M.A.(Applied Economics)

New Syllabus for All Semester

Academic Year 2013-2014

Under Credit System.

REVISED SYLLABUS

OF MASTER OF ARTS IN APPLIED ECONOMICS

(M.A. APPLIED ECONOMICS)

SCHOOL OF SOCIAL SCIENCES, S.R.T.M. UNIVERSITY,

NANDED- 431 606

1) TITLE : APPLIED ECONOMICS (Under the Faculty of Social Sciences)

2) YEAR OF IMPLEMENTATION: Revised Syllabus will be implemented from June, 2013 onwards. 3) PREAMBLE: In the era of 21st century, many changes have taken place in the direction of education. A subject like Applied Economics is having plenty of scope in this globalized world. Considering this we are offering M.A. in Applied Economics under School of Social Sciences, S.R.T.M.U. Nanded. Syllabus of M.A. Applied Economics has been revised in view to understand recent trends in economics and to improve a practical knowledge in economics. 4) GENERAL OBJECTIVES OF THE COURSE:

(i) To build the technical and practical knowledge of the students. (ii) To Impart high quality of education to the students, (iii) To prepare the students for variety of challenging careers through innovation in teaching and

research. 5) DURATION:

• The course shall be a full time course. • The duration of course shall be of Two years /Four Semesters.

6) ELIGIBILITY OF ADMISSION Any graduate who studied economics as an optional or compulsory subject during his graduation. (B.A., B.Com, B.B.A., B.B.M. etc.) 7) INTAKE CAPACITY:

M.A. 1st YEAR – 30 Students M.A. 2nd YEAR – 30 Students

REVISED SYLLABUS

FOR M. A. APPLED ECONOMICS.

M.A. Ist Part ( I & III Sem)

Code Semester – I Code Semester – II (I) Compulsory Papers: (I) Compulsory Papers:

I Micro Economics-I V Micro Economics- II II Macro Economics-I VI Macro Economics-II III Quantitative Technique for Economic

Analysis VII Mathematics for Economics

(II) Elective Papers (Optional): (Choose any one)

(II) Elective Papers (Optional) : (Choose any one)

IV-A Social Research and Computer Application

VIII-A Economics of Development and Planning

IV-B Indian Economy VIII-B Indian Economy

M. A. Part-II (Semester-III & IV)

Code Semester – III Code Semester – IV

(I) Compulsory Papers: (I) Compulsory Papers: IX Public Economics-I XIII Public Economics-II

X Banking in India XIV Project Work

XI International Economics-I XV International Economics-II

(II) Elective Papers (Optional): (Choose any one)

(II) Elective Papers(Optional) : (Choose any one)

XII-A Econometrics-I XVI-A Econometrics-II

XII-B Financial Institutions & Markets XVI-B Financial Institutions & Markets

Note:

a) Paper I,II,III (semester I), V, VI, VII(Semester II) IX, X, XI (Semester III) and XIII, XIV, XV (Semester IV) are Compulsory.

b) Student can select any one elective paper from elective category

c) Each paper will be of 100 marks. (Internal examination 20 marks and Semester end examination 80 marks)

d) The syllabi of each paper per semester is spread over 48 lectures (One hour per lecture)

e) There will be Dissertation (project Work) of 100 Marks for IV

Semester- I

I : Micro Economics-I

Unit 1: Nature and Scope of Economic Theory

Scarcity and Choice, Scope of Economic Theory and Basic Economic Problems, Allocation of Resources, Choice of production method, distribution of income and Growth.

Unit 2: Methodology of Economics:

Nature of Scientific Theory. Derivation of Economic Theories and Nature of Economic Reasoning. Deductive and Indective method, merits and demerits. Role of Assumptions in Economics.

Unit 3: Basic Mathematical Concepts and Optimisation Techniques:

Functions: Linear and Power Functions, Slopes of Functions, Optimisation Techniques: Differential calculus, Demand and supply- elasticity types:measurement and numerical problems, Demand forecasting and estimation.

Unit 4: Cardinal Utility Analysis:

Assumptions of Cardinal Utility analysis, Law of Diminishing Marginal Utility, Consumers Equilibrium: Principal of Equi-Marginal Utility.

Unit 5: Indifference Curve Analysis:

Assumptions of Indifference Curve Analysis, Indifference curve and map, MRS, Budget line and Consumers equilibrium, corner solution.

Unit 6: Income, price and substitution effect:

Hicksion and Slutsky, Decomposing price effect into income and substitution effect, price-demand relationship: inferior and Giffen goods, Three demand theorems based on ordinal analysis.

Unit 7: Consumers Behaviour in Uncertainty-

The St. Petersburg paradox and Bernoulli hypothesis, Neumann –morgenstern method of constructing utility, Risk averter vs risk lover, risk lover and gambling, risk aversion and insurance, Friedman-savage hypothesis, Markowitz hypothesis.

Unit 8: Theory of Production

Production function - homogeneous production function , Cobb-Douglas production function, CES production function, surrogate production function, fixed coefficient production function, technical progress and production function, LVP, RTS, Iso-Quant, MRTS, Iso-cost line, Optimum factor combination and output, expansion path, price effect: separation of output effect and substitution effect , Multi product firm: choice of products, Iso-revenue lines, optimum combination of two products.

Readings:

Verian H. (2000) Microeconomic Analysis, W.W Norton New Yark. Stigler G. (1996) Theory of Price, 4th Edition, Prentice Hall of India, New Delhi. Samuelson, P.A. and W.O. Nordhaus (1998), Economics, 16th Edition, Tata McGraw Hill, New

Delhi Koutsoyiannis, A. (1979), Modern Microeconomics, 2nd edition Macmillan Press, London. Sen A. (1999) Microeconomics: Theory and Application, Oxford University Press, New Delhi. Michale Perkin (1996) Economics, 3rd Edition, Addison Westey Publishing company, Inc. USA. Ahuja H.L. (2003) Advanced Economic theory : Microeconomic Analysis, 13th Edition, S.Chand

and Co. Ltd. New Delhi. Chaturvedi, Gupta and Pal (2002) Business Economics: Text and Cases Galgotia Publishing

Company, New Delhi Layard, P. R. G. and A. W. Alters (1978), Microeconomic Theory, McGraw Hill, New York.

Baumol, W. J. (1982), Economic Theory and Operations analysis, Prentice Hall of India, New Delhi.

Hirshleifer, J. and A. Glazer (1997), rice Theory and Applications, Prentice Hall of India, New Delhi.

Green, H. A. G. (1971), Consumer Theory, Penguin, Harmondsworth.

Henderson, J. M. and R. E. Quant (1980), Microeconomic Theory: A Mathematical Approach, McGraw Hill, New Delhi.

Da Costa, G. C. (1980), Production, Prices and Distribution, Tata McGraw Hill, New Delhi.

Graff, J. De V. (1957), Theoretical Welfare Economics, Cambridge University Press, Cambridge.

Mishan, E. J. (1969), Welfare Economics: An Assessment, North Holland, Amsterdam.

Green, H. and V. Walsh (1975), Classical and Neo-classical Theories of General Equilibrium, Oxford University Press, London.

Hansen, B. (1970), A Survey of General Equilibrium Systems, McGraw Hill, New York.

Semester- I

II : Macro Economics-I

Unit 1:Meaning & Measurement of National Income

Meaning & definition of National Income, Circular Flow of national Income-Two sector economy; Three sector economy; four sector economy, Measurement of National Income--- Value Added Method, Expenditure Method, Income method, Difficulties in the Measurement of National Income.

Unit 2:Concept & Determination of National Income

Concept of National Income: GNP, GDP, NDP, NNP, Personal Income and Disposable Income, Nominal GNP and Real GNP. Determination of Equilibrium level of national Income-Two sector model , Three Sector model & Four Sector model .

Unit 3: Consumption Function

Meaning of consumption function , Concept of consumption function – Average propensity to consume(APC) , Marginal propensity to consume (MPC),Saving Function - Average propensity to Save (APS) , Marginal propensity to Save (MPS), Linear & Non-Linear Consumption Function, Determinants of Propensity to Consume : Subjective Factors and Objectives Factors, Keynes psychological law of consumption.

Unit 4 : Post – Keynesian Theories of Consumption

Relative Income Theory of Consumption: Demonstration Effect and Ratchet Effect, Life cycles theory of consumption, permanent income theory of consumption,

Unit 5: Investment Demand

Meaning of Investment , Types of Investment , Determinants of Investment – Marginal efficiency of capital , Rate of interest. , Theory of multiplier , Accelerator theory of Investment, Neo classical theory of Investment, Capital Stock Adjustment .

Unit 6: IS-LM Model

The Goods Market - Deviation of the IS curve , Money Market - Deviation of the LM curve, the Simultaneous equilibrium of the Goods market and Money market or , Joint Equilibrium of Income and Interest Rate--. Hicks-Hansen Synthesis: IS-LM Curve Model. Explaining Role of Government Fiscal & monetary policies.

Unit 7: Macro economics in an open economy

Macro economic Equilibrium in the Open Economy —The Mundell-Fleming Model.

Unit 8: National Income & Foreign Trade multiplier

The import function , foreign Trade Multiplier in an Open economy—Graphic Representation of foreign trade Multiplier, How the foreign Trade Multiplier works, The Foreign trade Multiplier with both Export & Import—Increase in Import the reverse working of foreign Multiplier

Readings:

Ackley, G. (1978), Macroeconomics: Theory and Policy, Macmillan, New York.

Blackhouse, R. and A. Salansi (Eds.) (2000), Macroeconomics and the Real World (2 Vols.), Oxford University Press, London.

Branson, W. a. (1989), Macroeconomic Theory and Policy, (3rd Edition), Harper and Row, New York.

Dornbusch, R. and F. Stanley (1997), Macroeconomics, McGraw Hill, Inc., New York.

Hall, R. E. and J. B. Taylor (1986), Macroeconomics, W. W. Norton, New York.

Heijdra, B. J. and V. Frederick (2001), Foundations of Modern Macroeconomics, Oxford University Press, New Delhi.

Shapiro, E. (1996), Macroeconomic Analysis, Galgotia Publications, New Delhi.

Edey, M. and A. T. Peacock (1967), National Income and Social Accounts, Hutchinson University Library, London.

Rao, V. K. R. V. (1983), India's National Income: 1950 to 1980, Sage Publications, New Delhi.

Duesenberry, J. S. (1949), Income, Saving and the Theory of consumer Behaviour, Harvard University Press, Harvard.

Gordon, R. and S. G. Harris (1998), Macroeconomics, Addison Wesley.

Culbertson, J. M. (1968), Macroeconomic Theory and Stabilization Policy, McGraw Hill, Kogenkosh, Tokyo.

Semester -I III) Quantitative Technique for Economic Analysis

Unit 1. Measures of Central value : Introduction; Merit & Demerit, Meaning of Arithmetic Mean- Simple and Weighted, Median, Quartiles, Deciles, Percentiles, Mode, Geometic Mean, Harmonic Mean, Relationship Between different Averages, Limitations of Averages. Unit 2.Measures of Dispersions: Introduction; Defination, Merit & Demerit, Methods of Measuing Dispersion-Range, Quartile Deviation and its Coefficient, Mean Deviation and its Coefficient, Standard Deviation and its Coefficent., Relationship between Measures of Dispersion. Unit 3.Skewness, Moments and Kurtosis: Measures of Skewness, Moments, Kurtosis, Difference between dispersion and skewness. Unit 4.Correlation Analysis: Simple Correlation Analysis, Introduction;-Meaning and Defination; Degree of Correlationship; Karl pearson’s Coefficient; Rank Correlation Coefficent; Partial and Multiple Correlation. Unit 5.Regression Analysis: Simple Regression Analysis; Introduction- Meaning and Defination; Application of Regression Analysis, Difference Between Correlation and Regression, Partial and Multiple Regression Analysis. Unit 6. Hypothesis Testing: procedure of testing a Hypothesis, Test of Significance: Large samples, Small samples,Chi-square test. Unit 7.Analysis of Variance: Introduction , Meaning, Application (Uses) of Analysis of Variance, Analysis of variance in One-way & Two-way classification. Unit 8.Probability and Theoritical Frequency: Classical and Empirical definitations of probability, laws of addition and multiplication theorem, Properties of binomial, poisson and Normal distribution.

Readings:

1) Chou, Ya-Lun, Statistical Analysis, Rinehart & Winston, New York. 2) Croxton & Cowden, Applied general Statistics, Prentice-Hall, London and India. 3) Demming, W. Edward, Theory of Sampling ? John Willey & Sons, New York 4) Elhance, D. N. Fundamentals of Statistics, kitab mahal, Allahabad, 1967 5) Feller, W., An Introduction to Probability theory and its applications, John Wiley 6) Gupta, S.C. An Introduction to Statistic, Sultan Chand & co., New Delhi. 7) Gupta, S. P. fundamental of Statistic, H.P.H., Bombay, 1992. 8) Mounsey , J., Introduction to statistical calculations, English Universities Press, London. 9) Parzen, E ., Modern Probability Theory and its applications, John Willey.

Semester- I

IV- A ) Social Research and Computers Applications

Unit 1: Social Research. Meaning, concepts, definitions, purpose, Goals and process of Research.

Unit 2: Problem formulation. Problem formulation, S Research Questions and Review of Literature.

Unit: 3: Hypotheses. Meaning, definitions, attributes of a sound hypothesis, role of hypothesis in research.

Unit 4: Research Designs. Elements of research design, Selection of Research Designs, Types of research design Exploratory Study, Descriptive Study, Explanatory Study

Unit 5: Sampling Methods. Meaning, types Probability and Non Probability Determination of size of sample.

Unit 6: Data Collection. Sources of data: Primary and Secondary, methods and Instruments of Data collection Observation methods, Interviews, group interviews, telephone interviews, interview schedule and questionnaires, life histories, case studies.

Unit 7: Data Analysis. Data processing refers to Editing, Coding, Recoding, Computing of the scores, and Preparation of master charts, tabulation and interpretation of data.

Unit 8: Computers Applications for Social Research. Introduction to MS Office, Power Point, Digital Library, WINDOWS, EXCEL operating commands, Statistical Package for social sciences (SPSS)

Readings:

1. Goode, W.J. and Hatt,

P.K. 1962

Methods in Social Research New York, McGraw Hill.

2. Gupta, S.P. 1984 Statistical Methods, New Delhi, Sultanchand & Sons.

3. McMillan, W 1952 Statistical methods for Social workers, Chicago,

University of Chicago press.

4. Moser, C.A. and

Kalton, G. 1971

Survey Methods in Social Investigation, London, ELBS

and Heinemann Educational Books.

5. Polansky, N.A. (Ed)

1960

Social Work Research, Chicago University of Chicago.

6. Raj, Hans 1987 Theory and Practice in Social Research, Delhi Surjet

Publications.

7. Ramachandran, P 1990 Issues in social work Research in India, Bombay, Tata

Institute of Social Sciences.

8. Shah, P.V. 1972 Research Designs and Strategies, New York, Agricultural

Development.

9. Wilkinson, T.S. and

Bhandarkar, P.L. 1984

Methodology and Techniques of Social Research,

Bombay, Himalaya publishing House.

10. Young, Pauline V 1982 Scientific Social Surveys and Research, New Delhi,

Prentice – Hall of India Pvt. Ltd.

Semester- I

IV- B ) Indian Economy –I

Unit 1: Introduction to Indian Economy

Demographic Features- size, growth rate, sex ratio, occupational distribution of population, problem of poverty and Unemployment.

Unit 2: Human Development on India

Concept of Human Development, HDI of various states in India, National Human Development Report (2001), Progress of HDI in India, Policy direction.

Unit 3: National Income of India

National Income Estimates in India, CSO revised national Income Series, Trends in National Income Growth and Structure, Limitations of Estimation in India.

Unit 4: Role of Agriculture in Indian Economy

Trends in Agricultural production, food security, agricultural finance and agricultural marketing

Unit 5: Industrial and Service Sector

Trends in Industrial production, SSI-role, performance and problems, problem of large scale industries, Industrial policy-2002.Growth and contribution of service sector in India, share of service sub sector in GDP, Is services led growth sustainable?

Unit 6: Natural Resources, Economic Development and Environment

Natural Resources in the process of Economic Development, Land Resources, Forest Resources, Water Resources, Fisheries, Mineral etc.

Unit 7: Infrastructural Development in India

Role of infrastructure in economic development. Economic infrastructure- Transport and communication, irrigation and energy. Social infrastructure –education, health and environment.

Unit 8: Indian Planning

Economic planning-Meaning and Objectives. Achievements and failures of India’s five year plans.

Readings:

Datta, Ruddar and Sundaram, KPM (2011) Indian Economy, S. Chand & Co. New Delhi. Ahluwalia I.J. and IMD Little 1999. India’s Economic Reforms and Development. Dhingra Ishwar C (2006); Indian Economy, Sultan Chand & Sins, New Delhi. Government of India, Economic Survey (All Issues)

Semester- II

V : Micro Economics-II

Unit 1: Markets:

Meaning of Market, Classification of Market Structure, Market Classification and Cross Elasticity of Demand. Total, Average and Marginal Revenue and their relationship. Deriving AR and MR curves from TR.

Unit 2: Equilibrium of Firm and Industry Under Perfect Competition:

Conditions of Perfect Competition. Demand curve of a product facing perfect competition, Short run equilibrium of the Perfectly Competitive firm, Shutting down in short run. Long Run Equilibrium of the Perfectly competitive firm.

Unit 3: Price and Output Determination in Monopoly

Monopoly : Its Meaning and Conditions, Causes of Monopoly, The nature of Demand and Marginal Revenue Curve under Monopoly. Relation between MR and Price, MR, Price and Elasticity of demand under Monopoly. Price and output equilibrium under Monopoly. Long-run equilibrium under monopoly.

Unit 4: Price and Output determination under Monopolistic Competition:

Imperfect Competition and Oligopoly. The monopolistic competition, and Product differentiation, Important features of Monopolistic competition, Price and Output Equilibrium under Monopolistic Competition. Longrun Equilibrium and excess capacity under Monopolistic Competition.

Unit 5: Price and Output Determination under Oligopoly:

Characteristics of Oligopoly, Interdependence, Importance of Advertising and Selling Cost, Causes of Oligopoly. Approaches to determination of price and output under Oligopoly.

Unit 6: Managerial and Behavioural Theories of Firm

Baumol’s sales maximization model, Marris managerial model of the firm, Williamson’s managerial theory of the firm, Williamson’s formal utility maximization model, Basics of the theory of limit pricing, Bain’s model, Sylos-Labini model of limit pricing , Modigliani’s model of limit pricing, Bhagwati’s extension of Modigliani’s model, critical evaluation of limit pricing.

Unit 7: Factor Pricing

Marginal productivity theory, Product exhaustion theorem (Euler’s theorem), Relative and absolute share of labour and capital, Technological progress and factor shares in income, Theories of rent, wages, interest & profit determination.

Unit 8: Welfare Economics

Partial equilibrium & general equilibrium analysis, Edgeworth box, General equilibrium of exchange and consumption: A pure exchange economy model, general equilibrium of production, meaning of welfare economics, Individual & social welfare, Three concept of social welfare, Value judgments in welfare economics, Pareto criterion of social welfare. Marginal conditions of pareto optimum, critiques on pareto. New welfare economics – Kaldor –Hicks welfare, Scitovsky paradox, critique of the compensation principle.

Readings:

Verian H. (2000) Microeconomic Analysis, W.W Norton New Yark. Stigler G. (1996) Theory of Price, 4th Edition, Prentice Hall of India, New Delhi. Samuelson, P.A. and W.O. Nordhaus (1998), Economics, 16th Edition, Tata McGraw Hill, New

Delhi Koutsoyiannis, A. (1979), Modern Microeconomics, 2nd edition Macmillan Press, London. Sen A. (1999) Microeconomics: Theory and Application, Oxford University Press, New Delhi. Michale Perkin (1996) Economics, 3rd Edition, Addison Westey Publishing company, Inc. USA. Ahuja H.L. (2003) Advanced Economic theory : Microeconomic Analysis, 13th Edition, S.Chand

and Co. Ltd. New Delhi. Chaturvedi, Gupta and Pal (2002) Business Economics: Text and Cases Galgotia Publishing

Company, New Delhi

Semester- II

VI : Macro Economics-I

Unit 1: Supply of Money

Meaning & definition of supply of Money , Four measures of Money Supply ,RBI new measures of money supply, Determinants of Money supply. Derivation of Money Multiplier

Unit 2: Money Multiplier

High powered money, relation between High Powered Money & Money supply , Money multiplier ,Derivation of Money multiplier , Factors affecting on money supply – Monetary Factors ,social Factors , Financial Factors.Budget deficit & money supply.

Unit 3: Demand for Money

Classical Approach of the Demand for Money, Fishers Transactions Approach to Demand for Money, Cambridge Cash Balance Theory, Keynes Motives for Liquidity preference—Transactions, Precautionary, Speculative

Unit 4: Post Keynesian approach of Demand for Money

Three approaches of demand for money - Classical , Keynesian , Post Keynesian approaches - Tobin’s Portfolio Approach, Baumol’s Inventory Approach, Friedman’s theory of Demand for Money.

Unit5 : Inflation –Nature & Causes

Meaning of inflation , Causes of inflation , Types of inflation - Demand pull inflation ,Cost Push inflation. Phillips curve analysis.

Unit 6 : Analysis of Business cycle

Phases of Business Cycles , features of Business Cycles, Samuelsons Model of Business Cycles , Hicks theory of Trade Cycles , Kaldor Models of Business Cycles, and Goodwin’s Models of Business Cycles.

Unit 7 : Output - price determination.

Aggregate demand curve , Aggregate Supply curve , Equilibrium of Aggregate demand curve & Aggregate Supply curve analysis.

Unit 8 : Government & The Macroeconomics.

Financing of Government expenditure : Taxation , Classification of Taxes , Characteristics of a good tax system , problem of equity in taxation ,Benefit theory , Ability to pay theory, Direct tax Vs Indirect tax ,Types of Budget

Readings:

Ackley, G. (1978), Macroeconomics: Theory and Policy, Macmillan, New York.

Blackhouse, R. and A. Salansi (Eds.) (2000), Macroeconomics and the Real World (2 Vols.), Oxford University Press, London.

Branson, W. a. (1989), Macroeconomic Theory and Policy, (3rd Edition), Harper and Row, New York.

Dornbusch, R. and F. Stanley (1997), Macroeconomics, McGraw Hill, Inc., New York.

Hall, R. E. and J. B. Taylor (1986), Macroeconomics, W. W. Norton, New York.

Heijdra, B. J. and V. Frederick (2001), Foundations of Modern Macroeconomics, Oxford University Press, New Delhi.

Shapiro, E. (1996), Macroeconomic Analysis, Galgotia Publications, New Delhi.

Edey, M. and A. T. Peacock (1967), National Income and Social Accounts, Hutchinson University Library, London.

Rao, V. K. R. V. (1983), India's National Income: 1950 to 1980, Sage Publications, New Delhi.

Duesenberry, J. S. (1949), Income, Saving and the Theory of consumer Behaviour, Harvard University Press, Harvard.

Gordon, R. and S. G. Harris (1998), Macroeconomics, Addison Wesley.

Culbertson, J. M. (1968), Macroeconomic Theory and Stabilization Policy, McGraw Hill, Kogenkosh, Tokyo.

Mankiw, N. G. and D. Romer (Eds.) (1991), New Keynesian Economics, (2 Vols.), MIT Press, Cambridge.

Semester -II VII ) Mathematics for Economics Unit No.1 Introduction : Nature and scope of Mathematical Economics, Role of Mathematics in Economic Theory, Mathematical Economics Vs Literary Economics, Mathematical Economics Vs Econometircs. Unit No.2 Elementary Algebra : Exponents or Theory of Indices, The Real Number System, Constant, Variable, Functions and their Graphical Representation, Equations, Limt, Continuity of a Function. Unit No.3 Differential Calculus: Meaning, Rules of Differentiation, Partial & Total Differentiation, Maxima and Minima. Unit No.4 Theory of Consumer Behaviour: Cardinal Utility Approach, Ordinal Utility approach, Maximisation of Utility, Demand, Elasticity of Demand. Unit No. 5 Theory of Cost and Revenue: Cost Functions and Curves, Revenue Functions and Curves. Unit No. 6 Integral Calculus : Meaning, Rules of Integration, Interest Rate,Consumer’s Surplus, Producter’s Surplus. Unit No. 7 Matrices: Meaning, Type of Matrics, Determinants, Minor, Cofactor, Adjoint of the Matrix, Inverse of a square Matrix, Solving a system of Linear Equations through Cramer’s Rule, Input-output analysis.

Unit No. 8 Linear programming—Basic concept; formulation of a linear programming problem—its structure and variables; nature of feasible, basic and optimal solution; solution of linear programming through graphical and simplex method.

Readings :

1) Allen, R.G.D. (1976), Mathematical Economics, Macmillan , London. 2) Arrow, K.J. and M. Intrilligater (1982), Handbook of Mathematical Economics, volumes

I, II, III, North holland, Amsterdam 3) Henderson J.M. and r. E. Quandt (1980), microeconomic theory; A Mathematical

Approach, Mcgraw Hill, New Delhi.

4) Chung, J, W. (1993), utility and production: Theory and Applications, Basil Blackwell, London

5) Chiang a. C. (1986), Fundamental method of Mathematical Economics, Mc-Graw Hill, new York

6) H adley, G. Linear Programming, Addison Weslay Publishing Co, Massachusetts 7) Kuhn harrold W, 1997, classics in Game theory, Princeton University press, princetion. 8) Nash, J. F. (1996) Essay on game theory, Cheltenham, U.K.

M.A. Applied Economics

Semester- II

IV-A : Economics of Development and Planning-I

Semester I: 4 credits

This is a one-semester course taught over 48 one-hour sessions. The course is divided into 4 Units of 12 sessions each. The method of instruction is English.

Unit 1: Introduction to Development

Development and Underdevelopment, Meaning of Growth & Development , Distinction between growth and development , Determinants of Development, Sustainable development.

Unit 2: Development Measurement

Indices of Development – National Income, Per Capita Income, Basic Needs Approach, PQLI, Human Development Index, Gender Development Index, Human Poverty Index .

Topic 3 : Models of Economic Growth - 1

Growth Models - Harrod Domar Model, Model of Technical Change- Hicks and Harrod’s views on Neutrality.

Topic 4 : Models of Economic Growth – II

Joan Robinson’s Model of Economic growth, Kaldor Model of Growth, R.M. Solow Model,

Unit 5: Theories of Development- I

Classical theory- Adam Smith, Karl Marx and Schumpeter theory, Rostow’s stages of growth,

Unit 6: Theories of Development- II

Nelson’s low level equilibrium trap, Mydral theory of backwash effect. Rosenstein Roden theory, Regnar Nurkse Model.

Unit 7: Theories of Development- III

Fei-Ranis Model, Big push theory, Lewis theory of unlimited labour supply, Similarity and difference between balanced and unbalance growth.

Topic 8: Development of Planning in India

Planning-Meaning and types, Physical and financial planning, Structural and functional planning, Centralized and decentralized planning, Socialistic and capitalistic planning, Direction and Inducement Planning, Flexible and Rigid Planning, Democratic and Totalitarian Planning, Permanent and Emergency Planning, Regional, National and International Planning, Comprehensive and partial Planning , Planning in India.

Readings:

Behrman, S. and T.N. Srinivasan (1995), Handbook of Development Economics, Vol. 3, Elsevier, Amsterdam.

Mishra Puri, Economics of development and planning, Himalaya publication Brown, M. (1966), On the Theory and Measurement of Technical Change, Cambridge University

Press, Cambridge, Mass. Chenery, H.B. et. al. (Eds.) (1974), Redistribution with Growth, Oxford University Press, Oxford. Adelman, I. (1961), Theories of Economic Growth and Development, Stanford University Press,

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

2, Elsevier, Amsterdam. Dasgupta, P. (1993), An Enquiry into Well-being and Destitution, Clarendon Press, Oxford. Gillis, M., D.H. Perkins, M. Romer and D.R. Snodgrass (1992), Economics of Development,3rd

Edition), W.W. Norton, New York. Kindleberger, C.P. (1977), Economic Development, (3rd Edition), McGraw Hill, New York.

Semester- II

VIII- B ) Indian Economy –II

Unit 1: Economic Reforms

1st and 2nd generation economic reforms, Economic Policy of 1991-LPG, The Impact of New Economic Policy on various Sectors. Disinvestment-concept, types and Problems.

Unit 2: Foreign Capital Foreign Aid and Economic Development.

Need for Foreign Capital Forms of Foreign Capital, Governament Policy towards Foreign Capital. Impact of Foreign Aid in India’s Economic Development.

Unit 3: Parallel Economy in India

Parallel Economy and Objectives of Planning, Estimates of Black Income in India, Factors responsible for Generation of Black Money, Corruption in India, Policy to control parallel economy.

Unit 4: Banking Sector in India

Banking Sector Reforms, Money and Capital Market, NPA of Commercial Banks, Non-Banking Financial Institutions, RBI- Recent Monetary Policy. SEBI and Capital Market.

Unit 5: GATT, WTO and India’s Foreign Trade

8th Round of GATT Uruguay Round of Final Act and Its Implications for India, Impact of WTO on various aspects of Indian Economy.

Unit 6: Currency System in India

Indian Currency System Today, Sources of Broad Money, Factors affecting money supply, India’s Foreign Exchange reserve, FEMA.

Unit 7: RBI and Monetary Management

Functions of RBI, Monetary policy of RBI, working of the Indian Monetary system Chakravarti Committee Report.

Unit 8: Federal Finance

Center-state financial relations, 13th finance commission and fiscal sector Reforms in India

Readings:

Datta, Ruddar and Sundaram, KPM (2011) Indian Economy, S. Chand & Co. New Delhi. Ahluwalia I.J. and IMD Little 1999. India’s Economic Reforms and Development. Dhingra Ishwar C (2006); Indian Economy, Sultan Chand & Sins, New Delhi. Government of India, Economic Survey (All Issues)

M.A. Applied Economics

Semester- III

IX : Public Economics-I

Topic 1: Introduction to public Finance:

Meaning of public finance , Scope & importance of public finance , Role of government in economic activity- allocation, distribution and stabilization functions, The principle of maximum social advantage (Musgrave’s views) The principle of opportunity cost in public finance,

Topic 2 : Theory of Public & Private goods:

public and private sector, public goods – graphically presentation of public good Characteristics of public good ,.Private Goods - graphically presentation of private good, Characteristics of private good and merit Goods- Characteristics of merit goods , Externalities-Meaning, externalities in the form of external benefits and external costs.

Topic 3: Public Expenditure :

Scope of Public Expenditure, private & public Expenditure comparison , Structure & Objectives of public expenditure , growth of public expenditure , Principles, Canons of public expenditure ,Classification of public expenditure

Topic 4 : Theories of Public Expenditure :

Wagner’s views on public expenditure , Wiseman-Peacock hypothesis , pure theory of public expenditure , Effect of public expenditure – on production , Distribution , stability , employment , & economics development.

Topic 5 : Public Revenue :

Meaning of Public Revenue , Sources of Public Revenue , Classification of Public Revenue –

Topic 6: Introduction to Taxation :

Defination of tax ,canons of taxation –Adam smith’s , effect of taxation – production , Distribution , employment , inflation & depression.

Topic 7: principles of Taxation

The principle of equity, Cost of service theory, Benefit principle, The Bowen and Lindahl models , Ability to pay theory- Subjective approach, Forms of equal sacrifice principle, limitations of subjective approach, Objective approach of Ability to pay theory.

Topic 8: Shifting and Incidence of Taxes

Difference between Impact and Incidences, Concentration theory, Diffusion theory, Market theory of incidence, Taxable capacity-Meaning and types, factors determining, taxable capacity, Causes of low level of taxation in India

Readings:

1. Richard A. Musgrave (1989), Public Finance in Theory and Practice McGraw Hill

Book Company, New York.

2. Dr.Tyagi B.P., Public Finance, Jai Prakash Nath Pub.Meerat (UP).

3. Buchaman J.M. (1970), The Public Finances, Richard D.Irwin, Homewood.

4. Jha H. (1998), Modern Public Economics, Routledge, London.

5. Singh S.K. (1986) Public Finance in Developed and Developing Countries,

S.Chand and Company Ltd, New Delhi.

6. Public Finance, Bagchi

7. Public Finance, R.K. Lekhi, Kalyani Publication, New Delhi

8. Tripathy R.N. Public Finance in Underdeveloped Countries.

9. Ruddar Datt and K.P.M. Sundharam (2006), Indian Economy, S.C.Chand and

Company Ltd, New Delhi.

Semester –III

X- Banking in India

Unit 1. Basics of Banking:

Origin of banks, Meaning , Definition, and features of Banks, Types of banks, The History of Indian Banking Industry.

Unit 2. Central Bank-Reserve Bank of India:

The Indian experience of RBI, Functions of RBI, Credit Control by RBI- Quantitative credit control, Qualitative credit control.

Unit 3..Commericial Bank in India:

Meaning & Definition of Commercial Banks, Functions and Development of Commercial Banks in India, state bank of India.

Unit 4 Co-operative Banks in India

Central co-operative Banks (CCB), state co-operative banks (SCB), Land development banks, National bank for Agriculture & Rural development (NABARD).

Unit 5 Urban Co-operative Banks:

Urban co-operative Banks (UCBs), Importance, Functions, Progress.

Unit 6 Regional Rural Banks : Regional Rural Banks(RRB), Need, Function, Progress of RRBs, Critical evaluation of RRB.

Unit 7 Industrial development Bank:

IDBI( Industrial Development Bank of India) , IFCI( Industrial Finance Coopertion of India), ICICI( industrial Credit & Investment Co-operation in India, SIDBI(Small Industry Developemtn of India).

Unit 8 Banking Regulation Act

Introduction, objective of Banking regulation Act, Interpretation of Various Acts, Loans and Advances, Accounts and Audit, The Negotiable Instruments Act, 1881, Characteristics of a Negotiable instruments.

Readings: 1. Mithani.D.M., Gordon.E.; “Banking & Financial Systems”; Himalaya Publishing House;2003. 2.Reddy.P.N., Appannaiah.H.R.; “Theory & Practice of Banking”; Himalaya Publishing House;2003. 3.Sundaram & Varshney; “Banking, Theory Law and Practice”; Sultan chand & sons;2004 4. Vasant Desai; “Development Banking & Financial Intermediaries”; Himalaya Publishing House; 2001. 1. Functions and Working of the RBI: Reserve Bank of India Publications. 2. Financial Sector Reforms and India’s Economic Development: N.A.Majumdar 3. Central Banking and Economic Development: Vasant Desai 4. Monetary Economics: S.B. Gupta 5. Banking in India - S. Panandikar 6. Banking: S.N. Maheshwari 7. Report on Trends and Progress of Banking in India: Reserve Bank of India Publication. 8. Annual Reports of Banks 9. Indian banking system - Dr. Rita Swami 10. Indian Banking System - Dr. B.R. Sangle, Dr. G.T. Sangle, Dr. Kayande Patil and Prof. N.C. Pawar 11. Inidan Banking System - Prof. S.V. Joshi, Dr. C.P. Rodrigues and Prof. Azhar Khan

Semester- III

XI : International Economics-I

Unit 1: Introduction:

Importance of International Economics, International Trade and Nations Standard of Leaving, Subject Matter of International Economics, Current International Economic Problems, Purpose of International Economic Theories and Policies:

Unit 2: International Trade Theory:

The Mercantilists View on Trade, Adam Smith’s view based on Absolute advantage, David Ricardo’s view of Comparative Advantage, Comparative Advantage and Opportunity Cost.

Unit 3: Standard Theory of International Trade:

Introduction, The Production Frontier with Increasing Costs, Community Indifference Curves, Equilibrium in Isolation, The Basis for and the Gains from Trade with Increasing Cost, Trade based on Differences in Tastes.

Unit 4: Factor Endowment theory of Heckscher-Ohlin:

Assumptions, Factor Intensity, Factor Abundance, Factor Endowments and Heckscher-Ohlin Theory, Factor Price Equalization Theoram.

Unit 5: Other Views on Trade Theory:

Contract curve and explanation with Edgeworth Box diagram, Imperfect Competition and International Trade, Kravis and Linder theory of trade, The Rybczynski theorem

Unit 6: International Trade Policy:

Instruments of trade policy – Tariffs and quantitative trade restrictions; Tariffs and Non Tariff Barriers, Tariffs and export promotion – Tariff structure and effective rate of protection, Effect of tariff under partial and general equilibrium, Tariff uses and limitations, Concepts of terms of trade, Net Barter ToT, Gross Barter ToT, Equilibrium with offer curve, Immiserisation Hypothesis; Trade as an engine of economic growth.

Unit 7: Economic Integration:

Types of Economic Integration- Free trade area, Custom Union, Common Market, Economic Union, Free Economic Zones. Trade Creating and Trade Diverting Custom Union, Theory of Second Best, Introduction to -EFTA, NAFTA, SAFTA , Benelux, , SAARC, ASEAN, OPEC, APEC, G-8, G-20.

Unit 8: International Institutions:

GATT, IMF, IBRD, Asian Development Bank, UNCTAD- Their establishment, objectives, membership, functions, achievement and failures. -Dunkel Proposal ; WTO objectives, functions, conferences and issues- AOA, TRIP, TRIM, GATS.

Readings:

Soderstain and John Reed: International Economics, McGraw Hill Pub Krugman , International Economics Bhagwati J., International Trade, Cambridge University Press Dominick Salvatore, International Economics, John Wiley & Sons (Asia) Chacoliades: International trade, Theory and Policy, Mc.Graw Hills, 1978. Kindeberger C.B'.International Economics, Taraporewala and Sons, Bombay. Deepak Nayyar: Trade and Industrialisation, Oxford University Press, 1997. Jagadish Bhagavathi: Writings on International Economics (ed) Balasubramanyam,

OxfordUniversity Press.

Semester- III

XII- Econometrics-I

Unit1.Introduction of Econometrics:

Defination and scope of Econometrics, Model building in Econometrics, Models in econometrics,Goals of Econometrics, Methodology of Econometrics Limitations & types of econometric.

Unit.2 Simple & Multiple Linear Regression Model: Basic assumption of the linear stochastic regression model, ordinary Least Square Method, Statistical properties of least square estimators, Gauss Markov theorem, Goodness of Fit(R2) & adjusted R2.Hypothesis Testing (Standard Errors of regression Estimators).

Unit.3 Analysis of Variance and Regression : Meaning, Comparison between regression analysis and analysis of variance, tests based on ANOVA.

Unit.4Autocorrelation: Meaning, Detecting the presence of Autocorrelation,Causes of Autocorrelation, Co-efficent of autocorrelation, Effects of autocorrelation on OLS estimator, Detection of Autocorrelation.

Unit.5Heteroscedasticity: Meaning,Graphical presentation of the problem of heteroscedasticity, Reasons for the problem of heteroscedasticity, Consequences & test of Heteroscedasticity,

Unit. 6Multicollinearity: Meaning, Reasons for the problem of Multicollinearity, Consequences & Detection of Multicollinearity.

Unit.7Error in Variable: Nature of the problem, Causes of Error of Measurement, Consequences of the violation of the Assumption of Error of Measurement, Methods to overcome the problem, of error in variables.

Unit.8Econometric with SPSS: The use of SPSS in Econometric research, Working with spss and data entry, Correlation & Regression, Non-parametric tests, Durbin Watson test, Analysis of Variance.

Readings:

1) Gujarati, D. N. (1995), Basic Econometrics ( 2nd Endition), Mc Graw Hill, New Delhi. 2) Koutsoyiannis, a ( 1977), Theory of Econometrics ( 2nd edition ), The Macmillan Press Ltd.,

London. 3) Maddala, G. S. (1997), Econometrics, Mcgraw Hill, New York. 4) Intrilligator M. D. (1997), Econometric Methods, Techniques and Applications, Prentice Hall,

Englewood Cliffs, New Jersey. 5) Johnston, J. (1991) Econometric methods, Mcgraw Hill book Co. London. 6) Chow G.C. (1983), Econometrics, Mcgraw Hill, New York. 7) Franses P. H. (1998), Time Series Models for Business and Economic Forecasting, Cambridge

Press, New York. 8) Dhrymes, P. J. ( 1970), Econometrics---Statistical foundations and applications, Harper and

row Publishers, New York. 9) Anderson, T.W. (1958), Introduction to Multivariate Statistical Analysis, Chapman and hall,

London. 10) Krishna, K. L. (1997), Econometric Applications in India, Oxford University Press , New

Delhi. 11) Kennedy, P ( 1998) A Guide to Econometrics 4th edition, MIT press, New York. 12) Goldberger, A. S. (1998) , Introductory Econometrics, Harward University press, Cambridge,

Mass.

Semester -III XII-B ) Financial Institutions and markets

Unit 1 Introduction to Indian Financial system : Introduction, Role of functions of financial System, Components of Indian financial system-Financial Insitutions, Types, Banking Institutions- Organized Sector, Unorganised Sector, Non-Banking Institutions- Organized and Unorganized institutions.

Unit 2 Development banks: All india development banks- Industrial Finance Corporation of India (IFCI),Industrial development bank of India ( IDBI) , Industrial Credit and Investment Corporation of India ( ICICI), IIBIL, IRBI, SIDBI, IDFC, state financial cooperations, State Industrial developement Corporaions (SIDCs)

Unit 3 Non Banking Financial Institutions : Introduction, Types & classification of NBFI, l Nidis or Mutual benefit finance companies (MBFC), Chit Funds or Miscellaneous Non-banking Companies (MNBCs).

Unit 4. Fiinancial markets, Instruments & services: Financial Markets- functions, Types, Distinction between Capital Market and Money Market, Financial Instruments, Financial Services- Characteristics, Kinds of Financial Services, Fee based Advisory Services, Indian financial system-An Overview-Stage I,II,III.

Unit 5.Money Market: Introduction, Meaning and the Concept, Structure & components of Money Market,Characteristics of a Developed Money Market, Significance of Money Market, Money markets Instruments, Features of the Indian money market, players & the reforms in the Indian money market.

Unit 6.Capital Market-I : Introduction,objective, functions, structure of the Indian capital market, Components of capital market, capital market instruments- ownership securities, creditorship securities,Methods of Marketing Securities, Recent Developments in Primary Market.

Unit 7 Stock Exchang-I : Introduction, definitations , characteristics & functions of stock Exchange, Functionaries of Stock Exchanges, Types of Speculators, factors Influ encing prices on stock exchange,Recent developments in the secondary markets (196-97 onwards ).

Unit 8 Stock Exchange-II: Major Stock exchanges in India, weaknesses of stock exchanges in india, Methodology for calculating stock market index, Important Indices in india, venture capital.

Readings : 1) Bansal, L.K., Mutual Fund Management and Working, Deep and Deep Publication,

New Delhi, 1996. 2) Batra, G.S. , Management of Financial Institutions and Markets, Deep and Deep

Publications, Delhi, 1997. 3) Bhole, L. M., Financial Institutions and Markets: Structure, Growth and Innovation,

Tata McGraw Hill, New Delhi, 1998. 4) Dangwal, R.C..,R.C. Institutional Finance and Industrialisation, Deep and Deep

Publications, New Delhi, 1998. 5) Desai, Vasant., Development Banking in India : Issues and Options , Himalya

Publication House, 1998. 6) Edminister, R.O., Financial Institutions, Markets and Managements, Tata Mcgraw

Hill, New York, 1986. 7) Fensermaker, J. D., Readings in Financial Markets and Managements, Tata McGraw

Hill, New York, 1986. 8) Gupta, Shashi k and Sharma R.K., Financial Management- Theory and Practice,

Kalyani Publishers, new Delhi, 2003. 9) Houthakkar Hendrik, S. and Peter j. Willianmson., The Economics of Financial

Markets, Oxford University press, 1996.

Semester- IV XIII : Public Economics-II

Topic 1: Classification of Taxation Direct and Indirect Taxes- Merits and Demerits, Specific and ad-valorem duties, Progressive, Proportional, Regressive and Degressive Taxes, Single, Double and Multiple Taxation, Forms of Double Taxation, Problems in double taxation.

Topic 2: Taxation in India Suitable taxation system, Effects of taxation on production and distribution, Recent developments in taxation structure in India- Income tax on agriculture, VAT, reform committee- Dr. Raja J. Chelliah GST, Tax.

Topic 3: Fiscal Federalism Fiscal policy- meaning and objectives, Fiscal federalism in India , Resource transfer from union to states- criteria for transfer of resources, Centre-State financial relation in India, Tax structure under constitution

Topic 4: Local Finance Local finance- Municipalities - functions and sources of income, Munciple Corporation- functions and sources of income, Village Panchayats- functions and sources of income, Gram Panchayats- functions and sources of income, Panchayat Samiti and Zila Parishad- functions and sources of income.

Topic 5: Finance Commission in India , Finance Commission and Planning Commission- functions and review

Topic 6: Budget Meaning, Techniques of budgeting- classical and modern concept, Principles or Canons of budgeting, Qualities of good budget, Performance budgeting- meaning and need, Kinds of budget, Zero base budget

Topic 7: Budget in India Structure of budget in India, Different concepts of budget deficits, Deficit financing, Budgetary procedure in India , Review of latest budget in India.

Topic 8 : Public debt Public debt- Causes, Classification, Classical view of public debt; Compensatory aspect

of debt policy, Effects of Public Debt, Burden of public debt, Public borrowings and price level, Principles of public debt management and repayment, Public debt in India

Readings: 1. Richard A. Musgrave (1989), Public Finance in Theory and Practice McGraw Hill Book Company, New York. 2. Dr.Tyagi B.P., Public Finance, Jai Prakash Nath Pub.Meerat (UP). 3. Buchaman J.M. (1970), The Public Finances, Richard D.Irwin, Homewood. 4. Jha H. (1998), Modern Public Economics, Routledge, London. 5. Singh S.K. (1986) Public Finance in Developed and Developing Countries, S.Chand and Company Ltd, New Delhi. 6. Public Finance, Bagchi 7. Public Finance, R.K. Lekhi, Kalyani Publication, New Delhi

Semester- I

XV: International Economics-II

Unit 1: Balance of Payment:

Introduction, The balance of payments: book keeping, The current account, The capital account, BOP surpluses and deficits, The external wealth account.

Unit 2: The market for Foreign Exchange:

Introduction, Institutional aspects of foreign-exchange markets, simple model of spot exchange rate, Floating exchange rate and forward-exchange market.

Unit 3: Foreign Trade and National Income:

Determination of national income equilibrium in a small and open economy, The determination of national Income in Large and open economy.

Unit 4: Capital account:

A flow theory of capital movement, A stock theory of capital movement, A stock model with fixed exchange rate, a stock model of floating exchange rate, stock model versus flow model.

Unit 5: Determination of a Floating Exchange Rate

A fixed price model with perfectly immobile capital, A fixed price model with capital mobility. Absolute and relative PPP, Flexible price monetary model, sticky price model.

Unit 6: Macro Economic Policy and Floating Exchange Rate:

The policy environment and policy targets, The Mundell Fleming model, The Monetary approach.

Unit 7: Macroeconomic Policy and Fixed and Pegged Exchange Rate

Gold standard, Devaluation elasticities approach, the absorption approach, Internal and External balance, Pegged exchange rates with capital mobility, Pegged exchange rates and the monetary approach.

Unit 8: International Trade Policies in India

Current direction and composition of international trade in India, Trade problems in India, India’s BOP, Convertibility of rupee on current account and capital account, MNC’s in India, Problem of International Debt in India.

Readings:

Soderstain and John Reed: International Economics, McGraw Hill Pub Krugman , International Economics Bhagwati J., International Trade, Cambridge University Press Dominick Salvatore, International Economics, John Wiley & Sons (Asia) Chacoliades: International trade, Theory and Policy, Mc.Graw Hills, 1978. Kindeberger C.B'.International Economics, Taraporewala and Sons, Bombay. Deepak Nayyar: Trade and Industrialisation, Oxford University Press, 1997. Jagadish Bhagavathi: Writings on International Economics (ed) Balasubramanyam,

OxfordUniversity Press.

Semester- IV

XVI -) Econometrics II

Unit.1 Simultaneous Equation Models: Definition, Simultaneous equation bias, The method of indirect Least square (ILS), Two stage least square (2 SLS), Three stage least Square. Structural and Reduced –form equations, Instrumental variable method.

Unit.2 Identification: Introduction, The order condition for identifiability, The Rank condition for identifiability, Recursive Models.

Unit.3 Lagged Variables and Distributed Lag Models: Use of lag in Economics, The resons for Lags, Almon Approach of Polynomial Distributed Lag Scheme, Koyck Approach to Distributed lag Models, Adaptive Expectations Model, Nerlove’s Partial Adjustment Model, Granger Causality Test.

Unit.4 Linear Regression Model to Non Linear Relationship: Functional forms of Regression Models, Double Log Model, Semilog Models, Reciprocal Model, The Cobb-Douglas Production Function, Polynomial Regressions Model.

Unit.5 Time Series Analysis: Introduction, Stationary and Non Stationary process, Unit root stochastic process, Concept of Integration, Spurious Regression, Unit Root Test, Co-integration Model.

Unit.6 Multivariate Analysis: Meaning, properties of Multivariate Normal Distribution, Hotelling T2, Discriminant Analysis, Factor Analysis.

Unit.7 Dummy Variables: Meaning, Uses of Dummy variables, Interaction effects using dummy variables, piecewise Linear Regression, Features of Dummy variable models, the dummy variable model alternative to the chow test, Dummy Dependent variable models.

Unit.8 Forecasting: Forecasting in simple Linear Model, Test of Significance of the Difference between a single prediction and the Actual observation, Theil’s Inequality coefficient, The Janus Quotient. .

Readings :

1) Gujarati, D. N. (1995), Basic Econometrics ( 2nd Endition), Mc Graw Hill, New Delhi. 2) Koutsoyiannis, a ( 1977), Theory of Econometrics ( 2nd edition ), The Macmillan Press Ltd., London. 3) Maddala, G. S. (1997), Econometrics, Mcgraw Hill, New York. 4) Intrilligator M. D. (1997), Econometric Methods, Techniques and Applications, Prentice Hall, Englewood Cliffs, New Jersey. 5) Johnston, J. (1991) Econometric methods, Mcgraw Hill book Co. London. 6) Chow G.C. (1983), Econometrics, Mcgraw Hill, New York. 7) Franses P. H. (1998), Time Series Models for Business and Economic Forecasting, Cambridge Press, New York. 8) Dhrymes, P. J. ( 1970), Econometrics---Statistical foundations and applications, Harper and row Publishers, New York. 9) Anderson, T.W. (1958), Introduction to Multivariate Statistical Analysis, Chapman and hall, London. 10) Krishna, K. L. (1997), Econometric Applications in India, Oxford University Press , New Delhi. 11) Kennedy, P ( 1998) A Guide to Econometrics 4th edition, MIT press, New York. 12) Goldberger, A. S. (1998) , Introductory Econometrics, Harward University press, Cambridge, Mass.

Semester –IV

XVI – A) Financial Institutions and Markets: Unit 1 Securities and Exchange Board of India : Introduction, SEBI Act, 1992, purpose of the Act, The management of the Board, powers and Functions of Sebi, Penalties And Adjudication. Sebi Guidelines for Issue of Debt Instruments. Unit 2 Government Securities Market : Introduction, Features of Governemtn Securities Market, Players in the Governement Securities Markets, Purpose of Issuing Government Securities, Primary Dealers (PDs). Unit 3 Reserve Bank of India: Introduction, Functions of the Reserve Bank of India- As Currency Authority,Credit creation and Credit Control-Techniques/Measures, Quantitative Credit Control- Bank Rate, Variable Reserve Requirements, Cash Reserve Ratio, Statutory Liquidity Ratio. Unit 4 Insurance Sector: Introduction, Definition, Principles of Insurance, Kinds of Insurance- Life Insurance-Functions, Objectives, Social Responsibilities. General Insurance, IRDA (Protection of Policy holder’s Interest ) Regulations, 2002. Unit 5 Investment Trusts : Investment Trusts, Investment Trust and Investment Counsel, Development of Investment Trusts, Investment trusts in India, Types of Investment Trusts, Future of Investment Trusts in India. Unit 6 Mutual Funds: Meaning, Concept, Types- public Sector Mutual Funds, Private Sector Mutual Funds, Open Ended Funds, Close Ended Funds, Interval Funds, Income Funds, Growth Funds, Balance Funds, Equity Funds, Bond Funds, Off-shore Funds. Unit 7 Interest Rate Structure: Introduction, Meaning and the concept, Determinants/Level of interest Rates, Classical Theory, Loanable Fund Theory of Interest, Liquidity Preference Theory, Lonable Fund Theory of Interest. Unit 8 Unit Trust of India: Introduction, Objective of UTI, Schemes of UTI-Open Ended Schemes, Close Ended Schemes, UTI reform package, Growth in UTI Business.

Readings : 10) Bansal, L.K., Mutual Fund Management and Working, Deep and Deep Publication,

New Delhi, 1996. 11) Batra, G.S. , Management of Financial Institutions and Markets, Deep and Deep

Publications, Delhi, 1997. 12) Bhole, L. M., Financial Institutions and Markets: Structure, Growth and Innovation,

Tata McGraw Hill, New Delhi, 1998. 13) Dangwal, R.C..,R.C. Institutional Finance and Industrialisation, Deep and Deep

Publications, New Delhi, 1998. 14) Desai, Vasant., Development Banking in India : Issues and Options , Himalya

Publication House, 1998. 15) Edminister, R.O., Financial Institutions, Markets and Managements, Tata Mcgraw

Hill, New York, 1986. 16) Fensermaker, J. D., Readings in Financial Markets and Managements, Tata McGraw

Hill, New York, 1986. 17) Gupta, Shashi k and Sharma R.K., Financial Management- Theory and Practice,

Kalyani Publishers, new Delhi, 2003. 18) Houthakkar Hendrik, S. and Peter j. Willianmson., The Economics of Financial

Markets, Oxford University press, 1996.