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PROPOSED COURSE STRUCTURE IN PROCESS
FOR
2017-20
1
SCHOOL OF ECONOMICS & COMMERCE
UNDERGRADUATE COURSE STRUCTURE
UNDER CHOICE BASED CREDIT SYSTEM
SEMESTER I
SUB TOTAL 22
SEMESTER II
SUB TOTAL 24
SEMESTER III
2
S CONTACT HOURS PER
L. TYPE OF COURSE WEEK
N COURSE CODE TITLE OF THE COURSE REMARKS
o. L T P C
CC CEC32101 MICROECONOMICS 5 1 0 6
CC CEC32103 INDIAN ECONOMY SINCE INDEPENDENCE 5 1 0 6
CC CEC32105 MATHEMATICAL ECONOMICS 4 0 2 6
PRINCIPLES OF HUMAN RESOURCE
SEC MBA32121
MANAGEMENT 2 0 0 2
GE GENERIC ELECTIVE III 5 1 0 6
OE ELECTIVE School of E& T/Science 5 1 0 6 Optional
SUB TOTAL
26
SEMESTER IV
S
CONTACT HOURS PER
L. TYPE OF COURSE WEEK
N COURSE CODE TITLE OF THE COURSE REMARKS
o. L T P C
CC CEC32102 MACROECONOMICS 5 1 0 6
CC CEC32104 DEVELOPMENT ECONOMICS 5 1 0 6
CC CEC32106 STATISTICAL METHODS 4 0 2 6
SEC BUSINESS REGULATORY FRAMEWORK 2 1 0 2
GE GENERIC ELECTIVE IV 5 1 0 6
ELECTIVE School of Management/Law/Social
OE
Science 5 1 0 6 Optional
SUMMER INTERNSHIP One Month Audit, 2
SUB TOTAL
28
SEMESTER V
S CONTACT HOURS PER
L. TYPE OF COURSE WEEK
N COURSE CODE TITLE OF THE COURSE REMARKS
L T P C
O.
3
S CONTACT HOURS PER
L. TYPE OF COURSE WEEK
N COURSE CODE TITLE OF THE COURSE REMARKS
o. L T P C
ABBREVIATIONS:
CC : Core Course
AECC: Ability Enhancement Compulsory Course
AEEC: Ability Enhancement ElectiveCourse
SEC : Skill Enhancement Course
GE : Generic Elective Course
DSE : Discipline Specific Elective Course
OE : Open Elective Course
1. Mathematics
2. Statistics
3. Political Science
4
4. Sociology
5. History
6. Psychology
1. Introductory Microeconomics
2. Introductory Macroeconomics
4. Development Economics
5
FIRST YEAR
Semester I
6
INTRODUCTORY MICROECONOMICS
[CEC31101: CC/Credit-6]
This paper will introduce students with subject matter of Microeconomics around economic
agents. Broadly the paper discusses the behaviour of the consumers at the demand side of the
economy, the decision making process by the producers at the supply side of the economy in
terms of theories of production and cost structures. How the consumers and producers in a
simple framework of competitive market interact with each other will be taught under Market.
The simple most market structure being the Perfectly Competitive Market will be elaborated in
details to lay the foundation of allied theories of different markets. The paper also explores how
institutional interventions influence the decision making process of economic agents in an
economic system. This course is designed to build strong foundation in undergraduate students
of Economics as a pre-requisite to allied papers to be taught in consecutive semesters. The
students will learn to apply their mind in assessing rational decision making processes of
different economic agents and their interaction at the end of the semester.
Concept of Utility - Cardinal and ordinal utility - Consumer Preferences Preference ordering
Revealed preference approach;
Basic assumptions about preferences - Indifference Curve - Indifference Maps - Marginal Rate
of Substitution - Shape of Indifference curves - Perfect substitutes - perfect complements -
Budget Constraint - Budget Line - Effects of changes in income and prices - Consumer choice -
condition for optimal choice - Individual Demand - Income Effect and Substitution effect
Slutsky Equation - From individual to market demand Price consumption Curve Engel
Curve - Elasticity of Demand Consumer Surplus
Production Decision of a firm - Production function - short run versus long run production -
Production with one variable input - TP, AP, MP - Law of diminishing marginal return -
7
Production with two variable inputs - Input flexibility - Input substitution Isoquant curve -
MRTS - Returns to scale;
Unit 4: Cost of Production
Different types of costs - opportunity cost, sunk cost - fixed cost, variable cost - Costs in the SR
production, TC, AC, MC, Cost curves - Costs in the LR production, LR cost curves, relation
between SR and LR cost curves - Input choices, Iso-cost line, Change in technology and change
in input prices - Optimal choice of inputs, Expansion path - Economies of Scope, Economics of
Scale, Learning Curve;
Gains and Loss from Govt. Policies Consumer and Producer surplus Market Efficiency
Price Ceiling and floor Price support system Production quotas Import Quota and Tariff
Taxes and subsidy: Impacts;
Text:
1. Microeconomics. R. S. Pindyck, D.L. Rubinfeld, and P.L. Mehta. Pearson, India,
7thedition, 2013
References:
2. Microeconomics: Theory and Applications. G.S. Maddala, and E. Miller. McGraw Hill
Education (India) Private Limited; 3rd edition, 2004.
3. Modern Microeconomics. Koutsoyiannis. Palgrave Macmillan; 2nd edition, 2008.
4. Principles of Microeconomics. D. Salvatore. Oxford University Press (5th or later
edition).
5. Microeconomic Theory. Ferguson, and Gould. All India Traveler Book Sellers (6th
edition).
Intermediate Microeconomics: A Modern Approach. H.R. Varian. East West Press; 8th edition
(2010).
8
BASIC MATHEMATICS
[CEC31103: CC/Credit-6]
Representation, Evaluation, Logic and proof techniques; Solving simple equations, Inequality
signs. Basics of Trigonometry.
Definition of a set, Different types of Set, Operations on sets; Concepts of range, domain and
mapping; Nested sets.
Number system, Real Line, The Plane, Cartesian product; Concept of Euclidean Space. Points
and lines in Euclidean space.
Graphs- line, curves, slopes, tangent; Functions- Elementary types of functions: quadratic,
polynomial, power, exponential, logarithmic; Sequences and series: convergence, algebraic
properties and applications; Continuous functions: characterizations, properties with respect to
various operations and applications; Differentiable functions; Homogeneous functions;
Homothetic functions.
Graphs- Graphs of linear functions, non-linear functions, Geometric properties of functions:
convex functions, concave function.
9
Simultaneous linear equation, solving simultaneous linear equations, Graphical solution,
Equating to same variable-Substitution, Row operations. Solving in case of more than two
unknowns.
Application: Static Equilibrium Analysis.
The differential calculus, Rules for differentiation, Differentiability and Continuity, Using first
derivative for graphs, Second derivative and convexity. Derivatives of different functional forms.
Partial differentiation, Second-order partial derivatives, Total differentials and total derivatives.
Applications: Marginal revenue and total revenue, Marginal cost and total cost, Point elasticity
of demand, Tax yield, The Keynesian multiplier.
Concept of integral calculus. Areas under curves; indefinite integrals; the definite integral.
Applications: Consumer Surplus, Producer Surplus, from marginal function to a total function,
Investment to capital formation.
Readings:
1. Simon, Carl. P., Blume, Lawrence. (2010). Mathematics for Economists, Norton.
2. Rosser, Mike (2003), Mathematics for Economists, Second Edition, Routledge.
3. Chiang, Alpha and Kevin Wainwright (2013), Fundamental Methods of Mathematical
Economics, Fourth Edition, McGraw-Hill
4. Sydseater, K., Hammod, P. (2002). Mathematics for Economics Analysis. Pearson Education
India.
10
PRINCIPLES OF ACCOUNTING
[########: AEEC/Credit-2]
COURSE DESCRIPTION
Economics as a discipline does not deal with any free commodity be it output or input. Every
output or input must command a price explicit or implicit, in order to be studied in the
discipline of Economics and as such Economics has usually a quantitative dimension with
regard to transactions inside and outside the markets. Wherever transactions take place, there
are two sides income (credit) and outgo (debit). Hence In the fields of business as well as
administration knowledge of accounting is imperative side by side with the knowledge of
economics like preparation of budget statement in public finance and preparation of balance
of payment statement in international trade. This is the first course in accounting. The course
begins with the definition of accounting, types of accounting, basic concepts of accounting
and covers basic accounting topics such as accounting cycle; accounts hierarchy (account
classes, account groups, accounts, subsidiary accounts), journal entries related to sales,
purchases, collections, payments, and expenses. Posting, accounting of depreciation,
accounting of current assets and current liabilities; trial balance, preparation of financial
statements, and closing/opening entries are also included in this course.
OBJECTIVES
CONTENTS
Meaning and Scope of Accounting; Accounting Concepts; Accounting, Principles, Conventions and
Standards Concepts, Objectives, Benefits; Accounting Policies; Accounting as a Measurement
Discipline Valuation Principles, Accounting Estimates
11
Unit 2: Accounting Process
Documents & Books of Accounts: Invoice, Vouchers, Debit & Credit Notes, Day books, Journals,
Ledgers and Trial Balance Capital and Revenue: Expenditures and Receipts; Current Assets and
Current Liabilities, Contingent Assets and Contingent Liabilities Rectification of Errors
Preparation of Profit & Loss Account, Balance Sheet, Cash Flow Statement, Projection of Cash Flow,
Dynamic Balancesheet
References
1. Fundamentals of Accounting and Auditing, The Institute of Company Secretaries India
12
FIRST YEAR
Semester II
13
INTRODUCTORY MACROECONOMICS
[CEC31102: CC/Credit-6]
The course is in continuation of Introductory macro economics offered in semester-II to
B.A(Hons) Economics students. After completion of the course students will be able to apply the
tools of aggregate demand and supply to analyze implications of different macroeconomic
policies as well as standard macroeconomic debates on inflation and unemployment.
Derivation of the Aggregate Demand curve using IS-LM curve; Shifts of the AD curve;
Derivation of the AS schedule from the Labour market equilibrium; Analysis of the fiscal and
monetary policy using AD-AS schedule; Keynes vs Classics using AD-AS framework.
Unit 2: Expectation
Role of expectation; Adaptive Expectation; Rational Expectation; Lucas Critique and policy
ineffectiveness.
The short-run trade -off between inflation and unemployment; Phillips Curve; Shifts in the
Phillips curve;; Natural Rate of unemployment ;The Phillips curve and the Aggregate supply
curve; The debate
Suggested Readings;
14
edition, 1996.
BASIC STATISTICS
[CEC31104: CC/Credit-6]
The main objective of this course is to train the students to use the techniques of statistical
analysis, which are commonly applied to understand and analyze economic problems. The paper
deals with simple tools and techniques, which will help a student in data collection, presentation,
and to understand the basic descriptive properties of the data. This paper introduces the concept
of bivariate data and their application in real life. A major emphasis is given on the fundamental
knowledge of probability where the true essence of statistics lies.
Basic concepts: Population, Sample, Parameter; Techniques of data collection- Sampling vs.
Population, primary and secondary data. Classification and presentation of data. Graphic and
diagrammatic representation of data. Frequency distribution and its diagrammatic representation.
Arithmetic Mean, Median and Mode for grouped and ungrouped data, Comparison of Mean,
Median and Mode, Geometric and Harmonic Mean, Composite Mean.
Application: Index Numbers: Index number as weighted averages, Price and quantity index
numbers, Cost of Living Index Number, Wholesale Price Index, Stock market indices.
Range, Mean Deviation, Quartile Deviation and Standard Deviation, Measures of Relative
Dispersion, Curve of Concentration
15
Definition of bivariate data, scatter diagram, bivariate frequency distribution-Simple and
multiple correlation and regression. Covariance as a measure of association; Coefficient of
Correlation; Rank correlation; Difference between correlation and regression approach.
Elements of Probability Theory: Sample Space, Probability Space, Events, Classical Definition
of Probability. The Addition Rule, the Multiplication Rule, Theorems of Total Probability,
Conditional Probability and Statistical Independence. Limitations of the Classical definition,
Frequency definition, Axiomatic Approach, Bayes Rule.
Readings:
1. Lind, Marchal, Wathen. Basic Statistics for Business and Economics, McGraw Hill Education;
Seventh edition (2013).
2. Goon, Gupta, Dasgupta Fundamentals of Statistics, Vol I, World Press Private limited
(2016).
3. Gupta, S. C., Kapoor, V. K. Fundamentals of Mathematical Statistics. Sultan Chand & Sons
(2014).
16
FUNDAMENTALS OF FINANCE
[########: AEEC/Credit-2]
This course starts with the concept of time value of money, continues with the risk literature and ends at
financing decisions by a firm. As a store of value money transmits the value to the assets and that value
accretes through trading and revenue earning. Depending on the nature and issuer of the asset the speed
and quantum of accretion varies. This is the risk element an asset is fraught with. The concepts of risk and
return in finance go hand in hand because higher risk means discounting with a higher rate of return.
Finance literature revolves around the concept of time value of money that is based on present value or
compound value of an asset or liability on case to case basis. Consumption and investment are the two
most important components of national income. Finance comes to the picture when a consumer buys a
product on credit, not on cash, that attracts interest and other charges which has future implications unlike
cash purchase where the transactions end then and there. The credit purchase is financed by a third party
who could be different than the producer of the goods purchased. All investments have underlying
financial principles because investments aim at future earnings.
Objectives
To learn
17
Unit 3: Options
18
SUMMER SCHOOL / INTERNSHIP
[CEC31606: CC/Credit-6]
Summer internship will be of one month duration, during the summer vacation after the end
semester exams of Semester IV. The students will be given a list of internship opportunities with
NGOs, civil society organisations, think tanks, governmental agencies and private companies. At
the successful completion of summer internship, students have to submit a detailed internship
report. Students will receive certificates both from the organisation and the University.
19
SECOND YEAR
Semester III
20
MICROECONOMICS
[CEC31102: CC/Credit-6]
Course Objective: This paper will introduce students with more complicated issues of
Microeconomics around different market structures under imperfect competition like monopoly
and monopolistic competition. Different types of pricing strategies and market power adopted by
of the producers. This paper also gives brief idea about other imperfectly competitive markets
under oligopoly. The theoretical concepts of theories of distribution will be covered. In addition
the conflicts of efficiency versus equity along with general idea of welfare are also discussed.
Finally the students will be introduced to major problems associated with market failure.
Monopoly: Average and Marginal Revenue Output decisions rule of thumb pricing shifts in
demand effect of tax; Monopoly power: measures, sources; Social cost of monopoly power:
rent seeking behaviour, price regulation; Natural Monopoly; Monopsony: sources of monopsony
power, comparison with monopoly; Bilateral monopoly;
Pricing with Market Power: First, Second and Third degree Price discrimination; Intertemporal
Price discrimination Peak Load Pricing Two part Tariff Bundling;
Oligopoly: Equilibrium The Cournot Model - Stackelberg Model - Pricing under homogenous
products: Bertrand Model - Pricing under differentiated products;
The Payoff Matrix of a Game - Nash Equilibrium - Competition versus Collusion: Prisoners
Dilemma price Rigidity and Kinked Demand Curve Model - Price Leadership Cartels, Cartel
pricing;
Product Exhaustion theorem; Land Theory of Economic Rent (genesis in a rent, rent in a
market economy); Theory of Profit - Theory interest wage rate backward bending labour
supply curve;
21
Unit 6: Market Failure
Markets with asymmetry of information Uncertainty and Market Failure Market Signalling
Moral Hazard Principal-Agent Problem Efficiency wage theory;
Externalities: Positive and Negative Externality and property rights - Public goods Public
Goods and Market failure; private return and public return, private and public cost examples in
public expenditure in education;
Text:
References:
2. Microeconomics: Theory and Applications. G.S. Maddala, and E. Miller. McGraw Hill
Education (India) Private Limited; 3rd edition, 2004.
3. Modern Microeconomics. Koutsoyiannis. Palgrave Macmillan; 2nd edition, 2008.
4. Principles of Microeconomics. D. Salvatore. Oxford University Press (5th or later
edition).
5. Microeconomic Theory. Ferguson, and Gould. All India Traveler Book Sellers (6th
edition).
6. Intermediate Microeconomics: A Modern Approach. H.R. Varian. East West Press; 8th
edition (2010).
22
INDIAN ECONOMY
[CEC32103: CC/Credit-6]
This course will be relevant to the students in terms of the overall Indian economic experience
since independence. The basic trajectory of Indian economic (capitalist) development is to be
covered with special emphasis on the shift from a mixed economy towards market orientation.
Four economic spheres - production, distribution, trade and finance are to be followed to bring
out the major changes in the Indian economy.
The background and Structure of Indian Planning, Structural Constraints and Indias
development strategy Choice of industrialization strategies public vs. private sector, capital
goods versus consumer goods Mahalanobis Plan Model (basic argument), import substitution
vs. export promotion strategy; Agriculture-industry relationship demand side and supply side
linkages agriculture-industry terms of trade - food crisis of the 1960s and imperatives for
agricultural growth, genesis of green revolution fourth plan (basic argument); Poverty
Eradication, foreign aid and self-reliance Fifth Five Year Plan Model (basic argument);
Regional inequality in India causes; policies for balanced regional development; Planning
deficiencies and its abandonment 7th five year plan and Indian economic crisis
Readings on India:
1. Contemporary Issues of Indian Economy. DhirendraNathKonar. Akansha Publishing
House; 1st edition (2009)
2. Indian Economy: Performance and Policies. Uma Kapila. Academic Foundation; 15th
Revised edition (2015)
3. The Indian Economy: Problems and Prospects. Bimal Jalan (ed.); Penguin
24
MATHEMATICAL ECONOMICS
[CEC32105: CC/Credit-6]
This course intends to equip the students with mathematical analysis of the economic problem
they are learning in fundamental courses like microeconomics and macroeconomics. The basic
mathematics course in first year has laid down the ground for this course where a higher level of
mathematics will be taught and students will learn to apply it with real life data. This course is a
mapping of mathematical tools into economic theories, where the students will be dealing with
more complex theorems and their formulation and interpretation. The concept of optimization, in
unconstrained and constrained set up, is the core of the course. Moreover, different economic
models in discrete and continuous time frame will be taught where the concept of difference
equation and differential equation has been applied.
The Lagrangean technique for optimization: constrained optimization with two variables, first
order condition, second-order conditions; Constrained optimization with more than two
variables.
Discrete time, Differences, and Difference Equation; Solving a first order difference equation;.
Application: The Cobweb Model, Dynamic stability of equilibrium.
25
Unit 5: First Order Differential Equation: Continuous Time
Continuous time, Differential Equations. First order differential equation- with constant
coefficient, with variable coefficient. Solving linear differential equation. Application: Market
Model, Time path, Dynamic stability of equilibrium.
Readings:
1. Simon, Carl. P., Blume, Lawrence. (2010). Mathematics for Economists, Norton.
4. Sydseater, K., Hammod, P. (2002). Mathematics for Economics Analysis. Pearson Education
India.
26
SECOND YEAR
Semester IV
27
MACROECONOMICS
[CEC32102: CC/Credit-6]
This course is in continuation of Introductory Macroeconomics . Students are already aware of
the aggregate consumption function and investment function. In this course they will be
introduced with the micro foundation of these macro aggregates. A brief introduction with open
economy will also be used along with the long run dimension of economic growth.
28
5. Charles I Jones, Introduction to economic growth , second edition, Viva-Norton Student
Edition
DEVELOPMENT ECONOMICS
[CEC31104: CC/Credit-6]
This course aims at a basic introduction to the ideas of growth and development. A chronological
development of the measures of development and the major theoretical works is to be attempted
to make it clear to the students that development is a multidimensional process and need to be
addressed accordingly. Finally, the recent advances in the direction of free trade as a vehicle of
development are to be discussed.
Classical growth theory, Theories of transition Clark and Fisher on change in sectoral share,
Rostows stages of growth; Kuznetss characteristics of Growth; Industrialisation, Growth and
Kaldors growth laws; production-function approach - Harrod-Domar growth model, Neo-
classical growth theory, endogenous growth theories
The Neocolonial Dependence Model, the False paradigm model, the dualistic-development
thesis, the Marxian legacy
29
Concepts of Population: definitions of fertility, mortality, birth rates, death rates, fertility rate,
life expectancy, infant mortality rate, youth dependency ratio; Theory of demographic transition.
Poverty, relative and absolute deprivation with respect to income, Poverty line, Poverty measures
Head count ratio, Poverty gap ratio, Income gap ratio, Human Poverty Index.
Readings:
1. Growth and Development. A.P. Thirlwall. Palgrave McMillan; 8th edition (2010)
2. Development Economics. Debraj Ray . Oxford University Press; 1st edition (1999)
3. Economic Development. M.P. Todaro, and S.C. Smith. Pearson India; 10th edition
(2011)
5. Leading Issues in Economic Development. G.M. Meier and J.E. Rauch.. Oxford
University Press (2005)
30
STATISTICAL METHODS
[CEC32106: CC/Credit-6]
This course aims to build up the advanced knowledge on the basic statistics taught in the first
year. Here students will learn more tools and techniques which are useful for analyzing
economic issues in real life. Concept of random variable and their probability distribution are the
main focus of the paper. Students will learn the concept of statistical independence and joint
probability distribution in case of bivariate data. The difference between population and sample,
why sampling is required for any study, has to be understood clearly before one delves into
statistical analysis. In this paper students will get an idea of sampling theory and techniques and
also learn sampling distribution and its different forms.
Definition of random variable: discrete and continuous random variable, probability mass
function and probability density functions, Expectation and Variance of random variables,
Univariate Probability Distributions: Binomial, Poisson, Normal and Standard Normal
Distribution. Skewness and Kurtosis. Moment Generating Functions.
Concept of Bivariate data; Joint Probability Distribution: Statistical Independence, Marginal and
Conditional Distribution. Descriptive statistics of the distribution.
Population and Sample, Parameter and Statistic, Random Sampling: Methods of Drawing
Random samples (with and without replacement), Circular systematic sampling. Basic Concepts
of different methods of sampling Stratified Sampling, clustered sampling, multistage sampling,
purposive sampling
31
Sampling Distribution, Standard Error, Sampling Distributions associated with Normal
Population, Law of Large number. Derived Distributions: Chi-Square Distribution, Students t
Distribution, F Distribution, Fishers t distribution, concept of degrees of freedom.
Elementary ideas of point estimation- population mean-sample mean, small sample test and t-
distribution, Chi-Square Distribution and non-parametric test.
Readings:
1. Jay L. Devore, Probability and Statistics; Seventh Edition; Cengage Learning, 2010.
2. Goon, Gupta, Dasgupta Fundamentals of Statistics, Vol I, World Press Private limited
(2016).
3. Gupta, S. C., Kapoor, V. K. Fundamentals of Mathematical Statistics. Sultan Chand & Sons
(2014).
32
THIRD YEAR
Semester V
33
COMPARATIVE DEVELOPMENT EXPERIENCE
[CEC33101: CC/Credit-6]
Capitalism, when compared with the other previous modes of production in the history of
mankind, is a comparatively recent phenomenon (originality in Western Europe since the 14th
century). It is marked by a continuous urge towards greater marketable production and profit
motive, backed by technological advancements and specialized division of labour. In this paper,
we trace the development of capitalism in the West and the challenges that emerged in the post
World War II scenario, especially in relation to the third world economies (the developing
countries), both theoretically and practically. The shifts in the capitalist discourse in the recent
neo-liberal regime are finally attempted here for a better understanding of globalization.
Mercantilism, physiocrats, Adam Smith and the labour theory of value, colonialism, imperialism
Capitalism vs socialism, The Great Debate in Soviet Union on the assignment of priority on
development of heavy industry in the process of planned economic development;
The Great Depression of the 1930s and recovery Experiences of USA and Great Britain.
34
Unit 4: Development and underdevelopment as historical processes
Neo liberalism, Washington consensus, North-South Divide, Recasting of IMF and World Bank,
General Agreements on Tariff and Trade (GATT) and the Dunkel Draft controversy-World
Trade Organization (WTO), Economic Integration
Readings:
35
BASIC ECONOMETRICS
[CEC33103: CC/Credit-6]
Econometrics is concerned with the application of statistical theory to the analysis of economic
data and the estimation of economic relationships. This course intends to expose students to the
statistical techniques that economists use for estimating, testing, and forecasting economic
relationships. In this paper students will be introduced with what Econometrics is about. The
basic concept of linear regression model under classical assumptions, statistical inference tools
and techniques in a regressed model will be taught in a lucid approach. Moreover, the
consequences of violations of classical assumptions will also be taught. This course covers a
range of applications through statistical software.
Testing of Hypothesis: Confidence Intervals, p-values, Type-I and Type-II Errors, Simple
applications of tests for the Mean and Variance of a Univariate Normal Population.
Stochastic and non-stochastic relationships; The concept of regression, Two Variable Case,
Specification of the relationship; Estimation- Method of Least Squares, Assumptions; Gauss-
Markov Theorem; Properties of Least Squares estimates; BLUE.
Statistical Inference in simple linear regression model- Confidence Intervals for parameters,
Testing of Hypothesis- Testing of regression coefficient; Test for regression as a whole,
Coefficient of determination, Goodness of Fit, F-test, Analysis of Variance.
36
Problems of Heteroscedasticity; Auto correlation (first order) their consequences, tests and
remedies.
Estimation of demand and supply functions, production and cost functions and consumption
function and investment function.
Readings:
37
PUBLIC FINANCE
[CEC33105: DSE/Credit: 6]
Course Objective: Public finance is the study of government policy from the points of view of
economic efficiency and equity. Inherently, this study involves a formal analysis of government
taxation and expenditures. The subject encompasses a host of topics including public goods,
market failures and externalities. The paper deals with the nature of government intervention and
its implications for allocation, distribution and stabilization. The paper is dealing with the theory
of public economics on one hand and the other with the public finances.
Detailed Syllabus:
Government budget and its structure Receipts and expenditure; Concepts of current and capital
account, balanced, surplus, and deficit budgets;
Federal Finance: Different layers of the government; Inter governmental transferhorizontal vs.
vertical equity;
Concept of tax, Optimal taxation; types of tax direct tax and indirect tax;
Indirect tax principles of commodity taxation; Demand elasticity and supply elasticity;
Efficiency in tax collection; VAT, GST, Subsidy and Transfer Policy;
Non-tax revenue resources - Earnings from public undertakings Earnings from business of the
Govt. public services;
Concept of public goodscharacteristics of public goods; national vs. local public goods;
determination of provision of public good;
Externality, concept of social versus private costs and benefits; merit goods, club goods;
Provision versus production of public goods;
38
Market failure and public provision;
Concept of budget deficit vs. fiscal deficit; Functional classification of budget; Concept of
Revenue Deficit; Instruments for stabilization; Public Debt - internal and external burden of
public debt; Elementary aspects of Public finance in an open economy;
Texts:
1. Musgrave and Musgrave: Public Finance in Theory and Practice (Fifth Edition).
2. Dorbusch, R.: Open Economy Macroeconomics.
3. Gruber J. (2011): Public Finance and Public. Worth publishers
39
INDUSTRIAL ECONOMICS
[CEC33107: DSE/Credit-6]
This course along with labour economics and industrial organizations will provide a thorough
understanding to the students regarding major developments in Industrial economics and its
allied issues. This course is a basic introduction to the Industrial Economics in terms how
structures of a industrial set up affects its functioning. Along with that the application of research
and development and the importance of location will be analyzed.
Mergers, acquisition and diversification; Foreign capital; MNCs and Transfer pricing; Indian
experience
Research and Development and international patent laws; Product and process patent; Diffusion
of technology;
Suggested Readings:
2. F.M. Scherer: Industrial Market Structure and Economic Performance. 2 edition edition.
40
ECONOMICS OF HEALTH AND EDUCATION
[CEC33109: DSE/ Credit 6]
The importance of education and health in improving well-being is reflected in their inclusion
among the Millennium Development Goals adopted by the United Nations member states, which
include among other goals, achieving universal primary education, reducing child mortality,
improving maternal health and combating diseases. This course provides a microeconomic
framework to analyse, among other things, individual choice in the demand for health and
education, government intervention and aspects of inequity and discrimination in both sectors. It
also gives an overview of health and education in India.
Health Economics: A new subject? - Health and health care; Market for health care and its
uniqueness: Introducing externality and uncertainty; Demand for health care: Can usual
neoclassical framework do?
Morbidity & Mortality; Disability Adjusted Life Years; Epidemiological Transition Theory
Unit 3: Providers
Health care reform and its experience; Health care finance; Public private partnerships;
Sanitation policy;
41
Direct expenditure on education; measuring returns on education on productivity; Market failure
and govt. expenditure on higher education;
References:
42
THIRD YEAR
Semester VI
43
MONEY BANKING AND FINANCIAL MARKETS
[CEC33102: CC/ Credit 6]
This course demonstrates the role of banks in creation and circulation of money in the forms of assets in
the real sector as well as financial sector. The banks create money in the lending process through the
multiplier method. This money crystallizes in the forms of fixed capital and consumer durables, which
remain hypothecated with the banks during the life of the loan. This loan in turn contributes to the
aggregate demand in the form of investment products and thus augments the economy's output. This
output generates income in the hand of households, corporates and the governrnent, a part of which is
saved and channelized to the financial sector towards acquisition of financial securities. This course starts
with introduction to the functions of the banks with special reference to lending, continues with the
description of the financial markets and their work profiles and ends with relevant regulations on Banks
and Financial Markets that affect determination of interest and income.
Objectives:
To learn
44
The Role of Yield in Income Determination
References
Frederic S Mishkin, The Economics of Money, Banking and Financial Markets, 7th Edition, Pearson
Addison Wesley
Glyn Davies, A History of Money, University of Wales Press, Cardiff, 1st Edcition
Financial Institutions and Markets, Anthony Saunders and Mercia Cornett, MgGraw-Hill, 6th Edition
45
OPEN ECONOMY MACRO AND ITS GOVERNANCE
[CEC33104: CC/ Credit 6]
This course is designed to analyze the aggregate macroeconomic issues of price, output, and rate
of interest in the context of an open economy. The course is also designed for the undergraduate
students to get equipped with policy issues especially under open economy framework. The
course also provides theoretical insights into the issue of governance under open economy
framework.
Macroeconomic identities under open economy; multipliers in an open economy; foreign trade
multipliers; current account; the government sector.
Unit 2: Macro economy in a small open economy with money; policy analysis
Interest rate and prices in a open economy framework; Commodity and money market
equilibrium; money, exchange rates and prices; Fiscal and monetary policy under open economy
framework; fixed and flexible exchange rate; perfect and imperfect capital mobility; interest rate
parity; Mundell-Flemming model under fixed and flexible exchange rate; Impossible trinity.
Unit 3: Balance of Payment management under fixed and flexible exchange rate
Balance of payment adjustment under fixed exchange rate regime; the role of price in an open
economy; automatic adjustment; exchange rate management
Balance of payment adjustment under flexible exchange rate; Relative price and the trade
balance; the J-Curve, Monetary approach to balance of payment.
Government budget deficit and its impact on open economy; Trade-off in deficit financing and
exchange rate management; Trade policy; political instability and capital flight;
Suggested Readings:
46
3. Macro Economics, R Dornbusch, S Fischer ; Mc Graw Hill Education(Sixth Edition);
2005.
4. Dornbusch, Rudiger, Open Economy Macroeconomics (New York: Basic Books, 1980).
INTERNATIONAL TRADE
[CEC33106: DSE/ Credit 6]
This course is based on the international trade theory derived from the price theory in general. It
begins with the basics of price theory to advance to the different standard trade theories that
evolved over time. Once this is accomplished, the course then helps the students move to the
applications and techniques essential in the field of international trade policy. Finally, an
introduction to international finance is to be provided to the students, preparing them for the
contemporary debates from the perspective of the third world countries. International Finance
emerges from transactions in the capital account, which get place in multi-currency
balancesheets and income statements. In this context behaviour of exchange rates, risks in
fluctuations of the exchange rates
Objectives
(i) To learn basic concepts and theories of trade such as to be able to appear in competitive
examination like Indian Economic Service and Civil Service.
(ii) To prepare for higher studies in Economics with specialization in trade
(iii) To join the foreign treasury department of some bank or financial institution.
(iv) To start an export business or foreign currency brokerage/conversion business.
Detailed Syllabus:
Introduction, Mercantilists views on trade, the labour theory of value, Adam Smiths absolute
advantage, Ricardos comparative advantage, the opportunity cost theory, gains from trade
(constant costs)
The Heckscher- Ohlin theory, Assumptions, factor intensity, factor abundance, the production
frontier, factor endowments, factor- price equalization theorem, New trade theories, imperfect
competition, dynamic technological changes
47
Unit 4: International Finance
Balance of payments, foreign exchange market, foreign exchange rate, spot and forward rates,
purchasing power parity theory, fixed exchange rate system vs. flexible exchange rate system,
managed floating, adjustments, stability, Marshal-Lerner condition
The gold standard, the interwar experience, the Bretton woods System, its collapse, the present
International Monetary System
Demand for and Supply of Currency - Exchange Rate Equilibrium - Determinants of Exchange
Rate - Forwards, Futures and Options in Currencies - Arbitrage - Interest Rate Parity
Readings:
o Obstfeld, (8th Economics:
International Ed.), Pearson
Paul
Education
R. Krugman, Maurice
o International Economics: Dominick Salvatore (8th Ed.),
Wiley India
o International Financial Management, Jeff Madura, 12th
Edition, Cengage Learning, Connecticut
o Open Economy Macroeconomics: R Dornbusch, (International Students
o Edition), Basic Books, New York.
o World Trades and Payments: Caves, Frankel, Jones (9th Ed.), Pearson Education.
o Sodersten, B. and Reed G.(1994) : International
Economics, Macmillan, London, 3rd edition
o Marjit, S. (2008): International Trade and Economic
Development: Essays in Theory and Policy,Oxford
University Press, New Delhi.
o World Trades and Payments: Caves, Frankel, Jones (9th
Ed.), Pearson Education
o International Trade Theory and Policy:
M.Chacholiades, McGraw Hill Book Company (1978)
48
LABOUR ECONOMICS
[CEC33108: DSE/ Credit 6]
This course is designed to provide the theoretical background of labour Economics with special
emphasis on trade union. The course is aimed as complementary to the undergraduate students
studying industrial economics. The course will highlights major theoretical models existing in
labour economics and will highlights theoretical explanations of unemployment.
Basic theories of Labour Demand; Labour Supply: A household choice; Empirical Estimation of
the labour demand schedule; Nominal Wage rigidity;
Some stylized facts; Some standard Macroeconomic models for the labour markets; Real wage-
rigidities; Summary
Basic Trade Unions Model; Monopoly Trade Union Model, Right to Manage Model; Efficiency
Bargaining Model; Hysteria and persistence of Unemployment.
Unit-4: Unemployment
Insider -Outsider model; Efficiency wage model; Search Model; Labour market institutional
models of Unemployment.
References:
1. Ben J Heijdra and F Van der Ploeg ,The Foundations of Modern Macroeconomics by,
Oxford University Press.
3. Cahuc, Pierre, and Andre Zylberberg. Labor Economics. Cambridge, Mass. and London:
MIT Press, 2004.
49
5. Deakin Simon (2014), Labour Law and Inclusive Development,Centre for Business
Research, University of Cambridge ,Working Paper No. 458.
50
ENVIRONMENTAL ECONOMICS
[CEC33110: DSE/ Credit 6]
This course is designed to introduce under-graduate students to the economic issues around
natural resources as well as environmental problems from the perspective of economics. Natural
resources being scarce lead to core economic questions regarding the optimal rate of extraction.
On the other hand, how discovery of new resource bases change the pricing and usage of one
resource comes under the domain of resource economics. Designing economic instruments for
regulation of environmental problems as well valuation of environmental services are major two
focus of this course. In addition to that, some global environmental issues along with their
macroeconomic policy impact will be addressed in this course.
Renewable resources Problem of uncertainty Case study of Forestry: Single versus Multiple
use Forest Fishery: The concept of Maximum Sustainable Yield (MSY) - Economic Decision
regarding optimal rate of Extraction;
Concept of Externalities and Public Bad; Concepts of Rivalry and Excludability; Environmental
Pollution as a Public Bad; Externality (Pigou), Property Rights (Coase), Optimal Pollution;
Pollution Control: Alternative Market Based Instruments Pure policies (Emission Fees,
Standard setting, and Tradable Pollution Permits), Hybrid instruments (two-part tariff),
Measuring values, benefits and costs overview; total value use and non-use values of goods;
51
Total Economic Valuation; Valuation Methods: Stated Preference Approach, Revealed
Preference Approach (intuitive discussion on different valuation methods)
Environment and Global Climate Change; Kiyoto Protocol and Issues around Carbon trading;
Ecological Footprints; International Environmental Policies; Environmental Performance Index:
choice of indicators; Environmental Performance Index: Comparison across Developing and
Developed World;
References:
1. Charles Kolstad, Intermediate Environmental Economics, Oxford University Press, 2nd
edition, 2010
2. Costanza, et.al. (1998): An Introduction to Ecological Economics.
3. Bhattacharyya, R.N. (2001): Environmental Economics: Indian Perspective, OUP
4. Hanley, Shogren & White (1997): Environmental Economics, McMillan.
5. James, Mishra & Murty (1999) Economics of Water Pollution: The Indian Experience.OUP
6. Kadekodi , G. (2004): Environmental Economics in Practice: Case Studies from India, OUP
7. Environmental Performance Index, http://epi.yale.edu/ , Yale University;
8. United Nations Framework on Climate Change, http://newsroom.unfccc.int/
Kiyoto Protocol http://www.kyotoprotocol.com/
52
PROJECT
[CEC33412: 6 Credits]
This course plan aims to provide exposure to the fundamentals of project writing techniques and
methods. Students are expected to learn critical reviewing of literatures in the area they are
interested in. Writing a short project will enhance their analytical and critical view towards
contemporary issues.
It is intended to enable students with writing guidelines which include the structuring of an
economic problem in reference to existing literature. The search of literature both theoretical
along with empirical evidences will train them into critical thinking. They need to present their
understanding first, later on they need to write a short project. It is expected that the students will
identify one particular research area which they will carry forward in writing dissertation in the
next semester. Identifying the research question in vast academic literature is the requisite of this
course. Students should be able to present their own viewpoint on the topic in the form of a
critique and future research ideas.
The final project report should include an Abstract, Introduction, Literature review, Research
Issue/Question and References. However depending on the type of topic the sections for Project
writing may vary student wise. In due course the students will learn proper referencing of
literature (APA, MLA styles of referencing), formatting styles etc.
53
DETAILED SYLLABI IN PROCESS
FOR
2017-19
1
COURSE STRUCTURE
FOR
2017-19
2
SCHOOL OF ECONOMICS & COMMERCE
POST GRADUATE PROGRAMME STRUCTURE
SEMESTER 4
3
HC CEC52102 INTERNATIONAL FINANCE 3 1 0 4
HC CEC52104 ECONOMICS OF SOCIAL ISSUES 3 1 0 4
SC SOFT CORE (Paper-D) 3 1 0 4
SC SOFT CORE (Paper-E) 3 1 0 4
MDS CEC52718 DISSERTATION - 6 - 6
OE OPEN ELECTIVE 3 1 0 4 OPTIONAL
SUB TOTAL 22
List of Specialization:
This list is amendable subject to availability of faculty resource and university infrastructure.
1. Applied Economics
2. Economics of Public Policy
3. Banking & Finance
List of Soft Core Courses under Each Specialization
Applied Economics Economics of Public Policy Banking & Finance
Pap Paper Name Code Paper Paper Name Code Pap Paper Name Code
er er
SEMESTER III
A Statistical Inference A Economics of CEC52109 A Financial CEC52115
And Estimation Public Health Institutions And
CEC52103
Methods Market
4
ABBREVIATIONS
HC : Hard Core Course SC : Soft Core Course
SEC : Skill Enhancement Course OE : Open Elective Course
INT : Internship
MDS : Masters Dissertation
5
FIRST YEAR
Semester I
6
CEC51101
ADVANCED MICROECONOMICS
[HC: 4 Credits, 60 Contact Hours]
This course aims at a clear understanding of the micro foundations of modern economic theory. Consumption
and production are to be taught based on the principle of self-interest maximization, at the individual level.
Next, the two aspects are to be integrated in a perfectly competitive market framework. Finally, the theorization
is to be produced towards various market imperfections line externalities, asymmetric information and others.
History of utility theory (Shift from Cardinal to Ordinal Approach); Classical demand theory: Preference
relation, their properties, the utility Functions, homothetic preference, utility maximization, indirect utility
functions, Roys Identity, expenditure minimization, Hicksian demand, duality, income Effect, substitution
effect and Slutsky equation; theory of revealed preference: WARP, SARP, compensating and equivalent
variations; intertemporal choice, time preference, utility maximization, discounted value; choice under
uncertainty, expected utility function, attitude towards risk
7
From partial to general equilibrium framework; The basic model: Edgeworth Box analysis of an exchange
economy, equilibrium (Existence, uniqueness, stability), the general structure - Walras Law, Pareto Optimality,
concept of core - Core equivalence theorem; Welfare economics: from Pigou to Pareto, Fundamental Theorems
of Welfare Economics, Equity- efficiency trade-off, Compensation criteria, social welfare function, theory of
second best
Suggested Readings
1. Microeconomic Theory. Andreu Mas-colell, Michael D. Whinston, and Jerry R. Green John. Oxford
University Press India; 1st edition (2012)
2. Microeconomic Analysis. Hal R. Varian. W W Norton & Company; 3rd edition (2010)
3. Microeconomics. H. Gravelle, R. Rees. Pearson India; 3rd edition (2007)
4. Advanced Microeconomic Theory. Geoffrey A. Jehle, Philip J. Reny. Pearson India; 2nd or later edition
5. Microeconomics: Theory and Applications. Anindya Sen. Oxford University Press; 2nd edition (2006)
6. Microeconomic Theory: Basic Principles and Extensions. Walter Nicholson and Christopher Snyder.
Cengage; 11th edition (2014)
7. An Introduction to Game Theory. M. J. Osborne. Oxford University Press India; 1st edition (2012)
8. Game Theory: An Introduction. E. N Barron. Wiley India Pvt. Ltd.; 2009
8
CEC51103
ADVANCED MACROECONOMICS
[HC: 4 Credits, 60 Contact Hours]
This course will explore at a deeper level some of the topics of open economy macroeconomics and
study other research topics in macroeconomics.This course will take students through models of aggregate
demand and aggregate supply, consumption behaviour, investment behaviour, macroeconomics of developing
countries, overlapping generation model and its application.
Unit 1:Open Economy Macroeconomics
Balance of payments, Exchange rate systems, Fixed vs. Flexible Exchange Rate; Perfect and Imperfect Capital
Mobility; Mundell-Fleming model: Monetary and Fiscal Policy; Expectations and Exchange Rates, Monetary
approach to Balance of Payments.
Unit 2: Aggregate Demand & Supply
Models of aggregate supply, Phillips curve, Adaptive and Rational Expectations, Policy evaluation and the
Lucas critique, New classical analysis, Real business cycles;
Unit 3: Consumption Behaviour
Permanent Income and Life cycle theories, Consumption Theory and Halls Random Walk;
Unit 4: Investment Behaviour
Neoclassical theory, Tobins q, Imperfect information and investment;
Unit 5: Macroeconomics of Developing Countries
World Bank- IMF model; Structural Change and Unbalanced Growth; Financial Repression; Exchange Rate
Dynamics; International Financial Markets and Financial Crises;
Unit 6: The Overlapping Generations model
The RamseyCassKoopmans Model; The Overlapping Generations Model (OLG model) or the Diamond
model;
Readings:
1. Lectures on Macroeconomics . Blanchard and Fischer. Phi Learning; 1st edition (2009)
2. Advanced Macroeconomics. David Romer. Tata McGraw - Hill Education; 4th edition (2011)
3. Macroeconomics: Theories & Policies. R. Froyen. Pearson Education; 10th Edition (2013)
4. Rudiger Dornbusch, Stanley Fischer and Richard Startz, Macroeconomics, 7th (or later) edition, McGraw Hill.
Suggested Readings:
9
1. Macroeconomic Theory & Policy. Amit Bhaduri. Setu Prakashani (2014)
2. Analytical Development Economics: The Less Developed Economy Revisited. Kaushik Basu. Oxford
University Press India; 1st edition (2010)
3. Advanced Macroeconomics (Volume 1 & 2). K. R. Gupta. Atlantic; 2nd edition (2010)
4. Macroeconomics for Developing Countries. Raghbendra Jha. Taylor & Francis Ltd; 2nd Revised edition
(2003)
5. Introduction to Economic Growth. Charles I Jones. Viva Books; 2nd edition (2013)
10
CEC51105
MATHEMATICAL ECONOMICS
[HC: 4 Credits, 60 Contact Hours]
The course is intended to deliver knowledge of mathematical techniques suitable for economic analysis. It
assumes some prerequisite knowledge of mathematics, albeit the approach is lucid and aims to show students
how to do and apply the mathematics they require for a successful study of economics. Economic applications
are considered to map successful application of mathematics in economics. Topics covered include optimization
techniques, real analysis, and linear algebra, differential equations.
Unit 1: Static Optimization I
Unconstrained Optimization, Real-Valued Functions of Several Variables, Second Order Conditions, Economic
Applications.
Unit 2: Static optimization II
Classical Constrained Programming, Kuhn Tucker Formulation, Envelope Theorem, Economic Applications.
Unit3: Dynamic Optimization
The Nature of Dynamic Optimization, Alternative Approaches to Dynamic Optimization, Optimal Control
Theory.
Unit4: Introduction to Real Analysis
The Real Number System, Basic Notions of Set Theory, Limits and Continuity, Derivatives.
Unit5: Introduction to Linear Algebra
Vector Spaces, Linear Transformations, Matrices,Linear Equations and Determinants.
Unit6:Differential Equations and Stability Issues
Differential Equations, Stability Theory, Phase Diagrams.
Readings:
1. Mathematics for Economists. Carl P. Simon, L Blume. Viva Norton (Student edition). Reprint 2015.
2. Essential Mathematics for Economic Analysis. Knut Sydsaeter, Peter J. Hammondand , and Arne Strm.
Pearson India; 4th edition (2013).
3. Optimization in Economic Theory. Avinash K. Dixit. Oxford University Press; 2nd Revised edition
(2010)
11
6. Fundamental Methods of Mathematical Economics. A. C. Chiang, and Wainwright. McGraw Hill
Education (India) Private Limited; 4th edition (2013)
8. Mathematical Optimization and Economic Theory. Michael D. Intriligator. PHI Learning (SIAM); 2012
9. Linear Algebra - A Geometric Approach. Ted Shifrin, Malcolm Adams., W. H. Freeman (2010)
10. Optimization and Stability Theory for Economic Analysis. Beavis & Dobbs. Cambridge University
Press (1990)
12
CEC52101
INSTITUTIONAL ECONOMICS
[HC: 4 Credits, 60 Contact Hours]
The main objective of this course is to understand how the role of the evolutionary process and the role of
institutions are shaping economic behaviour. It helps to understand the social systems, or "institutions," that
constrain the use and exchange of resources (goods and services) and their consequences for economic
performance. It makes us to understand how a countrys institutions can encourage or prevent the efficient use
of a societys human and natural resources.
13
mechanism. Reputation and the "free rider problem"; Reputations aided by institutions. Transaction costs, the
main types of economic exchange and their institutional structure; Coexistence of the main types of economic
exchange in the modern society; Transaction cost measurement.
Unit-IV: Economic Theory of Property Rights
The definition of property rights; Property rights in different Laws/traditions; The property rights approach:
some basic concepts. Specification of property rights, the bundle of rights, partitioning of property rights,
attenuation of property rights; Assigning of property rights: the internalization of externalities; The Coase
Theorem; Critic of Coase (dynamic effects of alternative legal rules, wealth effect, distributional effects,
strategic behavior and the problem of holding-out, endowment effect, sociological critic, unrealistic assumption
about zero transaction costs); Alternative property rights regimes; Common property (open access) and the
tragedy of the commons; Exclusive property rights and the conditions for their emergence; The first economic
revolution. Communal property; Optimal group size; Private property; Moral and economic aspects of private
property; Public property; The emergence of property rights; The optimistic theory of the emergence of
property rights (naive model); The interest-group theory of property rights; The costs of collective action; The
theory of rent-seeking; Interest-groups and rent-seeking behavior in an economy.
Blaug, M. (1978): Economic Theory in Retrospect (3e), CUP, Cambridge and NY.
Coase, R. (1937): The Nature of the Firm, Economica, Vol.4, pp. 386-405.
Coase, R.H. (1960): The Problem of Social Cost, Journal of Law and Economics, Vol.3, pp.1-44.
Dahlman, C. (1979): The Problem of Externality, Journal of Law and Economics, Vol.22, pp. 141-
162. 6. Eggertson, Thr. (): Institutions and Economic Behavior, Ch.1, pp.1-32.
Eggertson, Thr. (): Institutions and Economic Behavior, Ch.2, pp.33-78, Ch.4, pp.83-124, Ch.8,
pp.247-280, Ch.9, pp. 281-316.
Elster, J. (1989): Social Norms and Economic Theory Journal of Economic Perspectives, 3, 99-117.
Menard, C. and M. Shirley (eds.) (2005): Handbook of New Institutional Economics, Springer.
Milgrom, P. and J. Roberts (1992): Economics, Organization and Management, Prentice-Hall Int., Ch.2,
pp.19-35, Ch.5, pp.147-149, Ch.8, pp.259-269.
North, D. (1990): Institutions, Institutional Change and Economic Performance, CUP, Ch.5, 6, 7.
North, D. (1990): Institutions, Institutional Change and Economic Performance, CUP, Ch.8. 14. Posner,
R. (1997): Social Norms and the Law: an Economic Approach, AER, 87, 365-369.
14
FIRST YEAR
Semester II
15
CEC51102
POLITICAL ECONOMY OF DEVELOPMENT
Critique of Political Economy of Development; re-examining dual economic model (Lewis, informal-formal,
etc.); interrogating alternative theories of transition and development; rethinking transition: reconstruction
beyond the capitalist hegemonic; post-capitalist politics; Capitalism and globalization: neo liberalism and global
capitalism; formation of economic order in post-globalization period, capitalist development and Primitive
Accumulation of third world/world of the third;
Readings:
17
CEC52103
INTERNATIONAL TRADE
[HC: 4 Credits, 60 Contact Hours]
This is an advanced course on international trade theory and empirics. It begins with a classical trade model and
proceeds by introducing various complexities thereby tracking the evolution of modeling in international
economics. In the latter part, we revisit the classical models, in a more theoretical manner to bring out the
ongoing arguments in favour of and against free trade. Finally, we attempt an understanding of the global
scenario from the third world perspectives to bring out the shark contrasts in views.
References:
1. Rogoff & Obstfeld (1998): Foundations of International Macroeconomics, MIT Press
2. Dornbusch (1980): Open Economy Macroeconomics, Norton
3. Benassy (1984): Macroeconomics, Academic Press
4. R. Jones, R. Caves and J. Frenkel (CJF), World Trade and Payments, 4th edition,
5. R. Jones, International Trade: Essays in Theory, North Holland,1979.
6. Ronald Findlay, International Trade and Development Theory, Columbia University Press, 1973.
18
7. Paul Krugman, Rethinking International Trade, 1994, MIT press.
8. Jagdish N. Bhagwati, T. N. Srinivasan and Arvind Panagariya, Lectures on International Trade, MIT
Press, 1998.
9. Helpman & Krugman (1989): Trade Policy & Market Structure, MIT Press
10. Kierzkowski (ed.): Monopolistic Competition and International Trade, 1984, OUP
a. Bhagwati, J. (Ed.) (1981). International Trade: Selected Readings, Cambridge University Press,
Massachusetts.
11. Chacholiades, Miltiades (1990). The Pure Theory of International Trade, McGraw Hill, Kogakusha,
Japan.
12. Cherunilam, Francis (2006), International Economics, Tata McGraw-Hill Publishing Co. Ltd., New
Delhi.
13. Heller, H. Robert (1988). International Trade: Theory and Empirical Evidence, Prentice-Hall of India
Pvt.
14. Ltd., New Delhi
15. Kenen, Peter B. (1989). The International Economy, Prentice-Hall of India Pvt. Ltd., New Delhi.
16. Kindleberger, C.P. (1977). International Economics, D.B. Taraporevala Sons & Co. Pvt. Ltd., Bombay.
17. Meade, James Edward (1952). A Geometry of International Trade, George Allen and Unwin Ltd.,
London.
18. Roy, P.N. (1986). International Trade: Theory and Practice, Wiley Eastern Ltd., New Delhi.
19. Sodersten, Bo (1991). International Economics, The Macmillan Press Ltd., London.
19
CEC51106
INDIAN ECONOMY IN THE GLOBAL CONTEXT
[HC: 4 Credits, 60 Contact Hours]
This course will cover the contemporary issues in Indian Economy with primary focus of Post Reform period.
The paper will discuss about the changes in Indias Remarkable Growth experience after shift of the trajectory
from Planned Economy to Market Economy. Along with detailed outlay of the output and employment pattern,
this paper will also elaborate the infrastructure and policies as an emerging economy. Finally the Growth versus
Distribution debate will be covered with special emphasize on the challenges of the State in Post Globalization
era.
Unit 1: India as an emerging economy
Economic Reforms (Structural adjustment and Stabilization policies; Membership of WTO; Second Generation
Reform; High growth rate since 2004 and BRIC membership; Sectoral performance in terms of output and
employment; what has become the engine for growth; Macroeconomic Policies and their role: Fiscal Policy,
Monetary Policy, Trade Policy etc. (Brief discussion); Distribution Implications - Growth vs. poverty,
inequality jobless growth?
Unit 2: Sectoral Performances in Indian Economy: Output Composition
Agriculture: Change in growth, yield and cropping pattern; Sectoral contribution in GDP; Crop failure
increased vulnerability - Farmers suicide;
Industry: Change in the composition Identification of high growth industries; composition of Secondary
sector; Primary industries (traditional and dirtier) to Modern sophisticated industries (cleaner and
technologically advanced);
Service sector growth: skill intensive sector; high return for investment in education (skill accumulation)
Unit 3: Employment Implications of Growth
Chnages in Labour Market: Changes in employment and Labor Productivity; Trends in Wages and wage
inequality; Increased casualization of labour; increase in labour mobility viz-a-viz loss of social security; High
risk and high return in job market;
Gender and Labour Market;
Countering unemployment by State: Implications of Employment Generation Schemes;
Unit 4: Infrastructural Development in India Public Private Partnership
Infrastructural Development; How to Finance, Maintain and Implement User Right; Conflict between Economic
Efficiency and Social Justice; Private investments in Infrastructure; Public Private Partnership: Definition,
Structure, and Operation; PPP Initiatives in Developing Countries: Case studies;
20
Macroeconomic Policies and their role: Economic Reforms in 1990s; Crisis and Contraction, Slowdown in
investment, Sources of Policy Failures;
Recovery from Crisis: Fiscal Policy, Monetary Policy, Trade Policy;
Unit 6: Growth vs. Distribution
Growth with Disparity; Growth vs. Distribution Poverty, Inequality, Human Development; Income change
with increased Vulnerability;
References:
1. India's Emerging Economy: Performance and Prospects in the 1990s and Beyond (2004): ed.
KaushikBasu, OUP.
2. Employment with Dignity (2005): Amit Bhaduri.
3. India in Transition: Freeing the Economy, by Jagdish Bhagwati, OUP.
4. Employment and wages in Indian manufacturing: Post-reform performance, by Bishwanath Goldar and
Amit Sadhukhan, Working Paper No. 185, ILO, Geneva;
5. India development reports.
6. Development and Sustainability: India in a Global Perspective (2013): eds. Sarmila Banerjee and Anjan
Chakrabarti, Springer;
7. Economic Survey of India.
8. Indian Economy: A Macro-Theoritic Analysis (2016): Chandana Ghosh and Ambar Ghosh, PHI
learning.
9. India: Economic Development and Socila Opportunity (1995): Jean Dreze and Amartya Sen, OUP.
10. Indian Economy: Performance and Policies (2015): Uma Kapila. Academic Foundation; 15th Revised
edition.
11. Indian Economy (2015): Gaurav Datt, Ashwani Mahajan. S. Chand Publishing.
12. Vaidyanathan A.(1994). Performance of Indian Agriculture since Independence in Kaushik Basu (ed.)
Agrarian Question, Oxford University Press.
13. M.S. Ahluwalia. 2002. Economic Reforms in India since 1991: Has Gradualism Worked? The Journal
of Economic Perspectives, Vol. 16, No. 3.
14. I.J. Ahluwalia & I.M.D. Little (ed.). 1999. Indias Economic Reforms and Development, Essays in
honour of Manmohan Singh, Oxford University Press, New Delhi.
15. M Rakshit. (2007): Services-led growth: The Indian Experience in Money and Finance, February
16. G S Bhalla. (2004): Globalisation and Indian Agriculture: State of the Indian Farmer. Academic
Publishers: New Delhi
21
CEC51108
ECONOMETRIC METHODS
[HC:4 Credits, 60 Contact Hours]
Econometrics is concerned with the application of statistical theory to the analysis of economic data and the
estimation of economic relationships. This course intends to expose students to the statistical techniques that
economists use for estimating, testing, and forecasting economic relationships. This course covers both an
introduction to econometric theory and methods, and a range of applications.
Unit 1: Statistics Prerequisites
Data - Classification and presentation; Frequency distribution - Diagrammatic representation of frequency
distribution; Measures of Central Tendency; Measures of Dispersion; Measures of Skewness & Kurtosis;
Bivariate data: correlation, covariance.
Unit 2: Introduction to Econometrics
What is Econometrics? Steps in Econometric Analysis; Specification of Econometric Model and Assumptions;
Basic Concepts of Estimation and Desirable Properties of Estimators; Data for Econometric Analysis.
Unit 3: Simple Linear Regression Analysis
Definition of Simple Linear Regression Model (SLRM); Ordinary Least-squares (OLS) Estimation of SLRM;
Properties OLS Estimators; Statistical Inference in SLRM; Measuring Goodness of Fit; Analysis of Variance on
OLS Regression; Interpretation of Regression Results.
Unit 4: Multiple Linear Regression Analysis
Definition of Multiple Linear Regression Model (MLRM); OLS Estimation of MLRM; Properties of Multiple
Regression Coefficients; Measuring Goodness of Fit; Problems of Inference in MLRM; Interpretation of
Regression Results.
Unit 5: Heteroscedasticity, Autocorrelation, & Multicollinearity
Heteroscedasticity: Definition, Consequences, Detection, Remedial Measures.
Autocorrelation: Definition, Consequences, Detection, Remedial Measures.
Multicollinearity: Definition, Consequences, Detection, Remedial Measures.
Core Readings:
1. Introduction to Econometrics. G. S. Maddala, 2nd Edition, Macmillan, New York
2. Basic Econometrics, D Gujarati, Tata McGra-Hill, Delhi, 4th Edition
Suggested Readings:
1. Econometrics. B. H. Baltagi. Springer (india) Private Limited; 3rd edition (2013)
2. Econometric Analysis. William H. Greene. Pearson India; 5th edition (2003)
22
3. Principles of Econometrics: A Modern Approach Using EViews. Sankar Kumar Bhaumik. Oxford
University Press India (2015)
4. Gauss and Invention of Last Square, Stigler S. M., The Annals of Statistics 9(3), pp 465-474
5. That descriptions be kept as simple as possible until proved inadequate, The World of
Mathematics, vol. 2, J. R. Newman (ed.), Simon & Schuster, New York, 1956, p. 1247, or, Entities
should not be multiplied beyond necessity, Donald F. Morrison, Applied Linear Statistical Methods,
Prentice Hall, Englewood Cliffs, N.J., 1983, p. 58.
6. G. S. Becker, Crime and Punishment: An Economic Approach, Journal of Political
Economy,76(8), pp. 169217.
CEC51612
INTERNSHIP
[AUDIT, ONE MONTH]
Summer internship will be of one month duration, during the summer vacation after the end semester exams of
Semester II. The students will be given a list of internship opportunities with NGOs, civil society organisations,
think tanks, governmental agencies and private companies. At the successful completion of summer internship,
students have to submit a detailed internship report. Students will receive certificates both from the organisation
and the University.
23
SECOND YEAR
24
CEC52101
GLOBALIZATION AND CONTEMPORARY ISSUES OF DEVELOPMENT
[HC: 4 Credits, 60 Contact Hours]
The course deals with the principal issues of economic development, with the objective of preparing students
for advanced study and policy-oriented research in this subject area. Emphasis will be on economy-wide
aspects of economic development, with special references to international dimensions of national development
policy making. In this course, we will strive to develop a more nuanced view which sees development and
globalization as an inter-related set of historical processes and mechanisms which have revolutionized much of
human society over the last several decades.
Unit 1: The Paradigm of Development
The emergence of the development paradigm- Capital accumulation through planned industrialization in a
traditional agrarian economy- The role of the developmental state- The role of international organizations: the
IMF, the World Bank and the ILO- Alternative strategies for industrialization: import substitution and export
promotion.
Unit 2: The Evolution of Measures of Development
Poverty, Inequality and Development- Measuring Inequality and Poverty- Income Poverty Index and Human
Poverty Index. Per Capita income- Physical Quality of Life Index- Human Development Index- Gender
Development Index- Gender Empowerment Measures.
Unit 3: Social Sector and Economic Development
Education and Health in Economic Development- Mortality and Morbidity- assessment of health status in terms
of Disability-Adjusted-Life-Years (DALY)- Analysis of Disease Burden & Epidemiological Transition theory
of Development.
Famine: Supply failure vis--vis entitlement failure; Self-help-groups and poverty management; NGO and the
provision of merit goods.
Unit 4: Globalization
Is globalization an unprecedented phenomenon? Integration of the developing economies into the global order:
the structural adjustment program (SAP)- Trade liberalization: WTO- Capital flows and financial integration-
Communication technology and the death of distance: off-shoring and outsourcing- The global regime of
property rights- The global economy and the developmental state.
Unit 5: Globalization and the Developing World
25
Globalization and inequality- Globalization and employment- Trade liberalization, dispersion of production and
the international division of labour- WTO and the nation state- Trade liberalization, capital flows and
environment- Globalization and agriculture- Development and Democracy.
Unit 6: Debating Consequences of Globalization
The Global Financial Crisis of 2008, and Increasing Inequality; Globalization and Working People Who are
the Winners and Losers? Globalization and Culture Conflict or Convergence? Globalization and Political Change
More or Less Democracy?
Suggested Readings:
1. Contemporary Issues in Globalization. S. Sikdar. Oxford University Press; 2nd edition (2006)
4. Economic Development. M.P. Todaro, and S.C. Smith. Pearson India; 10th edition (2011)
5. Globalization for Development. Ian Goldin, Kenneth Reinert. Rawat Books; (2006)
6. Globalization and Development. Ashwini Deshpande (ed.) Oxford University Press; 11th edition (2010)
26
CEC52102
INTERNATIONAL FINANCE
[HC: 4 Credits, 60 Contact Hours]
This course revolves around the theories and activities connected to capital account of balance of payments. It
deals with international capital transfer and the role of international financial agencies and institutions in
determining or regulating transactions in the international financial system. It will make a student comfortable
in applying for a job at foreign bank like HSBC or a global institution like IMF or pursue higher studies in
international finance and banking.
Unit 1: Departure from International Trade
a. Recapitulation of Balance of Payments
b. Financing Current Account Transactions
c. Dynamic Nature of Capital Account Transactions
i. Role of Foreign Currency Interest Rate
ii. Role of Exchange Rate
d. International Financial Markets
e. Exchange Rate Determination
f. Introduction to Currency Derivatives
28
CEC52104
ECONOMICS OF SOCIAL ISSUES
[HC: 4 Credits, 60 Contact Hours]
Capitalism, aided by modernity and globalisation, had promised a universal solution to all the social problems
of mankind. However, with time, it has given rise to a new set of contradictions and problems that are
themselves products of this age, characterized by economic engines of growth and technology. Accordingly,
new approaches have come up to tackle these social problems related to gender, race, nature etc. This course
attempts towards such a new methodological approach towards heterogeneity and local interests, thereby
providing a critique of the capitalist notions of justice, rationality and equality.
Unit 1: Modernity and social changes
Modernity, capitalism, economic problems of poverty, unemployment and inequality growth as the solution,
from growth to development, emphasis on social indicators, human development - capability approach
Unit 2: Globalization and social changes
Beyond economic problems, multiculturalism, urbanisation, migration, social disorganisation, exclusion,
displacement, refugee problems, informalization and casualization of labour, demographic problems, population
explosion, communalism, secularism, regionalisation, casteism, child abuse, consumerism, stratification,
displacement and dislocation
Unit 3: Gender issues
Basic concepts of women studies, women studies perspectives, gender sensitive approach, gender and sex,
biological determinism, stereotyping, socialisation, patriarchy, devaluation, marginalisation, silencing, male
gaze, power politics, gender mainstreaming, gender and work, feminism, feminist research methodology,
objectivity vs. subjectivity, women right movements
Unit 4: Social justice
Idea of justice a brief chronological overview, egalitarian view, utilitarian view, Rawlsian view, Sens idea of
justice, idea of natural inequality
Unit 5: Social movements
Political sociology, power, democratic politics, fall of communism, global governance, terrorism, tribal unrests,
social movements (Naxalbari movement in India: case study)
Unit 6: Environmentalism
Beyond the anthropocene, the mutual interconstitutivity of man and nature, a brief history amd taxonomy of
environmental movements, mainstream movements and critiques, radical environmentalism, animal rights,
indigenous people
Core Readings:
29
2. Beck Ulrich, Risk Society: Towards A New Modernity, Sage Publications, 1992.
3. Breman Jan .Footloose Labour: Working in Indias Informal Economy (Contemporary South Asia)
Cambridge University Press, 1996.
4. Joseph, R. Gusfield. New Social Movements: From Ideology to Identity. Temple University Press.
2009
5. Manorama Year Book
6. Meera Nanda, Prophets Facing Backward, Permanent Black, New Delhi, 2004.
7. P.Sainath, Everybody Loves a Good Draught, Penguin, New Delhi, 2005
8. Pavan Mishra, Butter Chicken in Ludhiana, Penguin, New Delhi, 1995
9. Pushpesh, Kumar. Queering Indian Sociology A Critical Engagement CAS WORKING PAPER
SERIES Centre for the Study of Social Systems Jawaharlal Nehru University, New Delhi May 2014
CAS/WP/14-7
10. Raka Ray and Mary Fainsod Katzenstein (eds), Social Movements in India, Oxford University Press,
New Delhi, 2005.
11. Shah Ghanshyam, Social Movements and the State, Sage, New Delhi, 2002.
12. Surinder, S. Jodhka (ed), Community and Identities, Sage, New Delhi, 2001.
13. Yojna Magazines
14. Sujata Patel, Krishna Raj & Jasodhara Bagchi (eds), Thinking Social Science, Sage, New Delhi,
2002.
15. Stuart Cambridge & John Harris, Reinventing India, Oxford University Press, New Delhi, 2000
16. Romilla Thappar (ed) India Another Millenium, Viking, New Delhi, 2000
17. Josef Guglar (ed.) The Urban Transformation of the Developing World, Oxford University Press,
New York. 1996.
18. Ram Ahuja, Social Problems in India. Rawat Publications.1997.
19. Singh K.S. (ed.) Tribal Situation in India, Indian Institute of Advanced Study, Simla, 1972.
20. 1.Ahuja, Ram (2000). Social Problems in India, New Delhi: Rawat Publications.
21. 2.Deb.S. (2006).Contemporary Social Problems In India. New Delhi, Anmol.
22. 3.Bhattacharyya.S (1994). Social problems in India: issues and perspectives: Sunil Kanta
Bhattacharyya, Regency Publications.
23. 4.Dube, Leela (1997). Women and Kinship, Comparative Perspectives on Gender in South and
Southeast Asia, New Delhi: Sage Publication.
24. 5.Desai, Neera & Usha Thakkar (2007). Women in Indian Society, National Book Trust, India.
Gadgil.
25. 6.Ghosh. B. (1995). Contemporary Social Problems of India: Biswanath Ghosh, Himalaya.
26. 7.Mehta. S.R. (Ed.). (1997). Population, Poverty and Sustainable Development, Jaipur: Rawat.
27. Guha, Ramachandra. Environmentalism: A Global History. Longman World History Series. New
York: Longman, 2000.
28. Hobsbawm, E. J. The Age of Empire, 1875-1914. New York: Vintage, 1989.
29. McNeill, J. R., John Robert McNeill, and Paul Kennedy. Something New Under the Sun: An
Environmental History of the Twentieth-Century World. W. W. Norton & Company, 2001.
30. Scott, James. Seeing like a State: How Certain Schemes to Improve the Human Condition Have
Failed. New Haven: Yale University Press, 1998.
30
Suggested Readings:
1. Singh K.S. Tribal Movements in India Vol. I & II, New Delhi: Manohar Prakashan, 1982.
2. Bose, A., Nangbri, T. & Kumar, N. (eds.) Tribal demography and development in North-East India.
Delhi: B.R. 1990.
3. Furer-Haimendorf, C.V. Tribes of India: The Struggle for Survival, Delhi: OUP. 1991.
4. Mehta, P.L. Constitutional protection to Scheduled Tribes in India in retrospect and prospect, Delhi:
H.K. 1991.
5. Rao, M.S.A. Social Movements in India, Vol.I and II, Manohar, Delhi, 1978.
6. T.K.Oommen, Nation, Civil Society and Social Movements, Sage, Delhi, 2004.
7. Kancha Illiah, Why I am not a Hindu, Samya, Calcutta, 1998.
8. Guru Gopal (ed.), Atrophy in Dalit Politics, VAK, Bombay, 2005.
9. Gail Omvedt, Dalits and the Democratic Revolution, Sage, New Delhi, 1994.
10. .Beteille, Andre (1992). Backward Classes in Contemporary India, New Delhi: OUP .
11. Madhav and Ramchandra Guha (1996). Ecology and Equality: The use and Abuse of Nature in
Contemporary India, New Delhi: OUP. Gill, S.S. (1998): The Pathology of Corruption, New Delhi:
Harper Collin Publishers.
12. Lewis, Oscar (1966). Culture of Poverty. Scientific American. Vol-II and V No.IV PP-19-25. Satya
Murty.
13. T.V. (1996). Region, Religion, Caste, Gender and Culture in Contemporary India, New Delhi: OUP.
31
SOFT CORE COURSES
In the second year of the M.A program, students need to choose any ONE stream out of the three offered in this
academic session. Under each stream of specialization, they are required to study five courses, each of 4 credits.
The streams on offer are subject to availability of course instructors in a particular session.
Econometrics is concerned with the application of statistical theory to the analysis of economic data and the
estimation of economic relationships. Applied economics, is a specialized stream which comprises of four
papers. This course altogether intends to provide students with a thorough understanding of core techniques of
econometrics and learn how to apply them to test economic theories and quantify relevant factors for economic
policy and other decisions.
By the end of the course the students will have developed the necessary skills needed for empirical research
using modern econometrics techniques. Through their computer based assignments they will be also trained in
conducting research using primary data. The students will also deepen their other transferable skills such as
written communication, teamwork, numeracy, computer literacy, problem solving and analytical skills.
32
CEC52105
STATISTICAL INFERENCE AND ESTIMATION METHODS
This course is designed for the students to understand the statistical knowledge of applied econometrics. They
will be introduced to the concepts of estimation, Hypothesis testing, linear and non-linear estimation and
maximum likelihood estimations. Students will be introduced to the software package Stata to understand its
application in Econometrics.
Introduction; point and interval estimation; Estimation of population parameters using methods of moments
and maximum likelihood procedures; properties of estimators; confidence intervals for population parameters.
Estimation of the slope and intercept parameters; inference and prediction; OLS and MLE
Unit 4: Sampling
Different types of Sampling; Principal steps in sampling; designing a questionnaire; Sample theory and
Properties; Sampling techniques.
Introducing Statistical packages; Stata and Eviews; Graphical exploration using Stata; Regression and other
statistical application in Stata; Summary.
33
Reference:
1. William G. Cochran, Sampling Techniques, John Wiley, 2007.
2. Jay L. Devore, Probability and Statistics; Seventh Edition;Cengage Learning, 2010
3. C Cameroon and P Trivedi, Microeconometrics Using Stata,Stata Press Publication,2009.
34
CEC52107
ADVANCED ECONOMETRIC METHODS
[SC/ Paper B: 4 Credits, 60 Contact Hours]
This course is designed to provide the fundamentals of Econometrics for a post-graduate Economic course.
Students will be introduced to fundamentals of econometrics applied to Cross-section, Time series as well as
panel data analysis. After advancing this course, students will be equipped to deal with empirical economics and
applied the techniques to a large number of Economics as well as other social science data.
Unit 1: Econometrics of Cross-Sectional Data Analysis
Classical Linear Regression Model (CLRM):Introduction; The method of ordinary least-square (OLS);
Statistical Inference; Prediction
Interval estimations; confidence interval for regression coefficients; Hypothesis testing; Analysis of Variance
(ANOVA); Applications; Summary
Multiple Regression Analysis; Estimation:Introduction; Interpretation of Multiple regression equations; OLS
and Maximum Likelihood Estimator (MLE) estimators; Applications; Summary
Dummy Variable Regression:Introduction; The nature of dummy variable; Interaction effects using dummy
variable; Regression with the combination of quantitative and qualitative regressor; Applications ; Summary.
Unit 2: Violations of the CLRM assumptions
Heteroskedasticity: Introduction; Testing for heteroskedasticity ; The method of generalized least
squares(GLS); Applications ;
Autocorrelation :Introduction; BLUE estimator in the presence of Autocorrelation; Consequence of
Autocorrelation; Detection of Autocorrelation; Correcting Autocorrelation; The method of GLS; Applications
Multicollinerity:The nature of Multicollinearity; Estimation in the presence of Multicollinearity; Detection of
Multicollinearity; Remedial measure; Applications
Unit 3: Econometrics of Time Series Analysis
The nature of Time series data; Finite sample properties of OLS; Trends and seasonality; Applications;
Stochastic Process; Unit root ; Testing for unit roots; Spurious regression; Infinite Distributed Lag models;
Cointegration and Error correction models; Forecasting; Application ; Summary
Unit 4: Pooled Data Analysis
Pooling cross sections across time; pooled cross sections; pooling characteristics; pooled data regression;
Application of Pooled data; Summary
Unit 5: Econometrics of Panel-Data Analysis
Fixed effect estimation model; Random effects estimation model; Hausman test: Fixed effect or Random effects
model; Application; Summary
Unit 6: Special Topics in Econometrics
35
Instrumental Variable Estimations:Introduction; Proxy variable vs Instrumental variable; Instrumental variable
estimation; Choice of an instrument; 2-Stage Least square methods, Applications; Summary.
Reference:
1. Jeffrey M. Wooldridge, Introductory Econometrics A Modern Approach; CENGAGE
Learning,2016
36
CEC52109
ECONOMETRIC ANALYSIS OF DATA
[SC/ Paper C: 4 Credits, 60 Contact Hours]
Econometrics analysis of Data is a course designed for the students to apply their theoretical knowledge of
econometrics in real Economic data. Students will be introduced one or two softwares will be able to apply
them in empirical economics using data.
Introduction to Data analysis; data mining and Filtering; Descriptive analysis of econometric Data;
Graphical exploration; Distributions of Econometric data; Summary.
Unit 3: Regression
Simple regression: Introduction; Modelling simple regression; Linear regression and least square principle;
Regression with graphics; Outliers,leverage and influence; Summary;
Partial regression: Interpreting multiple regression coefficients; Introduction; Multiple regression line;
partial regression and partial correlation; The t-test in multiple regression; Summary
Model selection and misspecification: Introduction; Omitted variable bias; Testing zero restriction; The use
of dummy variables; Summary;
37
Co-integration and error correction model: Introduction; What is co-integration?Testing for co-integration; The
Error correction model; Summary;
Reference:
1. Sophia Rabe-Hesketh and Brian Everitt ,A Handbook of Statistical Analysis Using Stata, Chapman and
Hall
2. Chandan Mukherjee, Howard White and Marc Wuyts ,Econometrics and Data Analysis for Developing
Countries , Routledge
38
CEC52106
Reference:
1. Ira H. Bernstein , Applied Multivariate Analysis, Springer-Verlag ,1988
39
2. David J. Bartholomew,Fiona Steele,Irini Moustaki,Jane I. Galbraith, Analysis of Multivariate Social
Science Data, Taylor and Francis,2008.
3. Alvin C. Rencher, Methods of Multivariate Analysis, Second Edition, Willey and Sons,2002.
Major public policy issues travel around the decision making around a) The economics of health care
provisioning and regulation of inefficiencies in health care market. b) Education: both elementary education as
merit good as well as complicated web of policy issues around higher education and c) Decision making
methodologies for optimum resource utilization, sustainable development, environmental valuation with
pollution and related environmental regulations.
The current specialization stream includes five compulsory papersto enable students to develop analytical and
critical skills relevant for understanding the challenges of public policy and its implementation. It also equips
you with skills that are essential for effective policy delivery:
1. Economics of Public Health
2. Economics of private health market
3. Economics of Education
4. Economics of Natural Resources
5. Environmental regulation and Valuation
40
CEC52111
ECONOMICS OF PUBLIC HEALTH
[SC/Paper A: 4 Credits, 60 Contact Hours]
Economics of Public Health is designed for post graduate students pursuing a career in public policy who
wish to use economic tools to improve the health of populations. The appropriate role of cost-effectiveness
and economic reasoning in the policy making process for health care, economic evaluations related to new
health interventions, services, or public health will be discussed in this course. The students should be able to
comprehend the economic theories embedded in different health policies and they should be able to design
appropriate incentives for betterment of public health.
Unit 1: Introduction
Public health and Policy; Key Economic Concepts; An Overview of the Normative Economics of the Health
Sector; Efficiency and normative frameworks - Welfare Economics Approach: The Pareto principle - Market
failure - The compensation principle - Cost-benefit analysis - Social welfare functions;
Good Health; Health as a Form of Human Capital - Additional Factors that Affect the Investment in Health -
Understanding the Investment Aspects of the Grossman Model;
Health Care: A Normal, Superior, or Inferior Good?The Demand for Health Care - Preventive and Curative
Health care; Socio-economic determinants of health; Asymmetry of Information and Imperfect Agency -
Aggregate Demand for Health Care;
41
Economics of Communicable diseases; Health care financing in Public Sector; Evaluating the Healthcare
System: Types of Economic Analyses - Assessment of an Economic Evaluation - The monetary value of health
changes: Private willingness to pay - Altruistic willingness to pay;
Concepts of Equity and Fairness in Health and Health Care; Measuring Inequality and Inequity in Health and
Health Care;
The Biopharmaceutical Industry - Drug Costs - - Market Structure - Government Regulation of the
Pharmaceutical Industry - Demand for Pharmaceuticals - Pricing Issues;
References:
1. Public and Private Social Policy: Health and Pension Policies in a New Era edited by Daniel Bland
and Brian Gran, Palgrave Macmillan, 2008.
2. Handbook of Health EconomicsVol1A edited by Anthony J. Culyer and Joseph P. Newhouse, Elsevier,
2000.
3. Essentials of Health Economics by Diane M. Dewar, Jones and Bartlett Publishers, 2010.
42
CEC52113
ECONOMICS OF PRIVATE HEALTH MARKET
[SC/Paper B: 4 Credits, 60 Contact Hours]
This course provides an introduction to the economic analysis of the health care market. The course is designed
to provide a micro-foundation of health economics. For that reasoning and tools of microeconomics are applied
to the study of health and medical care and implications for individual health behavior. Moreover, this course
will draw on models of behavior under asymmetric information, imperfect competition, agency and
optimization under uncertainty. Some of the other related issues like the functioning of hospital industry,
pharmaceutical industry, and effect of technological innovation in health care market will also be discussed.
Reading List:
1. Health Economics; Jay Bhattacharya, Timothy Hyde, Peter Tu; Palgrave Macmillan Press, 2014.
2. Essentials of Health Economics; Diane M. Dewar; Jones and Bartlett Publishers, 2010.
3. The Oxford Hand Book of Health Economics; Edited by Sherry Glied and Peter C. Smith; Oxford University
Press, 2011.
4. Principles of Health Economics for Developing Countries,William, Jack, World Bank Institute Development
Studies, 1999.
5. World Development Report, Investing in Health, The World Bank, 1993.
List of Journal Articles and Reports will be provided during lecture series.
44
CEC52115
ECONOMICS OF EDUCATION
[SC/Paper C: 4 Credits, 60 Contact Hours]
Objective: Education is increasingly being viewed as central to issues of development like productivity, income
distribution, employment, and knowledge as an input to production. This papercovers the interface between
economic theory and education in order to unravel how education contributes to socio-economic development.
Moving beyond the neo-classical approach, it uses alternative theoretical perspectives to analyze the linkages
between education and society. With a blend of theory and policy wide range of issues such as the relationship
between quality of education and economic growth, a critical overview of the input-output approach and human
capital theory, education as a public good the specific features of the education market, the nature of
competition in this market, and the role of the government funding, delivery, and regulation of education the
role of the public and private sectors will be covered under the domain of this paper.
45
Market and Market failure in Higher Education; Information asymmetry, Adverse selection & Moral Hazard;
Knowledge and Market Failure; Market Failure imperfect capital market; Quasi-market for Higher Education;
features of the market; freedoms for providers; Market and equity;
Unit 7: Education and Public policy
Education as Public good; public versus private; Mode of Provisioning - Public versus private; Higher
education as public good or mixed good or merit good; primary education as merit good; Global private good;
commodification of education WTO & GATS framework; Higher education as non-merit good;
Public funding; Education Financing: Critique to Neo-liberal Ideology; Private Participation Pure private,
Public-private partnership;
New public Management: Governance Reforms; Choice of school, efficiency and quality; Quality Assurance
Mechanism; Indian Education system; Question of Autonomy; Globalization and Higher Education Market;
Text:
1. Saumen Chattopadhyay (2012): Education and Economics: Disciplinary Evolution and Policy
Discourse, OUP.
Reference:
2. Gruber J. (2011): Public Finance and Public. Worth publishers
46
CEC52110
ECONOMICS OF NATURAL RESOURCES
[SC/Paper D: 4 Credits, 60 Contact Hours]
This course is designed to introduce post-graduate economics students to the policy issues around natural
resources. Natural resources being scarce lead to core economic questions regarding the optimal rate of
extraction. On the other hand, how discovery of new resource bases change the pricing and usage of one
resource comes under the domain of resource economics. Finally the course also introduces ecosystem approach
to economics which essentially deals with the problem of irreversibility of the eco-system challenging the linear
approaches of economic instruments.
47
References:
1. Dasgupta, P (1982): The Control of Resources, HUP.
2. Hanley, N., J.F. Shogren, and B. White, Environmental Economics: In Theory and Practice, Oxford
University Press, 2006.
3. Bhattacharya, R.N. (2001), Environmental Economics An Indian Perspective, Oxford University
Press, Delhi.
4. Perman, Ma, MacGilvray and Common (2003) Natural Resource and Environmental Economics, 4/e,
Prentice Hall.
5. Baland&Platteau (2003): Economics of Common Property Management Regimes in Mler& Vincent
(eds.) Handbook of Environmental Economics, Vol 1, North-Holland.
48
CEC52112
ENVIRONMENTAL REGULATION AND VALUATION
[SC/Paper C: 4 Credits, 60 Contact Hours]
This course is designed to address environmental problems from the perspective of economics. Designing
economic instruments for regulation of environmental problems as well valuation of environmental services are
major two focus of this course. In addition to that, global climate change issues along with their macroeconomic
policy impact will be addressed in this course.
Unit 1: Environmental Regulation
Environmental Pollution as a Public Bad; Externality (Pigou), Property Rights (Coase), Optimal Pollution;
Pollution Control: Alternative Market Based Instruments Pure policies (Emission Fees, Standard setting, and
Tradable Pollution Permits), Hybrid instruments (two-part tariff), Double Dividend Hypothesis, and Illicit
Dumping; Case Studies;
Unit 2: Introduction: Concept of Value
Measuring values, benefits and costs overview; total value use and non-use values of goods; Total
Economic Valuation; Resource evaluation and public policy; measuring demand for environmental goods
consumer surplus, compensating and equivalent surplus,
Unit 3: Environmental Valuation: Production Function Approach
Household Production Function Approach to Economic Valuation; Environmental valuation from market
information including prices dose response function, productivity change method, substitution cost method,
illness costs, human capital; applications
Unit 4: Environmental Valuation: Revealed preference Approach:
Revealed Preference Approach to Economic Valuation basic theory; Hedonic pricing method property
market and labor market; travel cost method individual model and zonal model; Statistical Value of Life;
Unit 5: Environmental Valuation: Stated Preference Approach:
Hypothetical Market and Contingent Valuation Method; Contingent valuation method bias, experimental
markets; choice modeling choice experiment, contingent comparison, contingent scoring, pair comparison;
applications; Experimental Market
Unit 6: Climate Change Policy Mitigation& Adaptation
Efficiency, public goods, externalities; environmental policy instruments emissions trading, carbon tax,
emission trading versus tax; stock pollutants and discounting; decisions under risk and uncertainty;Climate
change impact assessment applications for agriculture, sea level rise and health; vulnerability assessment;
economics of adaptation; measurement of adaptation cost; issues in financing adaptation; case studies;
References:
1. Bhattacharya, R.N. (2001), Environmental Economics An Indian Perspective, Oxford University
Press, Delhi.
2. Kadekodi , G. (2004): Environmental Economics in Practice: Case Studies from India, OUP.
49
3. Pearce, D.W. and Turner. R.K.(1991) : Economics of Natural Resource and Environment, Harvester-
Wheatsheaf.
4. Baumol& Oates (1988): Theory of Environmental Policy (2/e), CUP
5. Murty, M.N. (2009), Environment, Sustainable Development, and Well-being: Valuation, Taxes and
Incentives, Oxford University Press, Delhi.
6. Hanley, N., J.F. Shogren, and B. White, Environmental Economics: In Theory and Practice, Oxford
University Press, 2006.
Bhattacharya, R.N. (2001), Environmental Economics An Indian Perspective, Oxford University Press, Delhi.
50
SOFT CORE 3: BANKING AND FINANCE
Financial Economics deals with the fascinating world of pricing, interest rates and shares and how rational (or
even irrational!) decisions affect them. Financial Economics, is dedicated to the training of economists capable
of operating at international institutions or central government level in both the financial and economic sphere.
The students will explore the global role of these financial systems in modern economics and learn to analyse
the impact of economic events on financial markets.
Students will receive advanced training on quantitative methodologies and tools suitable to interpret and analyse
the economic and financial phenomena and to operate directly on financial markets or in international economic
institutions. The study program is designed to provide the students with solid background through the
development of topics of economic theory, analysis of financial markets, techniques of security valuation, how
to manage portfolio, and finally the knowhow of dealing with financial data in real world.
At the end of the course, they will become a proficient user of financial software and complex data sources
which will enable them to better understand the impact and reach of economic decisions. This course will
prepare students for specialist quantitatively orientated careers in financial economics, research and forecasting,
as well as those in the areas of business management, finance, banking and accountancy.
51
CEC52117
FINANCIAL INSTITUTIONS AND MARKET
[SC/Paper A: 4 Credits, 60 Contact Hours]
References
Bert Scholtens and Dick van Wensveen (2003) The Theory of Financial Intermediation, The European
Money and Finance Forum Vienna, pp 3-43
52
Frank Fabbozi (2008) Handbook of Finance, Volume I, Wiley and Sons, Chapters 1-17, 27-31, 64-66,
Fredrick Mishkin and Stanley Eakins (2012) Financial Markets and Institutions, Chapters 3-6, 11-18,
23-24
53
CEC52119
PRINCIPLES OF MODERN BANKING
[SC/Paper B: 4 Credits, 60 Contact Hours]
This course discusses operations of the commercial banks with focus on India. In so doing, it aims to acquaint
the students with market practices and also with research on functional areas of the commercial banks such that
they feel at home while applying to a bank for job.
MODULE 1: Introduction
Concept of Bank
Types of Banks
Concept and Example of Commercial Bank
Concept and Example of Cooperative Bank
Concept and Example of Rural Regional Bank
Concept and Example of Private Bank
Concept and Example of Investment Bank
Concept and Example of Central Bank
Concept and Example of Non-Bank Financial company
Concept and Example of Bank Conglomerate
54
Financial Services Authority of UK
European Central Bank
Concept of Financial Crisis as Failure of Regulation
References:
Saunders A and M M Cornett, (2008). Financial Institutions Management A Risk Management
Approach, Boston: McGraw-Hill, Chapters 7, 11, 12 and 16.
Wong Michael C. S. (Ed.), The Risk of Investment Products: From Product Innovation to Risk
Compliance, WSPC USA, 2011
Hull John C, Options, Futures and Other Derivatives, Prentice Hall, New Delhi, 2000
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CEC52121
CORPORATE FINANCE
[SC/Paper C: 4 Credits, 60 Contact Hours]
The course aims at providing understanding of capital budgeting techniques, the advantages of using Net
Present Value versus Internal Rate of Return to calculate the value of financing decisions or projects, when and
how to use payback periods and risk analysis to rank financing decisions, identify the formulas for calculating
cash flows resulting from investments and their use to determine the profitability of a financing decision or
project for a business.
In terms of corporate finance best practices, students will also learn about the financial and strategic basis for
financing decisions, various public and private techniques and products available for both short term and long
term financing, techniques for cash flow management, forecasting and planning, and best practices of cash flow
management as it applies to real life examples.
Unit 1: Introduction
Finance Managers Role Separation of Ownership and Management Objectives of the Firm and Corporate
Governance Financial Statements and Cash Flow Financial Statements Analysis.
Unit 2: Working Capital Management
Working Capital Components Leverage Cash management Receivables Management Inventory
Management Financing Current Assets Regulation of Bank Finance.
Unit 3: Capital Budgeting
Measures of Investment - Choice Investment and Financing Decisions Time Value of Money Net Present
Value Internal Rate of Return Discounted Payback Period Cost of Capital Selection of Criteria Risk,
Return and Opportunity Cost of Capital Valuation of Bonds and Common Stock Scenario Testing and
Sensitivity Analysis Strategy V Investments Practical Problems in Budgeting Agency, Compensation and
Performance Measure.
Unit 4: Patterns of Financing
Internal Funds Common Stock Debt Financial Markets/Institutions Issue of securities Venture Capital
Initial Public Offering Security Sales and Auctions Private Placements and Public Issue Junk Bonds.
Unit 5: Capital Structure & Financing of Long Term Capital
Planning Capital Structure Capital Structure Choice Extended Probabilistic Analysis Dividend Payout
Policies Share Valuation Sources of Long Term Capital Debt Securities Debt Policy and Leverage Risk
Management.
Unit 6: Use of Derivatives and Corporate Finance
Options and Corporate Finance Options and Corporate Finance: Extensions and Applications Warrants and
Convertibles Derivatives and Hedging Risk.
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Readings:
1. Brealey, R.A., Myers, S.C. and Allen, F. (2014). Principles of Corporate Finance, 11thEd, McGrawHill.
2. Damodaran, Aswath. (2007). Corporate Finance Theory and Practice, 2ne Edition, Wiley.
3. Ross, Westerfield, Jaffe, Kakan. (2014). Corporate Finance, 10th Edition, McGraw Hill.
57
CEC52114
PRINCIPLES OF INVESTMENT BANKING
[SC/Paper D: 4 Credits, 60 Contact Hours]
This course is complementary to the course Principles of Modern Banking. While a bank operates in the
financial market primarily as proprietary trader and investor, an investment operates in the financial market
largely on behalf of the client. Worldwide the investment banks engage in investment banking, principal
transactions, asset management and securities services. In order to maximize revenue or profit amidst stringent
regulation, the banks create conglomerates or banking groups where an investment bank as a subsidiary member
of the conglomerate helps maximization of group benefits. In order to protect public trust a regulator often
restricts a bank to deal with complex securities using the deposits but such restrictions may not apply to an
investment bank.
Reference:
Handbook of Finance, Volume I, Frank Fabbozi (Ed.), John Wiley & Sons, Hoboken 2008
59
CEC52116
SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT
[SC/Paper E: 4 Credits, 60 Contact Hours]
Unit 1: Understanding Investments
Investment Environment: Investment Objectives and Constraints Markets and Instruments Trading of
Securities, Mutual Funds and Collective Investment Vehicles
Risk and Return: Measures of Return and Risk Calculating the Mean Historical Returns Expected Rate of
Return Measuring the Risk of Expected Returns Determinants of Required Rate of Return The Risk Free
rate Risk Premium Financial Premium
Unit 2: Valuation of Investments
Fixed Income Instruments: Bond Returns and Prices Systematic and Unsystematic Risk involved in Fixed
Income Securities Present Value Model and Bond Valuation.
Equity Shares: Dividend Discount Models Free Cash Flow to Equity Discount Models Free Cash Flow to
the Firm Cost of Capital Approach Firm Valuation Estimating Equity Value per Share.
Unit 3: Security Analysis
Economic Analysis Economic Forecasting and Stock Investment Decision Forecasting Techniques
Industry Analysis Industry Life Cycle Structural Analysis Techniques for Evaluating Relevant Industry
Factors Sources of Information for Industry Analysis and Company Analysis Analysis of Financial
Statements.
Unit 4: Introduction to Portfolio Analysis
Characteristics of Opportunity Set Decision under Certainty Characteristics of Portfolio Diversification
Risk and Return Characteristics Minimum Variance Portfolio Efficient Frontier
Unit 5: Portfolio Analysis
Single Index Model Beta Estimation and Forecasting Portfolio Optimization Markowitz Risk Return
Optimization Sharpes Optimization Lintners Method of Short Sales
Unit 6: Models of Equilibrium in Capital Markets
Standard Capital Asset Pricing Model Non-standard CAPM Empirical tests Arbitrage Pricing Theory
Fama- French Three Factor Model.
60
CEC52718
DISSERTATION II
[MDS: 4 Credits, 60 Contact Hours]
This is a sequel to Dissertation I of first year. Students who have already started their work in second semester,
will submit their final report on dissertation during this semester. The students will work on data collection,
analysis, dissertation writing under the supervision of any faculty member.
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ECONOMICS
TIME TABLE
TIME TABLE FOR BA/B.Sc. ECONOMICS Semester I*
Code Course
CEC31101 INTRODUCTORY MICROECONOMICS