economics ias and ies mains syllabus

7/28/2019 economics ias and ies mains syllabus

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CS ECONOMICS

PAPER I

1. Advanced Micro Economics:

(a) Marshallian and Walrasiam Approaches to Price determination.

(b) Alternative Distribution Theories: Ricardo, Kaldor, Kaleeki.

(c) Markets Structure: Monopolistic Competition, Duopoly, Oligopoly.

(d) Modern Welfare Criteria: Pareto Hicks & Scitovsky, Arrows Impossibility

Theorem, A.K. Sens Social

Welfare Function.

2. Advanced Macro Economics:

Approaches to Employment Income and Interest Rate determination:

Classical, Keynes (IS-LM) curve, Neo

classical synthesis and New classical, Theories of Interest Rate determination

and Interest Rate Structure.

3. Money - Banking and Finance:

(a) Demand for and Supply of Money: Money Multiplier Quantity Theory of

Money (Fisher, Pique and

Friedman) and Keynes Theory on Demand for Money, Goals and Instruments

of Monetary Management

in Closed and Open Economies. Relation between the Central Bank and theTreasury. Proposal for ceiling

on growth rate of money.

(b) Public Finance and its Role in Market Economy: In stabilization of supply,

allocation of resources and in

distribution and development. Sources of Govt. revenue, forms of Taxes and

Subsidies, their incidence and


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effects. Limits to taxation, loans, crowding-out effects and limits to

borrowings. Public Expenditure and its

effects.

4. International Economics:

(a) Old and New Theories of International Trade

(i) Comparative Advantage

(ii) Terms of Trade and Offer Curve.

(iii) Product Cycle and Strategic Trade Theories.

(iv) Trade as an engine of growth and theories of under development in an

open economy.

(b) Forms of Protection: Tariff and quota.

(c) Balance of Payments Adjustments: Alternative Approaches.

(i) Price versus income, income adjustments under fixed exchange rates.

(ii) Theories of Policy Mix.

(iii) Exchange rate adjustments under capital mobility.

(iv) Floating Rates and their Implications for Developing Countries: Currency

Boards.

(v) Trade Policy and Developing Countries.

(vi) BOP, adjustments and Policy Coordination in open economy macro-

model.

(vii) Speculative attacks.

(viii) Trade Blocks and Monetary Unions.

(ix) WTO: TRIMS, TRIPS, Domestic Measures, Different Rounds of WTO talks.

5. Growth and Development:

(a) (i) Theories of growth: Harrods model,


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(ii) Lewis model of development with surplus labour,

(iii) Balanced and Unbalanced growth,

(iv) Human Capital and Economic Growth.

(v) Research and Development and Economic Growth

(b) Process of Economic Development of Less developed countries: Myrdal

and Kuzments on

economic development and structural change: Role of Agriculture in

Economic Development of less

developed countries.

(c) Economic development and International Trade and Investment, Role of

Multinationals.

(d) Planning and Economic Development: changing role of Markets and

Planning, Private- Public

Partnership.

(e) Welfare indicators and measures of growth Human Development

Indices. The basic needs

approach.

(f) Development and Environmental Sustainability Renewable and Non

Renewable Resources,

Environmental Degradation, Intergenerational equity development.


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PAPER II

1. Indian Economy in Pre-Independence Era:

Land System and its changes, Commercialization of agriculture, Drain theory,

Laissez faire theory and

critique. Manufacture and Transport: Jute, Cotton, Railways, Money and

Credit.

2. Indian Economy after Independence:

A The Pre Liberalization Era:

(i) Contribution of Vakil, Gadgil and V.K.R.V. Rao.

(ii) Agriculture: Land Reforms and land tenure system, Green Revolution and

capital formation in

agriculture.

(iii) Industry Trends in composition and growth, Role of public and private

sector, Small scale and

cottage industries.

(iv) National and Per capita income: patterns, trends, aggregate and Sectoral

composition and changes

their in.

(v) Broad factors determining National Income and distribution, Measures of

poverty, Trends in

poverty and inequality. B The Post Liberalization Era:

(i) New Economic Reform and Agriculture: Agriculture and WTO, Food

processing, Subsidies,

Agricultural prices and public distribution system, Impact of public

expenditure on agricultural

growth.


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(ii) New Economic Policy and Industry: Strategy of industrialization,

Privatization, Disinvestments,

Role of foreign direct investment and multinationals.

(iii) New Economic Policy and Trade: Intellectual property rights: Implications

of TRIPS, TRIMS,

GATS

and new EXIM policy.

(iv) New Exchange Rate Regime: Partial and full convertibility, Capital

account convertibility.

(v) New Economic Policy and Public Finance: Fiscal Responsibility Act, Twelfth

Finance

Commission and Fiscal Federalism and Fiscal Consolidation.

(vi) New Economic Policy and Monetary system. Role of RBI under the new

regime.

(vii) Planning: From central Planning to indicative planning, Relation betweenplanning and markets

for growth and decentralized planning: 73rd and 74th Constitutional

amendments.

(viii)New Economic Policy and Employment: Employment and poverty, Rural

wages, Employment

Generation, Poverty alleviation schemes, New Rural, Employment GuaranteeScheme.


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determination of factor prices, Factor shares and adding up problems. Eulers

theorem, Pricing

of factors under imperfect competition, monopoly and bilateral monopoly.

Macro-distribution

theories of Ricardo, Marx, Kaldor, Kalecki.

5. Welfare Economics: Inter-personal comparison and aggregation problem,

Public goods and

externality, Divergence between social and private welfare, compensation

principle. Pareto

optimality. Social choice and other recent schools, including Coase and Sen

and Game theory.

PART B:

Quantitative Methods in Economics:

1. Mathematical Methods in Economics: Differentiation and Integration and

their application

in economics. Optimisation techniques, Sets, Matrices and their application

in economics.

Linear algebra and Linear programming in economics and Input-output model

of Leontief.

2. Statistical and Econometric Methods: Measures of central tendency and

dispersions,

Correlation and Regression. Time series. Index numbers. Sampling and

Survey methods.

Testing of hypothesis, simple non-parametric tests. Drawing of curves based

on various linear

and non-linear function. Least square methods and other multivariate

analysis (only concepts


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and interpretation of results). Analysis of Variance, Factor analysis, Principle

component analysis,

Discriminant analysis. Income distribution: Pareto law of Distribution,

lognormal distribution,

measurement of income inequality. Lorenze curve and Gini coefficient.

GENERAL ECONOMICS-II

1. Economic Thought: Mercantilism Physiocrats, Clasical, Marxist, Neo-

classical, Keynesian

and Monetarist schools of thought.

2. Concept of National Income and Social Accounting: Measurement of

National Income,

Inter relationship between three measures of national income in the

presence of the Government

sector and International transactions. Environmental considerations, Green

national income.

3. Theory of employment, Output, Inflation, Money and Finance: The

Classical theory of

Employment and Output and Neo classical approaches. Equilibrium, analysis

under classical

and neo classical analysis. Keynesian theory of Employment and output. Post

Keynesian

developments. The inflationary gap; Demand pull versus cost push inflation,

the Philips curve

and its policy implication. Classical theory on Money, Quantity theory of

Money. Friedmans

restatement of the quantity theory, the neutrality of money. The supply and

demand for loanable


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funds and equilibrium in financial markets, Keynes theory on demand for

money.

4. Financial and Capital Market: Finance and economic development,

financial markets, stock

market, gift market, banking and insurance. Equity markets, Role of Primary

and Secondary

markets and efficiency, Derivatives markets; Futures and options.

5. Economic Growth and Development: Concepts of Economic Growth and

Development

and their measurement: characteristics of less developed countries and

obstacles to their

development growth, poverty and income distribution. Theories of growth:

Classical Approach:

Adam Smith, Marx and Schumpeter Neo classical approach; Robinson,

Solow, Kaldor and

harrod Domar. Theories of Economic Development, rostow, Rosenstein-

Roden, Nurske,

Hirschman, Leibenstien and Arthur Lewis, Amin and Frank (Dependency

school) respective

role of the state and the market. Utilitarian and Welfariest approach to social

development and

A K Sens critique. Sens capability approach to economic development. The

Human Development

Index. Physical quality of Life Index and Human Povery Index.

6. International Economics: Gains from International Trade, Terms of Trade,

policy, international


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trade and economic development Theories of International Trade; Ricardo,

Haberler, HeckscherOhlin and Stopler-Samuelson Theory of Tariffs

Regional Trade Arrangements.

7. Balance of Payments: Disequilibrium in Balance of Payments, Mechanism

of Adjustments,

Foreign Trade Multiplier, Exchange Rates, Import and Exchange Controls and

Multiple Exchange

Rates.

8. Global Institutions: UN agencies dealing with economic aspects, World

Bank, IMF and

WTO, Multinational Corporations.

GENERAL ECONOMICS-III

1. Public Finance: Theories of taxation: Optimal taxes and tax reforms,

incidence of taxation;

Theories of public expenditure: objectives and effects of public expenditure,

public expenditure

policy and social cost benefit analysis, criteria of public investment decisions

social rate of

discount, shadow prices of investment, unskilled labour and foreign

exchange. Budgetary

deficits. Theory of public debt management.

2. Environmental Economics: Environmentally sustainable development,

Green GDP, UN

Methodology of Integrated Environmental and Economic Accounting.

Environmental Values: Users

and non-users values; option value. Valuation Methods: Stated and revealed

preference methods.


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Design of Environmental Policy Instruments: Pollution taxes and pollution

permits, collective action

and informal regulation by local communities. Theories of exhaustible and

renewable resources.

International environmental agreements. Climatic change problems. Kyoto

protocol, tradable permits

and carbon taxes.

3. Industrial Economics: Market structure, conduct and performance of firms,

product

differentiation and market concentration, monopolistic price theory and

oligopolistic

interdependence and pricing, entry preventing pricing, micro level

investment decisions and the

behavior of firms, research and development and innovation, market

structure and profitability,

public policy and development of firms.

4. State, Market and Planning: Planning in a developing economy. Planning

regulation and

market. Indicative Planning. Decentralised Planning.

INDIAN ECONOMICS

1. History of Development and Planning: Alternative Development Strategies goal of self

reliance based on import substitution and protection, the post 1991

globalisation strategies

based on stabilization and structural adjustment packages: fiscal reforms,

financial sector reforms

and trade reforms.


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2. Federal Finance: Constitutional provisions relating to fiscal and financial

powers of the

states, Finance Commissions and their formulae for sharing taxes, Financial

aspect of Sarkaria

Commission Report, Financial aspects of 73rd and 74th Constitutional

Amendments.

3. Poverty, Unemployment and Human Development: Estimates of inequality

and poverty

measures for India, appraisal of Government measures, Indias human

development record in

global perspective. Indias population policy and development.

4. Agriculture and Rural Development Strategies: Technologies and

institutions, land relations

and land reforms, rural credit, modern farm inputs and marketing price

policy and subsidies;

commercialization and diversification. Rural development programmes

including poverty alleviation

programmes, development of economic and social infrastructure and New

Rural Employment

Guarantee Scheme.

5. Indias experience with Urbanisation and Migration: Different types of

migratory flows

and their impact on the economies of their origin and destination, the

process of growth of urban

settlements; urban development strategies.

6. Industry: Strategy of Industrial development: Industrial Policy Reforms;

Reservation Policy


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relating to small scale industries. Competition policy, Sources of industrial

finances. Bank, share

market, insurace companies, pension funds, non-banking sources and foreign

direct investment,

role of foreign capital for direct investment and portfolio investment, Public

Sector reform,

privatization and disinvestments.

7. Labour: Employment, unemployment and under-employment, industrial

relations and labour

welfare strategies for employment generation Urban labour market and

informal sector

employment, Report of National Commission on Labour, Social issues relating

to labour e.g.

Child Labour, Bonded Labour, International Labour Standard and its impact.

8. Foreign Trade: Sailent features of Indias foreign trade, composition,

direction and organization

of trade, recent changes in trade policy, balance of payments, tariff policy,

exchange rate, India

and WTO requirements.

9. Money and Banking: Financial sector reforms, Organisation of Indias

money market,

changing roles of the Reserve Bank of India, commercial banks, development

finance institutions,

foreign banks and non-banking financial institutions, Indian capital market

and SEBI, Development

in Global Financial Market and its relationship with Indian Financial Sector.

10. Inflation: Definition, trends, estimates, consequences and remedies(control): Wholesale


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Price Index, Consumer Price Index: components and trends.

11. Budgeting and Fiscal Policy: Tax, expenditure, budgetary deficits, pension

and fiscal

reforms, Public debt management and reforms, Fiscal Responsibility and

Budget Management

(FRBM) Act, Black money and Parallel economy in India definition, estimates,

genesis,

consequences and remedies.

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economics ias and ies mains syllabus