m.a economics syllabus... · decision making under uncertainty; ... income consumption relationship...
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SYLLABUS (Revised)
FOR
M.A ECONOMICS
(From July 2016 Onwards)
Department of EconomicsCentral University of Kashmir
Srinagar- J & K
Revised Course Structure for M.A. Economics Programme
First Semester
Second Semester*To be chosen from a basket of courses offered by university for M.A programmes
Second Semester
Course Code Title of Course Course Type CreditMarks
CIA ESE TotalMEC-(C) 1621 Micro Economics - II CC 4 40 60 100MEC-(C) 1622 Macro Economics - II CC 4 40 60 100MEC-(C) 1623 Statistical Methods CC 4 40 60 100MEC-(C) 1624 International Finance CC 4 40 60 100SO Social Orientation* SO 4 40 60 100
Third Semester
Course Code Title of Course Course Type CreditMarks
CIA ESE TotalMEC-(C)1631 Economics of Development CC 4 40 60 100MEC-(C)1632 Econometrics CC 4 40 60 100MEC-(C)1633 Public Economics CC 4 40 60 100MEC-(D)1634 Dissertation Work# Dissertation 4 100MEC-(O) 1631-1635 Open/ Generic Elective OE/GE 4 40 60 100
Open/ Generic Elective**
Course Code Title of Course CourseType Credit
MarksCIA ESE Total
MEC-(O)1631 Jammu and Kashmir Economy OE/GE 4 40 60 100MEC-(O)1632 Financial Institutions and Markets OE/GE 4 40 60 100MEC-(O)1633 Managerial Economics OE/GE 4 40 60 100MEC-(O)1634 Industrial Economics OE/GE 4 40 60 100MEC-(O)1635 Basic Econometrics OE/GE 4 40 60 100
Course Code Title of Course CourseType Credit
MarksCIA ESE Total
MEC-(C) 1611 Micro Economics - I CC 4 40 60 100MEC-(C) 1612 Macro Economics - I CC 4 40 60 100MEC-(C) 1613 Mathematics for Economics CC 4 40 60 100MEC-(C) 1614 International Trade CC 4 40 60 100SS Soft Skill Course* SS 4 40 60 100
Fourth Semester
Course Code Title of Course Course Type CreditMarks
CIA ESE TotalMEC-(C)1641 Growth Economics CC 4 40 60 100MEC-(C)1642 Environmental Economics CC 4 40 60 100MEC-(C)1643 Indian Economy CC 4 40 60 100
MEC-(E)1641-1643 DC Elective I DCE 4 40 60 100
MEC-(E)1644-1646 DC Elective II DCE 4 40 60 100Discipline Centric Elective I
Course Code Title of Course CourseType Credit
MarksCIA ESE Total
MEC-(E)1641 Political Economy DCE 4 40 60 100MEC-(E)1642 Economics of Health and Education DCE 4 40 60 100MEC-(E)1643 Financial Economics DCE 4 40 60 100
Discipline Centric Elective II
Course Code Title of Course Course Type CreditMarks
CIA ESE Total
MEC-(E)1644Money, Banking and InternationalTrade
DCE 4 40 60 100
MEC-(E)1645 Islamic Banking DCE 4 40 60 100MEC-(E)1646 Indian Public Finance DCE 4 40 60 100** Not meant for internal students
# Evaluation procedure for this course will be as
Evaluation basis Max. Marks
Synopsis presentation No Weightage
Two monthly progress report No weightageDissertation presentation before DRC 40
Dissertation Evaluation by external expert 40
Final Presentation and viva voce 20
.Note: The electives will be offered depending on the availability of faculty members.
Course Code: MEC-(C) 1611 Course Name: Micro Economics – I
Unit I: Choice and Demand
Preferences and utility– rational choice; Utility maximization problem; Income offer curves and Engle’s
curves; Income effect and substitution effect– Slutsky and Hicks; Ordinary demand curve and
compensated demand curve; Ordinary goods and Giffin goods; Revealed preference hypothesis; Market
demand and elasticity; Market demand curves; Relationship among elasticities.
Unit II: Uncertainty and Information
Decision making under uncertainty; The expected utility theory of Von Neumann and Morgenstern;
Attitude towards risk; Measures of risk aversion; Asymmetric information– market for lemons and market
signalling; Principle-agent problems; Incentives framework in private and public enterprises; Efficiency
wage theory; Moral hazard.
Unit III: Theory of Production
Production function with one variable input and two variable inputs; Cost minimizing input choices;
Some common production functions– Cobb-Douglas and constant elasticity of substitution production
function; Returns to scale; Expansion path.
Unit IV: Theory of Costs
Short run and long run costs and their relationship in traditional cost theory; Average marginal
relationships; Modern cost theory; Economies and diseconomies of scale; Economies and diseconomies
of scope.
Unit V: Market Structure
Introduction to various forms of market; Price and output under perfect competition– short run and long
run equilibrium of a firm; Short run supply curves; Equilibrium of firm and industry– short run and long
run; Monopoly– short run and long run equilibrium price and output determination; Various forms of
price discrimination; Price and output determination under monopolistic competition– short run and long
run analysis.
References:
1. Baumol, W.J., Economic Theory & Operations Analysis, Prentice Hall, New Delhi.
2. Henderson, J.M & R.E. Quant, Micro Economic Theory: A Mathematical Approach, McGraw
Hall, New Delhi.
3. Salvatore, D. (2003), Micro economics; Theory and Applications. Oxford UniversityPress, New
Delhi.
4. Perloff, J. M. (2001), Microeconomics, Addison Wisely Longman, India.
5. Nicholson, W. (1992), Microeconomic Theory: Basic Principals and Extensions. TheDryden
Press, USA.
6. Koutsoyiannis, A. (1979), Modern Microeconomics, Macmillan Press, London.
7. Layard, P. R. G. and Walters, A.W. (1978), Microeconomic Theory, McGraw Hill,New York.
8. Sen. A. K. (1999), Microeconomics - Theory and Applications, Oxford UniversityPress.
9. Pindyck R. S. and Ruboinfeld, D. L. (1999), Microeconomics, Prentice Hall of India.
10. Jeffrey M.P. (2001) 2nd Ed., Microeconomics Addison Wisely Longman, IndiaBranch.
11. Walter Nicholson (1992) 5th Ed, Microeconomic Theory: Basic Principals andExtensions, The
DridenPress , USA.
Course code: MEC-(C) 1612 Course Name: Macro Economics - I
Unit 1: National Income and Social Accounting
National Product– productive and non- productive activities; The components of final demand; Equality
and distribution of national income, GNP, welfare and quality of life; Measurable Net Economic Welfare
(MEW); Social accounting– concept and importance; The system of accounts and economic theory; Main
features and types of social accounts; Balance of payment accounting; Matrix presentation of social
accounting.
Unit II: Sectoral Demand Functions
Consumption function; Keynes’s law of consumption – implication of the law; Short run and long run
consumption function; Income consumption relationship – absolute income, relative income, life cycle
income and permanent income hypothesis; Investment demand- neoclassical approach, Keynesian
approach (MEC) approach; Accelerator principle; Keynesian Multiplier– static and dynamic.
Unit III: Inflation and Unemployment
Classical, Keynesian and monetarist approach to inflation; Demand pull and cost push inflation; Bent
Hansen model of demand pull inflation; Structuralist theory of inflation; Phillips curve – short run and
long run; Keynesian views of the output-inflation trade off; Tobin views on Phillips curve; Natural rate
of unemployment hypothesis; NAIRU and Phillips curve; Strategies to control inflation.
Unit IV: Income Determination Model
Income determination in three sector model; Balanced budget multiplier; Income determination in the
four sector model including foreign spending; Foreign trade multiplier; Aggregate supply function–
Keynesian and classical; Keynesian views of Labour market; Labour supply and variability of money
wages.
Unit V: Theories of Trade Cycle
Anatomy and indicators of trade cycle; Multiplier-accelerator interaction theories of trade cycle–
Samuelson, Hicks; Keynes and Kaldor model of trade cycle; Real business cycle theory; Control of trade
cycle.
References:
1. Ackley G. (1969), Macroeconomics Theory, New York, Macmillan.
2. Blackhouse, R. and A. Salansi (eds.) (2000), Macroeconomics and Real World (2Vols.) Oxford
University Press, London.
3. Branson, W. (1989), Macroeconomic Theory and Policy; 3rd Ed, Harper & Row.
4. Dornbush, R. and S. Fischer (2004), Macroeconomics, 9th Ed, Tata-Mcgraw Hill.
5. Jha, R. (1991), Contemporary Macroeconomic Theory and Policy, Wiley Eastern.
6. Levacic, R and A. Rebman (1986), Macroeconomics; (2nd Ed, Macmillan).
7. Mankiw, N. Gregory (2000), Macroeconomics (4th Ed, Macmillan-Worth).
8. Richard T. Froyen, (2003), Macroeconomics, Pearson Indian Ed.
9. Dernbusch, E and S. Fischer (1981), Macroeconomics Auckland, McGraw Hill International.
10. Hall, R.E. and J.B. Taylor (1986), Macroeconomics, W.W. Norton, New York.
11. Heijdra and Vander Ploeg. Foundations of Modern Macroeconomics, Oxford University Press.
12. Romer D.L, Advanced Macroeconomics, McGraw Hill Company Ltd. New York.
13. Rosalind Levacic and Alexander Rebmann, Macroeconomics – An Introduction to Keynesian –
Neoclassical Controversies.
14. Srivastava M.N. Perspective in Monetary Theory.
Course Code: MEC-(C) 1613 Course Name: Mathematics for Economics
Unit I: Basic Concepts
Real numbers, integer powers, properties of powers, Fractions, fractional powers, Concept of relation and
function, Linear functions-slope and intercept; Quadratic functions- solution using factorization. Cost and
Revenue functions. Simultaneous linear equations- Market equilibrium. Inequalities- strong versus weak
inequalities.
Unit II: Differential Calculus
Slope of a curve, tangents and derivatives, increasing and decreasing functions, Rules of differentiation-
Partial derivatives; Higher order derivatives;
Uses of differentiation in economics– elasticity, constrained optimization, Lagrangian multiplier,
problems of maxima and minima in single and multi-variable functions. Optimisation of Cobb-Douglas
and CES functions.
Unit III: Integral Calculus
Concept of integration, simple rules of integration, indefinite and definite integral; area under a curve,
Fundamental theorem of integral calculus; Properties of definite integral; Application of integrals in
economics– consumer’s surplus, producer’s surplus and growth rates.
Unit IV: Differential and Difference Equation
Concepts; Solutions of first order differential and difference equations; Applications of differential and
difference equation– phase diagram, stability conditions, Harrod Domar one sector model, lagged income
determination model, Cobweb model, Samuelson multiplier acceleration interaction model.
Unit V: Matrix Algebra
Concept of matrix– their types, simple operations on matrices; Determinants & their basic properties;
Inverse of matrix; Jacobian and Hessain Matrix; Rank of a matrix; Solution of a system of linear
equations using matrices; Solution of simultaneous equations through Cramer’s rule.
References:
1. Allen, R. G. D. (2003), Mathematical Analysis for Economists, The Macmillan Press, Delhi.
2. Chiang, C. A. (1984), Fundamental Methods of Mathematical Economics, McGraw Hill.
3. Edward, D. T. (2008), Introduction to Mathematical Economics, Schaum’s outline, Tata
McGraw- Hill, Delhi.
4. Henderson, M. J. (2006), Microeconomics Theory, Tata McGraw- Hill, New Delhi.
5. Yamane, T. (1995), Mathematics for Economists, Prentice Hall of India, New Delhi.
6. Boumal, J. W. (2000), Economic Theory and Operation Analysis, Prentice Hall of India, Delhi.
7. Gupta, S. C. and Kapoor, V. K. Fundamentals of Mathematical Statistics, Himalaya publishing
House, New Delhi
8. Gupta, S.C. and Kapoor, V. K. (2001), Fundamentals of Applied Statistics, Himalayan
Publishing House, Allahabad.
9. Elhance, D. N. (2009), Fundamentals of Statistic,KitabMahal, New Delhi.
10. Srivastava, S. C. and Srivastava, S. (2003), Fundamentals of Statistics,Anmol Publication, New
Delhi.
11. Grewal, P. S. (1990), Methods of Statistical Analysis, Sterling Publishing House, New Delhi.
Course Code: MEC-(C) 1614 Course Name: International Trade
Unit I: Modern Theories of International Trade
Review of classical theory; Heckscher-Ohlin theory of international trade– empirical testing of
Heckscher- Ohlin theory; Theorem of factor price equalization; Role of dynamic factors– changes in
tastes, technology and factor endowments in explaining the emergence of trade;; Kravis and Linder theory
of trade, Technological gap model; Product life cycle theories.
Unit II: Terms of Trade
Definition and measurement of terms of trade– Equilibrium of terms of trade; International Trade Offer
Curve; Terms of trade and distribution of gains from trade under constant and increasing cost conditions;
Secular deterioration hypothesis, its empirical evidence and implications for developing countries.
Unit III: Economic Growth and International
Effects of Economic Growth on Terms of Trade; The Rybczynski theorem; Technological Progress and
Terms of Trade; Dutch disease; Terms of trade and economic growth. Immiserizing growth; Change in
Factor endowments and Terms of Trade-
Unit IV: Theory of Interventions
Tariffs, Quotas and non-tariff barriers; Economic effects of tariffs and quotas on national income, output,
employment, terms of trade, income distribution and Balance of Payments of trading partners both in
partial and general equilibrium framework; Nominal, effective and optimum rates of tariffs – their
measurement; International trade under imperfect competition– product differentiation and trade; The
political economy of non-tariff barriers and their implications.; Metzler paradox
Unit V: Economic Integration
Gains from economic integration; Forms of economic cooperation; Theory of custom union– static and
dynamic effect of a custom union and free trade areas; Regionalism and multilaterism; Rationale and
economic progress, SAFTA, ASEAN, NAFTA and EU union; United Nations Conferences on Trade and
Development (UNCTAD) and WTO
References:
1. Carbaugh, R. J (2008) International Economics, 11th Edition, Thamson south western, New
Delhi
2. Salvatore, D. (2004) International Economics, 8th Edition, Wiley India, New Delhi
3. Krugman P. R. and Obsfeild M. (2000 ) International Economics- Theory and Policy, 5th
Edition, Addison Wesley, New Delhi
4. Soderston, B. and Reed G. (1994)International Economics, 3rd edition, McMillan Press Ltd.,
London
5. Chacholieds, M.(1999) International Economics, Macmilan Publication.
6. Cherunilam, F. (2006)International Economics, 4th Edition, Tata Mcgraw-Hill Companies,
New Delhi
Course Code: MEC-(C) 1621 Course Name: Micro Economics - II
Unit I: Oligopoly- I
Non-collusive oligopoly– Cournot, Bertrand, Kinked demand curve and Stackeleberg models; Theory of
games– zero-sum and non-zero sum games; Nash equilibrium; Prisoner’sDilemma; Repeated and
sequential games; Collusive oligopoly– cartels and price leadership models.
Unit II: Oligopoly- II
Critical evaluation of marginal analysis; Average cost pricing; Bain’s limit pricing theory; Baumol’s
static and dynamic models of sales revenue maximization;Marris’s model of managerial enterprise;
Williamson’s model of managerial discretion.
Unit III: Factor Pricing
Neo-classical approach– marginal productivity theory; Factor pricing in imperfect product and factor
markets; Euler’s product exhaustion theorem; Elasticity of technical substitution and factor shares;
Technical progress and income distribution; Pricing of fixed factors of Production.
Unit IV: Theory of General equilibrium
General equilibrium analysis– interdependence of markets; Efficiency in exchange;Walrasian
equilibrium; Walras law; Existence, stability and uniqueness of equilibrium;Market equilibrium and
Pareto efficiency; Fundamental theorems of welfare economics
Unit V: Welfare Economics
Social welfare criteria-Bentham,Pareto, Kaldor- Hicks; Maximisation of social welfare– Grand utility
possibility frontier; Determination of welfare maximizing configuration; Arrow’s impossibility theorem;
Social welfare functions.
References:
1. Baumol, W.J, Economic Theory & Operations Analysis, Printice Hall, New Delhi.
2. Henderson, J.M & R.E. Quant, Micro Economic Theory: A Mathematical Approach,McGraw
Hall, New Delhi.
3. Salvatore, D. (2003), Micro economics; Theory and Applications, Oxford UniversityPress,
New Delhi.
4. Perloff, J. M. (2001), Microeconomics, Addison Wisely Longman, India.
5. Nicholson, W. (1992), Microeconomic Theory: Basic Principals and Extensions, TheDryden
Press, USA.
6. Koutsoyiannis, A. (1979), Modern Microeconomics. Macmillan Press, London.
7. Layard, P. R. G. and Walters, A.W. (1978), Microeconomic Theory, McGraw Hill.
8. Sen. A. K. (1999), Microeconomics - Theory and Applications, Oxford Universitypress.
9. Pindyck R. S. and Rubinfeld, D. L. 1(999), Microeconomics, Prentice Hall of India.
10. 10. Jeffrey M.P. (2001) 2nd Ed., Microeconomics Addison Wisely Longman, IndiaBranch.
11. Walter Nicholson (1992) 5th Ed, Microeconomic Theory: Basic Principals andExtensions,
The Dryden Press , USA.
Course Code: MEC-(C) 1622 Course Name: Macro Economics - II
Unit I: Theories of Money Supply Determination
Model of bank deposit determination; H- theory of money supply; Money Multiplier; Budget and money
supply; RBI approach to money supply; demand determined model of money supply; Money supply in
open economy; Control of money supply.
Unit II: Demand for Money
Classical approach to demand for money– Fisher’s and Cambridge approach; Keynes’s liquidity
preference approach; Post-Keynesian approaches to demand for money– Baumol’s approach of
transaction demand for money; Tobin portfolio optimization approach; Friedman’s quantity theory;
Patinkin’s real balance effect; Pigou’s effect.
Unit III: Neo- classical and Keynesian Synthesis
IS-LM Model; Derivation of IS-LM Curves; Factors causing shift in the IS-LM schedule; Extension of
IS-LM Model with government sector; Extended Model with labour market and variable price level;
Monetary and fiscal policy– tools and relative effectiveness.
Unit IV: Macroeconomics in Open Economy.
IS-LM model in open economy, Monetary and fiscal policy in the open economy- Mundell-Fleming
Model. Macroeconomic Policy: Meaning and objectives, Targets and Instruments, Targeting monetary
aggregate or interest rate- implications. Fiscal Stabilisation policy.
Unit V: Recent Developments in Macroeconomic Theory
Monetarism– central propositions, Friedman’s Reformulation of quantity theory of money; classical
economics–Theory of rational expectations-concepts and it implications; New classical policy conclusion.
New Keynesian economics– Sticky price and Efficiency wage models.
References:
1. Ackley G. (1969), Macroeconomics Theory, New York, Macmillan.
2. Brian Snowdon and Howard R Vane (2005), Modern Macroeconomics – Its Origins,
Development and Current State. Edward Elgar, Cheltenham, UK; Northampton, M A, USA.
3. Blackhouse, R. and A. Salansi (eds.) (2000), Macroeconomics and Real World (2Vols.)
Oxford University Press, London.
4. Branson, W. (1989), Macroeconomic Theory and Policy; 3rd Ed, Harper & Row.
5. Dornbush, R. and S. Fischer (2004), Macroeconomics, 9th Ed, Tata-Mcgraw Hill.
6. Jha, R. (1991), Contemporary Macroeconomic Theory and Policy, Wiley Eastern.
7. Levacic, R and A. Rebman (1986), Macroeconomics; (2nd Ed, Macmillan).
8. Mankiw, N. Gregory (2000), Macroeconomics (4th Ed, Macmillan-Worth).
9. Richard T. Froyen, (2003), Macroeconomics, Pearson Indian Ed.
10. Dernbusch, E and S. Fischer (1981), Macroeconomics Auckland, McGraw Hill International.
11. Hall, R.E. and J.B. Taylor (1986), Macroeconomics, W.W. Norton, New York.
12. Heijdra and Vander Ploeg. Foundations of Modern Macroeconomics, Oxford University
Press.
13. Gupta S.B. (1994), Monetary Economics, S Chand and Co, New Delhi.
14. Romer D.L, Advanced Macroeconomics, McGraw Hill Company Ltd. New York.
15. Rosalind Levacic and Alexander Rebmann, Macroeconomics – An Introduction to
Keynesian – Neoclassical Controversies.
16. Richard T Froyen (2005), Macroeconomics, 7th Edition, Pearson Education. Delhi.
17. Srivastava M.N. Perspective in Monetary Theory.
Course Code: MEC-(C) 1623 Course Name: Statistical Methods
Unit I: Sampling and Scaling Techniques
Introduction to basic statistics; Data collection methods; Sampling design, criteria of selecting a sample,
characteristics of a good sample design, sampling techniques; Measurement and scaling; Scaling
techniques– rating scales, differential scales, summated scales and cumulative scales. Unit II:
Correlation and Regression
Correlation- Methods of measuring correlation– Graphical methods and algebraic methods– Karl
Pearson’s coefficient of correlation and Spearman’s rank correlation coefficient; Properties of correlation
coefficient; Partial and multiple correlations; Simple linear regression, principle of ordinary least squares
and regression lines.
Unit III: Probability and Distribution
Deterministic and non-deterministic experiments; Types of events– classical and empirical definitions of
probability; Laws of addition and multiplication; Conditional probability and concept of independence;
Baye’s theorem and its applications; Mathematical expectation; Elementary concept of random variable–
probability mass and density functions, their expectations.
Unit IV: Theory of Sampling and Estimation
Parameter and statistic, Concept of estimator and sampling distribution, Estimation– types of estimators
and their properties; Difference between point estimation and interval estimation; Characteristics of good
estimator– Unbiasedness and efficiency; Standard error of an estimate.
Unit V: Hypothesis Testing
Testing of hypothesis; Level of significance, Confidence limits and critical region; Type I and Type II
error; One tailed and two tailed tests; conceptual introduction of z and t tests – significance of mean and
proportion, difference between two means and two proportions; Chi– square test, F– test as variance ratio
test, One way ANOVA.
References:
1. Chou, Y. (1975), Statistical Analysis, Holt, Reinhart and Winston, New York.
2. Croxton Crowden& Klein (1971) Applied General Statistics, Prentice Hall of India, New Delhi.
3. Nagar, A.L and R.K, Das (1985), Basic Statistics, Oxford University Press, New Delhi.
4. G. M. Clarke and D. Cooke (1992), A Basic Course in Statistics, 3rd Edition, Arnold.
5. S. C. Gupta (1993), Fundamentals of Applied Statistics, S. Chand and Sons, New Delhi.
6. Gupta, S.P. (2014), Statistical Methods, 43rd edit, Sulthan Chand & Sons, New Delhi
7. J. E. Freund (1999), Mathematical Statistics, 5th Edition, Prentice-Hall International.
8. Hogg, R.V. and Craig, A.T. (1995), “Introduction to Mathematical Statistics”, Prentice-Hall
International, inc. Engle Wod Cliff, N.J., Fifth Edition.
9. Mood, A.M. Graybill, F.A. and Boes, D.C. (1974), “Introduction to the Theory of Statistics”,
Mcgraw-Hill Book Company, New York, Third Edition.
10. Hogg, R. V. and A. T. Craig (1970), Introduction to Mathematical Statistics (3rd Edition),
Macmillan Publishing Co., New York.
11. Sukhatme, P. V. and B. V. Sukhatme (1970), Sampling Theory of Survey with Applications,
Lowa State University Press, Ames.
12. J. A. Rice (1995), Mathematical Statistics and Data Analysis, 2nd Edition, Duxbury Press.
13. Hogg, R.V. and Tanis E.A. (1993), “Probability and Statistical inference” Macmillan
Publishing Company, New York, Fourth Edition.
14. D. G. Rees (1987), Foundation of Statistics, Chapman & Hall.
15. G. M. Clarke and D. Cooke (1992), A Basic Course in Statistics, 3rd Edition, Arnold.
16. R. L. Schaeffer (1990), Introduction to Probability and its Applications, Pws-Kent.
17. F. Daly, D. J. Hand, M. C. Jones, A. D. Lunn, K. J. Mcconway (1995), Elements of Statistics,
Addison-Wesley.
18. S. Ross (1976), A First Course in Probability, Macmillan.
19. Millar, J. (1996), Statistics for Advanced Level, Cambridge University Press, Cambridge.
Course Code: MEC-(C) 1624 Course Name: International Finance
Unit I: Foreign Exchange Markets
Meaning and scope of international finance–Foreign Exchange Markets – Functions of Foreign
exchange Markets, Foreign Exchange Rates- Equilibrium Foreign Exchange Rates, The Exchange rates
and balance of payment, Spot and forward rates, Currency Swaps, Futures, and Options,
Foreign Exchange Risks, Hedging and speculation, Interest Arbitrage- uncovered interest arbitrage,
covered interest arbitrage, Efficiency of foreign exchange markets.
Unit II: Exchange Rate Determination
Purchasing power Parity Theory; absolute and relative, Monetary Approach to exchange rate
determination – under fixed and flexible exchange rates, portfolio balance model and exchange rates–
exchange rate over shooting; Exchange control–objectives and methods of exchange control
Unit III: International Capital Flows
Types of international capital flows –FDI and FII importance; and role of foreign capital; Factors affecting
international capital movements; Growth and dispersion of FDI and MNCs. Theories of foreign
investment – capital theory, product cycle model, internalization approach, eclectic paradigm (OLI
model). Multinational corporations - organization and importance, World Bank group, ADB, Euro
Currency/Dollar Market
Unit IV: International monetary system
Gold standard, Bretton woods system, post Bretton woods era, the Jamaica conference of 1976, and
contemporary international monetary system. IMF and its role in international monetary system,
Reforms of the international monetary system, reforms of the international financial architecture
Unit V: Foreign Debt and currency crisis
Role of external debt in developing nations; Debt – growth link, Magnitude of debt problem and debt
relief initiatives, , Global financial crisis– reason, effect and measures; PIIGS and Eurozone crisis, East
Asian crisis and IMF handling of the crisis,
References:
1. AhmadKhanMasood,(1992),Euro-CurrencyMarket:StructureandWorking,Indus
Publishing Company.
2. Bo-Soderstenand Geofrey Reed, (2003), International Economics, Macmillan, London.
3. BrainTew.(1985),theEvolutionofInternationalMonetary’System,Hutchinson.
4. FrancisoL. Rivera- Batiz, and Luis Rivera- Batiz, (1989), International Finance Open Economy
Macroeconomics,Mazewell Macmillan International Edition.
5. Keith Pilbeam,(2000),International finance,MacMillan,4thEdition.
6. Michael Melvin International Money and Finance 6th Edition, Addison-Wesely.
7. Moris Goldstein, (1998),The Asian Financial Crises;Causes, Cures and Systemic
Implication Washington Dc,June.
8. Obstfied, M andRogoff,K (1983),“Foundations of International Macroeconomics”,
MITPress,1996.Pecchioli,R.M.,theInternationalizationofBanking,Oecd,Paris.
9. PaulRKrugman&MauriceObstfeldInternationalEconomicsTheoryandpractice
Pearson Education, Singapore.
10. Rajwade, A.V., (1996), Foreign Exchange, International Finance and Risk
Management, Acacdemy of BusinessStudies.
11. Richard M.Levich, International Financial Market,McGraw Hill.
12. Sachs,JandRadelet,Steven(1998),“TheEastAsianFinancialCrisis;Diagnosis,
CausesandCures,instituteofInternationalDevolvement,Us,April.Also,Published in Banking Papers on
Economy Activity.
13. Salvatore D. International Economics7th Edition (John Wiley and sons), Tata
Mcgraw-Hill.
14. Shapiro, AlanC., (2003), Multinational Financial Management, John Wiley and
Sons,Seventh Edition,Chapter3.
15. ThomasA.Pugel,(2004),International Economics,TMH.
16. Francis Cherunilam, International Economics, Tata McGraw Hill Publishing Co.Ltd., New Delhi ,
Fifth Edition.
Note: Latest Edition of all the books must be used only
Course Code: MEC-(C) 1631 Course Name Economics of Development
Unit I: Concept and Measurement of Economic Development
Meaning and determinants of development; Perpetuation of underdevelopment; Poverty– absolute and
relative; Measures of poverty– poverty gap, Sen’s index of poverty; Inequality; Measurement of
inequality– Lorenz curve, Kuznets ratio and Gini coefficient; Inequality and income– inverted U
hypothesis; Inequality and development relationship; Development gap; Measurement of development–
human development index, quality of life, basic need approach and other indices.
Unit II: Pre-Keynesian Theories of Economic Development
Classical theory of economic development– Smith and Ricardo; Marxian theory of development; Crises
in the capitalism; Schumpeter theory of capitalistic development; Comparison: classical- Marx-
Schumpeter.
Unit III: Partial Theories of Economic Development
The process of cumulative causation– Myrdal; low level equilibrium trap– Nelson model; Critical
minimum efforts thesis–Harvey Leibenstain; The new economic geography–Krugman theory; Michal
Kremer-O-ring theory of economic Development.
Unit IV: Approaches to Development
The theory of big push; Balanced growth; Unbalanced growth– Hirschman strategy; Structural changes
model– Lewis, Ranis-Fei model; Urbanization and rural urban migration– Haris-Todaro model; Neo
classical counter revolution–challenging the static model, free market, public choice and market friendly
approach.
Unit V: Sectoral Aspect of Development
Importance of agriculture and industry in economic development; Model of complement arties between
agriculture and industry; Structure of labour market in the developing countries; Choice of techniques and
appropriate technology; Choice of techniques and conflict of objective; Investment criteria; Elementary
ideas of cost-benefit analysis.
References:
1.Agarwal and Singh (1958), The Economics of Underdevelopment, Oxford University Press, New Delhi.2.Adelman, I. (1961), theories of Economic Growth and Development, Stanford University Press,Stanford.3.Behrman, S. and T.N. Srinivasan (1995), Handbook of Development Economics, Vol. 3, Elsevier,Amsterdam.4.Chenery, H. and T.N. Srinivasan (Eds.) (1989), Handbook of Development Economics, Vols. 1 & 2,Elsevier, Amsterdam.5.Ghatak, S. (1986), An Introduction to Development Economics, Allen and Unwin, London.6.Gills, M., D.H. Perkins, M. Romer and D.R. Snodgrass (1992), Economics of Development (3rdEdition), W.W. Norton, New York.7.Higgins, B. (1959), Economic Development, W.W. Norton, New York.8.Kindleberger, C.P. (1977), Economic Development, (3rd Edition), McGRaw Hill, New York.9.Meier, G.M. (1995), Leading Issues in Economic Development, (6th Edition), Oxford University Press,New Delhi.10. Myint, Hal (1965), the Economics of Underdeveloped Countries, Preager, New York.11. Myint, H. (1971), Economic Theory and Underdeveloped Countries, Oxford University Press, NewYork.12. Todaro, M.P. (1996), (6th Edition), Economic Development, Longman, London.13. Thirwal, A.P. (1999), (6th Edition), Growth and Development, Macmillan, U.K.14. Dasgupta, P. (1993), An Enquiry into Well-being and Destitution, Clarendon Press, Oxford.15. Hirsch, A.O. (1958), The Strategy of Economic Development, Yale University Press, New York.16. Lewis, W.A. (1955), The Theory of Economic Growth, George Allen and Unwin, London.17. Mehrotra, S. and J. Richard (1998), Development with a Human Face, Oxford University Press, NewDelhi.18. Meier, G.M. and D. Seers (Eds.) (1987), Pioneers in Development, Oxford University Press,NewYork.19. Myrdal, G. (1957), Economic Theory and Underdeveloped Regions, Duckworth, London.20. Schumpeter, J.A. (1949), The Theory of Economic Development, Harvard University Press,Cambridge, Mass.21. Todaro, M.P. (1971), Development Planning : Models and Methods, Oxford University Press,Oxford.22. United Nations (1994), Human Development Report, United Nations, New York.23. Campbell, N. and F. Burton (Eds.) (1994), Japanese Multinationals, Routledge, New York.24. Dasgupta, P., A.K. Sen and S. Marglin (1972), Guidelines for Project Evaluation, UNIDO, Vienna.25. Ranis, G. and A. Mahmood (1992), Political Economy for Development, Blackwell, CambridgeMass.26. Sen, A. (1992), Inequality Reexamined, Oxford University Press, Oxford.27. United Nations (1994), Human Development Report, United Nations, New York.28. Grossman, G. and E. Helpman (1991), Innovation and Growth in the Global Economy, MIT Press,Cambridge, Mass.29. Weiss, J. (1988), Industry in Developing Countries, Croom Helm, London.
Course Code: MEC-(C) 1632 Course Name: Econometrics
Unit I: Basic Econometrics
Nature, meaning and scope of econometrics; Methodology of econometrics model : Simple and general
linear regression model– assumptions ; Method of Ordinary Least Squares (OLS); Properties of OLS
estimator and Gauss Markov Theorem; Concept of coefficient of determination– R2 and adjusted R2
Unit II: Problems in Regression Analysis and Dummy Variable Technique
Heteroscedasticity; Autocorrelation Multicollinearity -Reasons, consequences, methods of detection and
important remedial measures. Dummy variable – use of dummy variables, regression with dummy
dependent variables for measuring the change of parameter, seasonal adjustment of time series
and dummy variable trap.
Unit III: Qualitative Response Regression Models
Nature of qualitative response models; The Linear Probability Model, Logit and Probit Models,
Simultaneous equation bias and inconsistency of OLS estimators; The identification problem; Rules of
identification– order and rank conditions;
Unit V: Dynamic Econometric Models
Autoregressive and distributed lag models; Role of lag in economics; Endogenous lagged variable–
Koyak geometric lag model, Nerloves’s Partial adjustment model, Cagan’s adaptive expectations model;
Exogenous lagged variable– Almon approach to distributed-lag models:
Unit V: Time Series Analysis and Forecasting Techniques
Time series models and analysis; Stationarity and non-stationarity, correlogram, unit roots, co-
integration, spurious regression, Dickey-Fuller test, Engle-Granger test, white noise process, Random
walk model Forecasting with multivariate regression model; Time series models and forecasting: ARIMA
Models and Box-Jenkins methodology;.
References:
1. Damodhar.N.Gujarati, (2005), Basic Econometrics, Tata McGraw Hill, New Delhi.
2. A Koutsoyannis, (2004), Theory of Econometrics, Palgrave.
3. Dilip.M.Nachane, (2006), Econometrics: Theoretical Foundations and empirical
Perspective, Oxford University Press.
4. Greene.W.H, (1997), Econometrics Analysis, Prentice Hall.
5. Johnston.J, (1991), Econometric Methods, Mcgraw Hill.
6. Jack Johnston & John Dinardo, Econometric Methods- 2nd edition.
7. William H. Greene, Econometric Analysis – 5th edition.
8. James G. Mackinnan, Econometric Theory & methods by Russel Davidson.
9. Creel (2005), Econometrics.
10. Dominick Salvatore, Derrick Reagle, Statistics & Econometrics 2nd edition.
11. Jeffery M. Woolridge, Introductory Econometrics- a modern approach.
Course Code: MEC-(C) 1633 Course Name: Public Economics
Unit I: Introduction to Public Economics
Public Economics-meaning and scope: Traditional Public Finance school, public choice school;
Rationale for the role of government in an organized society; Allocation, distribution and stabilization
roles of government; Changing perspective about role of government in a mixed economy.
Unit II: Theory of Public Goods
Public goods- Pigovian approach, Partial equilibrium analysis, General equilibrium analysis-
Samuelson’s model, Wicksell and Lindhals model of public good provision, Downs model. Theory of
club goods, Merit goods and local public goods.
Unit III: Resource Allocation Mechanism
Private mechanism for allocation of Resources - exchange Economy, production and exchange
competitiveness. Public mechanism for allocating resources; Problems of allocating resources–preference
revelation and aggregation of preferences, voting systems- Majority voting, Borda voting, plurality
voting, Approval voting, Run off voting; Condercet voting parasdox, Arrow’s impossibility theorem;
Unit IV: Preference Revelation
Demand revealing schemes for public goods– Clark-Groves Mechanism, Clark Tax, Tibeout
model. Rent seeking and directly unproductive profit seeking (DuP) activities.
Unit V: Theory of Public Expenditure
Wagner’s law of increasing state activities; Wiseman-Peacock hypothesis; Pure theory of public
expenditure; Criteria for public investment; Net present value and Internal rate of return, Reforms in
public expenditure– programme budgeting and zero base budgeting.
References:
1. Bailey, Stephen J. Public Sector Economics: Theory and Practice. Second Edition. Palgrave, New
York.
2. Cornes, Richard and Todd Sandler (1996), The Theory of Externalities, Public Goods and Club
Goods. Cambridge University Press.
3. Cullis, John and Philip Jones. (1998), Public Finance and Public Choice. Second Edition. Oxford
University Press.
4. Musgrave and Musgrave. (1976), Public Finance in Theory and Practice. Tata McGraw Hill
Publishing Company Limited, New Delhi.
5. Stiglitz, J. E. (1986), Economics of Public Sector, Norton, New York.
6. Atkinson, A. B. and J. E. Stiglitz. (1980), Lectures on Public Economics, Tata McGraw Hill, New
York.
7. Buchanan, J. M. (1968), The Demand and Supply of Public Goods. Randy McNally, Chicago.
8. Friedman, A. (1986), Welfare Economics and Social Choice Theory. Martins Nijhoff, Boston.
9. Glennester, H. and J. Hills. (1998), The State of Welfare: the Economic and Social Spending,
Oxford University Press, London.
10. Hindriks, Jean and Gareth D. Myles. (2007), Intermediate Public Economics. Prentice Hall of
India.
11. McNutt, Patrick A. (2002), The Economics of Public Choice, Edward Elgar Publishing Limited
UK.
12. Mueller, Dennis C. (1979), Public Choice, Cambridge University Press.
13. Musgrave, R. A. (1959), The Theory of Public Finance, McGraw Hill, Kogakusha, Tokyo.
14. Averbach, A.J. &Feldstern: Handbook of Public Economics, North Holland, Amesterdam.
15. Jha, R: Modern Public Economics, Routlege, London.
Open Generic Electives - I
Course Code: MEC-(O) 1631 Course Name: Jammu & Kashmir Economy
Unit I: Macroeconomic Scenario and Policy.
Basic feature of Jammu and Kashmir Economy, Structural transformation of J & K economy,
Macroeconomic aggregates: GSDP, NSDP, PCY, Budgets and budgetary management; State finance–
sources and disbursement; Latest finance commission’s recommendations.
Unit II: Agriculture and Allied Activities
Land use pattern and cropping pattern; Production and productivity of food grains; Reasons of Low
productivity, Horticulture– area, production and export of fruits during current five year plan, problems
and developmental initiatives; Forests– species wise forest cover, export of forest produce and
developmental initiatives; Saffron production; Fisheries– achievements and policy measures.
Unit III: Industry
Industrial scenario in J&K, Industrial policy resolutions of 2004. PSUs in the J & K – SIDCO, SICOP,
SRTC, J & K Minerals Limited. Causes of Industrial Backwardness and Remedies.
Unit IV Issues in J&K I
Health– overview, health indicators, health care infrastructure, NRHM; Education– literary trends in the
state; mid day Meal scheme, SSA; Major issues of higher education.
Unit V: Issues in J&K II
Poverty and inequality, Problem of unemployment, Potential of Hydropower generation and Indus water
treaty, Challenges in tourism sector, Missing value addition in traditional agricultural and Allied
activities, issues facing in LOC trade, Reasons of poor communication.
References:
1. Singh, J. (2004), The Economy of Jammu and Kashmir, Radha Krishnan Anand & Co, Jammu.
2. DES, Digest of Economics and Statistics, latest issue, Government of J&K, Srinagar.
3. DES, Indicators of Regional Development 2007-08, Government of J&K, Srinagar.
4. DES, Economic Survey 2008-09, Government of J&K, Srinagar.
5. Bhat M.S & M L Misri (1994), Poverty planning and Economic Change in J&K. Vikas publishing
House
6. Bakshi. S. R, (2002), History of Economic Development in Kashmir, Gulshan Publishers J& K.
7. Development Report of J&K State, 2003.
8. Bhat, K. A. (2005), Strategizing Industrial Development in J&K. New Century Publication. New Delhi.
9. Ministry of Finance, J&K Budgets. Government of J&K, Srinagar.
10. G. A. Qureshi, (2015) Poverty in Jammu & Kashmir State, Dilpreet Publishing House, New Delhi.
Course Code: MEC-(O) 1632 Course Name: Financial Institutions and Markets
Unit I: Financial System
Nature and structure of the financial system; Functions of the financial sector; Equilibrium in financial
markets; Financial system and economic development; theories of the impact of Financial Development
on saving and investment. Indicators of financial development; Security Analysis; concept and types of
risk, concept and types of return/yield, valuation of securities – Bonds, Preference shares, common stock,
Convertible securities, Risk-return trade-off.
Unit II: Banking System
Types of banks– commercial banks; Portfolio management by commercial banks, co-operative banks,
development banks and merchant banks; NABARD, EXIM Bank, Reforms in the banking sector;
Banking innovations; New technology in banking.
Unit III: Non-Banking Financial Intermediaries
Small savings, Provident and Pension Funds; UTI and Mutual Funds – Open ended and close ended
funds, concept of Venture Capital Funds, venture capital funds in India. Insurance Services – principles &
kinds of Insurance, LIC, GIC &, Insurance Sector after liberalisation, IRDA, Credit Rating – features and
objectives, Credit rating Agencies in India – CRISIL, ICRA & CARE
Unit IV: Financial Markets in India
Indian Money Market– Call Money Market, Treasury Bill Market, Commercial Bill Market, Commercial
Papers &Certificate of Deposits, Discount Market; Gilt Edged Securities Market
Unit V: Stock Exchange and its Regulations
Stock Market: Mechanism by which corporates issue securities, listing of securities and trading of
securities on Indian exchanges, stock market indices, major instruments traded in stock markets; equity
shares, debentures, derivatives (futures & forwards, options, swaps) NSE, BSE; SEBI– Role and
Functions
Suggested Readings:
1. Bhole, L.M., Financial Institutions and Markets, Tata McGraw Hill, New Delhi.
2. Yeager, Fred, C. and E. Nail. Seitz, Financial Institution Management: Text and Cases,Englewood
Cliffs, PHI, New Delhi.
3. Mayo, Financial Institutions, Investment and Management, Thomson Learning, Bombay.
4. Fabozzi, J.F., Foundations of Financial Markets and Institutions, Pearson Education, New Delhi.
5. Miskin, F., The Economics of Money: Banking and Financial Markets. Addison Wesley Longmate,
New York.
6. Gupta, S. B., Monetary Economics. S. Chand and Co. Ltd. New Delhi.
7. Hubbard, G. R., Money, the Financial System and Economy. Addison Wesley, N. York
8. Thomas. M. et. al., Money, Banking and the Economy. W. W. Norton andCompany, New York,
9. Robinson, R. I. Financial Markets. McGraw Hill, London.
10. Smith, P. F. Money and Financial Intermediation: the Theory and Structure ofFinancial System.
Prentice Hall, New Jersey.
11. Chandler L. V. and Goldfeld, S. M. The Economics of Money and Banking.Harper & Row, New
York.
12. Burton, Maureen and Bruce Brown. The Financial S ystem and the EconomyPrinciples of
Money and Banking. Prentice Hall of India, New Delhi.
13. Mishkin, F. Monetary Policy Strategy, Prentice Hall of India, New Delhi.
Note: Latest Edition of all the books must be used only
Course Code: MEC-(O) 1633 Course Name: Managerial Economics
Unit I: Theory of Demand
Utility and preferences; Indifference curves; Consumer’s equilibrium; Substitution effect and income
effect; Demand function; Determinants of demand; Demand elasticity – Price, Income and cross
elasticity; Total revenue, Marginal revenue and price elasticity
Unit II: Theory of Production and costs
Production function; Law of variable proportions; Isoquant analysis; Producers equilibrium; Returns to
scale; Classification of costs; Short-run and Long-run cost functions
Unit III: Perfect competition and Monopoly
Assumptions of Perfect competition, Short-run equilibrium of firm and industry; Long-run equilibrium of
firm and industry; Monopoly-Demand and Marginal revenue Functions, Monopoly power; Short-run and
Long-run equilibrium.
Unit IV: Monopolistic competition and Oligopoly
Monopolistic competition - Product Differentiation and the demand curve, Concept of industry and
product group, Equilibrium of the firm; Oligopoly –Cournot model, Stackelberg model and cartel;
Managerialism-Baumol’s static single product model without advertising.
Unit V: Macro-economic Aggregates
National income and related concepts; Measurement of National income; Consumption function; saving
and Investment; Investment multiplier; Inflation-Meaning and types; Measurement of Inflation –
Consumer price index
References
1. Salvatore, D. (2003), Micro economics; Theory and Applications, Oxford University
Press, New Delhi.
2. Perloff, J. M. (2001), Microeconomics, Addison Wisely Longman, India.
3. Nicholson, W. (1992), Microeconomic Theory: Basic Principals and Extensions, The
Dryden Press, USA.
4. Koutsoyiannis, A. (1979), Modern Microeconomics. Macmillan Press, London.
5. Pindyck R. S. and Ruboinfeld, D. L. 1(999), Microeconomics, Prentice Hall of India.
6. Dornbush, R. and S. Fischer (2004), Macroeconomics, 9th Ed, Tata-Mcgraw Hill.
Course Code: MEC-(O) 1634 Course Name: Industrial Economics
Unit I: Firm’s Behavior
Meaning and scope of Industrial Economics; organizational pattern of firms— private sector, public
sector, and joint sector; objectives of a firm; Industrial efficiency—Determinants and its measurement;
Efficiency and size of the firm.
Unit II: Market Structure
Standard Form of market structure; workable competition; Market concentration—concept, its
measurement and effects on market Performance; meanings and objectives of Diversification, vertical
Integration and Merger;
Unit III: Investment Decisions
Nature and types of investment decisions; Methods of project evaluation— the payback method, the net
present value method, and the internal rate of return method; Appraisal of public projects, Social cost-
benefit analysis.
Unit IV: Industrial Finance
Industrial finance– need, types and sources of finance; financial ratios– its classification and description;
Interrelatedness of financial ratios; Standards for comparison of financial ratios; Problems of financial
analysis.
Unit V: Theories of Firms and Industrial Location
Theories of growth of firm— Downie’s theory and Penrose theory; Industrial location Analysis—
determinants of Industrial location, Theories of Industrial location- Webers and Sergent Florence.
References
1. Ahluwallia, I.J Industrial Growth in India, Oxford University Press, New Delhi
2. Barthwal, R.R Industrial Economics, Wiley Eastern Ltd. New Delhi
3. Cherumlam, F Industrial Economics, Himalaya Publishing House, Mumbai
4. Desai, B Industrial Economy in India, Himalaya Publishing House, Mumbai
5. Divine, P.J An Introduction to Industrial Economics, George Allen &Unwin & R.M. Jones Ltd.
London
6. Kuchal, S.C. Industrial Economy of India, Chaitanya Publishing House, Allahabad
7. Martin, S Advanced industrial Economics, Oxford University Press, New Delhi
8. Mookherjee, D Indian industry policies and performance, Sage Publications, New Delhi
9. Sandesara, J.C Industrial policy and planning – 1947 – 1991: Tendencies, Interpretations and
issues, Sage Publications, New Delhi
Course Code: MEC-(O) 1635 Course Name: Basic Econometrics
Unit I: Introduction
Nature, meaning and scope of econometrics; Relationship of econometrics with statistics, mathematics
and economics; Nature and types of data for economic analysis; Methodology of econometrics– model
specification stage, model estimation stage, model evaluation stage;
Unit II: Data Collection Techniques
Data collection methods; Sampling design– steps in sampling design, criteria of selecting a sample,
characteristics of a good sample design, sampling techniques;
Unit III: Correlation Regression and association of attributes
Correlation—meaning and scope: Karl Pearson’s Coefficient of Correlation; rank Correlation; Partial and
Multiple Correlation. Regression-Meaning and Scope; Simple and Multiple Regression; Coefficient of
Regression;
Unit IV: Assumptions and Properties
Simple and general linear regression model– assumptions, significance of stochastic disturbance term;
Population regression function and sample regression function; Estimation of linear regression model;
Method of ordinary least squares (OLS); Properties of OLS estimator
Unit V: Dummy Variable Technique
Dummy variable – use of dummy variables, regression with dummy dependent variables for measuring
the change of parameter, seasonal adjustment of time series and dummy variable Trap.
References:
1. Gujarati, D. N. (2004) Basic Econometrics, 4th Edition, Tata Mcgraw-Hill Publishing Company
Ltd, New Delhi.
2. Koutsoyiannis, A. (2006), Theory of Econometrics, 2nd Edition, Palgrave, New York
3. Dougherty, C. (2002) Introduction to Econometrics, 2nd edition, Oxford University Press,
4. Wooldridge, J. M. (2007) Introductory Econometrics, 3rd edition, Thomson South Western, New
Delhi
5. S C Srivastava, Smt. sangya Srivastava (2003)Fundamentals of statistics Anmol publication
6. Croxton, Cowden and Klien , Applied General statistics
Fourth Semester
Course Code: MEC-(C) 1641 Course Name: Growth Economics
Unit I: Basic Growth Models
Growth v/s development; Factors affecting growth and development– capital, labour and land; Growth
Models– Harrod and Domer growth model, problem of instability; Neoclassical Growth Models– Solow,
Meade and Joan Robinson.
Unit II: Technical Progress and Growth Accounting
Technical progress– Hicks, Harrod; Embodied and disembodied technological changes; Learning by
doing; Growth accounting– production function approach to economic growth; Cambridge growth
Models– Kaldor and Passinetti; Golden rule of accumulation; Two sector Model.
Unit III: Endogenous Growth Theory
Endogenous growth Model– AK Model, Role of technology in growth; ; Determinants of R&D;
Modelling relationship between technology creation and growth- one country and two country model;
human capital- education and health.
Unit IV: Growth Theory– International Aspects
Trade and Development; Trade as an engine of growth; Gain from trade – static and dynamic; Models of
Regional growth rate differences– Prebisch, Seers and Kaldor; An export led growth Model- Balance of
payments constrained growth; Import substitution as strategy; Dual gap analysis.
Unit V: Policies and Economic Development
Role of monetary and fiscal policies in developing countries; Financing economic development– domestic
and external sources; Foreign capital and economic development- FDI and FIIs; Role of MNCs; Rationale
for planning in developing economies.
References
1. Adelman, I. (1961), theories of Economic Growth and Development, Stanford University Press,
Stanford.
2. David N Weil (2009), Economic Growth (2nd Edition), Pearson, Education, India.
3. Robert J. Barro and Xavier Sala-i-Martin (2007), Economic Growth (2nd Edition), Printice, Hall
of India, New-Delhi.
4. A P Thirwal (1999/2006), Growth and Development, (6th/8th Editions), Palgrave Macmillan, U.K.
5. Hagen, Everette (1975), The Economics of Development.
6. Higgins Benjamin (1976), Principles of Economic Development
7. Malcolm Gills, Perkins, Romer, Snodgrass, Economics of Development, W.W.Norton and
Company, New York.
8. Mair.GM and Riuch.J.E (2000), Leading Issues in Economic development, Oxford.
9. Michael P Todaro, Stephen C Smith (2003), Economic Development (8th edition), Pearson
Education, Delhi.
10. Ray, Debraj (2003) ‘Development Economics’, Oxford Indian Paperbacks, OUP.
11. Jaydeb Sarkhel , Growth Economics
12. Sen, A.K. (1970), Growth Economics, Selected readings, Penguin books.
Course Code: MEC-(C) 1642 Course Name: Environmental Economics
Unit I: Fundamentals of Environmental Economics
Nature and scope of environmental economics; Pareto optimality and competitive equilibrium; Demand
and supply of Bads; Market failure and environmental degradation–public goods, externalities and
common property resource; Economic activity and environment quality– interactions and trade-offs.
Unit II: Environmental Demand Theory
Measurements of environmental values– use value and non- use value; Valuation of benefits–
methodological issue; Valuation methods– methods based on observed market behaviour; Hedonic
pricing and household production models; Methods based on response to hypothetical markets–contingent
valuation methods.
Unit III: Environmental Regulation
The economic theory of pollution control; Command and control verses market based instruments; Coase
bargaining solution; Economic incentives– Emission taxes, tradable pollution permits, Pigovian fee;
Emission standards; Liability laws.
Unit IV: Optimal Use of Natural Resources
Various approaches to sustainability; Theories of optimal use of non-renewable resources; integrated
environmental and economic accounting; Measurement of environmentally corrected GDP for sustainable
development; Environmental Kuznets curve
Unit V: International Dimensions of Environment
Economics of climate change; International trade and environment in WTO regime-Subsidies and taxes,
Product standards and Exceptions clause; International environmental externalities-Theory and policy;
Global Environmental challenges.
References:
1. Baumol, W. J& W.E. Oates, The theory of environmental policy, Cambridge UniversityPress.
2. Bromely, D.W (Ed) Handbook of Environmental Economics, Blackwell, London.
3. Hanley, N.J.F Shogern& B. White Environmental Economics in theory and practice,
Mcmillan.
4. Hussen, A.M principles of environmental economics, Routlege, London.
5. Kolstad, C.D Environmental Economics, Oxford University Press, New Delhi.
6. Sankar, U (Ed) Environmental Economics, Oxford University Press, New Delhi.
7. Crones, R and The theory of externalities and public goods, Cambridge University,
Sandler Press, Cambridge.
8. Ostrom, E. Governing the commons; The evolution of institutions
9. Charles S. P. (2000), Economics and Global Environment, Cambridge University Press.
10. Barry C. F. and Martha K. F. Environmental Economics. McGraw Hil
Course Code: MEC-(C) 1643 Course Name: Indian Economy
Unit I: History of Development & Planning
Growth strategy till 1991-goal of self-reliance based on import substitution and protection, post 1991
globalisation strategies based on stabilization and structural adjustment package: fiscal reforms, financial
sector reforms and trade reforms. Sector based performance of Indian economy after the reforms.
Planning commission v/s NITI Ayog.
Unit II: Poverty, Unemployment & Human Development
Demographic features; census 2011, population explosion, demographic dividend.Poverty; definitions,
head count ratio, poverty gap & squared poverty gap index. Estimates of Inequality &poverty in India:
Tendulkar &Rangarajan committee. Extent & Distribution of Poverty in India.poverty removal measures
Unemployment–Nature, extentandtypesofunemployment inIndia.Policies onUnemployment–
MGNREGA.HDI & India, UN sustainable development goals.
Unit III: Agriculture and Industry
Institutional and technological changes in Indian agriculture- land reforms and New Agricultural strategy,
rural credit, price policy and subsidies: commercialisation and diversification, food security and
sustainable agriculture
New industrial policy, competition commission of India, Make in India Imitative, privatisation and
disinvestment debate. MSME in Indian economy, Importance of SSIs in Indian Economy
Unit IV: Inflation and Prices
Inflation- definition, causes and consequences, whole sale price index, consumer price index: components
and trends. Analysis of price behaviour in India, Review of Monetary policy of RBI, Financial sector
legislative reforms commission (FSLRC),
Unit V: Foreign TradeSailent features of India’s foreign trade, composition, direction and organization of trade, recent trade
policy. Exchange rate policy – exchange rate management in India, current and capital account
convertibility
References:
1. Bardhan, Pranab; (2003), Poverty Agrarian Structure and Political Economy in India-Selected
Essays–Oxford University Press,New Delhi.
2. Datt,Ruddarand Sundaram,K.P.M,Latestedition, Indian Economy,S Chand and Co,New Delhi.
3. Dhingra,Ishwar C. Indian Economy,Sultan Chand and Sons,New Delhi.
4. Jalan,B, The Indian Economy–Problems & Prospects, Viking.
5. Misra,S.K&V.K.Puri,IndianEconomy,HimalayaPublishingHouse,NewDelhi.
6. Government of India: Economic Survey (latest issue)
7. NCEUS: Report on Conditions of Work and Promotion of Livelihood in Unorganised Sector.
8. Uma kapila. (2015), Indian Economy Since Independence: A Comprehensive and Critical
Analysis of India's Economy 1947-2015.AcademicFoundation,NewDelhi.
9. Uma Kapila (2015), Indian Economy: Performance and Policies, Academic Foundation, New
Delhi.
10. Shovan Ray (2005), Handbook of Poverty in India: Perspectives, Policies, and Programmes,
Oxford university press
11. Shovan Ray (2007),Handbook of Agriculture in India, Oxford university press
12. RaoHunumanta, C.H. (2005), Agriculture, Food Security Poverty and Environment, Essays on
Post Reform in India, Oxford University Press, New Delhi.
13. Agrawal A.N, (2013), Indian Economy Problems of Development and Planning. New AgeInternational Publishers
Note: Latest Edition of all the text books must be used only
Discipline Centric Electives – I
Course Code: MEC-(E) 1641 Course Name: Political Economy
Unit I: Political Economy & Classical Economic Thought
Political Economy– origin and growth; Classical thought; Adam Smith– philosophy of naturalism, theory
of growth and value, theory of distribution; David Ricardo– theory of value, growth and distribution
and theory of rent; Malthus– theory of value and theory of gluts. Major works of JS Mill
Unit II: Socialistic School of Thought
Rise of socialism; State socialism– contributions of Karl Rodbertus and Ferdinand Lassalle; International
revolutionary socialism– Karl Marx and Engels; Marx’s theory of surplus value; Marx analysis of
economic crises, Leninism & Maoism.
Unit III: Marginalism and Neo-Classical School of Thought
Marginalist Revolution; S.W Jevons– philosophy, theory of marginal utility and exchange; Karl Manger–
value theory & theory of imputation; Alfred Marshall–Methodology, definition of economics, utility &
demand. Theory of consumer choice and theory of distribution.
Unit IV: Keynesian thoughts and developments since Keynes
J.M Keynes economic thought– general characteristics of his system of economic thought and its
contemporary relevance; Monetarism, political economy of Development in India; Types and forms of
economic crisis (1930s vs 2008).
Unit V: Indian Economic Thought
Founder of Indian economics: Dadabhi Naoroji, G K Gokhla and R.C. Dutt; Economic ideas of, B.R
Ambedkar, D.R.Gadgil, Gandhi and their relevance in 21st century; AmartyaSen’s– ideas on
freedoms, capabilities and justice.
References:
1. Bhatia H. L. (1993), History of Economic Thought. VikasPublishing House, New Delhi.
2. Eric, R. (1975), A History of Economic Though. Oxford University Press, New Delhi.
3. Guide and Rist, (1973), A History of Economic Doctrine. Oxford University Press, New Delhi.
4. Haney L. (1979), History of Economic Thought.Surjeet Publications New Delhi.
5. Hunt, E. K. (2004), History of Economic Thought - A critical Perspective. Shubhi Publications,
Gurgoan, India.
6. Mark Bloug (1983), Economic Theory in Retrospect. Vikas Publishing House, New Delhi.
7. Sen A. K. (1991), Poverty and Famines: An Essay on Entitlements and Deprivations, Oxford
Universit y Press Oxford.
8. Sen A. K. (2009), Idea of Justice. Penguin Group of Books Ltd. London
9. Stanley.L. Brue.The Evolution of Economic Thought. The Dryden press, Harcourt, Brace college
publishers.
10. Sachs, J. (2005), The End of Poverty. Penguin Books, New York
11. Krugman, P. (2008), An Autobiography. Princeton Weekly Bulletin, Vol. 98
Course Code: MEC-(E) 1642 Course Name: Economics of Health and Education
Unit I Introduction to Economics of Education
Concept and components of Economics of Education, Components of Human Capital, Human Capital
verses Physical Capital, Determinants of demand for education, Education, on job training, health, Labour
market.
Unit II Cost-Benefit analysis of Education
Cost and Benefit of Education- opportunity cost of education, earning profile, external benefit of
education, cost and benefit analysis of education- Net present value, Internal rate of return to education.
Unit III Economics of Health
Concept of Health Economics, Individual and community health, Demand and supply of health care, why
is the health care market different? Life style diseases.
Unit IV Cost-Benefit Analysis of Health
Consumption and investment controversy regarding health cost and benefit analysis of health care, cost
effectiveness analysis of health care, Expenditure on health care, external benefits of health care.
Unit V Economics of Health and Education in India
Incidence of stagnation and dropout, Implications of Sarva Siksha Abhiyan, Mid day meal scheme,
assessment of NRHM, control of communicable diseases.
References:
1. Baru, R.V; Private Health Care in India, Sage Publications, New Delhi
2. Becker, G.S (1974), Human Capital. 2nd Edn., NBER, New York.
3. Berman, P and M.E.Khan (1989), Paying for India’s Health Care. Sage Publications. New Delhi.
4. Blang, M; An introduction to Economics of Education, Cambridge University Cohn, Press E and T.
5. Cohn, E and T.Gaske (1989), Economics of Education, Pergamon Press, London.
6. Klarman, H.E. (1965), Economics of Health, Columbia University Press, New York.
7. Krishnakumar T and Rao K.N. (1987), Financing of Health Services in India: Perspectives and Issues,
Department of Economics, University of Hyderabad (Mimeographed), September.
8. Panchamukhi, P.R.(1980), Economics of Health: A Trend Report, ICSSR Survey, Allied, New Delhi.
9. Rothenberg J. (1951), Welfare Implications of Alternate Methods of Financing Medical Care,
American Economic Review, Proceedings, May.
10. Tilak. J.E.G (1989), Economics of Inequality in Education, Sage, New Delhi.
11. Woodhall, M; Cost – benefit Analysis in Educational planning, Columbia University Press, New
York World Bank; The world Development Report, OUP, New York.
12. World Bank (1983), The World Development Report: Investing in Health. Oxford University Press,
New York. Education for Development.
13. World Bank, (1987), The Financing Health Services in Developing Countries: An Agenda for
Reform, World Bank Policy Study, Washington.
14. EPHTI (2008), Introduction to Health Economics, Ethiopia Public Health Training Initiative,
University of Gondar.
Course Code: MEC-(E) 1643 Course Name: Financial Economics
Unit I: Fundamentals of Financial Markets
Nature and scope of Financial economics; Goals of finance; Ratio analysis-Liquidity ratios, Leverage
ratios, Profitability ratios, Valuation ratios; Future value and present value; Valuation of Bonds; Capital
structure– Modigliani-Miller theory. Capital budgeting-NPV and IRR method
Unit II: Corporate Restructuring
Corporate restructuring– Mergers, Acquisitions, Amalgamations and Disinvestment: Motives and
methods; Synergies from mergers and acquisitions; Types of Mergers and their rationale; introduction to
valuation of companies.
Unit III: Portfolio Theory
Random variables; Risk and Return; Stock valuation; Portfolio risk and return; Optimum portfolio;
Capital allocation line; Portfolio selection models-The Markowitz model
Unit IV: Capital Asset Pricing Model (CAPM)
Capital market line; The capital asset pricing model; The beta of an asset and of a Portfolio; Security
market line; Use of the CAPM model in investment analysis and as Pricing formula
Unit V: Forwards, Futures, and Swaps
Introduction to Derivatives; Forward contracts; Forward prices; The value of a Forward contract;
Introduction to Swaps; Basics of Futures contracts; Futures prices; The Perfect Hedge; The Minimum-
Variance Hedge.
References:
1. Copeland, T. E. and J. F. (1992), Weston, Financial Theory and Corporate Policy, Addison
Wesley.
2. Ross, & Jordan, Waster Field Fundamentals of Corporate Finance, Tata McGraw Hill
3. Elton & Gruber Modern Portfolio Theory and Investment Analysis, TMH
4. Fuller &Farrel Modern Investments & Security Analysis, McGraw Hill Book
Company.
5. Houthakker, H.S. and P.J. Williamson, (1996), Economics of Financial Markets, Oxford University
Press.
6. Brealey, R. and S. Myers, (1997), Principles of Corporate Finance, fifth edition, New York,
McGraw Hill.
7. Kishore, R.M. Financial Management, Taxman Allied Services
8. Pandey, I.M. Financial Management, Vikas Publishing House, New Delhi.
9. Keith Cuthbertson & Dirk Nitzche, Quantitative Financial Economics – 2nd ed
10. Luenberger, David.G, Investment Science, Oxford University Press
11. Srivastava, Rajiv and Misra, Anil, Financial Management, Oxford University Press
Discipline Centric Elective – II
Course Code: MEC-(E) 1644 Course Name: Money, Banking and International Trade
Unit I: Concept and Role of Money
Money— Meaning, functions and kinds; Characteristics of good money; Gresham’s law; Role of money
in capitalist, socialist and mixed economy; Credit— Concept and kinds.
Unit II Theories of Money and Income
Theory of demand for money- Classical and Keynes; Money supply- Approaches to the definition of
money supply; components of money supply;
Unit III Financial Institutions and Markets
Commercial bank— Functions; Credit creation mechanism; Liabilities and assets of commercial banks;
Central bank— Functions; Quantitative and qualitative methods of credit control; Indian money market—
Structure and features.
Unit IV Banking in India
Commercial banks-Growth and regional distribution; Banking legislation- 1949; Nationalization of
commercial banks; Co-operative banks- Growth, Structure and Functions; Regional Rural Banks-
Role and functions; Development Banks-structure, NABARD, IDBI
Unit V International Trade
Inter-regional and international trade; Theories of absolute and comparative advantage; Free trade vs
protection; Tariffs and quotas— Partial equilibrium analysis; Balance of payments— Structure; Measures
to correct disequilibrium in BOP.
Basic Reading List:
1. Frederic S. Miskin (1997), Financial Institutions and Markets, Addison Wesley, USA.
2. S.B. Gupta (2001), Monetary Economics, S. Chand & Company, New Delhi.
3. Robert J. Carbaugh (2004), International Economics, Thompson Publishing Company, New
York.
4. Dominick Salvatore (2003), International Economics, John Wiley & Sons, Singapore
Course Code: MEC-(E) 1645 Course Name: Islamic Banking
Unit I: Introduction
Islamic financial system: an overview
Shariah & Fiqh: Sources and Development
Important concepts and principles of Fiqh
Major norms in Islamic finance
Unit II: Islamic Financial Contracts
Conditions of contract: Waad, Muwaada, Aqd
Elements of contract: Contracting parties, subject matter, offer and acceptance.
Types of contracts
Unit III: Islamic Commercial Banking
Islamic appraisals of conventional banking
Operating structure of Islamic banks
Models of Islamic banking; Sources and application of funds
Unit IV: Islamic Capital Market
Introduction to capital market
Types of market & kinds of products
Islamic appraisal of capital market
Stock market: shariah screening methods, purification and zakah
Unit V: Islamic Financial Institutions
Islamic Financial Institutions in India
Mutual Funds
Islamic Cooperatives
Problems and Prospects of Islamic banking in india
Suggested Readings:
1. Iqbal, Munawar and Molyneux, Thirty Years of Islamic Banking: History, Prospects and
Performance, Philip, 2005.
2. Iqbal, Zubair and Mirakhor Abbas, ‘Islamic Banking’, International Monetary Fund, Washinton DC:
(Occasional Paper No.49), 1987
3. Khan, S. Mohsin, ‘Islamic Interest Free Banking: A Theoretical Analysis’, International Monetary
Fund Staff Papers, (Washington DC), Vol. 33, No, 1, 1986.
4. Mills, Paul S. and John R. Presley, Islamic Finance: Theory and Practice, London, Macmillan, 1999.
5. Obaidullah, Mohammad, ‘Islamic Financial Services, Islamic Economics Research Center, King
Abdul Aziz University (Jeddah, Saudi Arabia, 2005.
6. Siddiqi, M.N., Riba, Bank Interest and the Rationale of its Prohibition, IRTI, IDB, 2004.
7. Usmani, M., Taqi, An Introduction To Islamic Finance, Karachi, Idaratul Ma’arif, 1998.
Course Code: MEC-(E) 1646 Course Name: Indian Public Finance
Unit I: Public Policy
Meaning and scope of Public finance, Public Finance- a positive or normative science, relationship with
other sciences.
Meaning and objectives of fiscal policy; instruments of fiscal policy, Fiscal responsibility and budget
management Act, 2003; Deficit Financing – meaning, objectives and causes; Effects of deficit financing.
Unit II: Public Budgeting:
Economic responsibilities of the Government- Classical and Keynesian views. Modes of state
intervention. Canons of Government budgeting; Zero base budgeting and its limitations; Gender
budgeting.
Pre independence system of government finances in India, budget framing and presentation in post
independence era. Economic and functional classification of budget.
Unit III: Taxation
Meaning and objectives of taxation; Direct and indirect taxes, proportional progressive and regressive
taxation, ad valorem and value added taxation; principles of taxation- cost of service principle, Benefit
principle, Bowen model, lindhal’s model of just taxation.
Impact and incidence of taxation, shifting of taxation, Theories of shifting- concentration theory,
Diffusion theory, demand and supply theory.
Unit IV: Centre State Financial Relations
Principles of multi-unit finance; Fiscal federalism in India; Vertical and horizontal imbalance;
Assignment of functions and of sources of revenue; Logic of the constitutional scheme; Resources
transfer from Government of India– Finance commission and planning commission; Problems of state
indebtedness; Financial resources to Panchayati Raj institutions and other local self-government agencies.
Unit V: Resource Transfer Mechanism in India
Rationale for resource transfers- Centrally biased constitution of India, Mechanism of resource transfers,
Planning and Finance Commissions, Abrogation of Planning Commission- Plan non plan conundrum;
NITI Aayog and its structure, NITI verses Planning Commission.
Decentralisation initiatives of 1992 and Financing of local bodies. Tenth Finance Commission and Local
bodies, Fourteenth FC and third tier governments.
References:
1. AmareshBagchi, (2005), (ed), Readings in Public Finance, OUP India.
2. Machiraju, M. R. 1999, Indian Financial System.Vikas Publishing House, New Delhi.
3. SudiptoMundle: Public Finance policy issue for India, OUP.
4. Mundel, S. (1999), Public Finance Policy - Issues for India, Oxford University Press N. V.P.
Gandhi, Some Aspects of India’s tax structure.
5. Government of India, Ministry of Finance, Finance Commission Report.
6. Government of India, Economics Survey.
7. D.N. Dwivedi, (ed.) Readings in Indian Public Finance.
8. B. Mishra, Economic of Public Finance.
9. Chelliah, R.J. Towards Sustainable Growth: Essays in Fiscal and Financial Sector Reforms in
India.
10. Robin.W.Boadway, Public Sector Economics.
11. Divedi.D.N: Readings in Public Finance.
12. Datt, R. &Sundaram, P.K, Indian Economy.
13. P.H.Jackson and C.V.Brown, Public Sector Economics
14. GovindaRao M. and Sen Tapas K. Fiscal Federalism in India: Theory and Practice
END