DEPARTMENT OF ECONOMICS Faculty of Arts The Maharaja Sayajirao University of Baroda

Master of Arts Programme of Studies

ECONOMICS 4-Semester Course 3 Credit Course per paper per semester Maximum 45 hours per paper

Course Titles and Detailed Syllabi [w.e.f. 2013-2014]

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Titles of Courses Semester Semester-01 (06 + 01)

Semester-02 (06 + 01)

Semester-03 (06 + 01)

Semester-04 (06 + 01)

Course No. CORE - 01 CORE - 02 CORE - 03 CORE - 04 CORE - 05 INTD ELCTV - 01 PROJECT - 01 CORE - 06 CORE - 07 CORE - 08 CORE - 09 CORE - 10 INTD ELCTV - 02 PROJECT - 02 CORE - 11 CORE - 12 CORE - 13 CORE - 14 CORE - 15 INTD ELCTV - 03 PROJECT - 03 CORE – 16 CORE – 17 CORE – 18 CORE – 19 CORE – 20 INTD ELCTV – 04 PROJECT – 04

Course Title Microeconomic Analysis – I Macroeconomic Analysis – I Mathematical Methods in Economics Environmental and Natural Resource Economics (a) Agricultural Economics OR (b) Financial Institutions and Markets Structure of Indian Economy Project Work Microeconomic Analysis – II Macroeconomic Analysis – II Statistical Methods for Economic Analysis Indian Economic Policy (a) Econometrics OR (b) Economics of Insurance Urban Economics Project Work Development Economics Theoretical Foundations of Public Economics International Trade Welfare Economics (a) Economics of Gender and Development OR (b) Industrial Economics Gujarat Economy Project Work Economics of Growth and Structural Change Fiscal Federalism – With Reference to India International Finance and Monetary System Economics of Human Resources (a) Economics of Infrastructure OR (b) Mathematical Economics Rural Economics Project Work

28 X 3 = 84

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Page No. 03 05 07 09 11 13 15 16 18 20 21 23 25 27 29 31 33 35 37 39 40 41 43 44 46 48 49 51

M.A. ECONOMICS : SEMESTER I Core 01 MICROECONOMIC ANALYSIS – I [Paper Code : AM1C01EC0N] Objectives: At the end of this course students will be able to : Comprehend in adequate details and depth the micro economic models. Develop insight about the decision making process of micro economic units. Explain Economic theory in a mathematical frame work. Apply microeconomic tools to amylase and explain real world economic phenomena. Develop skill of policy formulation for economic decision at a micro level. Course Outline UNIT I : Demand Analysis

[11 Hours]

Theories of demand; Cardinal Utility Analysis of Demand, Indifference curves and their applications; Revealed Preference theory; Marshall & Hick’s Concept of Consumer Surplus; Concept and measurement of elasticities of demand, Bandwagon, Snob, and Veblen Effects, Statistical Demand Curves, Linear Expenditure System. UNIT II : Theory of Production and Costs

[12 Hours]

Production function - short period and long period; Law of variable proportion and returns to scale; Iso-quant - Least cost combination of inputs; Returns to factors; Economies of scale; Multi product firm; Elasticity of substitution; Euler's theorem; Technical progress and production function; Cobb-Douglas production function. UNIT III : Price and Output Determination

[10 Hours]

Review of Market Structure - Oligopoly - Non-collusive (Cournot, Bertrand, Edgeworth, Chamberlain, kinked demand curve and Stackleberg's solution) and collusive (Cartels an mergers, price leadership and basing point price system) models; Price and output determination under monopsony and bilateral monopoly; Critical evaluation of marginal analysis. UNIT IV : Behavioural Theories of Firm

[12 Hours]

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

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Modes of Transaction Lecture method is generally used but along with it as and when required, discussion method would be used. Activity assignments (that is practical numerical problems) may be given to the students and assignment method would help them to learn by doing. Students may be given training by use of computer. Power Point presentation may be used for delivering lectures. References (All Latest Editions wherever applicable) 1.

Chauhan S.P.S. (2009), Microeconomics – An Advanced Treatise (1st Edition), PHI Learning Private Limited, New Delhi. 2. Dominick Salvatore (2003), Microeconomics – Theory and Applications (4th Edition), Oxford University Press, New Delhi. 3. Jeffrey M. Perloff (2001), Microeconomics (2nd Edition), Pearson Education Asia, New Delhi. 4. Koutsoyiannis A. (1979), Modern Microeconomics, (2nd Edition) Macmillan Press, London. 5. Kreps David M. (1990), A course in Microeconomics Theory, Princeton University Press, Princeton. 6. Layard P.R.G. and A.W. Walters (1976), Microeconomics Theory, Mcgraw Hill, New York. 7. Robert S. Pindyck & Daniel L. Rubinfeld (2002), Microeconomics (5th Edition), Pearson Education Asia, New Delhi. 8. Sen A. (1999), Microeconomics Theory and Applications, Oxford University Press, New Delhi. 9. Stigler G. (1996), Theory of Price, (4th Edition), Prentice Hall of India, New Delhi. 10. Varian H. (2000), Microeconomic Analysis, W.W. Norton, New York.

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M.A. ECONOMICS : SEMESTER I Core 02 MACROECONOMIC ANALYSIS – I [Paper Code : AM1C02EC0N] Objectives: To enable the students think independently about real world situation and help them master the basic analytical tools. To provide an integrated view of macroeconomics and to make close contact with current macroeconomics events. Course Outline: UNIT I : Introduction, Measurement and Framework for Aggregative Analysis [11 Hours] The development of macroeconomics – subject matter and fundamental concepts – Aggregation, Macro economic equilibrium and Micro foundations – circular flow of Income and expenditure – Macroeconomic Goals and Instruments - Income concepts – Income measurements – Nominal and Real Income – Measured and PPP Income – Income and Human development Index – Income and welfare UNIT II : Classical Economics and Keynesian Revolution [11 Hours] Salient features of classical paradigm – Determinates of output and employment – working of goods, Money and commodity market – salient features of Keynes’s Paradigm – Critique of classical system – Role of Aggregate Demand and components of Aggregate Demand – Consumption function, savings function and Investment multiplier – Simon Kuznets findings – absolute income, relative income, Life cycle and Permanent income – Investment – Determinants of Investment. UNIT III : Supply and Demand for Money [11 Hours] A behavioural model of money supply determination, RBI approach to money supply; High powered money and money multiplier; budget deficits and money supply; money supply and open economy; control of money supply. Classical approach to demand for money -- Quantity theory approach, Fisher's equation, Cambridge quantity theory, Keynes's liquidity preference approach, transaction, precautionary and speculative demand for money --- aggregate demand for money; Equilibrium of demand and supply of money. UNIT IV : Neo-classical Keynesian Synthesis and New Classical Macroeconomics [12 Hours] Neo-classical and Keynesian views on interest; The IS-LM Models; Extension of ISLM model with government sector; Relative effectiveness of monetary and fical policies; Extension of IS-LM models with labour market and flexible prices : PostKeynesian approaches to demand for money --- Patinkin and the Real balace Effect, approaches of Baumol and Tobin; Friedman and the modern quantity theory; Crisis in Keynesian economics and the revival of monetarism. 5

Modes of Transaction The major part of the course work will be taught by the lecture method but wherever necessary, discussion on different practical issues will also be employed. Some portion of the course work would be given to students in the form of assignments. Audio-visual aids in terms of Power Point presentations of assignments by students would be encouraged. Teachers will also be encouraged to use such audio-visual aids in explaining certain concepts. References (All Latest Editions wherever applicable) 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18.

Ackley, G (1978), Macroeconomics : Theory and Policy, Macmillan, New York. Branson, W.A. (1989), Macroeconomic Theory and Policy, (3rd Edition), Harper and Row, New York. Burda and Wyplosz (2009), Macroeconomics, Carlin Wendy & Soskice David (2007), Macroeconomics – Imperfection, Institutions and Policies – Oxford University Press. D’souza Errol (2008), Macroeconomics : Dorling Kindersley(India) Pvt. Ltd. Dornbusch R. Fischer S. & Startz R. (2004), Macroeconomics, Tata McGraw –Hill ed. G. S. Gupta (2004), Macroeconomics – Theory and applications, McGraw-Hill. Gordon, R.J. (1998), Macroeconomics, Addison Wesley. Harris, L. (1985), Monetary Theory, McGraw Hill, New York. Jha, R. (1991), Contempory Macroeconomic Theory and Policy, Wiley Eastern Ltd., New Dehli. Levacic, R. and Rebmann. A (2003), Macroeconomics – An introduction to Keynesian – Neoclassical controversies, - MacMillan Press Ltd. M. C. Vaish, Macroeconomics Mankiw, N.G. (2000), Macroeconomics, MacMillan Poindexter, J.C. (1981), Macroeconomics, The Dryden Press. Richard T. Froyen (2009), Macro Economics – Theories and Policies, Prentice Hall. Scarfe, B.L. (1977), Cycles, Growth and Inflation, McGraw Hill, New York. Shapiro, E. (1996), Macroeconomic Analysis, Galgotia Publications, New Delhi. Surrey, M.J.C. (Ed.) (1976), Macroeconomic Themes, Oxford University Press, Oxford.

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M.A. ECONOMICS : SEMESTER I Core 03 MATHEMATICAL METHODS IN ECONOMICS [Paper Code : AM1C03EC0N] Objectives The student will learn the mathematical tools for modeling economic behaviour. The mathematical economic models are used for predictive purposes planning and decision-making. At the end of the course the student will gain the insight of formulating simple mathematical models in economics on his/her own. Course Outline: UNIT I : Analysis of Equilibrium Economic Models:

[10 Hours]

Meaning of Equilibrium-Partial Market Equilibrium-General Market EquilibriumComparative Statics and Concept of Derivative-Partial Differentiation- Total Differential and Derivatives- Implicit Functions- Analysis of General Function Models UNIT II : Optimization and Equilibrium Analysis

[10 hours]

Optimum Values and Extreme Values-Higher Order Derivatives- Total Differential Version of Optimization—Optimization with Equality Constraints- Lagrange Multiplier Method. UNIT III : Mathematical Programming & Game Theory

[12 hours]

Linear programming and its applications – simplex method, duality and Shadow prices – Concept of a game; Strategies – simple and mixed; Prisoner’s DilemmaValue of a game; Saddle point solution; Mixed Strategies-Dominant Strategies. UNIT IV : Dynamic Models in Economics

[13 hours]

Derivatives of Exponential and Logarithmic Functions-Optimal Timing-Rate of Growth - Dynamics and Integration-Economic Applications of Integrals- Simple Difference & Differential Equations- Phase Diagrams. Modes of Transaction: Instruction will be based on the lecture method with interactive sessions. Assignments and tutorials on applications and practice problems will be extensively used. Wherever possible, practical problems will be implemented on computers.

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References (All Latest Editions wherever applicable) 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13.

Alpha C. Chiang and Kevin Wainwright, Fundamental Methods of Mathematical Economics, 4th ed. (New York, NY: McGraw-Hill, 2005). Anthony Martin & Norman Biggs, Mathematics for economics and finance: methods and modeling, Cambridge University Press, 2003 reprint. Chiang Alpha, Elements of Dynamic Optimization, Publisher: McGraw-Hill UK, 1992. Hands D. Wade, Introductory Mathematical Economics, Oxford University Press, 2003. Mavron Vassilis C. and Timothy N. Phillips, Elements of Mathematics for Economics and Finance, Springer, 2007 Michael Hoy John Livernois, Chris McKenna, and Ray Rees, Mathematics for Economics, 2nd ed. (Cambridge, MA: MIT, 2001) Michael Klein, Mathematical Methods for Economics, 2nd ed. (Reading, MA: Addison Wesley, 2001) Osborne, Martin J., An Introduction to Game Theory, Oxford University Press Inc, USA, 2003. Pemberton Malcolm & Nicholas Rau, Mathematics for Economists: An Introductory Textbook, 2nd ed. (Manchester, UK: Manchester University Press, 2006) Romp Graham, Game Theory - Introduction and Applications, Oxford University Press, 1997. Rosser Mike, Basic Mathematics for Economists, Second Edition, Routledge. Silberberg Eugene, The Structure of Economics: A Mathematical Analysis 3rd ed., (3rd ed. with Wing Suen). McGraw-Hill Turkington Darrell Mathematical Tools for Economics, Publisher: Blackwell Publishing, 2006.

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M.A. ECONOMICS : SEMESTER I Core 04 ENVIRONMENTAL AND NATURAL RESOURCE ECONOMICS [Paper Code : AM1C04EC0N] Objectives: To provide an overview of the theoretical principles, policy instruments, and current practice of using economics in understanding environmental problems. To understand the market system, the externalities causing market failure, and the mechanisms to correct for externalities. To understand the basics of cost-benefit analysis and the problems associated with their measurements. To apply economic tools for evaluating environmental policies. To analyze economic incentives that lead to environmental improvement or degradation. To understand the legal institutions responsible for environmental protection. To analyse and understand effective natural resource management practices. Course Outline:

UNIT I : Fundamentals of Environmental Economics

[11 hours]

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

UNIT II : Environmental Valuation

[10 Hours]

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

UNIT III : Environmental Protection: Instruments & Legislation [10 Hours] Pollution prevention, control and abatement : Criteria for and classification of control instruments, cost-effectiveness – Command and control vs. market-based instruments, their merits and demerits – macroeconomic policies and environment – environmental policy in India : Legal institutions, legislations and instruments – Environmental Impact Assessment – WTO and environment. 9

UNIT IV : Economics of Natural Resource Use

[14 Hours]

Natural resource categories – economics of Water resource : characteristics, pricing, need for intervention in water supply – Mineral economics : theory of optimal extraction of a non-renewable resource. sustainability issues, resource discovery, backstop technologies – economics of Fishery – bionomic model of fishery, effortyield function, efficient rates of effort, fisheries management – Forestry economics – optimal rotation period, portfolio choice – Energy use and impact on health and natural resources. Modes of Transaction: The major part of the course work will be taught by the lecture method but wherever necessary, discussion on different practical issues will also be employed. Some portion of the course work would be given to students in the form of assignments. Audio-visual aids in terms of PowerPoint presentations of assignments by students would be encouraged. Teachers will also be encouraged to use such audio-visual aids in explaining certain concepts. Wherever feasible, students may be taken on field trips to gather data as well as observe the working of the economy. References (All Latest Editions wherever applicable) 1. 2.

Ahuja, H.L. – Advanced Microeconomic Theory, S. Chand & Co., New Delhi Barry C. Field. (2008) – Natural Resource Economics: An Introduction (second edition), Waveland Press. 3. Bhattacharya, R.N. (Ed.) (2001), Environmental Economics: An Indian Perspective, Oxford University Press, New Delhi. 4. George K.D. and Shorey J.(1978) - The Allocation of Resources, London, George Allen & Unwin Ltd. 5. Hartwick, J. and N. Oliweler – Economics of Natural Resource Use, Harper and Row Publishers, New York 6. Kneese, A. and J. Sweeny (eds.) (1985) – Handbook of Natural Resource and Energy Economics, North-Holland. 7. Kolstad, C.D. (2000), Environmental Economics, Oxford University Press, Oxford. 8. Nick, Hanley, Shogren and White (1997) – Environmental Economics, Macmillan. 9. Pearce, D.W. and R.K. Turner (1991), Economics of Natural Resource Use and Environment, Johns Hopkins University Press, Baltimore. 10. Perman, R. et. al. (1999) – Natural Resource and Environmental Economics, Longman, Pearson Education Ltd. 11. Tietenberg, Tom (1998) – Environmental Economics and Policy, California, Addision Wesley. 12. Tietenberg, Tom (2004) – Environmental and Natural Resource Economics, California, Pearson Education Ltd., New Delhi.

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M.A. ECONOMICS : SEMESTER I Core 05(a) AGRICULTURAL ECONOMICS [Paper Code : AM1C05EC0N] Objectives: At the end of the course the students will be able to understand: The application of economic theory to agricultural production. Labour market in the agriculture sector. The mechanics for agricultural produce distribution, agricultural prices and finance. Issues affecting agricultural growth in India. Course Outline: UNIT I : Agricultural Production and Productivity

[14 Hours]

Nature and scope of agricultural production economics; Agricultural production – Resource use and efficiency; Cost analysis and Production function analysis in agriculture; Factor combination and resource substitution; Size of farm and laws of returns – Theoretical and empirical findings; Farm budgeting and cost concepts; Behavior of agricultural prices – Cobweb Model. UNIT II : Factor Market and Modernization of Agriculture

[08 Hours]

Rural labour supply; interlocking of factor markets: Mobility of labor and segmentation labor markets; marginalization of rural labor; Nature, extent and trends in rural unemployment; Agricultural wages in India; Male-female wage differences; Analysis of the process of modernization of agriculture, Interdependence between agriculture and industry. UNIT III : Agriculture Sector Policies: Distribution, Prices and Finance [11 hours] Regulated Market and marketable surplus; marketing infrastructure, crop insurance; Pricing of inputs and role of subsidies Terms of trade between agricultural and non-agricultural prices; objectives of agricultural price policy, Food security in India and public distribution system, agricultural finance : NABARD and Co-operation. UNIT IV : Agricultural Growth in India

[12 Hours]

Recent trends in agricultural growth in India: Inter-regional variations in growth of output, Cropping pattern shifts; Role of Public investment and capital formation in Indian agriculture; Sustainable agriculture : Bio-technological practices and growth potential, Globalization & Indian Agriculture, WTO and its effect on Agriculture sector. Mode of Transaction : Lecture method and class discussions.

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References (All Latest Editions wherever applicable) 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16.

Bhaduri, A. (1984), The Economic Structure of Backward Agriculture, Macmillan, Delhi. Bilgrami, S.A.R. (1996), Agricultural Economics, Himalaya Publishing House, Delhi. Dantwala, M.L. et. al. (1991): Indian Agricultural Development Since Independence, Oxford & IBH, New Delhi. Desai Pranav K. (2010) – Agricultural Economics, Biotech books, New New Delhi. Government of India (1976), Report of the National Commission on Agriculture, New Delhi. Government of India, Economic Survey, (Annual), New Delhi. Gulati A. and R. Kelly (1999), Trade Liberalisation and Indian Agriculture, Oxford University Press, New Delhi. I. Sundar L. (2009), Principles of Agricultural Economics, Sarap Book Publisher, New Delhi. Joshi, P.C. (1975): Land Reforms in India: Trends and Prospects, Allied Publishers, Bombay. Kahion, A.S. and Tyagi D.S. (1983): Agriculture Price Policy in India, Allied Publishers, New Delhi. Rao, C.H. Hanumantha (1975), Agricultural Growth, Rural Poverty and Environmental Degradation in India, Oxford University Press, New Delhi. Reserve Bank of India, Report on Currency and Finance (Annual), Mumbai. Ruddar dutt and K.P.M. Sundaram (Latest Edition), Indian Economy, S. Chand & Co. Rudra, A. (1982), Indian Agricultural Economics : Myths and Reality, Allied Publishers, New Delhi. S. Subba Reddy and others (2004), Agricultural Economics, Oxford & IBH Publishing Co. Pvt. Ltd., New Delhi. Saini, G.R. (1979), Farm Size, Resource Use Efficiency and Income Distribution, Allied Publishers, New Delhi.

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M.A. ECONOMICS : SEMESTER I Core 05(b) FINANCIAL INSTITUTIONS AND MARKETS [Paper Code : AM1C05EC0N] Objectives: At the end of this course students will be able to : Understand the concepts products of Financial Institutions, Banks and their characteristics in details Evaluate and determine the Price, Value of Financial Assets Understand the nature and working of Financial institutions and markets Apply financial tools in investment and financial decision making Develop skills of policy design and development of financial firm markets. Course Outline: UNIT I : Nature and Role of Financial System

[12 Hours]

Money and Finance -- Money and near-money -- Financial intermediation and financial intermediaries -- The structure of the financial system -- Functions of the financial sector --- Indicators of financial development -- Equilibrium in Financial Markets -- Financial system and Economic Development UNIT II : Asset Prices and Valuation

[10 Hours]

Prices, risk and yield in financial Markets -- Determinants of Assets prices and interest rates -- Theories of interest rate determination --. Criteria to evaluate assets: risk and financial assets, types of risk, return on assets, Risk -- Return trade off --- Valuation of Securities. Term structure of Interest rates --- Risk Return and asset pricing --- Capital Asset Pricing Model (CAPM) and portfolio model – Arbitrage Pricing Model (APM). UNIT III : Banking and Financial Institution

[10 Hours]

Type of banking and non-bank financial intermediaries -- Profitability and efficiency of banks; Development banks -- role and functions; Investment banking and merchant banking; Financial sector reforms in India and Financial Policy. Definition and types of non-bank financial institutions; Their growth and impact on India's economic development, Measures taken to control their operations – Financial innovations – Asset securitization – asset and Liability Management for financial intermediaries. UNIT IV : Financial Markets

[13 Hours]

Role and structure of money market and capital market -- Call money market, Treasury bill market, Commercial bill market including commercial paper and certificate of deposit, Discount market -- Government securities market -- Markets for derivatives; futures and options, and other derivatives; types, uses and pricing of derivatives -- Primary and secondary market for securities; Mutual funds; Regulation-SEBI; Its impact on the working of capital market in India; IRDA and its role in Insurance markets -- Cost of capital -- capital structure -- dividend policy -Mergers and acquisitions. 13

Modes of Transaction Generally Class lectures along with discussion method will be used Practicals on financial valuation will be good for Learning. Students will be given assignments on important aspect of topics. Wherever possible, students will be taught financial Software’s. References (All Latest Editions wherever applicable) 1. Chandra Prasanna, Financial Management: Theory and Practice, Tata McGraw Hill. 2. Kohn Meir (Third Reprint): Financial Institutions and Markets, Tata McGraw Hill. 3. Pathak Bharati V. (2nd Edition): The Indian Financial System, Pearson. 4. Reilly and Brown (6th Edition): Investment Analysis and Portfolio Management, South Western.

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M.A. ECONOMICS : SEMESTER I Interdisciplinary Elective 01 STRUCTURE OF INDIAN ECONOMY [Paper Code : AM1I01EC0N] Objectives: At the end of the course the students will be able to: understand many aspects of the Indian economy particularly economic trends and sector composition, phenomena/ issues involved in development of Indian economy. Understand meaning of different terms and concepts used in various reports relating to Indian economy and able to analyze the issues/problems and in a position to suggest some solutions for the same. Participate in debate on developments in Indian economy. Course Outline: UNIT I : Introduction

[12 Hours]

Indian economy on the eve of Independence, India as mixed economy and its features, India in global economy, National income-various concepts, trends in national income, growth, structure, and constraints in growth, growth and economic development. Poverty and poverty alleviating policy measures. UNIT II : Agriculture

[11 Hours]

Role of agriculture in Indian economy, cropping pattern, irrigation, green revolution – meaning, achievements/ failures, national agricultural policy 2000, rural credit- trends and constraints. UNIT III : Industry and Infrastructure

[11 Hours]

Industry at the time of independence and role of industrialization, industrial growth pattern Large, medium and small scale industry, New Industrial policy, SMEs Privatization, Industrial finance – current trends and issues, Infrastructures in Indian economy-energy, transport and communication. UNIT IV : Other Current Issues

[11 Hours]

India’s population- size, growth rate, composition by sex, and age, density and urbanization trends, Occupational structure and work force, Quality of population- Human Development in India-(HDI,GDI, HPI)-Social sectors –education and health related issues. Mode of Transaction: Major part of course will be taught by lecture method, class discussion and experience sharing. Students will be given course work in the form of assignments and cases.

References [All Latest Editions wherever applicable] 1. 2. 3. 4.

Datt Ruddar and K P M Sundharam, Indian Economy, S. Chand. latest edition Dhingra I. C., Indian Economy, S. Chand latest edition Agarwal A N., Indian Economy S. P. Verma., Infrastructure in India’s Development-power, Transport and Communication, Kanishka Publishers & distributors, New Delhi 5. UNDP, Human Development Report, latest issue, Palgrave MacMillan

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M.A. ECONOMICS : SEMESTER II Core 06 MICROECONOMIC ANALYSIS – II [Paper Code : AM2C06EC0N] Objectives: At the end of this course students will be able to: Comprehend in adequate details and depth the micro economic models. Develop insight about the decision making process of micro economic units. Explain Economic theory in a mathematical frame work. Apply microeconomic tools to amylase and explain real world economic phenomena. Develop skill of policy formulation for economic decision at a micro level. Course Outline: UNIT I : Theory of Distribution

[10 Hours]

Neo-classical approach - Marginal productivity theory; Product exhaustion theorem; Elasticity of technical substitution; technical progress and factor share; Theory of distribution in imperfect product and factor markets; Determination of rent, wages and profit. UNIT II : Welfare Economics

[12 Hours]

Pigovian welfare economics; Pareto optimal conditions; Value judgments; Social welfare functions; Compensation principle; Inability to obtain optimum welfare Imperfections, market failure, decreasing costs, uncertainty and non existence and incomplete markets; Theory of second best, Welfare implications of inter-temporal consumption. UNIT III : Economics of Uncertainty

[13 Hours]

Consumer’s and Producer’s choice under uncertainty - describing risk, reducing risk, Demand for risky assets -Market with asymmetric information- quality uncertainty and the market for "Lemons", Market signaling, Moral hazard, Principal agent problem, Asymmetric information in labour market; Efficiency wage theory, Investment analysis. UNIT IV : General Equilibrium Analysis

[10 Hours]

Partial and general equilibrium, Walrasian excess demand and input output approaches to general equilibrium, existence, stability and uniqueness of equilibrium and general equilibrium, coalitions and monopolies; Production without consumption - one sector model, homogeneous functions, income distribution. 16

Modes of Transaction: Lecture method is generally used but along with it as and when required, discussion method would be used. Activity assignments (that is practical numerical problems) may be given to the students and assignment method would help them to learn by doing. Students may be given training by use of computer. Power Point presentation may be used for delivering lectures. References (All Latest Editions wherever applicable) 1.

Chauhan S.P.S. (2009), Microeconomics – An Advanced Treatise (1st Edition), PHI Learning Private Limited, New Delhi. 2. Dominick Salvatore (2003), Microeconomics – Theory and Applications (4th Edition), Oxford University Press, New Delhi. 3. Jeffrey M. Perloff (2001), Microeconomics (2nd Edition), Pearson Education Asia, New Delhi. 4. Koutsoyiannis A. (1979), Modern Microeconomics, (2nd Edition) Macmillan Press, London. 5. Kreps David M. (1990), A course in Microeconomics Theory, Princeton University Press, Princeton. 6. Layard P.R.G. and A.W. Walters (1976), Microeconomics Theory, Mcgraw Hill, New York. 7. Robert S. Pindyck & Daniel L. Rubinfeld (2002), Microeconomics (5th Edition), Pearson Education Asia, New Delhi. 8. Sen A. (1999), Microeconomics Theory and Applications, Oxford University Press, New Delhi. 9. Stigler G. (1996), Theory of Price, (4th Edition), Prentice Hall of India, New Delhi. 10. Varian H. (2000), Microeconomic Analysis, W.W. Norton, New York.

17

M.A. ECONOMICS : SEMESTER II Core 07 MACROECONOMIC ANALYSIS – II [Paper Code : AM2C07EC0N] Objectives: At the end of this course, the student, To enable the students think independently about real world situation and help them master the basic analytical tools. To provide an integrated view of macroeconomics and to make close contact with current macroeconomics events. Course Outline: UNIT I : Unemployment & Inflation: Causes & Consequences [11 Hours] Unemployment – definition and concepts – causes & consequences of unemployment, Inflation – definition and concepts – causes & consequences of inflation, Aggregate supply function – Philips curve – Philips curve vis-à-vis Aggregate supply function – price expectation models – Macro Economic policies. UNIT II : New Classical and New Keynesian Models [11 Hours] New classical position – a review of Keynesian position – The Rational Expectation concept and its implications – New classical policy conclusions. New Keynesian position – Sticky price (Menu Cost) Models – Efficiency wage Models – Insider – Outsider models and Hysteresis. A summary of Macro Economic Models. UNIT III : Open Economy Macro Economics and Business Cycles [11 Hours] Important concepts of open Economy – Macro Economic GAPS – Determinants of Trade Balance and Balance of Payments – Foreign Exchange rate system and Determinants of foreign Exchange rate – Monetary and Fiscal Policy in the open economy and the Mundell - Fleming model - Business cycles – definition and characteristics – Theories of Schumpeter, Kaldor, Samuelson and Keynes - control of Business cycles and stabilization policies. UNIT IV : Economic Growth [12 Hours] Determinants of Income and growth – Harrod – Domar Model – Solow Model – Endogenous Growth theory – Economic Reforms, institution, governance and Economic growth in India- Growth Accounting china and India. Modes of Transaction: The major part of the course work will be taught by the lecture method but wherever necessary, discussion on different practical issues will also be employed. Some portion of the course work would be given to students in the form of assignments. Audio-visual aids in terms of Power Point presentations of assignments by students would be encouraged. Teachers will also be encouraged to use such audio-visual aids in explaining certain concepts. 18

References (All Latest Editions wherever applicable) 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18.

Ackley, G (1978), Macroeconomics : Theory and Policy, Macmillan, New York. Branson, W.A. (1989), Macroeconomic Theory and Policy, (3rd Edition), Harper and Row, New York. Burda and Wyplosz (2009), Macroeconomics, Carlin Wendy & Soskice David (2007), Macroeconomics – Imperfection, Institutions and Policies – Oxford University Press. D’souza Errol (2008), Macroeconomics : Dorling Kindersley(India) Pvt. Ltd. Dornbusch R. Fischer S. & Startz R. (2004), Macroeconomics, Tata McGraw –Hill ed. G. S. Gupta (2004), Macroeconomics – Theory and applications, McGraw-Hill. Gordon, R.J. (1998), Macroeconomics, Addison Wesley. Harris, L. (1985), Monetary Theory, McGraw Hill, New York. Jha, R. (1991), Contempory Macroeconomic Theory and Policy, Wiley Eastern Ltd., New Dehli. Levacic, R. and Rebmann. A (2003), Macroeconomics – An introduction to Keynesian – Neoclassical controversies, - MacMillan Press Ltd. M. C. Vaish, Macroeconomics Mankiw, N.G. (2000), Macroeconomics, MacMillan Poindexter, J.C. (1981), Macroeconomics, The Dryden Press. Richard T. Froyen (2009), Macro Economics – Theories and Policies, Prentice Hall. Scarfe, B.L. (1977), Cycles, Growth and Inflation, McGraw Hill, New York. Shapiro, E. (1996), Macroeconomic Analysis, Galgotia Publications, New Delhi. Surrey, M.J.C. (Ed.) (1976), Macroeconomic Themes, Oxford University Press, Oxford.

19

M.A. ECONOMICS : SEMESTER II Core 08 STATISTICAL METHODS FOR ECONOMIC ANALYSIS [Paper Code : AM2C08EC0N] Objectives: At the end of the course The student will grasp the basic methods of statistical inference economic analysis. The approach to hypothesis testing and estimation will be understood. Course Outline: UNIT I : Elements of Probability Theory

[08 Hours]

Probability: Laws of addition and multiplication: Conditional probability and concept of interdependence; Elementary concept of random variable; Mathematical Expectations, Properties (without derivations) of Binomial, Poisson and Normal distributions, Bayse Theorem. UNIT II : Sampling and Sampling Distributions

[12 Hours]

Basic concept of sampling – random and non-random sampling design processRandom sampling methods-sampling and non-sampling errors-sampling distribution; Central Limit Theorem-sampling distribution of sample proportion. UNIT III : Estimation and Hypothesis Testing

[15 Hours]

Concept of an estimator and its sampling distribution; Desirable properties of an estimator; Formulation of Statistical Hypothesis – Null and alternative; Goodness of fit; confidence intervals and level of significance; Hypothesis testing – based on z, t, Chi-Square and F tests; Type 1 and Type 2 errors. UNIT IV : Correlation and Regression Analysis [10 Hours] Meaning assumptions and limitations of simple correlation and regression analysis; Concept of the least squares and the line of regression; Standard error of estimateGoodness of fit-Prediction of individual values, Multivariate Regression Analysis – Estimation & Testing. Modes of Transaction: Instruction will be based on the lecture method with interactive sessions. Assignments and tutorials on applications and practice problems will be extensively used. Wherever possible, practical problems will be implemented on computers. References (All Latest Editions wherever applicable) 1. Anderson David R., Dennis J. Sweeney, Thomas A. Williams, (2004), Statistics for Business and Economics South-Western College Pub; 9th edition. 2. Gujarati Damodar, Essentials of Econometrics McGraw-Hill International edition. 3. Levine D & N.Bajpai (2010), Quantitative Analysis, Pearson. 20

M.A. ECONOMICS : SEMESTER II Core 09 INDIAN ECONOMIC POLICY [Paper Code : AM2C09EC0N] Objectives: This course will enable the students with an understanding of The Planning structure and it’s implementation process Policy reforms in financial sector, trade, environment and infrastructure Policy and performance issues in agriculture and industry sectors. Course Outline: UNIT I : Economic Planning and Policy

[10 Hours]

Objectives and Strategy of Planning; Failure and achievements of Planning; Planning and Policy interface; Decentralized Planning; Fiscal federalism in India;73rd and 74th amendment to the constitution; role of civil society as third sector in planning, Policies for Inclusive Growth. UNIT II : Economic Reforms and Policy Impacts

[14 Hours]

Financial sector reforms; Economic reforms, Trade Policy reforms and issues, Exchange rate policy; Foreign capital and MNCs in India; WTO and its impact on the economy; Monetary and Fiscal Policy reforms. UNIT III : Agriculture and Industry

[14 Hours]

India’s Agricultural Policy since Independence – agricultural pricing and price behavior; Terms of trade between agriculture and industry; Agricultural finance; Issues in food security and public distribution system – policies for sustainable agriculture. Growth and pattern of industrialization; Industrial policy; Public sector enterprises and their performance; Privatization and disinvestment debate. Small and Medium Enterprises. UNIT IV : Planning and Social Infrastructure

[07 Hours]

Policies reforms related to Energy, Telecom, Transport, etc. Social Infrastructure policies and labour market reforms, Environmental policy, and knowledge economy. Mode of Transaction: Lecture method and class discussion. References (All Latest Editions wherever applicable) 1. 2.

Ahluwalia, I. J. and I.M.D. Little (Eds.) (1999), India’s Economic Reforms and Development (Essay in honor of Manmohan Singh), Oxford University Press, New Delhi. Alagh Y.K. [ed.] State of Indian Farmer: A Millennium Study, Various volumes. Academic Foundation 21

3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24.

Bardhan, P.K. (9th Edition) (1999), The Political Economy of Development in India, Oxford University Press, New Delhi. Brahmananda, P R and V R Panchmukhi (Eds) (2001), Development Experience in the Indian Economy – Inter State Perspective, Bookwell, Delhi. Carl Dahlman and Anuja Utz: (2005), India and the Knowledge Economy: Leveraging, Strengths and opportunities, World Bank Publication. Chakravarty, S. (1987), Development Planning: The Indian Experience, Oxford University Press, New Delhi. Dantwala, M.L. (1996), Dilemmas of Growth: The Indian Experience, Sage Publication, New Delhi. Datta, R (Ed.) (2001), Second Generation Economic Reform in India, Deep and Deep Publication, New Delhi. GOI Economic Survey latest issue Government of India, Economic Survey (Annual), Ministry of Finance, New Delhi. India Infrastructure Report Oxford University Press latest issue. Ishwar Dhingra: Indian Economy. Latest edition, Sultan Chanel Publication. Jain, A K (1986), Economic Planning in India, Ashish Publishing House, New Delhi. Jalan, B (1996), India’s Economic Policy - Preparing for Twenty First Century, Penguin Books, New Delhi. Jalan, B. (1992), The Indian Economy- Problems and Prospects, Penguin Books, New Delhi. Joshi, V. and I.M.D. Little (1999), India: Macroeconomic and Political Economy, 1964-1991, Oxford University Press, New Delhi. Kapila Uma:[ed.] Indian Economy since Independence : Academic Foundation [latest edition] Parikh, K.S. (1999), India Development Report – 1999-2000, Oxford University Press, New Delhi. Rao V.M. (1996) Agricultural Development with a Human face, EPW 31(26): June 29. Reserve Bank Of India, Report on Currency and Finance, (Annual). Sandesara, J.C. (1992), Industrial Policy and Planning 1947-1991: Tendencies Interrelations and Issues, Sage Publication, New Delhi. Sen, R.K.and B. Chatterjee (2001), Indian Economy: Agenda for 21st Century (Essays in honour of Prof P.R. Brahmanda), Deep and Deep Publication ,New Delhi. Tapas Majmudar (ed)( 1993) Nature, Man and The Indian Economy Ed., Oxford. Vidyanathan A. (1996) Agricultural Development: Imperatives of Institutional Reforms, EPW 31(35/37) September 1996.

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M.A. ECONOMICS : SEMESTER II Core 10(a) ECONOMETRICS [Paper Code : AM2C10EC0N] Objectives: At the end of this course students will be able to: Comprehend in adequate detail various econometric techniques. Develop understanding about the economic models and their uses. Understand the relation between economic theory and econometric models. Develop skill to formulate an econometric model and test for the results. Course Outline: UNIT I : Econometrics – An Introduction

[12 Hours]

Nature and scope of econometrics; Simple and general linear regression model – Assumptions, Estimation using OLS method; properties of estimators; GaussMarkov theorem; Analysis of variance approach and its application in regression analysis; Estimation of non-linear equations. Multivariate regression analysis – matrix approach UNIT II : Violation of Classical Model Assumptions

[11 Hours]

Single equation model: Problems of Heteroscedasticity; Multicollinearity – Method of Principal Component Analysis; Auto-correlation; Problems of specification error; Errors of measurement – Applications. Multiequation Model: Simultaneous equation bias and inconstancy of OLS estimators – Alternative methods. UNIT III : Qualitative Independent and Dependent Variables

[11 Hours]

Types of Qualitative variables; Dummy variable technique – Testing structural stability of regression models comparing two regressions, interaction effects, seasonal analysis, piecewise linear regression, Regression with dummy dependent variables; The LPM, Logit, Probit, and Tobit models – Applications. UNIT IV : Dynamic Econometric Models and Time Series

[11 Hours]

Autoregressive and distributed lag models – Koyak model, Partial adjustment model, adaptive expectations; Instrumental variables; Problem of auto-correlation – Application; Almon approach to distributed-lag models; Error Correction Mechanism, Causality tests. Time series analysis: Stationarity, unit roots, cointegration-spurious regression, Dickey-Fuller test, Random walk model, Forecasting in economics.

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Modes of Transaction: Lecture method is generally used but along with it as and when required, discussion method would be used. Activity assignments with numerical problems be given to the students and assignment method would help them to learn by doing. Students may be introduced to various Statistical and Econometric Software. Power Point presentation may be used for delivering lectures. References (All Latest Editions wherever applicable) 1. 2.

Baltagi, B.H. (1998), Econometrics, Springer, New York. Dongherty, C. (1992), Introduction to Econometrics, Oxford University Press, New York. 3. Goldberger, A.S. (1998), Indtroductory Econometrics, Harvard University Press, Cambridge, Mass. 4. Gujarati, D.N., Basic Econometrics, (2nd Edition), McGraw Hill, New Delhi. 5. Kennedy, P. (1998), A guide to Econometrics (4th Edition), MIT Press, New York. 6. Kmenta, J. (1997), Elements of Econometrics (Reprint Edition), University of Michigan Press, New York. 7. Koutsoyiannis, A. (1977), Theory of Econometrics (2nd ed.), The Macmillan Press Ltd. London. 8. Krishna, K.L. (Ed.) (1997), Econometric Applications in India, Oxford University Press, New Delhi. 9. Maddala, G.S. (Ed.) (1993), Econometric Methods and Application (2 Vols), Aldershot U.K. 10. Pindyck, R.S.and Rubinfeld, D. L. (1998), Econometric Models and Economic Forecast, McGraw Hill, New York. 11. Ramu Ramanathan (2002), Introduction to Econometrics with Applications (5thed), Cengage Learning India Pvt Ltd, New Delhi. 12. Theil, H. (1981), Introduction to Econometrics, Prentice Hall of India, Delhi.

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M.A. ECONOMICS : SEMESTER II Core 10(b) ECONOMICS OF INSURANCE [Paper Code : AM2C10EC0N] Objectives: At the end of course student will be able to: understand the meaning of various risks, economic security and insurance. Student will be able to analyze risk and identify relevant different insurance products as a solution to risk. familiarize the students with various type of insurance –life and non-life- and insurance policies. understand IRDA’s regulation and developmental activity and its rationale. analyze and evaluate various aspect of working of insurance industry as a whole such as reforms in insurance industry, life and non-life segments, underwriting/rating process, distribution channel, various insurance products/pension products and regulatory environment.

Course Outline: UNIT I : Concepts of Risk and Insurance Perspective

[12 Hours]

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

[10 Hours]

Feature of insurance contract in life and non-life insurance, indemnity, insurable interest. contribution and subrogation, Representation, utmost good faith, material facts, Adverse selection and moral hazard, physical hazard, moral hazard, standard risk. UNIT III : Life Insurance and Health Insurance

[10 Hours]

Fundamentals of life and health insurance, mortality tables and plans of life insurance, underwriting and rate making of insurance risk, basics of premium calculation, classification of policies- individual and group insurance for life and health risk. Health Insurance Valuation and distribution of surplus. UNIT IV : General and Miscellaneous Insurance

[13 Hours]

Definition of general insurance, types of general insurance - fire insurance, motor insurance, marine insurance and other miscellaneous insurance. Selection of risk, rate making and calculation of premium, various distribution channel of insurance, technology development and general insurance. Pension plans-basics principles of retirement planning and pension plans, pension plans in India. Regulation of insurance in India- IRDA act covering regulatory provisions for brokers/agents/ insurance firms. other Acts applicable to insurance contract.

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Mode of Transaction: The major part of the course will be delivered through class lecture method and lab work. However some topics will be covered by student assignments/ practical exercises on computers. Students will also have exposures to workshops / experts’ lectures on select issues of insurance. Students may also undertake an industry visit and collect primary data on working of insurance activity. References (All Latest Editions wherever applicable) 1. Dorfman Mark S. (2009) : Introduction to Risk Management and Insurance, 9th edition, Prentice Hall of India, New Delhi. 2. Institute of Certified Risk and Insurance Manager (ICRIM) (2002) : Reinsurance Text Book, Hyderabad. 3. Institute of Certified Risk and Insurance Manager (ICRIM) (2002) : Risk and Insurance Text Book, Hyderabad. 4. Institute of Certified Risk and Insurance Manager (ICRIM) (2002): Actuarial Principles and Practice Text Book, Hyderabad. 5. Narayanan H (2008) : Indian Insurance - A Profile, Jaico Books Mumbai. 6. P K Gupta (2005) : Fundamentals of Insurance, Himalaya Publishing House. 7. Rejda George E : Principles of Risk Management and Insurance, Pearson Education. 8. Vaughan E. J and Therese Vaughan, Essentials of Risk Management and Insurance, John Wiley and Sons. 9. Vaughan E. J and Therese Vaughan, Fundamental of Risk Management and Insurance, John Wiley and Sons. Web references: www.irda.org www.nai.org www.insuranceinstituteofindia.com www.lifeinsurancecouncil.org www.gicouncil.in www.swissre.com www.munichre.com

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M.A. ECONOMICS : SEMESTER II Interdisciplinary Elective 02 URBAN ECONOMICS [Paper Code : AM2I02EC0N] Objectives: At the end of course the student will be able to : Get understanding of many economic problems / phenomena/ issues involved in urban areas and cities. Understand meaning of different terms and concepts of urban economics and able to analyze the urban problems and in apposition to suggest some solutions for the same. Participate in design and monitoring the developments in the urbanization and policy component of urban transport and congestion, municipal finances, housing and slums pollutions and quality of urban life etc. Course Outline: UNIT I : Introduction and Urbanization in India

[10 Hours]

Nature of Urban Areas, and why Urban Areas - Urban Policy Analysis - Definition of Urban Area, Growth of Urbanization and its Sources, Long term Trends in Urbanization - Classification of Cities by Size, Migration of Capital and Labour in Urban Areas, Policy Issues. UNIT II : Urban Land Use and Housing

[10 Hours]

Urban Population Density, Spatial Pattern in Urban Land Use, Land Use Controls Housing Policy in Urban Areas - Demand and Supply Gap and Slums - Public Policy to improve them - Slums and Urban Poverty, Urban Pollution - Clean Air and Property Values, Urban Infrastructure and Quality of Life in Urban Localities. UNIT III : Urban Finances [10 Hours] Revenues and Finances of Municipalities, Urban Infrastructures - Public-Private Partnership Model (PPP) in Urban Transport, Sanitation, Health, Education, Road and Bridges etc. Jawaharlal Nehru National Urban Renewal Mission (JNNURM) and its Objectives and Working, Urban Reforms. UNIT IV : Urban Transportation

[15 Hours]

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

27

Modes of Transaction: Major part of course will be taught by lecture method, class discussion and experience sharing. Students will be given course work in the form of assignments and cases. References (All Latest Editions wherever applicable) 1. Robert L Bish and Hugh O. Nourse (Latest Edition) - Urban Economics and Policy Analysis, MacGraw Hill. 2. Govt of India - Min. of Urban Development and Poverty Alleviation, ANNUAL REPORT 2010-11. 3. O’Sullivan Arthur (2003) - Urban Economics, MacGraw Hill. 4. Prasad B K Sarup (2003) - Urban Development, New Delhi. 5. Jain A. K. - Urban Housing & Slums, Read Worthy, New Delhi. 6. Harvey Jack Ernie J (2005) - Urban Land Economics, Palgrave. 7. Chaudhuri Kameshwar (2000) - Globalisation, Governance Reforms and Development in India, Sage.

28

M.A. ECONOMICS : SEMESTER III Core 11 DEVELOPMENT ECONOMICS [Paper Code : AM3C11EC0N] Objectives: At the end of this course students will be able to: Understand the interdependence between social and economic factors for development. Comprehend in adequate detail various processes of development. Develop understanding about the economic development theories and their applications. Understand the relation between economic theory and economic development. Course Outline: UNIT I : Social and Institutional Aspects of Development

[12 hours]

Economic Growth and Development; Development and underdevelopment – perpetuation of underdevelopment; Economic and non economic factors affecting economic growth; Measuring development and development gap – per capita income, Human development index and other indices of development and quality of life. Human resource development; Population problem and growth patterns and changes – Demographic dividend; income inequality - Poverty- undernourishment; poverty and environment linkages. Role of capital, labor and technology in economic development. UNIT II : Historical Aspects of Development

[11 hours]

Historical approach to economic development – Kuznets - Differing initial conditions. Linear stage theories-Rostow; Neoclassical dependence theories; Dualistic theory – Theory of unlimited supply of labour – Lewis- Fei Rannis; Urban – Rural migration; Urban informal sector. Economic development and institutions – markets and market failure, state and state failure. UNIT III : Economic Development Theories

[11 hours]

Classical theory of development – contributions of Adam Smith, Ricardo and Malthus; Karl Marx and development of capitalist economy; Schumpeter and capitalist development; Structural analysis of development; Imperfect market paradigm. UNIT IV : Approaches to Development

[11 hours]

Development Strategy; Partial theories of growth and development – Vicious circle of poverty, Big push, Balanced growth, Unbalanced growth, Critical minimum effort thesis, Low income equilibrium trap; Typology of Dualism – Institutional, Technical, Geographical, Ecological and Social; Savings and capital formation 29

Modes of Transaction: Lecture method is generally used but along with it as and when required, discussion method would be used. Activity assignments be given to the students and assignment method would help them to learn by doing. Power Point presentation may be used for delivering lectures. References [All Latest Editions wherever applicable] 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21.

Adelman I (1961), Theories of Economic Growth and Development, Stanford University Press, Stanford. Barrow R. & Sala-Xavier Martin (2007): Economic Growth, Prentice Hall of India. Behrman, S and T.N. Srinivasan (1995), Handbook of Development Economic Vol. 3, Elsevier, Amsterdam. Brown M. (1966), On the Theory and Measurement of Technical Changes, Cambridge University. Chenery H and T N Srinivasan (Eds) (1989), Handbook of Development Economics, Vols. 1 & 2, Elsevier, Amsterdam. Chenery H B et. (Eds) 91974), Redistribution of Growth, Oxford University Press, Oxford. Dasgupta P 1993), An Enquiry in to Well-being and Destitution, Clarendon Press, Oxford. Ghatak S (1986), An Introduction to Development Economics, Allen and Unwin, London. Gillis M., D, H. Perkins, M. Romer and D.R. Sndograss (1992), Economics of Development (3rd Edition), W. W. Norton, New York. Gimmell N. (1987), Survey in Economic Development, Blackwell, Oxford. Higgins B. (1959), Economic Development, W. W. Norton, New York. Hogendorn J (1996), Economic Development, Addison, Wesley, New York. Kahkonon S. and M. Olson (2002), A New Institutional Approach to Economic Development, Vistaar. Kindelberger C.P. (1977), Economic Development (3rd Edition), McGraw Hill, New York. Meier G.M. (1995), Leading Issues in Economic Development (6th Edition), Oxford University Press, Oxford. Myint H (1971), Economic Theory and Underdeveloped Countries, Oxford University Press, New York. Myint, Hla (1965), The Economics of Underdeveloped Countries, Preager, New York. Thirwal A.P. (1999) (6th Edition), Growth and Development, McMillan, U.K. Todaro M.P. (2003), (8th Edition), Economic Development, Longman, London. Weil David N.(2009), (2nd Edition), Economic Growth, Perarson Education. Yujiro Hayami and Yoshihisa Godo (2005), (3rd edition) Development Economics from Poverty to Wealth of Nations, Oxford University Press.

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M.A. ECONOMICS : SEMESTER III Core 12 THEORETICAL FOUNDATIONS OF PUBLIC ECONOMICS [Paper Code : AM3C12EC0N] Objectives: To acquaint and equip the students with the theoretical Foundation of the theory of Public Economics. Course Outline: UNIT I : Rationale for Public Policy & Public Choice

[11 Hours]

Market failure & Role of Government; Changing perspective: government as an agent for economic planning and development; Major function of Budgetary policy & Its objectives; private goods, public goods, and mixed goods, merit goods, demerit goods. Theory of club goods. Problems of preference revelation and aggregation of preferences; Voting systems; Arrow impossibility theorem; An economic theory of democracy. UNIT II : Theory of Public Goods & Public Expenditure

[12 Hours]

Allocation of resources – provision of public goods; Voluntary exchange models; Impossibility of decentralized provision of public goods (contributions of Samuelson and Musgrave); Demand-revealing schemes for public goods. Wagner’s law of increasing state activities; Wiseman-Peacock hypothesis Colin Clark’s Theory other recent theories. Reforms in expenditure budgeting; Programme budgeting, zero base budgeting, Gender based budgeting. UNIT III : Taxation

[11 Hours]

Theory of incidence; Alternative concepts of incidence – Allocative and equity aspects of individual taxes; Benefit and ability to pay approaches; Theory of optimal taxation; Excess burden of taxes; trade -off between equity and efficiency; Theory of measurement of dead weight losses; The problem of double taxation. UNIT IV : Public Debt

[11 Hours]

Classical view of public debt; Compensatory aspect of debt policy; Burden of public debt; Sources of public debt; Debt through created money; Automatic and Discretionary Fiscal stabilizers. Fiscal policy and its functions; various concepts of budgetary deficits and their implications. Mode of Instruction: Lecture Method

31

References [All Latest Editions wherever applicable] 1. Atkinson, A.B. and J.E. Siglitz (1980), Lectures on Public Economics, Tata McGraw Hill, New York. 2. Auerbach, A.J. and M. Feldstern (Eds.) (1985), Handbook of Public Economics, Vol.I, North Holland, Amsterdam. 3. Buchanan, J.M. (1970), The Public Finances, Richard D. Irwin, Homewood. 4. Goode, R. (1986), Government Finance in Developing Countries, Tata McGraw Hill, New Delhi. 5. Houghton, J.M. (1970), The Public Finance : Selected Readings, Penguin, Harmondsworth. 6. Jha, R. (1998), Modern Public Economics, Routledge, London. 7. Menutt, P. (1996), The Economics of Public Choice, Edward Elgar, U.K. 8. Musgrave, R.A. (1959), The Theory of Public Finance, McGraw Hill, Kogakhusa, Tokyo. 9. Musgrave, R.A. and P.B. Musgrave (1976), Public Finance in Theory and Practice, McGraw Hill, Kogakusha, Tokyo. Journal ArticlesAs per the instructions and suggestion of the teacher concerned.

32

M.A. ECONOMICS : SEMESTER III Core 13 INTERNATIONAL TRADE [Paper Code : AM3C13EC0N] Objectives: The objective of this paper is to introduce the students with various trade theories trade policies and their empirical relevance. The student will be able to analyze trade issues and evaluate policy option. Course Outline: UNIT I : International Trade Theories and their Empirical Verification [12 Hours] Classical Theory of Trade and its empirical verification, opportunity cost approach Heckscher-Ohlin model, Empirical Testing and Generalization to n factors and Goods – Kravis and Linder Theory of Trade, Product – Cycle Hypotheses and other modern theories of trade. UNIT II : Trade Theories, Technical Progress and Supply of Factors of Production [11 Hours] Economies of scale and Trade, Imperfect Competition and international trade, intraindustry trade, specific factor model. Rybczynski theorem, Technical progress and terms of trade, Factor price equalization theorem. UNIT III : Trade Policies

[11 Hours]

Instruments of Trade Policy Theory of tariff, Arguments for Protection - Tariff and rewards to factors of production, Stolper - Samuelson theorem- Metzler paradox, Political economy of trade policy, strategic trade policies. UNIT IV : Regional Block and World Trading System

[11 Hours]

The theory of customs union – European union, Regional Trading arrangements NAFTA, ASEAN, SAARC, WTO, UNCTAD and World Trading system, International Factor movements, Multinational firms. Mode of Transaction: This course will be delivered through lectures. However, there will be class discussions on recent developments. There will be practical exercises on numerical problems and assignments wherever possible.

33

References [All Latest Editions wherever applicable] 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13.

Bhagwati, J. (Ed.) (1981), International Trade, Selected Readings, Cambridge, University Press, Massachusetts. Carbough, R.J., International Economics, International Thempson Publishing, New York. Chacholiades, M. (1990), International Trade : Theory and Policy, McGraw Hill, Kogakusha, Japan. Dana, M.S. (2000), International Economics : Study, Guide and Work Book, (5th Edition), Routledge Publishers, London. Dunn, R.M. and J.H. Mutti (2000), International Economics, Routledge, London. Government of India: Economic Survey Annual Issue. Kenen, P.B. (1994), The International Economy, Cambridge University Press, London. King, P.G. (1995), International Economics and International Economic Policy : A Reader, McGraw Hill International, Singapore. Krugman, P.R. and M. Obstfeld (1994), International Economics : Theory and Policy, Glenview, Foresman. RBI Annual Report, Latest Issue. RBI: Report on Currency and Finance, Annual Issue. Salvatore, D., International Economics, Prentice Hall, Upper Saddle River, N.J. New York. Soderston, Bo and Reed, International Economics, The Macmillan Press Ltd. London.

34

M.A. ECONOMICS : SEMESTER III Core 14 WELFARE ECONOMICS [Paper Code : AM3C14EC0N] Objectives: At the end of this course students will be able to: To enable the student to understand the important distinction between positive Economics & Normative Economics To analyze desirability of outcomes of positive economics and policy outcomes. Course Outline: UNIT I : Fundamentals of Classical Welfare Economics

[11 Hours]

The Issue of Welfare and Justice in the Exchange Economy. Welfare in the Framework of General Equilibrium. – Hedonism and the Benthamite approach to Aggregate Welfare, Optimum resource allocation and welfare maximization. – Utility Function of individuals, Problems in inter-personal Utility comparison, issues in income distribution. – Marshallian conception of welfare economics, consumer’s surplus, measurement oof consumer’s surplus and the problems involved in the measurement. Pigouvian views on private and social cost. UNIT II : Restructuring Classical Welfare Economics

[11 Hours]

The Principle of compensating variation, Hicksian types of consumer’s surplus, Slutsky’s approach to measurement of consumer’s surplus. – The Concept and the conditions of Pareto Optimality, Pareto optimality in the General Equilibrium system. – Compensation criteria contributions of Barone, Hicks and Kaldor. Scitovsky criterion. – Applications of Compensation Principle to tax/bounty effects. UNIT III : New Welfare Economics-I

[11 Hours]

Social Optimum, Community indifference map, Samuelson’s utility possibility curve – Bergson’s Concept of Welfare and its Measurement. – Social Welfare Function, Arrow’s Possibility Theorem and its implications. – Problems of non-market interdependence, externalities in production and consumption, problems of accounting and pricing. UNIT IV : New Welfare Economics-II

[12 Hours]

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

35

Modes of Transaction: Majority of course instruction will be through class room lectures. Part of the Course work will be given in the form of tutorials and assignments. Some of the topics will be accomplished through class discussion. References [All Latest Editions wherever applicable] 1. 2.

Baumol, W. J. (ed.) (2001), Welfare Economics, Edward Elgar Publiching Ltd. UK Broadway, R. W. and N. Bruce (1984), Welfare Economics, Basil Blaskwell, Oxford. 3. Browning EK & Browning J. M. (1986), Microeconomic Theory & Applications, Kalyani Publishing. 4. Domick Salvatore (2009), Principles of Micro Economics, Ox Ford University Press. 5. Frank Robert H. (2006), Micro Economic & Behaviour, McGraw Hill International. 6. Little, I.M.D. (1957), A Critique of Welfare Economics, Oxford Univ. Press, Oxford. (2nd edition). 7. Maurice S. Charles and Philips Owen R. (1992), Economic Analysis – Theory and Applications, Richard D. Irwin, Inc. 8. Myint, Hla (1984), Theories of Welfare Economics, Longmans, London. 9. Quirk, J. and R. Saposnik (1968), Introduction to General Equilibrium Theory and Welfare Economics, McGraw Hill, New York. 10. Solberg Eric J. (1982), Intermediate Microeconomics – Business Publications, Inc. Additional Reading List: 1. 2. 3. 4.

Blaug, M. (1987), Economic Theory in Retrospect, Cambridge University Press, London. Feldman, A M (1980), Welfare Economics and Social Choice Theory, Kluwer Nijkoff, Boston. Pearce, D W and C A Nash (1981), The Social Appraisal of Projects: A text in Cost Benefit Analysis, Halsted Press. John Wiley & Sons, New York. Varian, H R (1992), Microeconomic Analysis, W W Norton & Co. New York.

36

M.A. ECONOMICS : SEMESTER III Core 15(a) ECONOMICS OF GENDER AND DEVELOPMENT [Paper Code : AM3C15EC0N] Objective: To acquaint and equip the students with the Economics of Gender and development concerns. Course Outline: UNIT I : Introduction to Gender Studies

[12 Hours]

Concept of gender and importance of gender studies, gender in mainstream Economics. Gender bias in the theories of value, distribution and population. Review of ‘neo-classical’ economics and analysis of Becker’s economics of the family. Bargaining models. Feminist economics; Approach and a critique of mainstream economic concepts and methodology. UNIT II : Demographic Aspects

[11 Hours]

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

[11 Hours]

Concept of ‘Work’: Productive and unproductive, visible and invisible, paid and unpaid work, economically productive and socially productive work. Methods of evaluating women’s unpaid domestic work and women’s contribution to national income. Returns to girls education and women’s contribution to national income. Gender and development Indices. Government policies and their critical appraisal. UNIT IV : Women and Labour Market

[11 Hours]

Intra-household decision making and division of labour within the household. Factors affecting decision making. Human capital models and labour market discrimination theories: Approaches and limitations. Gendered attachments to the labour market: gender differences in occupation and earnings across different sectors. Wages-Structure and differentials. Mode of Transaction: Lecture Method and assignment.

37

References [All Latest Editions wherever applicable] 1. Gary S. Becker (1991). A Treatise on the Family, Harvard University Press, 2. Government of India (1974), Towards Equality – Report of the Committee on the Status of Women in India, Department of Social Welfare, Ministry of Education and Social Welfare, New Delhi. 3. Joyce P. Jacobson (1998), Economics of Gender (2nd Edition), Blackwell Publishing, New York. 4. Krishnaraj, M, R.M. Sudarshan and A. Shariff (1999), Gender, Population and Development, Oxford University Press, New Delhi. 5. Seth, M. (2000), Women and Development : The Indian Experience, Sage Publications, New Delhi. 6. Srinivasan K. and A. Shroff (1998), India: Towards Population and Development Goal, Oxford University Press, New Delhi. 7. Venkateswaran, S. (1995), Environment, Development and the Gender Gap, Sage Publications, New Delhi. 8. Wazir, R. (2000), The Gender Gap in Basic Education : NGOs as Change Agents, Sage Publication, New Delhi. Journal ArticlesAs per the instructions and suggestion of the teacher concerned.

38

M.A. ECONOMICS : SEMESTER III Core 15(b) INDUSTRIAL ECONOMICS [Paper Code : AM3C15EC0N] Objective: To acquaint and equip the students with the theory of Industrial Economics. Course Outline: UNIT I : Framework and Problems of Industrial Economics

[12 Hours]

Scope of Industrial Economics, Concept and organization of a firm; ownership, control and objectives of the firm; Passive and active behaviour of the firm; Various Theories of firm; Black Box view of the firm; and the modern contractual approach; classification of industries. UNIT II : Market Structure

[11 Hours]

Sellers’ concentration; Product differentiation; Entry conditions; Economies of scale and scope; Market structure and profitability; Market structure and innovation; Theories of industrial location – Weber and Sargent Florence; Factors affecting location. UNIT III : Market Conduct:

[11 Hours]

Product pricing – theories and evidence; Theories and empirical evidence on Merger and acquisitions (M & As) and diversification, Research and Development, Advertising, Vertical restraints. UNIT IV : Market Performance

[11 Hours]

Growth of the firm – Size and growth of a firm; Growth and profitability of the firm; Constraints on growth; Productivity, efficiency and capacity utilization – Concept and measurement. Market concentration and market performance. Mode of Transaction: Lecture method. References [All Latest Editions wherever applicable]: 1. Armstrong,M and Porter R (2007) Handbook of Industrial Organization. North Holland 2. Barthwal, R.R. (1992), Industrial Economics, Wiley Eastern Ltd., New Delhi. 3. Divine, P.J. and R.M. Jones et.al. (1976), An Introduction to Industrial Economics, George Allen and Unwin Ltd., London. 4. Hay, D. and D.J. Morris (1979), Industrial Economics : theory and Evidence, Oxford University Press, New Delhi. 5. Stephen Martin (1989), Industrial Economics, Maxwell Macmillan. Journal Articles : As per the instructions and suggestion of the teacher concerned. 39

M.A. ECONOMICS : SEMESTER III Interdisciplinary Elective 03 GUJARAT ECONOMY [Paper Code : AM3I03EC0N] Objectives: At the end of this course students will be able to: To enable the student to understand the various aspects of Gujarat Economy as a growing economy. To analyze the future prospects of Gujarat Economy. Course Outline: UNIT I : Gujarat Economy – An Overview

[12 Hours]

Gujarat in Indian Economy - Growth and Structural Change in the Economy of Gujarat - Economic Scene of Gujarat - District level Planning in Gujarat Infrastructure in Gujarat, Pattern of Financial Outlays, UNIT II : Agriculture and Rural Development

[10 Hours]

Agricultural and Irrigation Development - Land use Pattern, Issues in Agricultural Productivity, New Agro – Industrial Policy, Sources of Irrigation Institutional set up for Irrigation Development – Agricultural Marketing Infrastructure – Allied Agricultural Activities. UNIT III : Industry and Urban Development

[12 Hours]

Pattern of Industrial Development in Gujarat - Key Industries in Gujarat, Industrial Policy of Gujarat, Urbanization - Process, Development and related problems - Social Sector in Gujarat - Employment Scenario - Environmental Problems of Industrialization and Urbanization UNIT IV : Financial Development in Gujarat

[11 Hours]

Public Sector Financial Institution in Gujarat : Functions and Working - Banking in Gujarat - Commercial Banks - Rural Credit in Gujarat : Micro Finance and Credit Cooperatives - Financing of Government of Gujarat. Modes of Transaction: Majority of course instruction will be through class room lectures. Part of the Course work will be given in the form of tutorials and assignments. Some of the Topics will be accomplished through class discussion. References (All Latest Editions wherever applicable) 1. Bhatt, B. K. (2009) - The Gujarat Economy (2nd Revised Edition), Vrinda Publication Ltd. New Delhi. 2. Bureau of Economics and Statistics, Govt. of Gujarat – Socio-Economic Survey of Gujarat. 3. Govt. of Gujarat – Annual Budget of Govt. of Gujarat. 4. Menon, Sudha V. (2010) - Gujarat Economy : The Way Ahead, The ICFAI University Press.

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M.A. ECONOMICS : SEMESTER IV Core 16 ECONOMIC GROWTH AND STRUCTURAL CHANGE [Paper Code : AM4C16EC0N] Objectives: At the end of this course students will be able to: Understand the importance of factors of production in growth process. Comprehend in adequate detail the role of Technological progress in Growth processes. Understand the structural changes accompanying development process. Understand the relation between Growth theory and Planning Process. Course Outline: UNIT I : Economic Growth and Technological Change

[11 hours]

Statics, Dynamics and Steady State Growth; Choice of technique; Technological progress – embodied and disembodied technical progress; neutral and non-neutral Technical Progress [Hicks and Harrod’s views]; learning by doing, Pace of technological change; Production function approach to economic growth, Power functions; Total factor productivity and growth accounting. Technical efficiency and scale of operation; Embodied technical change and measurement bias. UNIT II : Economic Growth and Economic Models

[12 hours]

Growth models – Harrod-Domar growth models; Neo-Classical growth models – Solow and Meade, Joan Robinson’s growth models; Cambridge criticism of Neoclassical analysis of growth, the capital controversy. Growth models of Kaldor and Tobin; Extension of Neo-classical models: The new growth theory; Endogenous growth; Intellectual capital: role of learning, education and research; AK model – Explanation of cross country differentials in economic growth. UNIT III : Growth and Structural Change [11 hours] Morphology of Growth – Structural changes accompanying growth – Patterns of sectoral changes. Trends in growth of National Income; Development and Structural Change – Engel’s elasticities – Structural changes in Demand – Production – Investment- labour absorption – Migration - Trade; Sectoral productivity - growth and Distribution; Inequalities; Inverted ‘U’ Hypothesis; Regional Development centre periphery theory – Inter regional and intra regional development. UNIT IV : Allocation of Resources & Development Planning

[11 hours]

Market failure and state failure, Need for investment criteria in developing countries - present vs., future, Alternative investment criteria; Cost - benefit analysis, Shadow prices, Project evaluation. Need for planning - democratic decentralized and indicative planning, micro level planning, regional planning; Plan models in Indian Planning , Alternative strategy, Input Output Models and Linear Programming. East Asian miracle, India and China in 21st century. 41

Modes of Transaction: Lecture method is generally used but along with it as and when required, discussion method would be used. Activity assignments be given to the students and assignment method would help them to learn by doing. Power Point presentation may be used for delivering lectures. References [All Latest Editions wherever applicable]: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21.

Adelman I (1961), Theories of Economic Growth and Development, Stanford University Press, Stanford. Barrow R. & Sala-Xavier Martin (2007), Economic Growth, Prentice Hall of India. Behrman, S and T.N. Srinivasan (1995), Handbook of Development Economic Vol. 3, Elsevier, Amsterdam. Brown M. (1966), On the Theory and Measurement of Technical Changes, Cambridge University. Chenery H B et. (Eds) 91974), Redistribution of Growth, Oxford University Press, Oxford. Chenery H and T N Srinivasan (Eds) (1989), Handbook of Development Economics, Vols. 1 & 2, Elsevier, Amsterdam. Dasgupta P 1993), An Enquiry in to Well-being and Destitution, Clarendon Press, Oxford. Ghatak S (1986), An Introduction to Development Economics, Allen and Unwin, London. Gillis M., D, H. Perkins, M. Romer and D.R. Sndograss (1992), Economics of Development (3rd Edition), W. W. Norton, New York. Gimmell N. (1987), Survey in Economic Development, Blackwell, Oxford. Higgins B. (1959), Economic Development, W. W. Norton, New York. Hogendorn J (1996), Economic Development, Addison, Wesley, New York. Kahkonon S. and M. Olson (2002), A New Institutional Approach to Economic Development, Vistaar. Kindelberger C.P. (1977), Economic Development (3rd Edition), McGraw Hill, New York. Meier G.M. (1995), Leading Issues in Economic Development (6th Edition), Oxford University Press, Oxford. Myint, Hla (1965), The Economics of Underdeveloped Countries, Preager, New York. Myint H (1971), Economic Theory and Underdeveloped Countries, Oxford University Press, New York. Todaro M.P. (2003), (8th Edition), Economic Development, Longman, London. Thirwal A.P. (1999) (6th Edition), Growth and Development, McMillan, U.K. Weil David N.(2009), (2nd Edition), Economic Growth, Perarson Education. Yujiro Hayami and Yoshihisa Godo (2005), (3rd edition) Development Economics from Poverty to Wealth of Nations, Oxford University press.

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M.A. ECONOMICS : SEMESTER IV Core 17 FISCAL FEDERALISM – WITH REFERENCE TO INDIA [Paper Code : AM4C17EC0N] Objective: To acquaint and equip the students with the principles and theory of Fiscal federalism and the functioning of Fiscal Federalism in India. Course Outline: UNIT I : Principles and Structure of Multiunit Finance

[12 Hours]

Canons of Fiscal Federalism; Fiscal powers of different levels of government and system of inter-governmental resource transfer in India and Fiscal relations. Finance Commission and Planning Commission; Various fiscal issues across CentreState-local level governments. UNIT II : Growth and Structure of Government Expenditure and Revenue [11 Hours] Public sector in national income accounts. Growth, structure, composition of various components of government (Central and State) expenditure and revenue. Causes of expenditure and revenue growth. UNIT III : Tax System and Public Debt

[11 Hours]

Tax system in India, its features and reforms; public debt of central and state governments; various types of deficits and their implication, approach and measures to debt servicing. UNIT IV : Local Government Finance

[11 Hours]

Nature of fiscal decentralization at Panchayat and municipal corporation levels. Functions and powers. Finance Commission and local government bodies, Role and function of State Finance Commission. Mode of Instruction: Lecture method and assignments. References [All Latest Editions wherever applicable] 1. Bhatia H.L. Public Finance, Vikas Publishing House Pvt. Ltd, New Delhi. 2. Prakash Om, Public Economics- Theory and Practice, Vishal Publishing Co, Jalandhar-Delhi 3. Government of India: Finance Commission Report, Reserve Bank of India Journal Articles: As per the instructions and suggestion of the teacher concerned.

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M.A. ECONOMICS : SEMESTER IV Core 18 INTERNATIONAL FINANCE AND MONETARY SYSTEM [Paper Code : AM4C18EC0N] Objectives: At the end of the course student will be able to analyze BOP issues and trends in the open economy. This course will provide students with the knowledge relating to various aspects of BOP, International Monetary and Financial Institution and their impact on Indian economy as well as global economy. The student will be able to understand the working of exchange rate mechanism and foreign exchange market.

Course Outline: UNIT I : Balance of Payments

[12 Hours]

Equilibrium and disequilibrium in the balance of payment; The process of adjustment under systems of Gold standard, fixed exchange and flexible exchange rates; Income adjustment approach – foreign trade multiplier with and without foreign repercussions and determination of national income and output; a critical review of the monetary approach to the theory of balance of payments adjustment; Expenditure-reducing and expenditure-switching policies and direct controls for adjustment. UNIT II : International Finance

[11 Hours]

International Financial Markets – Foreign Exchange Markets – spot and forward market Exchange rate determination – purchasing power parity conditions. Interest Rate Arbitrage and Interest Rate Parity conditions, Exchange Rates – Overshooting and undershooting – J curve effect– Emerging capital market – ADR & GDR, International Debt Problem and Risk exposure of banks. Euro market. UNIT III : International Financial Institutions and Monetary System

[11 Hours]

Rise and fall of gold standard and Bretton-woods system; Need, adequacy and determinants of international reserves; Conditionality clause of IMF; Emerging International Monetary System and Reform of the International Monetary system and its relevance to India and developing countries; theory of short-term capital movement; East-Asian Crisis and lessons for developing countries; Objectives and functions of IMF, World Bank and Asian Development Bank – their achievements and failures. UNIT IV : India’s Exchange Rate Arrangements [11 Hours] India’s exchange Rate Policy prior and after 1991, full convertibility of Rupee, Foreign Capital inflows – FDI and FPI, India’s international Debt composition – Policies for achieving internal and external equilibrium simultaneous under alternative exchange rate regimes; An overview of India’s Balance of Payment crisis – 1966, 1975, 1981, 1991. Structural changes in India’s balance of payments in the post liberalization period – non debt creating inflows on capital account and their implications and FEMA.

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Mode of Transaction: This course will be delivered through lectures. However, there will be class discussions on recent developments. There will be practical exercises on numerical problems and assignments where ever possible. References [All Latest Editions wherever applicable] 1.

Carbough, R.J., International Economics, International Thempson Publishing, New York. 2. Dana, M.S. (2000), International Economics : Study, Guide and work Book, (5th Edition), Routledge Publishers, London. 3. Dunn, R.M. and J.H. Mutti (2000), International Economics, Routledge, London. 4. Government of India: Economic Survey Annual Issue. 5. Kenen, P.B. (1994), The International Economy, Cambridge University Press, London. 6. King, P.G. (1995), International Economics and International Economic Policy : A Reader, McGraw Hill International, Singapore. 7. Krugman, P.R. and M. Obstfeld (1994), International Economics : Theory and Policy, Glenview, Foresman. 8. RBI Annual Report, Latest Issue. 9. RBI: Report on Currency and Finance, Annual Issue. 10. Salvatore, D., International Economics, Prentice Hall, Upper Saddle river, N.J. New York. 11. Soderston, Bo and Reed, International Economics, The Macmillan Press Ltd. London.

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M.A. ECONOMICS : SEMESTER IV Core 19 ECONOMICS OF HUMAN RESOURCES [Paper Code : AM4C19EC0N] Objectives: To provide an overview of the theoretical aspects of human resource development. To understand the importance of investment in education for economic growth. To understand the cost-benefit aspect of educational planning. To understand the economic dimensions of health as investment. To review the development of health and education in India. To understand, in detail, the economic foundations of the labor market – its features and functioning. To study the impact of trade unions on wages and factors responsible for wage differentials. To develop an understanding of the theories of discrimination in the labor market and migration. Course Outline: UNIT I : Foundations of Human Resource Development

[11 Hours]

Human Capital and human resource development : Meaning, measurement and importance – Human versus Physical Capital – differences in features and measurement – forms of human capital investment – on-the-job training : general and specific – human capital in growth accounting – Strategies for Human Resource Development – Human Development Index – subsequent modifications. UNIT II : Education

[11 Hours]

Economic dimensions of health and education – Role of Education in Economic Growth – determinants of demand for education – private and social costs/benefits of education – cost-benefit approach to educational planning in developing economies – manpower requirements approach – education and labor market – educational financing – issues in educational development in India UNIT III : Health

[10 Hours]

Education and health : similarities and differences – Economic dimensions of health – determinants of health – supply of and demand for health care – health financing – welfare implications of pricing health services – health indices – cost-benefit and cost-effectiveness in health care provision – issues in health development in India UNIT IV : Labour [13 Hours] Characteristics of labor – components of labor supply – labor force : concept and measurement – demand for labor : competitive and non-competitive markets – supply and demand together : the search process – union effects on labor markets – collective bargaining – wage differentials – theories of labor market discrimination – migration. 46

Modes of Transaction: The major part of the course work will be taught by the lecture method but wherever necessary, discussion on different practical issues will also be employed. Some portion of the course work would be given to students in the form of assignments. Audio-visual aids in terms of PowerPoint presentations of assignments by students would be encouraged. Teachers will also be encouraged to use such audio-visual aids in explaining certain concepts. Wherever feasible, students may be taken on field trips to gather data as well as observe the working of the economy. References [All Latest Editions wherever applicable] 1. Bellante, D. and M. Johnson (1983) – Labor Economics : Choice in Labor Markets, McGraw Hill, Singapore. 2. Blaug, Mark (1970) – An Introduction to Economics of Education, Penguin. 3. Borjas, G.J. (1996) – Labor Economics, McGraw Hill, Singapore. 4. Journal of Political Economy : Investment in Human Beings (1962) – Supplement Edition, Vol. LXX, No.5, Part 2, October. 5. Kutty, V. Raman (1999) – A Primer of Health Systems Economics, Allied Publishers, New Delhi. 6. Lekhi, R.K. (1999) – The Economics of Development and Planning, Kalyani Publishers, New Delhi. 7. Rees, Albert and Daniel Hamermesh (1984) – Economics of Work and Pay, New York, Haper & Row Publishers. 8. UNDP – Human Development Reports – Various Issues. 9. Woodhall, Maureen (1970) – Cost-benefit Analysis in Educational Planning, UNESCO.

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M.A. ECONOMICS : SEMESTER IV Core 20(a) ECONOMICS OF INFRASTRUCTURE [Paper Code : AM4C20EC0N] Objective: To acquaint and equip the students with the theory and practice of Economics of Infrastructure. Course Outline: UNIT I : Introduction

[12 Hours]

Infrastructure and economic development – Infrastructure as a public good; social and physical infrastructure; Special characteristics of public utilities. The peak-load, Off-Load Problem, Dual Principle Controversy; Economies of scale of Joint supply; Marginal Cost Pricing vs. other methods of pricing in public utilities; Crosssubsidization – free prices, equity and efficiency. UNIT II : Transport and Communication

[11 Hours]

The structure of transport costs. Transport models of freight and passenger Demand. Modal Choice: Cost Functions in the Transport Sector, Special Problems of Individuals Modes of Transport with respect to pricing and financing; Inter-Modal Mix in the Indian Situation. Organizational characteristics of communication industry and issues related to pricing and financing. UNIT III : Electricity and Gas

[11 Hours]

Institutional Framework and Issues, Bulk Supply and Pricing of Electricity. The Relative Economics of thermal, hydel and nuclear Power Plants. Various reforms in power sector of India. The Case for a National Power Grid. The Exploitation of Natural Gas. Pricing Problem. UNIT IV : Social Infrastructure

[11 Hours]

Supply, Demand, Pricing and Financing of Social Infrastructure, Demand and Supply of Education, its relationship with employment, poverty, internal migration and brain drain, Health System Characteristics, Measurement, distribution, and Financing. Mode of Transaction: Lecture method and assignment. References [All Latest Editions wherever applicable] 1. 2. 3. 4. 5.

Crew, M.A. and P.R. Kleindorfer (1979), Public Utility Economics, Macmillan, London. Parikh, K.S. (Ed.) (1997), India Development Report 1997, Oxford, New Delhi. Parikh, K.S. (Ed) (1999), India Development Report – 1999-2000, Oxford, New Delhi. Turvey, R. (Ed.) (1968), Public Enterprises, Penguin, Harmondsworth. India Infrastructure Report.

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

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M.A. ECONOMICS : SEMESTER IV Core 20(b) MATHEMATICAL ECONOMICS [Paper Code : AM4C20EC0N] Objectives: At the end of this Course Students will be able to Describe the concepts and objectives of study of Mathematical Economics Formulate economic theory (Micro & Macro) in Mathematical Framework. Enhance their understating of economic theory with a greater degree of precision. Explain economic theory with examples from real life. Throw light on inter-relationships among economic variable and provide an economic framework for empirical verification of theories. Course Outline: UNIT I : Comparative Static Methodology-I

[13 Hours]

Equilibrium & Optimization: Cardinal and Ordinal Utility, Ordinal utility maximization, Slutsky equation, Ordinary and Compensated demand functions, income, substitution and price effect, concept of elasticities - consumer’s & producer’s surplus – Economic applications of difference and differential equations. UNIT II : Comparative Static Methodology-II

[11 Hours]

Production function – homogeneous and non-homogeneous, Properties and derivation of production functions, cost functions, producer’s equilibrium – laws of returns and returns to scale, constrained optimization by a producer, input demand functions, adding up theorem. UNIT III : Analysis of Equilibrium & Game Theory

[10 Hours]

Price determination in perfect competition, monopoly; Discriminating Monopoly, Monopolistic Competition, duopoly, oligopoly, and monopsony; Bilateral monopoly, Game Theory : Concept of game – Two person Zero-sum game, pure and mixed strategies, Maximin, Minimax and Saddle point solutions, non-constant sum game, prisoner’s dilemma, Nash Equilibrium. UNIT IV : Mathematical Programming and Input Output Analysis

[11 Hours]

Non-linear programming and its applications – Kuhn Tucker conditions and inequality constraints, Input-Output Analysis - Open and closed system, HawkinsSimon conditions, Leontief dynamic system.

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Modes of Transaction: Lecture method is generally used but along with it as and when required discussion method would be fruitful. Activity assignments (i.e. practical numerical problems) may be given to the students and assignment method would help them to learn by doing Students may be given training by use of computer. Power Point presentation may be used for delivering lectures References [All Latest Editions wherever applicable] 1. 2.

Allen R.G.D. (1976), Mathematical Economics, Macmillan, London. Arrow K.J. and M. Intrilligator (Eds.) (1992), Handbook of Mathematical Economics, Volumes I,II and III, North Holland, Amsterdam. 3. Baumol W. J. (1987), Economic Theory and Operations Analysis, 4th Edition, Prentice Hall of India Pvt. Ltd. New Delhi. 4. Chiang A.C. (2005), Fundamental Methods of Mathematical Economics, 4th Edition, McGraw Hill, New Delhi. 5. Edward T. Dowling (1992) Schaum’s Outline of Theory and Problems of Introduction to Mathematical Economics, 2nd Edition, McGraw-Hill, Inc. 6. Hands, D.W. (1991), Introductory Mathematical Economics, D.C. Heath. 7. Handy, S.T. (1997), Operations Research, Prentice-Hall of India, New Delhi. 8. Henderson, J. and R.E. Quandt (1980), Microeconomic Theory : A Mathematical Approach, MacGraw Hill, New Delhi. 9. Michael Hoy, John Livernois, Chris Mckenna, Ray Rees & Thanasis Stengos (2004), Mathematics for Economics, 2nd Edition, Prentice Hall of India Pvt. Ltd., New Delhi. 10. Mukherji, B. and V. Pandit (1982), Mathematical Method of Economic Analysis, Allied Publishers, New Delhi. 11. Taro Yamane (2000), Mathematics for Economics-An Elementary Survey, 2nd Edition, Prentice Hall of India Pvt. Ltd. New Delhi.

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M.A. ECONOMICS : SEMESTER IV Interdisciplinary Elective 04 RURAL ECONOMICS [Paper Code : AM4I04EC0N] Objectives: At the end of this course students will be able to: Have a conceptual knowledge about Rural Economics. Understand the dynamics of rural development and the socio-ecological system. Identify and analyze the various aspects affecting rural economy in the Indian context. Course Outline: UNIT I : Introduction

[11 Hours]

Concepts: Rural areas – Rural Socio-Ecological System and its components, Land - use pattern, Population: Magnitude, rural – urban distribution, occupational structure, workforce participation, rural poverty and Income. UNIT II : Agriculture

[11 Hours]

Land reforms: Need, measures of land reforms in India, concept of economic holdings, size and pattern of land holdings in India; Agricultural inputs and production, effects of green revolution and measures for improvement; Allied Agricultural enterprise and its impact on rural economy: Plantation, Horticulture Animal husbandry, dairying and fisheries. UNIT III : Rural Industries and Rural Finance

[11 Hours]

Rural Industry: Importance, types & problems - Handicrafts - Handloom, Khadi and Village Industries, Food processing industries, coir industry. Rural Finance and Credit System: types, institutions & problems. UNIT IV : Social Sector and Infrastructure Development

[12 Hours]

Rural Housing, Rural Health, Sanitation and Water, Education, Roads, Transport and Communication, Electrification, Rural Development Programmes, Bharat Nirman, Rural Administration – Panchayati Raj System. Modes of Transaction: Lectures – Class Discussion. References (All Latest Editions wherever applicable) 1. Ishwar Dhingra (Latest Edition) - The Indian Economy, Sultan Chand & Sons Publications. 2. Gaurav Dutt and A. Mahajan (Latest Edition) - Dutt and Sundharam’s Indian Economy, Sultan Chand & Sons Publications. 3. Astha Ahuja - Agriculture and Rural Development in India – Post Liberalization Initiatives, New Century Publications, New Delhi. 4. Dr. Chandra Shekhar Prasad (2007) - Agriculture and Rural Development in India since 1947, New Century Publications, New Delhi. 5. K. Hanumantha Rao - Rural Development Statistics 2009-2010, National Institute of Rural Development. 6. Satya Sundar (Latest Edition) - Rural Development, Himalaya Publishing House. 7. Dr. Gopal Lal Jain - Rural Development, Mangal Deep Publications, Jaipur. 8. A. Mustafa (2010) - Indian Rural Economy, Serials Publications 4008/24, 1st Floor Ansari Road Darya Gunj, New Delhi – 110 002.

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