & Row Publishers.8 UNDP – Human Development Reports – Various Issues.9 Woodhall, Maureen (1970) – Cost-benefit Analysis in Educational Planning, UNESCO.

10 Bellante, D. and M. Johnson (1983) – Labor Economics: Choice in Labor Markets, McGraw Hill, Singapore.

47



ACADEMIC YEAR

w.e.f. 2013-14


YEAR I CORE-20 (a)ECO2405C20 : ECONOMICS OF INFRASTRUCTURE

CREDIT 3


OBJECTIVES: To acquaint and equip the students with the theory and practice of Economics ofInfrastructure.


UNIT-I

Introduction

12 hrs.

Infrastructure and economic development – Infrastructure as a publicgood; social and physical infrastructure; Special characteristics of publicutilities. The peak-load, Off-Load Problem, Dual Principle Controversy;Economies of scale of Joint supply; Marginal Cost Pricing vs. othermethods of pricing in public utilities; Cross-subsidization – free prices,equity and efficiency.

UNIT-II

Transport and Communication

11 hrs.

The structure of transport costs. Transport models of freight andpassenger Demand. Modal Choice: Cost Functions in the TransportSector, Special Problems of Individuals Modes of Transport with respectto pricing and financing; Inter-Modal Mix in the Indian Situation.Organizational characteristics of communication industry and issuesrelated to pricing and financing.

UNIT-III

Electricity and Gas

11 hrs.Institutional Framework and Issues, Bulk Supply and Pricing ofElectricity. The Relative Economics of thermal, hydel and nuclear PowerPlants. Various reforms in power sector of India. The Case for a NationalPower Grid. The Exploitation of Natural Gas. Pricing Problem.

UNIT-IV

Social Infrastructure

11 hrs.Supply, Demand, Pricing and Financing of Social Infrastructure, Demandand Supply of Education, its relationship with employment, poverty,internal migration and brain drain, Health System Characteristics,Measurement, distribution, and Financing.

Mode of Transaction: Lecture method and assignment.

M.A.: Semester-IV: ECONOMICS: CBCS:CORE-20 (a): ECO2405C20: ECONOMICS OF INFRASTRUCTURE


1 Crew, M.A. and P.R. Kleindorfer (1979), Public Utility Economics, Macmillan, London.

2 Parikh, K.S. (Ed.) (1997), India Development Report 1997, Oxford, New Delhi.

3 Parikh, K.S. (Ed) (1999), India Development Report – 1999-2000, Oxford, New Delhi.

4 Turvey, R. (Ed.) (1968), Public Enterprises, Penguin, Harmondsworth.

5 India Infrastructure Report.


48



ACADEMIC YEAR

w.e.f. 2013-14


YEAR I CORE-20 (b)ECO2406C20 : MATHEMATICAL ECONOMICS

CREDIT 3


OBJECTIVES: At the end of this Course Students will be able to Describe the concepts and objectives of study of Mathematical Economics Formulate economic theory (Micro & Macro) in Mathematical Framework. Enhance their understating of economic theory with a greater degree of precision. Explain economic theory with examples from real life. Throw light on inter-relationships among economic variable and provide an economic

framework for empirical verification of theories.


UNIT-I

Comparative Static Methodology-I

13 hrs.

Equilibrium & Optimization: Cardinal and Ordinal Utility, Ordinal utilitymaximization, Slutsky equation, Ordinary and Compensated demandfunctions, income, substitution and price effect, concept of elasticities -consumer’s & producer’s surplus – Economic applications of differenceand differential equations.

UNIT-II

Comparative Static Methodology-II

11 hrs.Production function – homogeneous and non-homogeneous, Propertiesand derivation of production functions, cost functions, producer’sequilibrium – laws of returns and returns to scale, constrainedoptimization by a producer, input demand functions, adding up theorem.

UNIT-III

Analysis of Equilibrium & Game Theory

10 hrs.

Price determination in perfect competition, monopoly; DiscriminatingMonopoly, Monopolistic Competition, duopoly, oligopoly, andmonopsony; Bilateral monopoly, Game Theory : Concept of game – Twoperson Zero-sum game, pure and mixed strategies, Maximin, Minimaxand Saddle point solutions, non-constant sum game, prisoner’s dilemma,Nash Equilibrium.

UNIT-IV

Mathematical Programming and Input Output Analysis

11 hrs.Non-linear programming and its applications – Kuhn Tucker conditionsand inequality constraints, Input-Output Analysis - Open and closedsystem, Hawkins-Simon conditions, Leontief dynamic system.

Mode of Transaction: Lecture method is generally used but along with it as and when required discussion method would be fruitful. Activity assignments (i.e. practical numerical problems) may be given to the students and assignment method

would help them to learn by doing Students may be given training by use of computer. Power Point presentation may be used for delivering lectures.

49

M.A.: Semester-IV: ECONOMICS: CBCS:CORE-20 (b): ECO2406C20: MATHEMATICAL ECONOMICS


1 Allen R.G.D. (1976), Mathematical Economics, Macmillan, London.2 Arrow K.J. and M. Intrilligator (Eds.) (1992), Handbook of Mathematical Economics,

Volumes I, II and III, North Holland, Amsterdam.3 Baumol W. J. (1987), Economic Theory and Operations Analysis, 4th Edition, Prentice Hall

of India Pvt. Ltd. New Delhi.4 Chiang A.C. (2005), Fundamental Methods of Mathematical Economics, 4th Edition,

McGraw Hill, New Delhi.5 Edward T. Dowling (1992) Schaum’s Outline of Theory and Problems of Introduction to

Mathematical Economics, 2nd Edition, McGraw-Hill, Inc.6 Hands, D.W. (1991), Introductory Mathematical Economics, D.C. Heath.7 Handy, S.T. (1997), Operations Research, Prentice-Hall of India, New Delhi.8 Henderson, J. and R.E. Quandt (1980), Microeconomic Theory: A Mathematical Approach,

McGraw Hill, New Delhi.9 Michael Hoy, John Livernois, Chris McKenna, Ray Rees & Thanasis Stengos (2004),

Mathematics for Economics, 2nd Edition, Prentice Hall of India Pvt. Ltd., New Delhi.10 Mukherji, B. and V. Pandit (1982), Mathematical Method of Economic Analysis, Allied

Publishers, New Delhi.11 Taro Yamane (2000), Mathematics for Economics-An Elementary Survey, 2nd Edition,

Prentice Hall of India Pvt. Ltd. New Delhi.

50



ACADEMIC YEAR

w.e.f. 2013-14


YEAR I Interdisciplinary Elective-04ECO2408E04 : RURAL ECONOMICS

CREDIT 3


OBJECTIVES: At the end of this course students will be able to: Have a conceptual knowledge about Rural Economics. Understand the dynamics of rural development and the socio-ecological system. Identify and analyze the various aspects affecting rural economy in the Indian context.


UNIT-I

Introduction

11 hrs.Concepts: Rural areas – Rural Socio-Ecological System and its components, Land- use pattern, Population: Magnitude, rural – urban distribution, occupationalstructure, work-force participation, rural poverty and Income.

UNIT-II

Agriculture

11 hrs.

Land reforms: Need, measures of land reforms in India, concept of economicholdings, size and pattern of land holdings in India; Agricultural inputs andproduction, effects of green revolution and measures for improvement; AlliedAgricultural enterprise and its impact on rural economy: Plantation,Horticulture Animal husbandry, dairying and fisheries.

UNIT-III

Rural Industries and Rural Finance

11 hrs.Rural Industry: Importance, types & problems - Handicrafts - Handloom, Khadiand Village Industries, Food processing industries, coir industry. Rural Finance and Credit System: types, institutions & problems.

UNIT-IV

Social Sector and Infrastructure Development

12 hrs.Rural Housing, Rural Health, Sanitation and Water, Education, Roads, Transportand Communication, Electrification, Rural Development Programmes, BharatNirman, Rural Administration – Panchayati Raj System.

Modes of Transaction: Lectures – Class Discussion.

M.A.: Semester-IV: ECONOMICS: CBCS: IDE-04: ECO24086E04: RURAL ECONOMICS


1 Ishwar Dhingra (Latest Edition) - The Indian Economy, Sultan Chand & Sons Publications.

2 Gaurav Dutt and A. Mahajan (Latest Edition) - Dutt and Sundharam’s Indian Economy, SultanChand & Sons Publications.

3 Astha Ahuja - Agriculture and Rural Development in India – Post Liberalization Initiatives, NewCentury Publications, New Delhi.

4 Dr. Chandra Shekhar Prasad (2007) - Agriculture and Rural Development in India since 1947, NewCentury Publications, New Delhi.

5 K. Hanumantha Rao - Rural Development Statistics 2009-2010, National Institute of RuralDevelopment.

6 Satya Sundar (Latest Edition) - Rural Development, Himalaya Publishing House.

7 Dr. Gopal Lal Jain - Rural Development, Mangal Deep Publications, Jaipur.

8 Mustafa (2010) - Indian Rural Economy, Serials Publications 4008/24, 1st Floor Ansari Road Darya Gunj, New Delhi – 110 002.

Documents

ECONOMICS 4 -Semester Course