Eco

331 School of Social Sciences

SYLLABUS FOR BACHELOR OF SOCIAL SCIENCE (BSS)

IN

ECONOMICS

SESSION: 2008 - 2009

DEPARTMENT OF ECONOMICSSHAH JALAL UNIVERSITY OF SCIENCE AND TECHNOLOGY

SYLHET, BANGLADESH

Department of Economics 332

Department of Economics

First Year: Semester I

Course No. Course TitleHours/Week

Theory + LabCredits

ECO 110 Viva voce 0 + 0 1.0ECO 111 Introductory Microeconomics 4 + 0 4.0ECO 171 Mathematics for Economists I 4 + 0 4.0ECO 172 Mathematics for Economists I (Lab) 0 + 2 1.0PSA 102 Politics and Administration in Bangladesh 3 + 0 3.0BNG 101 Bangla Language 2 + 0 2.0BNG 102 Bangla Language Lab 0 + 2 1.0STA 104 Introductory Statistics 3 + 0 3.0

Total 16 + 4 = 20 19.0

First Year: Semester II


Theory + LabCredits

ECO 120 Viva Voce 0 + 0 1.0ECO 121 Introductory Macroeconomics 4 + 0 4.0ECO 173 Mathematics for Economists II 4 + 0 4.0ECO 174 Mathematics for Economists II Lab 0 + 2 1.0BAN 104 Principles of Accounting 3 + 0 3.0ENG 101 English Language 2 + 0 2.0ENG 102 English Language Lab 0 + 2 1.0STA 106 Statistics I 3 + 0 3.0

Total 16 + 4 = 20 19.0

Second Year: Semester I


Theory + LabCredits

ECO 210 Viva Voce 0 + 0 1.0ECO 212 Intermediate Microeconomics 4 + 0 4.0ECO 251 Economics of Development 4 + 0 4.0ECO 258 Topics in Economic History of Selected Countries 4 + 0 4.0

SOC 101A Principles of Sociology 4 + 0 4.0Total 16 + 0 = 16 17.0

Second Year: Semester II


Theory + LabCredits

ECO 220 Viva Voce 0 + 0 1.0ECO 222 Intermediate Macroeconomics 4 + 0 4.0ECO 236 Banking and Finance 4 + 0 4.0ECO 241 Agricultural Economics 4 + 0 4.0

CSE 205 H Database Management and Programming 2 + 0 2.0CSE 206 H Database Management and Programming Lab 0 + 6 3.0

Total 14 + 6 = 20 17.0


Third Year: Semester I


Theory + LabCredits

ECO 310 Viva voce 0 + 0 1.0ECO 331 International Economics 4 + 0 4.0ECO 357 History of Economic Thought 4 + 0 4.0ECO 386 Economics of Planning & Project Analysis 4 + 0 4.0ECO 387 Economics of Planning & Project Analysis (LAB) 0 + 2 1.0STA 207 Statistics II 3 + 0 3.0

Total 15 + 2 = 17 17.0

Third Year: Semester II


Theory + LabCredits

ECO 320 Viva Voce 0 + 0 1.0ECO 337 Public Finance 4 + 0 4.0ECO 353 Contemporary Issues of Bangladesh Economy 4 + 0 4.0ECO 375 Advanced Topics in Mathematical Economics I 4 + 0 4.0ECO 384 Research Methodology 3 + 0 3.0ECO 385 Field Work for Research Methodology 0 + 2 1.0

Total 15 + 2 = 17 17.0

Fourth Year: Semester I


Theory + LabCredits

ECO 410 Viva voce 0 + 0 1.0ECO 413 Microeconomics 4 + 0 4.0ECO 456 Political Economy of Underdevelopment 4 + 0 4.0ECO 461 Introduction to Econometrics 4 + 0 4.0ECO 462 Introduction to Econometrics (Lab) 0 + 2 1.0ECO 477 Advanced Topics in Mathematical Economics II 4 + 0 4.0ECO 481 Research Project I 0 + 4 2.0

Total 16 + 6 = 22 20.0

Fourth Year: Semester II


Theory + LabCredits

ECO 420 Viva Voce 0 + 0 1.0ECO 423 Macroeconomics 4 + 0 4.0ECO 425 Monetary Economics 4 + 0 4.0ECO 463 Econometrics 4 + 0 4.0ECO 464 Econometrics (Lab) 0 + 2 1.0ECO 476 Economics of Growth and Technological Change 4 + 0 4.0ECO 482 Research Project II 0 + 4 2.0

Total 16 + 8 = 24 20.0Grand Total 146

N.B: Students are required to complete at least 140 credits for the degree of Bachelor of Social Sciences (BSS) in Economics. All students of economics must complete successfully all courses in microeconomics, macroeconomics and econometrics. Moreover, 20% of all (140) credit hours must be earned in minor courses (i.e. a total of minimum 28 credits in minor courses out of the required 140 credits).


Detailed Syllabus

MINOR COURSES

ECO 101 PRINCIPLES OF MICROECONOMICS4 Hours/week, 4 credits

1. Introduction: Definition and scope of economics; basic concepts and tools used in economics; economic problem - scarcity of resources; economic method – types of economics; microeconomics vs. macroeconomics; measuring economic variables.2. Demand, Supply and the Market: Concepts of demand and supply; market equilibrium; laws of demand and supply; shifting demand and supply curves; application of demand and supply; price ceiling and price floor; various elasticities of demand and supply; measurement of elasticity; elasticity and consumer expenditures; application of elasticity concepts.3. Theory of Consumer Behaviour: Utility analysis of demand; paradox of value; law of diminishing marginal utility; law of equi-marginal principle; cardinal vs. ordinal utility; consumer's preference - law of preference; indifference curve analysis; properties of indifference curves; different shapes of indifference curves; budget constraints; consumer's equilibrium; derivation of demand curve using indifference curves; complements and substitutes; elementary concepts of income and substitution effects of a price change; consumer and producer surplus,4. Theory of Firm: Production and costs - production function; single variable input; total, average and marginal products; law of diminishing marginal returns; stages of production; several variable inputs; law of variable proportions; short run and long run production, and cost concepts with relevant graphical analysis; iso-quant, iso-cost and producers’ equilibrium; returns to scale.5. Theory of Business Organization: Business firms and the market; why do firms exist; objective(s) of firms; different types of business firms, and their advantages and disadvantages; financing corporate activity,6. Market: Structure of markets; characteristics of different types of markets; perfect competition and monopoly - price and output determination, monopolistic competition.

Recommended Books: Arnold, R A (2007): Economics, South Western Publishing Company, Eighth Edition,Browning, E K and M A Zupan (2006): Microeconomics – Theory and Applications, Ninth Edition Koutsoyiannis, A (2003): Modern Microeconomics, Palgrave Macmillan, Second Revised EditionMankiw, N G (2006): Principles of Economics, Thomson South Western Publishing, Fourth EditionSamuelson, P A and W D Nordhaus (2005): Economics, McGraw-Hill USA, Eighteenth Edition.Stiglitz, J E and C E Walsh (2005): Principles of Microeconomics, W, W Norton and Co Inc. USA

ECO 102 PRINCIPLES OF MACROECONOMICS4 Hours/week, 4 credits

1. Introduction to Macroeconomics: Definition of macroeconomics; macroeconomic performance, objectives and instruments of macroeconomics.2. Measuring national product and national income: GNP vs. GDP - concept and measurement; GDP and GNI; NI and personal disposable income; GDP and spending; nominal and real GDP; comparing income levels between different countries.3. Determination of National Income and Investment: the circular flow; components of aggregate demand and planned spending; aggregate demand; equilibrium output; changes in equilibrium output; the multiplier; investment, the paradox of thrift.4. Money and Banking: definition and functions of money; different types of money; banking – from goldsmith banking to modern banking; commercial banks and multiple deposit creation.5. Central Banking and Monetary System - functions of central bank, money supply, open market operations, high-powered money and the money stock, money multiplier.6. Taxes and government expenditure: principles of taxation; types of taxation, heads of government expenditure.7. Budget and Fiscal Policy: government in the circular flow; objectives of fiscal policy.8. Inflation and Unemployment: Types and causes of Inflation, expected & unexpected inflation: cost of inflation: money supply and the price level: velocity and quantity Equation, types and causes of unemployment, remedial measures, Phillips curves.9. International trade: Concepts of absolute and comparative advantage; terms of trade; economics of protection - concepts on tariff and non-tariff barriers, arguments for & against protection.

Recommended Books: Arnold, Roger A (2007): Economics, South Western Publishing Company, Eighth Edition,Dornbusch, Rudiger et al (2004): Macroeconomics, McGraw-Hill International, Ninth EditionMankiw, N G (2006): Principles of Economics, Thomson South Western Publishing, Fourth EditionSamuelson, P A and W D Nordhaus (2005): Economics, McGraw-Hill USA, Eighteenth Edition.


ECO 103 PRINCIPLES OF ECONOMICS4Hours/week, 4 credits

MICRO1. Introduction: Definition and scope of economics; basic concepts and tools used in economics; economic problems - scarcity and resources. 2. Demand, Supply, and Market: Concept of demand, supply and equilibrium; determinants of demand and supply; shifting of demand and supply curves; application of demand and supply; elasticity of demand and supply.3. Theory of Consumer Behaviour: Concepts of utility; paradox of value; law of diminishing marginal utility; indifference curve; budget constraint; consumer’s equilibrium.4. Theory of Firm: Production function; law of diminishing return; stages of production; law of variable proportion; short run and long run production and costs.5. Market: Structure of markets; characteristics of different types of markets; perfect competition and monopoly - price and output determination, monopolistic competition.

MACRO 1. Introduction to Macroeconomics: Definition: macroeconomic performance: measuring national product & national income-GNP, NNP, NI; personal disposable income; national & real GNP; circular flow of Income, value added approach. 2. Determination of national income: Components of aggregate demand & planned spending; aggregate demand; equilibrium output/Income Multiplier model of income and spending. 3. Money & banking: Definition & functions of money, components of money supply and money demand, multiple deposit creation, commercial banks & the money stock; functions of central bank, open market operations; high-powered money. 4. Inflation and Unemployment: Types and causes of inflation, expected & unexpected inflation: cost of inflation: money supply & the price level: velocity & quantity equation, types and causes of unemployment, remedial measures, Phillips Curve.

Recommended Books: Arnold, R A (2007): Economics, South Western Publishing Company, Eighth Edition,Browning, E K and M A Zupan (2006): Microeconomics – Theory and Application, Ninth Edition Koutsoyiannis, A (2003): Modern Microeconomics, Palgrave Macmillan, Second Revised EditionMankiw, N G (2006): Principles of Economics, Thomson South Western Publishing, Fourth EditionSamuelson, P A and W D Nordhaus (2005): Economics, McGraw-Hill USA, Eighteenth Edition.Stiglitz, J E and C E Walsh (2005): Principles of Microeconomics, W, W Norton and Co Inc. USA

ECO 204 ECONOMICS OF DEVELOPMENT4 Hours/week, 4 credits

1. Meaning of development: traditional and new approaches,2. Structures and characteristics of developing countries 3. Growth, poverty and income distribution; size and functional distributions of income, inequality and poverty in LDCs, growth vs income distribution debate, policies,4. Economics of population and development: theory of demographic transition, the Malthusian population trap, the micro-economic theory of fertility; policy approaches,5. International trade: export characteristics, primary exports as an engine of growth, barriers to primary export led growth, import substitution on industrialization, outward looking development.6. Foreign aid and investment: foreign aid - historical role, impact of aid on development, foreign investment and the multinational corporations,7. Labour and growth: characteristics of labor markets, labour reallocation, employment policy

Recommended Books: Misra S K and V K Puri (2005): Economics of Development and Planning, Seventh EditionMeier G M (1989): Leading Issues in Economic Development, Oxford University Press, UK, Fifth EditionThirlwall A P (2006): Growth and Development – With Special Reference to Developing Countries, Palgrave Macmillan, Eighth EditionTodaro M P and S C Smith (2005): Economics of Development in the Third World, Longman, Ninth Edition


MAJOR COURSES

VIVA-VOCE

At the end of each semester, throughout the degree program, every student will be required to appear at a viva-voce examination on all the courses taken during the semester.

Course Course Title Semester CreditsECO 110 VIVA VOCE First Year First 1.0ECO 120 VIVA VOCE First Year Second 1.0ECO 210 VIVA VOCE Second Year First 1.0ECO 220 VIVA VOCE Second Year Second 1.0ECO 310 VIVA VOCE Third Year First 1.0ECO 320 VIVA VOCE Third Year Second 1.0ECO 410 VIVA VOCE Fourth Year First 1.0ECO 420 VIVA VOCE Fourth Year Second 1.0

ECO 111 INTRODUCTORY MICROECONOMICS4 Hours/week, 4 credits

1. Exploring the Subject Matter of Economics: Definition, scope and methods of Economics, The economic problem: production and distribution, production possibility frontier, economic models and theories; measuring economic variables, working with graphs.2. Supply and Demand – How Market Works: determinants of individual demand and supply; demand/supply schedule and demand/supply curve. Market vs. individual demand/supply, complements and substitutes; market equilibrium: demand-supply analysis, control of prices; taxes and cost of taxation; the Engel curve and income elasticity of demand; price elasticity and cross elasticity of demand; constant slope vs. constant elasticity functions; determinants of responsiveness of demand to price. 3. Consumer Behavior: Utility, preference and rational choice; cardinal and ordinal utility; characteristics of indifference curves for goods bads and neuters; the optimum of he consumer; derivation of the demand curve; price effect and price consumption curve.4. Firms, Production and Cost: Firms and circular flow of economic activity; the role of firm and its goal as an optimizing agent; short-run vs. long-run production functions; laws of production – returns to scale and law of variable proportion; short run and long run cost functions, rising costs and diminishing returns. 5. Perfect Market Structure: Taxonomy of markets, the optimum of the competitive firm; from firm supply to market supply; short-run and long-run supply; firm survival and zero-profit theorem.6. Perfect Market Structure - Monopoly: Monopoly and non-profit goals; monopoly profit maximizing optimum; monopoly and economic efficiency; regulation and monopoly; monopolistic price determination; cartels

Recommended Books:

Required Textbooks(s):Hirschleifer J, H David and G Amihai (2005): Price Theory and Applications: Decisions Markets and Information, Sixth edition Chambridge University Press, UKKoutsoyiannis A (2003): Modern Microeconomics, Palgrave Macmillan, Second Revised Edition

Book(s) on Reserve:Arnold, R A (2007): Economics, South Western Publishing Company, Eighth EditionBrowning, E K and M A Zupan (2006): Microeconomics – Theory and Applications, Ninth Edition Mankiw, N G (2006): Principles of Economics, Thomson South Western Publishing, Fourth EditionPindyck, R S and D L Rubinfeld (2005): Microeconomics, Prentice-Hall India, Sixth editionSamuelson, P A and W D Nordhaus (2005): Economics, McGraw-Hill USA, Eighteenth EditionStiglitz, J E and C E Walsh (2005): Principles of Microeconomics, W, W Norton and Co Inc. USA

ECO 121 INTRODUCTORY MACROECONOMICS4 Hours/week, 4 credits

1. Introduction to Macroeconomics: Definition of Macroeconomics, Macroeconomic performance, objectives and instruments of macroeconomics,2. Measuring National Product and National Income: GNP-concept and measurement, GNP and NI, NI and personal disposable income, GNP and spending, nominal and real GNP, comparing income levels in different countries,3. Determination of National Income: the circular flow, components of aggregate demand and planned spending; aggregate demand, equilibrium output, changes in equilibrium output, the multiplier, the paradox of thrift,


4. The Economy in the long -run: the classical market clearing model – the supply of goods and services, the demand for goods and services, the money stock, price level and inflation rate.5. The Economy in the very long -run: the economics of growth – growth accounting, growth theory and growth policy.6. Money and Banking: definition and functions of money, different kinds of money; banking – from goldsmith banking to modern banking, commercial banks and multiple deposit creation, functions of central bank, money supply, open market operations, high-powered money and money multiplier and monetary policy7. Budget and Fiscal Policy: Principles of taxation, types of taxation, government expenditure policy, objectives of fiscal policy, 8. Inflation and Unemployment: definitions, measures of inflation, types of inflation, classical and Keynesian theory of inflation, monetarist view of inflation, modern theories of inflation – demand pull and cost push; unemployment – definitions and types, inflation-unemployment trade off.

Recommended Books: Arnold, R A (2007): Economics, South Western Publishing Company, Eighth Edition,Dornbusch, Rudiger et al (2004): Macroeconomics, McGraw-Hill International, Ninth EditionMankiw, N G (2006): Principles of Economics, Thomson South Western Publishing, Fourth EditionSamuelson, P A and W D Nordhaus (2005): Economics, McGraw-Hill USA, Eighteenth Edition.

ECO 171 MATHEMATICS FOR ECONOMISTS I 4 Hours/week, 4 credits

1. Set theory and Theory of numbers: Concepts of Sets & subsets, Cartesian products, functions and relations, binary operation on the sets N, Q, R as algebraic system, equivalence relations, equivalent sets, countable & uncountable sets, open and closed sets, interior and boundary of a set.2. Functions and Graphs: Concept, graphical representation, relation Vs function, types of functions - constant, polynomial, rational, inverse, exponential and logarithmic functions, equation and identities, linear and non-linear models of market equilibrium, increasing and decreasing functions, slopes of linear and non-linear functions.3. Limits and Inequalities: Concept, sequence of limit, limit theorems, rules and solutions of inequalities.4. Calculus: (i) Concept of a derivative and its geometric interpretation, continuity and differentiability of a function, rules for computing derivatives, higher order derivatives, applications – maxima and minima, using derivatives for graphing, application to economics – production, cost, revenue, profit and demand functions with their total, average and marginal concepts.(ii) Partial and total derivatives – concept, economic and geometric interpretations, total differentials, total derivatives, equality constrained and unconstrained maxima and minima, applications in economics.

Recommended Books: Chiang, A C and K Wainwrite (2005): Fundamental Methods of Mathematical Economics, McGraw-Hill, USA, Fourth Edition.Simon, C P and L Blume (2006): Mathematics for Economists, Viva Books Limited, IndiaYamane, Taro (1968): Mathematics for Economists – an Elementary Survey, Prentice Hall India (Reprint, 2007)Weber, J E (1982): Mathematical Analysis, Business and Economic Applications, Harper & Row, Fourth Edition

ECO 172 MATHEMATICS FOR ECONOMISTS I (LAB) 2 Hours/week, 1 credit

The course teacher in the class will announce detailed syllabi.

ECO 173 MATHEMATICS FOR ECONOMISTS II4 Hours/week, 4 credits

1. Vector Space: Definition, linear sum, and inner product space2. Linear Algebra: concepts of vectors and matrices, vector operations-addition, subtraction and multiplication, linear dependence and independence of vectors; matrix operations-addition, subtraction and multiplication, unit or identity matrix, scalar matrix, diagonal matrix, transposition, rank of a matrix, partitioned matrix, determinations, properties of determinants, inverse matrix, properties of inverse matrices, solution of simultaneous equations- Gaussian and Gauss-Jordan elimination method, Cramer's rule, linear dependence, rank and the solution of homogeneous equations, characteristic roots and vectors, quadratic form and definite matrices, economic applications. 3. Calculus: Concepts of Integration, Indefinite and Definite Integrals, methods of integration, applications from a marginal to total functions, investment and capital formation, consumer and producer surplus.4. Concave and Convex Function: Concavity, convexity, quasi concavity and quasi convexity of functions, Homogeneous and homothetic functions, uses in economics.5. Eigenvalues and Eigenvectors: Definitions, properties of eigenvalues repeated and complex eigenvalues6. Optimazation: Structure of an optimization problem, conditions for existence and uniqueness of solutions, for local and global optimum, for interior and boundary optima, Solutions of constrained and unconstrained optimization problems, Kuhn-Tucker formulation, Envelope Theorems-constrained and unconstrained


Recommended Books: Chiang, A C and K Wainwrite (2005): Fundamental Methods of Mathematical Economics, McGraw-Hill, USA, Fourth EditionGravelle, H and R Rees (2004): Microeconomics, Transatlantic Publications, USASimon, C P and L Blume (2006): Mathematics for Economists, Viva Books Limited, IndiaYamane, Taro (1968): Mathematics for Economists – an Elementary Survey, Prentice Hall India (Reprint, 2007)Weber, J E (1982): Mathematical Analysis, Business and Economic Applications, Harper & Row, Fourth Edition

ECO 174 MATHEMATICS FOR ECONOMISTS II (LAB) 2 Hours/week, 1 credit

The course teacher in the class will announce detailed syllabi.

ECO 212 INTERMEDIATE MICROECONOMICS4 Hours/week, 4 credits

1. Theory of Consumer Behavior: Laws of preference; the nature of utility functions and indifference curves; utility maximization; ordinary and compensated demand functions; the Slutsky equation: substitutes and complements; separable and additive utility function; homogeneous and homothetic utility functions, indirect utility functions and duality in consumption. Consumer surplus: compensating and equivalent variation; revealed preference: weak and strong axioms; integrability; composite commodity theorem; price indices,2. Theory of Firm: Cobb - Douglas and CES production functions; elasticity of substitution; Euler’s theorem and its properties; input demand functions, duality in production, cost functions in short run and long run, envelope theorem, 3. Theory of Market: Monopolistic competition; oligopoly and strategic behaviour; quasi-competitive and collusive solution; Cournot solution; Stackelberg solution; product differentiation; limit pricing, average cost pricing,4. Factor Markets: Firms demand for variable factor(s); industry demand for factors; monopsony; resource supply to the market and factor market equilibrium; monopolies and cartels in factor supply.

Recommended Books: Required Textbooks(s):Henderson, J M and R E Quandt (1980): Microeconomic Theory: A mathematical Approach, McGraw-Hill, Third editionHirschleifer J, H David and G Amihai (2005): Price Theory and Applications: Decisions, Markets and Information, Sixth edition Cambridge University Press UKVarian, H R (2005) Intermediate Microeconomics – A Modern Approach, W.W. Norton and Company Inc, Seventh EditionBook(s) on Reserve:Gravelle, Hugs and Ray, Rees (2004): Microeconomics, Trans - Atlantic Publication, USAKoutsoyiannis, A (2003): Modern Microeconomics, Palgrave Macmillan, Second Revised EditionPindyck, R S and D L Rubinfeld (2005): Microeconomics, Prentice-Hall India, Sixth edition

ECO 222 INTERMEDIATE MACROECONOMICS4 Hours/week, 4 credits

1. Review: basic concepts, schools of thought, national income accounting.2. Money, interest and income: goods market and IS curve, assets market and LM curve, equilibrium with goods and assets markets, monetary policies, Keynesian and Classical view, fiscal policy, crowing out, monetary and fiscal policy mix.3. Equilibrium in the open economy: balance of payments and exchange rates, market equilibrium and the balance of trade; capital mobility and the policy mix; perfect capital mobility under fixed and flexible exchange rates.4. Aggregate supply and demand: (a) concepts of aggregate supply and demand; monetary and fiscal policy under alternative supply assumptions; (b) neo-classical model and its amendments, notion of sticky wages, aggregate supply curve, effects of monetary expansion, supply shocks, expansions, contracts and aggregate supply.5. Consumption demand: Keynesian consumption function, Kuznet’s puzzle, relative, life-cycle and permanent income hypothesis.6. Investment spending: residential investment; inventory investment; business fixed investment. Keynesian discounting procedures, simple acceleration and flexible acceleration principle.7. Demand for money and supply of money: Classical quantify theory of money-Fisherian approach, Cambridge cash balance approach Keynesian approach Baumol's inventory theoretic approach, Tobin's Portfolio Theory, the money supply process, determinants of money supply, equilibrium in the money market.8. Policy: Lag in the effects of policy; expectations and reactions; uncertainty and economic policy; dynamic policy and information feedback; activist vs. non-activist policy

Recommended Books:


Branson, W H (1989): Macroeconomic Theory and Policy, Second EditionDornbusch, Rudiger et al (2004): Macroeconomics, McGraw-Hill International, Ninth EditionFroyen, R T: Macroeconomics: Theories and PoliciesHall, R E and J B Taylor (1988): Macroeconomics: Theory, Performance & Policy, Norton, Second Edition

ECO 236 BANKING AND FINANCE 4 Hours/week, 4 credits

1. Banking and the financial services industry: Organization and structure of financial system, Central Bank, Commercial Banks, Non-bank Financial Institutions (NBFIs), Micro Finance Institutions (MFIs), role and importance of financial institutions in maintaining financial stability.2. Policy Issues in Banking and Finance: Central Bank as a regulatory authority, Bank supervision-formulating and implementing prudential regulations, the regulation of non-bank financial institutions, financing government’s budget deficit, open market operations (OMOs), central bank’s principal task: making and implementing monetary policy, maintaining price stability, central bank independence.3. Banking operations: Liquidity and treasury management through OMOs, money creation through money supply process, multiple deposit creation and channeling savings into investment, providing loan to business and consumers, corporate finance consumer loans, credit cards and real estate lending, lease finance and investment banking, international banking services, off-shore banking.4. Evaluating the performance of Fls: Efficiency, location and size of Financial Institutions (Fls), Operating cost, efficiency and performance, maximizing the value of the firm, profitability ratios, ROE, ROA, measuring risk in banking and financial services, credit ratings, financial ratios and other tools to track bank performance, concepts of risk management. 5. Fundamental valuation concepts: the time value of money – net present value, internal rate of returns, pay-back period, accounting rate of return, continuous compounding and discounting.

Recommended Books:Rose, P S and S C Hudgins (2005): Bank Management and Financial Services, McGraw-Hill, USA Sixth Edition Mishkin, F S (2003): The Economics of Money, Banking and Financial Markets, The Addison Wesley Economics Series, Seventh Edition, Rose, P S (2003): Money and Capital Markets: The Financial Institution and Instruments in a Global Market Place, McGraw-Hill/Irwin, Eighth EditionHull, J C (2005): Options, Futures and Other Derivatives, Prentice-Hall international Inc. Sixth Edition

ECO 241 AGRICULTURAL ECONOMICS4 Hours/week, 4 credits

1. Agricultural Economics: application of the theory of economics in agriculture. Structure and characteristics of agriculture in LDCS, contribution of agriculture to economic development-product, market, factor and foreign exchange contributions,2. Economics of agricultural production: review of the factor product the factor-factor and the product-product relationships; technical, allocative and economic efficiency of resource use; efficiency of peasant agriculture-farm size and factor productivity.3. Land tenure and land reform: meaning; types of tenurial arrangements, productivity and efficiency of different tenure groups, economic analysis of share cropping, objectives, forms, costs and benefits of land reform; agrarian reform; experience of land reform in developing countries.4. Production and consumption activities within agricultural households.5. Agricultural marketing and price policy: Cobweb model perverse supply response in backward agriculture; concept of agricultural surplus; marketing of agricultural products; structure and functions of agricultural markets, marketing margin and farm prices; role of government in marketing agricultural products.6. Agricultural credit: Credit in agriculture, sources of credit: agricultural credit institutions, access of small farmers to institutional credit.7. Food and agricultural policy: nature and principles of policy-the elements, classification of instruments, and rules of policy; analyzing the effects of policy instruments-production subsidy, input subsidy and food subsidy, classifying the effects of agricultural policy.

Recommended Books: Brammer, Hugh (1997): Agricultural Development Possibilities in Bangladesh, University Press Ltd, First editionBrown, J G, et al (1994): Agricultural Investment and Operations, the World Bank, First editionColman, David and T Young (1989): Principles of Agricultural Economics, Cambridge University PressGhatak, S and K Ingersent (1984): Agricultural and Economic Development, John Hopkins University PressFrank, Ellis (1988): Peasant Economics, Cambridge University PressEicher, C K and J M Staatz, eds. (1998): International Agriculture Development, Johns Hopkins University Press, Third editionHill, B E and K Ingersent (1982): An Economic Analysis of Agriculture, Heinemann Educational Books, Second editionStevens R D and C L Jabara (1988): Agricultural Development Principles: Economic Theory and Empirical Evidence, John Hopkins University Press


Giffin, K (1979): The political Economy of Agrarian Change - An Essay on Green Revolution, Macmillan Second editionBardhan, P K and Srinivasan (1971):"Crop Sharing Tenancy in Agriculture; A Theoretical and Empirical Analysis”, American Economic Review 61(1)1971.

ECO 251 ECONOMICS OF DEVELOPMENT 4 Hours/week, 4 credits

1. Meaning of Development: traditional and new approaches, changes in the concepts of development2. Structures and Characteristics of Developing countries3. Growth, poverty and income distribution: size and functional distributions of income, growth vs. poverty, and growth vs. income inequality4. Theories of Development: (a) Adam Smith, Malthus, Marx, Schumpeter, Rostow(b) Theories of Dual Economy: Lewis, Fei-Ranis, Social Dualism, Technological Dualism and Financial Dualism(c) Modernization School: Theory of Big Push, Leibenstein’s Critical Minimum Effort, Rosenstein-Rodan, Hirschman, Myrdal5. Economics of Population and Development: theory of demographic transition, the Malthusian population trap, low level equilibrium trap, the micro-economic theory of fertility, policy approaches.6. Foreign Aid and Investment: foreign aid, historical role, impact of aid on development, foreign investment and the Trans national corporations, improvement in the effectiveness of aid debt crisis7. Labour and Growth: Characteristics of labour markets, labour migration, and employment policy

Recommended Books: Basu, Kaushhik (2003): Analytical Development Economics – The Less Developed Economy Revisited, MIT press USAMeier, G M and J E Stiglitz (2001): Frontiers in Development Economics – The future perspective, Oxford University Press, UKMeier, G M (1989): Leading Issues in Economic Development, Oxford University Press, UK, Fifth EditionMisra, S K and V K Puri (2005): Economics of Development and Planning, Seventh EditionRay, Debraj (1998): Development Economics, Oxford and Princeton University PressThirlwall, A P (2006): Growth and Development – With Special Reference to Developing Countries, Palgrave Macmillan, Eighth EditionTodaro, M P and S C Smith (2005): Economics of Development in the Third World, Longman, Ninth Edition

ECO 258 TOPICS IN ECONOMIC HISTORY OF SELECTED COUNTRIES4 Hours/week, 4 credits

1. Case Studies in the Capitalist Process of development:UK: Agrarian revolution in the UK, Industrial revolutionUSA: The great depression and the new deal policyJapan: The process of agricultural development and industrial growth of Japan, the role of state in the economic development Japan, the growth of foreign trade2. Case Studies in the Socialist development: Former USSR: War Communism and new economic policy, role of planning in economic development, Soviet development plans, breakup of the USSRChina: Integrated rural development in China, rural industrialization and modernization of agriculture, the process of industrialization, equity and development of social income, the mobilization of the labour force and utilization of surplus manpower, township and village enterprises (TVE).Cuba: Political and economic background, agriculture, central planning and industrial enterprise, work force and remuneration, the allocation of consumer goods services, economic strategy.3. Case Studies of NICs: South Korea: Agrarian reform, role of state in industrializationMalaysia: Role of state in redistribution of income and wealth

Recommended Books: Aston, T S (1968): The Industrial Revolution 1760-1830, Cambridge University Press, UK, Second editionCrafts, F R (1986): British Economic Growth During the Industrial Revolution, Cambridge University Press, UKDobb, M: Soviet Economic Development Since 1917Elbaum B and W Lazoni (1987): The Decline of the British Economy, Cambridge University Press, UKFeinstein, C H and S Pollard (1988): Studies in Capital Formation in the United Kingdom 1750-1920 Cambridge University Press, UKAllen, G C: A Short Economic History of JapanMacpherson, W J (1987): The Economic Development of Japan 1968-1941, MacmillanMaddison, A (1982): Phases of Capitalist Development, Cambridge University Press, UK


Prybla: Political Economy of Communist ChinaFaulkner, W: American Economic HistoryWheelright and McFarian: The Chinese Road to Socialism.

ECO 331 INTERNATIONAL ECONOMICS4 Hours/week, 4 credits

1. Introduction: Causes of international trade, the no trade model, perspective on the theory of international trade, the importance of international trade, the sectoral structure of trade, trade history, gains from trade, classical and modern analysis, 2. Pure Theory of International Trade: The Ricardian Theory of comparative advantage, Haberler’s theory of opportunity cost, The Heckscher- Ohlin model, the specific factor model, the Leontief paradox.3. International Equilibrium: General Equilibrium in open (trading) and closed (autarky) economy. A neoclassical demonstration of comparative advantage, derivation of offers curves, terms of trade, various concepts of the terms and trade, the Prebisch-Singer thesis, terms of trade and welfare, imperfect competition, increasing returns to scale,4. Trade policy: Trade policy effects with perfectly competitive markets, tariffs, welfare loss from tariffs, tariffs, taxes and distortions, the optimum tariff and retaliation, retaliation and trade wars, quotas, VER’s, subsidies, other counter veiling duty. 5. Trade Co-operation and Agreement: Preferential trade areas, trade creation and trade diversion, free trade areas, customs union, common market and economics union, static and dynamic effects of economic integration, WTO principle agreements, how the WTO works?6. Balance of Payments: Balance of payments accounting and accounts, autonomous and accommodating balance of payments equilibrium, surplus and deficit open economy identities. 7. The Foreign Exchange Market: Exchange rate definitions, basis of foreign exchange market, spot and forward exchange rates, equilibrium and stability in foreign exchange market8. Currency Derivatives: futures, options and swaps, the growth of derivative markets, currency futures and currency forwards, the pricing of currency options, intrinsic value and time value, the swaps markets9. The International Monetary System: the Bretton Woods system, the IMF and its mechanism, the Euro currency, and Euro bond markets, the dazzling dollar, 1980-85, currency turmoil and crises post- 1990, East Asian and US financial crisis.

Recommended Books: Carbaugh R J (2008): International Economics, Thomson South Western Eleventh editionChacholiades, M (1990): International Economics, McGraw-Hill Publishing Company, USACopeland, L S (2005): Exchange Rates and International Finance, Pearson Education, Fourth editionKrugman, P R and M Obstfeld (2008): International Economics: Theory and Practice, Pearson Education, Eighth editionPilbeam, Keith (1998): International Finance, Palgrave New York, USA, Second editionSodersten, Bö and G Reed (1994): International Economics, the Macmillan Press Ltd, Third Edition

ECO 337 PUBLIC FINANCE 4 Hours/week, 4 credits

1. Introduction: role of government in a mixed economy, positive vs. normative view in economics, need for public finance and private finance, central and local government finance, public sector in national income accounting.2. Theory of public goods: concepts and provision of public goods pure and impure public goods, private provision of public goods, publicly provided private goods, optimal provision of a publicly goods-partial equilibrium and general equilibrium analysis, Wicksell and Lindahl’s model, mixed goods, externalities-private solution to externalities; merit goods.3. Government expenditure: structure and growth, causes of public expenditure growth, incidence and effects of public expenditure-efficiency and distribution, causes and effects of some indirect government program such as education, health care, defense social insurance etc. negative income tax, government expenditure in Bangladesh.4. Different Kinds and Choice of Taxes: proportional, progressive and regressive taxation, direct and indirect tax; income tax, excise tax, corporation income tax and expenditure tax, excess burden of taxation.5. Incidence and Effects of Taxation: concepts of incidence, partial equilibrium analysis of incidence, general equilibrium analysis of incidence, effects of taxation on consumption & savings, on work effort etc 6. Government Budgeting: a) Budget: concepts and implications of balanced and unbalanced budget, budget and development plans, analysis of the recent Bangladesh budget b) Government Revenue: revenue sources of government, objectives of taxation, characteristics of a good taxation system, principle of taxation-benefit principle, ability to pay principle c) Taxation in Bangladesh: Structure and growth, incidence and effects, tax burden & VAT,7. Public debt: reasons for public debt, burden of public debt, role of public debt, shifting of burden to future generations, repayment, Recardian equivalence theorem.8. Public Choice

Recommended Books:


Bhatia, H L (2002): Public Finance, Vikas Publishing House Ltd, Twenty Third editionBrowning, E K and J M Browning (1994): Public Finance and Price System, Pearson Education, Fourth editionHerber, B P (1999): Modern Public Finance, A.I.T.B.S. Publishers and Distributors, Fifth editionHyman, D N (2005): Public Finance, South-Western, Eighth editionMankar, V G and L S Sarma (2001): Public Finance Theory and Practice, Himalaya Publishing House, Fifth editionMusgrave, R A and P B Musgrave (1989): Public finance in Theory and Practice, McGraw-Hill, USA, Fifth editionMusgrave, R A (1959): The Theory of Public Finance – A Study in Public Economy, McGraw-Hill Book Company, Inc, NY, USAStiglitz, J E (1988): Economics of the Public Sector, W. W Norton and Company, USA, Second edition

ECO 353 CONTEMPORARY ISSUES OF BANGLADESH ECONOMY4 Hours/week, 4 credits

1. Structure of Bangladesh Economy: Sectoral composition of output and employment.2. Agriculture: Growth experience; Green revolution and its impact on production & employment, land ownership & tenancy structure; Agriculture price & subsidy policy.3. Industry: Growth experience; performance of the public enterprises; Denationalization policy, role of small & cottage industry.4. Infrastructure: Physical and socioeconomic.5. Problems of poverty, inequality and unemployment.6. Human resources, women in development and impact of migration.7. External sector: foreign trade, terms of trade; devaluation.8. Resources for development: domestic and external resources.9. Environmental issues: natural hazards, population10. Experience of Structural adjustment policy in Bangladesh.11. Micro credit programme: Grameen Bank, BRAC, and other NGOs, 12. Budget constraints, development and defense expenditures

Recommended Books: BEA: Bangladesh Journal of Political Economy, Bangladesh Economic Association (BEA), various issuesBIDS: Bangladesh Development Studies, Bangladesh Institute of Development Studies (BIDS), various issuesGOB (1991): Report of the Task Forces on Bangladesh Economy, Government of the People's Republic of BangladeshHossain, Mosharraf (1992): Agriculture in Bangladesh, Problems, Policies & Prospects, University Press Limited, DhakaHossain, Mahbub (1989): Green Revolution in Bangladesh University Press Limited, Dhaka Jansen E G (1987): Rural Bangladesh: Competition for Scarce Resources, Oxford University PressKhan, A R (1973): The Economy of Bangladesh, MacmillanKhan, A R and M Hossain (1989): The Strategy of Development in Bangladesh, MacmillanRashid, Selim (1995): Bangladesh Economy, University Press Limited, DhakaSobhan, Rehman (1991): Structural Adjustment Policies in the Third World, University Press Limited, Dhaka

ECO 357 HISTORY OF ECONOMIC THOUGHT4 Hours/week, 4 credits

1. Pre-classical Economic Thought: This section will briefly cover Ancient-oriental and occidental and medieval economic thought such as those of the Koutilya, Greek philosophers, Mercantilists and the Physiocrats.2. The Classical School: Adam Smith - division of labour, theory of wages, profit and interest, principles of taxation, David Ricardo - theory of rent, taxation and principle of comparative advantage, Malthus - population doctrine and its criticism, concept of utilitarianism, economic ideas of John Stuart Mill.3. Socialist Alternatives to Classical Theory: Historical school of Hegel and Marx's scientific socialism, theory of surplus value, falling rate of profit, destruction of capitalism, communist manifesto, Schumpeter and capitalism, developments in Soviet economy, Chinese communism and the ideas of the Fabian society4. The Marginal Revolution and Neoclassical Foundations: the marginal concept and notions of optimization as found in Jevons, Menger, Wicksteed, Neo-classical foundations of microeconomics laid down by Marshal. The general equilibrium theories of Walrus, Pareto and Leontief; Veblen and the development of institutional economics5. Modern Paradigms: Keynes, General Theory, the Keynesian-Monetarist debate and resurgence of neoclassical ideas including the supply-side economics, New Classical and New Keynesian School

Recommended Books Spiegel, Henry William: The Growth of Economic Thought, Duke University Press, Durban, North Carolina, latest edition.Roll, Eric: A History of Economic Thought, Prentice-Hall, Third edition.Ekelund, R B and R F Hebert: A History of Economic Theory and Method, McGraw-Hill, latest edition.Koutilya (1992): Arthashastra, Edited by L N Rangaranjan, Penguin Publishing, New Delhi, India, Sixth editionFreedman, Robert (ed): Marx on Economics, Pelican Books


Giddens, Anthony (1971): Capitalism and Modern Social Theory-An Analysis of the Writings of Karl Marx, Durkheim and Max Weber; Cambridge University Press, UKHausman D M: The Philosophy of Economics: an Anthology, Second Edition

ECO 375 ADVANCED TOPICS IN MATHEMATICAL ECONOMICS I4 Hours/week, 4 credits

1. Differential and Difference Equation: (a) First order differential and difference equations with (i) constant co-efficient and constant term, (ii) variable co-efficient and variable term; exact differential equation; non-linear difference and differential equation of the first order and first degree, economic applications,(b) Second order differential and difference equations with constant co-efficient and constant term; economic applications.2. Linear and Non-linear Programming: Liner programming: Primal and dual, interpretation of dual, solution of primal and dual programs, activity analysis; Non-linear Programming and Kuhn-Tucker conditions3. Input-Output Analysis: Static and Dynamic models, Samuelson’s substitution theorem4. Theory of Games: two person constant sum games, two person non-constant sum games, pure strategy and mixed strategy, cooperative vs. non-cooperative games, dominant strategy, Nash equilibrium, Prisoner's dilemma, repeated games, sequential game, threat, commitment and credibility; entry deterrence.

Recommended Books: Chiang, A C and Wainwrite K (2005): Fundamental Methods of Mathematical Economics, McGraw-Hill, USA, Fourth editionSimon, C P and L Blume (2006): Mathematics for Economists, W.W. Norton & Company and Viva Books limitedBaumol, W J (1977): Economic Theory and Operations Analysis, Prentice-Hall, USA, Fourth editionVarian, H R (2005): Intermediate Microeconomics – A Modern Approach, W.W. Norton and Company, Seventh editionPindyck, R S and D L Rubinfeld (2005): Microeconomics, Prentice-Hall India, Sixth editionBinmore, K (1992): Fun and Games - A Text on Game Theory, Lexington: D.C. Heath.Gibbson, R (1992): Game Theory for Applied Economists, Princeton University Press Owen, Guillermo (2001): Game Theory, Elsevier, Third edition

ECO 384 RESEARCH METHODOLOGY3 Hours/week, 3 credits

1. Introduction to Research Methodology: Deductive method: abstraction, assumption, logic and hypotheses, inductive method: observation, description, interpretation, formulation of hypothesis – further evidence, generalization, relative strengths and weaknesses of these methods.2. Empirical Research: Problems of empirical research in economics – non-experimental situation, problem of reliability – initial conditions and accumulation of empirical knowledge: a) Objective of empirical research: description of economic reality through indices and measures, observation and experience. b) Explanation of economic phenomena: estimation of parameters, testing of specific or alternative hypothesis supplied by economic theory of observation.3. Research Design: Features of a good research design, important concepts relating to research design, different research design, and basic principles of experimental design.4. Sampling Design: Steps in sampling design, characteristics of a good sample design, different types of sample designs, sample selection, sample size, random and non-random sampling, stratified sampling, complex random sampling designs.5. Census and Survey: Census and sampling survey, legitimate areas of survey research, survey design and planning, selection of research staff, preliminary investigation, choice of stratum sampling fraction – proportional and optimal allocation.6. Methods of Data Collection: Collection of primary data, collection of data through questionnaire, some other methods of data collection, Collection of secondary data, selection of appropriate method for data collection, problems of non-response-reducing non-response, problems of response error - coping with response error, particular problems of data collection in LDC’s7. Processing and Analysis of Data: Processing operations: editing, coding, removal of inconsistencies, treatment of non-responses, statistical techniques – tabular and graphical analysis, measures of central tendency, correlation studies, hypothesis testing, and regression analysis. 8. Interpretation and Report writing: Techniques of interpretation, precaution in interpretation, significance of report writing, different steps in report writing, mechanics of writing research report, presentation of research results - findings and conclusions.

Recommended Books: Kothari C R (1994): Research Methodology – Methods and Techniques, Wiley Eastern Limited, second edition.Pauline V Young (1992): Scientific Social Surveys and Research, fourth edition.Goode W J and P K Halt: Methods in Social Research.Moser C A and G Dalton, Survey Methods in Social Investigation

ECO 385 FIELD WORK FOR RESEARCH METHODOLOGY2 Hours/week, 1 credit


The detailed fieldwork and research assignment will be given by the course teacher.

ECO 386 ECONOMICS OF PLANNING AND PROJECT ANALYSIS4 Hours/week, 4 credits

1. The choice of techniques2. Investment criteria for project selection.3. Input-output analysis: application in planning4. Linear programming: application in planning.5. Planning to project: definition of project, national economic objective, project choice and investment programme, sectoral planning, role of central planning organization, aspects of project preparation and evaluation, project cycle.6. Valuation of benefits and costs: market failure, social objectives, Pareto Optimality, commercial and social profitability, shadow pricing, role of national planning organization, national parameters, different valuation systems, income distribution. UNIDO & Little-Mirrlees Approach7. Discounting cash flow: Net present worth and internal rate of return, uses of interrelationship among B-C ratio.8. Macroeconomic planning since 1971: a) Fiscal policy, b) Monetary policy and c) Trade and industrial policy

ECO 387 ECONOMICS OF PLANNING AND PROJECT ANALYSIS (LAB)2 Hours/week, 1 credits

Fieldwork and research assignment for project analysis: The course teacher will determine the detailed fieldwork and assignment.

Recommended Books: Basu, Kaushhik (2003): Analytical Development Economics – The Less Developed Economy Revisited, MIT press USAChandra, Prasanna (1995): Projects Planning, Analysis, Selection, Implementation and Review, Tata-McGraw-Hill, Fourth editionDasgupta, P, Amartya Sen and Stephen Marglin (1972): Guidelines for Project Evaluation, United Nations, New YorkMeier G M and J E Stiglitz (2001): Frontiers in Development Economics – The Future Perspective, Oxford University Press, UKMeier G M (1989): Leading Issues in Economic Development, Oxford University Press, UK Fifth EditionMisra S K and V K Puri (2005): Economics of Development and Planning, Seventh EditionThirlwall A P (2006): Growth and Development – With Special Reference to Developing Countries, Palgrave Macmillan, Eighth EditionTodaro M P and S C Smith (2005): Economics of Development in the Third World, Longman, Ninth EditionUNIDO Guidelines: Project AnalysisLittle, I M and J A Mirless (1974): Project Appraisal and Planning for the Developing Countries, London, Heiremann Educational Books

ECO 413 MICROECONOMICS4 Hours/week, 4 credits

1. Utility Functions and Decision Making: Choice under uncertainty; utility functions and probabilities; expected utility functions; risk aversion and indifference curves; measures of risk; risk spreading; stock market; intertemporal choice: 2-period and n-period utility maximization, time preference, Fischer separation theorem; optimal consumption over time; optimal investment over time; capital market equilibrium.2. General Equilibrium: a) Exchange Economy – Pareto efficient allocations; Walras' Law; the existence of equilibrium; equilibrium and efficiency; implication of the first welfare theorem; implications of the second welfare theorem. b) Production – Equilibrium in both consumption and production; production and the first welfare theorem; production and second welfare theorem; production possibilities set; Pareto efficiency; profit maximization and consumption.3. Welfare Economics: Pareto efficient resource allocation; welfare function and the Pareto criterion; Arrow's impossibility theorem; social welfare function; welfare maximization; individual social welfare functions; fair allocations; envy and equity; the causes of market failure; instances of market failure; the theory of second best; government action and government failure.4. Asymmetric Information and Incomplete Markets: Asymmetric information in insurance markets – adverse selection and moral hazards; principal-agent theory – hidden information and hidden action; signaling; incomplete insurance markets; incomplete stock markets.

Recommended Book: Required Textbook(s): Jehle G A and P J Reny (2006): Advanced Microeconomic Theory, Pearson Education, Second editionGravelle H and R Rees (2004) Microeconomics, Trans - Atlantic Publication, USA Varian H R (1992): Microeconomic Analysis, W.W Norton and Company, USA, Third editionVarian, H R (2005) Intermediate Microeconomics – A Modern Approach, W.W. Norton and Company Inc, Seventh Edition

Book(s) on Reserve:


Baumol W J (1977): Economic Theory and Operations Analysis, Prentice Hall, Fourth editionGreen, H A J (1976): Consumer Theory, Macmillan, London, Revised editionHenderson J M and R E Quandt (1980): Microeconomic Theory: A mathematical Approach, McGraw-Hill, USA Third editionSilberberg E (1990): The Structure of Economics: A Mathematical Analysis, McGraw-Hill, USA Third edition

ECO 423 MACROECONOMICS4 Hours/week, 4 credits

1. Review of National Income Model: national income accounting in Bangladesh, the micro foundations of aggregate demand, consumption demand, investment demand, neo-classical view, the demand for money, the supply of money,2. Open Economy: a) Balance of payments: The principles of payments accounting, autonomous and accommodating balance, balance of payments equilibrium, accounting balances. b) International adjustment and interdependence, policy conflicts and adjustment under fixed exchange rate, the monetary approach to the balance of payments, flexible exchange rates, price changes and balance of payments equilibrium, the effect of change in exchange rates, interest differential and exchange rate expectation, exchange rate fluctuations and interdependence, purchasing- power- parity (PPP) theory.3. The Dynamics of Inflation and Unemployment: a) inflation and expectations, expectation-augmented Philips curve, the rate of expected inflation, dynamic adjustment of output and inflation, adjustment to a monetary and fiscal expansions, interest rate and inflation - the fisher’s equation, money growth and the inflation tax, hyperinflation. b) Unemployment terminologies, job creation, job destruction, participation rate, models of job searching and job separations, natural rate of unemployment, unemployment insurance, minimum wage, 4. Rational Expectations Model: Expectations in economics; Concepts of rational expectations, rational expectations and demand policy; policy ineffectiveness propositions; monetarist model with rational expectations; rational macro-models; criticism; rational expectations in practice, rational expectations and neoclassical view; neoclassical real business cycle theory. 5. a) Budget Deficits and Public Debt: the mechanics of financing the budget, size and determinants of deficits, debt-financed deficits, tax rate changes and budget deficits, fiscal stimulus and deficits. b) Deficits, Money Growth and the Inflation Tax: money finance of the budget deficit, introduction of wealth effect, bond finance of the deficits and crowding out, the burden of debt, the size of investment controversy,6. Advanced Topics (optional): an overview of the new macroeconomics, the microeconomics of imperfect aggregate supply curve, the random walk of GDP – does aggregate demand matter or is it all aggregate supply? Real business cycle theory, a new Keynesian model of sticky nominal prices,

Recommended Books: Branson, W H (1989): Macroeconomic Theory and Policy, Second EditionDornbusch, Rudiger et al (2004): Macroeconomics, McGraw-Hill International, Ninth EditionRomer, David (2001) Advanced Macroeconomics, McGraw-Hill, USA, Second editionSargent T J (1987a): Macroeconomic Theory, Boston Academic Press, USASargent T J (1987b): Dynamic Macroeconomic Theory, Cambridge MA, Harvard University Press, USA

ECO 425 MONETARY ECONOMICS4 Hours/week, 4 credits

1. Money, Prices and Interest: the classical system, the Keynesian system, the monetarist counter-revolution2. Output, Inflation and Unemployment: monetarists’ and Keynesian’s views3. Indicators of Monetary Policy: Monitoring monetary policy, the meaning of monetary indicators, monetary policy targets.4. Monetary and Fiscal Policy in a Cyclical Context:5. Monetary and Fiscal Policy in a Growth Context: Tobin’s portfolio balance model of money, money as a consumer good: Levihari – Patinkin and Johnson, money as a producer good 6. Money, Price Expectations and Interest Rates:

Recommended Books: Beare, J B: Macroeconomics: Cycles, Growth and Policy in a Monetary EconomyBranson, W H (1989): Macroeconomic Theory and Policy, Second EditionBlanchard, O J and Stanley Fischer (1989) Lectures in Macroeconomics, Dornbusch, Rudiger et al (2004): Macroeconomics, McGraw-Hill International, Ninth EditionGibson, W E and G G Kaufman: Monetary economicsSargent T J (1987b): Dynamic Macroeconomic Theory, Cambridge MA, Harvard University Press, USAWalsh C E (2003): Monetary Theory and Policy, Cambridge MA, MIT Press, Second edition


ECO 456 POLITICAL ECONOMY OF UNDERDEVELOPMENT4 Hours/week, 4 credits

1. Political Economy: What is Political Economy? The subject matter of political economy, from Political Economy to Economics—change in perspective—revival of the interest in political economy – recent and orthodox approaches to the problems of underdevelopment2. Mode of Production and Production Relations: Different modes of productions - Slavery, Feudalism, Capitalism and Socialism, Asiatic mode of production, pre-capitalist mode of production and its continuous distribution and renewal, the structure of colonial capitalism and its impeding effects on peripheral capitalist development, peasant economy as distinct from a capitalist economy - power, authority and stratification in a peasant economy,3.The Marxist Critique of the Capitalist Process of Development: Theory of surplus value and the capitalist exploitation of labour, the law of falling tendency of the rate of profit, reproduction models, the Marxist prognosis of the capitalist development, dialectic materialism, Marx and Engels on socialist transformation of capitalist economy, the socialist mode of production and distribution.4. Politics and Society in the Third World: Marxist theory of imperialism: Marx, Rosa Luxemburgh, Hilferding, Bukharin, Lenin, and G. Kay,5. World System Analysis: Debate between development school and underdevelopment school: Baran; Sweezy Frank; Wallerstien; Emmanuel, Samir Amin; Hamza Alavi6. Political Economy of Poverty and Hunger: poverty and inequality—pauperization, marginalization and polarization—technology and poverty—politics and reproduction of underdevelopment—culture of poverty—mass poverty and international response, Introduction to the political economy of hunger - the food problems of Bangladesh.

Recommended Books: Brewer, Anthony: Neo- Marxist Theories of ImperialismKozlov: Political Economy of SocialismLenin, V I: Imperialism – the Highest Stage of CapitalismMarx, Karl: Das Capital Volume II and IIIMarx, Karl and F Engel: Pre-capitalist Economic FormationsStubbs, Richard and Geoffrey Underhill: Political Economy and the Changing Global OrderSweezy, P: Theory of Capitalism

ECO 461 INTRODUCTION TO ECONOMETRICS4 Hours/week, 4 credits

1. Nature and Scope: Meaning of econometrics, economic and econometric modeling, aims and methodology of econometric analysis. 2. Simple Linear Regression Model: Nature of regression analysis, interpretation of regression model, significance of stochastic disturbance term, the method of Ordinary Least Squares (OLS), derivation of OLS estimators, normality assumption for ui, and its significance, properties of OLS estimators under normality assumption, co-efficient of determination: a measure of goodness of fit. 3. Inference and Prediction: point estimation vs. interval estimation, confidence intervals, hypothesis testing: the confidence interval approach, test of significance approach, the problem of prediction – mean prediction, individual predictions.4. Multiple Linear Regression Model: Derivation of OLS estimators and their variances, R² and adjusted R², Hypothesis testing – F test, t-test, analysis of variance (ANOVA),5. Multicollinearity: The nature of multicollinearity, estimation in the presence of multicollinearity, detection of multicollinearity and its remedial measures, 6. Heteroscedasticity: Nature of heteroscadasticity, detection and testing for heteroscedasticity: Goldfeld-Quandt test, Breusch-Pagan-Godfrey (BPG) test, White’s general test, estimation with heteroscedastic disturbances, solution to heteroscedasticity.7. Autocorrelation: Sources and consequences of autocorrelation, tests for autocorrelated disturbances: Durbin - Watson d test, Breusch-Godfrey (BG) test, solution to autocorrelation. 8. Model Selection and Specification: Meaning, types and consequences of model specification errors, test of specification error - Ramsey’s RESET test, Durbin-Watson d Test, model selection criteria – AIC, SIC.

ECO 462 INTRODUCTION TO ECONOMETRICS (LAB)2 Hours/week, 1 credits

Field Work and Research Assignment: The detailed fieldwork and assignment will be given by the course teacher.

Recommended Books: Gujarati D N (1999): Essentials of Econometrics, second edition. McGraw-Hill New York, USA.Gujarati D N (2003): Basic Econometrics, fourth edition, McGraw-Hill New York, USA.Johnston J and John DiNardo (1997): Econometric Methods, fourth edition, .McGraw Hill, New York, USA Kmenta J (1986): Elements of Econometrics, second edition, Macmillan, New York, USAMaddala,G S (2005): Introduction to Econometrics, John Wiley and Sons, third edition. New York, USAMaddala,G S (1977): Econometrics, McGraw-Hill, New York, USA.


ECO 463 ECONOMETRICS4 Hours/week, 4 credits

1. Review of Matrix algebra and Linear Regression Model.2. Classical Multiple Linear Regression Model: Basic assumptions, least square coefficient vector, partitioned regression, goodness of fit and analysis of variance, properties of OLS estimators, data problems – multicollinearity and missing observations.3. Inference and Prediction: Testing linear hypothesis about β, restricted and unrestricted regressions, prediction – point prediction vs. interval prediction, test of model stability: Hensen’s test, recursive residual test, QCUMSUM tests, Chow forecast test. 4. Non-spherical Disturbances: Tests for heteroscedastic and autocorrelated disturbances, estimation under heteroscedasticity and autocorrelation, Generalized Least Squares (GLS) and Weighted Least Squares (WLS), efficient estimation by GLS and FGLS estimators.5. Simultaneous Equation Models: Exogenous and endogenous variables, identification problem - necessary and sufficient conditions for identification, methods of estimation: 2SLS and Instrumental variable approach, exogeneity and causality: Granger causality test. 6. Distributed lag Models: Simple distributed lag models, finite distributed lag model - Almon approach, infinite lag model - Koyck approach, Autoregressive Distributed Lag (ARDL) models, static and dynamic equilibrium. 7. Introduction to Time Series and Panel Data Analysis: Univariate time series modeling – AR, MA, ARMA and ARIMA processes, unit root tests, cointegration and error correction models, multivariate model – Vector Autoregressions (VAR), sources and types of panel data – Fixed Effect vs. Random Effect model.8. Dummy variable: Nature, regression on both qualitative and quantitative variables simultaneously, dummy variable for changes in the intercept and slope coefficients, dummy variable for cross equation constraints, testing for structural stability of regression model- Chow test, dummy dependant variable, the Logit and Probit model, truncated variables – Tobit model.

ECO 464 ECONOMETRICS (LAB)2 Hours/week, 1 credit

Field Work and Research Assignment: The detailed field work and assignment will be given by the course teacher.

Recommended Books: Greene W H (2003): Econometric Analysis, Fifth edition, Prentice Hall Englewood Cliffs, New Jersey, USA Gujarati D N (2003): Basic Econometrics, Fourth edition, McGraw-Hill New York, USAHamilton J D (1994): Time Series Analysis, Princeton University Press, Princeton, New Jersey, USAHayashi Fumio (2000): Econometrics, Princeton University Press, Princeton, New Jersey, USA Johnston J and John DiNardo (1997): Econometric Methods, Fourth edition, .McGraw Hill, New York, USA Kmenta J (1986): Elements of Econometrics, Second edition, Macmillan, New York, USAMaddala,G S (2005): Introduction to Econometrics, John Wiley and Sons, third edition. New York, USAMaddala,G S (1977): Econometrics, McGraw-Hill, New York, USA.Pindyck, R S and D L Rubinfeld (1990): Econometric Models and Economic Forecasts, McGraw-Hill, NY, USA, Fourth edition

ECO 476 ECONOMICS OF GROWTH AND TECHNOLOGICAL CHANGE4 Hours/week, 4 credits

1. Introduction to Growth Models: Harrod-Domar legacy, neoclassical growth models – growth with exogenous technological change, Solow and Swan growth models, balanced growth path, 2. Endogenous Growth Models: Ando Modigliani, Pessinetti; Kaldor model, mechanics of endogenous growth, golden rule, convergence, modified golden rule,3. New Growth Theory: Research and Development (R&D) models, the nature so knowledge and determinants of allocation of resources to R&D, the dynamics of knowledge accumulation, Solow model with human capital,4. Technical Change and Technological Change: Neutralities, invention and innovation5. Diffusion: Definition, time path of diffusion, phases of diffusion, models of diffusion.6. Impact of Technological Change: (i) Impact on output and employment: microeconomic approach, (ii) Impact on output and employment: macroeconomic approach, (iii) Technological change and investment, (iv) Technological change and the distribution of income, social savings and rates of return to technological change, (v) Technological change and the open economy

Recommended Books: Aghion, Philippe and Peter Howitt (1998): Endogenous Growth Theory, Cambridge, MA, MIT press Barro, R and Sala-i-Martin (1998): Economic Growth, Cambridge, MA, MIT pressBranson, W H (1989): Macroeconomic Theory and Policy, Second editionJones, C I (1998): An Introduction to Modern Theories of Growth, W.W Norton and Company, New YorkRomer P M (1990): "Endogenous Technological Change", Journal of Political Economy, 29 (October Part 2) S71-S102Romer, David (2001): Advanced Macroeconomics, McGraw-Hill International, Second editionSolow, R M (1956): "A Contribution to the Theory of Growth", Quarterly Journal of Economics, 70 (Feb): 65-94, reprinted in Stiglitz and Uzawa (1969)


Stiglitz, J E and Hirofumi Uzawa eds. (1969): Readings in the Modern Theory of Economic Growth, Cambridge, MA, MIT press,Stoneman, P (1983): The Economic Analysis of Technological Change, Oxford University Press,

ECO 477 ADVANCED TOPICS IN MATHEMATICAL ECONOMICS II4 Hours/week, 4 credits

1. Introduction to Dynamic Optimization: Salient features of dynamic optimization problems, variable endpoints and transversality conditions, alternative approaches to dynamic optimization.2. The Calculus of Variations: The Euler equation, versions of Euler equation in special cases, economic application, transversality conditions (general and specialized) for variable end point problems, concavity/convexity – sufficient conditions, Legendre necessary condition, infinite planning horizon, optimal investment path, optimal saving behaviour, phase diagram analysis,3. Optimal Control Theory: The nature of optimal control, the maximum principle, alternative terminal conditions, economic interpretations of maximum principle, optimum control with infinite time horizon, neoclassical growth model, current value Hamiltonian, phase diagram.4. Real Analysis: Real numbers, continuum property, natural numbers, convergent sequence, differentiation, mean value theorem, monotone functions, integration

Recommended Books: A C Chiang (1992): Elements of Dynamic Optimization, McGraw-Hill, USA / Waveland Press Inc, Prospect Heights IIIChiang A C and K Wainwrite (2005): Fundamental Methods of Mathematical Economics, McGraw-Hill, USA Fourth editionDixit A K (1990): Optimization in Economic Theory, Oxford University press, UK, Second edition,Lambert P J (1985): Advanced Mathematics for Economists: Static and Dynamic Optimization, Blackwell Publishers, NY, USASimon C P and L Blume (2006): Mathematics for Economists, Viva Books Limited, IndiaKoo, D (1977): Elements of Optimization - With Applications in Economics and Business, Springer-Verlag Inc, New York USA,

ECO 481 RESEARCH PROJECT: PART 1 (PROPOSAL DEVELOMENT AND FIELD WORK)4 Hours/week, 2 credits

Individual student is supposed to prepare an appropriate proposal on a topic related to economics under the supervision of a teacher as assigned.

ECO 482 RESEARCH PROJECT: PART 2 (ANALYTICAL WORK AND DEFENCE)4Hours/week, 2credits

Individual student is required to complete and present his/her project paper prepared based upon the proposal submitted in the earlier semester under the course ECO 481 in department/faculty seminar. All students have to face an oral examination by teachers of the department.

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