SYLLABUS I SEMESTER EC.109. MICRO ECONOMICS COURSE OBJECTIVES
To make students aware of the basic economic concepts and theories of economics
To develop among students the ability to understand and appreciate the economic theories and their application in real economic life. MODULE I –INTRODUCTION TO MICRO ECONOMCIS (8 hrs) Basic problems of choice of production and consumption – Lionel Robbins’ scarcity definition (3) Micro economics, Branches of Micro economics (2) Merits and limitations of Micro economics (2) Positive and Normative Economics, inductive and deductive methods (1). MODULE II –THEORY OF CONSUMER BEHAVIOR (20 hrs) Cardinal Utility analysis– Law of Diminishing marginal utility (1) Law of Equi- marginal Utility (3)Marshallian Consumer’s surplus(1) Law of Demand(2)Changes in demand(1) Elasticity of demand - types of elasticity of demand(3)Methods of calculating elasticity of demand(2)Factors determining elasticity of demand and practical importance of the concept(2). Hicksian Ordinal Utility Analysis–Indifference Curves– Meaning, Properties, Consumer’s equilibrium-Income effect- Price effect –substitution effect (9). MODULE III – THEORY OF PRODUCTION ( 17 hrs) Production function -Law of variable proportions (3)Law of Returns to Scale – internal and external economies of scale(5) production possibility curve and Pareto’s concept of efficiency (1). Cost concepts -TFC, TVC, TC, AC,MC- Short run and long run analysis Opportunity cost (4 hrs). Revenue concepts – TR ,AR,MR under perfect and imperfect markets (3)Supply- Law of supply (1) MODULE IV THEORY OF PRODUCT PRICING (16 hrs) Theory of equilibrium of the firm and industry(2) Perfect Competition–Price and Output determination (3) role of time element (3).Monopoly– features- price and output determination(3)Price discrimination(1)Monopolistic Competition- features - product differentiation , selling cost ( 3 hrs) -meaning of oligopoly (1). MODULE V– THEORY OF FACTOR PRICING (14 hrs) Nature of Factor Markets - Pricing of Factors of Factors of Production (1 ) – Rent Theories– Ricardo and Modern (4) The Marginal Productivity Theory of wages modern theory (3) , Wage differential(1) Interest- Classical theory (1), loanable funds theory (2 ) -Profit theories–Risk, Uncertainty, Dynamic and Innovation(2). Books recommended (I &II Semester) 1. Samuelson P.A - Economics 2. Lipsey R.G – An Introduction to Positive Economics. 3. Stonier A.W. and Hague – A text Book of Economic Theory 4. M.L.Jhingan – Advanced Economic Theory. 5. H.L. Ahuja - Advanced Economic Theory. 6. Peter Smith & David Begg – ‘Economics’ Work book 7. K.P.M. Sundaram – Micro and Macro Economics. 8. M.L.Seth- A text Book of Economic Theory. 9. Robinson J and Eatwell – An Introduction to Modern Economics. 10. Varian .H –Intermediate Micro Economics. 1

II SEMESTER EC.209 -MACRO ECONOMICS COURSE OBJECTIVES: 1.To enable students to understand the nature and behaviour of important macro economic variables in the functioning of an economy. 2.To impart knowledge regarding the formulation and implementation of macro economic polices. MODULE I -INTRODUCTION TO MACRO ECONOMICS (12 HRS) Definition and branches of Macro economics(2); stocks and flow, functional relationships, statics, comparative statics and dynamics. Interdependence between micro and macro economics.(7) Micro-macro paradox(1). Uses and limitations of Macro economics(2). , MODULE II -NATIONAL INCOME (8HRS) Circular flow of income and wealth,(2)Concepts and methods of measuring National Income(2) Problems in the measurement of National Income-Per capita income and its limitation as an index of welfare, Human development index-concept of growth rate. MODULE III: THE CLASSICAL THEORY OF INCOME AND EMPLOYMENT(6) Basic assumptions of the Classicists (1), Say’s Law of Markets and the Theory of Full Employment- Pigou’s concept of wage cut (3),Wage-price flexibility and Full Employment ,saving investment equality, Criticisms of the Classical theory.(2) MODULE IV: THE KEYNESIAN THEORY OF INCOME AND EMPLOYMENT(14) The concept of under employment equilibrium, Effective Demand-Aggregate Demand and Aggregate Supply(3),Consumption Function and its determinants, psychological law of consumption.(4)Investment Function and its determinants(3)Changes in the level of incomethe Multiplier(2), Accelerator(1). Applicability of Keynesian Theory to under developed Countries (1) MODULE IV – MONEY (13HRS) Definition of money-functions of money(1) Determinants of Demand for money-Theory of Liquidity preference(2)Composition of Supply of money-M1,M2,M3(1). Value of money– Quantity theory of money – Fisher and Cambridge equations and Keynes Income theory (4), General equilibrium in the product and money market-IS and LM Model-Hicks- Hansen’s. (3) MODULE V- INFLATION- (12 HRS) Meaning and types of inflation(1) ,Demand-pull -Cost push Inflation,(4) Inflationary gap(1). Effects of inflation, measures to control inflation(3) employment-inflation trade off- Philips curve (2) Measuring inflation– Use of Index numbers.(1) MODULE VI – TRADE CYCLES ( 10 HRS) Meaning ,types and Phases of trade cycle(3), Trade cycle theories –Hawtrey’s monetary theory (2), Schumpeter’s theory of innovations(2), Hicks model.(3)

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REFERENCE BOOKS Shapiro Edward, (1978) Macro economic Analysis Branson W.H, Macro economic Theory and Policy, (1972) Hanson A.H,“A Guide to Keynes” Rowan DC, (1974) Output, inflation and growth, 2nd Ed. Wonnacott Paul, macro economics, 1974 Dillard, Dudley, The Economics of John Maynard Keynes (19530 Dornbusch, R and S. Fisher (1984), Macro Economics. Edgemond, M.R (1983) Macro Economics: Theory and Policy; Prentice-Hall of India, New Delhi, Gupta S.B (1983), Monetary Economics, S Chand &co. New Delhi.

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SEMESTER III EC.309 -BANKING AND PUBLIC FINANCE Course objectives: 1.To provide knowledge about the role and working of the monetary system in an economy. 2.To help students understand the role and working of government finances in a modern economy MODULE I - Commercial banks (15 hrs) Functions and importance of commercial banks (2) Sources of supply of bank fund, Balance sheet of a commercial(3) Credit creation by Commercial Banks, (3) Portfolio Management (2) Innovations in Banking functions and services in India –E-Banking-meaning and benefits-New emerging payment system in India –ATM, Virtual bank, Home banking, Electronic Funds Transfer at point of sale (EFTPOS)- Debit card, credit card, Smart cards, Electronic Clearing service, Electronic Funds Transfer, National Electronic Transfer (5hrs) MODULE II- CENTRAL BANK(10) Emergence of the concept of Central Bank (2) Principles of note issue ( 2) Functions of central bank (2) Monetary policy-Credit Control techniques - quantitative and qualitative methods (4 ) MODULE II -MONEY MARKET (8 HRS) Meaning, features and Functions of Indian money market (2) Instruments of money marketcall money market, Treasury bill market, commercial paper market and bankers acceptance market.(3) Money market Institutions -Central Bank, Commercial banks, Non- bank financial intermediaries, Discount houses, Acceptance Market (2) Characteristics of a developed money market (1) MODULE IV- PUBLIC FINANCE (9) Meaning and subject matter of Public Finance (1) Distinction between private finance and public finance (1) Musgrave’s view on Economic activities of the state (2) Principle of maximum social advantage (2) Public goods vs. private goods, Pure public goods, Merit goods. Market failure (3) MODULE V- PUBLIC REVENUE, (10 HRS ) Sources of Public revenue–Tax and non-tax revenue (1hr) Canons of taxation (2) Merits and demerits of direct and indirect taxes (4 ) Incidence and Effects of taxation (2) Value added tax (1). MODULE VI-PUBLIC EXPENDITURE AND PUBLIC DEBT(14HRS) Public Expenditure –Canons of Public Expenditure (2) Growth and effects of Public Expenditure (3) Public Debt ,Effects, Repayment of Public Debt (3) Principles of debt management (1) Public Budget (1hr)–Concepts of Revenue deficit, budget deficit,primary deficit and fiscal deficit – Deficit financing (2) Fiscal policy (2)

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MODULE VI- FEDERAL FINANCE (9 HRS) Concept of fiscal federalism and Principles of fiscal federalism (2) Principles for division of functions and financial resources between different levels of government (1) Need for federal financial adjustments (1) need and mecahnism for federal transfers (2) Indian federal finance(1) Role of the Finance Commission(2)

The assignment topics: 1)Central banking systems in India, USA and UK. 2)Value Added Tax and GST Commissions. 3)Reforms of the Money Market in India 4)The Narasimham Committee Reforms in banking in India

Reference Books Basu A.K (1962) Fundamentals of Banking Theory and Practice, Mukerji, Calcutta. Chandler L .V – Economics of Money and Banking, 7 ed, Harper and Row, NewYork. Chandler L .V- Central Banking and Economic Development. Sayers R.S (1978) Modern Banking, 7 ed , OUP, Delhi. Bhatia .H.L – Public Finance. Brown C.V and P.M .Jackson, (1978) , Public Sector Economics, Martin Robertson, Oxford Dalton Hugh, Principles of Public Finance, Routledge and Kegan Paul Herber P.Bernard –(1967) Modern Public Finance , Richard Irwin , Ch 10. Mitra .S, ed (1970) Money and Banking , Random House , New york. Musgrave Richard (1969) The theory of Public Finance. Prest A.R.(1970) Public finance in theory and practice, English Language Book Society , London. Taylor Philip - The economics of Public Finance Basic Text Book ML Jhingan Money and banking and finance-

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SEMESTER IV EC-409. INTERNATIONAL ECONOMICS COURSE OBJECTIVES : 1. To provide knowledge on the basic concepts, tools and theories of international trade. 2.To examine important issues in commercial policy and international economic integration. MODULE I : INTRODUCTION TO INTERNATIONAL ECONOMICS.(15HOURS) Differences between internal and International trade .Analytical tools- Production possibility curve – Isoquants – Box diagram. Terms of trade -Concepts & Factors affecting terms of trade; Offer curves. MODULE II :THEORIES OF INTERNATIONAL TRADE(15HOURS) Classical theory -Absolute and comparative cost theory, Hecksher-Ohlin theorem, factor price equalization theorem .

MODULE III: TRADE AND REGIONAL DEVELOPMENT(15 HOURS) Free trade and protection, tariffs and quotas, effects. Theory of customs union, Commodity arrangements, Cartels, dumping. Trade as an engine of growth, Singer-Prebisch secular stagnation thesis.

MODULE IV—INTERNATIONAL FINANCE (15HOURS) Nature and type of foreign capital, role of foreign capital in development. Role of Multinational Corporations in economic development.

Theories of exchange rate

determination-purchasing power parity theory, balance of payment theory. Disequilibrium in the balance of trade and payments- causes and methods to correct disequilibrium.

MODULE V–India’s Foreign trade – Composition and direction of India ‘s trade - Impact of globalization – Foreign trade policy after 1991- exchange rate – partial and full convertibility on current and capital account . GATT-a summary. Uruguay round –WTO- major agreements- Recent developments. IMF ,World Bank, EEC, SAARC, Problem of international Liquidity ,Globalization.

15 hrs 6

Books for reference: 1.M Chacoliades – International Economics. 2.C.Kindleberger – International Economics. 3.Bo Sodersten – International Economics. 4.D.Salvatore – International Economics 5.ML Jhingan- International economics

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Semester V- COMPULSORY PAPER EC.5109. STATISTICAL METHODS FOR ECONOMICS Objectives: To introduce students to the basic concepts of statistics To develop skills of data analysis and ability to interpret To help students to appreciate the importance of statistics in Economics

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Module-I: Collection , classification and tabulation of Data • •

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Meaning- definition of statistics -uses of statistics and limitations of statistics. Collection of primary and secondary data -Framing a questionnaire- schedule / interview method. Sources of secondary data. Sampling- methods - random – stratified ,systematic, cluster ;non random –judgment sampling, convenience and quota sampling. Making a frequency table-discrete and continuous . cumulative frequency distribution-Bivariate distribution. Rules of tabulation- parts of a table, types of tables- one way, two way , three way and higher order tables.

Module-II: Presentation Of Data Diagrammatic Representation- Usefulness and limitations of diagrams-Rules for diagrammatic representation , types of diagram—one dimensional –simple bar diagram , multiple bar diagram , sub divided bar diagram and pie diagram percentage bar diagram, two dimensional and three dimensional diagrams, pictograms , cartograms – graphs and curves .

Module-III: Measures of central tendency • definition – Characteristics of a good average • Arithmetic mean-Median-Mode- Individual observations , deviation method , step deviation method and Grouping method. Module-IV: Measures of dispersion • Range -Mean Deviation-Standard Deviation. Quartile Deviation • Skewness and Kurtosis (Concepts ) Module-V: Correlation And Regression • Meaning of correlation -Karl Pearson’s coefficient of correlation-Rank method • Meaning of regression analysis-regression lines-regression equation.- OLS method

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Module-VI: Index Numbers and time series analysis • Index numbers-definition-uses-problems-unweighted and weighted index numbersLaspeyers,Paasche, fisher’s methods-Time Reversal test and Factor Reversal test. Consumer Price Index ,Wholesale Price Index. • Analysis of time series-definition-uses-components-methods of estimating component- method of semi averages. Module VII – Theory of Probability Meaning – rules of probability

BOOKS: 1) Elhance-Introduction to Stastical Methods 2) S.P.Gupta-Statistical Methods 3) C.P.Gupta- Statistical Method

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COMPULSORY PAPER FOR EMS EC.5409. Basic Econometrics Course Objectives: At the conclusion of this course, a student will have a solid basic understanding of regression analysis as it is practised in the social sciences. The student will be able to construct a simple theoretical model of the determinants of a single dependent variable, estimate this model (given data), diagnose the adequacy of the statistical model, modify the statistical model as required, and draw substantive conclusions regarding his or her original theoretical model. Further, a student will become skilled in using econometric packages.

Module –I : Nature and Scope of Econometrics Meaning of Econometrics, Relationship Between Statistics, Mathematics and Economics, Economic and Econometric Models, the aims and methodology of Econometrics, Historical origin of the term regression and its modern interpretation, statistical Vs deterministic relationship, regression Vs Causation, regression Vs correlation, terminology and notation, the nature and sources of data for Econometric analysis. ( 8 hrs) Module II: Two Variable Regression Analysis The basic two Variable Regression model: Estimation, Statistical Inference and Prediction. Extensions of two variable regression model – regression through origin, Scaling and units of measurement, Functional forms of regression model. ( 12 hrs) Module III: Multiple Regression Analysis The problem of Estimation- Notation and assumptions, meaning of partial regression coefficients the multiple coefficient of determination R2 and the multiple coefficient of correlation R, R2 and adjusted R2, partial correlation coefficients, Interpretation of Multiple Regression Equation. The Problem of Inference- The normality assumption, Hypothesis testing about Individual Partial Regression coefficients, testing the overall significance of the sample regression, testing the equality of two regression coefficients, restricted least squares, testing for structural stability of regression models, testing the functional form of regression. . (15 hrs)

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Module IV: Relaxing the Assumptions of the Classical Regression Model Multicollinearity, Heteroscedasticity and Autocorrelation- Nature, Consequences, Detection and Remedial Measures. ( 10 hrs) Module V: Regression on Dummy Independent Variables The nature of Dummy variables, regression on one quantitative variable and one qualitative variable, regression on one quantitative variable and one qualitative variable with more than two classes, regression on one quantitative variable and two qualitative variables, testing for structural stability regression models, Interaction effects, piece wise linear regression, the use of dummy variables

(15 hrs)

Selected References: Gujarathi, D (2003) Basic Econometrics, 4th Edition, New York: McGraw Hill Wooldridge, J.M. (2003), ‘Introductory Econometrics: A Modern Approach’ 2nd edition, Thomson South-Western . Green, W. (2003), ‘Econometric Analysis’, 5th edition, Prentice Hall R.S. Pindyck and D.L. Rubinfeld, Econometric Models and Economic Forecasts, Fourth Edition (McGraw-Hill), 1997. Dougherty, C. (1992) Introduction to Econometrics. New York: Oxford University Press. . Johnston, J. (1984) Econometric methods, 3rd edition, New York: McGraw Hill. Johnston, J and J.Di Nardo (1997), Econometric Methods, 4th edition, McGraw Hill. Maddala, G (1992) Introduction to Econometrics, 2nd ed., New York: MacMillan. Kalirajan, K.P.Applied Econometrics, Oxford&IBH publishing company Private limited, 1995. Judge, Carter, Griffiths, Lutkepohl, and Lee (1988) Introduction to the Theory and Practice of Econometrics. John Wiley and Son Publishers. Marija N.Norusis (2007), “SPSS 15.0 Guide to Data Analysis”, Prentice Hall. Sabine Landau and Brian Everitt (2004),”A Handbook of Statistical Analyses using SPSS, Chapman & Hall/CRC, Boca Raton, Florida, 2004.

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Semester V OPTIONAL PAPER EC-5209- MATHEMATICAL METHODS FOR ECONOMICS Course Objectives: The purpose of this course is to show how mathematical tools can be used by students to understand economic theory  The economic economic theory will be more coherent and organized when students become more adept at using mathematical techniques  Students will see applications of this course to all the economics they have studied in the past or will study in the future.  The goal of the course is to make students understand and be able to use the mathematics required for studying economics at the masters level. Module 1: Basic Mathematics: Elementary Concepts of algebra, trigonometry and analytical & application of quadratic curves. Concept of function and types of functions; [10hrs] Module 2: Differentiation:; Concept of limit , continuity , Rules of differentiation, Interpretation of revenue, cost, demand, supply functions; rules of partial differentiation and interpretation of partial derivatives; Problems of maxima and Minima in single and multivariable functions ,Constraint optimalisation; Simple problems in market equilibrium. [15hrs] Module 3: Euler’s theorem, cobb-Douglas production function, elasticity theorems, multi product monopolist, baumols sales maximization, stackelberg solution [15 hrs] Module 4 Integration: Concept of integration; simple rules of integration; definite integrations application to consumer’s surplus and producer’s surplus. [10hrs] Module 5: concept of matrix-their types, simple operations on Matrices, Determinants and Matrices: Basic properties of determinants. Solution of simultaneous equations through Cramer’s rule; matrix inversion, Introduction to input-output analysis. [10hrs] Basic Reading List: . 1. Jean Webber [1982] mathematical analysis, Harper & row publishers, New York 2. Chiang, A. C. [1984] Fundamental Methods of Mathematical Economics, McGraw Hill, New York. 3. Yamane, Taro [1975] Mathematics for Economists, Prentice Hall of India, New Delhi. 4 Allen, R.G.D. [1974], Mathematical Analysis for Economists, Macmillan Press and ELBS. London 5. Hadley, g. [1962] Linear Programming, Addison Wesley Publishing co.,Massachusetts. Additional Reading List: 1. D. Bose [1996] Mathematical Economics, Himalaya publication. Bombay 2. Mehta & Madanani[2009], Laxmi Narayan Agarawal publisher

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SEMESTER V -ECONOMICS OPTIONAL PAPER- EC.5309.ENVIRONMENTAL ECONOMICS Course Objectives: • To enable students to understand and appreciate the relationship between environment and economic development. • To enable students to gain knowledge of the theoretical and empirical basis of environmental economics as an applied branch of economics. Course Content Module 1: Introduction to Environmental Economics (15hours) Definition, need, nature and scope of Environmental economics; relation between Environmental economics and economics, the material balance model. Ecology and resource economics. Individual preference and social choice. Efficiency of markets, market failurepublic bad and externalities. Some environmental regulation tools direct and indirect pollution fees, emission trading rights, taxes on inputs/ outputs of polluting activities, subsidies for adopting cleaner technologies,effluent treatment plants, deposit refund system. Environment audit. Module II:Population and Natural Resource Economics (10 hours) Population, growth of species, density, migration, food security. Ecology of the poor and the affluent, gender and environment Basic concepts-current, potential and resource endowment, renewable and non renewable resources, rate of extraction and regeneration. Problem of common property resources. Coase theorem. Land degradation-types, effects; unsustainable agricultural practices- the case of pesticides. Forest as a resource-deforestation, causes, effects. Water resource- pollution, causes, effects, water resource management. Energy resource- types, energy crisis; Waste- types, effects; Noise pollution-source, effects; Air pollution- sources, effects. Environment management (15hours) Module III: Sustainable Development (10 hours) Sustainable development-concept, definition, Hartwick, London school and safe minimum approach -goals, measurement and obstacles to sustainable development, Daly’s principle. Conventional development versus sustainable development. Indicators and measurement of sustainable development ,Kuznets curve . Recycling, reuse and techno centric solutions to sustainable development. Role of govt, Environment legislation. (10hours) Module IV: Environmental Valuation and Instruments(15 hours) Need for environmental valuation, concept of total economic value; cost-benefit analysis, cost effectiveness analysis; averting behaviour approach, weak complementary approach. Methods of economic valuation of environment ( concepts) - methods based on market prices-change in productivity technique, change in income technique ,replacement technique, preventive technique , relocation technique. Surrogate method- travel cost and hedonic, simulated method or survey method-contingent valuation method .Limitation of environmental valuation.

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Module V: National and International Environmental Issues (10 hours) National issues – case studies, development and environmental issues. Environment legislation in India. International environmental issues –ozone depletion, global warming, acid rain, bio diversity loss, endangered species, desertification, international trade issue – international cooperation.

Reference Books : Anderson David (2007) Environmental Economics And Natural Resource Management , 2 edition Pensive Press. B Field and M Field (1997) Environmental Economics: an Introduction. 3rd edition. New York: McGraw Hill. B.Field (2001) Natural Resource Economics: an Introduction. 1st edition only. McGraw Hill Baumol W and Oates W (1988) The Theory of Environmental Policy. 2nd edition. Cambridge: Cambridge University Press. Bhattacharya N, Rabindra (2001) Environmental Economics- An Indian Perspective. Oxford University Press, Delhi. C Kolstad (2000) Environmental Economics. Oxford: Oxford University Press. C Russell ( 2001) Applying Economics to the Environment. 1 edition only. Oxford: Oxford University Press. Common M (1988) Environmental and Resource Economics: an Introduction. Harlow: D W Pearce (1976) Environmental Economics. Harlow: Longman Dasgupta P (1982) The Control of Resources. Oxford: Blackwell. Fisher A C (1981) Resource and Environmental Economics. Cambridge: Cambridge University Press. Folmero J Gabel h l (2000) Principles of environment and resource economics, Edward Elgar Publications, London Freeman A M, Haveman R and Kneese A (1973) The Economics of Environmental Policy. New York: Wiley Herfindahl O and A Kneese(1974) Economic Theory of Natural Resources. Columbus: Merrill J Hartwick and N Olewiler (1998) The Economics of Natural Resource Use. 2nd edition.

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J Lesser., D Dodds and R Zerbe (1997) Environmental Economics and Policy. 1st edition only. Reading: Mass: Addison J R Kahn ( 1998) The Economic Approach to Environmental and Natural Resources. 2nd edition. Fort Worth: Dryden Press Kadekodi G K (Ed) (2004). Environmental Economics in Practice. Oxford University Press. Kneese A (1977) Economics and the Environment . Harmondsworth: PenguinLongman N Hanley., J.Shogren and B.White ( 2001) Introduction to Environmental Economics. 1st edition , Oxford: Oxford University Press. Opschoor (1999) Environmental Economics and development, Edward Elgar, London R K Turner., D W Pearce and I Bateman. (1993) Environmental Economics: an Elementary Introduction. 1st edition only. Baltimore: Johns Hopkins UP. Sankar Ulaganathan (2001) Environmental Economics , Oxford University Press, Delhi. Sengupta, Ramprasd (2001),Ecology and economics – An approach to sustainable development, Oxford University Press, Delhi Subhashini Muthukrishnan(2010) Economics of Environment, Prentice Hall . T Tietenberg ( 2000) Environmental and Natural Resource Economics. 5th edition. Addison Wesley. T Tietenberg( 1998) Environmental Economics and Policy. 2nd edition ,Addison Wesley.

ENVIRONMENTAL ECONOMICS ASSIGNMENTS The idea behind developing these topics for assignments is that students will have to decide a topic on their own, which requires them to go through these several topics at least a few times. This will help them to explore the topics however little, before they make a choice. All the topics are from the field, which will give them a chance to experience the topics they study in the class in real terms. Since the class can have a variety of topics it also enhances their diverse interest and hence enhances students learning. While there is no dearth of topics on this subject, some topics are suggested here. Students are encouraged to identify topics of their own and work on them They may even combine ideas from the list of topics and develop their own area of interest. Some interesting topics on this subject are quite often published in news papers, shown on TV. Students are encouraged to collect articles and work on them, discuss and write their understanding of the issue. 15

1. Contrast any two environmental problems in India for example, the Save Tiger Campaign, the efforts to decongest roads in an urban centre in India. 2. Discuss the implications of eucalyptus cultivation on incomes of farmers and on food production by visiting a eucalyptus plantation. 3. Visit a mining are and enquire about the harmful effects of mining on neighbouring peoples health and on agricultural activitiesor any other area of concern. 4. Visit a factory and understand the nature and extent of pollutants generated by the factory. Also understand why such pollutants cannot be prevented in the production process. 5. Visit a factory and understand the pollutant abatement methods they practice. If they are not following any procedures then find out why pollution is not being abated. 6. Account for the economic goods recovered from waste recycling plants like plastic, metal, electronic waste, food waste and several others by visiting a recycling plant or by interacting with dealers/handlers of different kinds of waste. 7. Examine the externalities of production or consumption on degradation of environment with a specific example. 8. Identify an environmental problem between two parties and use Coase theorem to suggest how it can be resolved. 9. List the different uses and users of village ponds. Consider various alternative ways in which rights to use these ponds could be assigned. Explain how it will affect different users. Suggest the fairest arrangements for such use. 10. Visit a community forest such as Deveara kadu and understand how religion plays an important role in the preservation of environment. 11. Using Pigouvian perspective can you think of ways in which taxes /subsidies can be used to determine how ponds are used in villages? 12. Emissions from automobiles are a major source of pollution in India. List all parties who will benefit from the reduction of vehicular pollution. Also list the parties who will suffer from such a move. 13. Visit a village and identify the sustainable practices they follow. 14. Relate the problem of vehicular pollution to the imposition of taxes/subsidies? Talk to users of vehicles and ask them how they could contribute to the reduction of such pollution. 15. Visit a village, walk around and observe , count and measure by talking to village officials, residents, school teachers and students about land, water, fish, forests , crops, animals and the economic activities they pursue. Prepare a comprehensive inventory of natural resources, its extent, and location preferably on a village map. 16. Visit a village, walk around and observe, count and classify village resources into private property, state property, common property and open access property. Observe the use and abuse of each of these properties. 17. Visit a village, understand the major problems and issues in the use and management of each class of property namely state property, common property and open access property. Describe how those problems are solved, what mechanisms are used. 18. Examine the role of any governmental or non-governmental agencies in managing natural resources in villages.

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19. If degraded natural resources have to be restored in the village you visit, how much investment would be required and how much of such resource will be actually available from the ongoing development program in the village. Are villagers willing to contribute anything for this restoration? 20. If the restoration of degraded natural resources is taken up in a village, what is the likely benefit from such an exercise and who will benefit from such an exercise? 21. Present the best arguments you have for and against as to why it is important to protect village forests and pastures as common property resource. 22. Perennial vegetation such as trees or pasture grass is a suitable non erosive use of marginal land. Most of these lands are however cultivated contributing to soil erosion. Consider some alternative approaches to encourage farmers to plant perennial vegetation. 23. Discuss the problems of poor performance of village tanks. What options are available for tank modernisation and for improving the overall tank performance? 24. Study a fishing cooperative in a village and examine how the fisher men do /do not compete for catches and how they exercise their rights according to socially acceptable objectives. 25. The money earned by village panchayaths from aquaculture leases must be used to compensate the village for the reduction of water or land for other uses. Suggest efficient and equitable ways in which this compensation use can be designed. 26. Give specific examples of how technology use affects the rate of exploitation of natural resource such as marine fisheries. What are the social economic implications? 27. Use a specific locational example to study the issues relating to sustainability in the use of exhaustible or renewable natural resources. 28. Visit a village and study about non timber forest products and plants in the villages. What are the uses of these plants to villagers, have they changed over the years? 29. Enquire with people about the price they are willing to pay for recreation sites like water falls and mountains or lakes. 30. use valuation techniques to understand how much people spend to avoid diseases such a s malaria or any other environmental related disease. 31. Visit a tourist attraction and examine the fall out of tourism on environment. 32. Study the perceptions of people about technically modified seeds. 33. Discuss energy use and conservation as practiced among households in your city. 34. Understand how solar energy is used in villages to carry out various activities. 35. Discover the use of natural herbs as medicines in village communities.

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SEMESTER V- OPTIONAL PAPER EC.5509. INDIAN ECONOMY Course objectives • To enable students to have an overview of the workings of the Indian economy. • To help them understand the changing trends in the Indian Economy • To understand the leading issues in India’s economic development. MODULE I STRUCTURE OF THE INDIAN ECONOMY • India- a developing economy, features , Composition of National Income(3hrs) • Demographic profile: Trends in population growth- growth rate, density. age, sex, size, composition (1 hr) Impact of a rising population on economic development(1 hr) National Population Policy 2000 (2 hrs) • Employment in traditional and modern sector, Work force participation rate in India, Analysis of the trend in occupational pattern – Estimates of unemployment in India, Measures to reduce unemployment.(3 hrs) • Brief overview of the recent rural and urban poverty alleviation programmes -, Mahatma Gandhi National Rural Employment Guarantee Act,Jawarharlal Nehru National Urban Renewal Mission (2005) Swarna Jayanthi Shahari Rozgar Yojana (2009) (4hrs) • Regional inequalities- measures to reduce regional inequalities (1 hr) [TOTAL: 15hrs] MODULE II AGRICULTURE • Trends in agricultural production , causes for low agricultural production (2 hrs) • Agricultural Inputs- irrigation -defects , modern irrigation systems, watershed development, dry land farming Research and development ,Plant bio-technology, fertilisers ,pesticides (4 hrs) • Land reforms –need for Land reforms and appraisal of Land reforms in India (2hrs) • Animal husbandry, horticulture , floriculture , aqua culture (2 hrs) • Sources of agricultural finance, micro finance , rural infrastructure development fundNABARD (3hrs) • Agricultural marketing- defects, Agricultural prices Policy- procurement price and minimum support price (3 hrs) • Concept of food security, Food security in India ,Public Distribution System (2hrs) [TOTAL: 20 hrs] MODULE III INDUSTRY Industrial policy resolution 1948, 1956 and Industrial Policy 1991- a critical appraisal – Strengthening of the private sector , Liberalisation and Globalisation - Public-private partnership (4hrs) • Public sector enterprises in India –origin and growth and problems - disinvestment – (4 hrs) • Concept of Sunrise industries . Performance of the following industries in IndiaTextiles and garments Gems and Jewellery, Bio technology , Engineering and automobile industry, (5hrs) • Small scale industries- problems, prospects and challenges.(3hrs) [TOTAL: 14 hrs]

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MODULE IV INFRASTRUCTURE (PHYSICAL AND SOCIAL) • Sources of Power in India- conventional and non conventional-The energy crisis- Rajiv Gandhi Gram Vidyuth Karun Yojana (2 hrs) • Telecom and Information Technology (1 hr) • Transport system- Road transport system in India – Railways – Water transport and Civil aviation (4 hrs) • Health sector- National Rural Health Mission (2hrs) • Education -Sarvasiksha Abhiyan (2hrs) [TOTAL: 11 hrs] REFERENCE BOOKS 1) 2) 3) 4) 5)

Ruddar Datt and K.P.M. Sundharam -Indian Economy Misra SK and V.K.Puri-The Indian Economy Its Development Experience Uma Kapila-An overview of Indian Economics-volume I-IV Agarwal A..N –Indian Economy :Problems of development and planning Academic Foundation – Economic Development of India –Monthly updates.

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Semester VI EC-6109 - DEVELOPMENT ECONOMICS-COMPULSORY PAPER Course Objectives: • To make students aware of the economic principles / theories that can be used to understand various issues and policies of developing economies. • Study how resources, institutions, mechanisms are used for development. • Aims to analyze and understand the allocation, distribution and utilization of scarce resources in the process of development. • Study transformation of developing countries. Module I :Development economics- Concepts and issues related to economic development (10)hours Terminologies – Meaning of Development- values in development, Human CapabilitiesMeaning of Economic growth – Distinction between economic development and economic growth.(2) Measurement of development- -PCI, HDI, PQLI, GDI, Green GDP (2) Characteristic features of developing nations( 2)- Factors facilitating development – Economic and non economic factors –(2) Obstacles to development- vicious circle of poverty – scarcity of capital – market imperfections.(2) Module II: Resources for development (16 hrs) Natural Resources and economic development (2) Human Resources- Human capital formation- Capital (4) – Resources for Capital Formation- Domestic resources(Domestic savings , taxation , deficit financing, profits from public sector enterprises) – Foreign Capital (3)– Role of the Entrepreneur in economic development (1 ) Technology and development – Role of technology in economic development (2) Capital – output ratio – incremental capital -output ratio – Factors determining Capital – output ratio (2) Choice of techniques – Labour intensive techniques versus capital intensive techniques.(2) Module III: Poverty, economic inequality and development (6) hours Conceptual issues. Absolute and relative poverty, poverty line- vicious circle of poverty, Inequality of income and wealth distribution; Lorenz Curve, Effects of inequality Poverty Alleviation methods- redistribution, Sen’s capacity building. Module IV: Theories of economic development and economic growth(21)hours • Adam Smith ‘s contribution to the theory of development (3) • Karl Marx ‘s theory of development.(3) • Rosenstein – Rodan – Big Push theory (3) • Ragnar Nurkse –Balanced Growth (2) • Hirschman-Doctrine of Planned Unbalanced Growth(3) 20

• •

Rostow’s Stages of Development (3) Harrod-Domar- Theory of Capital Accumulation(4)

Module V: State and Development( 6) hours Role of the state in promoting economic development – Change in institutional framework , Agricultural development -Industrial development – infrastructure – removal of regional disparities (2) State and planning, decentralised planning and people participation.(2) Role of Monetary Policy and Fiscal Policy in Development. 2 hrs Module VI: Case studies( To Be given as Assignment to the students) A brief overview of emerging economies – Brazil, India , China , South Africa and Mexico

Reading List: 1. Ray ,Debraj .Development Economics., Princeton University Press. 1998(basic text). 2. Mikkelson,Britha.Methods for development work and research. Sage pub.1995. 3. Nawab Syed, Naqvi Haider .Development Economics – Nature and Significance.. Sage Publication, New Delhi. 2002. 4. Hunt Diana. Economic Theories of Development – An Analysis of Competing Paradigm. Harvester Wheatsheaf, New York. 1989. 5. Kuotsai, Tom Liou Handbook of Economic Development. Edited. . Marcel Dekker Inc. New York. 1988. 6. Meir Gerald, Stiglitz Joseph. Frontiers of Development Economics. Oxford University Press and World Bank Institute. 2001. 7. Basu Kaushik.Analytical Development Economics., Oxford University Press, 1988. 8. Das Debendra K. Globalization and Development – Experiences and Challenges. Deep and Deep Publication, New Delhi. 1999. 9. Baker ,Judy L Evaluating Impact of Development Projects on Poverty – A Handbook for practitioners., World Bank Institute. 2000. 10. Banberger ,Michael. Integrating Quantitative and Qualitative Research in Development Projects. World Bank, 2000. 11. Rabindra Bhattacharjee Ed,Environmental Economics – An Indian Perspective. Oxford University Press. 2001. 12. Sengupta Ramprasad. Ecology and Economics., Oxford University Press. 2001. 13. World Bank Reports. Various Issues. 14. Human Development Report. Various Issues. 15. Asian Development report. Various Issues. 16. S.K Mishra and V.K Puri, Economics of Development and Planning, Himalaya Publishing House. 17. Todaro,Micheal.Developing economies. 18. Higgins,Benjamin. economic development(principles,problemsand policies). 19. Meir,G.M,Baldwin.R.E.economic development

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ST .JOSEPH’S COLLEGE (AUTONOMOUS) BANAGLORE 560027 SEMESTER VI-ECONOMICS OPTIONAL PAPER-EC.6209-ENTREPRENEURSHIP AND BUSINESS DEVELOPMENT Course Objectives: 1. To motivate students to venturing into entrepreneurship as an alternative career option. 2. To develop and equip students with the necessary knowledge, skill and attitudes for pursuing Entrepreneurship Course Content:

60 hours

Module I: Entrepreneurship- Concepts and Theories Entrepreneurship-definition, role of entrepreneurship in economic development; types ,entrepreneurship mind set ,skills required in entrepreneurship, intrapreneurship, Schumpeter’s theory of innovation, Peter Drucker, Locus of control ,McClelland achievement motivation(12 hours) Module 2: Developing a Business Plan Entrepreneurial process- -generating business ideas, identifying and evaluating business opportunities, product evolution and innovation, developing business plan, new entry strategy. The marketing plan -Market Analysis– market research for the new venture, elements of marketing- mix- product, price, promotion and place, SWOT analysis. Marketing strategy, growth. Ethics and social responsibility of entrepreneurs. (18 hours)

Module 3: The Organizational Plan Types of companies- limited and unlimited; proprietary, partnership and corporation. Formation of companies-documents –memorandum of association, articles of association, prospectus. Designing the organization- Principles of management, building the management team. Legal issues for entrepreneurs –patents, trade marks, copy rights, licensing, signing of contract .(12 hours) Module 4: The Financing Plan Activities of a Business - Operating Activities, Investing Activities and Financing Activities. Sources of New Venture Funding. Angel Investors, Venture Capitalists, Private Equity, Public Equity, and Banks-5 C’s of lending. Preparing Financial Projections- Basic Financial Concepts-–book keeping, financial accounting, cost in decision making- Break Even Analysis, Ratio analysis (concepts) (12 hours) Module 5: Net Working for Entrepreneurs Net working for entrepreneurs- Social net working, Role of Govt. Agencies in Promoting Entrepreneurship, Small Industries Services Institutes, SIDBI, Khadi and Village Board and Financial Institutions, self help groups, women entrepreneurs. (6hours) 22

BASIC TEXT BOOK Hirsch. D Peters, Peters P Michael, and Shepherd A Dean (2007) Entrepreneurship, VI Edition , Tata McGraw- Hill , Delhi. Zimmerer- Entrepreneurship SEMESTER VI- ECONOMICS OPTIONAL PAPER-ENTREPRENEURSHIP DEVELOPMENT TOPICS FOR ASSIGNMENTS Students can choose to do their assignment on any topic given below. They must register the topic with the course facilitator. Assignments should be of 1500 words or less typed on single side, 1 ½ spaced, Times New Roman, font size 12. Tables and graphs if used are excluded from word limit. In all cases of interviews it is suggested to develop the interview into a case study using the case study guide lines given. 1. Meet two entrepreneurs and discover the meaning of the term entrepreneurship from them. Identify the factors that motivated them to start their own venture. What values, skills and attitudes do you believe have contributed to their taking entrepreneurship as career? 2. Meet two individuals who wanted to become entrepreneurs but did not do so. Ask them why they first considered to become entrepreneurs and later why did they drop their plans. What were the major obstacles they felt that stood in their way? 3. Using John Mullin’s seven domain tool, identify how the two entrepreneurs you are interviewing have identified his/her business interest. 4. Generate business ideas especially in any of the fields like old age, destitute women, slum dwellers, rural poor, working children, caring for the sick. You can choose other field of interest as well. Develop any of the idea into a business plan. 5. Innovate any existing product or service and design a marketing plan for the product. 6. Find two examples of firms that pioneered a new product in a new market and were able to achieve long run success based on that entry and two who were not pioneers but eventually took over the pioneer as market leader .In your opinion why did this happen . 7. Give two examples of firms that have used imitation as a way of reducing risk of their entry. What aspect of risk did it want to reduce and was it successful in doing so. 8. Interview two entrepreneurs and discover how the entrepreneur has been able to strike a balance between ethics and business needs. 9. Interview entrepreneurs to gain insight into the team working process in the business. 23

10. Make a study of the financing methods and the problems faced by two startup entrepreneurs. 11. What volume of sales is required to reach break even for the following business. The variable cost of producing one unit of the product is Rs 5, the fixed cost of plant and labor is Rs 50, 00,000 and the selling price of a single product is Rs 50. How useful will this financial plan be when it is based on the assumption of the future and we know that we are not confident that these assumptions are not going to be 100 % correct. Explain what can go wrong with such plans 12. Attempt to make a study of the various sources of funding in an established business. 13. Interview a business loan officer at a bank to determine the banks lending criteria for small businesses and for new businesses. Do they use the 5 Cs for lending? Which of the 5 Cs appear to be the most important? 14. Assume that you have been lucky and have been given a considerable fortune. You now decide to become a business angel straight after graduation. How would you go about setting up and running your business angel business. Be specific about generating deal flow, selection criteria, the desired level of control and involvement in the investee. 15. Find two examples of product/service advertising available in magazines / print/ recorded and explain how they fit in with the rest of the marketing mix and which group of customers have been targeted. 16. How costly is it to put an advertisement in the local newspaper, in the business telephone directory, on radio, on television and in magazines. What types of products would benefit from each such advertising outlet mentioned .Why? 17. Using the internet obtain copies of two patents that are at least three years old. What are the elements that are common and different across these patterns? Which one do you believe will be a greater success? 18. Find information about two ventures that were failures and discuss the underlying reasons for the failure in each case. 19. Identify the various Govt and local bodies that are involved in the setting up of an enterprise in India. Explain the type of support they give to start up ventures. 20. Interview two men and two women entrepreneurs and find out whether they believe that the tasks of being entrepreneur are different from their counterparts. What are the advantages of being women / men entrepreneurs? 21. What are the world’s most famous trade marks? Use data to back up your answer. 22. Interview a self help group and study how they run their business. 24

SEMESTER VI- OPTIONALPAPER II EC 6309 : FINANCIAL ECONOMICS & MANAGEMENT Objectives: 1) To help the students to understand & learn the working of capital markets. 2) To have knowledge of capital market and money market. 3) To help in financial decision making. Module-I: Theoretical background to financial economics • Introduction-Definition of financial economics. (1 hr) • Theoretical background – Individual behaviour under Uncertainty: Choices involving risk – The St. Petersburg paradox and Bernoulli’s hypothesis (3 hrs). Neumann – Morgenstern method of constructing utility index under risky situations .(3hrs) • Attitude towards risks- Risk averter ,risk lover ,risk neutral.(3 hrs) • Friedman –Savage hypothesis.(3hrs) • Markowitz hypothesis .(2hrs) Total- 15 hrs Module II- Asset pricing and valuation • Time value of money : present value , net present value and internal rate of return(6 hrs) Law of one price and arbitrage (1 hr) Total – 7 hrs Module-III Sources of finance • Basic concepts-Financial planning (2 hrs) –Capitalization ( 2hrs)-Financial analysis (2 hrs) -Money market & capital Market. Primary (security) market and Secondary market (3 hrs)-Cost of raising capital (2 hrs) -Investment bankers(1 hr) • Futures and options (1 hr) • Long term Finance-Shares, Concepts types-Preference shares-advantages, limitations(2 hrs) Equity shares-( 2 hrs) Debt Capital-Debentures-Mutual funds. (1 hr) Total- 18 hrs Module-IV: Indian capital market • Indian capital market-Constituents, Merchant banking activities-Recent trends in capital market-Venture capital. (4 hrs) • Evolution of stock exchange- Role of SEBI. (2 hrs) Total 6 hrs ModuleV: Capital structure-meaning, need & importance-(2 hrs) Optimum Capital structureTheories of capital structure-traditional theory (3 hrs), Modigliani-Miller theory-(2hrs) Capital gearing,(2 hrs) capital structure and cost of capital (2 hrs).Portfolio managementtheories capital asset pricing model. (3hrs) Total 14 hrs REFERENCE BOOKS: 1) J.L.Farul-Portfolio management 2) Financial economics & management-Banerjee & Agarwal 3) Contemporary investment:security & portfolio-Douglas Hearth 4) Security analysis & portfolio management-Donald fisher. 5) Principles of Financial Economics, by Stephen F. LeRoy and JanWerner, Cambridge University Press, First Edition. 25

6) Financial Theory and Corporate Policy, by Thomas E. Copeland, J.Fred Weston and Kuldeep Shastri, Addison Wesley, Fourth Edition. 7) Empirical Corporate Finance (International Library of Critical Writings in Financial Economics) by Michael J. Brennan 8) Zvi Bodie , Robert merton , David Cleaton - Financial economics (Pearson) 9) M.P.Narayanan , Vikram .K..Nanada-Finance for strategic decision making (Wiley ,India)

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