COURSES OF STUDIES U.G. Economics (Honours and · PDF fileSyllabus-Academic Session 2012-15...

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COURSES OF STUDIES

U.G. Economics (Honours and Elective)

SEMESTER EXAMINATION

2014-17

DEPTARTMENT OF ECONOMICS

RAVENSHAW UNIVERSITY CUTTACK-753003

2

Under Graduate Course

Department of Economics

Ravenshaw University, Cuttack

Syllabus-Academic Session 2012-15

FIRST SEMESTER Total Hours (Weekly) Total credit

SL.No. Paper Code Paper Name Marks L T P/S C

1. AH-1.1.1 Principles of Economics-I 50 3 1 0 3

2. AH-1.1.2 Mathematics for Economics-I 50 3 1 0 3

3. AH-1.1.3 Statistics for Economics-I 50 3 1 0 3

SECOND SEMESTER


1. AH-1.2.4 Principles of Economics-II 50 3 1 0 3

2. AH-1.2.5 Mathematics for Economics-II 50 3 1 0 3

3. AH-1.2.6 Statistics for Economics-II 50 3 1 0 3

THIRD SEMESTER


1. AH-2.3.7 Micro Economics -I 50 3 1 0 3

2. AH-2.3.8 Macro Economics- I 50 3 1 0 3

3. AH-2.3.9 Development Economics –I 50 3 1 0 3

FOURTH SEMESTER


1 AH-2.4.10 Micro Economics -II 50 3 1 0 3

2 AH-2.4.11 Macro Economics -II 50 3 1 0 3

3. AH-2.4.12 Development Economics -II 50 3 1 0 3

3

FIFTH SEMESTER


1. AH-3.5.13 Micro Economics - III 50 3 1 0 3

2. AH-3.5.14 Indian Economy -I 50 3 1 0 3

3. AH-3.5.15 Public Finance-I 50 3 1 0 3

4. AH-3.5.16 Elementary Econometrics 50 3 1 0 3

5. AH-3.5.17 International Economics-I 50 3 1 0 3

6. AH-3.5.18 Monetary Economics-I 50 3 1 0 3

SIXTH SEMESTER


1. AH-3.6.19 Macro Economics - III 50 3 1 0 3

2. AH-3.6.20 Indian Economy -II 50 3 1 0 3

3. AH-3.6.21 Public Finance-II 50 3 1 0 3

4. AH-3.6.22 History of Economic Thought 50 3 1 0 3

5. AH-3.6.23 International Economics-II 50 3 1 0 3

6. AH-3.6.24 Monetary Economics-II 50 3 1 0 3

4

SEMESTER- I

PRINCIPLES OF ECONOMICS- I

(PAPER-1.1.1)

Unit I Basic Concepts of Economics

i) Scope and Method of Economics: What is Economics, Why study Economics, Scope

and Fields of Economics, The methods of Economics, The Economic Policy, PPF-some

elementary ideas, different economic systems-elementary ideas, How to read and

understand graphs; slope: nature and measurement.

ii) Demand, Supply and Market Equilibrium: Firms and Household; input markets and

output markets: The Circular Flow; Demand and supply, individual and market demand

and supply and their determinants, Market Equilibrium, Price rationing and alternative

Rationing Mechanisms; Price Elasticity and its determinants.

iii) Household Behaviour and Consumer Choice: The consumption decisions –Choices

made by Households; budget constraints, Basis of Choice: Utility; Diminishing MU,

allocating income to maximise utility, income and substitution effects, Consumer Surplus,

Meaning and Properties of Indifference curves, Consumers’ optimum choice, Household

labour supply decision, Income and substitution effects of a wage change

Unit II Firm Behaviour and Market:

i) Production: Production, Behaviour of profit maximizing firms, Production Functions with

one variable factor of production, TP, MP, AP, Production Functions with Two variables factor of

production, Isoquant and Isocost lines, Cost minimising equilibrium Condition,

ii) Cost and Revenue Functions: Accounting and Economic costs, Costs in the short run,

Fixed costs, variable costs, Marginal costs, Long run AC and MC, TR,MR,AR, (in perfect

competion and monopoly)---Concepts and Graphs, Output decision taking Costs and

Revenues (Total and Marginal methods)

iii) Markets, Perfect and Imperfect, Features of Perfect Competition, Monopoly,

Oligopoly and Monopolistic markets

Unit III Input Markets and International Economics

i) Input Markets: Labour, Land and Capital Markets (Basic concepts), Demand for inputs,

Diminishing Returns, Marginal Revenue Product, Input demand curve; Labour Market

and demand for labour; shifts in input demand curves; Land markets and rent, Capital

Market, Capital Income-Interest and profit

ii) The International Economy: Trade surpluses and deficits, the economic basis for

trade—absolute advantage andcomparative advantage, terms of trade, exchange rates;

Trade Barriers--tariffs, subsidies and quotas; The cases for free trade or protection

Basic Readings

1. Case Karl E. and Fair Ray C. Principles of Economics, Pearson Education Asia

Additional Readings

1. Mankiw N. Gregory. Principles of Economics, Thomson.

2. Stiglitz J.E. and Walsh C.E. Principles of Economics, W.W. Norton & Co, New York.

5

. SEMESTER- I

MATHEMATICS FOR ECONOMICS -I

(PAPER: 1.1.2)

Unit I Basic Concepts

Sets and set operations. Real Numbers, Ordered pairs, Cartesian products, intervals, Some

properties of Point Sets in Rn

– Euclidean distance, Є- neighbourhood, boundary point of

a set, open, closed and bounded sets, convex combination, convex sets, interior points,

strict convexity vs weak convexity, Relations and Functions, Basic terminologies of

functions, types of functions: polynomial functions-linear, quadratic, cubic and nth

degree

polynomial, rational functions, rectangular hyperbola, power, exponential and

logarithmic functions, composite functions, the inverse function, and their curve types.

Sequence and series- the concept of convergence of a sequence and its limit at a point;

Properties of a convergent sequence; Series- arithmetic, geometric and harmonic

Unit II Differential Calculus

Univariate calculus:Continuity of a function, the concept of slope of a function, derivative

of a function, conditions for differentiability, rules of differentiation: sums, products and

quotients of functions, composite functions and the Chain Rule, inverse functions,

derivative of different types of functions, indeterminate forms and L’Hopital’s Rule.

Second and higher order derivatives. Applications to verify concavity and convexity,

Taylor’s series formula and the mean value theorem.

Unit III Linear Algebra

Systems of linear equations: properties of their solution sets; matrices-elementary

operations- matrix addition, product, rank of a matrix, determinants and their properties,

inverse of a matrix, application of Cramer’s rule for solution of a system of linear

equations.

Vector spaces: algebraic and geometric properties, scalar products, basis of a vector

space, orthogonality; linear transformations: properties, The Eigenvalue problem, spectral

decomposition of a square matrix, Quadratic Forms- positive/negative definite, semi-

definite and indefinite forms.

Basic Reading List

1. Hoy, Michael, John Livernois, Chris Mckenna, Ray Rees and Thanasis Stengos,

Mathematics for Economics, PHI Learning

Additional Reading List

1. Sydsaeter Knut and Hammond Peter J. Mathematics for Economic Analysis. Pearson

Educational Asia

2. Chiang Alpha C. and Wainwright Kevin. Fundamental Methods of Mathematical

Economics. McGraw Hill

3. Silberberg Eugene and Suen Wing. The Structure of Economics: A Mathematical

Analysis, Irwin McGraw Hill.

6

SEMESTER- I

STATISTICS FOR ECONOMICS-I

PAPER-A.H 1.1.3

Unit I Measures of Central Tendency

Arithmetic Mean, Median and Mode (for both Grouped and Ungrouped Data), Properties

of Arithmetic Mean, Graphical Location of Median and Mode, Comparison of Mean

Median and Mode; Geometric and Harmonic Mean, Index Numbers: Their Concept as

Weighted Averages, Problems in the Construction of Index Numbers, Chain Index, Cost

of Living Index Number (Different Formulae), Wholesale Price Index and Cost of Living

Index in India, Base Shifting, Uses of Index Numbers.

Unit II Dispersion, Skewness and Kurtosis

Range, Quartile Deviation, Mean Deviation and Standard Deviation, Properties of

Standard Deviation, Comparison of Different Measures of Dispersion, Measures of

Relative Dispersion–Curve of Concentration, Measurement of Economic Inequality- Gini

Coefficient and Coefficient of Variation/Lorenz Curve, Measures of Skewness and

Kurtosis. The Concept of Moments.

Unit III. Correlation Analysis and Regression

Elementary Analysis of Linear Correlation: Covariance, Scatter Diagram, Coefficient of

Simple Correlation–Properties and the Method of Calculation, Concept of Spearman’s

Rank Correlation.

The Concept of Regression, Regression Lines and their Estimation in a Bivariate series,

Least Squares Method, The Concept of r2 and Standard Error of Estimate.

Basic Reading List

1. Gupta, S.C. Fundamentals of Statistics, Himalaya Publishing House, Delhi

2. Gupta, S.C and V.K. Kapoor, Fundamentals of Mathematical Statistics, S Chand &

Co

Additional Reading list

1. Goon A. M, Gupta M. K. and Dasgupta B. Fundamentals of Statistics, Vol-I World

Press, Kolkata

2. Mood. A. M, Graybill, F A. and Boes D. C. Introduction to the Theory of Statistics,

McGraw Hill.

3. Mukyopadhyay P. Mathematical Statistics. Kolkata Publishing House.

4. Murray R. Speigel Theory & Problems of Statistics, Schaum’s Publishing Series.

5. Nagar and Das, Basic Statistics, OUP.

7

SEMESTER- II

PRINCIPLES OF ECONOMICS- II

(PAPER-1.2.4)

Unit I Introduction to Macroeconomics

The roots of macroeconomics, Difference between micro and macro economics,

macroeconomic concerns, the role of government in the macro economy, the components

of the macro economy, the methodology of macroeconomics.

Introduction to National Income Accounting: Concepts of GDP, GNP and national

income, approaches to calculating GDP, personal income, Nominal and real GDP,

Limitations of the GDP concept, GDP and the black economy.

The Classical System: The Full-Employment Model: Macroeconomic Equilibrium, the

labour market, the product market, the capital market; extending the full employment

model.

Unit II The Simple Keynesian Model

Aggregate expenditure and equilibrium output--aggregate output and aggregate income,

equilibrium aggregate output; Government participation in the economy; Fiscal policy at

work--The Multiplier effect.

Money in the Modern Economy: Characteristics of a monetary economy; The demand for

money; The supply of money and overall liquidity position; credit creation.

Unit III Inflation and Open Economy

The causes of inflation, level of prices and the value of money, the Fisher effect, the cost

of inflation.

Balance of Payments--The current and capital account; Determining equilibrium output in

an open economy; Open economy with flexible exchange rates--Markets for foreign

exchange, Factors affecting exchange rates, effects of exchange rates on the economy.

Basic Readings

1. Case Karl E. and Fair Ray C. Principles of Economics, Pearson Education Asia


Additional Readings

1. Stiglitz J.E. and Walsh C.E. Principles of Economics, W.W. Norton & Company,

New York.

2. Stone R. and Stone G. National Income and Expenditure, Bowes and Bowes London.

8

SEMESTER- II

MATHEMATICS FOR ECONOMICS -II

(PAPER: 1.2.5)

Unit I Optimization

Necessary conditions for unconstrained maxima and minima, points of inflexion; Second

order conditions, optimization over an interval,

Multivariate calculus: partial and total differentials of first and second order Applications

to verify convexity/ concavity and quasiconvexity/quasiconcavity, unconstrained

optimization- first order conditions for optimisation, second order conditions, Constrained

optimization with equality constraints: Lagrange method- first and second order

conditions.

Unit-II Integral Calculus

Riemann integral- partition over an interval and Riemann Sum, integrability of a function,

fundamental theorem of integral calculus, properties of definite integrals,

Improper integrals- applications in measuring consumer surplus and present value of an

indefinite stream of payments under continuous discounting,

Indefinite integrals- Rules of integration; Techniques of integration- substitution rule and

integration by parts

Unit-III Dynamics Methods

Linear first-order difference equations, non-linear first order difference equations, linear

second order difference equations

Linear first order differential equations, non-linear first-order differential equations, linear

second order differential equations.

Basic Reading List

1. Hoy, Michael, John Livernois, Chris Mckenna, Ray Rees and Thanasis Stengos,

Mathematics for Economics, PHI Learning

Additional Reading List

1. Sydsaeter, Knut and Hammond Peter J. Mathematics for Economic Analysis. Pearson

Educational Asia

2. Chiang, Alpha C. and Wainwright Kevin. Fundamental Methods of Mathematical

Economics. McGraw Hill

3. Silberberg, Eugene and Suen Wing. The Structure of Economics: A Mathematical

Analysis, Irwin McGraw Hill.

4. Silberberg, E. The Structure of Economics, 2nd Edition McGraw Hill International

Edition,

9

SEMESTER- II

STATISTICS FOR ECONOMICS- II

(PAPER-1.2.6)

Unit I Sampling Theory and Probability

Principal steps in a sample survey; methods of sampling: random-simple and stratified

random sampling, types of SRS and STRS, properties of random samples; non-random

sampling, sampling vs. non-sampling errors, Probability: Concepts of Sample Space and

Events, Probability of an Event, Addition and Multiplication Theorems; Conditional

Probability and Independence of Events; Bayes theorem.

Unit II Probability Distributions

Probability Distributions: Concept of a Random Variable, Discrete and Continuous

Random Variable, Probability Density Function, Mathematical Expectation and Its

Properties, Sampling Distribution of Sample Mean and Sample Variance

Theoretical Distributions: Binomial distribution- its properties, Poission distribution and

its properties, poission distribution as a limiting case of binomial distribution, normal

distribution-its properties, nomal distribution as a limiting case of binomial distribution,

Central Limit Theorem

Unit III Estimation and Hypothesis Testing

Estimation: parameter and statistic, estimates and estimators, point estimators and its

properties (small sample and asymptotic properties), confidence intervals for population

parameters

Hypothesis Testing: Defining statistical hypotheses; null vs alternative hypotheses, Type

I and Type II errors; power of a test; the concept of degrees of freedom; testing

hypotheses related to population parameters based on Z, t, χ2 and F-tests.

Basic Reading List

1. Gupta, S.C. Fundamentals of Statistics, Himalaya Publishing House, Delhi

2. Gupta, S.C and V.K. Kapoor, Fundamentals of Mathematical Statistics, S Chand & Co

Additional Reading list

1. Goon A. M, Gupta M. K. and Dasgupta B. Fundamentals of Statistics, Vol-I World

Press, Kolkata

2. Mood. A. M, Graybill, F A. and Boes D. C. Introduction to the Theory of Statistics,

McGraw Hill.

3. Mukyopadhyay P. Mathematical Statistics. Kolkata Publishing House.

4. Murray R. Speigel Theory & Problems of Statistics, Schaum’s Publishing Series.

5. Nagar and Das, Basic Statistics, OUP.

10

SEMESTER- III

MICRO ECONOMICS - I

PAPER-A.H-2.3.7

Unit I Consumer’s Choice

Consumer preferences, assumptions about preferences, indifference curves, cases of

perfect substitutes, perfect complements, bads, neutrals, satiation, discrete goods and well

behaved preferences, the marginal rate of substitution, behavior of MRS, Constructing a

utility function from indifference curves;

The budget constraint, properties of budget set, changes in budget line, the numeraire,

taxes, subsidies, and rationing;

Utility function-ordinal and cardinal utility; constructing indifference curves from a utility

function and vice-versa, some examples of utility functions- perfect substitutes, perfect

complements, quasi-linear preferences, Cobb-Douglas preferences, Marginal utility and

MRS

Optimal choice and consumer demand in ordinal preferences, optimal choice under

different goods and preferences- perfect substitutes, perfect complements, neutrals and

bads, discrete goods, concave preferences, Cobb-Douglas preferences

Unit II Demand

Normal and inferior goods, income offer curve and the Engel Curve, Shapes of income

offer curves and Engel Curves in cases of- presence of inferior good, perfect substitutes,

perfect complements, Cobb-Douglas preferences, homothetic preferences, quasi-linear

preferences; ordinary goods and giffen goods, the price offer curve and the demand

curve, shapes of price offer curves and offer curves in cases of perfect substitutes, perfect

complements, discrete goods; gross substitutes and gross complements, the inverse

demand function

Slutsky equation: the substitution effect, the income effect, the total change in demand,

the rates of change, the law of demand, income and substitution effects in cases of perfect

complements and perfect substitutes, quasi-linear preferences, Hicks substitution effect,

compensated demand curves

Consumer’s surplus: Marshallian and Hicksian (Compensating and Equivalent Variation)

Unit III Technology, Production and Cost

Inputs and outputs, technological constraints and production set, examples of technology-

fixed proportions, perfect substitutes, Cobb-Douglas; properties of technology, the

marginal product, the rate of technical substitution, diminishing marginal product, the law

of variable proportions and the law of returns to scale

Cost: fixed and quasi-fixed cost, sunk cost, variable costs; average costs- average fixed

cost and average variable costs; marginal costs and variable costs, long-run costs- LAC

and LMC, factors behind cost behavior: economies and diseconomies of scale

11

Production with two outputs- Economies of scope; dynamic changes in costs-the Learning

Curve

Profit maximization for a firm in short-run and long-run, profit maximization and returns

to scale; cost minimization

Basic Readings

1. Varian H. R. Intermediate Micro Economics: A Modern Approach. Affiliated East -West

Press

2. Pindyck R S. and Rubinfeld D. L. Micro Economics. Prentice Hall, India

Additional Readings

1. D. N. Dwivedi. Micro Economics Theory and Applications. Pearson Education.

2. Nicholson Walter and Snyder Christopher, Microeconomic Theory-Basic Principles and

Extensions. Cengage Learning

3. Maddala G. S. and Miller E. Micro Economics. McGraw-Hill International Editions.

12

SEMESTER- III

MACRO ECONOMICS- I

PAPER-A.H-2.3.8

UNIT I National Income and its measurement

Introduction to National Income, Concepts of GDP, GNP, GDP Gap, GDP Deflator and

national income, Rules and Methods of Measurement of GDP (Income, expenditure and

Out Put method), Circular Flow of Income and expenditure in two, three, and four-sector

economy. Measuring Inflation rate and Unemployment rate; The Relation between GDP

Gap, Inflation rate and unemployment Gap.

UNIT II Classical Macroeconomics

The aggregate supply function-Production function and aggregate supply curve; Say’s law

of markets, Output and Employment in classical theory, the quantity theory of money and

aggregate demand function , classical model with and without saving and investment.

Keynes’ objection to the classical theory.

UNIT III Keynesian Macroeconomics

Keynesian equilibrium, the consumption function, effective demand, the multiplier, the

simple Keynesian model of income and output determination, Keynes’ fundamental

psychological law of consumption and its implication. Government participation in the

economy; Fiscal policy at work-The Fiscal Multiplier effect.

Basic Readings

1. N. Gregory Mankiw. Macroeconomics, Worth Publishers, 7th

edition, 2010.

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

3. Ackley, G. (1976), Macroeconomics: Theory and Policy, Macmillan Publishing Company

Additional Readings

1. Dornbusch, Fischer and Startz, Macroeconomics, McGraw Hill, 11th edition, 2010.

2. Errol D’Souza, Macro Economics, Pearson Education, 2009.

3. D. Dasgupta. The Macroeconomy, Oxford University Press, 1997

13

SEMESTER III

DEVELOPMENT ECONOMICS-I

PAPER-A.H 2.3.9

Unit I Economic Growth and Development

Meaning of development and Economic growth, Characteristics of less developed

countries. Factors in Economic development, Measuring development and development

gap — per capita income, inequality of income and wealth, Gini coefficient, Human

Development Index , Physical Quality of Life Index, and other indices of development,.

Unit II Theories of Economic Development

Theories of Economic Development: Classical (Smith, Ricardo, Malthus), Marxian –

Theory of Social change, immutable laws, Crisis in capitalism, Schumpeter and capitalist

development, Rostow’s stages of growth.

Unit III Approaches to Economic Development

Partial theories of growth and development: Vicious circle of Poverty, Circular causation,

Theory of unlimited supply and labour, big push, balanced growth, unbalanced growth,

circular causation theory, Critical Minimum Effort Thesis, Low level of equilibrium trap,

Dualism: Technical, behavioural and social

Basic Readings

1. Ghatak, S. An Introduction to Development Economics, Allen and Unwin, London.

2. Todaro, M. P. Economic Development, Longman, London.

3. Thirwal, A. P. Growth and Development, Macmillan, U. K.

Additional Readings

1. Adelman, I. Theories of Economic Growth and Development. Stanford University

Press, Stanford.

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

& 2 Elsevier, Amsterdam.

3. Kindleberger, C. P. Economic Development, McGraw Hill, New York.

4. Myint, H. Economic Theory and Underdeveloped Countries. Oxford University Press,

New York.

14

SEMESTER IV

MICRO ECONOMICS-II

PAPER- AH 2.4.10

Unit I Analysis of Competitive Markets-I

Characteristics of Perfect Competition, Price determination

Market demand: From individual to market demand, elasticity and demand, elasticity and

revenue, income elasticity and cross elasticity

Competitive supply: pure competition, the supply decision of a competitive firm, the shut

down condition, the inverse supply function, Profits and producer’s surplus in the short-

run, the long-run supply curve of a competitive firm,

Industry supply curve in the short-run, elasticity and market supply; the industry long-run

supply curve of under different cost conditions, the meaning of zero profits, fixed factors

and economic rent, producer surplus in the long-run

Unit II Analysis of Competitive Markets-II

Evaluating the gains and losses from government policies- consumer and producer

surplus, efficiency of a competitive market, minimum prices, price support and

production quotas, import quotas and tariffs,

Competitive factor market- demand for a factor input when (a) only one input is variable,

(b) when several inputs are variable; the market demand and market supply of inputs,

equilibrium in a competitive factor market

Unit II Monopoly, Monopsony and Monopolistic Market

Monopoly: Characteristics, average revenue and marginal revenue, output decision of a

monopolist- short-run and long-run equilibrium, mark up pricing, Equilibrium of a multi-

plant Monopolist, inefficiency of monopoly, monopoly power and its sources, deadweight

loss from monopoly power, natural monopoly; Monopsony and monopsony power

Monopoly behavior: Price discrimination under Monopoly: First degree, second degree

and third degree price discrimination

A note on monopolistic competition- selling cost, excess capacity in monopolistic

competition

Basic Readings


2. Varian H. R. Intermediate Micro Economics: A Modern Approach. Affiliated East -

West Press

Additional Readings

1. Nicholson Walter and Snyder Christopher, Microeconomic Theory-Basic Principles

and Extensions. Cengage Learning

2. Maddala G. S. and Miller E. Micro Economics. McGraw-Hill International Editions.


15

SEMESTER- IV

MACRO ECONOMICS- II

PAPER- A.H 2.4.11

UNIT I Theories of consumption and investment

Consumption function, theories of consumption –Absolute, relative, permanent and life

cycle income hypothesis. The decisions to invest- Autonomous and Induced investment,

MEC and MEI schedule. Profit and accelerator theories of investment. The rate of interest

and the rate of investment, the role of finance beyond the interest rate.

UNIT II Neo-classical and Keynesian Synthesis

Neo-classical and Keynesian views on interest; Simple IS-LM approach to the

determination of equilibrium interest rate. Elasticity and shifts of IS and LM schedules.

Extension of IS-LM model with government sector; Relative effectiveness of monetary

and fiscal policies; Crowding out hypothesis. Extension of IS-LM models with labour

market and flexible prices.

UNIT III. Open Economy Models:

The international flows of capital and goods, saving and investment in an open economy.

Mundell-Fleming model -Asset markets, expectations and exchange rates The small open

economy under floating and fixed exchange rates. Open economy and policy measures-

fiscal, monetary and trade policies.

Basic Readings


edition, 2010.

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

3. Errol D’Souza, Macro Economics, Pearson Education, 2009.

Additional Reading


2. Ackley, G. (1976), Macroeconomics: Theory and Policy, Macmillan Publishing

Company,New York

16

SEMESTER IV

DEVELOPMENT ECONOMICS-II

PAPER-A.H-2.4.12

Unit I Economic Development and Institutions

The choice of technology; Appropriate technology and employment in LDCs; Efficiency

of small-scale vs. large-scale production; Markets and market failure; State and state

failure; Issues of good governance. Need for investment criteria in LDCs-Types; Cost

Benefit Analysis, Alternative investment criteria.

Unit II International aspects of Economic Development

International trade as an engine of growth; Static and dynamic gains from trade; Prebisch,

Singer and Myrdal theses vs. free trade; Export-led growth; Tariffs and effective

protection; WTO and developing countries. External resources; FDI; Aid vs. trade; Need

for planning, Types – Democratic, Decentralized and Indicative planning. Micro-level

planning.

Unit III Development and Environment

Environment- Economy linkage; Environment as a necessity and luxury; Population-

environment linkage. Allocation problem; Market failure for environmental goods;

environment as a public good, Common Property Resources, Property right approach to

environmental problem-property rights approach, property rights and environmental

problems, Coarse theorem, Coarse theorem and transaction cost. Prevention, control and

abatement of pollution. Concept and indicators of sustainable development.

Basic Readings

1. Thirlwal, A.P. Growth and Development. Macmillan, London.

2. Tadaro M. P. and Smith. Economic Development. Pearson.

3. Meier G. M. Leading Issues in Economic Development. Oxford University Press, New

Delhi.

4. Ghatak S. An Introduction to Development Economics. Allen and Unwin, London.

Additional Readings

1. Adelman, I. Theories of Economic Growth and Development. Stanford University Press,

Stanford.

2. Behrman, S. and Srinivasan T. N. Handbook of Development Economics. Vol.I to III,

Elsevier, Amsterdam.

3. Chakravarty, S. Development Planning: The Indian Experience. Clarendon Press,Oxford.

4. Hayam, Y. Development Economics, Oxford University Press, New York.

5. Kindeberger, C. P. Economic Development. McGraw Hill, New York.

6. Kolstad, C.D. Environmental Economics, Oxford University Press, New Delhi.

17

SEMESTER-V

MICRO ECONOMICS-III

PAPER A.H-3.5.13

Unit I Game Theory

Game Theory: The pay of matrix of a game, two person zero sum and constant – sum

game, pure strategy and saddle point solutions, concept of Nash equilibrium, method of

dominance and mixed strategies, the Prisoner’s Dilemma and the Commons problem.

Unit II Oligopoly

Characteristics and sources of oligopoly, Price and Output Determination under

Oligopoly: Duopoly models of Oligopoly (Cournot, Bertrand, Chamberlin and

Stackelberg); Kinked Demand curve.

Collusive Oligopoly: Cartels-Joint profit maximization and market sharing; Price

Leadership – model of low cost firm, large dominant firm and barometric price

leadership. Concepts of single and multiple basing point price system.

Unit III General Equilibrium and Welfare Economics

Interrelations and Interdependence of Markets; General Equilibrium in Exchange and

Production; General Equilibrium in Competitive Product Market.

Pareto optimality, competitive equilibrium and pareto optimality, welfare theorems,

Social welfare functions, Concept of fairness, Arrow’s impossibility theorem

Basic Readings

1. Varian H. R. Intermediate Micro Economics: A Modern Approach. Affiliated East -West

Press


Additional Readings 1. Jehle and Reny, Advanced Microeconomic Theory, Pearson India

2. Nicholson Walter and Snyder Christopher, Microeconomic Theory-Basic Principles and

Extensions. Cengage Learning


18

SEMESTER V

INDIAN ECONOMY-I

PAPER-A.H.3.5.14

Unit I Structural change of post independent Indian economy

Indian Economy at the time of Independence- Features of Indian Economy around 1947-

1950 and characteristics of economic underdevelopment of India (with reference to

colonial rule of India)- Trend in National Income and Percapita income; Sectoral

composition (output and employment) - Primary, Secondary and Tertiary Sectors; Broad

demographic features — Population size and growth rates, sex composition, occupational

distribution;

Unit 2 Indian Agriculture and Industry in pre reform period

Changing contour of agriculture- performances,growth rates,composition and cropping

pattern;Institutional set-up of land system and land reform, Green Revolution and

technological changes; Structure and composition of Industry – issues of concentration,

large vs small industry – industrial location. Small scale reservation policy. Trends and

patterns of industrial growth; industrial policies prior to 1991; development in service

sector.

Unit 3 Resource mobilization and Planning in India

Evolution of economic planning in India; Economic Planning - Rationale, Features and

Objectives; Strategy of Planning; types of plans and planning; a dynamic analysis of 5

year plans in India; Broad achievements and failures; Current Five Year Plan —

Objectives, allocation, strategy and targets.

Indian tax system; Public expenditure in India- pattern and growth; Public debt, Deficit

and subsidies in the Indian economy; Centre-state financial relation.

Basic readings

1. Kapila U. Indian economy since Independence. Academic Foundation, New Delhi

2. Misra, S. K. and Puri V. K. Indian Economy — Its Development Experience.

Himalaya Publishing House, Mumbai

3. Dutt R. and Sundharam K. P. M. Indian Economy. S. Chand & Company Ltd., New

Delhi.

Additional Readings

1. Mathur R. Indian Economic Policy and Reform. RBSA Publisher, Jaipur

2. Jalan B. Indian Economic Policy. Penguin Books Ltd

3. Government of India, Economic Survey (Annual), Economic Division, Ministry of

Finance, New Delhi.

19

SEMESTER V

PUBLIC FINANCE – I

PAPER-3.5.15

UNIT I Public Goods

Meaning and scope of public finance, public finance vs. private finance, fiscal functions-

allocation, distribution and stabilisation role of government, public goods - pure and

partial public goods, private goods and merit goods, characteristics of public goods,

rationale of public provision of public goods, free rider problem and externality, the role

of government – taxes vs. regulation, fundamental principle of public finance – Maximum

Social Advantage.

UNIT II Public Expenditure

Classification and growth of public expenditure, Wagner’s law of increasing state activity,

Peacock- Wiseman Hypotheses, cannons of public expenditure, effects of public

expenditure on production, distribution and economic activities, public sector pricing

policy-average cost and marginal cost pricing, Criteria for public investment- Social cost-

benefit analysis, Evaluation under risk and uncertainty.

UNIT - III Public Revenue

Sources and classification of public revenue- tax and non tax revenue, direct and indirect

taxes, effects of tax on production, distribution and economic activities. Principles of

taxation – Benefit theory, Ability to pay theory, Burden of taxation: Neutrality in taxation,

shifting and incidence of taxation, taxable capacity, allocative and equity aspect of

taxation

Basic Readings

1. Musgrave, R.A, The Theory of Public Finance,

2. Atkinson and Stiglitz. Lectures on Public Economics,

3. Ghosh Ambar and Ghosh Chandana Economics of the Public Sector, PHI

4. Musgrave, R.A . Public Finance in Theory and Practices. McGraw Hill

5. Rosen Harvey, Public Finance. McGraw Hill

Additional Readings

1. Due, John F and Friedlander, Government Finance.

2. Goode R. Government Finance in Developing Countries. Tata McGraw Hill.

3. Herber B. P. Modern Public Finance.

4. Houghton J. M. The Public Finance: Selected Reading, Penguin

5. Mathew T. Economics of Public Expenditure, Vora

20

SEMESTER- V

ELEMENTARY ECONOMETRICS

PAPER-A.H 3.5.16

Unit I Elements of Statistical Inference

Theory of Estimation-parameter and statistic, estimates and estimators, point estimators

and their properties (small sample and asymptotic properties), Central Limit Theorem,

Methods of estimation: Least squares and Maximum Likelihood method, Interval

Estimation: confidence interval

Testing of Hypothesis: Null vs Alternative hypotheses, Simple and Composite

Hypothesis, Procedure for testing of hypothesis, Type I and Type II errors; level of

significance, power of a test; degrees of freedom; Likelihood ratio test, Newmann-pearson

Lemma.

Unit II Regression Models

Two-variable linear regression model, Assumptions, OLS method of estimation,

Importance of stochastic error term, Gauss-Markov theorem, Standard Errors of

regression coefficients, Concepts and derivation of R2 and adjusted R

2, ANOVA,

Normality assumptions, Maximum likelihood estimation; K-variable linear regression

model: estimation of the model.

Unit III Problems in Regression Analysis

Multicollinearity- sources, effects, detection and solution; Heteroscedasticity- tests,

consequences, solution; Autocorrelation- sources, consequences, detection, remedies.

Basic Reading

1. Gujarati D. N., Basic Econometrics, Mc Graw Hill, New Delhi.

2. Gupta S.C., Fundamentals of Statistics, Himalaya Publishing House Pvt. Ltd,

Mumbai.

3. Gupta S.C and Kapoor V.K., Fundamentals of Mathematical Statistics, Sultan Chand

& Sons, New Delhi

4. Johnston J., Econometric Methods (2nd

edition), Mc Graw Hill, New Delhi

Additional Readings

1. Kmenta J., Elements of Econometrics, University of Michigan Press

2. Wooldridge, Introduction to Econometrics

21

SEMESTER V

INTERNATIONAL ECONOMICS-I

PAPER- AH 3.5.17

Unit I Importance of Trade and Trade Theories

Importance of the study of International Economics; Inter-regional and international

trade; Theories of absolute advantage, comparative advantage and opportunity cost;

Factor Endowments and Heckscher-Ohlin theory of trade — its main features,

assumptions and limitations, Empirical studies - Leontief Paradox, Rybzynski effect,

Factor price equalization and Stolper-Samuelson Theorem.

Unit II Trade and Economic Growth

Gains from trade— their measurement and distribution; Technical Progress and

International Trade, Growth and Trade: Small and Open country cases, Concepts of terms

of trade and their importance in the theory of trade; Doctrine of reciprocal demand — its

importance and limitations in the theory of trade.

Unit III International Trade Policy

Trade restrictions: Tariff. Partial Equilibrium analysis of Tariff, Theories of Tariff

structure, Import Quotas and other Non-tariff barriers, Economic Integration: Customs

Union and Free Trade Areas, WTO and India.

Basic Readings

1. Krugman Paul R. and Obstfeld Maurice. International Economics, Pearson Education

2. Salvatore Dominick. International Economics, Wiley India.

3. Sodersten Bo and Reed J. International Economics, McMillan Publisher

Additional Readings

1. Carbaugh Robert. International Economics, South-Western College Publication.

2. Gandolfo Giancarlo. International Trade Theory and Policy, Springer Publication

22

SEMESTER- V

MONETARY ECONOMICS-I

PAPER- AH 3.5.18

UNIT I: Demand for Money:

Classical and Keynesian approaches to demand for money. Post-Keynesian approaches to

demand for money — Patinkin and the Real Balance Effect; Approaches of Baumol and

Tobin; Friedman and the modern quantity theory.

UNIT II: Supply of Money:

RBI approach to money supply; High powered money and money multiplier. Money

supply and open economy; Mechanistic and behavior model of money supply; control of

money supply.

UNIT III: Commercial Banking

Meaning ; Functions of commercial banks; the process of credit creation and its

limitations; Balance sheet of Commercial banks; investment policy, Recent reforms in

banking sector in India.

Basic Readings

1. Gupta, S.B. , Monetary Economics, S. Chand and Co., Delhi.


edition, 2010.

3. Bhole,L. M. Financial Institutions and Markets, Tata Mc Graw Hill Company Ltd. Delhi.

4. Khan M. Y. Indian Financial System Tata McGraw Hill, New Delhi.

Additional Readings

1. Smith, P.F. Money and Financial Intermediation: The Theory and Structure of Financial

System, Prentice Hill, Englewood Cliffs, New Jersey


23

SEMESTER- VI

MACRO ECONOMICS

PAPER- AH 3.6.19

UNIT I New Classical Macroeconomics

The new classical critique of micro foundations, the new classical approaches- the Phillips

curve, natural rate of unemployment, rational expectations, Lucas on micro foundation of

macroeconomics; Policy implications of new classical approach — empirical evidence.

UNIT II Theories of Growth

Harrod-Domar model- instability of equilibrium; Solow and Kaldor growth models.

Technological progress - embodied and disembodied technical progress, Hicks and

Harrod.

UNIT III Business Cycle

Nature and characteristics of business cycle. Schumpeterian theory of business cycle. The

concept of accelerator; Samuelson and Hicks multiplier-accelerator interaction model;

Monetary and Overinvestment theories. Control of trade cycles.

Basic Readings

1. Rosalind Levacic and Alexander Rebman “Macroeconomics”, 1982, McMillan

2. Robert Barro and Xavier Sala-i-Matin, Economic Growth, PHI


edition, 2010.

Additional Readings

1. Ackley, G. (1976), Macroeconomics: Theory and Policy, Macmillan Publishing Company

2. D. Dasgupta. The macroeconomy, oxford university press, 1997

24

SEMESTER VI

INDIAN ECONOMY-II

PAPER-A.H.3.6.20

Unit I Indian economy in post reform period

Background of Indian Economic Reforms – New Economic Policy; Redefining India’s

development strategy; Changing Role of State and Market Industrial Policy,

Disinvestment policy and Privatization; Financial sector reforms including banking

reform; External sector reforms: Foreign Exchange market, balance of payments, reform,

convertibility, export-import policy, foreign direct investment; Post-reform Agricultural

Performance and its Crisis; Appraisal of Indian Economic Reform.; India’s Growth

Experience

Unit II Issues in Indian economic policy

Population and human resource development; growth unemployment and poverty;

Migration and Urbanization; macroeconomic stabilization: trade, fiscal and monetary

policy issues;

Agriculture: Sustainable agricultural growth-concepts and constraints, prospects for dry

land, Food security, Food Procurement and Public Distribution System.

Industry: performance of public sector, privatization, industrial sickness, Land

acquisition, SEZ and industrialization

Unit III Odisha economy-An overview

A macro glance of Odisha’s economy; social sector in Odisha. Odisha Economy in

relation to India and major states in recent decades, Issues in Agriculture and forest, water

resource, mining, industry and service Sector.

Basic Readings

1. Kapila U ,“Indian economy since independence”, academic foundation, New Delhi(latest

edition)

2. Misra, S.K. and V.K. Puri , “Indian Economy — Its Development Experience”, Himalaya

Publishing House, Mumbai

3. Datt, R. and K.P.M. Sundharam , “Indian Economy”, S. Chand & Company Ltd., NewDelhi

Additional Readings

1. Mathur R, “Indian Economic Policy and Reform”,RBSA publisher,Jaipur

2. Jalan B “Indian Economic Policy”, Penguin Books Ltd


Finance,New Delhi.

4. Economic Survey (Annual), Planning and Coordination Department, Directorate Of

Economics and Statistics, Government Of Odisha.

5. Orissa Development Report, Planning Commission

6. Orissa Human Development Report, UNDP

25

SEMESTER VI

PUBLIC FINANCE - II

PAPER-A.H. 3.6.21

UNIT I Public Debt

Sources of public borrowing, importance of public borrowing, effects of public debt, tax

vs. debt, burden of public debt- classical, Ricardian and others, shifting of debt burden,

intergenerational shifting, methods of debt redemption, debt management

UNIT II Budget

Basic concepts, balanced vs. unbalanced budget, balanced budget theorem and its

criticism, budgetary deficits and their limitations, budget as an instrument of Economic

policy, Zero based budgeting, the salient features of the most recent union budget of

India.

UNIT III Issues in Indian public finance

Black money, taxation of agriculture, subsidies, tax reforms in India: DTC and GST, tax

evasion, trends in deficit spending, expenditure reform, shrinking size of development

finance through budgets, financial autonomy: centre state financial relation.

Basic Readings

1. Ghosh, Ambar and Chandana Ghosh(2008): Economics of the Public Sector, PHI.

2. Musgrave R.A. and P. Musgrave, Public Finance in Theory and Practice, McGraw

Hill International

Additional Readings

1. Buchanan, J., M. (1970): The Public Finances, Richard D.Train Home-wood.Due,

John F and Friedlander, Government Finance

2. Goode R. (1986): Government Finance in Developing Countries Tata McGraw Hill.

3. Houghton, J.M. (1970): The Public Finance: Selected Reading, Penguin,

Harmondsworth.

26

SEMESTER- VI

HISTORY OF ECONOMIC THOUGHT

PAPER-A.H 3.6.22

Unit I Introduction and Early Economic Thought

Rationale of studying Economic Thought; Physiocracy and Mercantilism; Adam Smith

and his Economic theory, Ricardo’s contribution to classical Economic thought, Ricardo-

Malthus glut controversy, S Mill’ ideas, A general Overview of Classical Economic

Thought,

Unit III Radical Dissent: Marxism and Structuralism

Marxian Economic Thought: Historical Materialism, The Labour Theory of Value,

Theory of Money, Theory of Capital Accumulation, Distribution, Capitalist

Reproduction, Disproportionality and Theories of Crisis, Marx vs Classicists

Unit III Indian Economic Thought

Main themes of Kautilya’s Arthasashtra; Modern Economic Ideas: Dada Bhai Naoroji,

M.K. Gandhi, village swaraj, machines and labour, cottage industries, Comparison of

Indian Economic thought with western Economic thought.

Basic Readings

1. Gide, Charles and Rist, Charles (1973): A History of Economic Doctrines, Oxford

University Press.

2. Roll, Eric, History of Economic Thought, Faber and Faber Ltd.

Additional Readings

1. O’Brien, D P (1975): Classical Economists, Oxford, Clarendon Press.

2. Ekelund, Robert B. and Robert F. Hebert, A History of Economic Theory and Method,

third edition, New York: McGraw Hill, 1990

3. Henry W. Spiegel, The Growth of Economic Thought, 3rd

ed. Durham: Duke

University Press, 1991

4. Tom Bottomore (1980): Dictionary of Marxist Thought, Basic Blackwell Publishers.

5. Dasgupta, A K (1986): Epochs of Economic Theory, Oxford University Press, New

Delhi

6. Schumpter, J A (1954): History of Economic Thought, Oxford University Press

27

SEMESTER VI

INTERNATIONAL ECONOMICS-II

PAPER- AH 3.6.23

Unit I Exchange Rate

Concept and Types of Exchange Rate (bilateral vs trade-weighted exchange rate, cross

exchange rate, spot, forward, futures), Demand for and Supply of foreign exchange,

Exchange Rate Determination: Trade or Elasticity Approach, Purchasing-Power Parity

Theory, The Monetary Model to Exchange Rates, Asset or Portfolio Model of Exchange

Rates. Fixed versus Flexible exchange rate.

Unit II Balance of Trade and Payments

Concepts and components of balance of trade and balance of payments; Equilibrium and

disequilibrium in balance of payments; Consequences of disequilibrium in balance of

payments; Various measures to correct deficit in the balance of payments; Monetary

approach to Balance of Payments, Concept and implications of foreign trade multiplier.

Unit III International Economic Institution

Functions of GATT/WTO (TRIPS, TRIMS), UNCTAD, IMF, World Bank and Asian

Development Bank — Their achievements and failures; WTO and World Bank from the

point of view of India. Forms of economic cooperation; Reforms for the emergence of

international monetary system and trading blocks at the global level. Basic Readings

1. Krugman Paul R. and Obstfeld Maurice. International Economics, Pearson Education

2. Salvatore Dominick. International Economics, Wiley India.

3. Sodersten Bo and Reed J. International Economics, McMillan Publisher

Additional Readings

1. Carbaugh Robert. International Economics, South-Western College Publication.

2. Gandolfo Giancarlo. International Trade Theory and Policy, Springer Publication

3. Gandolfo Giancarlo. International Finance and Open-Economy Macro Economics,

Springer Publication

4. Copeland Laurence. Exchange Rates and International Finance, Addison Wesley

Publication.

28

SEMESTER VI

MONETARY ECONOMICS-II

PAPER- AH 3.6.24

UNIT 1 Central Banking

Functions of a central bank; Quantitative and qualitative methods of credit control — The

Reserve Bank of India: Roles and Functions, Monetary Policy of the RBI, , Liquidity

Adjustment Facility (LAF). Limitations of monetary policy of RBI.

UNIT 2 Financial Markets:

structure of money market and capital market — Call money market. Treasury bill

market, Commercial bill market including commercial paper and certificate of deposits,

Government securities market, Primary and secondary market for securities.

UNIT 3 NBFIs

Definition and Types of NBFIs: UTI, Mutual Funds, Insurance Companies, Provident

Funds and Pension Funds, Growth and impact of NBFIs, Control of NBFIs. The

Securities and Exchange Board of India: Genesis, Organizations, Objectives and

Functions, Performance of SEBI, IRDA and its role in financial markets, Financial Sector

reforms in India.

Basic Readings

1. Gupta, S.B. , Monetary Economics, S. Chand and Co., Delhi.

2. Bhole,L. M. Financial Institutions and Markets, Tata Mc Graw Hill Company Ltd.

Delhi.


29

Economics UG Elective

2014-17

30

FIRST SEMESTER Total Hours (Weekly) 20 Total credit 20

SL. Course

Code

Course Name Marks L T P/S C

1 AE-1.1.1 Principles of Economics-I 50 3 1 0 4

2 AE-1.1.2 Monetary Economics-I 50 3 1 0 4

SECOND SEMESTER

SL. Course

Code


1 AE-1.2.3 Principles of Economics-II 50 3 1 0 4

2 AE-1.2.4 Monetary Economics-II 50 3 1 0 4

THIRD SEMESTER

SL. Course

Code


1 AE-2.3.5 Indian Economy-I 50 3 1 0 4

2 AE-2.3.6 Public Finance-I 50 3 1 0 4

FOURTH SEMESTER

SL. Course

Code


1 AE-2.4.7 Indian Economy-I 50 3 1 0 4

2 AE-2.4.8 Public Finance-I 50 3 1 0 4

31

SEMESTER- I

PRINCIPLES OF ECONOMICS- I

PAPER-AE-1.1.1

Unit I Subject matter of Economics: Definition and Scope; The Economic Problem:

Scarcity and Choice. Supply and Demand: Determinants of individual and market

demand/supply, Elasticity of demand- price, Income and cross elasticities.

Meaning and Properties of Indifference curves, Consumers’ equilibrium, Price

effect, income and substitution effects.

Unit II Production and Cost

Meaning of production; Production function: Short run and long run production

function; Producer’s equilibrium;

Cost: Concepts, Cost output relationship; Short run and long run cost functions;

Economies and diseconomies of scale

Unit III Structure of Market and Price Determination

Behaviour of profit maximizing firms and the production process under Perfect

Competition, costs and output decisions in the short run long run. Imperfect

Market Structure: Monopoly

Basic Readings

1. Case Karl E. and Fair Ray C. Principles of Economics, 6th Edition, Pearson Education

Asia Low Price Edition.


Additional Readings

1. Stiglitz J.E. and Walsh C.E. Principles of Economics, 3rd Edition, W.W. Norton &

Company, New York.


32

SEMESTER- I


PAPER-A.E-1.1.2

UNIT I: Money

Definition of Money: Value of money, Index Number, Monetary Standards; Quantity

Theories of Money- Fisher and Cambridge Approaches.

UNIT II: Commercial Banking Meaning and Functions of commercial banks, Credit Creation, Balance sheet of

commercial bank, Investment Policy.

UNIT III: Central Banking

Functions of a central bank; Quantitative and qualitative methods of credit control- Bank

rate, open market operations, variable reserve ratio and selective methods; The Reserve

Bank of India: Roles and Functions, Limitations of monetary policy of RBI.

Basic Reading

1. Bhole,L. M. Financial Institutions and Markets, Tata Mc Graw Hill Company Ltd. Delhi.


3. S B Gupta, Monetary Economics-Institutions, Theory & Policy Authors Edition, S. Chand

& Company Limited, 1988

Additional Readings

1. Smith, P.F. Money and Financial Intermediation: The Theory and Structure of Financial

System, Prentice Hill, Englewood Cliffs, New Jersey


33

SEMESTER II

PRINCIPLES OF ECONOMICS- II

PAPER-A.E-1.2.3

Unit I Introduction to Macroeconomics: Difference between micro and macro

economics, macroeconomic concerns, the role of government in the macro

economy, the components of the macro economy. Introduction to National Income

Accounting: Concepts of GDP, GNP and national income, approaches to

calculating GDP, personal income, Nominal and real GDP, Limitations of the

GDP concept

Unit II The Simple macroeconomic models: Classical and Keynesian Model: Aggregate

expenditure and equilibrium output--aggregate output and aggregate income,

equilibrium aggregate output;

Unit III Inflation and Deflation: Inflation and Deflation: Nature, Causes and Effects,

Demand-pull and Cost-push inflation, Measures to correct inflation and deflation.

Basic Readings

1. Case Karl E. and Fair Ray C. Principles of Economics, 6th Edition, Pearson

Education, India.

2. Mankiw N. Gregory. Principles of Economics, Cengage Learning.

Additional Readings

1. Stiglitz J.E. and Walsh C.E. Principles of Economics, 3rd Edition, W.W. Norton &

VIVA Company, India


34

SEMESTER- II


PAPER-A.E-1.1.4

UNIT I: Financial Markets:

Role and structure of money market and capital market — Call money market. Treasury

bill market, Commercial bill market including commercial paper and certificate of

deposits, Discount market, Government securities market, Primary and secondary market

for securities.

UNIT II: NBFIs

Definition and Types of NBFIs: UTI, Mutual Funds, Insurance Companies, Provident

Funds and Pension Funds, Control of NBFIs.

UNIT II: Capital market

The Securities and Exchange Board of India: Genesis, Organizations, Objectives and

Functions, Performance of SEBI, IRDA and its role in financial markets, Financial Sector

reforms in India.

Basic Readings

1. Bhole,L. M. Financial Institutions and Markets, Tata Mc Graw Hill Company Ltd.

Delhi.


Additional Readings

1. Frederic S. Mishkin, The Economics of Money, Banking, and Financial Markets, Academic

Internet Publishers

2. S B Gupta, Monetary Economics-Institutions, Theory & Policy Authors Edition, S.

Chand & Company Limited, 1988

35

SEMESTER-III

INDIAN ECONOMY-I

PAPER-A.E-2.3.5

UNIT I: Factors of Development

Capital formation; Levels of technology; institutional factors; Demographic features,

Theory of demographic transition, Occupational composition, Population policy

UNIT II: Poverty and Employment Scenario in India

Poverty: measurement, causes and measures, Unemployment: Types, Causes and

Problems of Unemployment, Disguised unemployment and employment policy

UNIT III: National Income and Planning

National Income estimation in India: inequalities of income and wealth causes, effect and

remedies; Planning: Objectives and strategy and achievement of planning in India.

Basic Readings


2. Dutt R. and Sundharam K. P. M. Indian Economy. S. Chand & Company Ltd., New Delhi

3. Dhar PK , Indian economy, Kalyani Publisher

4. Mishra and Puri, Indian Economy, HPH

Additional Reading


Finance, New Delhi.

36

SEMESTER-III

PUBLIC FINANCE-I

PAPER-A.E-2.3.6

Unit I Introduction:

Definition and scope of public finance, Difference between public finance and

private finance, Merit goods, public goods, private goods and their characteristics,

Principle of maximum social advantage.

Unit II Public expenditure:

Meaning, classification and canons of public expenditure, Causes of growth of

public expenditure, Effects of public expenditure on production, distribution and

economic stability.

Unit III Public Revenue :

Sources of Public revenue, Direct and indirect taxes-Relative merits and demerits.

Proportional and regressive taxes. Theories of taxation- Benefit theory and Ability

to pay theory.

Basic readings

1. Modern Public Finances: B.P.Herber

2. Musgrave, R.A and Musgave, P.B. Public Finance in Theory and Practices. McGraw Hill

3. Public Finance: Theory and Practice, D M Mithani, HPH

Additional Reading


37

SEMESTER-IV

INDIAN ECONOMY-II

PAPER-A.E.-2.4.7

UNIT I: Resource Mobilization:

Saving and Investment in India: Mobilization of financial resources for plans: Role of

deficit financial and foreign aid

UNIT II: Industrial policies of the Government of India:

Relative role of public and private sectors; choice of appropriate technology. Ownership

pattern of industries; Growth of monopoly and concentration of monopoly power

Government policies.

UNIT III: Foreign Trade:

Changing structure of India’s foreign trade independence, Composition and direction of

India’s foreign trade, Trends in Balance of payments: Export promotion and import

substitution

Reading List


2. Dutt R. and Sundharam K. P. M. Indian Economy. S. Chand & Company Ltd., New

Indian Economy: Mishra and Puri

3. Dhar PK , Indian economy, Kalyani Publisher

4. Mishra and Puri, Indian Economy, HPH

Additional Readings


Finance, New Delhi.

38

SEMESTER-IV

PUBLIC FINANCE-II

PAPER-A.E.-2.4.8

Unit I Shifting and Incidence of Tax:

Effects of taxation on production, Distribution and economic stability. Dalton’s

principle of incidence; Incidence of Commodity taxes, forward and backward

shifting.

Unit II Public Debt:

Private and public debt, Sources of public borrowing limitations of public debt,

Economic effects of public debt on production distribution and other economic

activities; Methods of debt redemption.

Unit III Budget:

Balanced and unbalanced Budget, Relative merits and demerits, Budget as an

instrument of growth, Equity and stability, Deficit financing for economic

development and its limitations.

Basic Readings

1. Herber, B.P.Modern Public Finances, AITBS, New Delhi

2. Musgrave, R.A and Musgave, P.B. Public Finance in Theory and Practices. McGraw

Hill

3. Mithani, D M. Public Finance: Theory and Practice, HPH

Additional Reading


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