BA Honours Economics.pdf - Maitreyi College

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NIVERSITY OF DELHI ----I

SCHEME OF EXAMINATION

AND

COIIRSES OF READING

FOR

II 1\. (HONS.) EXAMINATION IN ECONOMICS

Part r Examination 1991

Part II Examination 1992

Part IT! Examination · 1993

~a-o() hi applicable {or students seeking admissioD to It·· (HnD1) Economics Cours. in the academic )ur 1990·91

UNIVERSITY OF DE~HI

B.A. HONOURS IN ECOI\,jOMICS

SCHEME OF EXAMINATIa-NS

MIIX DUflltion

1m I Exami".tion 1991 Marks Houfs

P8pel . I-Micro Economics I

PIPer . II-Economic HistOry of India (1857-1947)

50

50

Piper . III-Statistical Methods for Eco"omics

Piper : IV-National Inc"me AccourJtin~ 50

"", " Ex.~(n~'on 1992

50

Paper: 'v-Micro Economics II 50

Piper: VI-Maoro Ecollomics 50

P.per : VII-Money and the Fillancial, SYl\tem ' 50

Paper : VIII-Math"matical Methods for E~onomics 50

",111 ExaminatiM : /993

P.per: IX-f'ublic Finance 50

Paper: X-Comparative Economic Developmellt 50

Paper : XI-Economic Systems 100

Paper : XII-Development PPoblems and ""Olicy 1 00

Paper: XIII-Indian Economy since IndepetJdencel00

NOTES:

2

2

2

2

2

2 2

2

2

2

3

3

3

I In many papers (such as VII , IX. XII. XIII above) , the read. lOgs suggested may be suitably revise\:l from time to time in the light of the availiability of new teading material;

2 Wherever peri"",c publications, such as the Economic Survey, Report of Finance CommiSSio~ , have been recom~ended .. readings. the latest ,ssues available at the beginning of 8ft

.cedemic lear will serve as the reading\ in Question .

PAPER I

1.

2.

3.

4.

2

DETAILED COURSES OF READING

50 Mar . Micro-Economics-r . . n ' Introduction :Basic problems of an economy, constr.uc:,on a

. h . . noliOl's of eqUlllblium an verification of economIC t eOlles, d . dis_equilibrium, market demand, market supply an Plitt

determination

TheolY of Consumel's Behavioul : Marshallian analysis.; i~ difference curve approach ; revealed preference Iheory . 1

law of demand ; elasticity of demand.

f P duction . FactOfS of production; productiOi Theory 0 (0 . ... . t urves; supp~ function ; production pOSSIbilIty curV8$, COS c

function ; elastIcity of supply.

Theory of Film and the Malkat StlUclU18

Plofit maximisatIon object1V& of the firm

...

(a) perfeet competition : equilibrium of the firm; suppl',! "": and the equilibrium of the industry; market adjustment proc

and the stabililY of equilibrium.

(b) Imperfect competition : equilibrium u~der m~opol price discrimination ; monopolistic compotltlon ; ohgOPO\!

Courno!"s solution, kinked demand curve.

"Treatment of the subject is intended to be non-mathematic:l

•

•

3

1\: Economic H'It/olY of Indill 1857-1947 50 Meru

."".1 history of the period 1857 -1 947. Institutional developments: the relationship between the British Government, lhe Government of India and the provinces.

The -><>cial and economic structure of India in 1857.

Meln trends in the economy, 1857 -1947 : Population, labour force, national income, for"ign trade and payment; growth of the modern sector.

Agrerian Relations. Trends in output and productivity of IfIriculture and per <:apita food availability . Government policy towards agriculture, irrigation, famines and rural credit.

The cha~ing structure of modern industry: role of domestic end foreign enterprise and government \>olicy. Toe em8lgence of a modern labour force and the growth of trede unions.

The colonial impa:t and domestic responses: an assessment. Fiscal and trade policies : the debate bE!tween govemment and its cr!tics.

Regarding topic 3 a g~neral familiarity with broad trands is expected ; the student will not be expected to memOtize figures.

Regarding topic 5, a detailed .tudy of individual industries is not expeeted ,

BASIC READINGS :

1 . R.G. Lipsey, An edition.

, ..... _"as· Introduction to positive Economics, I.

, Sumlt Sarkar : Modern India, Chs. 1,2 (Part 1) , 3,4,5,6,7.

2.

3 .

P.A. Samuelson, Economies, latest edition .

. d D C Hague A Textbook of EconomiC Th.~ W. StoOler an . . , 4th edition, 1972, Chs 4,5,8,9, (Sees. 1 ·9)

OPTIONAL READiNGS : . W.J. Baumol, EconomiC Theory and OperatIOn Anal

4. 4th edition, 1978, Chs 11 , 15, 16.

A Koutsoyi~nnis, Modern Miclo economics, 2nd edition, 5. 2 ·(Sees. I and II), 3 (See •. I, ll and IV) 4 (Sees. I. II, 111) .6

z

..

V.B. Singh (ed): Economic HislOIY of India, 1857-1956, Chapter by T.N. Madan

B R. Tomllson : '· India and Ine British Empira, 1880-1935", Indian Economic and Social History RavirN. Vol XII,1975

RaJDt Ray : Industtialization in India,1 914-1947, Chi. 1.2.4 and 5.

C.J. Dewey and ;'.N . Chaudhuri (ed .), Economy end Society EISeYs in Indian Economic and Social His/Oty, Ch. 10.

S.N. Agarwala : India's Populations, Ploblems. CIt. 4.

7.

8 .

9.

10.

11 .

G. Blyn :

4

Agricultural Trends in India :eQutput. AvaIlability Availability and Productivity, Ohs, Chs. 1, 9.

S. Sivasubramoniam : National Income of India. 1900·01 to 1946.47 (Ph.D. t hesis, mimeo), last chapter .

H. Venkatasubbiah : Forieign Trade of India, 1900·1946. Pt. II.

D.R. Gadgil : The Industrial Evolution of India in Recent Times. 186.0,1939, (1971) , Chs. II , V, VII. IX(2).

;:1 XV XX.

A.J . Youngson (ed.) : Economic Development in t~e Long

Run. paper by Macpherson.

PAPER III : Statistical Methods for ECGfJomics 50 Mar~

1 . Univariate frequency distributions : Measures of location; thE first four moments; measures of disp .... sion, skewness an(

2 .

3.

4.

5.

6.

kurtosis.

Bivariate frequency distributions : Correlation; regr.uor with one independent variable; method of least squares

simple analysis of attributes.

Elemefltary Probability Theory : Concepts of events and probability; addition and multiplication theorems : conditional probability and independeoce of events; concept of a random variable; probability distribution; mean and variance of a random variable : binomial and normal distributions ..

Sampling: Random sample; concept of sampling distributi~ ; distribution of the sample mean ; concept of tests of s'gn, · cance; tflSts of significance of the mean and th~ ,egressi~n coefficient (only noimal distribution to be used for the d,s· cussion of sampling distributio(. and tests of significance) .

Index Numbers : Concept of an index number ; Laspeyre's and Paasche's indexes, factor and time te.arsal tests ; chain base index ; problems in the construction of index numbers,

Time Series Analysis : Objectives; components of a time_ies; measurement of trend by moving averages; linear and expo· nential growth curves; measurement of seasonal variation .

5

w.a RIADINGS :

1

2

P.H. Karmel and M. Polasek., Applied Statistic3 tOl' Ecoootm,t1 (3rd Edn.), Ohs. 5,6,7 (secs. 7.1· 7.6) , 10 (sacs. 10.1, 10.2. 104.)10.5), II, 13.

F.E. Croxton, D.J . Cowden and S. Klein, Applied G.,.M'; Stari,tics (3rd Edn.), Chs. 1 1, 12 (Pl'. 230·243), 13 (pp.256·

267). 14, 17·19, 24 (pp. 537·551).

3. A.L Nagar and R.K . Das, Basic Statistices.

4 M.R . Spiegel. Statistics.

• AP II IV - National Income Accounting 50 MIII'ka

1. The Production Process in a modern economy-relationship between stocks and flows . Genaration of value added and factor incomes by a production un it and an economy·an elementary discussion of the input·output transactions matrix.

2

3

4.

II

1

•

Issues in the Concept of National Income : Concepts of Production ; d ist inction between intermediate and final products including treatment of government; concept and trealm..,t of depreciation .

Measurement of Nationall"come : Various ways of looking at National Income; production, income distribution and dis· position ; an outline of the three methods of measuring national income; estimation of national income in India; a g80Mal discussion of the methods and difficulties.

National Income Aggeregates : Measuring the intlfTeiationships.

Uses and Limitations of National Income : Problema ofcompari· sons over tim'., and among nations. National Income af an indicator of welfare ; personal and regional distribution; quality of life indices as an alternative.

National Income Accounts: Classification of transactors and transactions, use of the double entry principle in the account of a firm and in national income accounts. Elementary notions of sources snd uses of funds. Consolidated national accounts of India

N.tional Capital : Methods and problems of estimation .

Sa/ancB ot Payments Account : Structure and classification

6

READINGS

1. J .R. Hicks. The Sot:i.!Fr~m.wor/f: (1971). Chs. 2.3.8.10.11 12. 13 and 15 and Appendix Note C.

2. Russel Mathews, Accounting fa, Ecomists. CIls. 18. 19 (Sec. I).

3. Wilfred Beckerman. An Introduction to NMional Income Analysis, Chs. 1. 2. 3. 4. 8. 7

4. Paul Studenski.lncame of Nations. Part II (1961). Ohs. 11.12. (Sec. (1.3) 13.14.1S(Sec 1).16 (Sec. 1.3.4) 17 (Sec. n. 1S (Sec. 4c) .

5. William I. Abraham, National/ncomeand Economic Accounting (1969) Oh. 4)

6. C.S.O. National Accounts Stastlcs (latest Issue)

7. e.S.O. National Accounts Stlltistics : SourCes Methods 1980

8. Richard and GiovannasStone.Nationllllncomeand Expenditure (1972), Ch. 6

9. Reserve 8ank 01 India. India's BlIlsnce of Payments 1948-49 10 1961-2. Ch. 1 Pages 1-12

PAPER V - Micro Economic·II Marks 50

1. Fector Pricing .nd D,st,ibution : Theories 01 rent-Ricardian and mod .... n theories; determination of wages. int .... est and profit.

2. G.n.fBl Equilibrium : Concepts of partial and general equili brium; equilibrium 01 exchange; Edgeworth box diagram.

3. Lin""r Models: Elementary input·output analYSIS; '"troduction to linear pragramming and simple applications.

4. W.lfllreEconomics ; Pare to optimality; limitations olthe Pareto aiterion; compensation principle (Kaldor-Hlcks. Scitovsicy criteria); social welfare function ; compGtitive equilibrium and Pareto optimality ; market laiiures.

5. IntemlltiOlHlI Trllde ; Ricardian and Heckscher-Ohlin theories, gain from trede; International trade and factor prices.

BASIC READINGS;

1. R.G. Lipsey . An Introduction /0 Positive Economics. latest edition.

• • . 2. P.A. Samuelson . Economics latest edition.

7

W.J. 8eumoI. Eco,.omIr; rIN"'Y MId Operlltions Analy_. 4th IIdIIIan 1878 ON. 5 (Sees 1 ·3). 21 . 22. 2.4.

C.P. Kitidletwg«, lntematiOllsl EconomictJ. 1973 , Ohs 1 -4.

B. Soderston. Int.mationsl Ecooomics. 1971 , Part I.

A. Kou t90yiann is. Modern Microeconomics. 2nd edition , Chs. 20 (Secs. 1-111).21 (Secs. 1A.1I 1). 23 (SecsA-D) .

,. II VI - Mllc!o Economics 50 Marks

1 The economy as a .Clrcular' flow' of ,"come anel expenditure.

• The dotermination of income and employment; determillation olthe levsl of income in the short run-aggregate demand: the consumption function, multipli~r process; the invpstment function-marginal efficiency 01 capital; liquidity preference and the rate of interest. interaction of commodity and money market~.

Det8lmination of employment: Keynesian and neoclas~ical

theories; their limitat ions when a~~lied to LDCs.

3 Det9fmination of the general level of prices ; the Quantity Theory of Money; Inflation-Cost push. demand pull and structural theories.

4 8alance of payments: Its componerts ; exchange rates ; adjustment in cU're ,t account through price and income changes ; capital movements.

DINGS

1 E. Shapiro, MscrOlJconomic Analysis.

2 B Sod9fston. Internationsl Ecomonic •. Chs. 13-16.

3 V.K R.V. Rao. 'Investment Income and Multiplier in an underdeveloped Economy" The I"dian Economic Review (February 1952). Reprinted in AN Agarwala and S.P. Singh (eds.) The Economics of Underdevelopment, pp. 205-1Band V.K.R.V. Rao. Essays in Economic Development (1964), Ch.3.

4 Milton Friedman. "The Quantity Theory 01 Money" reprinted '" AA Walters (ed.)" Money and Bsn/f:ing. Selected Readings. (Penguin). pp. 36-55.

• Harry G Johnson. E.says m Mcnetary Economics (1969). Essay 3. pp. 104-42 .

8

PAPER VII-Money and the Financial System 50 Marks

Note: Parts of monetary theory will be covered in Paper. VI

Macro Economics.

1. Money Functions : alternative measures of money supply in India- their different components ; meaning and changing relative Importance of each in India. High powered mOney: meaning and uses, sources of changes in it.

2. Finance : role of finance in an economy; kinds of finance : fin ancial system ; components ;financial intermediaries, markets

and instruments; function 5 of each .

3. Commercial banks : importance. function . balance sheet of a bank ' mean ing and importance of the main liabilities and assests ; Co-operative banking In India.

4 . The process of credit creation by banks ; determination of money supply and total bank credit nominal and real.

5 Development banks and other non -ban k financial institutions. main features; unregulated cred it markets In India ; main featu res

6. The Reserve Bank of I nd ia- functions : instruments of monetary and credi t control. Main features of monetary policy in Ind ia since Independence.

7. Problems and policies of allocation of institutional credit:

(a) between tho government and the commercial sector :

(b) inter .sectoral and inter -reg ional . and (c) between large small borrowers. Operation of conflicting pressure before and after the nationalisation of banks in 1969.

8. Interest rates-various rates in India (viz. bond rate. bill rate. deposit rates. etc.) administered rates and market-determined rates; sources of differences in rates of interest; the behaviour of the average level of rates of Interest since 1951-impact of

inflation and inflationary expectat ions.

rEADINGS :

(Sta rred read ings are recommended . not required) 1. L.V Chandler and S.M. Goldfeld. The Economics 01 Money

and Banking. 7th ed. 1977- Chs. 1-7. '18.

9

V OIIlndl ... The Monetary Financial System. 1977 Chs. 1 •

·.·. 12· .13· . Gupta. Monetllry Plannmg lor India. 1979. pp. 1 -6.

U 48. 51 · 62. 103-174. 197-200. MY Khan. Indian Financial System-Theory and Prectice.

, 80 o N Ghosh. Banking Pnlicy in India-An Evaluation. 1979.

OIls 7-13.

Reserve Bank of India. Functions Bnd Working. 1970

Banking Commission. Report, Ch. 17.

H S B. Gupta. Monetary Economics Chs. 1·10. 15-20,

P " VIII : Mathematical Methods lor Economics 50 Mark

, Mltrices: Elementaryoperations-Determinants : computation of the inverse matrix : linear simultaneous equation.sCramer's rule for solution . (All d iscussions in terms of matnces

of order 2 and 3 .)

2 Funcrions : Sets. relations and functions; functions and diagrams in economic theory ; elementary analytical geometry~ straight line. circle, parabola. hyperbola and other curves \ Polynomial. e.ponential. logarithmic , nd trigonometnc fun

ctions; geometric and arithmetic progr~ion .

3 Derivatives: Limits and continuil) of a function : the derivative and its interpretation; the technique of differentiation;

economic applications of the derivatives; conV9X set and

concave functions; maxima and minima.

4 Functions 01 two variables : Partial derivatives ; total derivati,e ; consttained maximisation (m inimisation) , Lagrange multiplier; applications to theory of the firm and consumer

behaviour.

DINGS: I G.C. Archiblad and R.G. Lipsey : An Introduction to. Mlthe

mltical Treatment of Economics (3rd ed.) Chs. 3-11. 15.

2. R.G.D. Allen . Mathematical Analysis for Economi!ts. Chs.

3. 5. 6. 8. 11. 12, 14. 3. A.C. Chiang, Fuudemental Methods of Mathematielll Eco

nomics (2nd edn.) . Chs. 2.4.5,6.7,9. and 12.

4.

10

W.J . Baumol. Economic Theory end Ope,atiol1S A""IY$i' Chs. 2. 4.

PAPER IX - Public Finance (With Sp&cial Reference to India) 50 Marks

1. Fiscal functions in a developing economy: provision of social goods.

2.

3.

8.

C.

4 .

5

Government budgeting . Types of Gov"mment budget accounts-revenue and capital accounts. Economic and functional classification of the Central Government Budget : rationale behind such classifications. method of deriving significant economic magniiudes.

Public receipts. (A) Taxat lon·oquity criterion. Incidence of Indirect taxes: efficiency criterion . Features and evaluation of theta~structure : tax evasion . FeasibilityofValueAdded Tax in India. Taxation of agriculture in India.

Public borrowings. Sources. the instruments of Government borrowings in India (Short·t,>rm and loog·term). relative importance.

Deficit FinanCing Meaning and trends in deficit financing in India . Economic effects of deficit financing .

Public expenditure. Factors influencing public expenditure. Wag ner's law and the Peacock· Wiseman hypothesis. Trends in the level and composition of public expenditure in India~ Growth in subsidies.

Fiscal federal ism Constitutional provis ion in India. Findings and recommendations of the latest Finance Commission .

READINGS

1.

2.

3.

R.A. Musgrave and P.B. Musgrave. Public Finance in Theory and P,actice (Third edition . 1980) . Chapters 1. 3. (pp. 54.61) . 7 (pp. 139.159). 10. 11 . 12. (pp. 256·262). 13. 14. (pp. 301 ·313. 321·323). 24.

Raja J . ChelJiah. Fiscal Policy in Underdeveloped Countries (Second edition) Chapters2 (pp. 38-51).3 (pp. 54·66. 85 -90) .

Government of India. Mini!ttry of Finance. An Economic -cumFunctional Classification of the Central Government Budget. 1966·67 (introduction only) and latest (for analytical aspects only)

6

1

8

9

to.

, 1.

12.

13.

14.

11

Goy_mment of India. Ministry of Finance. Explan9tory Memo,andum 0" the Budget of Cemrsl Govemment (Latest available) . Gov&rnment of India. Ministry of Finance. Report of the Indirect Taxation Emfuiry Committee (L.K. Jha Committee) Part I (Sectio',52 , 3, 4. and 12) and Part II (Chs. 1.17. and 18) .

Ved P. Gandh i. Some Aspect of India's Tax Structure

K. N. Raj, "Direct Taxation of Agriculture." Indian Economic Review. Vol. VIII . No.1. (New Series). April 1973.

S.B. Gupta. Monetary Planning for I"dis. Ch. 6. (pp. 111 ·117).

R",port of the latest Finance Commission .

Government of I ndia. Report of the Committee on Com,ols and Subsidies (Vadilal Dagli Committee). May 1979. Ch. 2 (pp. 29-32). II (pp. 114·27).

G. Thimmiah. Burdens of Union Loans on the States. Chapters 1.2and3. (

V.B. Chuge. Burdens and Benefits of India'S National Debt (1977). Chapter 1 (pp. 1-16) .

Government of India, Ministry of Finance. Final Report of the Direct Taxes Enquiry Committee (K.N. Wanchoo Committee). December 1971 (pp. 4-18)

D.N . Dwivedi ed, Readings in Indian Public Finance. Read ·

ings 1. 2. 9. 11.

'AI'ER X-Comparative Eco"omic Development 50 Marks (with reference to selected countries: U. K. 1760-1914 Japan 1861-1939: U.S.s.R. 1917-1950)

1. Economic Growth and development: meaning and measure· ment. rat!' and time pattern of modern economic growth : major features of structural change and their inter-relationslabour productivity. capital formation. ou put. consumption .

2.

income and distribution of income.

Comparative study of historical patterns of development; (i) Agrarian change and role of agriculture in the economic

development of U.K. Japan. and U.S.S.R. (ii) Indl!ctrial Revolution in U.K.-comparative study of the

rate and pattern of industrialisation in U.K .• Japan and

U.S.S.R.,

12

3. Role of the State in different economic systems-a study of the thr .... selected countries.

READINGS :

1 . S. Kuzn ets, Modem Economic Growth : Rete Structure 8f7d Spread (1966)

2. C. Cippolla (ed .) FOf7tBf7B Economic Histol!' of Europe, Vol. 4 Pt. I, Ch 3.

3. Peter Mathias, The First Industrial Nation.

4. A. No~e, An Economic History of the U.S,S.R. (1969) : Oh. 4-8.

5 . ' Dobb, Soviet Economic Development sif7ce (1977) Ohs. 8-11 . 6. W.W. Lockwood (ad.) The State and Economic Enterprise in

Japan (1966) Ohs. 1, 2.

7. E.J . Hobsbawm, Industry and Empire. Chs.1 -10,12.

8. W. W. Lockwood, The Economic Development of Jttpttn. Ch. 10.

PAPER XI-Economic Systems 100 Marks 1. The notion of an economic system. Marx's concept of a

mode of production and its use in defining systems. The relation between economic and other aspects of a society. Marx's theory of social change.

2. Charact~ristic feature" of a capitalist economy Theaccumulation process and technical change. Instability and crises . The role of the State. Capi alism and Planning . .

The growth of monopoly and its implications for economic functioning . Modern capitalism ond coprorations . Imperialism and the role of multinationals.

Long run development under capitalism: theoretical approaches and the historical record .

3. Olassical ideas and the functioning of a socialist economy; the historical problems of socialism in a backward economy; the peasantry, industrialisation and primitive accnmulation'.

Planning in theory and practice : the role of planning; the possibility of rational calculation in a socialist economy, the Lange- Ierner solution and its relevance; levels of decisionmaking and the question of centralisation vs . decentralisa · tion; patlerns of investment and choice of techniques, thE

13

I" t law of socialist accumulation . Elements of economic ",," institutional structure in the USSR and Eastern Europe ond planning methods. Problems in industlY and ag~icul

!lllO and the question of economic reforms.

l&sues In the Chinese development e.perience with special emphasis On communes and rural industrialisation .

1\ A INGS:

1. Gregory Gro.;sman Economic Systems (Revised Edition)

Ohs. 1 & 2.

Z. Oskar Lange, Political Economy, Vol. I Chs. 1 and 2.

3. Maurice Dobb, On Economic Theory and Socialism, Chs. III.

o and XV.

4 J .A . Schumpeter, Capatalism. Socialism and Democracy, Chs. II , VI -VIII.

5_ K. Marx and F. Engels, Manfesto of the Communist Party,

Sections I and II.

6. Lionel Robbins, 'Individual Action in the Env ironment of Oapitalism', in W.A . Leeman ,(ed .)Capitalism Market Socialism and Central Planning, Readings iff Comparative Economic

Systems.

7. J.K. Galbraith, The New Industrial State, Chs . 2-7.

8. R. Blackburn, The New Capitalism, in BlackbUln , ed. Ideology

in Social Science.

9. M . Kalecki, 'Political Aspects of Full Employment' in E.K. Hunt and J .G. Schwartz. leds.) A Critique of Economic Theory . (Also in M . Kalecki, The Last Phase in the Transformation of

Capitalism) .

10. J .O. Oonnor, 'The Meaning of Economic Imperialism' in R.I. Rhodes ed. Imperialism and Underdevelopment. A Reader,

11 . P .A . Baran. The Political Economy of Growth, Chs. 3 and 4,

12. N. Kaldor, 'Oapital5t Evaluation in the Light of Keynesian Economics', in Kaldor. Essays on Economic Stability and

Growth .

13. R.G. Edwards, Michael Reich and Thomas E. Weisskopf, eds . The Capitali.t System, A Radical Analysis of American Society (Second edition, 1978) , Ch. 12.1, Ch. 4.3, 10.5.

14

14, A, Nove8nd n.M. Nuti, (eds.) , SociHltEcot?Ofllica. Cns, 1 &1

1 5, Oskar Langa,(ed,jProbfems of PoIiticM Economy of S~/i#i Chs, 1 ·3, (Also in t..nge, PlIpers in Economica ."d Socii logy 1930-1960, pp. 20-45, 85-114) .

16, Oskar Lange. 'On the Economic Th90ryol Socialism', (Seetio. I -V). in O. lange and F.M. Taylor. On the Economic Th'eo, of Socialism.

17, W, Brus, The Economics andPoJitics oISoci.,ism. Chs. 1 & 11 18, A Nove, The Soviet Economic System, Chs. 2. 4-6.

19 Peter Nolan. " Collectivization in China : Some Comparision: with the USSR ', Journal of Peasant Studies. January 1976

(Vol. 3, No. 2) .

20, J.G , Gurley. China's Economy and the Maoist Strategy Ch. 4 21 . A , Eckstein: China's Economic Revolution. 1977 Chs, :

and 8,

22, M , Lavigne. The Economics of USSR and Eastern Europ 1974, Chs, 1 -4,

23, S, Hymer. 'The Multinational Corporation and the Law ( Uneven Development' in H. Radice.(ed,) InternationBI Firms ar Modern Imperialism (Also in J , Bhagwati;(ed ,)Economics." World Order from the 1970s to the 1990s) ,

PAPER XII : Development Problems and Policy 100 marl

1 , Economic Development: General Perspective

Common characteristics 01 underdevelopment, Concept and sCOI 01 economic development, Economic growth in historical perspecti" lessons for less developed countries, Recent que,tioning of the G~ growth orientation and issues related to income distribution and povert Objectives and dilemmas of bconomic policy.

2, Capital Accumulation. Employment and International Trade in Economic Development,

Capital accumulation-rate and pattern of investment; level ar structure of aggregate demand; mobilisation of internal and eXlern resources for financing investment; the manegement factor and cone,,! of X-efficiency,

15

IIIPloymant problems of 1_ developed countries-character-111111, ..... la1/lll8lotand unempJoymant; issues in employment policy; .... ''II.t!oMhlp becween output and empl()yment objacti_; choice

I IntwosltV; skill formation; techn()l<>gy choi~e .. a package; ... ~_t and other implications of technologv choice.

flfablem. o'an open economy the role of international trade in the "111-; problems and p()licies related t<> international trada in 1IeYeIon"CI countfies,

.,..,.1 Policy Issues:

limitations of the price meehan ism and case for economic planning; of tIIa stata and private sector in a mixed economy; t~e public sectot

In Inttrument for policy interventioo in del/eloping c()untiies; isauea In bUe MCtor pricillg.

hoica of pf()jects ff()m a s<>cial point of view and social ~

hen"" Inalysis,

OMMENDED READINGS:

t Gerald M. Meier. Leading Issues i" Economic Development Third Edition. 1976.

lAo lB. 1.2.3. IC 2; IIA, 1.2 IIIB. 1110 ; IVA. IVB. 2. IVD. 1,2; VA. 1.4. AB : VIA. 3.5. VIC. 1.3. VI D, I, 2; VII A VlI B. 2.3. VII C 2.3. (Except pp 463-5) ; VlIIC. 1.2.

2 Michael P. Todaf(). Economic Development in the Third World". 1979. C~apters4. 5, 8. 13 and 14.

3 AP. Thirlwall. Growth and Developme"t with special reference to developing economies. Second edition. 197!!. Chaptlll's 4.7.

4 H, Myint. Th,e Economics of developi"g Countries: 4th edition. 1974. Chapters 1.5:6.7.8.10,

II H,W, Singer. "Poverty. Income Distribution and levals of ()f living; Thirty years of changing thought on Development problems" in C, H. H. Rao and P.C. Joshi (eds.). Reflections on Economic Development Bnd $ocial Change. Essays in honour ofV.K,R.V, Rao. 1979. Chapters 3. pp, 29·40.

II S. Kuznets. Economic Growth a"d Structure, 1965. Chapters 6. 6. pp, 176-212.

1 Kaith B. Griffin and John Enos Pftmning Development, 1970. ChaPter 3 ,

I· I

16

8. H. M~nt. Economic rllfHNy lind tIN UndlJrdelle/l1Pll' Ooun1ries, 1971 • Oha.,... 13. _

9. Fi8ncesStew .... rec/m%llY and UndllrdtwelopmlJnI. 1 Chapters 1 .2.

10. Frances Stewa" and Paul Streetsn, " Conflicts B~ Output and Employment Objectives" in Richard Jolly (eels.) rhird Worfd Emp/oymllnt, Penguin, 1973. R&ading Excerpts reprinted in Reeding No. 1 above.

11. T. Scitovsky Two Concepts of External Economies' in' Aggarwala and S.P. Singh (eds) , The economics of Un! d."e/opmlJnt, 295 -308.

12. H. Leibenstein "Allocative Efficiency Vs. X-Efficit ~riclln £conomic Revill w, June, 1966. pp. 392-416.

13. B.S. Minhas, "The Current Development Debate" in ToWl II New Strategy for Development. A Rothko Chapel 00 quium. (1979), Ch. 3.

14. Henry Bernstein (ad.), Underdevelopment lind Delleloptrl (Penguin, 1973), pp. 33-38 (a"icI8 byC Furtado).

16. K.N. Raj, "Trends in Rural Unemployment in India : Analysis with Reference to Conceptual and M_ur811 4 Problem~," Economics and Political Weekly. No. 31 (Special Number), 1976, Sections I and II, pp. 1281-1281

16. A.K. S8n, Choica of Techniques, 3rd ad . (1972), Chap"'"

17. H.T. Koplin, Micro-economic Analysis: Welte,. end I ciency in Prillete lind Public Sectors, 1971 . Chaptel'll17. 11

18. Richard Levard; : Cost Benefit Analysis. Penguin 1971 Introduction, pp. 9-59.

PAPERXII : Thlllndian Economy Since Indllpendence 100 IlII

.1 'Major features of thelndian economy at Independence, objed of planned development and role of the state.

2. (I) Institutional framework : Patterns of asset-ownership agriculture and industry; Polici9$ for restucturing agrl relations and for regulating concentration of ec:ono powers.

(Ii) Demographic constrains: Interaction b8tween populatio change and economic development.

17

uro.. Prob.ems and instruments of mobilisation of

III n,,1 reaources for the public sector; external resoun:8lS ·

.. "Icullrnll .' .Share of agriculture in nation~1 incom. sn~ _k lore.. Factors intluencing prodAJctllllty In agllculture.

II ul technology, institutional factors. Pattern of ow_I hl" lind land reform (such a.; the size dIStribution olland and __ to "ri~ation , cradit and modern Inpu~) and pnce ,.o!lcV Growth of egricultural output : a broad r .... _.

(UI Indu.'ry .nd Foreign Trade : Constraints on growth ,riling "om the structUle of production and foreign trade erId .... IIIItagV of import substitution-based industrialisation. Public: _tor in India and its role in the growth process. P~IC"for regulatIng thti pattern of inV8<tment in the private seotDf. Uoen&lng and oth er direct controls, pollc les towards the small II1II1. sector. Foreign Capita l. The rate and pattern 01

Industrial growth: trendS since 1950. The export .'9ctor: performance end policies, implications for growth; the balance

of paymronts.

(III) A r.view of resource allocation acro&s broad Slau'l : agricultule, industry and infrastructure.

(1) Growth and Structural Change since 1950 : Ra_ of IIII'tlnG and investment, growth of national income end per ClPlta Income, changes in the industrial distribution of MUon.1 income end work force-allind ia and regional con1r."·

(II) A_ment of the growth el<pf)rience : Unemployrioent

POVfirty, inequality and in1Iai\on .

INOS:

Bhagwati and P. Desai : Indian Planning for Industrialisation.

!"remit Chaudhuri : Indian Economy. _

!'remit Cheudhuri (ad.) : Aspects oflndian Economic Develop_t.

Ch. 3. C.D. Wadhwa (ed.) : Some Problems of India 's Economic Policy

(2nd, ad) Cha. l , 14). R.H. Cassen : Indi'-~Popul.tion. Economy, Society, Ch. 4.

J .O. Sandesara (ad.) : Indien Economy-Performance and prospects

Ch. 27.

18

7. G,O,I. : The Economic Survey (Lalest luv,,) .

&, G,O,I. : Draft Sixth Five Year Plen (""v.ud) 1978·83. Ch, 13

9, G,O.I. : Sixth FIVe Year Plan 1980-85. Ch, 1.15.6.12 and 13,

10, G.O.I. : National Accounts Statistics (latest)

11 , V,R, Panchamukhi : Trade PoliCies of India. CIb-2,3 and appendi" iv,

12, M.L. Dantwala : Understanding Poverty and Unemployment. Indian Merchants Chamber Brochure, 1980,

13. Hobsbawn (od) : Peasant. in History Ch .. II. by V,S, Vyas. esp, pp, 781 -786,

1,4. V.M. Dandekar and N, Rath : Poverty in India. Indian School of Polit ical Economy (1 971 ). Ch, IV. V.

15, C,H, Hanumantha Rao : Technological Change and Distribution of Giens in Indian Agriculture Chs. 15, 16,

16, Deepak Nayyar : Indian's Export Policies in the 1970's Cambridge University Press (1976), Chs, 13 and 14,

17, S,B, Gupta : Monetary Planning for India , pp, 16·22,41 -43,

1 B. P.K, Basu and A Nove (ods) , : PublicEnterp"se Policy on Investment, PriCing end Returns (1980). pp. 261 -318.

19 C,T. Kurien : "Small Sector in New Industrial Policy", Economic and Political Weekly, (EPW), March. 4. 1978,

20. Raj Krishna : "Interstate Disparities in Economic Development" Gl Mehta. Memorial lectures, liT. Bombay 1980,

21, V.K.R,V, Rao : C,N. Vakil endowment lectures. lEG, Series.

22, B. Sivaiaman : "Scientific agriculture in neutral to scale: the fallacy and the remody" , Journal of the Indian Society of Agriculturlll StrBtistic.1973,

23. A Vaidyanathan : " Performance and Prospects of Crop Production in India". EPW, Spl. No. August 1977.

24, M,l. Dantwala : "Future of Institutional Reform and Technological Change in Indian Agriculture Development, EPW, Spl. No, Agusut 1978,

19

M I "_ntwlla , "Incentives and Disincentivesin IndianAgricuhure In II.n Jourrrlli Of Agriculturel Economictsc. April -June 1967

AflllU " Tenancy reform" EPW, Spl. No. Augustl975.

1111118 . " Intersectofal Disparities and Income Distllbution in. InUI. 1960-61-1973-74", Indian Economic ReView AplIl -

Jun. 1 J80,

II P.ndlt: An Analysis of Inflation In India : 1950-1975), /1111/.11 Economic Review. October 1978, pp, 89-99,

'Thoughts on Inflation and Distribution", • j(rlshnaswamy, : Indilln Economic Jourrrel. October -Dec , 1976.

1/ 1/ Desai, : "Pursuit of I ndustrial Self-suffici~ncy" Economic

_lIff Politicsl Weekly, May, 1. 1971.

I G Patel, : " Coromandellectures, Mainstream, Dec, 27, 1980.

A Rudra : "Organisation of Agricu lture for Rura l Development:

rho Indian case", Cllmbri dge Journals of Economic$, Vol. 21,

No, 4, (DacemberI978) , pp, 381 -406,

G, Parthasarathy : " la~d Reform and the Chang in g Agrarian ,

Structure" in C,H, Shah (od.) ; Agricultural Development ol/ndl8

Polici". and Problems (1979) ,

II U.P,_186-5-86-600+50

158 J 0"1 Copy right renrve!. ~

UNIVERSITY OF DELHI

SCHEME OF EXAMrNATlON

AND

COITRSES OF READrNG

FOR

B. A. (HONS.) EXAMlNATION IN .ECONOMICS

Part I Examination 1992

Part II Examination 1993

Part rrr Examination 1994/

o TARY COPT

appl icable for .students seeking admission to ,h. (lions.) Economics Course in the academic year 1991.92

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UNIVERSITY OF DELHI

B.A. HONOURS IN ECONOMICS

SCHEME OF EXAMINATIONS

Mu Dur.t/on M.rk, Houri

".m/n.t/on 1992 I-Micro Economic. I

II-Economic Hlsto,y of India (1867·1947)

Ill-Stltl.tloal Method. for Eoonomici

IV-NltlonlllncC'm. Accounting

rm V-Micro Economics II

VI-Maoro Economics

VII-Monay and the Financlal·System

50

60

60

50

60

60

60

2

2

2

2

2

2

2

. VIII-M8th~matlcll Methods for Economics 60 2

199~

IX-Publ,c t'inance 50

X-Comparative Economic Development 50

XI-Economic Systems 100

XII-Development PPoblems and Policy 100

2

2

3

3

, XIII-Indian Economy since Independence 1 00 3

'n many papers (such as VII. IX. XII. XIII above) . the read· '"gs suggested may be suitably revised from time to time In

II,. light of the availiability of new reading material;

Wherever periodic publications. such as the Economic Survey. " port of Fmance Commission. have been recommended as , dings. the latest issues available 8/ the beginning of an .' demic lear will serve as the readings in Question ,

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PAPER I Micro-Economlcs-I"

1. Introduction :Basic ~roblems of an economy, ~n,nsl:ru'l. verification of economic theories; notions of eauililbll dis-equilibrium, market demand, market supply determination . '

2. Theory of Consumer', Beheviour : Marshallian difference curve approach ; revealed preference law of demand ; elasticity of demand.

3. Thepry of Production : Factors of production; function ; production possibility curves; cost curv function; elasticity of supply.

4 . Theory of Firm end the Market Structure

Plofit maximisation objective of the firm

(a) perfect competition : equ ilibrium of the firm; and the equilibrium of the industry; market and the stability of equilibrium.

(b) Imperfect competition : equilibrium under price discrimination ; monopolistic competition; Cournot's solution, kinked demand curve.

'Treatment of the subject is intended to be no,n-m ••

BASIC READINGS :

1. R.G. Lipsey, An Introduction to Positive Ee,MIMI edition .

2. P.A. Samuelson, Economics, latest edition.

3. W. Stonier and D.C. Hague, A Textbook of Ee,Mcllllll 4th edition, 1972, Chs. 4,5,8,9. (Secs. 1-9)

OPTIONAL READINGS

4. W.J . Baumol, Economic Theory and Oper.' 4th edition, 1978, Chs 11, 15., 16.

5. A. Koutsoyiannis, Modern Micro economics. 2nd 2 (Secs. I and II) , 3 (Sec • . I, II and IV) 4 (500'; . I

110

3

: Economic HIStory of Indie 1857-1947 50 Marks

General history of the pellod 1857-1947. Institutional developments: the relat ionship between the British Government, the Government of India and the provinces.

The ooeial and economic structure of India in 1857.

Main trends in the economy, 1857-1947 : Population, labour force. national income, foreign trade and payment; growth of the modern sector.

Agrarian Relations. Trends in output and productivity of a9 riculture and per capita food availability. Govemment policy towards agriculture, irrigation, famines and rural credit.

The chaOQ'"Q structure of modern industry : role of domestic and foreign enterprise and government policy. Tne emergence of a modern labour force and the groWlh of trade unions.

The colon ial impa;t and domestic responses : an assessment. Fiscal and trade policies: the debate between government and its critics

Regarding topic 3 a general familiarity with broad trends is expecteci ; the student will not be expected to memo,;ze fig ures.

Regarding topic 5, • detailed .tudy of individual industries is not expected.

Sumit Sarkar : Modern India, Chs. 1,2 (Part 1). 3.4.5,6,7.

V.B. Singh (ed) : Economic History of Indie, 1857-1956, Chapter by T.N. Madan

B.R. Tomilson : " India and the Briti9h Empire, 1880-1935", Indian Economic lind .socilll History Review, Vol XII , 1975

R.jot Ray ' Industrializetion in India, 1 914-1947, Chs. 1.2.4 and 5.

C.J. Dewey and K.N. Chaudhuri (od.), Economy lind Socie(V , Essays in Indian Economic and Social History, Ch. 10.

\

S N. Agarwala : Indill's Populltions. PrOblems, Oh. 4. !

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10.

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G. Blyn : Agriculturel Trends in Indie ,'cOutput, A Aveilebility Md ProductiVity, Oha, Chi

S. Sivisubramonilm : National Income of India, 1 1946-47 (Ph.D. thesis, mimeo), laat

H. Venkltlsubbiln : Forieign Trede of Indie. 1900-1

D.R. Gldgll : The Indultriel Evolution of Indle in R.,.:.", 186.0-1939, (1971) , Chs. II , V, XI. XV XX.

A.J. Youngson (ed.) : Economic Development in th, Run, paper by Macph.rson.

PAPER III

1. : Stet/sticel Methodl for Economics

Unlveriete frtlquency dinrlbulionl : Measures of I first four moments; mea.ures of dispersion ~~~ ,

2.

3.

4.

5.

6.

Bivlriele frequency dlltrlbutlons : Oorrelltlon; with one Independent vlrlable; method of le .. t aim pie Inalval. of Ittrlbut ...

EI,m,ntlry Prob,bllity Theory : Oonc'Ptl of prob,blllty; ,ddltlon end multiplication theorema . ~robebi lity and Indep'nde~ce of ev,nll; concept' of. variable; probability distribution ; mean end VII'I.". random verlable : binomial and normal dlatrlb,uth)lll,

Sempling : Random sample; concept of sampling distribution of the sample mean ; concept of tllatl cance; tests of Sign ificance of the mlln and the cOefficient (only normal distribution to be used for cusslon of sampling distributior, and tests of signlft.

Index Numbers : Ooncept of an Index number ' Latlpe!,.. Paasche's indexes, factor ar. ' - reversal tests ; index ; problems in the cons,

1 of index

Time Series Analysis : ObJectives, cOmponents of a mea~urement of trend by moving averages ' linear nentlaJ growth cu . .

ryes, measurement of seasonal

110

READINGS :

P.H. Karmellnd M. Pollsek, Applied SIItllticI for Ecooomilt$ (3rd Edn.), Ohs. 5,6,7 (SICS. 7.1-7.6) , 10 (aecs. l0.l , 10.2, 10.4,) 10.6), 11 , 13.

F.E. Oroxton, D.J. Oowden Ind S. Klein, Applied Genersl SIItl.tlcI (3rd Edn.), Ohs. 11 , 12 (pp. 230-243) , 13 (pp. 266-

287), 14. 17-19,24 (pp. 637-551) .

A.L. Nlgar Ind R.K. Des, Bllic Stetlstlcel.

M.R. Spiegel. Sllliltlcs.

IV - Nltionli Income Accounling 60 Mlric.l

The Production Process In I modern economy-relationship between 1I0~ks and flows. Generation of value added end faotor Incomes by a production unit and an economy-an ellmentary discussion of the input-output transactions matrix.

2. IIIUU In Ihe Concept of Nlt/onll Income . Ooncer ts of Production; distinction betwHn intarmedllteand final product. including treatment of government; concept Ind treatment of depreclltion.

3 M."v"m.nl of N. tlon.llncom, : Varioul waye of looking at Natlonll Income; production, Incoml dlatrlbutlon .nd dl.position; In outllnl of thethre. mathodl of ml .. urlng n.tlon,1 Incoml; "tlmatlon of nltlonal Income In India; I glnerll discussion of the methodl and difficulties.

4. N,tlon.1 Incom. Agge"glt .. ,' MHlurlng th. Interrll.tlonIhlps.

5. U,e, ,nd Llmltetlons of Nellon,'lncom. : Problem. of comparl.

6.

7.

8.

Ion. over tim'e and among nations. National Income al . n Indicator of welfare ; personal and region II dl t"bullon, quality of lif. Indices as an alllrnative.

Nltlonllincome Account$ " Olassification of transactors and transactions, usa of the double entry principle in the account of a firm and in national income accounts. Elementary notions of sources and uses offunds. Oonsolidated national accounts of India.

National Capilal : Methods and problems of estimation.

Balance of Payments Account: Structure and classification.

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READINGS

1. J .R. Hicks, The Social Framework (1971). Chs. 12, 13 and 1 f and Appendix Note C.

2. Russel Mathews, Accounting for Ecomists, Ohs. (Sec. I).

3. Wilfred Beckerman, An Introduction to NaJional In, ....

Analysis, Chs. 1, 2, 3, 4, 8, 7

4. Paul Studenski, Income of Nations, Part II (1961) . Ohs. " (Sec. (1, 3) 13,14,; 5 (Sec. 1 ) , 1 6 (Sec. 1,3.4) 17 (Sec. (Sec. 4c) .

5. William I. Abraham, Nationallncome and EconomiC AI:COUI~.1 (1969) Oh. 4)

6. C.S.O. National Accounts Stastics (Latest Issue)

7. O.S.O. National Accounts Statistics : Sources Methods

8. Richard and GiovannasStone, Nationallncomeand Ex,oeli". (1972), Oh. 6

9. Reserve Bank of India. India's 8alance of Payments to 1961-2, Ch. 1 Pages 1-12 -

PAPER V - Micro Economic·" , 1. Factor Pricing and Distribution : Theories of rerlt--RiCIIIII

and modern theories; determination of wages. profit.

2. Genersl Equilibrium: Concepts of partial and general brium; equilibrium of exchange; Edgeworth box

3. Linear Models : Elementary input-output anaIYSI.; tnt'roa". to linear pragramming and simple applications.

4. Welfare Economics : Pare to optimality; limitations of the criterion; compensation principle (Kaldor-Hicks, criteria); social welfare function ;. competitive equilibrium Pareto optimality ; market failures.

5. International Trsde : Ricardian and. Heckscher-Ohlin gain from trade; International trade and factor pric ..

BASIC READINGS:

1. R.G . Lipsey . An Introduction to Positive Economics, edition. . .

2. P.A . Samuelson , Economics latest edition .

110

7

3. W.J . Baumol, Economic Theoryand Operations Analysie, 4th edition, 1978 . Ohs . 5 (Sees ,·3), 21 . 22, 24.

4. C.P . Kindlebrger, Internstiona!E&I1Iomice, 1973 , Chs 1-4.

5. B. Soderston, International EcooctNcS, 1971 , Part I.

6. A. KoutSOyiannis, Modern MicJoeconomics, 2nd edition. Chs. 20 (Secs. I·IiI), 21 (Secs. 1A.IL), 23 (Sees A -D) .

PER VI - Macro Economics 50 Marks

1. The economy as a ,Corcular' flow' . ,ncome and expenditure.

2. The determination of income and employment : determination of the level of income in the short run-aggregate demand : the consumption function, multipli" process; the invpstment function-marginal efficiency of ""ital ; liquidity preference and the rate of interest. interactio",f commodity and money market~ .

Determination 01 employment: Kernesian and neoclas.ical theories; their limitations when ap~~d to LDCs.

3. Determination 01 the genera! Ie'. Of prices ; the Quantity Theory 01 Money; Inflation-C051 push, demand pull and structural theories.

4. Balance 01 payments : Its componerG; exchange rates ; adjustment in currel)t account through p"ce and income changos ; capital movements.

DINGS

1. E. Shapiro, Macroeconomic Analysis.

2. B. Sode"tol\. International EcomOlllcS. C~s . 13-16.

3. V.K.R.V. Rao, 'Investment Income and Multiplier in an underdev~oped Economy" The Jodian Economic Review (FebruarY1952), Reprinted in AN.Agarwala and S.P. Singh (eds.) Th' fconomics of Underdevelopment, pp. i05-18and V.K.R.V. Rao, Essays in Economic Dl'le/opment (1964), Oh.3.

4. Milton Frtedman, "The Quantity TheOry of Money" reprinted in A.A Walters (ed.) " Money and Ba'king, Selected Readings, (Penguin ). pp . 36.55.

b. Harry G. Johnson. Essays i,., Menel.ry Economics (1969), Essay 3, PP. 104.42.

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Nots: Parts at monetary theory wil/ be covered In Macro Economics

1. Mo.ney : Functions: alternetive measures at m'on!",. India th' d'ff . - . all I erent components; meaning .nd relal,~a Importance at eech In India. High po\¥.,1It1 meaning and usa., sources at changes in it

2. Finence' role t (. t. .' a Inance In an economy' kind,,, Inanclal system' com . ' d . ,ponents;t,nanclallntermedlerl

an Instruments; tUnctlons at each.

3. ~aon~~ercial banks : importence, tunction, balanc, . meaning and Importance at the main

assesls; Oo-operative banking in India.

4. Tho procass at credit creation by banks' del'''"''fIII money supply and total benk credit. nO~lnel .nll

5. De~.lopm.nt banksend other non-bank flnanci.1 ma n features; unregulfjtad cradlt markats featuras.

6. The Reserve Bank of Indla-functione: inatrum.'nlll"l11 ~~ cried It control. Main feature. of mon'lIry n a 8 nce Independence.

7. Problems and pol/cles at al/ocatlon of Inatltullantl (a) between the government and the commercial

!~) inter-sactoral and inter-regional, and (c) al/ borrowers. Operation of conflicting pre'lIIII'"

~nd atter the n.tional/s~Ilon of banks In 1969.

B. dntereSl rates-various rales in India (viz. bond re Spas It r.les, etc.) administered ratas and

ratltShs; SOUICSS at difterences in rates at intemre,asrtk':·Ihl,,-a e average level t · ' " a rates at Interest since 1951 ntlatlon and inflationary expectations

READINGS :

1 . (Starred readings are recommended not reQIUl.I4I), L.V. Chandler and S.M Goldtald Th E . and 8 k ' . . e conom/e.

an mg, 7th ed. 1977 Chs 1-7, 18.

110

2 L.v Ohandllll, The Mon'lIIY Flnanelll $y.t,m, 1977 Oh • . 1, 4' 5', 12-, 13'

3 S.B. Gupta, Mon,ttry Pl,nnlng for Indl" 1979, pp. 1-6. 44,48.61-62, 103-174. 197-200.

'" M.Y. Khan, Indien Flnanci,l Systam-TMory and Practica, 1980.

II D.N. Ghosh, Sanking Pnlicy in India-An Ev,lu,tion, 1979, Oh • . 7-13.

8 R .. erve Bank of India, Functions and WorkIng. 1970

7. Banking Commission, Raport, Ch. 17.

8. S.B. Gupla, Monatary Economics Chs. 1,10, 16,20,

VIII: M,thametical Mathods for Ecof/omic, 60 Mark

1. M,trlca,: Elemenlaryoperalions--Determinants: computalion at the inver.e matrix : linear simultaneous equitlonsOramer's rule for solution. (All discussion. In terms of matrlce, of order 2 and 3.)

2. FunctIon.: Seta. relations and function.; functions and diagram. In economic theory; elementarv analytical geometry.tralght ·lIne. clrole, parabola. hyptrbola and other curv .. \ Polynomial. 'KPonentlal. logarithmic I nd trlgonometrlo fun-\ ctlon.; geometric and arithmetic progr ... lon.

3. Dlllv,tlv., : Llmlta and contlnul~ of. function: the derivative and Ita Interpretation; the technique of dlff,rentlatlon; economic appllcatlona of Ihe derlvatlv .. ; conve)! .. t and concave functlona; maxima and minima.

4. FunctIon. of two v,riabl,s: Partial derlvetlvea; total derlvati •• ; constrained maximisation (minlml.atlon), Lagrange multiplier; applications to theory ot the firm and consumer behaviour

NGS:

1. G.C. Archiblad and R.G. Lipsey: An Introduction to e M.mamat/c.1 Treatment of Economics (3rd ad.) Chs. 3-", 15.

2. R.G.D. Allen, Mathematical Analysis for Economists, Chs. 3. 5. 6, B. 11, 12, 14.

3. A.C. Chiang, Fundamental Methods of M.thematical Economics (2nd adn.). Chs. 2.4.6.6,7,9, and 12.

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PAPER IX - Public Fmance (With Special Reference to ~ndia) 50

1. Fiscal functions In a developing economy: provision of goods.

2.

3.

B

C.

4.

5

Government budgeting . Types of Government acco~llts-revenue and capital accounts. Economic functional classification of the Central Government rationale behind such classifications, method of significant economic magn itudes.

Public receipts. (A) Taxation -equity CTltefion. Indirect taxes; efficiency criterion . Features and 6V8IUI.U

the taxstructure : tax evasion. Feasibility of Value III I ndla. Taxation of agriculture in India

Public borrowings. Sources, the instruments of G borrowings in India (Short-term and long-term), Importance

Deficit Financing Meaning and trends In deficit "I"""'" India. , Economic effects of deficit financing .

Public expenditure. Factors influenCing public eXIJen,dl Wagner's law and the Peacock-Wiseman hypothesis. the level and composition of public expenditure In Growth in subsidies

Fiscal federalism Constitutional provision in India. and recommendations of the latest Finance ('n,m""."

READINGS

1 . R.A. Musgrave and P.B. Musgrave, Public Fff/ance In

and Practice (Third edition , 1980), Chapters 1,3, (pp.

2.

3.

7 (PP . 139-159) , 10, 11 , 12, (pp. 256 -262) 13 ,.-301 -313, 321 -323) , 24. . ,

Raja J Chelliah, Fiscal Policy in Underdeveloped (Second edition) Chapters2 (pp 38-51 ): 3 (pp. 54-66.

Government of India, Ministry of Finance, An EconGnl,iC. FUnctiOnal Classification Of the Central Government 1966-67 (introduction only) and latest (for analy1icel only)

110

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4 . Government of India, Ministry of Finance, Explanatory Memorandum on the Budget of Central Government (Latest

available) . 5 Government of India, Ministry of Finance Report of the

Indirect Taxation Enquiry Committee (L.K. Jha Committee) Part I (Sectior,52, 3, 4, and 12) and Partll (Chs. 1, 17, and 18).

6. Ved P. Gandhi, Some Aspect of India 's Tax Structure

7. K. N. Raj, " Direct Taxation of Agriculture," Indian EconomiC Review, Vol. VIII , No. 1. (New Series), April 1973.

8 . .S.B. Gupta, Monetary Planning for India, Ch. 6, (pp. 111 -117).

9. Report 01 the latast Finance Commission .

10. Government of India. Report of the Committee on Controls and Subsidies (Vadilal Oagli Committee) , May 1979, Ch. 2

(pp. 29-32), 11 (pp. 114-27).

11. G. Thimmiah, Burdens of Union Loans on the States, Chapters

1,2 and 3.

12. V.B. Chuge, Burdens and Benefits o( India's National Debt

(1977), Chapter 1 (pp. 1-16) .

13. Government of India, Ministry of Finance, Final Report of the Direct Taxes Enquiry Committee (K.N. Wanchoo Committee),

December 1971 (pp. 4 -18)

14. D.N. Owivedi ed , Readings in Indian Public Finance. Read

ings 1, 2, 9, 11.

X-Comparative Economic Development 50 Marks (with reference to selected countries : U.K. 1760-1914 Japan 1861·1939; U.S.S.R . 1917-1950)

1. Economic Growth and development: meaning and measure· mant, rate and time pattern of modern economic growth ; major features of structural change and their inter·relationslabour productivity, capital formation, ou put, consumption ,

income and distribution of income.

Z. Comparative study of historical patterns of development; (i) Agrarian change and role 01 agriculture in the economic

development of U.K. Japan, and U.S.S.R . (ii) Industrial Revolution in U.K.-comparative study of the

rate and pattern of industrialisation in U.K .. Japan and

U.S.S.R ..

-------,..-, ...... l1li--.1'

• • • •

I

B .~

UI 9. 9.

9

1

..,. Rol. of the State in different economic of the three selected countries.

syatems-a

lEADINOS:

1.

2.

3. 4.

6. 6.

7. 8.

S. Kuznets. Modern Economic Growth Spr .. d (I 966)

;;. ~16~0~~a (ed.~ Font.n. Economic History of Europ" Vol,

Peter Mathias, The Fiflt Indultri,1 N'tlon.

A. No~e, An Economic Hiltory of th' US S R 4.8. . . .. (1969),

Cobb, Sovl,t Economic Dev,lopm,nt ,Ince (1977) Ohs

~;~ ~~~~~~~dh~~:)/h' St'ta .nd Economic Ent"p~/" E.J . Hobabawm, Industry end Empire. Oha. 1·10 12

CWo W. Lockwood, The Economic D.v,'opm'~t .

h. 10.

PAPER XI-Economic Systam, I . The notion of an econom ic syatem M' 100

mode of d . . erK s concept I' pro uctlon and ita use In defln Ing systems

re atl?n b8lween economic and other aspects of a . MarK s theory of social change.

2. Characteristic features. of a capitalist economy Th latlon process d h . e an tec nical change. Instabiitty and The role oflheState. Capi alism and Planning ..

The g.rowth of monopoly and its implications for fun~tl.onlng . Modern capitalism and coprorations perlaitsm and the role of multin ationals. .

Long run development under capitalism : approaches and the historical record .

3. Classical ideas and the functioning 01 a . I' the h' . I socia 1st

IstOrlca problems of socialism in a back d the p ' war econCIII easantry, Industrialisation and primitive accnm I lie

PI . u a annlng in theory and practice : the role of plannin

pOSSibility 01 rational calculation in a socialist econom g. Lange·lerner solution and its relevance; levels of de:i.! making and the t' 1 . . ques IOn 0 centralisation vs. decentr.1 tlon ; panerns of investment and choice 01 techniqu ..

110

I ')

'first law of socialist accumulation. Elements of economic and institutional structure in the USSR and Eastern Europe and planning methodS. Problems in industry and agricul·

ture and the question of eeon omlc reforms.

I .. ues in the Chinese development eKperience with special ItIllphasls on communes and rural indultrlallutlon .

NOS : 1 . Gregory GrQ.l8man : Economic Systam. (Revised Edition)

Ohs. l & 2. 2. O,klf Llnge, Politic. I Economy, Vol . I ChI. 1 and 2 .

3. Maurice Cobb. On EconomIc Theory and Socl.llsm, ChI. III.'

o and XV. 4 . J.A. Schumpeter, Clp.t./ilm. Socl.l/.m .nd D.moctlCr.

Che. II, VI ·VIII. II . K. MarK and F. Engel., M.nfflco of the Communl.t PlfCY,

Sections I and II. 6. Lionel Robbins, 'Indivldual Action in the Environment of

Oapitalism', in W.A. Leeman.(ed .)C,plt.l/,m Merk,t Social/1m .nd Cencral Planning. Readings In Comp.ratlve EconomiC

Systems. 7. J.K. Galbraith. Th, N,w Industrial Stace, Ohs. 2· 7.

8. R. Blackburn. The New Capitalism. in Blackburn, ed . Id,ology

in Social Science. 9. M. Kalecki , 'Political Aspects of Full Employment' in E.K .

Huntand J .G. Schwartz. {eds.) A Critique of Economic Theory. (Also in M. Kalecki. The Last Phase in the Transformation 01

CapiCali&m) . 10. J .O. Connor. 'The Meaning of Economic Imperialism' in R.I

Rhodes ed . Imperialism and Underdevelopment. A Reade. 11 . P.A. Baran . The political Economy of Growth. Chs. 3 and ~ 12. N Kaldor. 'Oapital st Evaluation in the Light of Keynesia

Economics'. in Kaldor. Essays on EconomiC Stability an

Growth 13. R.G. Edwards. Michael Reich and Thomas E. Weisskopf. ed'

The Cap,talist System. A Radical Analysis of American Societ (Second edition. 1978) . Ch. 12.1. Ch . 4.3. 1 0 .5.

.m fMI

--

• • • •

I

~

0'

UI 9. 9.

9

1

14.

15.

16.

17. 18.

19,

20. 21 .

22.

23.

A. Nove and D.M. Nutl, (ed. ), Sociaiisl Economic8,

Oskar Lange,(ed .)Problams of Political Economy 0' Chs. 1 -3. (Also in Lange, Pepers in Economics and logy 1930-1960, pp. 20-45, 85-114) .

Oskar Lange, 'On the Economic Th90ryof Socialism', I -V), in O. Lange and F.M. Taylor, On the Economic

of Socislism.

W. 8rus, The Economicsllnd Politics of Socialism, A Nove. The Soviet Economic System. Ohs. 2, 4-6.

Peter Nolan, "Collectivization in China: Some with the USSR', Journel of Peessnt Studies, Jan

(Vol. 3, No.2).

J .G. Gurley, China's Economy and the Maoist Stral"IN' A. Eckstein: Chins's Economic Revolulion,

and 8. M. Lavigne, The Economics of USSR end Eeslern 1974, Chs. 1 -4.

S. Hymer, 'The MUltinational Corporation Uneven Development' in H. Radice,(ed.) In/err,sll'on.'''' Modern Imperialism (Also in J . Bhag'Na'ti;(,iId.)E,'onlHl

World Order 'rom the 1970s to Ihe 1990s) .

PAPER XII : Developmenl Problems and' Policy

1. Economic Development; General Perspeclive

Oommon characteristics of underdevelopment. of economic development. Economic growth in historical lessons for less developed countries. Recent que'tioning of growth orientation and issues related to income distribution and Objectives and dilemmas of &conomic policy.

2. Capital Accumulation, Employmenland Inlernelional EconomiC Development. .

Capital accumulation-rate and pattern of investment; structure of aggregate demand ; mobilisation of internal and resources for financing investment; the management factor

of X-efficiency.

110

Employment problems of 1_ dev.loped countries-charact" rItlles of employment and unemployment; lS$ues In employment polley; Inter-relationship between output and employment objectives; choice of capital intensity; skill formation ; technology choice a8 a package;

ployment and other implications of technology choice.

Problems of an open economy the role of international trade In the growth piocess; problems and policies related to International trade in I S develoDRd countries.

Gener.1 Policy 'ssues;

Limitations of the price mechanism and casefoi economic planning; .oia of the state and privata sector in a mixed economy; the public sector ' I.n instrument for policy intervention in developing countries; Issues In public sector priCing.

Ohoice of projects from a social pDint of view and social cost benefit analysis.

"ECOMMENDED READINGS:

1. Gerald M. Meier. Le.ding IS8ues In Economic Dlvllopm.nt Third Edition, 1976.

lA, IB, 1,2,3, IC 2; IIA, 1,2 IIIB, 1110; IVA, IVB, 2, IVD . 1,2; VA, 1.4, AB; VIA. 3,6, VIC, 1,3, VI 0, 1, 2; VII A. VII B, 2,3, VII 02,3, (Except pp 463-6) ; VIIIC, 1,2 .

2_ Micheel P. Todaro, EconomIc D.v.'opm.nt in the ThIrd World" , 1979, Chapters 4, 5, 8, 13 and 14.

3. A.P. Thirlwall, Growth end Development wIth specilll r.'."nc. to dev,'oping economies, Second edition, 197A, Ohapters 4,7.

4. H. Myint, Th.e Economics of dev.'oping Countrits ; 4th edition, 1974, Chapters 1,5,6,7,8,10.

5. H.W. Singer, "Poverty, Income Distribution and Levels of of living ; Thirty years of changing thought on Develop ment problems" in C. H. H. Rao and P.O. Joshi (eds.) , Reflections on Economic Development Bnd Social Change, Essays in honour of V.K.R.V. Rao, 1979, Chapters 3, pp. 29-40.

6. S. KuznelS, Economic Growth and Structure, 1965, Chapters 5, 6, pp. 176-212.

7. Keith B. Griffin and John Enos Plenning Development, 1970, Chapter 3.

Rs,lO=OO

• • • •

I

I B.~

UI 9. 9.

9

1

8. H. Myint, Economic Th.o,y .nd th. Countries, 1971, Ohapter 13.

9. Frances Stawal"/:, Tllchnolo lin Ohapters 1 .2. gy d Und.,d.v.lopm.nl,

10. Frances Stewart and Paul St Output and Employment 0 . r~ten:, . "Conflicta (eds.) Thi,d Wo,ld Empt bJectlves In Richard Jolly Excerpts reprinted i R °d

ymtnt, I?eng~in, 1973, R •• dlllll

n ea Ing No.1 above

11. T. Scitovsky Two Conce ts . Aggarwala and S P S' h p of External Economl .. '

• . Ing (eds) The dllvlllopmtnt,295 -308. ' ' economics of

12.

13.

H. Leibenstain "Allocative Eff' Ame,iclln Economic Review J 11clenc

y Va. . ' una, 966 , pp. 392-4111

B.S. Mlnhas "The C , New St"~8gy I urorent Development Debate" in ,0' IJve/opmtJnt A R h quium, (1979), Oh. 3. ,ot ko Chap"

14.

15.

Henry Bernstain (ed) U d (Penguin, 1973) . • n IJrdll.vtJlopmllnt .nd OIIV.,"" , pp. 33-38 (,rtlcle byC Furtado)

K.N. Raj, "Trends in Rural I I . Analysis with Refere ,.,nemployment in Indl. Problems" E . nce to Oonceptual and

. • conomlcs .nd Politlcsl IN (Special Number) 1976 Sect' I .ekly, No. , , 1008 and II, pp. 1281-1

16.

17.

18.

A.K. Sen, Choice of Techniques, 3rd ed. (1972) H T Kopli M' ' Oh;lptll : . n. Icro-economic Anal sis'

CIMCY In Private and Publ' S y . W.H,,. • IC ecto,.r, 1971. Ohaptn 1

Richard Leyard; : Cost Ben . Introduction. pp. 9-59. eM An.lysls, Penguin 1

~PER XII : The I';ditn Economy Since Ind 1 M ' tJptndtnc. . aJor features ofthe Indian

of planned development andecolnomy at Independanee, ., ro e oftha state.

2. (I) Institutional framework . P . . atterns of aSl,et··o"'In • ..aoI agriculture and industry' P I' . I . • 0 ICles for restucturing re atlons and for regulating powers. concentration of

(ii) 0 amographic constrains : Intaraction bet change and economic development ween popul."

110

(111) I'esources. ~rop .ems and Inatrumants o·f mobll l I tlV" VI Internal resources for the publ ic sector ; axtarnal resources.

II) Agriculture : Share of agricultu re 10 nati onal incoma and work force. "Factors Influan cing productivity in agriculture: role of technology. institutional factors. Flattern of ownership and land eform (such a .• the size distr l bution of land and acoess to irrivation. qredit and modern inputs) and pri ce policy. rowth o! agricultural output: a bro~d review.

(Ii) Industry and Foreign Trade : Constraints or growth arising from the structu.e of production and foreig n trade and the strat~y of import substitution-based industrialisation. Public secto in India and its role in the growth process. poliCies for ;egulltlO9 th. pattern f inveHment in the private SEctor. Lic" sing and other dir&ctcontrols. pollci9StoWards thes

mall

scal~ sector . Foreign Capital. The rate and pattern of indo stiial growth : treq..!s since 1950. Tha export ~ 9CtOr: perfor ance and policiBlI. implications for growth ; the balance

of paym .. nts. (iii) I( review of resoure allocation across broad sectors :

lagricultUie. industry I,d infrastructure.

(1) Growth and Srructurl Change since 1950 : Rates of saving and investment. growth of national IOcome and par capita income. changes in t\\le industrial distribution of national income and work force- all India and regional contrasts .

(Ii) Assessment of the g towth experience : Unemployment

pol/ertY. inequality and iinflation .

Bhagwati and P. Desai : Indian Planning lor Industria lisation.

Pralnit Ohaudhuri : Indian Ec.~nomy. PI8,mitOhaudhuri (ed .) : Aspe cts of/ndien EconomicOevelopmefil

Oh.3. C.D . Wadhwa (ed.) : Some IOroblems of India's Economic Polic)

(2nd. ed) Chs. 1. 14) . IA.H . Oassen : India : populat" n, Economy, Society, Ch. 4.

J.O. Sandesara (ed .) : Indian Economy-Perlormance and prospecl

Oh.27.

Rs.IO=OO

• • , •

• • ,

B.I

B

U 9. 9.

9

1

7.

B-.

9.

10.

, 1 .

12.

18

G.O.I. : The Economic Survey (Lelesllssue)

G.O.I. : Drefl Sixth Five Year Plan (Revised) 1978-83, Ch.

G.O.I. : Sixlh Five Year Plen 1980-85, Ch. 1,5,6,12 and 13

G.O.1. : National Accounls StellsllCs (Latest )

V.A. Panchamukhl : pade Policies of/ndla, Ch. 2,3 and appendi

M. L Dantwal~ : Understanding Poverty and Unemployment, Indian MArcharts Chamber Brochure, 1980.

13. Hobsbawn (ed) : Peasants In HJstory Ch .. II , by 11.5. Vyas, pp. 781 -786.

14. V.M. Dandekar and N. Aath : Poverty in India. In die School Political Economy (1971), Oh. IV, V.

15. C.H. Hanumantha Rao: Technological Change and Dlslribution Giens in Indian Agf/culture Chs. 15. 16.

16. Deepak Nayyar : Indian 's Export Policies in the 1970's Cambmll Un iversity Press (1976). Chs 13 and 14.

17, S.B. Gupta : Monetllry Planning f Indill , pp. 16-22, 41-43.

18. P.K, Basu and A Nove (eds) : Public Enterprise Policy on 1""lIStmIN Pricing and Returns (1980), pp. 261 -318.

19 C.T. Kurien : "Small Sector in New Industrial Policy", and Political Weekly, ( EPW). March, 4, 1978

20. Raj Krishna : " Interstate Disparities in Economic Development" GL Mehta, Memorial Lectures, liT, Bombay 1980.

21 . V.K.R ,V. Aao ' CN Vakil endowment Lectures, lEG, Series.

22. B. Sivaraman " SCientific agriculture in neutral to scale: the and the remedy", Journal of the Indilln Society of'A~"icult.iIt Stratistics 1973,

23. A Vaidyanathan : "Performance and Prospects of Crop Pr<>du,ctHl in India", EPW, Spl. No. August 1977.

24. M.L. Dantwala : "Future of Institutional Reform and T9<chrlohlllil Change in Indian Agriculture Development, EPW, Spl. N Agusut 1978.

19

M L De twele : "Incentives end Disincentives in IndianAgrlcultur. ·I;dl.; Journlll of Agriculturel Economicllc, Aprll-Juna 1987

P,S. Appu : "Tenancy reform" EPW, Spl. No. August 1976.

. . . d lome Distribution in B. Dutta : " Intarsectoral Dlspafltles an nc . . A ril , Indi. : 1960-61-1973-74", Indian Economic ReView P

June 1380.

V. Pandit: An Analysis of Inflation In India : 1950-1976) , Indien Economic Review, October 1978, pp. 89-99,

I f l t' and Distribution", K.S. Krishnaswamy, : 'Thoughts on n a Ion Indien Economic Journlll, October- Dec . 1976.

ff" y" Economic V.V. Desei, : "Pursuit of Industrial Self-su ICIPnc Nnd Political Weekly, May, 1 , 1 971 .

I.G. Patel, : "Coromandel Lectures, Mainstream, Dec. 27, 1980.

. . I f r Aural Development: A. Audra : "Organisation of Agllcu ture 0

The Indian case", Cemb,; dge Journals of Economics, Vol. 21, No.4, (December1978) , pp. 381-406.

G. Parthasarathy: "La';d Reform and the Changing Agrarian .

". C H Shah (ed ) . Agricultural Development of/ndla Structure In . . . ,

Policies and Problems (1979) J • • • • ,

I

68

UNIVERSITY OF DELHI

B. A.

---- ~ RY col? "-

~",,~A_ ,,~r_ -.( "'

SCHEMB OF EXAMINATION ..;.~r-. . - ~'<.. ~." '" \ I:)~ V' \

AND , ~ Ace. l'r .... ........ J ~ I COIIRSES OF READING \ ~ \ Dolt" .. \'>. ~.\~~'\&-: ,,:/

\ .r ;.- "'--r-/ ~ -e '- '._.' /; "': .... A" W 'DEL\~\ '>" ~ -.......

(HONS.) EXAMINATION IN ECONOMICS

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UNIVERSITY OF DELHI

8,.... HONOURS IN ECONOMICS


f'ert I Enmin'tioh ' 1999

Pape, . I-MlcllO Economics I

Pope, . II-Economic Hi'tolY of India (1867·1947)

Pa.,.,. Ill-Stati,tical Mllhods fOr'Economics

Papa,: IV-,-NatlonallnCt'lllI Accounting

/I Elt.mjnlltion 2000

Pepa, : V-Mic,o Economics II

Paper: VI-MIO'o .Economicl

50

50

50

50

50

50

PIP": VII-Monay and thl Financiat·S~ · 50

Pa.,., : VIII-MathN1l8!lcal Mllhoda far £conornlca 50

11/ Elt.min~'ion 200 I

PIpe,: IX-¥ubJlc flnin~1 50

Paper: X-Compa,ativI Economic Development 60

PIper: XI-Economic Syatams 100

PIper: XII-Development PPoblems and Policy 100

PaDer : XIii-Indian Economy since Independence 1 00

NOTES:

2 2

2

2

2

2 2

2

2

2

3

3

3

1. In many papers (such as VII, IX, XII, XIII above), the reed· ings suggested may be suitably revised from time to time in the light of the aveiliability of new leeding material;

2. Wherever periodic publications, such as the Economic Survey, Rlport of Finance Commiuion, have been recommended as reedings, the latest issues ~vailable at the beginning of en acedemic )ear will serve aa the readings in Question .

2


PAPER I . Micro-Economies-I

1. Introduction : Basic problems of an economy, f'n,'cr,·" and ver~ica!ion of economic theories; nnllinr'~ nl

and dis-equilibrium, market demand, market Sur"" U

price determination.

2. Theory of Consumer's Behaviour : Marshallian

in-difference curve approach; revealed preference

the raw of demand; elasticny of demand.

3. Theory of Production : Factors of production;

functions ; production possibility curves :

supply functions; elasticity of supply.

4 . Theory of Firm and the Market Structure :

Profit maximisation objective of the firm

(a) Perfect competition : equilibrium olthe firm; supply

and the equilibrium of the industry; ~rket

process and the stabMy of equilibrium.

(b) Imperfect competition : equilibrium under

price discrimination; monoplistic compe@on;

Cournot's solution, kinked demand curve.

OPTIONAL READINGS: •

1. W.J. Baumol, Economic Thl8Dryal~dlC)ple,atioI7A17aflffli.

edition, 1978, Chs 11 , -15; 16.

2. A. Koutsoyiannis, Modern Micro EconoMics. 2nd

Chs 2 (Secs. I and II) , 3 (Sees. I, II and IV), 4 (Sees. I,

5-9.

3 ,

PAPER II : Economic HI&tory of Indi. 1867-1947 60 M.rka

General history of the peflod 1857 -1947. Institution.' dlvelopmen": the relationship between the Britleh Government, the Government of India and the provinces. '

2. The .ocial and economic structure of India in 1,857.

3 Main trands in the econc'lly. 1857 -1947 : Population. I,bour force. national incoma. foreign trade and payment: growth of the modern sector.

4. Agrarian Relations. Trends in output and productivity of a~ riculture and per capita food availability. Government policy towards agriculture. irrigation, famines and rural credit.

!>. The changing structure of modern industry : role of domastic and foreign e,llel'prise and government ",olley. Tne emergence of a modern labour force aofd the growth of trade unions. . ,

G, The colonial impa;t and domestic responses : an essesement, Fiscal and trade policies : the debate between government.nd its critics.

Regarding topic 3 a genllt'al familiaritv with bro,d trends ia expecteo ; the student will not be expected to . memOrize figures.

Regardin9 topic 6, a detailed ~tudv of individual industries is not expected.

IllNGS :

\ Sumit Sarkar : Modern India. Chs, 1..2 (Part 1).3,4.5,6.7.

J V.B, Singh (ad): Economic Hi&lory of Indill. 1857-1961 • Chapter by T.N. Medan

B.R_ Tomilson : "India and the Britillh Empire. 1880-1935", Indian Economic lind Socilll History Rav;.w, Vol XII . 1975

R4jat Ray : Industrillllzation in Indill.l 914-1947. Chi-1.2.4and 5.

C,J, Dewey and K,N. Chaudhuri (ad.). Economy lind Sot:J«y E .... y. in Indilln Economic lind Soci., HmtNY. CII_ 10_

e S,N, Ag.rwal. : Indl.'. Popul.lioM. ProblwM, OIl, 4.

•

4

7. G. 8lyn: AgTiculturel T,.nd. in Indie .'cOutput AvMl'HO''''' Availability end ProductIVity. e .... e .... 1 ••.

8. S. Sovasubramoniam : National Income of Indl •• 1900-01 • 1946·.' (Ph.D. thesis ' mlm~). leat eIIepter.

9. H Vonkataaubbian : Forieign Trede of Indle. 1900-1948. Pt. II.

10. n .R. Gacjgif : Tha Indu'lfiel Evolution of/nt/le in ReHnt T'-1860-1939. (1971). Chao fl. V. VII. IX(2). XI XV XX.

11. A.J . Young,on (ed.) :' Economll; lHvelopment In the LotrI Run. paper by MKPhetwon.

PAPER III : Statiltical Method, I", Et:OfIomiC$

1. Univ.,iata IreqUMcy di«ributl_ : M_res of location; first four momenta; m_ of d~. lkewn_ .... kunosis.

2. Biveri.,. 'rlltluency diltribUfiOM : Cofnration; reg ..... with one independent v.itoble; mMltod of ,_ simple ana~is of _ibu_

3 EI"",."tery Probability Theory : ~ of __ ....

probability; addition and muhiplication theoI1Ims : eo<ldhialtll probability and ind~ence 01 _IS; conc:oept Of a renelalll variabl.: probability diSlribution; mean and variance random variable : binomial and noon.I distribution . ..

4. S.mpling : Poandom sample; conc:epJ of .. mpting distribution; distribution 01 the sample .mean; concept of teatI 01 lignlCIInce; tests of signilicance 01 tile mean and the ,egrllllaiOft coefficient (only normal distribution to be used lor the dilicuss ion 01 sampling di'tributiof, and tests 01 signilican'j:8).

5. Index Numbers : Concept 01 an index numbar ; ~e'l 8nd .. aasche's indexes. lact,?r a,. reversal tests; chain "-index ; problems in the cons.. , 01 index numbels.

6. Time Series An.lysis : Objectives; components of a time..n.; m.asu,ement 01 trend by moving averall .. ; lin .. , and exponential growth curves; me.urement of Maaonlf varilliOn.

6

READINGS:

P.H. Kerm" and M. Polasek. Applied Stetistic. for Ecoooini." (3rd Edn.). Chs. 5.6.' (sees. 7.1-7.6) . 10 (sees. 10.1. 10.2. 10.4.) 10.5). 11. 13.

2 F.E Croxton. D.J Cowden end S. Klein. Applied General Slali.tic. (3rd Edn.). Chs. 11. 12 (pp. 230 -243). 13 (pp.256-

267) . 14. 17.19. 24 (pp. 537 -551) .

A L. Nagar and R K. Das. Ba.,c SlaliJlice • .

4 M R. Spiegel. S,.,i.tics.

IV - Nalionel Income Accounling 50 Maries

The Production Process in a mod.,n economy-refationship between stocks and flows. Gen.,ation of value added and factor incomes by a production unit and an economy-an elementary discussion of the input-output transactions matrix.

Inues In the Concepl o{ Nelionsl Income : Concepts of Productoon; distinction between intermediate and final products Including treatment of government; concept and treatment of

depreciation .

Meesuremant of :Vlftionellr.come : Various ways 01 looking at National Income; production. income distribut!on and do.position; an outline of the th,ee methods 01 measuring national income; estimation of national income in India; a general discussion 01 the methods and difficulties.

Nalional Income Agger.gates .' Measuring the interrefationships.

U.es snd Limilstions of Nationsllncome : Probl~ms of ccmpo'o· Ions over tim"e and among nations. National InCOITlu a! an indicator 01 wellare ; personal and regoo~al d;stribul'vn ; quality 01 lile indices as an alternative.

National Income Accounts: Classification 01 transactors and transactions. use 01 the double entry principle in the account of • firm and in national income accounts. Elementary notions of sources and uses 01 lunds. Consolidated national accounts 01 India

I Nalional Capilli : Methods and problems 01 8Stirr.~_._ ...

Be/enca o{ Paymants Account: Structure and classilication .

., READINGS

1. J .R. Hlcka. Th, Soci,' Fram.work (1971). Ch • . 2.3.S.' O.

2.

3.

4.

&.

6. 7. 8.

9.

12. 13 end 1 ~ end Appendix Note C.

Russel M.thews. Accounting lor Ecomists Cha (Sec. I). • . , 8.

WiHrad Beckerm.n. An Introduction to Natlon.' Amly';., Chao " 2. 3. 4. 8. 7 Peul Stud.nlki,lncOtrlll 01 N.tior.s. Part II ('981). CIIs 11 (Sec. (1,3) 13.1435 (Sec. 1). 18 (Sec. l.3A) 17 (S~. ll. (Sec. 4c).

William I. Abraham, N.tion."ncomo.nd EconOmiC AC'co.umWl (' 969) Ch. 4)

C.S.O. N.tion.' Accounts St'stic. (Latest l$$Ue)

C.S.O. Nation.1 Accounts St.tistics : SourCes MethOds

Richerd and GiovannasStone. N'tion."ncome,nd Ex,De"dil'" (1972). Ch. 6

Reserva Bank of India. India', B.I'nce of Payment, la 1981-2. Ch. 1 Pages 1-'2

PAPER V - Micro Economic-II

1. F.cttN Pticing and DmributiM : Th8Oli... of rent-.Ric:arcllI and modem thea" ... ; clen.mination of wClges profit •

2.

3.

4.

&.

GtJntJral Equilibrium; Concepts of partial and general brcum; equilibrium of exchange; Edgeworth box dilltjre~1IJ Linear Modttls : Elementary inpU1-outp'ut analYSIS; IntcrodUdiG to hnear pragramming and simple applications.

W,tJH-:tJ EconomiC$ : Pare to optimality; limitations of the Crltenon; compensation principle (Kaldor-Hicks aiteria); ~al .welfare function;. competitive ,eqUi'librium Pareto optcmahty ; market failur ....

In~em.tiOINI TftJde : Ricardian 8~d Heck$ch8f-Ohlin galA from trade; Internation.1 trade and factor prices.

BASIC READINGS :

1.

2.

R.G. Upsey . An' Introduction to POSltIIlO Economic. ad~n. ••

P.A, Samuelson. ECGnomic. latest adition.

7

3. W.J. B.umol, Economic Theory .nd Opefltion. An.iylil. 4th adltlon. 1978. Oha . 5 (Sec. 1 -3). 21, 22. 24.

4. C.P. Kindlebiger. Int,m,tion,' Economica. 1913, Chi 1 -4.

5. B. Sodef8ton, Intem.tion,1 Eco.o.omicl. 1971. P.rt I.

8. A. KOU~yi.nnis, Modern MicroeconomiCl. 2nd adition. Chs. 20 (Seca. I-III). 21 (Sees. 1 A. III). 23 (Sees A-D).

PAPER VI - M.cro Economics 50 Marks

1. ' The economy a8 a ,Circular' flow' of Income and expenditure.

2. The determination of income and employment : determination ofthe level of income in the short run-aggr"llate demand: the consumption function, multiplitr process; the invpstment function-marginal efficiency of capital; hquidity ~reference and the rate of interest. interaction of commodity and money market!.

Determination of employment : KeynesIan and neocla .. ical th8Ofiee; their limitations whon a .. ~lied to LDCs.

3. Determination of the general level of prices; the Ouantity Theory of Money; Inflation-Cost push. demand pull and structural theories.

4. B_lance of payments: Its componerts; exchange rates; adjustment in curre .• t account through price and income changos; capital rnovement~.

READINGS

1. E. Shapiro. Macroeconomic Ana/y$is .

2. B. Sod8fSton. Internation.' Ecomonics. Chs. 13-' 6.

3. V.IlR.V. Rao. 'Investment Income and Multiplier in an underdeveloped Economy" The Indian Economic Review (February 1952). Reprintad in A.N. Agarwala and S.P. Singh (ads.) The Economics of Underdevelopment. pp. l05-1Band V.K.R.V. Rao. Esuy's in Economic Delle/opment (1964) Ch.3.

4. Milton Friedman. "The Ouantity Theory of Money" reprinted in AA Walters (ad.)" Money and 86nking. Selected Re.ding •• (Penguin). pp. 36~55. .

6. Herr( G. Johnaon. E,..ys in ManetV'( Economics (1969). Eaeay 3, pp. 104-42.

8

so Mlrk.

Note: Parts of monetary thoory will bo covered in Paper, VI_ Macro Economics.

1.

2

3

4

5

f) ,

7

8

Monoy Functions : alternoti\le measures of money lupply in !ndla- their d iffprent components ; meaning and changing relative Importance of each in Indi. . High powered money; meaning and uses, sources of changes In It.

Finance role of f inance In an 9';onomy: kin ds of finance : financial system ; compononts ;financial intermediaries, markets Dnd instruments : funct ions of each .

CommerCi al banks importance. function . balonce sh"t of • ban k ' mean ing and Importence of the mOln liabilities and aSs9sts, Co · opefativ8 banking in India.

The process of credit creation by banks ; determination of money supply and total bank credit. nominal and real.

Development banks and other non · bank llI1ancial institutions, main features ; unregulated Cfddit markets in India : main features

The Reserve 8'8nk of I ndia-functlons: Instruments otmonetary

.and cred it control. Main features of monetary policy in Ind ia Since Independence.

Problems and pol icies of allocation of institutional credit '

(a ) between the government and the commercial sector;

( b) ·nter·s"ctoral and inter-regional. and (c) betw"n large small borrowers. Operation of conflicting pressure before and after tho nationalisation of banks in 1969.

Interest rates-vallous rates in ·India (\liz. bond rata. bill rate, dp.poslt rates. etc.) apministered rates a(ld market-detarmined rates . sources of differences in rates of interest; the behaviour

. of the average level of rates of interest sincel951-impaet of Inflation and inflationary 8xpectatiohs.

FEADINGS

(Starre" read ings are recommended. not required) L.V Chandler and S.M. Goldfeld. The Economic. of Money and Banking 7th ed 1977 Chs. I -7. 18.

. -

9

2. L.V. Chandler. The Monetory Finonciel System, 1977 Chao 1. 4' 5', 12", 13".

3. 5.8. GuPta. Monetsry Plenning for Indio. 1979. p')l. 1-6, 44-48. 51 -62, 103-174. 197-200.

4. M .Y. Khan. Indian Finenciel System-Thoory and Proctico. 1980.

5. D.N. Ghosh, Bonking Pnlicy in Indio-An Evoluation. 1979. Chi. 7-13.

6. ReaMve Sank of India. FunctiOfls end Working. 1970

7. Banking Commission. Roport. Ch 17

8. S.8. Gupta. MoneulfY Economic. Chs. 1·10, 15 -20,

PAPER VIII : Mothemeticel Methods for Economics 50 Mark

1. Motrice. : Elem9l1taryoperations--DeterminanfS : cornoutation of the inverse matrix : linear simultaneous tY-I'Ja tl c..r. $·~-

Crem ... ·s rula for solution . (All discussions in t ... ms of matrice$ 01 ord ... 2 and 3.)

2. Functions: Sets, rolations and functions; functions and dia· grams in economic theory; elementarv analytical geomatrystraight ·line. circle, parabola. hyp ... bola and oth ... curlles Polynomial. exponential, logarithmic, nd trigonometric functions; geometric ana arithmetic progrdon

3. Derivatives: Limits and continui\) of. function : thaderivative and its intefpretation; the technique of dill ... entiat;·-,, ; economic applications of the d ... ivatives; con vax sel ",d concave 1unctions: maxima and minima.

4. FunctioM 01 twe. voriablos : Partial derivatives; total 10,; vati,e; constrained maximisatIon (minimisation) , Lag' .ng'multipli ... ; applications to theory of the' firm and consum&· behaviour.

READINGS :

1. G.C. Archiblad and R.G. Lipsey : An Introduction to a M.th. · moticel Treatment of Ecunomics (3rd ed.) Chs. 3-11 15

2. R.G.D. Allen. Mathematicol Ana/y.,'s for Economist • . Chs. 3, 5. 6, 8. Ii. 12, 14.

3. A.C. Chiang, Fundamental Method. of Mothemoticel EconomIc. (2nd adn.) , CIIa. 2.4,5,6,7,9, and 12 .

10

4. W.J. Saumol. Economic Theory .nd Operetiona ArNlylis Chs. 2 4

PAPER IX - Public FIMnce (With SpecIal Reference to India) 50 Marks

1 . FIscal functIons In a developing economy: provision of social goods

2.

3.

B

C.

4.

Government budgetIng. Types of Government budget accOUIlts-revenue and capital accounts. Economic and functional ~Iass l flcatlon of the Central Government Budget: rationale behind such classIfications. method of deriving significant economic magnitudes.

Public receIpts. (A) Tax2110n-equ ,ty CIItel/on Incidence of Indirect taxes; efficiency criterion . Features and evaluation of the tax ",ructure . tax evasion FeasIbIlity ofVetueAdded Tex III India TaxatIon of agriCulture III India

Public uv. rowings Sources. the Instruments of Government

borrOWIngs In IndIa (Short-term and long-term). relative Importance

Deficit FinanCing

India EConomic MEhln ing and trends In defiCit finanCing In

effects of defiCIt financing .

Public expenditure F~~:tors Influencing public expenditure.

Wagner·s law and the Peacock-Wiseman hypothesis Trends in the level and composition of public expenditure In· India. Growth in subsidIes

5 Fiscal federa!i!;m Constitutional ~rovislOn In India Flnchnys

and recommendations of the latest Finance Commission.

"lEADINGS

1. R.A. Musgrave and P.B. Musgrave. Public F/,'.nce III Theory and Practice (Third edition . 1980). Chapters 1. 3. (pp. 54-61). 7 (pp. 139-159) . 10. 11. 12. (pp 256-262) . 13.14. (pp. 301 -313. 321 ·323). 24.

2. Raja J . Chelliah. Fiscal Policy In Underdeveloped Count"es (Second edition) Chapters2 (pp 38 -51) . 3 (pp. 54-66. 85 .90) .

3. Government of India. Ministry of Finance. An Economic-cumFunctional CI.ssI1ic.tion of the Centr.1 Government qudget. 1966-67 (introduction only) Ind It ... t (for analytical .speelS onlV)

1 1

4. Government of India. MInistry of Finance. Explen.rory Memorandum on the Budget of Centr.1 Gover"ment (Latest

available) . 5 Government of India. Ministry of Finance Report of the

Indirect Tustion Enquiry Committee (L K. Jha Committee) Part I (Sectior,s2. 3.4. and 1 2) and Part I t (Chs 1. 17. and 1 S) .

6.

7.

S.

9_

10.

11 .

12.

13.

14.

Ved P. Gandhi. Some Aspect of Ind •• ·s Tax SClucrure

K. N. Raj. " Direct Taxation of Agriculture .. · l"d,M Economic Reyiew. Vol. VIII 1'<0. 1. (New Serias) . Ap,,1 1973

S.B. Gupta. Moneury PI.nning forlnd, • • Ch. 6. (pp 111 -1 17)

Report of the tatest FInance CommissIon .

Government of IndIa. Report of the Committee on Controls and Subsidies (Vadilal Dagli Committee). May 1979. Ch. 2 (pp. 29-32) . " (pp. 114-27)

G. Thimmiah. Burdens of Union Loans on the St.tes. Chlpters

1.2 and 3.

V.B. Chuge. Burdens and Benefits of India's N.tional Oebt

(1977). Chapter 1 (pp. 1 -16)

Government of India. Ministry of Flnanco. Fin~1 Report of the Direct Taxes Enquiry Committee (K.N. Wanchoo Committee) . December 1971 (pp. 4- 18)

D.N. Dwiv8di ed. Reading' In Indi.n Public Finance. Reed·

ings 1. 2. 9. 11.

PAPER X-Compar.tive Economic Development 50 Marks (with referen·ce to selected countries · UK 1760-1914 Japan 1861-1939; U.S.S.R 1917-1950)

1. Economic Growth and development . meanIng and measure ment. rete and time pattern of mod",n economic growth. major features of sttuctural change and the" Inter- relations- · labour productivity. capItal formation. ou .put. consumpt,on

income and distribution of income

2 Comparative study of historical patterns of development. (i) Agrarian change and rote cf agriculture In the economic

development of U.K. Japan. and U.S.S.R. (ii) Industrial Rove-Iutlon In U.K.-comparative study of the

rate and pattern of industrialisation in U.K. Jep.n and

u.ss R

11 J Role of the St.t. in diff",.nt -onoml'c y t ~ S • ems-a atud)

of the thre. selected countrie • .

tlEAOINGS :

1 .

2.

3 .

4 .

5. 6.

7 .

8.

S. Kuznets. Modern Economic Growth .' Rete Structur. end Spre.d (1966)

C. Cippolla (ed .~ FontMe Economic History of Europe. Vol. " Pt . I. Ch 3.

Peter Mathias. The Fir,t Indu'triel Netion.

A. No,e. An Economic Hi,tory of the U.S.S.R. ('969). Ch. 4 -8.

Cobb. Soviet Economic Development .ince (1977) Chs. 8-11 . W.W. Lockwood (ed.) The Stete end Economic Enterpri,. in

. Japen (1966) Chs. 1. 2.

E.J . Hobsbawm. Indu.uy and Empire. ChI. 1-10, 12.

W. W. Lockwood, The Economic De"e/opment of Jepen Ch. 10. '

PAPER XI-Econo,!"i~ System.. 100 Me"; 1. The notion of an economiC system. Marx's concept ~ •

mode of production and its use in defining svstems. Thl "Ietl~n between economic and other a.peete of e lDcie,y Marx s theory of social change.

2 . Charact.ristic fNtures, of a capitalist economy Th87accumu 18tlon process and techn ical change. Instabihty .and cr. The rol' ofth. State. Capi a~sm and Planning.

The growth of monopoly and its implications for &COnom functioning . Modern capitalism and coprorations. In p.ri.hsm and the role of multinationals

Long run development und.r capitalisM : theoretic approaches and the historical record .

3. Classical ideas and the functioning of a soclialist econom_ the historical problems of socialism in a backWard econOf' the peasantry, industrialisation and prim itiv~ accnmulatic

Planni~g in ,theOry and practice : the role of planning ; pOSSibility o. rOllonal calculation In a socialist economy, Lang.- I~rner solution and its relevance: le~lIls of decisi· making and the question of centralisation \15. decentral tion; pattern. of investment and choice of techniquea,

' first law of SOCialist accumulation . Elements ~of economic and Institutional structure in the USSR end Ea.tern Europe and planning methods. Problema in industry and egricul

ture and the question of &Con omic reforms .

Issues in the Chinese development experience witl> special

emphasis on communes and 1&.'ral industrialisation

~EADINGS : Gregory GrOAffian . Economic Sy.tems (Revised

Cha. l & 2 . '''".) ! 1.

2 .

3 .

O.kar L.nge. Politic. I Economy. Vol. I Chs. 1 and 2-Maurice Cobb. On EconomiC Theory and Soci.lism, Chs. III.

C Ind XV . 4 . J .A. Schumpeter. C.p.I.li.m. Socieli.m and DemocTlcy.

Chao II, VI-VIII. 5. K. Mitx and F. Engels, M.nfe.to of the Communist P.rty.

Sections land II. 6. Lionel Robbins. ' Individual Action in the Environment of

capitalism', in W.A. Leeman,(ed .)Capit'lism M.rket Socieli6m .nd C.ntf.1 PI.nning, R.adings in Comp.rativ. ; Economic

Sy.tems. 7. J .K. Galbraith, Th. New Indu.tri.1 Stare, Chs . 2-7 .

8 . R. Blackburn, The New Capitalism. in Blackburn, ed . IdeologY

in SOCI" Science. 9. M . Kalecki. 'Political ASl'ects 01 Full Employment' in E.K.

Hunt and J .G. schwartz. leds.) A Critique of Economic Theory. (Also in M . Kalecki . The Losl PII ••• in tlie Tr.Mformation 01

C,p/ralism). 10. J .O. Connor , 'The M eaning of Economic Imperil' ltsm ' in A.I

Rhodes ed . Impemlism .nd Underdevelopmenr A Re.de. 11 . P.A. Baran The Polltic.1 Economy of Growth. ~hS 3 and 4

, 2 . N Kaldor. 'Capital5t Eva luat ion 10 tho light of Keynesia Economics '. In Koldor Essoys on Economic St.bility an

Growth 13. R.G. Edwards. Michael Reich and Thomas E. Welsskopf. ed!

The Cepitalrst system. A Radical Analysis of Am.,ican Soci.t

(Second edition , 1978) . Ch. 12.1. Ch . 4.3, 10.6.

14.

15.

16.

17. 18.

19

20. 21.

22.

23.

14

A, 1V0ve and D.M. Nuti. (eds,). Soci.list Economics. Chao , & 6

Oskar Lange.(ed.)P,obl"ms of Politic.1 Economy of Soci./i,m Chs. 1 -3. (Alia in Lange. Pllp.r. in Economic, .nd Socio logy 1930-1 960. liP. 20-45. 85 -114) .

Oskar Lange. 'On the Economic Theory of Socialism '. (Section I ·V). In O. lange and F.M. Taylor. On the Economic Th.ory of Socialism.

W. Brus. The Economics and Politics of Soci.li"". Ch • . 1 & II. A Nova. The Sovi.t Economic Systam. Chs. 2. 4-6.

p~t"r Nolan. "Collectivization in China: Some Compariaio", With the USSR'. Journal of P .... nt Studia&. January 1978. (Vol. 3. No. 2).

J .G. Gurley. Chin.·s Economy .nd the Maoist Stratagy Ch.4. A. Eckstein; Chine's Economic R.volution. 1977 Ohl. 2 and 8 .

M. Lavigne. The Economics of USSR and Ealtern EuroH 1974. Chs. 1 ·4.

S. Hymer. 'The MUltinational Corporation and the Law ot Uneven Oevelopment' in H. Radice,(<<I.)/ntarn.tionaIFirma.nd Modern Imperielism (Also in J. Bhagwati;(ed .)Economica .nd World Order from the 1970s to tha 19906) .

PAPER XII : Dava/opment Problems and Policy

100 mlli!r. 1. ECOnomic Dava/opmant : Gan.ral Par",.ctiv.

Common characteristics of undetdavelopment.· Conceptand scopt of econOrr)lc development. Economic growth in historical perapectiva lassons for 1111. developed countries. Racent qU8!1ioning of the GNf growth orlentat.on and issues r.lated to income distribution and poverty ObJective. and dilemmas ol.conomic polley.

2. Capital Accumulation. EmployJ.ant Md International Trad. in Economic Developmanl .

Capital accumulation-rate and palletn of ,nvlllunent; level and structure of aggregate damand; mobilisation of intemal and axternal rMOUrc. forlinancing investment; the management factor and concept of X·efficiency.

Employment problems of IIloS' ..1evel"I>ed countllilS -c.ho. ',ct~, •• 'Ictof emplo\ mentand unemploYI'"1mt; ISSUes In omplovrnent POliCY, t11' -rel&tiollship betwBsfI output 8~,d employment ODjectivt.":.. crolce

.1 .pi!11 intons.~; 8~i!i formation. tachl1o'ogy cnolca uS a package;

.. npl"yment and otht>r implications 01 technology c~olce. Problems olan open e<:nn"mytne role of I~t .. rna!ional trade In the

••• owth proc_; problems and policies related to internat.onal trado in

I de""looAG countries.

Gen.,.1 PolicY luues.' limitations of the price mechanism aod casafor economiC planning;

lui. of the stata and p"vate sector" a ",ixed economy; the p~bll~ ~,"'1"t lI.n instrument for tlOlicy Int6fvor}tlon "I' dn'/e\oping countries; lsau .. I public uctor pricing.

Choice of project, from a soc.al po m 0 1 viaw and social cost

h.n.fit ana lysiS.

" COMMlONDED READINGS: 1 Getald M . Meier. Leadmg Issues in EconomiC Davelopmenl

Third Edition. 1976. IA. lB. 1.2.3. IC 2; IIA. 1.2 IIIB. 1110; IVA. IvB. 2. IVO. , .2; VA. 1.4. AB; VIA. 3.5. VIC. 1.3. VI D. ,. 2; VII A. VII B. 2.3. VII C 2.3, (Except pp 463-5); VIIiC. 1.2.

2 Michael P. Todaro. Economic Development in the Third

World". 1979. Chapters 4. 5. 8. 13 and 14. 3. A.P . Thirlwail. Growth arr·f Devclopm~r.! with special feferance

to developing economies. Second lXIition. 19711. ChaptetS

4.7 4 H. Myint. Th.' Economics of d.ve/Ol'ing CellinI"''' : 4th

edition. , 974. Chapters 1.5.6.7.B.1 0

5. H.W. Singer. " Poverty. Income Distribution and levels of of living; Thirty year5 of changing thought on Develop· mer.! problems" in C. H. H. Rao and P.O .. Joshi (eds.). Reflactions 0/1 Economic Devdlopment and Soci.1 Change Essays in honour ofV.K.R.V. Rao. 1973. Chapters 3. pp 29-40.

6 S. Kuznets. Economic Growth and Structure. 1965. Cnapt""'

6. 6. pp. , 76-212. 7. Kaith B. Griffin ana John En os PlanninglJevalopmant. 1970.

Chapter 3.

16

8. H. Myint. Economic Theory and the Countries. 19'11 • Chapter 13.

9. Frances Stewart Technology end Underdevelopment. Chapters 1 .2.

10. Frances Stewart and Peul Str .. tan . "Conflicts Output and Employment Objectives" in Richard Jolly (eds.) Third World Employment. Penguin. 1973. R.ading Excerpts roprinted in Reading No. 1 above.

11 . T. Scitovsky Two Concepts of External EconOmies' in Aggarwal. and S.P. Singh (eds) . The economic, of development. 295 -308.

12. H. Leibenstein "Allocative Efficiency V • . Americlln economic Review. June. 1966. pp. 392-41 5 .

13. B.S. Minhas. " The Current Development Debate" in a New Stratbgy for Development. A Rothko Chapel Quium, (1979). Ch. 3.

14 Her' y Bernstein (ed.). Underdevelopment and D"ve.""", (Penguin. 1973). pp. 33 -38 (article byC Furtado) .

15. K.N. Raj. " Trends in Rural Unemployment in India AnalYSis with Reference to Conceptual and Problems:' Economics IIrrd PoliticlIl Weekly, No, (Special Number) . 1976. Section's I and II. pp. 1281-1

16. A.K. Sen. Choice of Technique,. 3rd ed. (1972). Ch

17. H.T. Keplin . Micro-economic Analysis: Well.,. clerrcy in Private and Public Sectors. 1971 . Chapter's 17,

18. Richard Leyard; : Cost Benefit A'IlIlysi" Penguin . 1 Introduction. pp 9-59

,PER XII : The Indian Economy Sincelnd'pendence

Major leatures 01 the Indian economy at Independence, 01 planned developmentand role of the state.

( ,) Institutional Iramework : Patterns of as:5.t - o,,,",0NI~

agriculture and industry; Policies for restucturing relations and lor regulating concentration of powers

(Ii) Oemographic constrains : Interaction between ohanQe and economic development

17 .. (111) Resources . ProD,ems and instruments of moblliSattoll Of

Internal resour.ces for the public sector; external resources.

Ii) Agriculture: Share of agriculture ,n nat,onal income and work force. Factors influencing productivity 'n agriculture : rola of tochnology. institutional lactors. Pattern of owner ship end land reform (such ~ .; the size dlStr ibut,on ,,' land an" access to "riliation, credi t and modern inputs) and price policy. Growth of agricultural output : a broad review.

(i,) Industry and Foreign Trede : Constraints on growth allsmy from ' the structu,e of production and foreign trade and th.' strategy of import substitution -based industrialisation . Publ,c sector in India and its rol91n the growth process PoliCies for · ;egulatIOg th~ pattern of inve!!",ent 'n the I'rivate SEctor. Licensing and other direct controls. pollc,os towards thesrnall scale sector. Foreign Capital. The rate and pattern 01

Industrial growth: tmndS .ince1950. The export , ector: ~ .. , formance end polici .... implications for growth ; the bal.nce

of peym"nt • .

(,it) A review of resource allocation ae-ross broad "<lctors : agricultule. industry L~d infrastructure.

(') Growth and Structural Change since 1950 : Rates ofsa": " Y and investment. growth of national income and per cap,ta income. changes in the industrial distribution of natio, ,,· income and work force-all Ind;a and regional contrasts .

(II) Assessment of the growth exparience : Unemployment pov~rty, inequality and inflation ..

DINGS :

Bh.gw.ti and P. Oeaai : Indian Planning/or Indu~tri~"satlon .

"r.m,t Chaudhuri : Indian Economy.

Pram it Chaudhuri (edJ :A,pect,oflndian Economic Dev.'op"'.", Ch. 3.

C.O. Wadhwa (ed.) : Soma ProbllJms of India ', Economic Polic)

(2nd. eel) Chao 1. 14) .

R.H. Ce .. en : India : Population. Economy, Society. Ch. 4.

J.~. Sand ..... (Id.) : Indian Economy-Performance and prospec,

Ch27.

18

7. G.O.I : rhe EconomIc Survey (£6lest Iss~.') .

It. G.O I. . DI8ft Sixth FIve Yeer Plall (Revllea) 1978-83, Oh. 1

9. G.O.I. · SIXth F/ve Ye" Plan 1980-85. Ch 1,5,6, 12 and 13.

10. G.O.1. : Nation.1 Accounls Stal/stlcs (Latest)

11. V.R. Penchamukhl : pade Policies ot India. Ch 2,3 and appendix

12. M.L. DJntwSla . Understanding Povelty and Unemployment, Indian M .. rchants Chamber Brochur •. 1980.

13. Hobsbawn (ed) ; Peasant. IfI HistolY Ch .. II. by V.S Vves, ell

pp. 781 -786.

14. V.M. Dendekar and N. Rath : Poverty In India. Indian Schoo~ol Political Economy (1971). Oh. lV, V.

16. C.H Hanumantha Rao: Technologica/Changeand Distribution Glans in Indien Agricu/ture Chs. 15. 16.

16. Deepak Nayyar : Ind.','n 's exPOlt PoliCies ir. th.1970·s . CS.l1b.rldfi University Pres.~ (197';). Ohs 13 and 14.

17. S.I:! . Gupta; Mon.til!\' Plennlng fOllndia. pp. 16-22,41 -43.

18. P.K. Bssu and A Nove (eds).; Public enterprise Policy onlnveJ.,m. Pricing and Returns (1980). pp. 261 -318.

19 C.T. Kurien ; "SmQII,Sector in New Indust"al Policy". end Political Weekly. (EPW), March, 4, I 978.

20. Raj Krishna; "Interstate Disparities In Economic Development" GL Mehta, Memo".1 Lectures, liT, Bombay 1980.

21. V.K.R.V. Rao ' C.N. Vakil endowment LecturOll, lEG, S",ies. , 22. B. Sive;emen . "Scienti"c agriculture in neutral to scale: the

and the remedy", Journal of the Indian Society of A II ric,," Stratistlcsl973.

23. A Vaidyanathan ; ';Performance and Prospects 01 CroP Prcdw" ,,, !ndia", EPW, Sp\. No_AugustI977.

24. M.l, Dantwale: "Futureoflnatltutional Reform and T .. ~hnlolc. Change in Indian Agriculture Development. EPW, Spl. Ague'lt 1978.

19

26. M.L. Dantwala' "Incentiv ... nd Disincentlvesin Indian Agrioulture Indian Journal '01 Allricu'tur.' economict~c. April-June 1987

28. P.S. Appu : "Tenancyrelorm" ePW, Sp\. No. Auguat' 976.-

27. 8. Dutta : "lntersector.1 Disptlities and Income Distribution in Indi,: 1960-61-1973-74", Indian Economic Reviaw April

June 1380.

28. V. P."dit. An Analysis ollnllallon on Illdll : 1950-1975), Indian economic Review, October 1978, pp 89-99.

29. K.S, Krlahnaswamy, . 'Thoughts on Inflation and Oiltribution", Indian economic Journal, October-Dec . 1976.

30. V.V. D .. ,i,: "Pursuit of Induttrial Sell-luf!ioiPnoy" Economic .nd PoWc11 Weekly, May, 1, 1971

31. I.G. Pa .. I, : "Coromandel Lectur .. , M.m.tre.m. Dec. 27, 1980.

32. A, Rudra : "Or"anisation of Agriculture for Rural Oevelopment :

The Indian _", Cambli dge Journal, af leanom;", Vol. 21, No.4, (oecemIMr1978), pp. 381-406.

33. G. Parth ... ramy : "lInd Relorm and the Changing Agrarian

Structure" in C.H. Shih (eel.) ; Agliculturel Development of India

PDllc/., and Probl,m. (1979).

o UP.--410-7-98-3OO+SO

35 Copy rlglr, _rd c9 - ~~\

UNIVERSITY OF DELHI .

SCHEMB OF EXAMlNATION

AND

COIJRSES OF READING

FOR

B. A. (HONSe) BXAMINATION IN ECONOMICS

Part-I Examination 2002

Part-II Eumination 2003

Part-Ill Examination 2004

y/lab • . applicable for sludeals seeking admission 10 ,~ "A (Hotrt), i!conomic. Course in Ihe "C8demic year 2001.2002

. , Price : 20.00

UNIVERSITY OF DELHI



"'rt I Enmination ' 1999

Pape, . I-Micoo tconomict I

Paper . II-Economic HiatolY of India (1857-1947)

Papa, . III-Statistical Mathod. fo, Economics

Pape, : IV-NationellnCf\me Accounting

",rt /I EXlmjn.tion 2000

Mu Duration M,rk. Hours

50 2-

50 2

50 2-

50 2

Pap.r : V-Micro Economics II 50 2

Paper: VI-Mloro Economic. 110 2-

Paper: VII-Money and the Financlal-Sy.tem· 50 2

Paper : VIII-Math"",atic.1 Methoda for Ec:onomlcs 10 2.

",rt 1/1 Examination 200 1

Papar : IX-Public "Inanee 50 2

Paper : X-Comparative Economic Development 50 2

Paper : XI-Economic Systems 1 00 3

Paper : XII-Development PPoblems and Policy 100 3

Paoer : XIII-Ind ian Economy since Independence 100 3

NOTES:

1. In many papers (such as VII. IX. XII. XIII above) . the read ings suggested may be suitably revised Irom time to time in the light of the availiability of new reading material ;

2. Wherever periodic publications. such as the Economic Survey. Report of Finane. Commi~ion. have been recommended as readings. the latest issues available at the beginning of an academic \ear wi" serva as the readings in Question .

~ I

. -

2

DETAILED COURSES Of READING

PAPER I . Micro·Economics·/ 50 Marks

1. /ntroduction : Basic problems 01 an economy. construction

and verHication 01 9C0I1OITIic theories; notions 01 equilibrium

and dis ·equ~ibrium, market demand, market supply and


2. Theory 01 Consumer's Behaviour : Marshallian analysis;

in-difference curve approach; revealed preference .theory .

the raw of demand; eIasIicIy 01 demand.

3. Theory 01 Production : Factors 01 production; production

functions ; production possibHity curves ; cost curves;

supply functions; elasticity 01 supply.

4. Theory 01 Firm and the Marleet Structure :

Prof~ maximisation objective 01 the firm

(a) Perfect compelkion : equilibrium oIthefirm; supply curve and the equilibrium of the industry; market adjustmenl

process and the IIIIbIIIy 01 equI4brium.

(b) Imperfect competition : IqUIIbrium under monopoly.

price discrimklation; monopIiIIIc compet~ion ; oligopoly;

Cournot 's solulion. Idnked demand curve.

OPTIONAL READINGS:

1. W.J. Baumol.Economic TheoryandOperationAria/ysis. 4Ih

ed~ion, 1978, Ghll'.-'5. 16.

2. A. Koutsoylannia, Modem Micro EconoMics. 2nd edition.

Chs 2 (Sees. I and "'. 3 (Sees. I,ll and IV) . 4 (Secs. I, II, 1111.

5·9.

3

PAPEfI II : Economic HllttN'l 01 India 1857·1947 50 Marks

1. Gene,.1 h;'tory of the period' 857·' 947. Institutional deve· lopmen": ihe relationahip between the Britiah Government, the Government of India and the provine ...

2. The . ocial .nd economic structure of India in 1857.

3. Main trends in the econe "Y , 857·1947 : Population. labour force, netion.1 income. forel\J~ trade and peyment; growth of the modern sector.

4. Agrari.n Rel.tions, TNftds in output and productivity of ~r icultur. and per c:.pit. food .v.ilability. Government policy towards egriculture. irrigation. famines and rural credit.

5. The char>ging structure of modern industry : role of dom .. tie and foreign e,llerpri ..... d government f.olicy. Tne emer· gence of a modern lebo<lrforce and thegroNth oltrade union,.

6. The coloni.1 imp.;t and domestic responses: an assessment. Fisc,land trade polic;. : the debale between government and its critics .

Regarding topic 3 • gener.1 f.miliarity with br':lJd trends is e."ectecl ; the .tudent w~1 not be expected to memOoize figur •.

Regarding topic 5, • detailed :.tudy of individual industri .. ia not elllMCt«I.

RfADINGS : • 1. Sumil lark. : Mot/am India. Chs. 1.2 (Part 1),3.4,5,6,7.

2. V.I. SingII (ed): Economic Hi~ory of India. 1857·195f. ChIPW ~ T.N. Med ...

J . ' ,11. T_if on : "India and 1M Irititih Empire. 18BO.1931". Indian C_._ ."d Socilll HI'tory Rev'-, Vol XII. 117'5

4 II';" Ray : In~in IMM.! 914·1947, Chi. 1.2,4 and 5.

5, C.J, 0-.. and K.N, Ctlaudhuri (ed,). E~ and SOeMly E .... Itt ItttIIM E_mIt: Md Socilll HIMNr, Ch. 10 .

.. . a.N..... .: Ind/e', ~, Prot,.,.", 011. 4.

4

7. G. Slyn : Agricultur.1 TrMd. In Indi. :eOutput. Av."abHity Avail.bility and Producllvlty. Chao ChI . 1. 9.

8. S S,vasubramoniam : National Income of India. 1900-01 to 1946-47 (Ph.D. thesis mimeo). last chapter.

9. H V.rikatasubbiln : Foriaign Trade of India. 1900-1946. PI. II.

1 (J . n R. Gadgil : Thelndu,trial Evolution of IrnJil in Recent Time,. 1860-1939. (1971). Chs. II. V. VII . IX(2). XI XV XX.

1 1 . A J. Youngson (ed.1 . Economic tJavelopmlnt in the Long Run. paper by Macph.,..on.

PAPER III : StBti'ticII Method, for Economic, 50 Marka

1. Univ.flatelrequ.ncy dinributionl : Measur. of location; the Ilrst four moments; measur .. of dispe<sion. sk_ne&l Ind kunosis.

2. Bivari.t" frequency di,tribution, : Correlation; ragr.on

w ith one independent variable; method of loast $qu .... ; simple analy~is of attribute • .

3 Element.ry Prob.bility Theory : Concepts of ""ents Ind probability; addition and multiphcation th90r..". : conditionll probab,lity and independe,ce of ""ents; concept of a random variable; probability distribution; mean and variance of I random variable : binomial and normal distributions ..

4. Sampling: Random sample; concept of sampling distribution; distribution of the sample mll8n; concept of t .. ts of signicance; tests of sig:lif,cance of t~. mean and the regr_ion coefficient (only normal distribution to be used for the discussion of sampling distributior, and t""ts of signilican!)tl).

5. Index Numbers: Concept of an index number ; Laspeyre's and .... asche·s index~. factor ar. index : problems in the cons,

reversal tests; chain base , of index numbers.

6. Time Serie, Ana/y'i' : Objectives; components of a time _i",,; measurement of trend by moving ave<ages; linear and exponential growth curves; measurement of seasonal variation .

6

BASIC READINGS :

1. P.H. Karmaland M. Polasek, Applied Stati,t;c, lor Ecooomi't' (3rd Edn.). Chs. 5.6.7 (socs. 7.1-7.6). 10 (secs.l0.1.10.2.

10.4.) 10.5).11 . 13. .

2. F E. Croxton. D.J. Cowden end S. Klein. Applied Gener.1 Sr.ri.tic, (3rd Edn.). Chs. " . 12 (pp. 230-243) . 13 (pp. 256-

267). 14. 17·19. 24 (pp. 537 -551) .

3 A L. Nagar end RX Das. B.,ic SI.li'tices.

4. M .R. Spiegel. Stoti,lies.

PAPER IV - N.rionlll Income Accounting 50 M.rk.s

The Production Process in a mode<n economy-relationship between stock.s and flows. Gene<ation of value added and factor incomes by a production unit and an economy-an elementary discussion of the input-output transactions matrix.

2. luue, In Ihe Concept of Nlltionll' Income : Concepts of Production ; d,stinction between intermediate and final products including treatment of government; concept and treatment of

depreciation .

3. MlIlI,urement 01 /11l1lion.'Ir.come : Various ways of looking at National Income; production. income distribut!on and d,sposition ; an outline of the three methods of measuring national income; estimation of national income in India; a general discussion of the methods and difficulti"".

4. NBtionBI Income AggeregBtes: MeaSuring thl! interrelationships.

5. Ule' end Limitalion, 01 N.tionlllincome : Probl~",s of ccmpa'i' sons over tim'. and among nations. National IncolTlo a! an indicator of walfare ; personal and reg,O/'al distribut;cn ; quality of life indices as an alternative.

6. Nalion~' Income Accounl. : Clasification 01 transactors and transactions. use of the double entrY principle i~ the account of a firm and in national income accounts. Elementary notions 01 sources and uses of funds. Consolidated national accounts of India.

7. Nlltion.1 Cllpital : Methods and problems of estirr. .......

8 Salllnce of PByment6 A~eount : Structure and classification.

)

6

READINGS

1. J.R. Hlcka. The Soci., Fr.mework (1971). Chs'. 2.3.8.10.11 12, 13 and lE and Appendix Note C.

2. RuaaeI Mathews. Accountiflg fOI Ecomisu, CIIs. 18, 19. (Sec. I).

3. Wilfred Beckerman, An Introduction to N.tlonel Incom. An.Iy';., Chao 1, 2, 3, 4, 8, 7

4. Paul Studenski,lncome ofN.tior.s, Pert II (1961). Chs. 11,12, (Sec. (1,3) 13,14,f5 (Sec.'), 16 (Sec. p.4) 17 (See. 1),18

'1 (Sec. 40).

5. William I. Abraham, Nstiona/lncomesnd EconomiC Accountmg (1969) Ch. 4)

6. C.S.O. N.tional Account. Stu/ics (Latest Issue)

7. C.S.O. Nation.1 Accounts Statistics: Sources M.thods 1980

8. Richard and GiovannasStone, Nationallncom. and Expenditure (1972). Ch. 6

9. R-.ve Bank of India. India's Be/ance of Payments 1948·49 to 1961-2. Ch. 1 Pages 1-12

PAPER V - Micro Economic-II Marks 50

1. Fector Plicing and D,.tributi"" : Theories of renl-R icard ian and modern theories; <1 .. tefminalion of wages. int",est and profit.

2. G.neral Equilibrium: Concepts of partial and general equili· brium; equilibrium of exchange; Edgeworth box diagram.

3. Lin.el Models: Elementary input-outPut analYSIS; Introduction to linear pragramming and simple applications.

4. W,"a,. EconomiC3 : Pare to optimality; limitations of the Pareto criterion; compensation principle (Kaldor- Hic.ks, ScitOV3ky aiterie); social welfare function; competitive ,equilibrium and Pareto optimality ; market failures.

5. Internalional Tlade: Ricardian • .,d Hecldcher-Ohlin theories; gain froin trede; International trade and factor prices.

BASIC READINGS:

1. R.G. LipseV. An Introduction to POMIV. Economic.. latest edition.

2. P A. Samuelson, EoonomiclI latest edition .

•

7

3. W.J. B.umol, Economic TheOlY end Ope/elionIAn.Iy';', 4th edition, 1978. Oils. 5 (SecI 1-3), 21, 22. 24.

4. C.P. Kindleblger, Internetional Economica, 1973, Chi 1 -4.

5. B. Sodel1lton, Intern.tion.1 EcooomicI, 1971, Part I.

6. A. KOulloviannis, Modern Microeconomics, 2nd edition, Chs. 20 (Secs. I-III), 21 (Sees. 1 A. III), 23 (Sees A-D).

"'PER VI - Mecro Economics 50 Marks

1. The economy as a ,Cllcular' flow' of Income and expenditure.

2. The determination of income and emplovment : determination of the level of income in the short run-aggregate demand: the consumption function, multiplitr process; the invpstment function-marginal efficiency of capital; liquiditV preference and the rate of interest. iNeraction of commodity and money market~.

Determination of employment : Keynesran and neoclas~ical

theories; their limitations whtn a"jOlied to LDCs.

3. Determination of the general level of prices; the Quantity Theory of Money; Inflation-Cost push, demand pull and structural theories.

4. B,lance of payments: Its componer ts; exchange rates; adjustment in cum."t account through price and income changes; capital movement~.

DINGS

1. E. Shapiro, M8cr;"conomic Analysis.

2. B. Soderston. Intem.tional Ecomonics, Chs. 13-16.

3. V.K.R.V. Rao, 'Investment Income and Multiplier in an underdeveloped Economy" The /i,dian Economic Review (Februarv 1952), Reprinted in A.N. Agarwala and S.P. Singh (eds.) The Economics of Underdevelopment. pp. i05-18and V.K.R.V. Rao, Essay's in Economic Development (1964) Ch.3.

" . Milton Friedman, "The Quantity Theory of Monev" reprinted in AA Walters (ad.)" Money and 86f1king, Selected R.edings, (Penguin), pp. 36'-55.

Harry G. Johnson. Ess.ys in Menet.ry Economics (1969), Essay 3, pp. , 04-42.

J

8

'APER VII-Money 8nd tho Fin8nci,1 Syst.m 50

Note: Parts of monetary thoory will be covered in Paper.

1 .

2.

3.

4.

5

H.

7

8

Macro Economics.

Money Funcllons : allernative measures of money supply India-Iheir differenl components; meaning and relallve Imparlance of each in India. High powered meaning and uses, sources of changes In it.

Amy' kin ds of IIiln81n<:. Finance role of finance In an 9,;on . . . fi nancial system; components; fin an cial intermediaries.

and in~trLlments : functions of a'ach .

Commerc,.1 banks imporlance. funcllon . balance sheel of bank ' mean ing and imporlance of Ihe main liabilities assests, Co -operative banking In Ind ia.

The process of cred il creal ion by banks; detelmination money supply and tOlal bank credil. nominal and real.

Development banks and other non ·bank fmancial in . main features ; unregulated crddit markets in India :

features

The Reserve BlInkof India-functions: Instrumenlsofmo~ and cradil control. Main fealures of monetary policy "Ind,a since Independ ence.

Problems and policies of allocation of institutional

(a) b9t,!"een Ihe governmenl and Ihe commercial sector.

(b) 'nler .,etloral and inler.regional. .~nd (c) between small borrowers. Operation of conflicting pressure

and afler Iho nalionalisalion of banks in 1969.

Intere" rales-valious rales in 'lndia (viz . bond rale. bill d"posil rales, etc.) a!lministerad rates a(ld ma

rates ; sources of differences in. rates of ~nt8rest ; ~he. aCt . e>f the average level of rates of Interest slnce1951 -III1P Infl ation and inflationary expectatiohs.

FEADINGS

(Slarred read ings ale recommended. not requi.red) L.V Chandler and S.M. Goldfald, The Economics of and Banking 7th ed 1977 Chs. 1-7. 1 B.

"

g

2. L.V. Chandler, The Manetory Finenci,l System. 1977 Cha, 1 4'5'.12". 13',

3. S.B. Gupta, Monetary Planning for India. 1979, p'!>. 1-6, 44·48,51·62. 103-174, 197.200.

4. M .Y. Khan, Indian Fin.nci.1 System-Th.ory and Practic •• 1980.

5. D.N. Ghosh. B.nking Pnlicy i" Indl.-An Ev.luation, 1979, Chs. 7· 13.

6. R8gerve Bank 01 India. Functions and Working, 1970

7. Banking CommiSSion. Report, Ch. 17

B. S.B . Gupta, Monetary Economics Chs. 1·10. 15.20,

, PER VIII; Mathem.tic.1 Methods for Economics 50 Mark

1. M.tric'$ : ElementaryoperatlonS-Determinants . ~ ornoutation of the inverse matrix : linear simultaneous d:J'Jat! (..r.s.

Cramer's rule for SOlution. (All discussions in terms of matrice. of order 2 and 3.) •

2. Functions : Sets. relations and functions; functions and dia. grams in economic theory; elementary ana!ytical geometry_ straight 'Iine, cirele. parabola. hyperbola and other curves Polynomial, eXPonential, l<>garithmic [ nd trigonometric fun. ctions; geometric ana arithmetic pr<>gr~sion .

3,

4

DeriV/ltives: Limits and continuit\ of a function : the derivative and its interpretation ; the technique of differenliati _,, ;

economic applications of the d9fivatives; convex sel " ,d concave ~unctions; maxima and minima.

Functions of tw" valiables : Partial derivatives; tOlal 10,; vati{e; constrained maximisation (minimisation), Lag ' .npc multiplier; applications to theory of the firm and consum ... behaviour.

G.C. Archiblad and R.G. Lipsey ; An Introduction to e M'th • . matical Treatment of EClHlomics (3rd ad.) Chs. 3.11 , 15

R.G.D. Allen. Mathematical AnalYSis for Economists, Chs. 3, 5, 6. 8. 11, 12. 14.

A.C. Chiang. Fundamental MethOds of M.thematic,1 Eco. nomics (2nd adn.). Chs. 2.4.5,6.7.9. and 12.

• 10

4 . W.J. Baumol. Economic TheolY .nd Ope/etionl Chs. 2 4

PAPER IX - Public Fm.nce (With Special Reference to India) ;;0

1. Fiscal functions In a developing economy: provision of

J goods

2. Government budgellng Types of Government dCCouilts-revenue and capital accounts. Economic functional classification of the Central Government rationale behind such classifications. method 01 signtficant economic magnitudes .

3 Public recc'pts. (A) Taxat,on.equ,ty criterion . Indirect taX8$; efficiency cnterlon . Features and eVi"U."'~ the tax structure . tax evasion . Feasibility olValueAdded In India. Taxation of agriculture In India

B Publ,c lIv.rowings Sources. the instruments 01 Ga.vernrlll borrowings In India (Short · term and long·t",m). importance.

C Dehcit FinanCing . Meaning and trends In dehclt hnan,elfll India Economic effects of deficit financing .

4. Public expend,ture. F~'tors InfluenCing public eXI"'f1ldll Wagner's law and the Peacock · Wiseman hypothesis the level and composltiof1 01 public expenditure In' Growth in subsidies.

5 Fiscal federali5m Constitutional f,frovislon '" India and recommend8t1oos of the latest Finance

~EADINGS

1. A.A. Musgrave and P.B. Musgrave, Public Flllanca In

and PracticB (Third edition. 1980). Chapt",s 1. 3. (pp. 54 7 (pp . 139·159). 10. 11. 12. (pp. 256·262) . 13.14. 301·313. 321 ·323). 24.

2. Aaja J . Chelliah. Fiscal Policy In Underdeveloped (Secondedition) Chapters2 (pp 38·51).3 (pp. 54·68.

3. Government of India. Mini.try of Finence. An ~c'.n<.n""H Function.1 Clauific.tion of the Centr.1 GovernmMt 1966·67 (introduction ooly) and If "t (for analytiul ooly)

11

4 . Government of India. Ministry of Finance. Explanetory Memo· randum on the Budget of Centr.1 Govelnment (La'est .vailable) .

5 Government of India. Ministry of Finance Report of the Indirect TUlltion Enquiry Committee (L K Jha Committee) Part I (Sectio"s 2. 3. 4. and 12) and Parlll (Chs. 1. 17. and 18) .

6. Ved P. Gandhi. Some Aspect of India's TIX StruclU'e

7. K. N. Raj. " Direct Taxation of Agriculture:' Indian Economic

Review. Vol. VIII. No. 1. (New Series) . April 1973

8. S.B. Gupta. Monetary PI.nningfotlndi • • Ch. 6. (pp 111·117)

9. Report of the latest Finance Commiss!oo.

10. Government of India. Report of the Committee on Controls and Subsidies (Vadilal Oagli Committee). May 1979. Ch. 2 (pp. 29·32). II (pp. 114·27)

11 . G. Thimmiah. Burdens of Union Lo.". on the States. Ch.pters 1.2 and 3.

12. V.B. Chug • • Burdens lind Ben.fi,s of Indill'S Na,ion.' Debt (1977) . Ch.pter 1 (pp. 1 ·16)

13. Government of India. Mini&try 01 Finance. Final Report of the Dir.et TUtls Ellquiry Committ •• (K .N. Wanchoo Committee) . December 1971 (pp. 4·18)

14. D.N. Dwivlldi lid. Re.ding. in Indilln PubliC Finllnt,. Reed · ings 1. 2. 9. 11.

~APEA X-Comparative EconomiC Deve/op"",nl 50 Marks (with refarence to select.d countri .. : UK 1760·1914 Japan 1861·1939; U.S.S.R. 1917·1950)

1. Economic Growth lind dev.lopment : meaning .nd measure ment. rate and time p.tt",n of modern ecooomic growth . m.jor features of sltuctural ch.ng •• nd their Inter · relation.labour productivity. capital lorm.tion. ou .put. consumption income and distribution of i~ome

2. Comparative .tudy of historical pat..,ns of dev.lopmenl. (i) Agrarian Chang. and role C'f agriculture In the economic

development of U .K. Jap.n. and U.S.S.R. (Ii) Industrial AevC'lutlOn in U.K.-comparative study of the

r.te lind pattern of industri.lisation in U. K • JaPlln .nd U.S.S R

J 11

Role of the State in different economic of the three selected countries.

flEADINGS :

1. S. KUlnets, Modern Economic Growth : R.te Structure SplOBd (1966)

2. C. Cippolla (ed .~ Fonton. Economic History of"Europtl, Vol, Pt. I, Ch 3.

3. Peter Mathias, The First IndustriBI N.tion.

4. A. No.e, An Economic History of the U.S.S.R. 4-8.

5. Dobb, Soviet Economic Development since (1977) Chs. 8-1 6. W.W . Lockwood (ed .) The St.te .nd Economic Enterprise

J.pen (1966) Chs. 1, 2.

7. E.J . Hobsbawm, Industry end Empire Chs. 1-10,12.

8. W . W . Lockwood, The Economic Development of Ch_ 10.

PAPER XI-Economic Systems 1 . The notion of an economic aystem .

mode of production and its use in defining systems. relation between economic and other aspects of a Marx's theory of social change.

2. Characteristic features, of a capitalist economy. lation process and technical change. Instability The role of the State. Capi alism and Planning .

The growth oi monopoly and its implications for functioning . Modern capitalism and coprorations . perialism and the role of multinationals.

Long run development under capitalism : approaches and the historical record .

3. Classical ideas and the functioning of a soclia!ist the historical p(oblems of socialism in a backward the peasantry, industrialisation and primitiv" accnmulatic

Planning in theory and practice : the role of planning; possibility of rational calculation in a socialist economy, Lang.-Iernar solution and its relevance; le~els of ·decis. making :nd the question of centralisation "'S. decentr.1 tion ~ patterns of investment and choice of techn iqu ...

'first law of socialist accumulation . Elements of economic and institutional structure in the USSR and Easlern Europe and planning methods. Problems in industry and egriculture and the question of economic reforms .

l&Suas in the Chinese development experience with special emphasis On communes and r~ral industrialisation.

"DINGS:

1. Gregpry GrOAman : Economic Syst.ms (Revised Edition)

O"s. 1 & 2.

2. Dshr hnge, Political Economy. Vol . I Chs. 1 and i a. Maurice Dobb. On Economic Theory and Socialism, Chs. III.

C and XV .

4. J.A. Schumpeter. C.p.,.lism. Soci.lism .nd Democrllcy. Chi. II, VI-VIII .

5. K. Marx and F. Engels, M.nftlSIO oflhe Communisl p.rty, Sections I and II .

6. Lionel Robbins, ' Individual Action in the Environment of Capitalism', in W.A . Leeman,{ed.)C.pit.lism Market Soci.lism .nd Centrlll Planning, Re.dings in Comperative Economic Systems.

7. J.K. Galbraith. The New Industri., State. Chs. 2- 7.

8. R. 8lackburn. The New Capitalism. in Blackburn. ed. Ideology in Socl.' Science.

9

10

1 1 •

12

13

M. Kalecki. 'Political As~ects of Full Employment' in E.K. _ Huntand J .G. Schwa.tz.leds.)A Critique 01 Economic Theory. (Also in M . Kalecki. The LBst Phue in the Transform.lion 01 C,pltalism) .

J .O. Connor. 'The Meaning of Economic Imperialism' in R.I Rhodes ed. Imperi.lism and Underdevelopment. A Reade. P.A . Baran. The Politic.1 Economy of Growth, Chs. 3 and 4

• N Kaldor. 'Capital st Evaluation on the Light of Keynesia Economics', in Keldo. . Essays on Economic Stability an

Growth .

R.G. Edwards. Michael Reich and Thomas E. Weisskopf. ed. The Capit.list Sy$.tem. A Radical Analysis of American Soci.t (Second edition, 1978) , Ch. 12.1 . Ch . 4.3, 10.6.

14

14. A. Nove and D.M . Nuti, (eds.), Soci.list Economic&, Cha. 1

15 . Oskar Lange,(ed .)Problems of Politicel Economy ofSo.cieAl Chs. 1-3. (Also in Lange, Pep." in Economic, end logy 1 930-1 960, pp. 20·45, 85 -114) .

16. OskarLange, 'On the EconomicTheoryofSocialism', I.V). in O. lange and F.M. Taylor, On the Economic

of Socialism.

17. W. 8rus, The Economicund Politics of Socielism, Chs. 1 18. A Nove. The Soviet Economic Syl/em. Chs. 2, 4-6.

19 Peter Nolan , "Collectivization in China: Some with the USSR', Journol of P •• nnt Studie&. January (Vol. 3, No. 2) .

20. J .G. Gurley, China's Economy .nd the Meoin S".tll(/Y 21 . A. Eckstein : China's Economic Rllvolution, 1977

and 8. 22. M. lavigne, The Economics of USSR lind Esstern

1974, Chs. 1 ·4.

23. S . Hymer, 'The MUltinational Corpor.tion Uneven Development' in H. Radice,(ed.) 117te,rnetio/7elFifllll Modern Imperiolism (Also in J . Bh,agwati;(ed.)E(:on'onlitll World Ordor from the 1970s to the 1990s) .

PAPER XII : Development Problems .nd Policy

1. Economic D.ve/opment .- Generel Perspective

Common characteristics of underdevelopment. ' Ooncept of economic development. Economic growth in historical Pel." lessons for less developed countries. Recent que,tioning of tM growth orientation and issues rlliated to income distribution and Objectives and dilemmas of .conomic policy.

2. Capital Accumulation, EmplOyJ,ent and Intern.Nonsl Trsde in Economic Develo;,menl .

Capital accumulation-rate and pattern of ,nvestment; structure of aggregate demand; mobilisation of internal and resources for financing investment; the manag8lffient factor and of X·efficiency.

flnllll~t )If''''. of ... developedcoun1ria-charact", ~of_p~un_ul\ .. ~t;;.au. in employment policy, .... rd I' lip..... Iii: _ut ... 111 -"P'oym..,t objectiv.; choioe of ........ 'ntImIltyl IIdII formation; MChnology choice .. a plCkllle; ''''0 "'*'t,and otIMr ~icallool' of -"lIology cfloioe,

....bl_ofenOl*t_omyth.roleofintec'nan .. tred.in tile ..... h"" 1 ;proI!IMM.ndpoilclelr., .... to int8mMioMl tred. ill _de, 1."_triIL 3. fl., • ., "-IIq I .. ~

UAtI .... , .. of .... .,.-IIMICII .. .,.8IWII_ .... I I71lopllnn"; role of."""" en4)IfiVate HCIDr In 1mb_ -V; "publio I8CW .... m.um.ntfetpolloy intlllMlntion in developlnt ....... ; ...... In puIIIIO .... PiW"".

0IIaI0e of ~ from I lOCial point of Yif!w .... __ I _

MMIlt .......

ftlCOUME'NDED READINGS:

f. G.ald M. Meier. L_din, lUll .. in Ec-'" o-llIPmM' Third EdItIon, 1976. '

IA. lB. 1,2.3. IC 2; IIA. 1,2 1111, 1110; IVA. IYB, 2. IVD. 1.2; VA, 1.4, AB; VIA, 3.1, VIC. 1.3, VI 0, 1. 2; VII A. VII B. 2.3, VII 0 2.3. (Except pp. 463·6); VlDC, 1.2.

2. Michael P. Todaro, Economic Ollve/op_ '", the Third World". 1979. O~apters4,1i. 8. 13 and 14-.

3. A.P. Thirlwall, Growth end Otlv./opment with 4peC/aI'.ferenCtl to developing tlconom/tIII, Second edition, 18711, Chapters 4,7 ..

4 . H. Myint T"-e EconomIcs of d.ve/oping Countritl$ : 4th edition, 1974, Chaptere 1,6;1.7,8,10.

5. H.W. Singer, "Poverty, l'lcome Distribution and lavel. of of living; Thirty V..- of changing thought on Develop· ment problems" ' In IC. H. H. Reo and P.O. Joehi (ed • . ), Rafltl,ctJon. on EcOnomic Development and $oclal Chen,.,

. Essays In honourofV.K.R.V. Reo, 1979, Chaptenl3, pp. 29-40.

6. S. KuznelS, Economic Growth end $tructUftl, 1965, Chapters 6.6, pp. 176-212.

7. Keith B. Griffin and John Enos Plenning Development. 1970, Chapt.,3.

16

8. H. Myint, Economic Theory end the Underdeveloped Countries, 1 971 , Chapter 13.

9. Frances Stewart Technology end Unde,deve/opment. 1975 Chapters 1 .2.

10. Frances Stewart and Paul Streeten. "Conflicts a_Nfl Output and Employment Objectives" in Richard Jolly etal, (eds.) Third Wo,ld Employment, Penguin, 1973, Reading 20, Excerpts roprinted in Reading No. 1 above.

11 . T. Scitovsky Two Concepts of External Econbmie,' in A .N. Aggarwal. and S.P. Singh (eds), The economic. of Under. developmMt, 295 -308.

12. H. Leib.nstein "Allocative Efficiency V.. X-Effici .... cy Americen Economic Review, June, 1966 , pp. 392-416.

13. B .~ . Minhas, " The Current Dev.lopm .... t Debate" in Tower~ a New Strst&gy fo, Development. A Rothko Chapel Colloquium, (1979) , Ch. 3.

14 Hoo:y Bernstein (ed.) . Underdevelopmenund Deve,,,pmenr, (Penguin, 1973) , pp . 33 -3B (article bye Furtado) .

15. K.N. Raj. " Trends in Rural Unemployment in India : An Analysis with Reletenc" to Conceptuel and Measurem .... t Problem.," Economics end Politicel Weekly, No. 31-33 (Special Number) , 1976, Section's I and II, pp. 1281.1286.

16. A .K. Sen, Choice of T-flchniqu .. , 3rd ed . (1972) , Chapteral,2.

17 H.T. Keplin . Micro-economic Analysis: Wene,. end Effi. clency in Povst. and Public Secto,s, 1971 . ChaptlMil17, 19.

18 Richard Leyard; : Cost 8enefit Anelysis, Penguin 1972, Introduction, pp 9·59

,PER XII : The indian Economy Since Independence 100 malks

Major features of the Indian economy at Independence, objectiy .. 01 planned deyelopmentand role of the state.

( I) Institutional framewOIk : Pattams of auet·ownership in agtlculture and industry; Policies fOl r .... ucturing agr.i .... relat ions and lor regUlating concentretion of &conomllt powers

(Ii) DemOgraphic constrains : Interaction between PopL/lation ,.hlitnoe and economic development

17

till) Resources : ProD,ems and instruments of moblliSatluu Of

Internal resou<ces for the public s&ctor ; external resources.

S. Ii) Ag,icultufe : Shlte of agricu lture 10 nationa l income ond work force. Factors influencing productivity In agtlculture : role of technology, institutiona l foctors. Pattern of owner · ship and land reform (such ~ ., t he size dIStri but ion o f land an(1 acoesa 10 irrifjalion, credit and modern inputs) and price policy. Growth of agricultural output : a broad r .. view.

( ii) Indus,l,y.nd Foreign T,.de : Constraints on growth atlsonll from the strUCtUl8 of production and foreign trade and th.' stretegy of import substitution · based industrial isation . PublIC; sector in India and its role in the growth process. Pol iCies fo ' i egulalIOg th. pattern of inY", tment In the private SEctor, LiC8t)aing and other direclconlrols, poliCIes toward s Ihesmall scale sector. Foreign Capila l. The r.le and pattern 01 indultrill growth : tmnds since 1950. The export ! 8CtOr: " .-. 100mance and polici ... , implications for growth , the balonc8 01 paymtonts.

(iii) A review 01 reeource allocation ac.roes broad sectors : agricultule, industry L,d infrastructure.

4 . ( I) GfowM end St,uctufel Chenge ,ince1950 : Rates of sa·, :,.y and inv.lment, growth of national income .nd per capita income, changes in thelndultrial distribution 01 n" tior·;, . income and work force-alllnd ;a and regional contrasts .

(ii) Assessment 01 the growth experience : Unemployment pov.rty, inequality and Inflation.

"EADINOS :

1. Bhegwlti and P. O .. i : Indlen Plonning 10' fndu.«fialll.tlon.

2. t>remit Cheudhuri : Indion Economy.

3. P .. mit Ohaudhuri (ed,) : A.pect, of Indi.n Economic Oeve/opr. .. r.t Ch. 3.

4. C.D. Wadhwa (ed.) : Some ProbIefM of Indi.'. Economic POlic, (2nd, ed) Chs. 1, 14) .

5. R.H. Cawen : Indie : Popu/ltion, Economy, Society, Ch. 4.

• J,e. Send .... (ad.) : Ind/ln Economy·PerformlnClend p,ospecl CII.27.

.j'

18

7. G.O.I. : The ECDnDmic Survey (bte" Issue).

It. G.O.I. : Dr.h Sixth Fiv~ Yeer PIII~ (R.vl .eciJ 1978-83, Oh. 1

9. G.O.I. : Sixth F,v. Y." PI6n 1980-85, Ch. 1,5,6,12 Ind 13.

10. G.O.I. : NlltiDnal ACCDunt8 Statistic8 (Lat .. t)

/1 . V.R. P..,chamukhi : rr~de PDlicles 1'1 India. Oh. 2.3 and appendix iv.

12. M.L. Dantwal. : UndlJrstanding PDverty .nd UnemplDyment. Indian M",chanlS Chamber 8rochure. 1980.

13. HobslHlwn (ed) : Peu.nts iR HistDry cli .. II. bV V.S .. VYH._ pp. 781 -786.

14. V.M. Dlndekar and N. Rath : PDverty in Indill. Indilln School of Political Economv (1971) . Oh. IV, v.

16. O. H. Hlnumantha R ao : T echnDlogiclI1 Cheng. and DistributiDn •. Gien, in Indilln Agriculture Ch •. 15. 16.

16. DeepH Navver : IntfiJn's EXpDrt PDlicies in the 1970's Cambridoe Unlvanlty Press (1976). Chs. 13 and 14.

17. S.B. Gupta : MDnallllY Plllnning fOllndill. pp. 16-22. 41-43.

18. P .K. Basu Ind A Novl (eds) . : Public Ent.rprise PDlicy Dn Inve.tmlll!l.

19

20.

Pricing end R.turn. (1980) . pp . 261 -318.

C.T. Kurief\': "Small,Sector in New Industrial Po!icy". Economic lind Politicel Weekly. (EPW). March. 4, 1 .78.

R'iKriel!na: "Int ... tate Disparitl"!lin Econom.ic Dev"opment". Gl Mehta. MJNnorlal Lectur ... liT. BomlHly 1980.

21. "V.K.R.Y. Rao : C.N. Vakil endowment LlOIur-.IEG. Sari ...

'22,

23.

B. Siv_Mlen : "ScientillC agriculture in ilautrll to _la: the f...., an4 the remedy", JDurnel of thll'Indi." S~ty of A",iculttllfJ Suatilfic.1973.

A VlidyaMthln : "Performlncaln4 ProepMlIs of Crop P.-...... , in lnelll", EPW, Spl. No.Auguat1977.

24. M.L OMtwala : "FUlureof lnatitutlonal R"orm and Tacllnlll.lv' CIIItIge in Indian AorlOullur. l*IeIopmant. EPW, __ .... Agul!1II 1978.

11

M.L D",tWala ': "lnOlllliY.llld DilinOllltlv.ln Ind11llAer1ou1tule IndMn Jeurnlll 01 Atplcuhurlll EconomltJtac. April-June 1987 . .

'1. p.s.Appu: "Tenancy reform" EPW,Spl. No.August19711:

7. Ii. DuttI: "In,.,.ectoral Dltprtt1* and In_ DIa1rI~ In . Indll: 1880-61-1973-74", Indlen Economic Re,,1ftI AprllJune 1J1O.

V. Pandit : An An~lyaia of Inflation In India : 1 HO-11711), Indllln Ectmllmlc Re"law, Ootoblr 1878, pp. 88-88.

K.S. Krlahnuwamy, : 'Thoug/IIa on Inflation and DIttrIbutIorI" , IndMn EconllmleJoufnlll, October-Dec. 1976.

V.y, o.~I,: "PllllUh of Induatrlal SeH-sufflolf!ftcr(' Elltlllonric IItId PolIti_ Weekl¥. May, 1 , 1871 . . ' ,

, I.G. PIItItI, : "Oorornaildel lMltu_, MernsuHm, Dec. 27, 1980.

A. Rudra : "Organilllion of·Agricultur. for Rural D_lop_": .

The Indian _ " , CemINJ dfll Joume/. 01 EtI_mltI .. Vol. 21, Ne.4. (December 1878), pp. 381-406.

IJ. Perth ... rathy : "Lend RMorm and the Chlnging Agrarian

Itrucwre" in C.H. Shah (ad.) :.Jcu/rurel De"eIop",."t ""ndill IWhiIN 11M I'roIIIaIN (11").

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UNIVERSITY OF DELH I



MIX M.,k$ HOUI$

PSII I Ex.mination

Papar. I-Mlcl'O Economics I 50 2. Paper . II-Economic Histo,y'ol Ind ia 50 2

(1857·1947)

Paper. III-5tatistic81 Methods lor EconomIcs 50 2 Paper: IV-Nationallnc"ma Accounting 50 2

PIn 1/ Exsm,inetior.

Paper : V-Micro Economics II 50 2

Paper : VI-Maoro Economics 50 2

Paper : VII-Money and the Fln8ncI81,SY5tem' 50 2

Paper: VIII-MathAr:natical Methods for Econom ics 60 2

Pllt JIJ Ex.mination ,.

Paper :

Paper :

Paper :

Paper:

Paoer :

NOTES:

IX-Public t'inance 50

X-Comparative Economic Development 50

XI-Economic Systems 100

XII-Development PPoblems and Policy 100 •

XIII-Indian Economy since independence 1 00 \

2

2

3

3 . 3

. 1. In many papers' (such as VII , IX, XII. XIII above) . the read ·

ings suggested may be suitably revised from time to time in the light 01 ' the ' availiability 01 new reading material; ,

2. Wherever periodic pUblications, such as the Economic SUlvey, Report of Finonce COmmiSfion, have been recommended as readings, the latest issues available 01 tho beginning 01 an academic lear will serve as the readings in Question.

,

2.

3.

4 .

2

DETAILED COURSES OF READING ,

MicrO-Economics-i 50 Marl<s

Introdu~rion : Ba~ic'probl~ms of an economy. consHuction

and ver~ication of economic theories; notionsofequtltbnum

and dis-equilib~um, marl<et demand, market supply and


Th of Consumer's Behaviour: Marshallian analysis ;

eory th ry ' in-diHerence curve appr'i2ch; revealed preference eo .

the raw of de~nd; e4a~ticity of demand.

Theory of Product!?n : Fa~tors of production; production

functions; production possibility ' curves; cost curves ,

supply functions; elasticity of supply.

Theory of Firm and the Market Structure :

Profit maximisation objeciive of the firm

(a) Perfect competition: equilibrium ofthe firm; supply curve

and the equilibrium of the industry; market adJustment

process and the stability of equilibrium.

(b) Imperfect competition : equilibrium uri~er monoPOly:

. d' ·trr.ination· monoplistic competnton; oligopoly , prtce tscr. , Cournot's solution, kinked demand curve.

OPTIONAL REAOI~GS :

1.

2.

W.J. Baumel, Economic Theory and Operation Analysis. 4th

edition, 1976, Chs 1 ~, 15, 16.

A Koutsoyiannis, Modern Micro EconoM;cS. 2nd edition.

~hS 2 (Secs. I and 11\, 3 (Secs. I, II and IV), 4 (Secs. I, II , III) .

5-9.

Nates

"

PAPER II : Economic History of Indi. 1857-1.947 50 Mllka

I .

2.

3.

4.

5 .

6.

General history of the period 1857-1947 . Instilutional de_,· lopments: ihe relationship between Ihe British Governmenl, the Government 01 India and the provinces.

The .ocial and economic structure 01 Indie in 1857.

Main Irends in the economy. 1857·1947 : Population. labour force, national income. foreign trade and payment: growth 01 the modern sector.

Agrarian Relations. Trends in output and producti_ity 01

agriculture and pel capita food availability. GOl(emmenl policy lowards agriculture. irrigation. famines and ruraf credit.

. ' The changing structure of modern industry ; role of dom9lt"ic and foreign enterprise and governmenl ' fN;liey. II Tne amer-, genee ala modern labourforce and the growth of trade unions.

The colon ial impaet and domestic responsss : An as~essment. Fiscal and Hade policie. : the debate between government Ind its critics.

c ,

... l> )~ ,n, 1

Regarding topic 3 a general familiarity with broad trends is expecten: the student will not be expected to memOtiz8 figures.

Regarding topic 5 . • detailed :.tudy 01 in&ividual industries is not expected . ("\' I,'

READINGS: • 1. Sumit Sarkar : Modem Indill. Chs. 1.2 (Pa(t ~): 3,4.'5,6.7.

2. V.B. Singh (ed): Economic History of In dill, 1857-19!;f, Chapter by T.N. Madan

3. B.R. Tomilson : '" India and the British Empire, 1880-193f'",

4

5.

6.

Indisn Economic lind Socisl History R.v;'w, Vol XII. I 975 t

R.jot Ray: Industrisliz.tion in Indis,1 914-19.47, Chi. 1.2.4 and 5. . ,onr"

C.J. Dewey bnd K.N. Chaudhuri (ad,). Economy snd Soc;'ty EsslI.Ys in indisn Economic snd Socilll His(ory,. Ch. 10.

S.N. Agarwala : Indis's Po.oulstions. ProblfJm •• Oh, 4.

I

t \I \

r

...

,

7.

8.

9.

1 iJ ,

11 .

PAPER

1 .

2.

3

4.

5.

6.

G. Slyn :

4

Ag';cultuf.1 TrMd. In Indll :cOutput. AVIII.bility AVBil.blliry ond ProduclJvlty. Chs. Chs . 1. 9.

S S,va.ubramon,am : National Income 01 India. 1900·01 to 1946·47 (Ph.D. thesIS mimeo). lasl chapter.

H Verikatasubbian : FOMign Tfod. of fndio. 1900·1 946. Pt. II.

o R Gadgi l : The Industrial Evolution of Indio in Roe.n! Times. . . 1860·1939. (1971) . Chs. II. V. VII. IX(2 ).

XI Xli XX .

A.J . Youngson (ed .' : Economic D.vo!opmont in th. tong Run. paper by Macpherson.

III : Statistical M.thods lor EconomiCs 50 Marks

UnivaCiate ffequeney di$Uibutions : Maasur ... of location; the first four mornents; measures of dispersion. skewness an?

kurtosis.

Bivlfiil(B freq uency distributions : Correlation; regression

with one independent variable; method of least squarM;

simple a(laly~is of attributes.

Elementaty Probability Theory : Concepts of even". . and probability; addition and multiplication theorems: cond,t,onel probabililV and independeoce 01 events; concept of a random variable; probability dlstribu:ion ; mean and variance of a random variable : binomia l and normal distributions ..

5 I · . P. dam sample ' concept of sampling distribution; smpmg . ,an '. . . distribution of the sample m~an ; concept of tests of slg."' · c~nce ; tests of sigli f lcanr.e of the mean and the regr~sl~n coefficient (only normal distribution to be used for the diS· cussion of sampling clistr ibutiol', and tests of signi fican90)

Index Numbers : Concept of an Index number ; Laspeyres and Paasche's indexE*:, factor ar, reversal test$, ; chain baSI index : problems in the conSt , of index numbers

Time Series Analysis : Objectives ; components 01 a time seri&; measutement 01 trend by moving averages; linear and expo

nentia l growth curves; measurement 01 seasonal varia!>n.

6

BASIC READINGS :

1. P.H. Karmelend M . Pol"'k.Appli~d St.tlstlc:l for Ecooomis/$ (3rd Edn.,. Chs. 5.8.7 (aecs. 7.1·7.6). 10 (secs.l0.1. 10.2. 10.4.) 10.5), " . 13 .

. 2. F.E. Croxton. D.J . Cowden end S. Klain. Applied Gen.,,1 Sr.fi>tic:l (3rd Edn.). Chs. 11,12 (pp. 230.243). 13 (pp. 256-

267).14. 17·19.24 (pp. 5~7.651).

3. A.L. Nagar and R.K. Das • • Ollsie Stlltistieas.

4. M.R. Spiegel. St.ti:tlic:t.

PAPER

2.

3.

4.

5.

6.

7.

8.

IV - N"rion,,! Incom. Accounting 50 Merks

The Production Process in • modern economy-relationship between stocks .nd flows. Generation of value edded and factor incomes by a production unit and an economy·an ele_ mentary discussion of the input·outpu; transactions matrix.

Issues in the Concept of Nelione! Incom. : Concepts of Production; d istinction between in termediate end final prod'ucts

including treatment of government; concept ane treatment of depreciation .

Me.sufament of .vafitm.llr.come : Various ways of looking at National Income; production. income distribution and diS. position; an outline of the three methods of measuring l1ational income; estimation of national income in India, a gen8(81 discussion of the methods and diffiCUlties.

'. N.tion.1 Incoma Agg.fag.tes,' Measuring the inte"elation. ships.

U$'s snd Limil.tion:t of N.tion.1 Incoma : Probl"",s of ccmp.'i. Sons over tim's and among nations, Nationa l InCOIl16 a! in indicator of welfare ; personal and reglooal d;$tribIJti:;n; quality of life ind ices as an .Iternative.

N.tional Incom. Accounts,' Classification of transacto~ and

transactions. use of the double entry principle in the account of

• firm and in national income accounts. Elementary notions of sources an .. uses offunds. Consolidated nationalaccounts. of India.

N.tion.1 Capit.1 : Methods and problems at estirr. ___ .. .

8.I.nc. of P.ym.nl8 Account: Structure and classification .

I. 7,

•• II.

1.

2.

3.

J.R. Hlcka. Th, Soc;,' 'rem.work (j971). Chs , 2.3.8.10, 11 Ie, • --<t.r

12. 13 .nd 1 e· .nd Appendi~ Not. 'C. . , ("0., " t

Ruaael Math.ws. Accounting fe, E~omisl$. Ohs. 18. 19,

(Sec. I) . ,or .v • Wilfred Beclterman, An . Intloduclion to N.tion.1 l"comB ~1y8is. Chao 1. 2. 3. 4. '~. , '7 ', . ,,,. Paul Stud.nakl.!nco"", "'Nltiou, Part II (1961). Ohs, 11,12, (Sec. (1.3) 13.14.{S (Sec"'): 16 (Sec. 1.3.4) 17 (Sec, 1).18

(Sec. 4c).

William I, Abreham.N.tion.llncom •• nd Economic Accounling (1969) Oh, 4) "

C.S.O. Nalion.' Accounl. St.stic~. (Latest Issue)

O,S.O. N.tion.1 Accounts St.tistics : Source. Methods 1980

Richard and G iovannasStone. N,'ional Income and Expe"diture (1972) . Oh. 6 R_IVe Bank ollndie, Indis'. B.',':'c9 of Payments 1948 ·49

'0 1961-2, Ch. 1 Pages 1-12

- Micro Economic-II Marks 50

,.etor Pricing .nd Dislribuli"" : Theories 01 rent-Ricardian end modem theories; determination '01 w'llles, int ... est and pr~ ,

G.ne,.rEquilibrium : Concepts 01 part,al and general equil ibrium; equilibrium 01 exchange; EdgeWorth box diagram,

Line.r Mode's : Elementary input'outp'ut analys,s; Introduction to linear pragramming and simple applications.

4, We"." Economics: Pare to optimality; limitations 01 the Pareto criterion; compensa'tion principle (Kaldor-Hicks; Scitovsky criteria); social wellare lunction; competitive equilibrium and

Pareto optimality ; market faiiures,

5. Inl.m.tion.1 Trede : Ricardian and Heckscher-Ohlin theories; gein Irom trade; I nternational trade and factor prices.

8ASIC READINGS:

1. R.G. Lipsey, An Introduction to Positive Economic., latest

edition.

2, PA. Samuelson, Economics latest edition.

3, W.J. B.umol, Economic Ti,/JOIY .nd Operalion, An,lyw. 4th edition, 1978 .. Oh • . 5 (Secs 1-3) , 21, 22. 24.

'4. C.P. Kindlebiger, Intllm.tional Ecancm/ce, 1973 , C~s 1 -4.

6. B, Soderston, 'ntemation.' Ecooomics, 1971 , Part I.

6. A, KOu\loyiannis, Modern Microeconomics. 2nd edi tion, Chs.20 (SecB. I-III) , 21 (Secs.1A. III),23 (SecsA-D).

PAPER VI - Macro Economics 50 Ma,ks

1. The economy as a .Clrcular· flow of Income and expenditure,

2. The determination 01 income and employment', determin etion of the level of income in the short run-aggregate diimand: the consumption funct!on, multipliE:r process; the invpstrnent funct ion-marginal efiiciency 01 cap.ital; liquidity prelerence and t he rate of interest. interaction 01 commod ity and money . , market!: .

Determination 01 employment: Keynesian and neoclas>ical theories; their limitations wh.n a ... r.lied to LDCs. .

j . Determination of the general level 01 prices; the Quantity Theory of Money; Inllation-Cost push, demand pull and

structural theories.

4 . Bplance 01 payments: Its componerts; exchange rates; adjustment in cUrre .• t account through price and income changos: capital mOV9ment~ .

READIN~S

1. E, Shapiro. Macroeconomic Analysis. 2, B. Soderston. Inl~rnational Ecomonics, Chs. 13-16.

3. V.K,R.V. Rao. 'Investment Income and Multiplier in an underdeveloped Economy" The Indian Economic Review (Februaty 1952). Reprinted in A,N. Agarwala and S.P, Singh (eds,) The Economic. of Underdevelopment, pp. 205-18and V.K.RV. Rao. Essars in Economic Developmenl (1964) Ch.3.

4. Milton Friedman, "The Quantity Theory of Money" reprintad in AA Walters (ed.)" Money and Bb"king, Selected R.,dings, (Penguin), pp. 36'-55 .

6. Harry G. Johnson. Essays ir, Monetary Economics (1969). Essay 3, pp, 104-42.

, PAPER VII-Money and tho Finan ei.1 Sy.t.m 50 Markt

No te: Parts of monetary thaory INili be covored in Popor, VI-

1 .

2.

3.

4 .

5

6.

7

f-/1acro Econom ics.

M one y : Functions : alter native measures of money supplV in india-their dift.,ent components; meaning and changing relative importance of each in India . Hig h powered money: meanIng and uses , sources of changes in it.

Finance rola of finance In an 6~on omy; kinds of finance : fi nancia l system; components ; fin ancia l intermediaries, markets

Jnd instruments: funcHons of each.

Commercia l banks : importance. function. balance sheet of • bank : meaning and importance of the main liabilities and assests ; Co-operative banking In India.

The process of credit creat ion by banks ; determination of money supply and totat bank credit . nominal and real.

Development banks and other non· ban k flOancial institutions, main features ; unregu lated c(ddit markets in India : main fea tures .

TIle R·eserve Bank of I ndla-Iunctlons: instruments of monetary and cledit control. Main fgatures of monetary policy in India SInce Independence.

Problems and policies of allocation of institutional credit :

(a) between the government and the commercial sector:

(b) in ter- s.ctoral and inter -regional . and (c) between large

small borrowers. Operation of conUicting pressure before

an d after the nationalisat ion of banks in 1969.

B. Interest rates-various rates in India ('liz. bond rate, bill rate, deposit rates. etc.) apminlstered rates and market-determined rates: sources of differences in rates of interest; the behaviour

of the average level of rates of interest since 1 951-impact of Inflation and inflationary' expectatiohs.

~EADINGS ..

(S tarred readings are recommended. not required) l.V Chandler and S.M . Goldfeld. The Economics of Money and Banking 7th ed 1977 Chs. 1 --7. 18.

g

2. L.V. Chaod ler, Th~ MonBtlrY Finencial Syuem, 1977 Chi. 4'5',12 ·.1 3- . .

3. S.B. Gupta. MonetBry Plwnnin g fOl I"dia, 1 979, pp. 1 44-48. 51 ·62. 103-174, 197-200.

4. M.Y. Khan, Indisn Finenci.' ·SystBm_Thoory lI"d fJrlrct,' .. 1980.

5. D.N. Ghosh. Banking Pnlicy in Indi.-An Evaluation 1 Chs.7-13 . · •

6 . • A9S&rve Bank of India. FunctIons Bnd WOlking, 1970 7. Banking CommiSSion, RBport. Ch . 17

8. S.8. Gupta. MonetlllY Economic. Ohs. I-la, 15.20, I

PAPER VIII : Mathe,!,Btic,,1 Methods fOl Economics

1. MatlicB,: Elementa,yoperationS--Determlnan'S: "ornoutati of the inverse matri~ : linear simultaneous tt::1'.JiW(..ns. Crame'-s rule for solution. (All discussions in terms ~f metric", of order 2 and 3.)

2.· • Functions : Sets, relations and funct ions; functions and diA.

grams .in economic theory; elementary analytical geometry_ straight ·I ine. circle, parabola, hyperbola and other curves

Polynomial, exponential, logarithmic ,nd trigonometric fun . ctions; geometric ano arithmetic progre$'sion .

3. D~Iivatives : Limits and continuit, 01 a function : the derivativo

and its interpretation; the technique of differentiati",, ; economic applications of tha derivatives; convex sel iUld concave functions: maxima and minima.

4. Function. of two VBriBb{B': Parti.1 derivatives; total .1 " i vative; constrained maximisation (minimisation). Lag . lng.; multiplier; applications to theory of the · firm and con,umb. behaviour.

READINGS:

1 . G.C. Archiblad and R.G. Lips&y : An IntrOduction to, M,th • . matical Tleatmem of Ecunomic. (3rd ed.) Chs. 3-11 . 15.

R.G.D. Allen. Mathematical An6IY$i. fOl Economist •. Chs. 3, 5, 6, 8, Ii . 12. 14.

2.

3. A.C. Chiang. FundBmBntBI MethOds of Moth.mllic,1 Eco nomics (2nd 6dn.), Chs. 2.4,5.6.7,9, and 12.

Y. I.,," J . I?,~LLrV\.(}(:' ) f u .)" .Tl\JJ&~ _ ~ ( ) p€,y

4. W.J. Blumol, Economic Theory .nd Operetion. A",ly,is Chs. 2 4.

PAP fR IX - Public Fin6nce (With Special Reference 10 Ind ia) ?O Marks

1. Fiscal functions in 8 develoolng economy: provision of sociel goods.

2. Government budgeting . Types of Governmenl budgel accounts-revenue and capital accounts. Economic and funclional classification of Ihe Central Govarnmant Budget : ralionale behind such class ifications, melhod of dariving significant economic magnitudes .

3. PubliC receipts. (A) Taxat ion-equ;ty criterion . Incidence of Indirect taxes; efficiency criterion . Features and evaluation 01 the tax structure: lax evasion. Feasibi lity of Value Added Tax III India . Taxation of agriculture in India .

B. Public "v.rowings . Sources, the instruments of Government borrowings In India (Sho:t-Ierm and long-term), re lative importance.

C. Deficit Financing. Meaning and trends in deficit financing in India. Economic eHects of deficit financing

4. Public expenditure, Factors influencing public expenditure. Wagner's law and Ihe Peacock-Wiseman hypothesis. Trends in the level and composition of publ ic expenditure in' India . Growth in subsidies.

5 Fiscal federa!i5m. Constitutional f,lrovision in India . Flndlnys

and recommendalions of the lalesl Finance Commission.

ilEADINGS

1. R.A . My.sgr~ve and P.B. Musgrave. Public FlIlSnC. III Theory and Practice (Third e<lition . 1980). Chapters 1. 3, (pp. 54 -61).

7 (pp. 139·159). 10. 11 . 12. (pp. 256-262) . 13. 14. (pP. 301 ·313. 321 -323). 24.

2. Raja J . Chefliah. Fiscal Policy in Underdeveloped Countries , (Second edition) Chapters 2 (pp. 3B-51 ). 3 (pp. 54-66. 85 -90) .

3. Government of India. Ministry of Finance. An Economic -cum . Function.' Classificltion of the Central Government qudget. 1966-67 (introduction only) and Ir ' .. t (for analytical aspects only)

4. Government of India. Ministry of Finance. Exp!6nlltory Memo-16ndum on the 8udget of Central Gonrnment (Latest

ava ilable) . 5 Governmenl of Ind ia. Ministry of Finance Repolt of the

Indirect TaXI lion EnquilY Committee (L K. Jha Comminee) Part I (Sectio:,s 2. 3.4. and 12) and Parl ll (Chs. 1 . 17. and 18).

6. Ved P Gandhi. Some Aspect of India 's Ta. SttuCIU!e

7. K. N. Ra i. " Direct Taxation of Agricult ure." Indian Economic Review. Vol. VIII . No 1. (New Series). April 1973.

8. S.B. Gupta. Monetary Planning for India. Ch. 6. (pp 111 ·117)

9. Report of Ihe latest Finance Commission .

10. Government of Ind ia. Report of the Committee on Controls and Subsidies (Vad ilal Dagli Committee) . May 1979. Ch . 2

(pp . 29 -32). " (pp. 114 ·27)

11 . G. Thimmiah. 8urdens of Union Loans on the States. Chapters

'.2 and 3 .

12. V.B. Chuge. Burdens and Benefits of India's .National Debt

(1977) . Chapter 1 (pp. 1-16)

13. Government of India. Ministry of Finance. Final Report of the Oilect Taxes Enquiry Committee (K .N. Wanchoo Comm ittee) .

December 1971 (pp. 4 -18)

14. D.N . Dwivedi ed . Read"'gs in Indian Public Fin6nc • . Read ·

i ngs 1 . 2. 9 . 1 1 .

PAPER

1 .

X-Comp"ative Economic Oevelopment 50 Marks (wilh reference to selected counlries : U.K. 1760·1914

Japan 1861·1939; U.S.S.R. 1917-1950) Economic Growth and development : mean ing LInd measure ·

ment, rate and t ime pattern of mociern economic growth ; major features of structural change and the lf IOter-relations-

labour productivitY. capital formation, ou put. consumption

income and distribut ion of income

Comparative study of historical patterns of development . (i) Agra rian change and role cf agriculture In the economic

development of U K. Japan. and U.S.S.R. ( ,i) Industrial Rev('luhon ill U.K.-comparative sludy of the

rate and pattern of Industrialisation In U .K., Japan and

U S.S.R

r

3. Role of the State in of tho three se lected ,

systems-I stud~ dilf&rent economic

countr ies .

~EAOINGS : h : Rltl Structu, • • "d i. S. Kuznets, Modern Economic Gro wt

~~~~~~i~6(~.~ Fontlnl Economic History of Europe, Vol. 4 2. Pt. I, Ch 3. .

M thias The First Industrial Nation. 3. Petor a , USSR (1969) Ch

N An Economic History of the .... ,. 4. A. ove,

5. 6.

4.8 . . . velo mentsince(1977;'Chs.B.ll. Dobb. Soviet Economic De p <f Economic Errterprise In W.W. Lockwood (ed.) The Stete an

JlPon (1966) Chs. 1 , 2.. . 0 12 E,J . Hobsbawm, Industry snd Emp"e, Chs. 1·1 , 'f

7. d The Economic D8velopmerrt 0 Japln, 8. W. W. Lockwoo .

Ch. 10. 100 M'r!s PAPER XI-Ecorromic Systems . Merx's concept.Qt a

' f a economic system. h 1 . The notion 0 n . in dejin ing systems. T,

mode of production end Its us; other aspects of a 5ocie'V r.lation between economic an

Marx's theory of social change. . Th&'accumu . . of a capitalist economy

2.. Charactarlst.c features'h' I change Instability .and cri5e, lation process and tec nice , .

Cap' elism and Planning. Tho role of the State. n'd its implications f~)! econom The growth of monopoly a , r m and copro/stions. In function ing. Modern capita IS . .

. I' m a:ld the role of multinationals. perl. IS . . r m. theoretic

development under capite IS • Long run d hes and the historical recor .

approac f foning of a socialist economiC 3 Classical ideas and the une I, I' m in a bac~ward &conon

. . I blems of socia .s . the historrea pro . . d primitive accnmulatlC the peasantry, industllsllsatton an . .

. . ractice : the role of planning . Planning In theory :1nd p . . a socialistl economy, possibility of rallOnal calculation 'in e' le"915 of decisi,

I t · and ItS re evanc , Lange·lerner so u .on . I'sat ',on "S decentral ':'" . o~ centra I ,.,. . making and the quesllon d choice of 'lechniques, tion; patterns of investment an

I~

" irst law 01 socialist accumulation. Elements of and inst itutionaf structure in the USSR and Eastern and planning methods, P,ob lems ' in industry and IUle and the question of economic reforms.

I""uas in the Chinese development experience

emphasis on communes and r~ral industrial isation .

I'EADINGS :

1, GI~,.o(y G,o.:.aman .r. Economic Systems (Revised • O.hs. ! 6- 2. to.

2. Oslear LlJnge,/'ohtical.Ecorromy, Vol. I Chs. 1 and 2.

j: Maulice Oobb, On Economic Theory arrd SOCialism, Chs. C and XV,

4. J.A . Schuinpeter, C'Pst.,ism, SOCialism and Chao II, VI.Vllf.

5. K. Marx and F, Engels, Mllnfll.to of the Communist Sections I end II ,

6. Lionel Robbins, 'Individual Action in the Environmert 01 Oapital ism', in W.A. Leeman,(ed.) Capitalism Market Soci.,ilm lind Cllnt,al Plsnning, R •• dings in Compar.tive EconG'ml, Systems.

7. J.K. Galbraith, The New Industrial State, Chs, 2.7.

8. R. BlaCkburn, The New Capitalism, in Blackburn, ed . IdeOlogy . \ in Socisl Science.

9 . M, Kalecki, 'Political Aspects of Full Employment' in E,K Huntand J .G, SchWartz, (eds.) A Critique of Economic Theory (Also in M . Kalecki, The Last Phsse in the Trsnsformation 01 Capitalism) .

10. J .O. Connor, 'The Meaning of Economic Imperialism' in R.I Rhodes ed. Imperialism and Underdevelopment. A Reede,

11. P.A. Baran . The Political Economy of Growth, Chs, 3 and 4 . . 12. N. Kaldor, 'Capital Sl Evaluttion in the Light of Keynesia

Economics', in Kaldor. Essays on Economic Stability en Growth.

13. R.G. Edwards, Michael Reich and Thomas E. Weisskopf, ed,

The Capit.,ist System, A Radical Analysis of American SociBt (Second edition, ! 978) , Ch. 12.1, Ch. 4,3,1 0.5.

14

14. A. Nove and D.M . Nuti, (eds.), Soci.'ist Economics, Chs. 1 & 6

15 Oskar lange,(ed.)Problems of Political Economy of Socialism Chs. 1 -3. (Also in lange, Papers in Economics and Socio logy 1930-1960, pp. 20-45, 85-114) .

16. Oskar lange, 'On.the EconomicTheoryof Socialism', (Section I .V), in O. lange and F.M. Taylor, On the Economic Thoory

of Socialism.

17. W. Brus, The Economics .nd Politics of Socialism, Chs. 1 & II . 18. A Nove. The Soviet Economic System. Chs. 2, 4-6.

19 Peter Nolan, "Collectivization in China: Some Comporisions with tho USSR', Journal of Peasant Studies, January 1976.

(Vol. 3, No.2).

20. J .G. Gurley, China's Economy and the Maoist Strategy Ch .4 . 21. A. Eckstein: China's Economic -Revolution, 1977 Ohs. 2

and 8 .

22. M. lavigne, The Economics of USSR and Eastern Europe

1974, Chs. 1 -4.

23. S. Hymer, 'The MUltinational Corporation and the Law c>1 Uneven Development' in H. Radice,(ed.) International Firms and MOdern Imperialism (Also in J . Bhagwati;(ed .)Economics and World Order from the 1970$ to the 1990s) .

PAPER XII : Development Problems and Policy

100 mark!

1. Economic Development.' General Perspective

Common characteristics of underdevalopment. Concept and scop' of economic developm.nt. Economic growth in historical perspective lessons fodess. developed countries. Recent que'tion ing of the GN F growth orientation snd issues related to incqme distribution and pc>verty Objectives and dilemmas of oconomic pc>licy.

2. Cap/t., Accumulation, Employment and International Trade in

Economic Development.

Capital accumulation-rate and pattern of Investment; level and structure of aggregate demand; mobilisation of internal and eXfarnol resources for financing investment; the management factor and concept

of X·efficiency.

Employment problems of fass developed cOuntrias-charact .... -~iC&of .';1ploy~ent and unemployment; issues in employment pc>licy, rntBr-r.latrooshrp betwMn output and employment objectives; choice of capital intensity; skill formation ; technology choice ~s a packs"e; employment and other Implications of technology cho ice.

Problems of an open economy the role of international trade in the giCM'th proc.a; problemsandpolicies related to international trade in l_dev.loD"Cl countries.

3, O.n.raf Pojicy 'uuu.'

Umltatlons of the price mochan 'sm and case for economic planning; rol. of. the state and private sector in a mixed economy; the public Sectol

.1 an in~trument for Sloliey intorvention in develop in" countries; iUUN I n public sector p'ncing .

Ohoice of projects from a social point of view and social cost benefit analysis.

RECOMMENDED READINGS:

1.

2.

Gerald M, Meier, Leading 'ssues in Economic Development Third Edition, 1976.

IA, iB, 1,2,3, IC 2; IIA. 1,2 IIIB, 1110; IVA. IVB, 2. IVD. 1,2; VA, 1.4, AB; VIA, 3,5, VIC, 1,3, VI 0, 1, 2; VilA. VII B, 2.3, VII 0 2,3, (Except pp 463-6); VIIIC, 1.2.

Michael P. Todaro, Economic Development in the Third World" , 1979, Chapters 4,5,8, 13 and 14'.

3. A.P. Thirlwall, Growth and Development with spBcil11 reference to developing economies, Second edition, 19711. Chapter'S 4,7.

4 . H. Myint, rhe Economics of developing Countries.' 4th adition, 1974, Chapters 1,5:6,7,8,10.

5. H.W. Singar, "Poverty, Income Distribution and Levels of of living; Th irty years of changing thought on Development problems" in C. H. H. Rao and P.C. Joshi (eds.), Ref/ection, on Economic Development snd Social Change, Essays in honourofV.K.R.V. Rac>, 1979, Chapters 3, pp. 29-40.

6. S. Kuznets, Economic Growth and Structure, 1965, Chapters 5, 6, pp. 176-212.

7. K.ith B. Grlffir .nd John Enos Planning D.v.'oplNnt. 1970, Chepter 2.

\ . E 'c Theory Md the Underdeveloped 8. H. M YIOt, . conoml

Oountri8S. 1971 ,Ohapter 13.

Frances Stewart, Technology Md Underdevelopment: 197e. 9. Chapters 1 .2 .

d Paul Streeten. "Oonflicts B'twMn 10. Frances Stewart an Ob.activ ..... . in Richard Jolly It al.

Output and Employmen t I . R din 20. (ads.) Third World Employment, Penguin, 1973," g

Excerpts reprinted in Read ing No. 1 above. . "

T Scitovsky Two Concepts 01 External Eco~oml;s ~n~~~: 11 . A~garwala and S.P. Singh (ads). Th •• conomlcs 0

development. 295 -30B. . . X- Eflicilllcy H. Leibanstein "Aliocatlve Efl,c,ency V;92_415.

12. American E'conomic Review. June. 1966, pp.

t Debate" in Towllt~s B S M inhas "The Current Developmen Ch I Collo 13. ' " A R thko ape _ a New Strategy for Development. 0

quium, (1 979). Ch. 3. I m.nt . (ad) Underdevelopment .nd D.ve op , Her lY BernsteIO .. - d)

. 1973) pp 33-38 (artic le byC Furta 0 . (Pengu.n. •. . 14

. I yment in India : An K N Raj "Trends in Rural Unemp 0 t 15. . . , C eptual and Measuremen

Analysis with Reference to on~ I WeekI No. 31-33 Problem •• " Economics and Pollll ca y'1281 _ 1286 .

. I N mber) 1976 Sections I and II , pp. (Spec.a IJ • • 1 2

A.K. Sen. Choice 01 Techniques. 3rd ad. (1972) . Chapters '.: 16. . . Analys is: W.II." .nd Eftl 17. H.T. Koplin. Mlcro-econ/~mslC t 1971 Chapter's 17. 19.

ciency in Pf/vate and Pub IC ec 0 ,.. . •

Richard Leyard; : Cost Benefit AnelYsis, Penguin 1972. 18. Introd uction. pp. 9-59

,PER XII : Ti>elndian Economy Since Independence 100 ml.ks

d ce objectives Major features 01 thelndian economy at I ndepen en •

01 planned development and role 01 the state. h' in . k . Patterns 01 asset-own8l'S Ip ( i) Institutional framewor . t 'ng aglli.n

P r 'es lor r&stuc UII ag ricu l ture and industry; rOlclconcentration of economic relations and for regu a 109 pow ers.

(ii) Demographic constrains: Interaction between change and &conomic developmen t

population

3.

I

4.

7

t ill) ResourceS ; ProD. ems a"d inslrUmenl$ of mobll lSa,.u" " . .nternel resoU«;86 for Ihe public uctor; external resourc"

, . \

til Agriculture : Share 01 agricu lture in national income 'n" work force. Facto" influ&ncing produclivit v in agricultur.' rola of technofogy, instilut ional factors. Pa'ttato of own.r. ship end land reform (auc~ ~ .<!h . size di.,rib:J tion "'Iand ,nIl aGOIISS to Trr i~ation , cradit and modern inputs) and prlc. policy. Growth of agricultural output : a broad review.

\ . .... • ~i ' \ \.1 " • • -.

(ill Industry end For/lign _Trllde : Con stra in!. on growth atiSIOII from the atructu .. of production and foreign trade and th •• strategy of impol!substitution_based industrialisation.' Public' sector in Ind ia and its ro le in th~growth process. POlic.es for regulating th. pattern of inv8!tment in the ~ ri 'Jate S(Clor. licenSing and other direct controls. polic ies towards thesmal l scale sector. Foreign Capital. I The rate and pattern 01

industrial growth : !ronds .ince1950. The eHport factor: p' ,r formance Bnd polici • • . implicatiop .• for grow.th; the ba lonce 01 paym.nts.

J (iii) A review of r&Source .IIocation a<oross broad sectors : I agricultUl8, industry Lnd infrastructure.

. . -. . (I) Growth and Structurel Chenge\4inc.'950 : Rates of sav:r;1/

and Investment, growth of nallonal income ' an d per cap it. income, changes in Ihe Indu,lrial ' d istribut ion of nbtio~ " l income and work forc9_a.II India and regional contrasts .

(i i) Assaearnant of tha growth expariance : Unamployment POVirty. inequality and Inflation ..

READINGS:

1. 8hagw.tland P. Desai ·; IndIan Plllnning for Indu$triali.etion. 2. Pramit Oh.udhurl : Indian Economy . •

3. Ptlmll Ohaudhuri (ed,) :A.pect.oflndlan Economic Dlfve/npmer.r Ch.3.

4. C.D. W.dhwa (e.,!.) : Some Problem' of India', Economic POlic) (2nd. ad) Chs. 1. 14).

6. R.H. Callen : India: POpUlation, Economy, Society, Ch. 4. . . . 6. J .O. Sandes.r. (ed.) ; Indian Economy-Perform.nc. lind prospeci

Oh. 27.

-------- - -

18

7. G .~. 1. : The Economio Survey (Letest Illue).

&. G.O. I. : Oreft Sixth Five Yesr Plen (Reviled) 1978·83, Oh. 1

9. G.O.1. : Sixth F,ve Yeer Plen 1980·85, Oh. 1,5,6,12 and 13. . !

10. G.O.I.: Netionel Accountl Stetilticl (Latest)

11 . V.R . Panchamukhi : Trede Policies 01 In dis. Oh. 2,3 and appendix iv.

12.

13,

14.

16.

18.

17.

M.L. Danlwala : Understanding Poverty end' Unemployment, Indian M"ichanls Ohamber Brochure, 1980.

Hobsbewn (ad) : Peelsntt iFl History eh .. II, by V.S,. YVas, eSI pp. 781· 786 .. ,. to

V.M. Candekar and N. Rath : Poverty in In dis, Indien Schoo~ of Political Economy, (1971), Oh. IV, V.

C.H. Hanumantha Rao: TechnologicslChenge and ,Diltrlbution •. Gien, In Indian Agriculture Chll. 16, 16.

Deepak Nayyar: In dien', Export Policies in the 1970's Oambridge Un ivarsity Press (1976). Ohs. 13 and 14.

S.B. Gupta : Monetery Plennlng for Indie, pp. 16.22,41·43.

18, P.K. Basu and A Nove (eds). : Public Enterprile Policy on Investment. Pricing and Returns (1 1180), pp. 261 ·318.

18 O.T. Kurien : "Small,Sector in New Industrial Policy", Economic lind Politlc.1 Weekly: (EPW), Maret" 4, 1978.

20. RaiKrishna: "Irllerstate Disparities in Economic Development". G L Mehte, Memorial Lectyres, liT, Bombay 1980.

21 , V.K.R.V. Rao: O.N. Vakil endowment L8OIures, lEG, S.,i ...

22. B. Sivaiaman : "Sci.ntillc agriculture in neutral to acal.: the falilcy and the remedy", Journel of the Indien Society of Agricu'tur.' Str.tlsticI1973 .

23.

24.

A Valdyanathan : ';Perlormance and Prospects of Crop Production in Indie", Ef'W, Spl. No.August1977,

:'\ . M.L. Danlwala : "Future of In'lilution.1 Reform and Technologic.1

Change In Indian Agrlc;ulture Development. EPW;' Spl. No. Agu.',1 1978.

25,

26.

27.

28.

28,

30,

31.

32.

33.

M L Oantwala: "Incentive .. nd Olslncentlv_ln'lndlanAgrloulturt ·/~dl.n Journ.1 'of Agrlcultufll Econom/~'c . Aprll.June 1887

P.S. Appu : " Tenlncy reform" EPW, Spl. No, Augu.t 1976,

B. Dult. : " lntl ... 8OI0ral Olsptrltl_ and Inoome OI'VI~IO" In . Indl.: 1860.61-1973·74", Indl.n Ec(lnomlc RIVI.W April·

June 1380.

V. P.nd lt : An Analyei. of Inllition in I~ I . : 195()..1975), Indllft Eeon(lmle R.vlew, October 1978, pp. 89·98,

K.S. Krl.hnl.wlmy, : 'Thoughll on Inll.tlon '.nd Oiltrlbutlon". Indl.n Economic Journ" , October· D.c . 1978.

II.V, 0.11, : "Purault of Ind~.tri.1 Self •• uffIOII'Roy" Economic

.nd Polltic.' W .. kly. M.y, 1,1971 .

I.G . PIIII , : "Ooromlndel Lectur .. , M,'n.tr •• m, D.c. 27, 1980.

A. Rudra : "Org.n l .. tion of Agriculture for Rura l Oevelopmenl :

The Indian c ... ", C.mbri dg. Journ'" of EconomlcI, Vol. 21 ,

No.4, (Oecembef 1978) , pp . 381·406.

G. Plrthuarathy : "LInd Reform Ind the Chang ing Agrerl.n ,

Structuro" I~ C.H .Shlh (ed.) ; Agricultu,,' D.v.'opm.nt oflndl'

Pollelll .nd Probl.m. (1 879).

D.U.P .• 510 .10·02 ·500+50

~) Copv right reservEl

UNIVERSITY OF DELHI

SCHEME OF EXAMINATION

AND

COURSES OF READING

FOR

B.A. (HONS.) EXAMINATION IN ECONOMICS

Part· I Examination 2006

Part-II Examination 2007

Part-III Examination 2008

COMPLIl'l1ENT An y cor· ..

ED copy

1._ ·',Re istrar (Pub.) F'UQJI~ab l)t\ISton University of .,elh!

Syllabii applicable for students seeking admission to the B.A. (Hons.) Economics Course in the academic year 2005-2006

Rs

\

I~EVISED SYLLABUS FOR B.A. ECONOMICS (HONS.)

(,'eneral Note: The nature of several of the courses is such that only selected readings can be laid down in advance. The reading lists will be supplemented/ IIpdated in regular annual meetings of all college teachers of the University t 'Hching B.A.(Hons.) Economics courses that the Department ofEcoriomics urganises.

Course 01: PRINCIPLES OF ECONOMICS

I: Exploring the subject matter of Economics Why study Economics? Scope and Method of Economics; The Economic Problem: Scarcity and Choice; the question of What to Produce, How to I'roduce an" How to Distribute Output; Science of Economics; The Basic ('ompetitive Model; Prices, Property Rights and Profits: Incentives and htfonnation, Rationing; Opportunity Sets; Economic Systems; Reading and Working with Graphs.

2: Supply (/lid Demand: How markets work, Markets and Welfare Markets and Competition; Detenninants of individual demand/supply, Demand/Supply schedule and demand/supply curve, Market versus Individual demand/supply, Shifts in the demand/supply curve. Demand and Supply together, How Prices allocate resources. I 'Iasticity and its application; Controls on Prices; Taxes and the Costs of loxation; Consumer, Producers and the Efficiency of the Markets.

I: The Households 1l1e consumption decisions - budget constraints, consumption and income! Ilriee changes, demand for all other goods and price changes, Description IIf 'preferences [Representing preferences with indifference curves. I'ropeI1ies oflndifference curves]. Consumers' optimum choice, income lind substitution effects. Ille investment decision - investment alternatives for a household, Desirable Iii tributes of investments I.ubor Supply and Savings decision - Choice between !eisure and rnnsumption, labour force paI1icipation, tax policy and labour supply, Human

\

capital and education, Budget constraints and Savings, Savings and . rate, Other factors affecting savings.

4: rile Firm and Perfeci Markel Siruciure Financing. controlling and managing firms-TIle fmn's legal fonn. Co:rporaltl Finance, why corporations care about financial structure, takeover and market for managers, making decisions, centralization and decentral

the boundaries of the fil111. Behaviour of profit maximizing fil111s and the production process, costs and output decisions, costs and output in the long run.

5: Imperfeci Markel Slrllcfllre Monopoly and antitruSt policy. government policies t.e )wa~ds, c.om:pet.itio1n. Imperfect infOl111ation in the product market-The mfornlallon The market for lemons and advcrse selection, the incentive problem, search problem, advertising, the importance of imperfect i govemment and infomlation.

6: Inpul Markels Labour and Land Markets-Ba~ic concepts [derived demand, productivM of an input, marginal product oflabour, marginal revenue product]; for labour; input demand curves; shlfls in input demand curves; e1lC,ticityC demand in input markets; compet.itive labour markets; labour markets public policy; Land markets and pure rent.

7: Exploring Intema/iollal Economics . The International Economy- Trade surpluses and defiCits, the eCCiIlOlrq basis for rade--- absolu:e advantage versus comparative advantage. of trade. exchange ratcs; Sources of comparative advantageOhlin Theorem and other explanations. Trade Barriers-lariffs. SUI'Slalll

and quotas: free trade or protection--case for free trade, case for p['(,te<:ticll

8: IntrodllctiOl' /0 Macroeconomics The roots of macroeconomics, macroeconomic concerns. the govemment in the macroeconomy, the components of the the methodology of macroeconomics.

2

v: Inlroduclion 10 alionallncome Acco;mli/lg t oncepts of GOP and national income. approaches to calculating GOP. (")P·and personal income. Nominal and real GOP. Limitations of the GOP ' lII1cept, GOP and the black economy.

III: Tile Classical System: Tlte FIIII-Employme/lt Model Macroeconomic Equilibrium, the labour market. the product market. the I 'Ipital market: extending the full employment model

II: Tlte Simple Keynesiall Model \ggregate expenditure and equi librium output- aggregate output and

,IHllregate income, equilibrium aggregate output; Govemmcnt participation III the economy; Fiscal policy at work- The Multiplier effect.

/1: MOlley in lite Modem Economy I h;tracteristics of a monetary economy; The demand for money; 'ne supply "I money and overall liquidity position; credit creation.

1/: Illflatioll I h~ causes of inflation, level of prices and the value of money , The Fisher lie 'I. The cost ofinflation.

14: Explorillg tlte Macroeconomics of an Open Economy 1I.IIIIIIce of Payments- The current and capital account; Oetermininu 'Illilihrium output in an open economy; Open economy with flexibl; ,Iumge rates--Market~ for foreign exchange, Factors affecting exchange

I Iii'S, effects of exchange rates on the economy.

Itfllt/i/lgs I Karl E. Case and Ray C. Fair (2002), Principles of Economics, 6'h

I'.dition. Pearson Education Asia Lo", Price Edition.

N. Gregory Mankiw, (2002), Principles of Economics, Thomson.

J E. Stiglitz. and C.E. Walsh (2002). PrinCiples of EconomIcs. 3'" Fdition. W. W. Norton & Company .. New York.

It Stone and G. Stone (1962), Nu/ionallncome and Expe~ditllre. IIIlIVcs and Bowes London.

Course 02: MATHEMATICAL METHODS FOR ECONOlVlICI

I. Preliminaries Elements oflogic and proof: converse and contra positive, necessary sufficient conditions, proofby contradiction, mathematical induction. and set operations. Ordered pairs, Cartesian products of sets. Relatio~ Functions: one-to-one and onto functions, composite functions, the function. The real numbers: natural numbers, integers. rational and i'r rnti,,.,

numbers; absolute value and intervals; inequalities.

2. Elementary Linear Algebra '2-, 3-, and n-dimensional row and column vectors; vector addition scalar multiplication; length of a vector, scalar products, orthol~orlall

Geometric representation, lines and planes in R 2 and R 3 .

combinations of vectors. Linear independence. Convex sets.

Matrices and matrix operations: addition, scalar multiplication, multiplication. The transpose. The inverse of a square matrix. Elementary row operations and computation of rank. Invertibility and for square matrices.

Determinants: definition, properties, minors and cofactors, the expansion, expansion by alien cofactors; singularity and invertibil adjoint matrix and formula for the inverse.

Linear equation systems in matrix and vector notation (m eqlJalllOIll variables). The rank criterion for consistency (existence Of~V1Ull ''''' Uniqueness of solutions; redundancy and degrees of freedom. The = n : homogeneous and inhomogeneous systems, determinantal "ril"ri. consistency and uniqueness, matrix methods of solution and Cramer's

3. Functions 0/ One Real Variable and Applications 0/ Ca,/cu,'. Examples (linear functions, polynomials, etc.) and elementary curve Sets of points in the plane determined by equations or inequalities.

4

Infinite sequence and series: the concepts of convergence and limits: algebraic properties oflimits. Present discounted values and elements of investment IUilysis.

lhe limit of f(x) as x ~ a. Continuity. The intermediate-value theorem.

Ihe derivative ofa function. Differentiability and continuity. Techniques of tllfTerentiation; sums, products and quotients offunctions; composite functions nd the chain rule. Inverse functions. Implicit differentiation. Second and

higher order derivatives. Concavity and convexity of functions: Jensen's Im:quality; the second derivative criterion. Points of inflexion. Differentials Ind linear approximation. Taylor's theorem and polynomial approximation. Indeterminate forms and L'H6pital 's Rule.

I xponential and logarithmic functions. Logarithmic differentiation. Examples "l' the use of the exp and log functions (proportional rates of change. Ii ticities, continuous compounding etc.)

I lptimization: stationary points, local and global optima; location of turning I ~li nts and points of inflexion using derivatives; the role of concavity and Ilinvexity. Applications.

I Functions 0/ Several Variables I the emphasis throughout should be onjimctions o/two variables (and " IClled geometrical interpretation) without. however, restricting the IIlcussion only to this case.]

t I metric representation; level curves. Partial differentiation; plane sections lid geometrical interpretation. Tangent planes to a s.urface. Higher-order

I'lnial derivatives, Young's Theorem. Partial derivatives in economics.

I Incar approximation and differentials. The chain rule. The implicit function IliI Ilrem (statement only), first- and higher-order derivatives offunctions I.-Ilned implicitly, geometric interpretation.

I" lI11ogeneous and homothetic functions. Elasticity of substitution.

5

Concave and convex functions, Jensen's inequality and characterization terms of the Hessian (statement only). Convex sets. Quasiconcave qllasiconvex functions.

Maxima and minima, saddlepoints, unconstrained optimization, ne<:es!;aI and sufficient conditions for local optima.

Constrained optimization (equality constraints). The method of'Lagral18 multipliers. Interpretation of the necessary conditions and ofthe LaI~lIIl1i mUltiplier; geometrical meaning. Sufficient conditions. Envelope Economic cxanlplcs.

Readings

Knut Sydsaeter and Peter f Hammond (2002) M.7lhemalics Economic Analysis. Pearson Educational Asia: Delhi (reprint 1995 edition).

2 Alpha C. Chiang (1984) Fundamental Melhods ofA4atJ~en:latI4 Economics. McGraw Hill (3"' edition) .

6

Course 03: STATlSTlCALMETHODS IN ECONOMICS

I. Elementary Distribution Theory Univariate Frequency Distributions measures oflocation, Dispersion, Skewness and Kurtosis; the first four moments about zero and central moments.

1. Elementary Probability Theory

./.

Concepts of Sample space and events. probability of an event; addition and multiplication theorems; conditional probability and independence of events. Bayes rule. .

Concept of a random variable; Probability distribution, Joint Marginal and Conditional Distributions, Independence of random variables; mean and variance 0 f a random variable; binomial and nOnllal distlibution; Lawoflarge numbers and central limit theorem.

Introduction to Estimlltion and Hypothesis Testing Methods of sampling; sampling distribution of a statistic; distribution of the sample mean; sampling error and standard error ofa statistic with special reference to the mean; Point and interval estimation of parameters; properties of an estimator; unbiasedness, relative efficiency and consistency.

Testing of Hypothesis; type I and type II errors, power of a test; large sample tests. t test for the mean; one tail and two tail tests for difference of means; Chi-square test for (i) goodness offit and (ii) independence of two attributes.

I. Bivariate Distributions and Simpll! Linear Regression: Marginal and conditional distributions: discrete case; Covariance and correlation: rank correlation.

Simple linear regression; method ofleast squares; Derivation of the normal equation; standard error of regression (SER), properties of the least squares estimator. Gauss-Markov Theorem, Simple tests

7

5.

of hypothesis on regression coefficients, linear and exponential trend, point and interval forecasts.

Index Numbers: Concept ofan index number. Laspeyer's, Paasche's and Fisher's Index Numbers; Time Reversal, Factor reversal and circular tests; Chain base index; Problems in the Construction of an index number. splicing; base shifting and use of index number for deflating other series.

Readings:

I. P.H. Karmel and M. Polasek, Applied Statistics/or Economists edition), Pitman, Australia.

2. Allen Webster, Applied Statistics/or Business and Economics, edition), McGraw Hill, International Edition 1998.

3. M.R. Spiegel (2'''' edition), Theory and Problems a/Statistics, Scllaum Series.

8

I.

2.

J.

~.

Course 04: MICROECONOMICS

Consumer Theory: Preference, utility, budget constraint, choice, demand, Sluisky equation, buying and selling, choice under uncertainty, inter temporal choice, revealed preference.

Production and Costs: Technology, Isoquants, production with one and more variable inputs; Returns to scale, short run and long run costs, cost curves in the short run and long run.

Market Structure and Game Theory Review of perfect competition and monopoly; Pricing with market power; price discrimination, peak load pricing, two-part tariff; monopolistic competition and oligopoly; Game Theory and competitive strategy

General Equilibrium and Economic E/ficiency Exchange, production and welfare

.S. Market Failure Externalities, public goods, markets with asymmetric infoffilation

Headings:

I. Robert S. Pindyk and D.L. Rubinfdd, (2000), Microeconomics, 3,d . edition, Prentice Hall India.

J. Hal R. Varian (1993), intermediate Microeconomics. a Modern Approach, 3'" edition, Affiliated East-West Press.

9

1.

2.

Course OS: MACROECONOMICS

The Closed Economy in the Short Run Classical and Keynesian Systems; IS-LM model; fiscal and monetary multipliers; aggregate demand and aggregate supply, the accounting identities.

Injlatioll and Aggregate Supply Curve Phillips curve; adaptive and rational expectations; policy ineffectiveness debate.

3. Tile Medium RUIl

Government budget constraint; fmancing government expenditure through taxes, bonds money creation.

4. Open Economy Models . Short nm open economy models: the Mundell Fleming model. Exchange rate detrnnination: purchasing power parity. asset m"rhof '

approach; Dornbusch's overshooting model. The monetary approach to balance of payments.

5. Ecollomic Growth Harrod-Domar model; Solow model; elements ofen(jog:en'JUSI growth.

6. Microeconomic Foulldatiolls Consumption; investment; demand for money and supply of money.

Readings:

I. Rudiger Dornbusch , Stanley Fischer and Richard Macroeconomics, 7'" or later edition, McGraw Hill.

2. N. Gregory Mankiw Macroeconomics, 4'h or later edition, VVUlm ,

Publishers.

. 10

.1. Jones, Charles I. (1998), introduction to Economic Growth, W. W. Norton & Company, Chapters 1.2, 8.

,I. Sen, A.K. ,ed.( 1970) Growth Economics, Penguin Books.

5. Attfield, C.L.F. , D. Demery and N.W. Duch (1991), Rational Expectations il1 Macroeconomics, 2'" edition, BfackweIJ, Chapters 1,2.4,.

6, Sheffrin, Steven, M. (1996), Rational Expectations, 2"" edition, Canlbridge University Press.

I I

Course 06: ECONOMIC HISTORY OF INDIA 1857-1947

I. Colonial India: An Overview

2. Trends in macroeconomic aggregates: Population, labour force and occupational structure; National Income; Foreign trade and ~ance of payments; Saving and investment; Money supply and pnces.

3. Railways and Economic Change

4.

5.

Agriculture, land, labour, capital, technology, commercialization,

famines and environment.

Traditional and Modem Industl)': The deindustrialization hypothesis, rise of the modern industrial sector during the pre-war a.nd the interwar period, industrial labour, growth of entrepreneurship.

6. The Role ofGovemment

7. The Indian Economy at Independence

Readings

I. A.K. Bagchi (1976), "Deindustrialization in India in,~hDe Ni~eteenth Century: Some theoretical implications", Journal OJ eve opment

Studies.

2. A.K. Bagchi (1972), Private Investment in India, Orient Longman

(I" ed), Ch.2.

3. J.N. Bhagwati and Padma Desai (1970), India. 3Planning for Industrialization, Oxford University Press, Chs. 2 & .

4. Basudev Chatterjee, Trade. Tariffs & Empire, Lancashire and.British Policy in India. 1919-1939, Oxford University Press, New Deihl, 1992,

ch.2.

12

5. Rajnarayan Chandavarkar (I 985). "Industrialization'n India before I 947: Conventional Approaches and Altemati ve Perspecti ves", Modern Asian Studies.

6. Jean Dreze, "Famine Prevention in India", in J. Dreze, andA.K. Sen, (eds). Political &onomyofHungel. WIDER Studies in Development Economics.

7. D.R. Gadgil (1971), The Industrial Evolution of India in Recent Times, Oxford University Press.

8. Omkar Goswami (1989), "Sahibs, Babus and Banias: Changes in Industrial Control in Eastern India", Journal of Asian Studies.

9. Sumit Guha (1991), "Mortality Decline in Early 20th Century India", Indian Economic and Social History Review.

10. Sumit Guha (1999), Environment and Ethnicity in India. 1200-1991, Cambridge University Press, Ch.8.

II. lra KIein(1 984), "When Rains Fail: Famine Reliefand MortaIityin British India", Indian &onomic and Social History Review.

12. Dharma Kumar (ed.) (1983), The Cambridge Economic History of India. Vol. II, Cambridge University Press, Chs. 4, 5, 6, 8.2, 10& 12,

13. Morris D. Morris (1965), The Emergence of an Industrial Labour Force in India: A Study of the Bombay COl/on Mills 185-1-19-17, Oxford University Press, last chapter.

14. Rajat Ray (ed) (1992), Entrepreneurship and Industry in India. 1800-1947. Oxford University Press, Introduction.

15 . Rajat Ray (I 979). Industrialization in India. Oxford University Press, Ch.4.

13

I

16. Tirthankar Roy (2000), The Economic HistOlyoflndia, 1857-1947. Oxford Upiversity Press, Ch.3, 4, 7, 8 & 9.

17. Sivasubramonian (1997), "Revised estimates of the national income of India, 1900-190 I to 1946-47", Indian Economic and Social His/or) RevIew.

18. B.R. Tomlinson (1993), The Economy of Modern India, Cambridge University Press, Ch.1 & 2.

19. B.R. Tomlinson (1979), The Political Economy of the Raj 1914-1947: The economics of decolonization in India, Macmillan, Ch. 3 &4.

14

Course 07: India's Economic Development since 1947

Unit 1: Major features ofIndi'an economy at Independence

Unit2: Growth, development and structural change a) The experience of growth and development: plm m.i.ng and the market b) Growth and Development experience in difterent Phases of Growth

defined broadly (but not exclusively) by reference to change~ in policy regimes and goals of development.

I. Growth and structural change 2. Growth and distribution 3. Hwnan development and environment 4. Regional contrasts

c) Indian development experience in intemation::1 perspective: factors, strategy and policy

Unit 3: Issues in Indian economic Policy a) Population and Human resow'ce development b) Growth, unemployment and poverty c) Macro economic stabilisation: Trade, Fiscal and Monetary policy

issues. d) Agriculture, industry, services and trade

Unit 4: India's development prospects -looking ahead

Readings: (To be reviewed annually to keep abreast of new Readings)

I. Montek S. Ahluwalia, (2002), "State-level Performance under Economic Refomls in India", inA.O. Krueger (ed), Economic Policy Refonns and the Indian Economy, The University of Chicago Press.

Pranab Bardhan (2003), Poverty, Agrarian Structure and Political Economy in India: Selected Essays. OUP. Ch.5.

Jagdish Bhagwati, (1993), India in Transition. Freeing the Economy.

15

Clarendon Press, Ch.2.

4. __ and Padma Desai,(1970) India: Planning for Industrialization (Oxford University Press), Ch.2. . .

5. S. Chakravarty, (1987), Development Planning: The Indian Experience. Clarendon Press, Chs. 2,3 and 5.

6. Y.M. Dandekar, (1992), "Forty Years After Independence" in Bimal Jalan (ed.), The Indian Economy. Problems and Perspects, Viking Press.

7. Angus Deaton and Jean Dreze (2002), "Poverty and Inequality in India: A Re-examination", EPW, September 7, 2002.

8. Jean Dreze and Amartya Sen,(2002), Participation, OUP, Chs. 2,.3,5,6 and 7.

9. Jean Dreze and Gita Kingdon (200 I), "School Participation in India", Review of Development Economics. Vo1.5, No.1.

10. Rakesh Mohan (2003). "Small Scale Industry Policy in India: "" .n n ...

Evaluation" in A. O. Krueger (ed.) f&llliQ!!!.ll~!ligililill2!!rn1llli!..!Q Indian Economy.

II. Sebastian Morris (200 I), "Issues in lnfiastructure De'velc,pmentTodlay The Inter linkages", in India Infrastructure Report, OUP.

12. B.S. Minhas (1991), f!!!ili£.~~~~~u-!m~ill:~~ of Economics in Indian Policy Formulation, R.R. Kale Lecture, GoIKhai Institute of Politics & Economics, Pune.

13. R. Nagaraj (2003), "Industrial Policy and Performance Since I EPW, August 30 - September 7, 2003.

14. Kirit S. Parikh, A. Ganesh Kumar and Gangadhar Darbha (2UIOJI "Growth and Welfare Consequences of Rise in MSP", EPW. 1,2003.

15. Mihir Rakshit (200 I), "On Correcting Fiscal Imbalances in the Economy: Some Perspectives", Money and Finance, ICRA DW,IClI

July-September 2001 .

16. Mihir Rakshit (2002). Food Policy in India: Some Longer-Term

16

Money and Finance, ICRABulletin,April-September, 2002.

17. Y.M. Rao, and P.D. Jeromi,(2000) "Modernizing Indian Agriculture: Priority Tasks and Critical Policy" Study No.21, DRG, RBI.

18. S.K. Ray (1996), "Land Systems and the Reforms in India" Indian Journal of Agricultural Economics, January-June 1996. ,--

1 <) . T.N. Srinivasan, (2000), Eight Lectures on India's Economic Reforms. OUP.

O. T.N. Srinivasan (2003), "India's Fiscal Situation: Is a crisis Ahead?" in A.O. Krueger (ed.), Economic Policy Reforms and the Indian Economy.

'I . T.N. Srinivasan, and Suresh D. Tendulkar (2003), Reintegrating India with the World Economy. OUP, Chs. 2 and 3.

K. Sundaram and Suresh D. Tendulkar (2002), The Working Poor in India: Employment Poverty Linkages and Employment Policy Options, Issues in Employment and Poverty, Discussion Paper 4, !LO, Geneva, September 2002.

17

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Course 08: ECONOMY, STATE AND SOCIETY

1. Analysing Socio-Economic Change in Historical Perspective.

2. Capitalism as an Economic System: Origins, nature and structure capitalism;Accwnulationand crisis; Alternative perspectives on ca~litalisrll

3. The transilionfrom Feudalism to Capitalism.

4. The Evolving Structure o/Capitalism: Monopoly capitalism; modem corporation: divorce between ownership and control; institutional diversity of capitalism; Alternative perspectives on the of state.

S. Capitalism in a Global Conlexl: Multinational corporations and impact on the developing economies; imperialism.

Readings:

I. Gurley (1978): "The Materialist Conception of History", Ch.2.lln Edwards, M.Reich and T. Weisskopf(ed.), The Capitali~t (2nd edition), and editorial comment in 3rd edition (1986) pp. Prentice Hall.

2. O. Lange, Political Economy, vol I , Chapters I and 2.

3. R.L. Heilbroner (1987), "Capitalism", in The New Dictionary 0/ Modern Economics, Macmillan. Also reprinted Chapter 2 in Behind the veil o/Economics by R.L. Heilbroner (I W.W.Norton.

4. D. Foley (1983), "Commodity", in T. Bottomore et al (ed.). DictIOnary 0/ Marxist Tho,,!ght., OUP. (Indian edition, Blackwell, 2000) .

5. A. Shaikh (I 983), "Economic Crises" and "Falling Rate of Profit", Bottomore et al (eds.), The Dictionary o/Marxist Thought, (Indian edition, Maya Blackwell, 2000).

18

" P. Kenway (1987), "Crises" and "Realisation Problem" in The New Palgrave Dictionaryo/Modern Economics, Macmillan.

1 T. Bottomore (t985), Theories o/Modern Capitalism, Allen & Unwin. Chapters on Weber and Schurnpeter.

1. Schumpeter (1942), Capitalism. Socialism and Democracy, George Allen and Unwin (1976 edition), Chapters 7 and 8.

I) P. Baran (1957), The Political Economy 0/ Growth, Chapter 3, (pelican edition, 1973).

III. J.K. Galbraith (1967), The New Industrial Stale, Chapters 2 - 7.

II R. Blackbum,(ed.) (1972), Ideology in Social Science, Chapter 8, Pontana.

S. Hymer: Part I of "The Multinational Corporation and the Law of Uneven Development", in H. Radice (ed.) International Firms and Modern Imperialism (also in 1. Bhagwati (ed.) Economics and the World Order from the 1970s 10 the 1990s)

W. Laz,)nick (1994), "Social Organisation and Technological Leadership", in W.Baumol et al (ed.) Convergence o/Productivity, Oxford.

II P. Hirst and 1. Zeitlin (1997), "Flexible Specialisation: Theory and Evidence in the Analysis of Industrial Change", in R. Boyeretal (ed.), Contemporary Capitalism, Cambridge University Press.

M. Kalecki (1943), "Political Aspects of Full Employment", in EX Ilum and 1.G. Schwarz (eds.) A Critique o/Economic Theory (Also In Kalecki, Selected Essays on the Dynamics 0/ the Capitalist F:conomy, Cambridge University Press, 1971 ).

I Ii I:N. Srinivasan (1985), "Neoclassical Political Economy", chap. X.I 0.1 111 G.M. Meier (ed.) Leading Issues in Economic .'Jevelopment (6th ~dition) , OUP India, 1995. .

Peter Evans (1998), 'Transnational Corporations and the 1l1ird World States", in R.Kozul - Wright and R.Rowthom (ed.), Transnational ('orporations and the Nation State (till sec 6.2), Macmillan.

19

\

18. Prabhat Patnaik (1986), "Introduction" (pp. 1-21) in Lenin Imperialism, ed. P. Patnaik , Orient Longman.

19. Prabhat Patnaik (1996): "Oiobalisation of Capital and the Imperialism", Social Scienlist, Nov.- Dec., pp. 5 - 17.

20. Rodney Hilton (ed.) The Transition from Feudalism to Ca]pitallil Introduction.

21. Paul Sweezy, A. Critique, in Hilton (ed.)

22. Maurice Dobb, A. Reply, in Hilton (ed.)

20

Course 09:DEVELOPMENTTHEORY AND EXPERIENCE

r,rrl /: Growt" and Development II. vclopment and underdevelopment (size of the market; characteristics

11.1 measures of development); Historical experience of development (stages ·1 Wowth; late industrialization; structural analysis). .

l'II ~crty and inequality (conceptual issues and measurement; capabilities 1.1 entitlements; policies for poverty reduction) 1.11 . and the market (market failure; government failure; conflict versus '"IJ1lementarity)

"" 'Icct Appraisal and Social Cost Benefit Analysis

r.rll/: Resources I 'I'llal and technical progress (role-of capital; capital output ratio; resource

11"t'ntion; level and pattern of capital formation; patterns of technical ,I" ress; technology and unemployment; obsolescence; choice of

IlIIiques) I 11'lur and employment issues (population growth; demographic transition; IIIlIlIlIn resource development; surplus labour; open and disguised '

• IIlployment; informal sector; rural-urban migration) 1 ".I IUld the rural economy (overview of farm and non-farm sector; credit

.1 II1icro-credit; interlocked markets; natural resources; environment and I 1,Iinable development)

II. 1·llvironment and Sustainable Development, Non Renewable resources.

II {II: Globalisation and Development l'l.[l' policy debate (export promotion and import substitution, WTO"" lure and functions; WTO and LDCs) " 1f!1l capital (role and limitations; MNCs; Third World debt crisis; private II Ipn investment; IMF and World Bank)

II IV: Overview and Contemporary Issues

Michael P. Todaro (1997), Economic Development, International 'illluent (Sixth) Edition, Addison-Wesley

21

\

2. Debraj Ray (J 998), Development Economics. OUP

3. Gerald M. Meier (1995), Leading Issues in Economic De've.'opme, Sixth Edition, OUP

4. Jean Dn!ze and Amartya Sen (1995), Economic Development Social Opportunity, OUP

5. A.t'. Thirlwall (1999), Growth and Development with Reference to Developing Economies, Macmillan, 6'" Edition '

6. S Chakravarty, "The State of Development Economics" based Lecture at Manchester University in 1985, Ch.8, pp.184-203 in Chakravarty (1997): Writings on Developmeni, Oxford Press.

22

COURSE 10: INDIAN AGRICULTURE AND INDUSTRY

I' RT-I:AGRICULTURE

Agricultural Performance since Independence Output and productivity growth: regional and crop perspectives. Growth and instability.

The Policy Environment Agricultural price policy and subsidies; The public distribution system

I. Resource Use Efficiency Fertiliser, Water, Other inputs

Current Issues in Indian Agriculture (selected topics) Sustainable agricultural growth-concepts and' constraints Prospects for dryland agriculture International trade in agriculture Technology policy Market infrastructure

rop insurance

Agricultural Exports Quantitative Restrictions (QRs) and Non tariffbarriers WTO and Subsidies in Developed Countries Management of Shortages and surpluses.

It""t/ings

Vaidyanathan, A. (1994), "Performance ofindianAgriculture since Illdependence" in Kaushik Sasu (ed.), Agrarian Questions Oxford University Press.

V.M. Rao, (200 I), "The Making of Agricultural Price Policy: A Review IIl'the CACP Reports" Journal of Indian School of Political

23

Economy vol. XIII, no. I, Jan-March.

3. Robert Evenson, Carl Pray and Mark Rosegrant (I 'j'j~I), JIWlICUllUr,cu

Research and Productivity Growth in India (IFPRI Research ReIJO" 109).

4. Gunvant Desai and A. Vaidyanathan (1995), Strategic Issues in Growth in Fertiliser Use in india. Macmillan.

5. Ashok Gulati (2000), "Indian Agriculture in an Open Economy: Will Prosper?" in Ahluwalia and Little (eds.), India s Economic Relfor,711 and Development: Essays for Manmohan Singh, Oxford Press.

24

"ART-II: INDUSTRY

I. Overview of the Illdustrial Scene illllldia I rends in growth and productivity; Competitiveness and changes in Policy Regimes

2. Issues relatillg to the Compositioll of Indian Industry I . Small vs. Large Industry

Public vs. Private Sector, with emphasis on: 1. Performance of the public sector 4. Privatisation 5. Dynamics of the Industrial Sector: Growth and Sickness

J. Trends ill Illdustrial Regulation alld COlltrol Pricing in the public and private sectors Fmployment growth in the industrial sector

4. Policy Issues and Future Prospects Infrastructure; Technology

~.JSSlles of Managemellt Umiting market abuses I· DIs/Fils

6. Fillancillg of Indllstry OWllership alld Efficiency Ilqllity markets

Readillgs

•

I. J. Bhagwati (1993), India in Transition: Freeing the Economy, Clarendon Oxford 1993

'.. Mrinal Datta Chaudhri (1990), Market Failure and Government Failure: Journal of Economic Perspectives

1. NCAER The India Infrastructure Report (Rakesh Mohan

25

\

Conunittee )

4. Department of Disinvestment, White Paper, 2000

5. Dilip MookheIjee, ed. (1995), Indian Industry, Oxford University Press, New Delhi.

•

26

Course 11: MONEY AND FINANCIAL MARKETS

I. Money in the Financial System Money and its functions; financial market~. financial instruments and money; Demand for money - various approaches, Money and Capital market, Financial deepening.

2. Money Supply Analysis 1beory of money supply; money multiplier analysis; monetary aggregates; monetary aggregates in India; financial innovations Central Bank's FW1ctiollS, Reserve!High Powel\,>d Money. Monetary Survey and Central Bank's Balance sheet.

3. Analysis of Interest Rates Interest rates in closed and open economies; Theories of term structure

4. Financial Markets Banking system, bond market. foreign exchange market, equity market Introduction to the concept of Derivatives Futures, Options, CallIPut.

5. Munetary Polic)' Goals, targets, indicators and the transmission mechanism; instruments of monetary policy .

• Ct. Monetary Management ill An Open Ec'Onomy

Intemational capital markets, portfolio diversification; the international monetary system; monetary policy in India's open economy; financial sector reforms in India. The Narasimhan1 Committee Report.

Headillgs

M.K. Lewis (2000). Monelary Economics, OUP

M.R. Baye, D.W. Jansen (1996), Money Banking and Financial Markels, AITBS, (Indian Edition)

27

\

3. Maurice Levi (1999), International Finance, Tata McGraw Hill

4. L.M. Bhole (1999), FinancialInstitutions and Markets, Tata Mcgraw Hill

5. R.B.I. BIIlletin. Annual Report; Report on Currency and Finance

6. R.B.I. - Report of the Committee on the Financial System (Narasimham Committee Report I)

7. R.B.I. - Report of the Committee on Banking Sector Reforms (Narasimham Committee Report II) Summary in RBI Bulletin, July, 1998.

8. R.B.I - Report of the Working Group: Money Supply Analytics and Methodology of Compilation, 1998.

9. Y. V. Reddy (2000), Monetary and Financial Sector Reforms in India UBSPD, New Delhi

28

Course 12: PUBLIC ECONOMICS

Part I: Theory

I. Fiscal functions: An overview 2. Tools of normative analysis: Pareto efficiency, equity and the social

welfare function; market failure 3. Public goods: definition, models of efficient allocation, pure and

impure public goods, free riding • 4. Externalities: The problem and its solutions. taxes versus regulation . '

property fights, the Coase Theorem 5. Taxation: Its economic effects; dead weight loss and distortion,

efficiency and equity considerations, tax incidence, optimal taxation 6. Fiscal federalism, the economic basis of decentralisation.

Part 1/: Indian Public Finances

I. TIle Indian tax system 2. Public expenditure in India: Its pattern and growth 3. Public debt, deficits and subsidies in the Indian economy 4. Centre-State financial relations

Readings

I. R.A. and P.B. Musgrave, (1989), Public Finance in Theory and Practice, McGraw Hill. '

2. ~arvey Rosen (1999), Public Finance, McGraw Hill.

3. John Cullis and Philip Jones (1998), Public Finance and Public Choice Oxford University Press. '

4. 1. Richard Aronson (1985), Public Finance, McGraw Hill.

5. Government of India (1992), Interim Report of the Tax Reforms Committec, Ministry of Finance.

29

6. R.J. Chelliah (1996), Towards Sustainable Growth, Oxford University Press.

7. Mihir Rikshit (2000), "On Correcting Fiscallmbalances in the Indian Economy: Some Perspectives", ICRA Bulle/in.

8. Mahesh Purohit (200 I), Value Added Tax, Gayatri Publications.

9. Rakesh Mohan (2000), "Fiscal Correction for Economic Growth: Data, Analysis and Suggestions", Economic and Political Weekly, June 10.

10. D.K. Joshi and J.L. Bajaj (1999), Government Finances, NCAER (minleo).

II. M.G. Rao and Tapas Sen (1996), Fiscal Federalism in India, Macmillan.

12. Government of India (2000), Report of the Eleventh Finance Commission.

13 . D.K. Srivastava (ed .) (2000), Fiscal Federalism in India: Con/emporary Challenges, Har Anand 'Publications, New Delhi.

30

Course 13: COMPARATIVE ECONOMIC DEVELOPMENT (1850-1950J

Perspectives on Comparative Economic Development: (a)Features of and trends in Modern Economic Growth - a brief discussion of Kuznets' findings (b) Gerschenkron's hypothesis of Economic Developm'~nt in Historical Perspective

An overview of economic development of the countries selected for case studies - Britain, Germany, U.S.A., Japan and USSR.

hanges in the structure of agriCUlture and economic development- Britain, Japan and U.S.S.R.

Role and pattern of industrialisation in Britain, Japan and U.S.S.R.

Labour markets and labour processes - Britain and Japan

financial institutions and economic development in Germany, U.S.Aand Japan

Foreign trade and economic development - Britain, Japan and USA.

Role of the State in economic development (regulatory and developmental I\lle)-Japan, USA and USSR.

Headings

G.C. Allen, "Industrialisation of the Far East" in Cambridge Economic' History of Europe (CEHE), Vol. VI, Part II,

I W.A. Cole, "The Growth of National Incomes", CEHE, Volume VI, Part 1.

1 Richard A. Easterlin, Davis and Parker (1 972) American Economic

31

\

Growth: An economist s History 0/ the United States. Harper & Row Chs. 1,9,14 and 17.

4. Phyllis Deane (1966). The First Industrial Revolution, Cambridge University Press, Ch.3

5. Phyllis Deane, "Greal Britain" Ch.3 in the Fontana Economic Hl:~rol')l o/Europe (FEHEJ. The Emergence o/Industrial Societies. Part one.

6. Maurice Dobb (1977), Soviet Economic Development since 19 ed.6, Routledge & Kegan Paul , Chs. 9, 10

7. A. Gerschenkron (1969), Economic Backwardness in Hij:torictl Perspective, Harvard University Press, Ch.1

8. Bertrand Gille, "Banking and Industrialization in Europe 1730-19 in FEHE. The Industrial Revolution. Vol. 3, Ch. 4.

9. Paul R Gregory and Robert C. Stuart (1986), Soviet EcclnOl"1 Structure and Performance, Harper & Row (3rd ed) Chs. &7.

10. Gregory Grossman, "Russia and the Soviet Union" in FEHE, Vol Part II, Ch. 8.

II. Y Hayami (1975), A Century 0/ Agricultural Growth in I're-WII

Japan: Its Relevance to Asian Development. UniversityoflMilnne:sol Press, Chs. I, 3, and 8.

12. EJ. Hobsbawm (1968), Industry and Empire: An Economic o/Britain since 1750. Weidenfeld & Nicholson; Chs.1 ,2,3,5,6.

13. E.J. Hobsbawm (1984), World 0/ Labour: Further studies in history o/Iabour. London Weidenfeld & Nicholson. Ch. II

14. Chalmers Johnson (1982), MIT! and the Japanese Miracle:

32

• (jrowtho{lndustrial Policy 1925-1975, Stanford University Press. Chs.I,9.

15. Okochi, Kai-sh and Levine (1965), Workers and Employees in Japan. The Japanese Employment relations jystem, University of Tokyo Ch.13 . .

16. Simon Kuznets, Economic Growth and Structure, Oxford & IBH, Ch.l.

17. Simon Kuznets (1966). Modern Economic Growth: Rate. Structure & Spread, Yale University Press, Ch 10.

18. W. W. Lockwood (ed) (1965), State and Economic Enterprise in Japan, Pnnceton University Press, Ch.2. 195-215.

It). W. W. Lock",ood (.1966), Economic Development 0/ Japan, Expanded edltJOn. Pnnceton University Press, Chs.6,7 & 10

'0. Peter Mathias (1983), The First Industrial Nation. An Economic History 0/ Britain. 1700-19/-1. 20d edn, Methuen Chs. 1,3,8 and 15.

, I. Roderick Floud and D. McCloskey (ed) (1981). Economic History (if Br/lQ/n Smce 1700. Cambridge University Press, (2nd ed) Ch. 12.

, T. Nakamura (1983) Economic Growth in Pre-War Japan, Tr. by Robert A Feldman, Yale University Press, Chs. 1,2.3.5 and 6.

'I. Alec Nove (1969) An Economic History 0/ USSR, Penguin, 1969. Chs.5,6, 7 ,8,9.

-I. • idney Pollard, "Labour in Great Britain" in CEHE, ch3. Vol. VII. Part I.

I, Michael Piore and Charles Sabel The Second IndUSTrial Divide: Possibilities/or Prosperity. Basic Books.

33

J

\ .

26. Richard Tilly, "German Banking" in Journal of European Econoll/II

History, 1986. Vol. 1 S. No.!.

27. William Woodruff, "Emergence oflntemational Economy 1700-191·r

inFEHE.

34

I.

• Course 14: INTRODUCTORY ECONOMETRlCS

Natllre alld scape of econometrics

Review of Statistics (1) Descriptive statistics: (a) the univariate case. (b) the bivariate case; (2) Random Variables and Probability distributions; (3) Estimation of parameters; Testing of hypotheses

t. Classical Linear Regression Model: Two Variable Case (i) DescriptiveAspects (ii) Properties of Least Squares estimates; tests of hypotheses and

confidence intervals; Gauss - Markov Theorem (iii) Forecasting

~. Classical Multiple Linear Regression Model. (i) Descriptive Aspects: Least Squares Estimation; R' and

Adjusted R' ; Partial Correlations (ii) The Classical Model : Gauss - Markov Theorem; Standard

En'orof Estimate Standard errors of regression coefficients (iii) Tests of Hypotheses : Single Parameters; Sets of Parameters (iv) Forecasting (v) Functional Forms of Regression Models (vi) DummyVariables

1. Vlolatiolls of C1assicalAssllmptiolls alld Remedies

n.

(i) Multicollinearity (ii) Heteroscedasticity (iii)Auto-correlation

Specification AI/alysis (i) Omission ofa relevant variable (ii) Inclusion of irrelevant variable (iii) Tests of Specification Errors

3S

\

7. Simple Applications of Least Squares (i) Estimation of Engel Functions (ii) Estimation of Cobb-Douglas Production function (iii) Estimation of Consumption function

Readings

1. D Gujarati (1999), Essentials o/Econometrics, McGraw Ilill.

2. A.S . Goldberger (1998), IntrodllclOry Econometrics, Harvard University Press, Cambridge.

36

• Course 15: TOPICS TN MICROECONOMICS

I. Decision theory /wder uncertainty

1. Bilsic notions of lion-cooperative gallle theory Complete information games in extensive from (relatively informal

introduction) and strategic form; pure and mixed strategies; dominant strategies equilibrium, Nash equiti brium and subgame perfect equi librium.

I. Applications of material ill Sectioll 2 Cournot, Bertrand, Stackelberg, Hotelling. Prisoners' Dilemma, Centipede, Battle of the Sexes, Chicken. Simple dynamic game (e.g. entry deterrence), Auctions (sealed-bid first price. sealed bid second price, English, Dutch), etc.

4. Incomplete information games I. Moral hazard problems n. Adverse selection problems I. Sigllaling games

L.M.B. Cabral, (2000) Introduction to industrial Organization, MIT Press.

P. K. Dutla ( 1999) Strategies and Games: Theory and Practice: MIT Press.

1:. . Rasmusen (1994) Games and Information: An Introduction to Callie Theory. 2'~ Edition, Black well.

37

Course 16: TOPICS IN MACROECONOMICS

1. Mathematical Prerequisites: Difference equations; differential equations; phase plane dynamic optimization

2. Growth Theory: Solow model; optimal growth; overlapping generations mc,del~ endogenous growth

3. Rational Expectations: Lucas critique; policy ineffectiveness; time inconsiste, ·cy; Domb'lIsc:h overshooting model

4. New Keynesian Models: (a) Real anci nominal price rigidity: menu costs.; co-ordination failurel

imperfect competition (b) Real and nominal wage rigidity: insider-outsider models; effiicienc

wages; implicit contracts.

5. NOll Walrasian Economics: Dual ?ecisiol1 hypothesis; Keynesian and Classical unemployment

6. Structuralist Macroecollomics: Closed and open economy structuralist models.

Readings (

I. M. Hoy, J. Livernois, C. McKenna, R. Rees, T. Stengos (I Mathematics/or Economics, Addison-Wesley.

2. A.C. Chiang (1992), Elements 0/ Dynamic Optimization, 'V"'U'lI Hill.

3. C. Jones (1998), Introduction to Economic Growth, Norton.

38

4. O. Blanchard and S. Fischer (1989). Lectures on Macroeconomics. MIT. •

S. W. Scarth (1996), Macroeconomics, Dryden.

6. S. Sheffrin (1996), Rational Expectations, Cambridge University Press.

7. R. Dornbusch (1980). Open Economy Macroeconomics. Basic Books.

8. N. Mankiwand D. Romer (/991), ed., New Keynesian Economies, MIT, 2 volumes. Selected Readings.

9. W. Branson (1989), Macroeconomic Theory and Policy. 3"' Edition, Harper Collins.

10. L. Taylor (1991). Income Distribution, Injlation and Growth, MIT.

•

39

I.

Course 17: INTERNATIONAL ECONOM les

Part I

The subject matter of international economics. Comparative advantage: Ricardian. specific-factors, and He<cks~hl!r-()I models. , Tenns of trade. immiserising growth. and the transfer' problem.

ew trade theories: economics of scale and imperfect competition. International factor movements: labour migration and fOrf:ign investment Trade policy and welfare. with special reference to developing COWltri TIle international trading system: wro and preferentiallrading agr'eelneJlII

Part II

Review of national income and balance of payments accoWlting. The foreign exchange market and exchange rate determination. Open e<eonomy macro-economics: Detennination of output, interest and exchange rates in the long and short runs. Macro-economic policy in an open economy and international coordination: fixed and flexible exchange rates. International monetary institutions and issues: IMF. currency stabilization and other contemporary issues.

Readings:

I. Paul Krugman and Maurice Obstfeld. international c-cof1(}mlrG! Theory and policy. latest edit ion. Pearson Education lo~v-plnce elOrllCl distributed in India by Addison-Wesley Longman.

2. W.M. Corden (1974), Trade Policy and Welfare, Clarendon , Chapters 1,2 and 9. •

3. T.N. Srinivasan (1998), Developing Countries and the JIIlL"'"U,"'"

Trading System, OUP, Delhi, Chapters 5-8.

4. Amitav K. Dutt (1995). "The Open Economy" in Prabhat Patnaik Macro-economics, OUP, Delhi .

_I ;;.1

40

1

B.A. (HONOURS) ECONOMICS

(Three Year Full Time Programme)

COURSE CONTENTS (Effective from the Academic Year 2011-2012 onwards)

DEPARTMENT OF ECONOMICS

UNIVERSITY OF DELHI DELHI – 110007.

2

University of Delhi

Course: B.A. (Hons.) Economics

Semester I

Paper 01 – Introductory Microeconomics Paper 02- Statistical Methods in Economics-I Paper 03 - Mathematical Methods for Economics-I Paper 04 - Concurrent – Qualifying Language

Semester II

Paper 05 – Introductory Macroeconomics Paper 06 – Statistical Methods in Economics-II Paper 07 - Mathematical Methods for Economics-II Paper 08 - Concurrent – Credit Language

Semester III Paper 09 – Intermediate Microeconomics-I Paper 10 – Intermediate Macroeconomics-I Paper 11 - Economic History of India: 1857-1947 Paper 12 - Introductory Econometrics Paper 13 - Concurrent – Interdisciplinary

Semester IV

Paper 14- Intermediate Microeconomics-II Paper 15 - Intermediate Macroeconomics-II Paper 16 – Economy, State and Society

Paper 17 - Indian Economic Development since 1947 - I

Paper 18 - Concurrent – Discipline Centered I

Semester V Paper 19- Indian Economic Development since 1947 - II Paper 20 – Development Theory and Experience-I Paper 21 – Public Economics Paper 22 – Option -I (any one from List of Group-I) Group-I 22A - Economics of Health and Education 22B - Political Economy 22C - Topics in Microeconomics-I 22D - Advanced Macroeconomics 22 E - Money and Financial Markets

3

Semester VI

Paper 23 – International Economics Paper 24- Development Theory and Experience-II Paper 25- Option-II (any one from List of Group-II) Group – II 25A - Comparative Economic Development: 1850- 1950 25B - Applied Econometrics 25C - Topics in Microeconomics-II 25D - Financial Economics 25E - Environmental Economics Paper 26 - Concurrent – Discipline Centered II

4

SEMESTER BASED UNDER-GRADUATE HONOURS COURSES Distribution of Marks & Teaching Hours

The Semester-wise distribution of papers for the B.A. (Honours), B.Com. (Honours), B. Com., B.Sc. (Honours) Statistics and B.Sc. (Honours) Computer Science will be as follows:

Type of Paper Max. Marks Theory Exam.

I.A. Teaching per week

Main Papers 100 75 25 5 Lectures 1 Tutorial

Concurrent Courses 100 75 25 4 Lectures 1 Tutorial

Credit Courses for B.Sc.(Hons.) Mathematics

100 75 25 4 Lectures 1 Tutorial

Size of the Tutorial Group will be in accordance with the existing norms.

The existing syllabi of all Concurrent/Credit Courses shall remain unchanged.

The existing criteria for opting for the Concurrent /Credit Courses shall also

remain unchanged.

5

Paper 01: INTRODUCTORY MICROECONOMICS

Course Description This course is designed to expose first-year students, who may be new to economics, the basic principles of microeconomic theory. The emphasis will be on thinking like an economist and the course will illustrate how microeconomic concepts can be applied to analyse real-life situations. Course Outline

1. Exploring the subject matter of Economics Why study economics? The scope and method of economics; scarcity and choice; questions of what, how and for whom to produce and how to distribute output; the basic competitive model; prices, property rights and profits; incentives and information; rationing; opportunity sets; economic systems; reading and working with graphs. 2. Supply and Demand: How Markets Work, Markets and Welfare Individual demand and supply schedules and the derivation of market demand and supply; shifts in demand and supply curves; the role prices in resource allocation; the concept of elasticity and its application; consumer and producer surplus; taxes and their efficiency costs 3. Households The consumption decision: preferences and their representation with indifference curves; budget constraints; a consumer’s optimum choice; income and substitution effects; labour supply and savings decisions. 4. Firms and Perfect Market Structure Behaviour of profit maximizing firms and the production process; short-run costs and output decisions; costs and output in the long run. 5. Imperfect Market Structure Monopoly and anti-trust policy; government policies towards competition; imperfect competition. 6. Input Markets Labour and land markets; concepts of derived demand, input productivity and marginal revenue product and input demand curves; competitive input markets and public policy. Readings

1. Karl E. Case and Ray C. Fair, Principles of Economics, Pearson Education, Inc., 8th edition, 2007.

2. N. Gregory Mankiw, Economics: Principles and Applications, India edition by South Western, a part of Cengage Learning, Cengage Learning India Private Limited, 4th edition, 2007.

3. Joseph E. Stiglitz and Carl E. Walsh, Economics, W.W. Norton & Company, Inc., New York, International Student Edition, 4th edition, 2007.

6

Paper 02: STATISTICAL METHODS IN ECONOMICS –I

Course Description This is the first of a two-part sequence on statistical methods. It begins with some basic concepts and terminology that are fundamental to statistical analysis and inference. It then develops the notion of probability, followed by probability distributions of discrete and continuous random variables. The semester concludes with a discussion of joint distributions. Course Outline 1. Introduction and Overview The distinction between populations and samples and between population parameters and sample statistics; the use of measures of location and variation to describe and summarize data; population moments and their sample counterparts. 2. Elementary Probability Theory Sample spaces and events; probability axioms and properties; counting techniques; conditional probability and Bayes’ rule; independence. 3. Random Variables and Probability Distributions Defining random variables; probability distributions; expected values of random variables and of functions of random variables; properties of commonly used discrete and continuous distributions (uniform, binomial, normal, poisson and exponential random variables). 4. Random Sampling and Jointly Distributed Random Variables Density and distribution functions for jointly distributed random variables; computing expected values; covariance and correlation coefficients. Readings:

1. Jay L. Devore, Probability and Statistics for Engineers, Cengage Learning, 2010. 2. John E. Freund, Mathematical Statistics, Prentice Hall, 1992. 3. Richard J. Larsen and Morris L. Marx, An Introduction to Mathematical Statistics and its

Applications, Prentice Hall, 2011.

7

Paper 03: MATHEMATICAL METHODS IN ECONOMICS –I Course Description This is the first of a compulsory two-course sequence. The objective of this sequence is to transmit the body of basic mathematics that enables the study of economic theory at the undergraduate level, specifically the courses on microeconomic theory, macroeconomic theory, statistics and econometrics set out in this syllabus. In this course, particular economic models are not the ends, but the means for illustrating the method of applying mathematical techniques to economic theory in general. The level of sophistication at which the material is to be taught is indicated by the contents of the prescribed textbook. Course Outline 1. Preliminaries Logic and proof techniques; sets and set operations; relations; functions and their properties; number systems. 2. Functions of one real variable Graphs; elementary types of functions: quadratic, polynomial, power, exponential, logarithmic; sequences and series: convergence, algebraic properties and applications; continuous functions: characterizations, properties with respect to various operations and applications; differentiable functions: characterizations, properties with respect to various operations and applications; second and higher order derivatives: properties and applications. 3. Single-variable optimization Geometric properties of functions: convex functions, their characterizations and applications; local and global optima: geometric characterizations, characterizations using calculus and applications. 4. Integration of functions Areas under curves; indefinite integrals; the definite integral. 5. Difference equations First order difference equations. Readings:

K. Sydsaeter and P. Hammond, Mathematics for Economic Analysis, Pearson Educational Asia, Delhi, 2002.

8

PAPER 04

CONCURRENT - QUALIFYING LANGUAGE

9

Paper 05: INTRODUCTORY MACROECONOMICS

Course Description This course aims to introduce the first year students to the basic concepts of macroeconomics. Macroeconomics deals with the aggregate economy. This course discusses the preliminary concepts associated with the determination and measurement of aggregate macroeconomic variable like savings, investment, GDP, money, inflation, and the balance of payments. Course Outline

1. Introduction to Macroeconomics and National Income Accounting Basic issues studied in macroeconomics; measurement of gross domestic product; income, expenditure and the circular flow; real versus nominal GDP; price indices; national income accounting for an open economy; balance of payments: current and capital accounts.

2. Money Functions of money; quantity theory of money; determination of money supply and demand; credit creation; tools of monetary policy.

3. Inflation Inflation and its social costs; hyperinflation.

4. The Closed Economy in the Short Run Classical and Keynesian systems; simple Keynesian model of income determination; IS-LM model; fiscal and monetary multipliers. Readings:

1. Dornbusch, Fischer and Startz, Macroeconomics, McGraw Hill, 11th edition, 2010. 2. N. Gregory Mankiw. Macroeconomics, Worth Publishers, 7th edition, 2010. 3. Olivier Blanchard, Macroeconomics, Pearson Education, Inc., 5th edition, 2009. 4. Richard T. Froyen, Macroeconomics, Pearson Education Asia, 2nd edition, 2005. 5. Andrew B. Abel and Ben S. Bernanke, Macroeconomics, Pearson Education, Inc., 7th edition, 2011.

6. Errol D’Souza, Macroeconomics, Pearson Education, 2009. 7. Paul R. Krugman, Maurice Obstfeld and Marc Melitz, International Economics, Pearson Education Asia, 9th edition, 2012.

10

Paper 06: STATISTICAL METHODS IN ECONOMICS - II

Course Description This is the second course in the two part sequence on statistical methods. It begins with a discussion on sampling techniques used to collect survey data. It introduces the notion of sampling distributions that act as a bridge between probability theory and statistical inference. It then covers topics in inference that include point estimation, statistical intervals and hypothesis testing. It concludes with a discussion of the simple linear regression model. Course Outline 1. Sampling Principal steps in a sample survey; methods of sampling; the role of sampling theory; properties of random samples. 2. Point and Interval Estimation Estimation of population parameters using methods of moments and maximum likelihood procedures; properties of estimators; confidence intervals for population parameters. 3. Hypothesis Testing Defining statistical hypotheses; distributions of test statistics; testing hypotheses related to population parameters; Type I and Type II errors; power of a test; tests for comparing parameters from two samples. 4. Simple Linear Regression Estimation of the slope and intercept parameters; inference and prediction. Readings:

1. Jay L. Devore, Probability and Statistics for Engineers, Cengage Learning, 2010. 2. William G. Cochran, Sampling Techniques, John Wiley, 2007. 3. Richard J. Larsen and Morris L. Marx, An Introduction to Mathematical Statistics and its


11

Paper 07: MATHEMATICAL METHODS IN ECONOMICS - II

Course Description This course is the second part of a compulsory two-course sequence. This part is to be taught in Semester II following the first part in Semester I. The first course covered single variable functions and optimization and this course covers the essentials of linear algebra and optimization techniques required for the analysis of functions of several variables that are commonly used in economics. Course Outline 1. Differential equations First-order differential equations; integral curve, direction diagram and slope field; qualitative theory and stability. 2. Linear algebra Vector spaces: algebraic and geometric properties, scalar products, norms, orthogonality; linear transformations: properties, matrix representations and elementary operations; systems of linear equations: properties of their solution sets; determinants: characterization, properties and applications. 3. Functions of several real variables Geometric representations: graphs and level curves; differentiable functions: characterizations, properties with respect to various operations and applications; second order derivatives: properties and applications; the implicit function theorem, and application to comparative statics problems; homogeneous and homothetic functions: characterizations and applications. 4. Multi-variable optimization Convex sets; geometric properties of functions: convex functions, their characterizations, properties and applications; further geometric properties of functions: quasiconvex functions, their characterizations, properties and applications; unconstrained optimization: geometric characterizations, characterizations using calculus and applications; constrained optimization with equality constraints: geometric characterizations, Lagrange characterization using calculus and applications; properties of value function: envelope theorem and applications. Readings:

K. Sydsaeter and P. Hammond, Mathematics for Economic Analysis, Pearson Educational Asia, Delhi, 2002.

12

PAPER 08

CONCURRENT – CREDIT LANGUAGE

13

Paper 09: INTERMEDIATE MICROECONOMICS - I

Course Description The course is designed to provide a sound training in microeconomic theory. Since students are already familiar with the quantitative techniques in the previous semesters, mathematical tools are used to facilitate understanding of the basic concepts. This course looks at the behaviour of the consumer and the producer and also covers the behaviour of a competitive firm. Course Outline 1. Consumer Theory Preference; utility; budget constraint; choice; demand; Slutsky equation; buying and selling; choice under risk and intertemporal choice; revealed preference. 2. Production, Costs and Perfect Competition Technology; isoquants; production with one and more variable inputs; returns to scale; short run and long run costs; cost curves in the short run and long run; review of perfect competition. Readings:

1. Hal R. Varian, Intermediate Microeconomics: A Modern Approach, W.W. Norton and Company/Affiliated East-West Press (India), 8th edition, 2010. The workbook by Varian and Bergstrom may be used for problems.

2. C. Snyder and W. Nicholson, Fundamentals of Microeconomics, Cengage Learning (India), 2010.

3. B. Douglas Bernheim and Michael D. Whinston, Microeconomics, Tata McGraw-Hill (India), 2009.

14

Paper 10: INTERMEDIATE MACROECONOMICS - I

Course Description This course introduces the students to formal modeling of a macro-economy in terms of analytical tools. It discusses various alternative theories of output and employment determination in a closed economy in the short run as well as medium run, and the role of policy in this context. It also introduces the students to various theoretical issues related to an open economy. Course Outline 1. Aggregate Demand and Aggregate Supply Curves Derivation of aggregate demand and aggregate and supply curves; interaction of aggregate demand and supply.

2. Inflation, Unemployment and Expectations Phillips curve; adaptive and rational expectations; policy ineffectiveness debate.

3. Open Economy Models Short-run open economy models; Mundell-Fleming model; exchange rate determination; purchasing power parity; asset market approach; Dornbusch's overshooting model; monetary approach to balance of payments; international financial markets.

Readings:

1. Dornbusch, Fischer and Startz, Macroeconomics, McGraw Hill, 11th edition, 2010. 2. N. Gregory Mankiw. Macroeconomics, Worth Publishers, 7th edition, 2010. 3. Olivier Blanchard, Macroeconomics, Pearson Education, Inc., 5th edition, 2009. 4. Steven M. Sheffrin, Rational Expectations, Cambridge University Press, 2nd edition, 1996.

5. Andrew B. Abel and Ben S. Bernanke, Macroeconomics, Pearson Education, Inc., 7th edition, 2011.

6. Errol D’Souza, Macroeconomics, Pearson Education, 2009 7. Paul R. Krugman, Maurice Obstfeld and Marc Melitz, International Economics, Pearson Education Asia, 9th edition, 2012.

15

Paper 11: ECONOMIC HISTORY OF INDIA: 1857-1947

Course Description This course analyses key aspects of Indian economic development during the second half of British colonial rule. In doing so, it investigates the place of the Indian economy in the wider colonial context, and the mechanisms that linked economic development in India to the compulsions of colonial rule. This course links directly to the course on India’s economic development after independence in 1947. Course Outline 1. Introduction: Colonial India: Background and Introduction Overview of colonial economy.

2. Macro Trends National Income; population; occupational structure.

3. Agriculture Agrarian structure and land relations; agricultural markets and institutions – credit, commerce and technology; trends in performance and productivity; famines.

4. Railways and Industry Railways; the de-industrialisation debate; evolution of entrepreneurial and industrial structure; nature of industrialisation in the interwar period; constraints to industrial breakthrough; labor relations.

5. Economy and State in the Imperial Context The imperial priorities and the Indian economy; drain of wealth; international trade, capital flows and the colonial economy – changes and continuities; government and fiscal policy. Readings:

1. Lakshmi Subramanian, History of India 1707-1857, Orient Blackswan, 2010, Chapter 4. 2. Sumit Guha, 1991, “Mortality decline in Early 20th Century India”, Indian Economic and

Social History Review (IESHR), pp. 371-74 and 385-87. 3. Tirthankar Roy, The Economic History of India 1857-1947, Oxford University Press, 3rd

edition, 2011. 4. J. Krishnamurty, Occupational Structure, Dharma Kumar (editor), The Cambridge

Economic History of India, Vol. II, (henceforth referred to as CEHI), 2005, Chapter 6. 5. Irfan Habib, Indian Economy 1858-1914: A People’s History of India, Vol.28, Tulika,

2006. 6. Ira Klein, 1984, “When Rains Fail: Famine Relief and Mortality in British India”, IESHR,

21. 7. Jean Dreze, Famine Prevention in India in Dreze and Sen (eds.) Political Economy of

Hunger, WIDER Studies in Development Economics, 1990, pp.13-35.

16

8. John Hurd, Railways, CEHI, Chapter 8, pp.737-761. 9. Rajat Ray (ed.), Entrepreneurship and Industry in India, 1994. 10. AK Bagchi, 1976, “Deindustrialization in India in the Nineteenth century: Some

Theoretical Implications”, Journal of Development Studies. 11. MD Morris, Emergence of an Industrial Labour Force in India, Oxford University Press,

1965, Chapter 11, Summary and Conclusions. 12. K.N. Chaudhuri, Foreign Trade and Balance of Payments, CEHI, Chapter 10. 13. B.R. Tomlison, 1975, India and the British Empire 1880-1935, IESHR, Vol.XII. 14. Dharma Kumar, The Fiscal System, CEHI, Chapter 12. 15. Basudev Chatterjee, Trade, Tariffs and Empire, Oxford University Press, 1992, Epilogue.

Background reading for students: Irfan Habib, Indian Economy 1858-1914: A People’s History of India, Vol.28, Tulika 2006. Daniel Thorner, Agrarian Prospect in India, 1977. L. Visaria and P. Visaria, Population, CEHI, Chapter 5.

17

Paper 12: INTRODUCTORY ECONOMETRICS

Course Description This course provides a comprehensive introduction to basic econometric concepts and techniques. It covers estimation and diagnostic testing of simple and multiple regression models. The course also covers the consequences of and tests for misspecification of regression models. Course Outline 1. Nature and Scope of Econometrics

2. Statistical Concepts Normal distribution; chi-sq, t- and F-distributions; estimation of parameters; properties of estimators; testing of hypotheses.

3. Simple Linear Regression Model: Two Variable Case Estimation of model by method of ordinary least squares; properties of estimators; goodness of fit; tests of hypotheses; scaling and units of measurement; confidence intervals; Gauss-Markov theorem; forecasting.

4. Multiple Linear Regression Model Estimation of parameters; properties of OLS estimators; goodness of fit - R2 and adjusted R2; partial regression coefficients; testing hypotheses – individual and joint; functional forms of regression models; qualitative (dummy) independent variables.

5. Violations of Classical Assumptions: Consequences, Detection and Remedies Multicollinearity; heteroscedasticity; serial correlation.

6. Specification Analysis Omission of a relevant variable; inclusion of irrelevant variable; tests of specification errors.

Readings

1. D. N. Gujarati and D.C. Porter, Essentials of Econometrics, McGraw Hill, 4th edition, International Edition, 2009.

2. Christopher Dougherty, Introduction to Econometrics, Oxford University Press, 3rd edition, Indian Edition, 2007.

3. Jan Kmenta, Elements of Econometrics, Indian Reprint, Khosla Publishing House, 2nd edition, 2008.

18

PAPER 13

CONCURRENT – INTERDISCIPLINARY

19

Paper 14: INTERMEDIATE MICROECONOMICS - II

Course Description This course is a sequel to Intermediate Microeconomics I. The emphasis will be on giving conceptual clarity to the student coupled with the use of mathematical tools and reasoning. It covers general equilibrium and welfare, imperfect markets and topics under information economics. Course Outline 1. General Equilibrium, Efficiency and Welfare Equilibrium and efficiency under pure exchange and production; overall efficiency and welfare economics. 2. Market Structure and Game Theory Monopoly; pricing with market power; price discrimination; peak-load pricing; two-part tariff; monopolistic competition and oligopoly; game theory and competitive strategy. 3. Market Failure Externalities; public goods and markets with asymmetric information. Readings:

1. Hal R. Varian, Intermediate Microeconomics: A Modern Approach, 8th edition, W.W. Norton and Company/Affiliated East-West Press (India), 2010.The workbook by Varian and Bergstrom could be used for problems.

2. C. Snyder and W. Nicholson, Fundamentals of Microeconomics, Cengage Learning (India), 2010.

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Paper 15: INTERMEDIATE MACROECONOMICS - II

Course Description This course is a sequel to Intermediate Macroeconomics I. In this course, the students are introduced to the long run dynamic issues like growth and technical progress. It also provides the micro foundations to the various aggregative concepts used in the previous course. Course Outline 1. Economic Growth Harrod-Domar model; Solow model; golden rule; techonological progress and elements of endogenous growth.

2. Microeconomic Foundations a. Consumption: Keynesian consumption function; Fisher’s theory of optimal intertemporal

choice; life-cycle and permanent income hypotheses; rational expectations and random-walk of consumption expenditure.

b. Investment: determinants of business fixed investment; residential investment and inventory

investment. c. Demand for money.

3. Fiscal and Monetary Policy Active or passive; monetary policy objectives and targets; rules versus discretion: time consistency; the government budget constraint; government debt and Ricardian equivalence. 4. Schools of Macroeconomic Thoughts Classicals; Keynesians; New-Classicals and New-Keynesians.

Readings:

1. Dornbusch, Fischer and Startz, Macroeconomics, McGraw Hill, 11th edition, 2010. 2. N. Gregory Mankiw. Macroeconomics, Worth Publishers, 7th edition, 2010. 3. Olivier Blanchard, Macroeconomics, Pearson Education, Inc., 5th edition, 2009. 4. Charles I. Jones, Introduction to Economic Growth, W.W. Norton & Company, 2nd edition,

2002. 5. Andrew B. Abel and Ben S. Bernanke, Macroeconomics, Pearson Education, Inc., 7th

edition, 2011. 6. Errol. D’Souza, Macroeconomics, Pearson Education, 2009. 7. Robert J. Gordon, Macroeconomics, Prentice-Hall India Limited, 2011.

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Paper 16: ECONOMY, STATE AND SOCIETY

Course Description Employing perspectives from alternative schools of thought, this course explores the development of the structure and institutions of capitalist economies and their relationship to social and political forces. Students are expected to read some classic texts as well as more recent commentaries. Course Outline 1. Analysing Social Change in Historical Perspective The method of historical materialism; the transition from feudalism to capitalism; capitalism as a historical process – alternative perspectives. 2. Capitalism as an Evolving Economic System Basic features; accumulation and crisis; the modern corporation; monopoly capitalism—alternative perspectives. 3. The State in Capitalism The state and the economy – contestation and mutual interdependence; the state as an arena of conflict; imperialism – the basic foundations. Readings:

1. J. Gurley, 1978, "The Materialist Conception of History", Ch.2.1 in R. Edwards, M. Reich and T. Weisskopf (ed.), The Capitalist System, 2nd edition.

2. O. Lange, Political Economy, Vol. 1, 1963, Chapters 1 and 2. 3. E.K. Hunt, History of Economic Thought, M.E. Sharpe, Indian edition, Shilpi

Publications, 2004. 4. Irfan Habib, 1995, "Capitalism in History", Social Scientist, Vol. 23, pp. 15-31. 5. R.L. Heilbroner, 1987, "Capitalism", in The New Palgrave Dictionary of Modern

Economics, Macmillan. Also reprinted as Chapter 2 in Behind the Veil of Economics by R.L. Heilbroner, W.W. Norton, 1988.

6. P. Sweezy, The Theory of Capitalist Development, Monthly Review Press, 1942, chapters 2, 4, 5, 6, 8 and 10.

7. Anwar Shaikh, 2000, Entries on "Economic Crises" and "Falling Rate of Profit" in T. Bottomore et al. (eds.), The Dictionary of Marxist Thought, OUP, Indian edition, Maya Blackwell.

8. Vamsi Vakulabharanam, 2009, “The Recent Crisis in Global Capitalism: Towards a Marxian Understanding”, Economic and Political Weekly, March 28, Vol. 44, pp. 144-150.

9. J. Schumpeter, Capitalism, Socialism and Democracy, George Allen and Unwin 1976, Chapters 6, 7 and 8.

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10. P. Baran (1957), The Political Economy of Growth, Chapter 3, Pelican edition, 1973. 11. R. Heilbroner, 1985, “The Role of the State”, Ch.4 in The Nature and Logic of

Capitalism. 12. M. Kalecki, 1972, “Political Aspects of Full Employment”, in E.K. Hunt and J.G.

Schwarz (eds.), A Critique of Economic Theory, Penguin Books. 13. Amit Bhaduri, 2002, “Nationalism and Economic Policy in the Era of Globalization”, Ch.

2 in Deepak Nayyar (ed.), Governing Globalization: Issues and Institutions, Oxford University Press [also WIDER Working Paper no.188, WIDER website (2000)].

14. Prabhat Patnaik, 1986, “Introduction”, in Lenin and Imperialism, Orient Longman. 15. James O'Connor, 1970, "The Meaning of Economic Imperialism", in Robert Rhodes, ed.,

Imperialism and Underdevelopment, New York: Monthly Review Press, pp. 101 to 111.

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Paper 17: INDIAN ECONOMIC DEVELOPMENT SINCE 1947 - I

Course Description Using appropriate analytical frameworks, this course reviews major trends in economic indicators and policy debates in India in the post-Independence period, with particular emphasis on paradigm shifts and turning points. Course Outline 1. Economic Development since Independence Major features of the economy at independence; growth and development under different policy regimes—goals, constraints, institutions and policy framework; an assessment of performance—sustainability and regional contrasts; structural change, savings and investment. 2. Population and Human Development Demographic trends and issues; education; health and malnutrition. 3. Growth and Distribution Trends and policies in poverty; inequality and unemployment. 4. International Comparisons Readings:

1. Jean Dreze and Amartya Sen, India: Development and Participation, Oxford University Press, 2nd edition, 2002.

2. Pulapre Balakrishnan, 2007, “The Recovery of India: Economic Growth in the Nehru Era”, Economic and Political Weekly, November.

3. Rakesh Mohan, 2008, “Growth Record of Indian Economy: 1950-2008. A Story of Sustained Savings and Investment”, Economic and Political Weekly, May.

4. S.L. Shetty, 2007, “India’s Savings Performance since the Advent of Planning”, in K.L. Krishna and A. Vaidyanathan, editors, Institutions and Markets in India’s Development.

5. Himanshu, 2010, “Towards New Poverty Lines for India”, Economic and Political Weekly, January.

6. Jean Dreze and Angus Deaton, 2009, “Food and Nutrition in India: Facts and Intepretations”, Economic and Political Weekly, February.

7. Himanshu, 2011, “Employment Trends in India: A Re-examination”, Economic and Political Weekly, September.

8. Rama Baru et al., 2010, “Inequities in Access to Health Services in India: Caste, Class and Region”, Economic and Political Weekly, September.

9. Geeta G. Kingdon, 2007, “The Progress of School Education in India”, Oxford Review of Economic Policy.

10. J.B.G. Tilak, 2007, “Post Elementary Education, Poverty and Development in India”, International Journal of Educational Development.

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11. T. Dyson, 2008, “India’s Demographic Transition and its Consequences for Development” in Uma Kapila, editor, Indian Economy Since Independence ,19th edition, Academic Foundation.

12. Kaushik Basu, 2009, “China and India: Idiosyncratic Paths to High Growth”, Economic and Political Weekly, September.

13. K. James, 2008, “Glorifying Malthus: Current Debate on Demographic Dividend in India”, Economic and Political Weekly, June.

14. Reetika Khera, 2011, “India’s Public Distribution System: Utilisation and Impact”, Journal of Development Studies.

15. Aniruddha Krishna and Devendra Bajpai, 2011, “Lineal Spread and Radial Dissipation: Experiencing Growth in Rural India, 1992-2005”, Economic and Political Weekly, September.

16. Kaushik Basu, 2012, editor, The New Oxford Companion to Economics, Oxford University Press.

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PAPER 18

CONCURRENT – DISCIPLINE CENTERED – I

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Paper 19: INDIAN ECONOMIC DEVELOPMENT SINCE 1947 - II

Course Description This course examines sector-specific polices and their impact in shaping trends in key economic indicators in India. It highlights major policy debates and evaluates the Indian empirical evidence. Course Outline 1. Macroeconomic Policies and Their Impact Fiscal Policy; trade and investment policy; financial and monetary policies; labour regulation. 2. Policies and Performance in Agriculture Growth; productivity; agrarian structure and technology; capital formation; trade; pricing and procurement. 3. Policies and Performance in Industry Growth; productivity; diversification; small scale industries; public sector; competition policy; foreign investment. 4. Trends and Performance in Services Readings:

1. Shankar Acharya, 2010, “Macroeconomic Performance and Policies 2000-8”, in Shankar Acharya and Rakesh Mohan, editors, India’s Economy: Performances and Challenges: Development and Participation, Oxford University Press.

2. Rakesh Mohan, 2010, “India’s Financial Sector and Monetary Policy Reforms”, in Shankar Acharya and Rakesh Mohan, editors, India’s Economy: Performances and Challenges: Development and Participation, Oxford University Press.

3. Pulapre Balakrishnan, Ramesh Golait and Pankaj Kumar, 2008, “Agricultural Growth in India Since 1991”, RBI DEAP Study no. 27.

4. B.N. Goldar and S.C. Aggarwal, 2005, “Trade Liberalisation and Price-Cost Margin in Indian Industries”, The Developing Economics, September.

5. P. Goldberg, A. Khandelwal, N. Pavcnik and P. Topalova, 2009, “Trade Liberalisation and New Imported Inputs”, American Economic Review, Papers and Proceedings, May.

6. Kunal Sen, 2010, “Trade, Foreign Direct Investment and Industrial Transformation in India”, ïn Premachandra Athukorala, editor, The Rise of Asia, Routledge.

7. A. Ahsan, C. Pages and T. Roy, 2008, “Legislation, Enforcement and Adjudication in Indian Labour Markets: Origins, Consequences and the Way Forward”, in D. Mazumdar and S. Sarkar, editors, Globalization, Labour Markets and Inequality in India, Routledge.

8. Dipak Mazumdar and Sandeep Sarkar, 2009, “The Employment Problem in India and the Phenomenon of the Missing Middle”, Indian Journal of Labour Economics.

9. J. Dennis Rajakumar, 2011, “Size and Growth of Private Corporate Sector in Indian Manufacturing”, Economic and Political Weekly, April.

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10. Ramesh Chand, 2010, “Understanding the Nature and Causes of Food Inflation”, Economic and Political Weekly, February.

11. Bishwanath Goldar, 2011, “Organised Manufacturing Employment: Continuing the Debate”, Economic and Political Weekly, April.

12. Kaushik Basu, 2012, editor, The New Oxford Companion to Economics in India, Oxford University Press.

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Paper 20: DEVELOPMENT THEORY AND EXPERIENCE - I

Course Description This is the first part of a two-part course on economic development. The course begins with a discussion of alternative conceptions of development and their justification. It then proceeds to aggregate models of growth and cross-national comparisons of the growth experience that can help evaluate these models. The axiomatic basis for inequality measurement is used to develop measures of inequality and connections between growth and inequality are explored. The course ends by linking political institutions to growth and inequality by discussing the role of the state in economic development and the informational and incentive problems that affect state governance. Course Outline 1. Conceptions of Development Alternative measures of development, documenting the international variation in these measures, comparing development trajectories across nations and within them. 2. Growth Models and Empirics The Harrod-Domar model, the Solow model and its variants, endogenous growth models and evidence on the determinants of growth. 3. Poverty and Inequality: Definitions, Measures and Mechanisms Inequality axioms; a comparison of commonly used inequality measures; connections between inequality and development; poverty measurement; characteristics of the poor; mechanisms that generate poverty traps and path dependence of growth processes. 4. Political Institutions and the Functioning of the State The determinants of democracy; alternative institutional trajectories and their relationship with economic performance; within-country differences in the functioning of state institutions; state ownership and regulation; government failures and corruption. Readings

1. Debraj Ray, Development Economics, Oxford University Press, 2009. 2. Partha Dasgupta, Economics: A Very Short Introduction, Oxford University Press, 2007. 3. Abhijit Banerjee, Roland Benabou and Dilip Mookerjee, Understanding Poverty, Oxford

University Press, 2006. 4. Kaushik Basu, 2012, editor, The New Oxford Companion to Economics in India, Oxford

University Press. 5. Amartya Sen, Development as Freedom, Oxford University Press, 2000. 6. Daron Acemoglu and James Robinson, Economic Origins of Dictatorship and Democracy,

Cambridge University Press, 2006. 7. Robert Putnam, Making Democracy Work: Civic Traditions in Modern Italy, Princeton

University Press, 1994.

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Paper 21: PUBLIC ECONOMICS

Course Description Public economics is the study of government policy from the points of view of economic efficiency and equity. The paper deals with the nature of government intervention and its implications for allocation, distribution and stabilization. Inherently, this study involves a formal analysis of government taxation and expenditures. The subject encompasses a host of topics including public goods, market failures and externalities. The paper is divided into two sections, one dealing with the theory of public economics and the other with the Indian public finances. Course Outline 1. Public Economic Theory

a. Fiscal functions: an overview. b. Public Goods: definition, models of efficient allocation, pure and impure public goods,

free riding. c. Externalities: the problem and its solutions, taxes versus regulation, property rights, the

Coase theorem. d. Taxation: its economic effects; dead weight loss and distortion, efficiency and equity

considerations, tax incidence, optimal taxation. 2. Indian Public Finances

a. Tax System: structure and reforms b. Budget, deficits and public debt c. Fiscal federalism in India

Readings:

1. Joseph E. Stiglitz, Economics of the Public Sector, W.W. Norton & Company, 3rd edition, 2000.

2. R.A. Musgrave and P.B. Musgrave, Public Finance in Theory & Practice, McGraw Hill Publications, 5th edition, 1989.

3. John Cullis and Philip Jones, Public Finance and Public Choice, Oxford University Press, 1st edition, 1998.

4. Harvey Rosen, Public Finance, McGraw Hill Publications, 7th edition, 2005. 5. Mahesh Purohit, Value Added Tax: Experiences of India and Other Countries, 2007. 6. Kaushik Basu and A. Maertens (ed.), The Oxford Companion to Economics in India,

Oxford University Press, 2007. 7. M.M. Sury, Government Budgeting in India, 1990. 8. M. Govinda Rao, Changing Contours of Federal Fiscal Arrangements in India, Amaresh

Bagchi (ed.), Readings in Public Finance, Oxford University Press, 2005. 9. Paul Samuelson, 1955, “Diagrammatic Exposition of a theory of Public Expenditure”,

Review of Economics and Statistics, Volume 37. 10. Shankar Acharya, 2005, “Thirty Years of Tax Reform in India”, Economic and Political

Weekly, May, pp. 14-20.

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11. Rangarajan and D.K. Srivastava, 2005, “Fiscal Deficit and Government Debt: Implications for Growth and Stabilization”, Economic and Political Weekly, July2-8.

12. M. Govinda Rao, 2011, “Goods and Services Tax: A Gorilla, Chimpanzee or a Genius like Primates?”, Economic and Political Weekly, February, pp. 12-18.

13. Report of the 13th Finance Commission, 2010-15. 14. Economic Survey, Government of India (Latest). 15. State Finances: A Study of Budgets, Reserve Bank of India (Latest).

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PAPER 22(OPTIONAL)

GROUP – I (ANY ONE FROM THE FOLLOWING)

22A ECONOMICS OF HEALTH AND EDUCATION Course Description The importance of education and health in improving well being is reflected in their inclusion among the Millennium Development Goals adopted by the United Nations member states, which include among other goals, achieving universal primary education, reducing child mortality, improving maternal health and combating diseases. This course provides a microeconomic framework to analyse, among other things, individual choice in the demand for health and education, government intervention and aspects of inequity and discrimination in both sectors. It also gives an overview of health and education in India. Course Outline 1. Role of Health and Education in Human Development Importance in poverty alleviation; health and education outcomes and their relationship with macroeconomic performance. 2. Microeconomic Foundations of Health Economics Demand for health; uncertainty and health insurance market; alternative insurance mechanisms; market failure and rationale for public intervention; equity and inequality. 3. Evaluation of Health Programs Costing, cost effectiveness and cost-benefit analysis; burden of disease. 4. Health Sector in India: An Overview Health outcomes; health systems; health financing. 5. Education: Investment in Human Capital Rate of return to education: private and social; quality of education; signaling or human capital; theories of discrimination; gender and caste discrimination in India. 6. Education Sector in India: An Overview Literacy rates, school participation, school quality measures. Readings:

1. William, Jack, Principles of Health Economics for Developing Countries, World Bank Institute Development Studies, 1999.

2. World Development Report, Investing in Health, The World Bank, 1993. 3. Ronald G., Ehrenberg and Robert S., Smith, Modern Labor Economics: Theory and

Public Policy, Addison Wesley, 2005.

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22B POLITICAL ECONOMY Course Description This course builds on the foundations of Course 13 (Economy, State and Society). It explores changes in the organisation of production, labour market institutions and corporate structure. It goes on to study the consequences of globalization, especially of financial flows, for the role of the state, economic performance, gender issues, environment, human welfare and development. Course Outline 1. Introduction and Historical Overview Perspective on political economy with a historical overview: capitalist development in the pre-second world war period, the ‘golden age’ and later. 2. Changing Dynamics of Capitalist Production, Organisational Form and Labour Process Fordist and post-fordist production; changing dynamics of organisation of production, markets and labour process; the changing nature of job security and labour rights. 3. The State in the Era of Globalisation: Welfare, Development and Autonomy Globalisation and the limits of the welfare state, development and state autonomy. 4. The Changing Role of Finance The changing role of finance in capital accumulation and corporate structure; finance and globalisation - financialisation, financial liberalisation and financial crisis. 5. The Social Dimension Globalisation and uneven development – growth, inequality and exclusion. 6. New Perspectives Gender in work, accumulation and globalisation; issues in environment and sustainability; alternatives ahead.

Readings:

1. Michel Beaud, A History of Capitalism, 1500-2000, trans. by Tom Dickman and Anny Lefebvre, New York: Monthly Review Press, 2001.

2. Ash Amin (ed.), Post-Fordism: A Reader, Blackwell, 1994. 3. Fran Tonkiss, Contemporary Economic Sociology: Globalisation, Production, Inequality,

Chapter 4 (Fordism and After), Routledge India 2008 reprint, 2006. 4. S. Hymer, 1975, "The Multinational Corporation and the Law of Uneven Development",

in H. Radice (ed.) International Firms and Modern Imperialism, Penguin Books. 5. G. Gereffi, J. Humphrey and T. Sturgeon, 2005, “The Governance of Global Value

Chains”, Review of International Political Economy, Volume 12, pp. 78–104.

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6. Narasimha Reddy, 2003, “Economic Globalisation, Past and Present – The Challenges to Labour” in Jomo K.S. & Khoo Khay Jin (ed.) Globalization and Its Discontents, Revisited, Sephis -Tulika Books.

7. David Harvey, A Brief History of Neoliberalism, Oxford University Press, 2005. 8. Andrew Glyn, 2006, “Challenges to Capital”, in Capitalism Unleashed: Finance,

Globalization and Welfare, Oxford: Oxford University Press, (Ch. One, pp. 1-24). 9. G Dumenil and D Levy, The Crisis of Neoliberalism, Harvard University Press, 2011. 10. K.S. Jomo (ed.), The Long Twentieth Century: The Great Divergence: Hegemony,

Uneven Development and Global Inequality, Oxford University Press, 2006. 11. Gary Dymsky, 2005, “Financial Globalization, Social Exclusion and Financial Crisis”,

International Review of Applied Economics, Vol. 19, pp. 439–457. 12. E. Stockhammer, 2010, “Financialization and the Global Economy”, in G. Epstein and

M.H. Wolfson (ed.) The Political Economy of Financial Crises, Oxford University Press. [Also in Working Paper Series, No. 240, Political Economy Research Institute, University of Massachusetts Amherst]

13. J.P. Smith and M.P. Ward, 1989, “Women in the Labour Market and in the Family”, Journal of Economic Perspectives, Volume 3, pp. 9-23.

14. Marilyn Power, 2004, “Social Provisioning as a Starting Point for Feminist Economics”, Feminist Economics, Volume 10, pp. 3-19.

15. John Bellamy Foster, Ecology against Capitalism, Monthly Review Press, 2002.

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22C TOPICS IN MICROECONOMICS - I

Course Description Game theory is an integral part of modern economic analysis. Topics in Microeconomics - I introduces the students to elementary game theory under complete information. This course introduces the basic concepts of game theory in a way that allows students to use them in solving simple problems. The course will deal with the solution concepts for normal form and extensive form games along with a variety of economic applications. Course Outline 1. Normal form games The normal form; dominant and dominated strategies; dominance solvability; mixed strategies; Nash equilibrium; symmetric single population games; applications. 2. Extensive form games with perfect information The game tree; strategies; subgame perfection; backward induction in finite games; commitment; bargaining; other applications. Reading:

1. Martin J. Osborne, An Introduction to Game Theory, Oxford University Press, New Delhi, 2004.

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22D ADVANCED MACROECONOMICS

Course Description The course is intended to prepare the student for higher studies in economics. Some of the important areas of research in macroeconomics in the last few decades are introduced that have fundamentally altered our understanding of macroeconomic issues. Modern macroeconomics requires a basic understanding of systems of difference and differential equations and techniques of intertemporal optimization. The course provides an elementary introduction to these techniques through some models that use them. The emphasis is on developing formal models that are dynamic in nature. Special emphasis is placed on the role of expectations, information and implications of intertemporal optimization in macroeconomic models of labour markets, investment, exchange rates and growth. Course Outline

1. Review of Aggregate Supply-Aggregate Demand Model Aggregate labour market, adaptive expectations, nominal wage rigidities; aggregate demand: review of IS-LM model, effectiveness of fiscal and monetary policy; adaptive expectations hypothesis and stability in the AS-AD model. 2. Rational Expectations and Implications for Economic Policy Rational expectations hypothesis, policy ineffectiveness proposition; overlapping wage contracts.

3. Introduction to Dynamic Models Dynamic investment theory, investment subsidy, dynamic IS-LM model; open economy and international financial markets, Dornbusch overshooting model. 4. Economic Growth Stylized facts; Solow-Swan model; Ramsey model: phase diagram, efficiency properties of the Ramsey model, fiscal policy in the Ramsey model; Ricardian equivalence, some reasons for non-equivalence; endogenous growth; some issues in growth for open economies. 5. Overlapping Generations Model Diamond-Samuelson model: equilibrium, dynamics and stability, efficiency. Readings:

1. Heijdra, Ben J., The Foundations of Modern Macroeconomics, Oxford University Press, 2nd edition, 2009.

2. Blanchard, Olivier Jean and Fischer, Stanley. Lectures on Macroeconomics, Prentice Hall of India Private Limited, 2000.

3. Barro, Robert J. and Sala-i-Martin, Xavier. Economic Growth, Prentice Hall of India Private Limited, 2nd edition, 2007.

4. Romer, David, Advanced Macroeconomics, McGraw-Hill, 3rd edition, 2006. 5. Hoy, Michael et al., Mathematics for Economics, The MIT Press, 2nd edition, 2001.

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22E MONEY AND FINANCIAL MARKETS

Course Description This course exposes students to the theory and functioning of the monetary and financial sectors of the economy. It highlights the organization, structure and role of financial markets and institutions. It also discusses interest rates, monetary management and instruments of monetary control. Financial and banking sector reforms and monetary policy with special reference to India are also covered. Course Outline 1. Money Concept, functions, measurement; theories of money supply determination. 2. Financial Institutions, Markets, Instruments and Financial Innovations a. Role of financial markets and institutions; problem of asymmetric information – adverse selection and moral hazard; financial crises. b. Money and capital markets: organization, structure and reforms in India; role of financial derivatives and other innovations. 3. Interest Rates Determination; sources of interest rate differentials; theories of term structure of interest rates; interest rates in India. 4. Banking System a. Balance sheet and portfolio management. b. Indian banking system: Changing role and structure; banking sector reforms. 5. Central Banking and Monetary Policy Functions, balance sheet; goals, targets, indicators and instruments of monetary control; monetary management in an open economy; current monetary policy of India. Readings

1. F. S. Mishkin and S. G. Eakins, Financial Markets and Institutions, Pearson Education, 6th edition, 2009.

2. F. J. Fabozzi, F. Modigliani, F. J. Jones, M. G. Ferri, Foundations of Financial Markets and Institutions, Pearson Education, 3rd edition, 2009.

3. M. R. Baye and D. W. Jansen, Money, Banking and Financial Markets, AITBS, 1996. 4. Rakesh Mohan, Growth with Financial Stability- Central Banking in an Emerging

Market, Oxford University Press, 2011. 5. L. M. Bhole and J. Mahukud, Financial Institutions and Markets, Tata McGraw Hill, 5th

edition, 2011.

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6. M. Y. Khan, Indian Financial System, Tata McGraw Hill, 7th edition, 2011. 7. N. Jadhav, Monetary Policy, Financial Stability and Central Banking in India,

Macmillan, 2006. 8. R.B.I. – Report of the Working Group: Money Supply Analytics and Methodology of

Compilation, 1998. 9. R.B.I. Bulletin, Annual Report and Report on Currency and Finance (latest).

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Paper 23: INTERNATIONAL ECONOMICS

Course Description This course develops a systematic exposition of models that try to explain the composition, direction, and consequences of international trade, and the determinants and effects of trade policy. It then builds on the models of open economy macroeconomics developed in courses 08 and 12, focusing on national policies as well as international monetary systems. It concludes with an analytical account of the causes and consequences of the rapid expansion of international financial flows in recent years. Although the course is based on abstract theoretical models, students will also be exposed to real-world examples and case studies. Course Outline 1. Introduction What is international economics about? An overview of world trade. 2. Theories of International Trade The Ricardian, specific factors, and Heckscher-Ohlin models; new trade theories; the international location of production; firms in the global economy — outsourcing and multinational enterprises. 3. Trade Policy Instruments of trade policy; political economy of trade policy; controversies in trade policy. 4. International Macroeconomic Policy Fixed versus flexible exchange rates; international monetary systems; financial globalization and financial crises. Readings:

1. Paul Krugman, Maurice Obstfeld, and Marc Melitz, International Economics: Theory and Policy, Addison-Wesley (Pearson Education Indian Edition), 9th edition, 2012.

2. Dominick Salvatore, International Economics: Trade and Finance, John Wiley International Student Edition, 10th edition, 2011.

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Paper 24: DEVELOPMENT THEORY AND EXPERIENCE - II

Course Description This is the second module of the economic development sequence. It begins with basic demographic concepts and their evolution during the process of development. The structure of markets and contracts is linked to the particular problems of enforcement experienced in poor countries. The governance of communities and organizations is studied and this is then linked to questions of sustainable growth. The course ends with reflections on the role of globalization and increased international dependence on the process of development. Course Outline 1. Demography and Development Demographic concepts; birth and death rates, age structure, fertility and mortality; demographic transitions during the process of development; gender bias in preferences and outcomes and evidence on unequal treatment within households; connections between income, mortality, fertility choices and human capital accumulation; migration. 2. Land, Labor and Credit Markets The distribution of land ownership; land reform and its effects on productivity; contractual relationships between tenants and landlords; land acquisition; nutrition and labor productivity; informational problems and credit contracts; microfinance; inter-linkages between rural factor markets. 3. Individuals, Communities and Collective Outcomes Individual behavior in social environments, multiple social equilibria; governance in organizations and in communities; individual responses to organizational inefficiency. 4. Environment and Sustainable Development Defining sustainability for renewable resources; a brief history of environmental change; common-pool resources; environmental externalities and state regulation of the environment; economic activity and climate change. 5. Globalization Globalization in historical perspective; the economics and politics of multilateral agreements; trade, production patterns and world inequality; financial instability in a globalized world. Readings

1. Debraj Ray, Development Economics, Oxford University Press, 2009. 2. Partha Dasgupta, Economics: A Very Short Introduction, Oxford University Press, 2007. 3. Abhijit Banerjee, Roland Benabou and Dilip Mookerjee, Understanding Poverty, Oxford

University Press, 2006. 4. Thomas Schelling, Micromotives and Macrobehavior, W. W. Norton, 1978.

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5. Albert O. Hirschman, Exit, Voice and Loyalty: Responses to Decline in Firms, Organizations and States, Harvard University Press, 1970.

6. Raghuram Rajan, Fault Lines: How Hidden Fractures Still Threaten the World Economy, 2010.

7. Elinor Ostrom, Governing the Commons: The Evolution of Institutions for Collective Action, Cambridge University Press, 1990.

8. Dani Rodrik, The Globalization Paradox: Why Global Markets, States and Democracy Can’t Coexist, Oxford University Press, 2011.

9. Michael D. Bordo, Alan M. Taylor and Jeffrey G. Williamson (ed.), Globalization in Historical Perspective, University of Chicago Press, 2003.

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PAPER 25(OPTIONAL) GROUP –II (ANY ONE FROM THE FOLLOWING)

25A COMPARATIVE ECONOMIC DEVELOPMENT: 1850-1950 Course Description This course investigates selected issues in comparative historical perspective over the 19th century and the first few decades of the 20th century. The course focuses on a set of countries, which followed clearly diverse trajectories and patterns of growth to achieve their industrial transition and compares the outcomes of these diverse trajectories on sectoral change, inter-sectoral relations, labour processes and industrial relations and also compares the role of the state in facilitating the respective trajectories. Course Outline 1. Introduction and Perspectives on Comparative Economic Development

2. An Overview of Economic Development of the countries selected for case studies

3. Agriculture Agrarian surplus and the role of the peasantry in economic development.

4. Industry The industrial revolution in Britain; Industrialisation in late industrialisers.

5. The Factory System and Making of the Industrial Working Class Division of labour, structure of industrial authority, organisation of work and industrial production, relationship between workers and managers.

6. The Role of the State in Industrial and Developmental Transition Readings:

1. E.J. Hobsbawm, World of Labour: Further Studies in the History of Labour, London Weidenfeld & Nicholson, 1984.

2. E.J. Hobsbawm, Industry and Empire: An Economic History of Britain since 1750, Weidenfeld & Nicholson, 1968.

3. Peter Mathias, The First Industrial Nation, An Economic History of Britain, 1700-1914, 2nd edition Methuen, 1983.

4. T. Nakamura, Economic Growth in Pre-War Japan, Tr. by Robert A Feldman, Yale University Press, 1983.

5. Okochi, Karsh and Levine, Workers and Employees in Japan, The Japanese Employment Relations System, University of Tokyo, 1965.

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6. Y. Hayami, A Century of Agricultural Growth in Pre-War Japan: Its Relevance to Asian Development, University of Minnesota Press, 1975.

7. Chalmers Johnson, MITI and the Japanese Miracle: The Growth of Industrial Policy 1925-1975, Stanford University Press, 1982.

8. W.W. Lockwood, Economic Development of Japan, Expanded edition, Princeton University Press, 1966.

9. Dobb M., Soviet Economic Development since 1917, Universal Book Stall, New Delhi, 1995.

10. Paul R. Gregory and Robert C. Stuart, Soviet Economic Structure and Performance, Harper & Row, 3rd edition, 1986.

11. Timothy W. Guinnane, 2002, “Delegated Monitors, Large and Small: Germany’s banking System, 1800 –1914”, Journal of Economic Literature, Volume XL, pp.73-124.

12. Richard A. Easterlin, Davis and Parker, American Economic Growth: An economist’s History of the United States, Harper & Row, 1972.

13. Hughes and Cain, American Economic History, HarperCollins College Publishers, 4th edition, 1994.

Background readings for teachers: Angus Maddison, Dynamic Forces in Capitalist Development, A Long-Run Comparative View, Oxford University Press, 1991. P.K.O’Brien, 1986, “Do We Have a Typology for the Study of European Industrialization in the XIXth Century?” Journal of European Economic History, Volume XV, pp. 291-333.

43

25A APPLIED ECONOMETRICS

Course Description The aim of this course is to provide a foundation in applied econometric analysis and develop skills required for empirical research in economics. Topics include specification and selection of regression models, dynamic econometric models, advanced methods in regression analysis and panel data models. Since the emphasis is on application of methods, this course requires understanding of econometric software and computing skills. Course Outline 1. Stages in Empirical Econometric Research 2. Regression Diagnostics and Specification Misspecification; functional forms; model selection.

3. Advanced Topics in Regression Analysis Selected Topics: Dynamic Econometric Models: distributed lag models; autoregressive models; instrumental variable estimation; simultaneous equation models. 4. Panel Data Models Methods of estimation; fixed effects model; random effects model.

5. Introduction to Econometric Software Package GRETL; E-VIEWS; STATA (any one). Readings:

1. Jeffrey M. Wooldridge, Econometrics, Cengage Learning, India Edition, 2009. 2. Dimitrios Asteriou and Stephen Hall, Applied Econometrics: A Modern Approach,

Palgrave Macmillan, 2007. 3. Damodar Gujarati, Econometrics by Example, Palgrave Macmillan, 2011.

44

25C TOPICS IN MICROECONOMICS - II

Course Description This course deals with repeated games and games with incomplete information. Ideas related to asymmetric information among the interacting economic agents would be the main focus of this course. Students learn the concept of Bayesian and Perfect Bayesian equilibrium. The course ends with the application of game theory to analyse moral hazard, adverse selection and signaling problems. Course Outline 1. Repeated Games. Finitely repeated games and backward induction; infinitely repeated games; history dependent strategies; one-step deviation property; the repeated prisoners’ dilemma; idea of folk theorem.

2. Simultaneous move games with incomplete information (Bayesian games). Strategies; Bayesian Nash equilibrium; auctions; other applications.

3. Extensive form games with imperfect information. Strategies; beliefs and sequential equilibrium; applications.

4. Information economics. Adverse selection; moral hazard; signalling games.

Readings:

1. Martin J. Osborne, An Introduction to Game Theory, Oxford University Press, New

Delhi, 2004. 2. Hugh Gravelle and Ray Rees, Microeconomics, Pearson Education, 2nd edition, 1992.

45

25D FINANCIAL ECONOMICS Course Description This course introduces students to the economics of finance. Some of the basic models used to benchmark valuation of assets and derivatives are studied in detail; these include the CAPM, and the Binomial Option Pricing models. The course ends with a brief introduction to corporate finance. Course Outline

1. Investment Theory and Portfolio Analysis a. Deterministic cash-flow streams Basic theory of interest; discounting and present value; internal rate of return; evaluation criteria; fixed-income securities; bond prices and yields; interest rate sensitivity and duration; immunisation; the term structure of interest rates; yield curves; spot rates and forward rates.

b. Single-period random cash flows Random asset returns; portfolios of assets; portfolio mean and variance; feasible combinations of mean and variance; mean-variance portfolio analysis: the Markowitz model and the two-fund theorem; risk-free assets and the one-fund theorem.

c. CAPM The capital market line; the capital asset pricing model; the beta of an asset and of a portfolio; security market line; use of the CAPM model in investment analysis and as a pricing formula.

2. Options and Derivatives Introduction to derivatives and options; forward and futures contracts; options; other derivatives; forward and future prices; stock index futures; interest rate futures; the use of futures for hedging; duration-based hedging strategies; option markets; call and put options; factors affecting option prices; put-call parity; option trading strategies: spreads; straddles; strips and straps; strangles; the principle of arbitrage; discrete processes and the binomial tree model; risk-neutral valuation. 3. Corporate Finance Patterns of corporate financing: common stock; debt; preferences; convertibles; capital structure and the cost of capital; corporate debt and dividend policy; the Modigliani-Miller theorem. Readings:

1. David G. Luenberger, Investment Science, Oxford University Press, USA, 1997. 2. Hull, John C., Options, Futures and Other Derivatives, Pearson Education, 6th edition,

2005. 3. Thomas E. Copeland, J. Fred Weston and Kuldeep Shastri, Financial Theory and

Corporate Policy, Prentice Hall, 4th edition, 2003. 4. Richard A. Brealey and Stewart C. Myers, Principles of Corporate Finance, McGraw-

Hill, 7th edition, 2002.

46

5. Stephen A. Ross, Randolph W. Westerfield and Bradford D. Jordan, Fundamentals of Corporate Finance. McGraw-Hill, 7th edition, 2005.

6. Burton G. Malkiel, A Random Walk Down Wall Street, W.W. Norton & Company, 2003. 7. William Sharpe, Gordon Alexander and Jeffery Bailey, Investments, Prentice Hall of

India, 6th edition, 2003.

47

25E ENVIRONMENTAL ECONOMICS

Course Description This course focuses on economic causes of environmental problems. In particular, economic principles are applied to environmental questions and their management through various economic institutions, economic incentives and other instruments and policies. Economic implications of environmental policy are also addressed as well as valuation of environmental quality, quantification of environmental damages, tools for evaluation of environmental projects such as cost-benefit analysis and environmental impact assessments. Selected topics on international environmental problems are also discussed. Course Outline 1. Introduction What is environmental economics; review of microeconomics and welfare economics. 2. The Theory of Externalities Pareto optimality and market failure in the presence of externalities; property rights and the coase theorem. 3. The Design and Implementation of Environmental Policy Overview; pigouvian taxes and effluent fees; tradable permits; choice between taxes and quotas under uncertainty; implementation of environmental policy. 4. International Environmental Problems Trans-boundary environmental problems; economics of climate change; trade and environment. 5. Measuring the Benefits of Environmental Improvements Non-Market values and measurement methods; risk assessment and perception. 6. Sustainable Development Concepts; measurement. Readings:

1. Charles Kolstad, Intermediate Environmental Economics, Oxford University Press, 2nd edition, 2010.

2. Robert N. Stavins (ed.), Economics of the Environment: Selected Readings, W.W. Norton, 5th edition, 2005.

3. Roger Perman, Yue Ma, James McGilvray and Michael Common, Natural Resource and Environmental Economics, Pearson Education/Addison Wesley, 3rd edition, 2003.

4. Maureen L. Cropper and Wallace E. Oates, 1992, “Environmental Economics: A Survey”, Journal of Economic Literature, Volume 30, pp. 675-740.

48

PAPER 26

CONCURRENT-

DISCIPLINE CENTRED -II

FOUR YEAR UNDERGRADUATE PROGRAMME IN ECONOMICS

UNIVERSITY OF DELHI DEPARTMENT OF ECONOMICS

FOUR YEAR UNDERGRADUATE PROGRAMME

(Courses effective from Academic Year 2013‐14)

SYLLABUS OF COURSES TO BE OFFERED

Discipline Courses I, Discipline Courses II

& Applied Courses

Note: The courses are uploaded as sent by the Department concerned. The scheme of marks will be determined by the University and will be corrected in the syllabus accordingly. Editing, typographical changes and formatting will be undertaken further.

Four Year Undergraduate Programme Secretariat [email protected]

FOUR YEAR UNDERGRADUATE PROGRAMME: ECONOMICS

1

ECONOMICS

TABLE OF CONTENTS

Page No.

I. Norms for Course Readings......................................................….…..…….…3

II. Economics Four Year Course Structure…………………..............…...……...4

III. Economics Discipline Course I.........................................................................6

IV. Economics Discipline Course II………………………………..………........30

V. Economics Applied Courses ……………………………………..……...…..37


2

Norms for Course Readings

Course Readings: The nature of several of the courses is such that only selected readings

can be specified in advance. As in the past, reading lists will be updated and topic-wise

readings will be discussed in regular meetings organised by the Department of Economics,

Delhi School of Economics, with all college teachers of the University of Delhi associated

with teaching these courses.


3

I. ECONOMICS FOUR YEAR COURSE STRUCTURE


4

I. ECONOMICS FOUR YEAR COURSE STRUCTURE

Semester Economics Discipline Course 1

Economics Discipline

Course 2

Economics Applied

Courses

1 2 3

1 Principles of Economics Mathematical Methods for

Economics-I

2 Statistical Methods in

Economics-I

Mathematical Methods for

Economics-II

3 Statistical Methods in

Economics-II

Microeconomics-I Introductory Economics Game Theory

4 Macroeconomics-I Microeconomics-II Microeconomic Theory and

Applications

Financial Economics

5 Macroeconomics-II Money and Financial

Markets

Introductory

Econometrics

Macroeconomic Theory and

Policy

Public Finance

6 Indian Economic

Development:

Historical Perspectives

and Current Issues-I

Development Theory and

Experience-I

International

Economics

Money and Banking Environmental

Economics

7 Indian Economic

Development:

Historical Perspectives

and Current Issues -II

Development Theory and

Experience-II

Research I (Applied

Econometrics)

Indian Economy

8 Political Economy Public Economics Research II (Project) Development Economics


5

II. ECONOMICS DISCIPLINE COURSE-I


6

ECON-DC I: PAPER 1

PRINCIPLES OF ECONOMICS

Course Description

This course is designed to expose the students to the basic principles of economics. The

emphasis will be on thinking like an economist and the course will illustrate how economic

concepts can be applied to analyse real-life situations.

Course Outline

1. Exploring the Subject Matter of Economics

Why study economics? The scope and method of economics; scarcity and choice; questions

of what, how and for whom to produce and how to distribute output; the basic competitive

model; prices, property rights and profits; incentives and information; rationing; opportunity

sets; economic systems, gains from trade; comparative advantage and trade.

2. Supply and Demand: How Markets Work, Markets and Welfare

Individual demand and supply schedules and the derivation of market demand and supply;

shifts in demand and supply curves; the role of prices in resource allocation; the concept of

elasticity and its application; consumer and producer surplus; taxes and their efficiency costs;

restrictions on trade.

3. Introduction to Macroeconomics and National Income Accounting

Basic issues studied in macroeconomics; measurement of gross domestic product; income,

expenditure and the circular flow; real versus nominal GDP; price indices.

4.Money and Inflation

Functions of money; quantity theory of money; determination of money supply and demand;

credit creation; tools of monetary policy; inflation and its social costs; hyperinflation.

Readings

1. N. Gregory Mankiw, Economics: Principles and Applications, India edition by South Western,

Cengage Learning India Private Limited, 4th edition, 2007.

2. Joseph E. Stiglitz and Carl E. Walsh, Economics, W.W. Norton & Company, Inc.,New

York, International Student Edition, 4th edition, 2007.

3. Andrew B. Abel and Ben S. Bernanke, Macroeconomics, Pearson Education, Inc., 7th

edition,

2011.

4. N. Gregory Mankiw, Macroeconomics, Worth Publishers, 7th edition, 2010.


7

ECON-DC I: PAPER 2

MATHEMATICAL METHODS FOR ECONOMICS-I

Course Description

This is the first of a two-part course. The objective of this part is to transmit the body of basic

mathematics that enables the study of economic theory at the undergraduate level,

specifically the courses on microeconomic theory, macroeconomic theory, statistics and

econometrics set out in this syllabus. In this course, particular economic models are not the

ends, but the means for illustrating the method of applying mathematical techniques to

economic theory in general. The level of sophistication at which the material is to be taught is

indicated by the contents of the prescribed textbook.

Course Outline

1. Preliminaries

Logic and proof techniques; sets and set operations; relations; functions and their properties;

number systems.

2. Functions of One Real Variable

Graphs; elementary types of functions: quadratic, polynomial, power, exponential,

logarithmic; sequences and series: convergence, algebraic properties and applications;

continuous functions: characterizations, properties with respect to various operations and

applications; differentiable functions: characterizations, properties with respect to various

operations and applications; second and higher order derivatives: properties and applications.

3. Single-variable Optimization

Geometric properties of functions: convex functions, their characterizations and applications;

local and global optima: geometric characterizations, characterizations using calculus and

applications.

4. Integration of Functions

Areas under curves; indefinite integrals; the definite integral

Readings

K. Sydsaeter and P. Hammond, Mathematics for Economic Analysis, Pearson Educational

Asia, Delhi, 2002.


8

ECON-DC I: PAPER 3

STATISTICAL METHODS IN ECONOMICS-I

Course Description

This is the first of a two-part course on statistical methods. It begins with some basic

concepts and terminology that are fundamental to statistical analysis and inference. It then

develops the notion of probability, followed by probability distributions of discrete and

continuous random variables. The semester concludes with a discussion of joint distributions.

Course Outline

1. Introduction and Overview

The distinction between populations and samples and between population parameters and

sample statistics; the use of measures of location and variation to describe and summarize

data; population moments and their sample counterparts.

2. Elementary Probability Theory

Sample spaces and events; probability axioms and properties; counting techniques;

conditional probability and Bayes’ rule; independence.

3. Random Variables and Probability Distributions

Defining random variables; probability distributions; expected values of random variables

and of functions of random variables; properties of commonly used discrete and continuous

distributions (uniform, binomial, normal, poisson and exponential random variables).

4. Random Sampling and Jointly Distributed Random Variables

Density and distribution functions for jointly distributed random variables; computing

expected values; covariance and correlation coefficients.

Readings

1. Jay L. Devore, Probability and Statistics for Engineers, Cengage Learning, 2010.

2. John E. Freund, Mathematical Statistics, Prentice Hall, 1992.

3. Richard J. Larsen and Morris L. Marx, An Introduction to Mathematical Statistics and its



9

ECON-DC I: PAPER 4

MATHEMATICAL METHODS FOR ECONOMICS-II

Course Description

This course is the second part of the two- part course. This course covers the essentials of

linear algebra and optimization techniques required for the analysis of functions of several

variables that are commonly used in economics.

Course Outline

1. Linear algebra

Vector spaces: algebraic and geometric properties, scalar products, norms, orthogonality;

linear transformations: properties, matrix representations and elementary operations; systems

of linear equations: properties of their solution sets; determinants: characterization, properties

and applications.

2. Functions of several real variables

Geometric representations: graphs and level curves; differentiable functions:

characterizations, properties with respect to various operations and applications; second order

derivatives: properties and applications; the implicit function theorem, and application to

comparative statics problems; homogeneous and homothetic functions: characterizations and

applications.

3. Multi-variable optimization

Convex sets; geometric properties of functions: convex functions, their characterizations,

properties and applications; further geometric properties of functions: quasiconvex functions,

their characterizations, properties and applications; unconstrained optimization: geometric

characterizations, characterizations using calculus and applications; constrained optimization

with equality constraints: geometric characterizations, Lagrange characterization using

calculus and applications; properties of value function: envelope theorem and applications.

Readings

K. Sydsaeter and P. Hammond, Mathematics for Economic Analysis, Pearson Educational

Asia, Delhi, 2002.


10

ECON-DC I: PAPER 5

STATISTICAL METHODS IN ECONOMICS-II

Course Description

This is the second part in the two part course on statistical methods. It begins with a

discussion on sampling techniques used to collect survey data. It introduces the notion of

sampling distributions that act as a bridge between probability theory and statistical

inference. It then covers topics in inference that include point estimation, statistical intervals

and hypothesis testing. It concludes with a discussion of the simple linear regression model.

Course Outline

1. Sampling

Principal steps in a sample survey; methods of sampling; the role of sampling theory;

properties of random samples.

2. Point and Interval Estimation

Procedures; properties of estimators; confidence intervals for population parameters.

3. Hypothesis Testing

Defining statistical hypotheses; distributions of test statistics; testing hypotheses related to

population parameters; Type I and Type II errors; power of a test; tests for comparing

parameters from two samples.

4. Simple Linear Regression

Estimation of the slope and intercept parameters; inference and prediction.

Readings

1. Jay L. Devore, Probability and Statistics for Engineers, Cengage Learning, 2010.

2. William G. Cochran, Sampling Techniques, John Wiley, 2007.

3. Richard J. Larsen and Morris L. Marx, An Introduction to Mathematical Statistics and its



11

ECON-DC I: PAPER 6

MICROECONOMICS-I

Course Description

This is the first part of the two part course, and is designed to provide a sound training in

microeconomic theory. This course looks at the behaviour of the consumer and the producer

and also covers the behaviour of a competitive firm.

Course Outline

1. Consumer Theory

Preference; utility; budget constraint; choice; demand; Slutsky equation; buying and selling;

choice under risk and intertemporal choice; revealed preference.

2.Production, Costs and Perfect Competition

Technology; isoquants; production with one and more variable inputs; returns to scale; short

run and long run costs; cost curves in the short run and long run; firm behaviour in perfect

competition.

Readings

1. Hal R. Varian, Intermediate Microeconomics: A Modern Approach, W.W. Norton and

Company/Affiliated East-West Press (India), 8th

edition, 2010. The Workbook by Varian

and Bergstrom, accompanying the text may be used for problems.

2. C. Snyder and W. Nicholson, Fundamentals of Microeconomics, Cengage Learning

(India), 2010.

3. B. Douglas Bernheim and Michael D. Whinston, Microeconomics, Tata McGraw-Hill

(India), 2009.


12

ECON-DC I: PAPER 7

MACROECONOMICS-I

Course Description

This is the first part in the two part course and introduces the students to formal modelling of

a macro-economy in terms of analytical tools. It discusses various alternative theories of

output and employment determination in a closed economy in the short run as well as

medium run, and the role of policy in this context. It also introduces the students to various

theoretical issues related to an open economy.

Course Outline

1. The Closed Economy in the Short Run

Simple Keynesian model of income determination; IS-LM model; fiscal and monetary

multipliers.

2. Aggregate Demand and Aggregate Supply Curves

Derivation of aggregate demand and aggregate and supply curves; interaction of aggregate

demand and supply.

3. Inflation, Unemployment and Expectations

Phillips curve; adaptive and rational expectations; policy ineffectiveness debate.

4. Open Economy Models

Short-run open economy models; Mundell-Fleming model; Dornbusch's overshooting model;

monetary approach to balance of payments.

Readings

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

edition, 2010.

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

edition, 2010.

3. Olivier Blanchard, Macroeconomics, Pearson Education, Inc., 5th

edition, 2009.

4. Steven M. Sheffrin, Rational Expectations, Cambridge University Press, 2nd

edition,

1996.

5. Errol D’Souza, Macroeconomics, Pearson Education, 2008.


13

ECON-DC I: PAPER 8

MICROECONOMICS-II

Course Description

This course is a sequel to Microeconomics I. It covers general equilibrium and welfare,

imperfect markets and topics under information economics.

Course Outline

1. General Equilibrium, Efficiency and Welfare

Equilibrium and efficiency under pure exchange and production; overall efficiency and

welfare economics.

2. Market Structure and Game Theory

Monopoly; pricing with market power; price discrimination; two-part tariff; oligopoly; game

theory and competitive strategy.

3. Market Failure

Externalities; public goods and markets with asymmetric information.

Readings

1. Hal R. Varian, Intermediate Microeconomics: A Modern Approach, 8th

edition, W.W.

Norton and Company/Affiliated East-West Press (India), 2010.The workbook by Varian

and Bergstrom, accompanying the text may be used for problems.

2. C. Snyder and W. Nicholson, Fundamentals of Microeconomics, Cengage Learning

(India), 2010.


14

ECON-DC I: PAPER 9

MACROECONOMICS-II

Course Description

This course is a sequel to Macroeconomics I. In this course, the students are introduced to the

long run dynamic issues like growth and technical progress. It also provides the micro

foundations to the various aggregative concepts used in the previous course.

Course Outline

1. Economic Growth

Solow model; golden rule; technological progress and elements of endogenous growth.

2. Microeconomic Foundations

a. Consumption: Keynesian consumption function; Fisher’s theory of optimal

intertemporal choice; life-cycle and permanent income hypotheses; rational

expectations and random-walk of consumption expenditure.

b. Investment: determinants of business fixed investment; residential investment and

inventory investment.

c. Demand for money.

3. Fiscal and Monetary Policy

Active or passive; monetary policy objectives and targets; rules versus discretion: time

consistency; the government budget constraint; government debt and Ricardian equivalence.

Readings


edition, 2010.

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

edition, 2010.

3. Olivier Blanchard, Macroeconomics, Pearson Education Inc., 5th

edition, 2009.

4. Charles I. Jones, Introduction to Economic Growth, W.W. Norton & Company, 2nd

edition,

2002.

5. Andrew B. Abel and Ben S. Bernanke, Macroeconomics, Pearson Education, Inc.,

7th

edition, 2011.

6. Errol D’Souza, Macroeconomics, Pearson Education, 2008.


15

ECON-DC 1: PAPER 10

MONEY AND FINANCIAL MARKETS

Course Description

This course exposes students to the theory and functioning of the monetary and financial

sectors of the economy. It highlights the organization, structure and role of financial markets

and institutions. It also discusses interest rates, monetary management and instruments of

monetary control. Financial and banking sector reforms and monetary policy with special

reference to India are also covered.

Course Outline

1. Money

Concept, functions, measurement; theories of money supply determination.

2. Financial Institutions, Markets, Instruments and Financial Innovations

a. Role of financial markets and institutions; problem of asymmetric information – adverse

selection and moral hazard; financial crises.

b. Money and capital markets: organization, structure and reforms in India; role of financial

derivatives and other innovations.

3. Interest Rates

Determination; sources of interest rate differentials; theories of term structure of interest

rates; interest rates in India.

4. Banking System

a. Balance sheet and portfolio management.

b. Indian banking system: Changing role and structure; banking sector reforms.

5. Central Banking and Monetary Policy

Functions, balance sheet; goals, targets, indicators and instruments of monetary control;

monetary management in an open economy; current monetary policy of India.

Readings

1. F. S. Mishkin and S. G. Eakins, Financial Markets and Institutions, Pearson Education,

6th

edition, 2009.

2. F. J. Fabozzi, F. Modigliani, F. J. Jones, M. G. Ferri, Foundations of Financial Markets

and Institutions, Pearson Education, 3rd

edition, 2009.

3. L. M. Bhole and J. Mahukud, Financial Institutions and Markets, Tata McGraw Hill, 5th

edition, 2011.

4. M. Y. Khan, Indian Financial System, Tata McGraw Hill, 7th

edition, 2011.

5. Various latest issues of R.B.I. Bulletins, Annual Reports, Reports on Currency and

Finance and Reports of the Working Group, IMF Staff Papers.


16

ECON-DC I: PAPER 11

INTRODUCTORY ECONOMETRICS

Course Description

This course provides a comprehensive introduction to basic econometric concepts and

techniques. It covers estimation and diagnostic testing of simple and multiple regression

models. The course also covers the consequences of and tests for misspecification of

regression models.

Course Outline

1. Nature and Scope of Econometrics

2. Review of Statistical Concepts

Normal distribution, chi-square, t- and F-distributions, estimation of parameters, properties of

estimators; testing of hypotheses.

3. Simple Linear Regression Model: Two Variable Case

Estimation of model by method of ordinary least squares, properties of estimators, goodness

of fit; tests of hypotheses, scaling and units of measurement, confidence intervals, Gauss-

Markov theorem, forecasting.

4. Multiple Linear Regression Model

Estimation of parameters; properties of OLS estimators, goodness of fit, partial regression

coefficients, testing hypotheses,functional forms of regression models, qualitative (dummy)

independent variables.

5. Violations of Classical Assumptions: Consequences, Detection and Remedies

Multicollinearity, heteroscedasticity, serial correlation.

6. Specification Analysis

Omission of a relevant variable, inclusion of irrelevant variable, tests of specification errors.

Readings

1. D. N. Gujarati and D.C. Porter, Essentials of Econometrics, McGraw Hill, 4th

Edition, International Edition, 2010.

2. Christopher Dougherty, Introduction to Econometrics, Oxford University Press, 3rd

Edition, Indian Edition, 2007.

3. Jan Kmenta, Elements of Econometrics, Indian Reprint, Khosla Publishing House,

2nd edition, 2008.


17

ECON-DC I: PAPER 12

INDIAN ECONOMIC DEVELOPMENT: HISTORICAL PERSPECTIVES AND

CURRENT ISSUES-I

Course Description

This course reviews major trends in economic indicators and policy debates in India, starting

from the pre-independence period and continuing to the present, and introduces students to

analytical methods appropriate for policy analysis.

1.Overview of Colonial Economy

Introduction and macro trends; major features of the economy at Independence

2.Growth and Development in Post-Independence India

Goals, constraints, institutions and performance under different policy regimes; structural

changes; regional contrasts

3.Population and Human Development

Demographic trends and population structure, issues in education and health

4.Distributional Issues

Trends and policies in poverty; inequality; malnutrition and unemployment

Readings

1. Irfan Habib, Indian Economy: 1858-1914, 2006. A People’s History of India, Volume 28,

Tulika, Selected chapters.

2. Tirthankar Roy, The Economic History of India: 1857-1947, Oxford University Press, 3rd

edition, selected chapters, 2011.

3. Pulapre Balakrishnan, “The Recovery of India: Economic Growth in the Nehru Era,”

Economic and Political Weekly, November, 2007.

4. Jean Dreze and Amartya Sen, India: Development and Participation, Oxford University

Press, 2nd

edition, selected chapters, 2002.

5. Rakesh Mohan, “Growth Record of Indian Economy: 1950-2008. The Story of Sustained

Savings and Investment,” Economic and Political Weekly, May, 2008.

6. Sumit Guha, “Mortality Decline in Early 20th

Century India,” Indian Economic and

Social History Review, 1991.

7. Tim Dyson, “India’s Demographic Transition and its Consequences for Development,”

in Uma Kapila, (ed), Indian Economy since Independence, 19th

edition, Academic

Foundation, 2008.

8. K.S James “Glorifying Malthus: Current Debate on Demographic Dividend in India,”

Economic and Political Weekly, June, 2008.

9. Rama Baru et al, “Inequities in Access to Health services in India: Caste, Class and

Region,” Economic and Political Weekly, September, 2010.

10. Geeta Gandhi Kingdon, “The Progress of School Education in India,” Oxford Review of

Economic Policy, 2007.


18

11. Gaurav Datt and M. Ravallion, “Shining for the Poor Too?” Economic and Political

Weekly, February, 2010.

12. Ajit Mishra and Indranil Dasgupta, “Inequality” in Kaushik Basu and Annemie Maertens,

editors, The New Oxford Companion to Economics in India, Oxford University Press,

2012.


19

ECON-DC I: PAPER 13

DEVELOPMENT THEORY AND EXPERIENCE-I

Course Description

This is the first part of a two-part course on economic development. The course begins with

a discussion of alternative conceptions of development and their justification. It then

proceeds to aggregate models of growth and cross-national comparisons of the growth

experience that can help evaluate these models. The axiomatic basis for inequality

measurement is used to develop measures of inequality and connections between growth and

inequality are explored. The course ends by linking political institutions to growth and

inequality by discussing the role of the state in economic development and the informational

and incentive problems that affect state governance.

Course Outline

1. Conceptions of Development

Alternative measures of development, documenting the international variation in these

measures, comparing development trajectories across nations and within them.

2. Growth Models and Empirics

The Harrod-Domar model, the Solow model and its variants, endogenous growth models and

evidence on the determinants of growth.

3. Poverty and Inequality: Definitions, Measures and Mechanisms

Inequality axioms; a comparison of commonly used inequality measures; connections

between inequality and development; poverty measurement; characteristics of the poor;

mechanisms that generate poverty traps and path dependence of growth processes.

4. Political Institutions and the Functioning of the State

The determinants of democracy; alternative institutional trajectories and their relationship

with economic performance; within-country differences in the functioning of state

institutions; state ownership and regulation; government failures and corruption.

Readings

1. Debraj Ray, Development Economics, Oxford University Press, 2009.

2. Partha Dasgupta, Economics: A Very Short Introduction, Oxford University Press, 2007.

3. Abhijit Banerjee, Roland Benabou and Dilip Mookerjee, Understanding Poverty, Oxford


4. Kaushik Basu, editor, The New Oxford Companion to Economics in India, Oxford


5. Amartya Sen, Development as Freedom, Oxford University Press, 2000.

6. Daron Acemoglu and James Robinson, Economic Origins of Dictatorship and Democracy,

Cambridge University Press, 2006.

7. Robert Putnam, Making Democracy Work: Civic Traditions in Modern Italy, Princeton


8. S Subramanian (ed), Measurement of Inequality and Poverty, Oxford University Press,

2005


20

ECON-DC I: PAPER 14

INTERNATIONAL ECONOMICS

Course Description

This course develops a systematic exposition of models that try to explain the composition,

direction, and consequences of international trade, and the determinants and effects of trade

policy. It then builds on the models of open economy macroeconomics. Although the course

is based on abstract theoretical models, students will also be exposed to real-world examples

and case studies.

Course Outline

1. Introduction

What is international economics about? An overview of world trade.

2. Theories of International Trade

The Ricardian, specific factors, and Heckscher-Ohlin models; new trade theories; the

international location of production; firms in the global economy — outsourcing and

multinational enterprises.

3. Trade Policy

Instruments of trade policy; political economy of trade policy; controversies in trade policy.

4. International Macroeconomic Policy

Fixed versus flexible exchange rates; exchange rate determination; purchasing power parity;

asset market approach.

Readings

1. Paul Krugman, Maurice Obstfeld, and Marc Melitz, International Economics: Theory and

Policy, Addison-Wesley (Pearson Education Indian Edition), 9th

edition, 2012.

2. Dominick Salvatore, International Economics: Trade and Finance, John Wiley

International Student Edition, 10th

edition, 2011.


21

ECON-DC I: PAPER 15

INDIAN ECONOMIC DEVELOPMENT: HISTORICAL PERSPECTIVES AND

CURRENT ISSUES-II

Course Description

This course examines sector-specific policies and their impact in shaping trends in key

economic indicators in India.

1.Macroeconomic policies

National Income, fiscal policy, trade and investment policy, financial and monetary policies,

labour policies

2.Agriculture

Agrarian structure and land relations; agricultural market and institutions; agricultural growth

and productivity; pricing and procurement

3.Trade, Industry and Services

Deindustrialization, evolution of industrial structure, labour relations; growth, productivity,

diversification; public sector, competition policy, foreign investment

Readings

1. Dharma Kumar, “The Fiscal System,” Chapter 12 in the Cambridge Economic History of

India, 1983.

2. Shankar Acharya, “Macroeconomic Performance and Policies 2000-8,” in Shankar

Acharya and Rakesh Mohan, editors, India’s Economy: Performances and Challenges,

Oxford University Press, 2010.

3. Irfan Habib, Indian Economy: 1858-1914, 2006. A People’s History of India, volume

28,Tulika, Selected chapters.

4. Pulapre Balakrishnan, Ramesh Golait, and Pankaj Kumar, Agricultural Growth in India

since 1991, RBI DEAP Study 27, 2008.

5. Ramesh Chand, “Understanding the nature and causes of Food Inflation, ”Economic and

Political Weekly, February, 2010.

6. A.K. Bagchi, “Deindustrialization in India in the 19th

century: Some Theoretical

Implications”, Journal of Development Studies, 1976.

7. Kunal Sen, “Trade, Foreign Direct Investment and Industrial Transformation in India”,

in Prem Chandra Athukorala, (ed), The Rise of Asia, Routledge, 2010.

8. Dipak Mazumdar and Sandeep Sarkar, “The Employment Problem in India and the

Phenomena of the Missing Middle”, Indian Journal of Labour Economics, 2009.

9. P. Goldberg, A. Khandelwal, N. Pavcnik and P. Topalova, “Trade Liberalisation and New

Imported Inputs”, American Economic Review, Papers and Proceedings, May, 2009.

10. A. Ahsan, C. Pages, and T. Roy, “Legislation, Enforcement and Adjudication in Indian

Labour Markets: Origins, Consequences and the Way Forward”, in D. Mazumdar and S.

Sarkar, (ed), Globalization, Labour Market and Inequality in India , Routledge,2008.


22

ECON-DC I: PAPER 16

DEVELOPMENT THEORY AND EXPERIENCE-II

Course Description

This is the second part of the economic development course. It begins with basic

demographic concepts and their evolution during the process of development. The structure

of markets and contracts is linked to the particular problems of enforcement experienced in

poor countries. The governance of communities and organizations is studied and this is then

linked to questions of sustainable growth. The course ends with reflections on the role of

globalization and increased international dependence on the process of development.

Course Outline

1. Demography and Development

Demographic concepts; birth and death rates, age structure, fertility and mortality;

demographic transitions during the process of development; gender bias in preferences and

outcomes and evidence on unequal treatment within households; connections between

income, mortality, fertility choices and human capital accumulation; migration.

2. Land, Labour and Credit Markets

The distribution of land ownership; land reform and its effects on productivity; contractual

relationships between tenants and landlords; land acquisition; nutrition and labor

productivity; informational problems and credit contracts; microfinance; inter-linkages

between rural factor markets.

3. Individuals, Communities and Collective Outcomes

Individual behaviour in social environments, multiple social equilibria; governance in

organizations and in communities; individual responses to organizational inefficiency.

4. Environment and Sustainable Development

Defining sustainability for renewable resources; a brief history of environmental change;

common-pool resources; environmental externalities and state regulation of the environment;

economic activity and climate change.

5. Globalization

Globalization in historical perspective; the economics and politics of multilateral agreements;

trade, production patterns and world inequality; financial instability in a globalized world.

Readings

1. Debraj Ray, Development Economics, Oxford University Press, 2009.

2. Partha Dasgupta, Economics: A Very Short Introduction, Oxford University Press, 2007.

3. Abhijit Banerjee, Roland Benabou and Dilip Mookerjee, Understanding Poverty, Oxford


4. Thomas Schelling, Micromotives and Macrobehavior, W. W. Norton, 1978.

5. Albert O. Hirschman, Exit, Voice and Loyalty: Responses to Decline in Firms,

Organizations and States, Harvard University Press, 1970.


23

6. Raghuram Rajan, Fault Lines: How Hidden Fractures Still Threaten the World Economy,

Princeton University Press, 2010.

7. Elinor Ostrom, Governing the Commons: The Evolution of Institutions for Collective

Action, Cambridge University Press, 1990.

8. Dani Rodrik, The Globalization Paradox: Why Global Markets, States and Democracy

Can’t Coexist, Oxford University Press, 2011.

9. Michael D. Bordo, Alan M. Taylor and Jeffrey G. Williamson (ed.), Globalization in

Historical Perspective, University of Chicago Press, 2003.


24

ECON-DC I-PAPER 17

RESEARCH-I

(Research Methodology: Applied Econometrics)

Course Description

The aim of this course is to provide a foundation in applied econometric analysis and develop

skills required for empirical research in economics.

Course Outline

1. Stages in Empirical Econometric Research

2. Introduction to Statistical and Econometric Software Packages

EXCEL, GRETL, E-VIEWS, STATA (at least one).

3. Regression Analysis : Diagnostics and Specification

Misspecification, functional forms, model selection.

4. Advanced Topics

Panel data models; qualitative data

Readings

1. Jeffrey M. Wooldridge, Econometrics, Cengage Learning, India Edition, 2009.

2. Dimitrios Asteriou and Stephen Hall, Applied Econometrics: A Modern Approach,

Palgrave Macmillan, 2007.

3. Damodar Gujarati, Econometrics by Example, Palgrave Macmillan, 2011.

4. Deirdre McCloskey, Economical Writing, Waveland Press,1999.

5. William Thomson, A Guide for the Young Economist, MIT Press, 2001.

6. The Chicago Manual of Style, 16th ed., University of Chicago Press, 2010.

7. New Oxford Style Manual, Oxford University Press, 2012.

http://www.palgrave.com/products/Search.aspx?auID=29598

http://www.palgrave.com/products/Search.aspx?auID=29598


25

ECON-DC I: PAPER 18

POLITICAL ECONOMY

Course Description

Employing perspectives from alternative schools of thought, this course explores the

development of the structure and institutions of capitalist economies and their relationship to

social and political forces. Students are expected to read some classic texts as well as more

recent commentaries.

Course Outline

1. Capitalism as an Evolving Economic System

Basic features; capitalism as a historical process; accumulation and crisis; the modern

corporation; monopoly capitalism—alternative perspectives.

2. The State in Capitalism

The state and the economy – contestation and mutual interdependence; the state as an arena

of conflict; imperialism – the basic foundations.

3. Governance and Regulation; theories of regulation; the political economy of policy-

making and governance; theories of rent-seeking and corruption.

4. Voting and Collective Action; positive and normative aspects of majority voting and

other common aggregation procedures; median voter theorem; positive and normative

implications of two-party and multi-party democracies; collective action; lobbying.

Readings:

1. J. Gurley, "The Materialist Conception of History", Ch.2.1 in R. Edwards, M. Reich and T.

Weisskopf (ed.), The Capitalist System, 2nd edition, 1978.

2. O. Lange, Political Economy, Chapters 1 and 2, Vol. 1, 1963.

3. E. K. Hunt, History of Economic Thought, M.E. Sharpe, Indian edition, Shilpi

Publications, 2004.

4. Irfan Habib, "Capitalism in History" , Social Scientist, Vol. 23, pp. 15-31, 1995.,

5. R. L. Heilbroner, "Capitalism", in The New Palgrave Dictionary of Modern Economics,

Macmillan, 1987. Also reprinted as Chapter 2 in Behind the Veil of Economics by R.L.

Heilbroner, W.W. Norton, 1988.

6. P. Sweezy, The Theory of Capitalist Development, Monthly Review Press, 1942, chapters

2, 4, 5, 6, 8 and 10.

7. Anwar Shaikh, Entries on "Economic Crises" and "Falling Rate of Profit" in T. Bottomore

et al. (eds.), The Dictionary of Marxist Thought, OUP, Indian edition, Maya Blackwell,

2000.

8. Vamsi Vakulabharanam, “The Recent Crisis in Global Capitalism: Towards a Marxian

Understanding”, Economic and Political Weekly, March 28, Vol. 44, pp. 144-150, 2009.

9. J. Schumpeter, Capitalism, Socialism and Democracy, George Allen and Unwin 1976,

Chapters 6, 7 and 8.

10. P. Baran, The Political Economy of Growth, 1957. Chapter 3, Pelican edition, 1973.


26

11. R. Heilbroner, The Role of the State”, 1985. Ch.4 in The Nature and Logic of Capitalism.

12. M. Kalecki, “Political Aspects of Full Employment”, in E.K. Hunt and J.G. Schwarz

(eds.), A Critique of Economic Theory, Penguin Books, 1972.

13. Amit Bhaduri, “Nationalism and Economic Policy in the Era of Globalization”, 2002. Ch.

2 in Deepak Nayyar (ed.), Governing Globalization: Issues and Institutions, Oxford

University Press [also WIDER Working Paper no.188, WIDER website (2000)].

14. Prabhat Patnaik, “Introduction”, in Lenin and Imperialism, Orient Longman, 1986.

15. James O'Connor, "The Meaning of Economic Imperialism", in Robert Rhodes, ed.,

Imperialism and Underdevelopment, New York: Monthly Review Press, pp. 101 to 111,

1970.

16. S. Bowles, H. Gintis, “The evolutionary basis of collective action”, in B. Weingast, D.

Wittman (eds.), The Oxford Handbook of Political Economy, Oxford University Press,

2008.

17. A. Dixit, “The Making of Economic Policy: A Transaction Cost Politics Perspective,”

Munich Lectures in Economics Series, MIT Press, 1998.

18. A. Dixit, “Lawlessness and economics: alternative modes of governance” The Gorman

Lectures In Economics, Princeton University Press, 2004.

19. S. Djankov, E. Glaeser, R. La Porta, F. Lopez-de-Silanes, A. Shleifer, “The new

comparative economics”, Journal of Comparative Economics 31, 595-619, 2003.

20. A. Krueger, “The political economy of a rent-seeking society”, American Economic

Review LXIV, 291-303, 1974.

21. D. Mueller, “Public Choice III,” Cambridge University Press,2003, selections from

Chapter 5, 7, 11, 13.

22. K. Murphy, A. Shleifer, R. Vishny, “Why is rent-seeking so costly to growth?”, American

Economic Association Papers and Proceedings, 409-414, 1993.

23. M. Olson, “The Logic of Collective Action,” Harvard University Press, 1965.

24. R. Posner, “Theories of economic regulation”, Bell Journal of Economics 5, 335-358,

1974.

25. A. Shleifer, R. Vishny, “Pervasive shortages under socialism”, Rand Journal of

Economics 23, 237-246, 1992.

26. A. Shleifer, R. Vishny, “Corruption”, Quarterly Journal of Economics, 599-617, 1993.

27. G. Stigler, “The theory of economic regulation”, Bell Journal of Economics 2, 3-21,

1971.


27

ECON-DC I-PAPER 19

PUBLIC ECONOMICS

Course Description

Public economics is the study of government policy from the perspective of economic

efficiency and equity. The paper deals with the nature of government intervention and its

implication for allocation, distribution and stabilization. Micro theoretic tools are employed

to examine how rational individuals respond to incentives and how government policy may

be employed to enhance social welfare. Inherently, the course would involve a formal

analysis of government taxation and expenditure.

Course Outline

1. Competitive economies

Review of exchange and production economies, and classical efficiency theorems.

2. Public goods

Various modes of provision and decision-making; mechanism design, e.g., Clarke-Groves

schemes.Club goods and local public goods; various models of provisioning; the Tiebout

model.

3. Externalities

Various examples; various models for dealing with the inefficiency; taxation, licensing,

internalization, the Coasian approach.

4. Imperfect competition

Inefficiency and welfare loss; regulation of monopolies, monopsonies and oligopolies;

detection of collusion and merger policy; taxation as a remedy.

5. Asymmetric information

Moral hazard, screening, signalling; second-best contracting.

6. Taxation

Deadweight losses, optimal taxation, tax rules and equity considerations of commodity taxes;

public sector pricing; income taxes and labour supply; various taxation schemes; models of

tax evasion, auditing and punishment.

7. Fiscal federalism

Arguments for multi-level government; optimal structure; risk sharing.

Readings

1. J. Hindriks, G. Myles: Intermediate Public Economics, MIT Press , 2006.

2. H. Rosen, T. Gayer: Public Finance, 9th

ed., McGraw-Hill/Irwin , 2009.

3. J. Stiglitz: Economics of the Public Sector, 3rd

. ed., W. W. Norton and Co,.2000.


28

ECON-DC I: PAPER 20

PROJECT


29

III. ECONOMICS DISCIPLINE COURSE-II


30

ECON-DC II: PAPER 1

INTRODUCTORY ECONOMICS

Course Description

This course is designed to expose students to the basic principles of economics. The emphasis

will be on thinking like an economist and the course will illustrate how economic concepts

can be applied to analyse real-life situations.

Course Outline

1. Exploring the Subject Matter of Economics

Why study economics? The scope and method of economics; scarcity and choice; questions

of what, how and for whom to produce and how to distribute output; the basic competitive

model; prices, property rights and profits; incentives and information; rationing; opportunity

sets; economic systems, Gains from trade; comparative advantage and trade.

2. Supply and Demand: How Markets Work, Markets and Welfare

Individual demand and supply schedules and the derivation of market demand and supply;

shifts in demand and supply curves; the role of prices in resource allocation; the concept of

elasticity and its application; consumer and producer surplus; taxes and their efficiency costs;

Restrictions on trade.

3. Introduction to Macroeconomics and National Income Accounting

Basic issues studied in macroeconomics; measurement of gross domestic product; income,

expenditure and the circular flow; real versus nominal GDP; price indices.

4. Money and Inflation

Functions of money; quantity theory of money; determination of money supply and demand;

credit creation; tools of monetary policy; inflation and its social costs; hyperinflation.

Readings

1. N. Gregory Mankiw, Economics: Principles and Applications, India edition by South Western,

Cengage Learning India Private Limited, 4th edition, 2007.

2. Joseph E. Stiglitz and Carl E. Walsh, Economics, W.W. Norton & Company, Inc, New

York, International Student Edition, 4th edition, 2007. 3. Andrew B. Abel and Ben S. Bernanke, Macroeconomics, Pearson Education, Inc., 7

th edition,

2011.

4. N. Gregory Mankiw, Macroeconomics, Worth Publishers, 7th edition, 2010.


31

ECON-DC II: PAPER 2

MICROECONOMIC THEORY AND APPLICATIONS

Course Description

The course is designed to provide training in microeconomic theory. This course looks at the

behaviour of the consumer as well as the behaviour of a competitive firm. It also covers

aspects of general equilibrium and welfare and firm behaviour in imperfectly competitive

markets.

Course Outline

1. Consumer Theory

Preference; utility; budget constraint; choice; demand; intertemporal choice.

2.Production, Costs and Perfect Competition

Technology; isoquants; production with one and more variable inputs; returns to scale; short

run and long run costs; cost curves in the short run and long run; Profit maximization; firm

behaviour in perfect competition.

3. General Equilibrium, Efficiency and Welfare

Equilibrium and efficiency under pure exchange; overall efficiency and welfare economics.

4. Imperfect Competition

Monopoly; pricing with market power; price discrimination; two-part tariff. Oligopoly.

Readings

1. B. Douglas Bernheim and Michael D. Whinston, Microeconomics, Tata McGraw-Hill

(India), 2009.

2. Robert S. Pindyck, Daniel L. Rubenfeld and Prem L. Mehta, Microeconomics, Pearson,

7th

edition, 2009.


32

ECON-DC II: PAPER 3

MACROECONOMIC THEORY AND POLICY

Course Description

This course introduces the students to modelling of a macro-economy in terms of analytical

tools. It discusses various alternative theories of output and employment determination in a

closed economy in the short run as well as medium run, and the role of policy in this context.

It also introduces the students to various theoretical issues related to an open economy. The

course also discusses aspects of economic growth.

Course Outline

1. The Closed Economy in the Short Run

Simple Keynesian model of income determination; IS-LM model; fiscal and monetary

multipliers.

2. Aggregate Demand and Aggregate Supply Curves

Derivation of aggregate demand and aggregates upply curves; interaction of aggregate

demand and supply.

3. Open Economy Models

Short-run open economy models; Mundell-Fleming model.

4. Economic Growth

Solow model; golden rule; technological progress

Readings


edition, 2010.


edition, 2010.

3 Olivier Blanchard, Macroeconomics, Pearson Education, Inc., 5th

edition, 2009.


33

ECON-DC II: PAPER 4

MONEY AND BANKING

Course Description






Course Outline

1. Money







3. Interest Rates



4. Banking System

a. Balance sheet and portfolio management.

b. Indian banking system: Changing role and structure; banking sector reforms.


Functions, balance sheet; goals, targets, indicators and instruments of monetary control;

monetary management in an open economy; current monetary policy of India.

Readings

1. F. S. Mishkin and S. G. Eakins, Financial Markets and Institutions, Pearson Education, 6th

edition, 2009.



edition, 2009.


edition, 2011.


edition, 2011.




34

ECON-DC II: PAPER 5

INDIAN ECONOMY

Course Description

This course introduces students to trends in major economic indicators and provides an

analysis of their economic impact.

Course Outline

I. Economic Development in Post-Independence India

Trends in sectoral growth, institutional framework and policy regimes

II. Growth and Distribution

Trends in poverty and inequality, measurement issues, social safety nets

III. Current Perspectives in Agriculture

Agricultural growth and composition, productivity, constraints, pricing

IV. Current Perspectives in Industry and Service

Changes in industrial growth and structure, labour; growth, productivity, public

sector, competition policy, foreign investment

Readings

1. Pulapre Balakrishnan, “The Recovery of India: Economic Growth in the Nehru Era,”

Economic and Political Weekly, November, 2007.

2. Jean Dreze and Amartya Sen, India: Development and Participation, 2nd

edition, Oxford

University Press,2002, Selected chapters.

3. Rakesh Mohan, “Growth Record of Indian Economy: 1950-2008. The Story of Sustained

Savings and Investment,” Economic and Political Weekly, May, 2008.

4. Tendulkar Committee Report, summary, sections 2 and 3.

5. Ajit Mishra and Indranil Dasgupta, “Inequality” in Kaushik Basu and Annemie

Maertens, editors, The New Oxford Companion to Economics in India, Oxford


6. Mahendra Dev, “Agriculture Development,” in Kaushik Basu and Annemie Maertens,

editors, The New Oxford Companion to Economics in India,op.cit.

7. Ramesh Chand, “Understanding the nature and causes of Food Inflation,” Economic and

Political Weekly, February, 2010.

8. Kunal Sen, “Trade, Foreign Direct Investment and Industrial Transformation in India,”

in Prem Chandra Athukorala, editor, The Rise of Asia, Routledge, 2010.

9. Isher Ahluwalia, “Industry,” in Kaushik Basu and Annemie Maertens, editors, The New

Oxford Companion to Economics in India, op. cit.

10. R. Nagaraj, “Industrial Growth,” in Kaushik Basu and Annemie Maertens, editors, The

New Oxford Companion to Economics in India, op.cit.

11. Rupa Chanda, “Services led Growth” in Kaushik Basu and Annemie Maertens, editors,

The New Oxford Companion to Economics in India, op.cit.


35

ECON-DC II: PAPER 6

DEVELOPMENT ECONOMICS

Course Description

This course reviews major policy debates in India in the post-Independence period, with

some focus on Indian agriculture and industry.

Course Outline

1. Issues in Growth, Development and Sustainability Critical evaluation of growth, inequality, poverty and competitiveness, pre and post

reforms era;mobilisation of internal and external finance; monetary and fiscal policies;

centre-state financial relations.

2. Population and Economic Development

Demographic trends; urbanisation.

3. Employment

Occupational structure in the organised and the unorganised sectors; open-, under- and

disguised unemployment (rural and urban); employment schemes and their impact.

4. Indian Development Experience

(a) Agriculture: Policies and Performance

Production and productivity; credit; labour; markets and pricing; land reforms; regional

variations.

(b) Industry: Policies and Performance

Production trends; small scale industries; public sector; foreign investment.

Readings

1. Michael P Todaro and Stephen Smith. Economic Development, Pearson, 11th

edition,

2011.

2. Uma Kapila, Indian Economy since Independence, Academic Foundation, 19th

edition,

2009.

3. United Nations Development Programme, Human Development Report 2010, Palgrave

Macmillan, 2010.

4. Government of India, Economic Survey (latest)

5. Government of India, Five Year Plan (latest)

6. Government of India, Finance Commission Report (latest)


36

IV. ECONOMICS APPLIED COURSES


37

ECON-AC: PAPER 1

GAME THEORY

Course Description

Game theory is an integral part of modern economics and many other disciplines. Its basic

ideas and methods do not need any prior knowledge of economics. This course should be

accessible to anyone with an analytical mind and exposure to elementary mathematics. This

course introduces the basic concepts of game theory in a way that allows students to use them

in solving simple problems. The course will deal with the solution concepts for normal form

and extensive form games along with a variety of applications. The course trains the students

in business, political and social strategy formulations.

Course Outline

1. Normal form games

The normal form; dominant and dominated strategies; dominance solvability; mixed

strategies; Nash equilibrium; applications.

2. Extensive form games with perfect information

The game tree; strategies; subgame perfection; backward induction in finite games;

commitment; bargaining; other applications.

Readings

1. Martin J. Osborne, An Introduction to Game Theory, Oxford University Press, New Delhi,

2004.

2. Avinash Dixit and Susan Skeath, Games of Strategy, W. W. Norton & Company Inc., New

York,1999.


38

ECON-AC: PAPER 2

FINANCIAL ECONOMICS

Course Description

This course introduces students to the economics of finance. The course does not require any

prior knowledge of economics. This course should be accessible to anyone with an exposure

to elementary mathematics. The course is designed to impart the essential aspects of financial

asset valuation. The students will be introduced to numerical techniques in finance using

spreadsheet programmes such as Microsoft Excel. The course will impart skills that will be

useful in a variety of business settings including investment banks, asset management

companies and in the field of financial and business journalism.

Course Outline

1. Deterministic cash-flow streams

Basic theory of interest; discounting and present value; internal rate of return; evaluation

criteria; fixed-income securities; bond prices and yields; interest rate sensitivity and duration;

immunisation; the term structure of interest rates; yield curves; spot rates and forward rates.

2. Single-period random cash flows

Random asset returns; portfolios of assets; portfolio mean and variance; feasible

combinations of mean and variance; mean-variance portfolio analysis: the Markowitz model

and the two-fund theorem; risk-free assets and the one-fund theorem.

3. Capital Asset Pricing Model (CAPM)

The capital market line; the capital asset pricing model; the beta of an asset and of a portfolio;

security market line; use of the CAPM model in investment analysis and as a pricing formula.

Readings

1. David G. Luenberger, Investment Science, Oxford University Press, USA, 1997.

2. Richard A. Brealey and Stewart C. Myers, Principles of Corporate Finance, McGraw-

Hill, 7th

edition, 2002.

3. Burton G. Malkiel, A Random Walk Down Wall Street, W.W. Norton & Company, 2003.

4. Simon Benninga, Financial Modeling, MIT Press, USA, 1997.


39

ECON-AC: PAPER 3

PUBLIC FINANCE

Course Description

This course is a non-technical overview of government finances with special reference to

India. The course does not require any prior knowledge of economics. It will look into the

efficiency and equity aspects of taxation of the centre, states and the local governments and

the issues of fiscal federalism and decentralisation in India. The course will be useful for

students aiming towards careers in the government sector, policy analysis, business and

journalism.

Course Outline

Part 1: Theory

1. Overview of Fiscal Functions, Tools of Normative Analysis, Pareto Efficiency,

Equity and the Social Welfare.

2. Market Failure, Public Good and Externalities.

3. Elementary Theories of Product and Factor Taxation (Excess Burden and Incidence).

Part 2: Issues from Indian Public Finance

4. Working of Monetary and Fiscal Policies.

5. Current Issues of India’s Tax System.

6. Analysis of Budget and Deficits

7. Fiscal Federalism in India

8. State and Local Finances

Readings

1. Musgrave, R.A. and P.B. Musgrave, Public Finance in Theory and Practice, Mc-Graw

Hill, 1989.

2. Mahesh Purohit , “Value Added Tax: Experience of India and Other Countries”, Gayatri

Publications, 2007.

3. Kaushik Basu, and A. Maertens (ed.), The Oxford Companion to Economics in India,

Oxford University Press,2007.

4. M.M Sury, Government Budgeting in India, Commonwealth Publishers, 1990.

5. Shankar Acharya, “Thirty years of tax reform” in India, Economic and Political Weekly,

May 2005.

6. Government of India, Report of the 13th

Finance Commission.

7. Economic Survey, Government of India (latest).

8. State Finances: A Study of Budgets, Reserve Bank of India (latest).


40

ECON-AC: PAPER 4

ENVIRONMENTAL ECONOMICS

Course Description

This course introduces students to concepts, methods and policy options in managing the

environment using tools of economic analysis. This course should be accessible to anyone

with an analytical mind and familiarity with basic concepts of economics. Since several

environmental problems are caused by economic activity (for instance, carbon emissions,

over-harvesting of renewable resources and air and water pollution as a by-product of

industrial activity), this course examines different approaches to adjusting behaviour through

economic institutions such as markets and incentives as well as through regulation, etc. It also

addresses the economic implications of environmental policies through practical applications

of methods for valuation of environmental goods and services and quantification of

environmental damages. Conversely, the impact of economic growth on the environment is

also addressed under the rubric of sustainable development. Environmental problems and

issues from the Indian and international context (especially global warming)are used to

illustrate the concepts and methods presented in the course. The course will be useful for

students aiming towards careers in the government sector, policy analysis, business,

journalism and international organisations.

Course Outline

1. Introduction

Key environmental issues and problems, economic way of thinking about these problems,

basic concepts from economics; Pareto optimality and market failure in the presence of

externalities; property rights and other approaches.

2. The Design and Implementation of Environmental Policy

Overview, Pigouvian taxes and effluent fees, tradable permits, implementation of

environmental policies in India and international experience; transboundary environmental

problems; economics of climate change.

3. Environmental Valuation Methods and Applications

Valuation of non-market goods and services--theory and practice; measurement methods;

cost-benefit analysis of environmental policies and regulations.

4. Sustainable Development

Concepts; measurement; perspectives from Indian experience

Readings

1. Roger Perman, Yue Ma, Michael Common, David Maddison and James McGilvray,

“Natural Resource and Environmental Economics”, Pearson Education/Addison

Wesley, 4th

edition, 2011.

2. Charles Kolstad, “Intermediate Environmental Economics”, Oxford University Press, 2nd

edition, 2010.


41

3. Robert N. Stavins (ed.), “Economics of the Environment: Selected Readings”, W.W.

Norton, 6th

edition, 2012.

4. Robert Solow , “An Almost Practical Step toward Sustainability,” Resources for the

Future 40th anniversary lecture,1992.

5. Kenneth Arrow et al. , “Are We Consuming Too Much?” Journal of Economic

Perspectives, 18(3): 147-172, 2004.

6. IPCC (Intergovernmental Panel on Climate Change), Fifth Assessment Report

(forthcoming 2014).

Choice Based Credit System (CBCS)

UNIVERSITY OF DELHI

DEPARTMENT OF ECONOMICS

UNDERGRADUATE PROGRAMME (Courses effective from Academic Year 2015-16)

SYLLABUS OF COURSES TO BE OFFERED Core Courses, Elective Courses & Ability Enhancement Courses

Disclaimer: The CBCS syllabus is uploaded as given by the Faculty concerned to the Academic Council. The same has been approved as it is by the Academic Council on 13.7.2015 and Executive Council on 14.7.2015. Any query may kindly be addressed to the concerned Faculty.

Undergraduate Programme Secretariat

Preamble

The University Grants Commission (UGC) has initiated several measures to bring equity, efficiency and excellence in the Higher Education System of country. The important measures taken to enhance academic standards and quality in higher education include innovation and improvements in curriculum, teaching-learning process, examination and evaluation systems, besides governance and other matters. The UGC has formulated various regulations and guidelines from time to time to improve the higher education system and maintain minimum standards and quality across the Higher Educational Institutions (HEIs) in India. The academic reforms recommended by the UGC in the recent past have led to overall improvement in the higher education system. However, due to lot of diversity in the system of higher education, there are multiple approaches followed by universities towards examination, evaluation and grading system. While the HEIs must have the flexibility and freedom in designing the examination and evaluation methods that best fits the curriculum, syllabi and teaching–learning methods, there is a need to devise a sensible system for awarding the grades based on the performance of students. Presently the performance of the students is reported using the conventional system of marks secured in the examinations or grades or both. The conversion from marks to letter grades and the letter grades used vary widely across the HEIs in the country. This creates difficulty for the academia and the employers to understand and infer the performance of the students graduating from different universities and colleges based on grades. The grading system is considered to be better than the conventional marks system and hence it has been followed in the top institutions in India and abroad. So it is desirable to introduce uniform grading system. This will facilitate student mobility across institutions within and across countries and also enable potential employers to assess the performance of students. To bring in the desired uniformity, in grading system and method for computing the cumulative grade point average (CGPA) based on the performance of students in the examinations, the UGC has formulated these guidelines.

CHOICE BASED CREDIT SYSTEM (CBCS):

The CBCS provides an opportunity for the students to choose courses from the prescribed courses

comprising core, elective/minor or skill based courses. The courses can be evaluated following the

grading system, which is considered to be better than the conventional marks system. Therefore, it is

necessary to introduce uniform grading system in the entire higher education in India. This will benefit

the students to move across institutions within India to begin with and across countries. The uniform

grading system will also enable potential employers in assessing the performance of the candidates. In

order to bring uniformity in evaluation system and computation of the Cumulative Grade Point

Average (CGPA) based on student’s performance in examinations, the UGC has formulated the

guidelines to be followed.

Outline of Choice Based Credit System:

1. Core Course: A course, which should compulsorily be studied by a candidate as a core requirement

is termed as a Core course.

2. Elective Course: Generally a course which can be chosen from a pool of courses and which may

be very specific or specialized or advanced or supportive to the discipline/ subject of study or which

provides an extended scope or which enables an exposure to some other discipline/subject/domain

or nurtures the candidate’s proficiency/skill is called an Elective Course.

2.1 Discipline Specific Elective (DSE) Course: Elective courses may be offered by the main

discipline/subject of study is referred to as Discipline Specific Elective. The University/Institute

may also offer discipline related Elective courses of interdisciplinary nature (to be offered by

main discipline/subject of study).

2.2 Dissertation/Project: An elective course designed to acquire special/advanced knowledge,

such as supplement study/support study to a project work, and a candidate studies such a course

on his own with an advisory support by a teacher/faculty member is called dissertation/project.

2.3 Generic Elective (GE) Course: An elective course chosen generally from an unrelated

discipline/subject, with an intention to seek exposure is called a Generic Elective.

P.S.: A core course offered in a discipline/subject may be treated as an elective by other

discipline/subject and vice versa and such electives may also be referred to as Generic Elective.

3. Ability Enhancement Courses (AEC)/Competency Improvement Courses/Skill Development

Courses/Foundation Course: The Ability Enhancement (AE) Courses may be of two kinds: AE

Compulsory Course (AECC) and AE Elective Course (AEEC). “AECC” courses are the courses

based upon the content that leads to Knowledge enhancement. They ((i) Environmental Science, (ii)

English/MIL Communication) are mandatory for all disciplines. AEEC courses are value-based

and/or skill-based and are aimed at providing hands-on-training, competencies, skills, etc.

3.1 AE Compulsory Course (AECC): Environmental Science, English Communication/MIL

Communication.

3.2 AE Elective Course (AEEC): These courses may be chosen from a pool of courses designed to

provide value-based and/or skill-based instruction.

Project work/Dissertation is considered as a special course involving application of knowledge in

solving / analyzing /exploring a real life situation / difficult problem. A Project/Dissertation work would

be of 6 credits. A Project/Dissertation work may be given in lieu of a discipline specific elective paper.

Details of courses under B.A (Honors), B.Com (Honors) & B.Sc. (Honors)

Course *Credits

Theory+ Practical Theory + Tutorial

=================================================================

I. Core Course

(14 Papers) 14X4= 56 14X5=70

Core Course Practical / Tutorial*

(14 Papers) 14X2=28 14X1=14

II. Elective Course

(8 Papers)

A.1. Discipline Specific Elective 4X4=16 4X5=20

(4 Papers)

A.2. Discipline Specific Elective

Practical/ Tutorial* 4 X 2=8 4X1=4

(4 Papers)

B.1. Generic Elective/

Interdisciplinary 4X4=16 4X5=20

(4 Papers)

B.2. Generic Elective

Practical/ Tutorial* 4 X 2=8 4X1=4

(4 Papers)

Optional Dissertation or project work in place of one Discipline Specific Elective paper (6

credits) in 6th Semester

III. Ability Enhancement Courses

1. Ability Enhancement Compulsory

(2 Papers of 2 credit each) 2 X 2=4 2 X 2=4

Environmental Science

English/MIL Communication

2. Ability Enhancement Elective (Skill Based)

(Minimum 2) 2 X 2=4 2 X 2=4

(2 Papers of 2 credit each)

_________________ _________________

Total credit 140 140

Institute should evolve a system/policy about ECA/ General

Interest/Hobby/Sports/NCC/NSS/related courses on its own.

* wherever there is a practical there will be no tutorial and vice-versa

Course Structure for B.A. (Hons.) Economics

Semester-I Semester-II

Economics Core Course 1 : Introductory Microeconomics Economics Core Course 3 : Introductory Macroeconomics

Economics Core Course 2 : Mathematical Methods for

Economics-I

Economics Core Course 4 : Mathematical Methods for

Economics-II

Ability Enhancement Compulsory Course (AECC)-I Ability Enhancement Compulsory Course (AECC)-II

Generic Elective (GE) Course-I Generic Elective (GE) Course-II

Semester-III Semester-IV

Economics Core Course 5 : Intermediate Microeconomics-I Economics Core Course 8 : Intermediate Microeconomics-II

Economics Core Course 6 : Intermediate Macroeconomics-I Economics Core Course 9 : Intermediate Macroeconomics-II

Economics Core Course 7 : Statistical Methods for Economics Economics Core Course 10 : Introductory Econometrics

Skill Enhancement Course (SEC)-I Skill Enhancement Course (SEC)-II

Generic Elective (GE) Course-III Generic Elective (GE) Course-IV

Semester-V Semester-VI

Economics Core Course 11 : Indian Economy-I Economics Core Course 13 : Indian Economy-II

Economics Core Course 12 : Development Economics-I Economics Core Course 14 : Development Economics-II

Discipline Specific Elective (DSE) Course-I (From List of

Group-I)

Discipline Specific Elective (DSE) Course-III (From List of

Group-II)

Discipline Specific Elective (DSE) Course-II (From List of

Group-I)

Discipline Specific Elective (DSE) Course-IV (From List of

Group-II)

Group-I (Discipline Specific Elective (DSE) Courses)

Group-II (Discipline Specific Elective (DSE) Courses)

(i) Economics of Health and Education (viii) Political Economy-II

(ii) Applied Econometrics (ix) Comparative Economic Development (1850-1950)

(iii) Economic History of India (1857-1947) (x) Financial Economics

(iv) Topics in Microeconomics-I (xi) Topics in Microeconomics-II

(v) Political Economy-I (xii) Environmental Economics

(vi) Money and Financial Markets (xiii) International Economics

(vii) Public Economics (xiv) Dissertation/Project

1

Syllabus for B.A. (Hons.)

Generic Elective Courses in Economics

Semester I Semester II

Generic Elective in Economics I: Introductory

Microeconomics

Generic Elective in Economics II: Introductory

Macroeconomics

Semester III Semester IV

Generic Elective in Economics III:

(a) Indian Economy-I OR

(b) Money and Banking OR

(c) Environmental Economics

(d)

Generic Elective in Economics IV:

(a) Indian Economy-II OR

(b) Economic History of India 1857-1947 OR

(c) Public Finance

Semester V Semester VI

2

Generic Elective in Economics I: Introductory Microeconomics Course Description

This course is designed to expose the students to the basic principles of microeconomic

theory. The emphasis will be on thinking like an economist and the course will illustrate

how microeconomic concepts can be applied to analyze real-life situations.

Course Outline

1. Exploring the subject matter of Economics Why study economics? Scope and method of economics; the economic problem: scarcity and choice; the question of what to produce, how to produce and how to distribute output;

science of economics; the basic competitive model; prices, property rights and profits;

incentives and information; rationing; opportunity sets; economic systems; reading and

working with graphs.

2. Supply and Demand: How Markets Work, Markets and Welfare Markets and competition; determinants of individual demand/supply; demand/supply schedule and demand/supply curve; market versus individual demand/supply; shifts in the

demand/supply curve, demand and supply together; how prices allocate resources;

elasticity and its application; controls on prices; taxes and the costs of taxation; consumer

surplus; producer surplus and the efficiency of the markets.

3. The Households The consumption decision - budget constraint, consumption and income/price changes, demand for all other goods and price changes; description of preferences (representing

preferences with indifference curves); properties of indifference curves; consumer‘s

optimum choice; income and substitution effects; labour supply and savings decision -

choice between leisure and consumption.

4. The Firm and Perfect Market Structure Behaviour of profit maximizing firms and the production process; short run costs and output decisions; costs and output in the long run.

5. Imperfect Market Structure Monopoly and anti-trust policy; government policies towards competition; imperfect competition.

6. Input Markets Labour and land markets - basic concepts (derived demand, productivity of an input, marginal productivity of labour, marginal revenue product); demand for labour; input

demand curves; shifts in input demand curves; competitive labour markets; and labour

markets and public policy.

3

Readings

1. Karl E. Case and Ray C. Fair, Principles of Economics, Pearson Education Inc., 8th

Edition, 2007.

2. N. Gregory Mankiw, Economics: Principles and Applications, India edition by South

Western, a part of Cengage Learning, Cengage Learning India Private Limited, 4th

edition,

2007.

3. Joseph E. Stiglitz and Carl E. Walsh, Economics, W.W. Norton & Company, Inc., New

York, International Student Edition, 4th

Edition, 2007.

4

Generic Elective in Economics II: Introductory Macroeconomics Course Description

This course aims to introduce the students to the basic concepts of Macroeconomics.

Macroeconomics deals with the aggregate economy. This course discusses the preliminary

concepts associated with the determination and measurement of aggregate macroeconomic

variable like savings, investment, GDP, money, inflation, and the balance of payments.

Course Outline

1. Introduction to Macroeconomics and National Income Accounting Basic issues studied in macroeconomics; measurement of gross domestic product; income, expenditure and the circular flow; real versus nominal GDP; price indices; national

income accounting for an open economy; balance of payments: current and capital accounts.

2. Money Functions of money; quantity theory of money; determination of money supply and demand; credit creation; tools of monetary policy.

3. Inflation Inflation and its social costs; hyperinflation.

4. The Closed Economy in the Short Run Classical and Keynesian systems; simple Keynesian model of income determination; IS- LM model; fiscal and monetary multipliers.

Readings:


edition, 2010.


edition, 2010.

3. Olivier Blanchard, Macroeconomics, Pearson Education, Inc., 5th

edition, 2009.

4. Richard T. Froyen, Macroeconomics, Pearson Education Asia, 2nd

edition, 2005.

5. Andrew B. Abel and Ben S. Bernanke, Macroeconomics, Pearson Education, Inc.,

7th

edition, 2011.

6. Errol D‘Souza, Macroeconomics, Pearson Education, 2009.

7. Paul R. Krugman, Maurice Obstfeld and Marc Melitz, International Economics,

Pearson Education Asia, 9th

edition, 2012.

5

Generic Elective in Economics III(a): Indian Economy-I

Course Description

Using appropriate analytical frameworks, this course reviews major trends in economic

indicators and policy debates in India in the post-Independence period, with particular

emphasis on paradigm shifts and turning points.

Course Outline

1. Economic Development since Independence Major features of the economy at independence; growth and development under different policy regimes—goals, constraints, institutions and policy framework; an assessment of

performance—sustainability and regional contrasts; structural change, savings and

investment.

2. Population and Human Development Demographic trends and issues; education; health and malnutrition.

3. Growth and Distribution Trends and policies in poverty; inequality and unemployment.

4. International Comparisons

Readings:

1. Jean Dreze and Amartya Sen, 2013. An Uncertain Glory: India and its Contradictions, Princeton University Press. 2. Pulapre Balakrishnan, 2007, The Recovery of India: Economic Growth in the

Nehru Era, Economic and Political Weekly, November.

3. Rakesh Mohan, 2008, ―Growth Record of Indian Economy: 1950-2008. A Story

of Sustained Savings and Investment, Economic and Political Weekly, May.

4. S.L. Shetty, 2007, ―India‘s Savings Performance since the Advent of Planning, in

K.L. Krishna and A. Vaidyanathan, editors, Institutions and Markets in India’s

Development.

5. Himanshu, 2010, ―Towards New Poverty Lines for India, Economic and

Political Weekly, January.

6. Jean Dreze and Angus Deaton, 2009, ―Food and Nutrition in India: Facts and

Intepretations, Economic and Political Weekly, February.

7. Himanshu. 2011, ―Employment Trends in India: A Re-examination, Economic

and Political Weekly, September.

8. Rama Baru et al, 2010, ―Inequities in Access to Health Services in India: Caste,

Class and Region, Economic and Political Weekly, September.

9. Geeta G. Kingdon, 2007, ―The Progress of School Education in India, Oxford

Review of Economic Policy.

6

10. J.B.G. Tilak, 2007, ―Post Elementary Education, Poverty and Development in

India, International Journal of Educational Development.

11. T. Dyson, 2008, ―India‘s Demographic Transition and its Consequences for

Development in Uma Kapila, editor, Indian Economy Since Independence, 19th

edition, Academic Foundation.

12. Kaushik Basu, 2009, ―China and India: Idiosyncratic Paths to High Growth, Economic and Political Weekly, September.

13. K. James, 2008, ―Glorifying Malthus: Current Debate on Demographic Dividend in

India, Economic and Political Weekly, June.

14. Reetika Khera, 2011, ―India‘s Public Distribution System: Utilisation and Impact

Journal of Development Studies.

15. Aniruddha Krishna and Devendra Bajpai, 2011, ―Lineal Spread and Radial

Dissipation: Experiencing Growth in Rural India, 1992-2005, Economic and

Political Weekly, September.

16. Kaushik Basu and A. Maertens, eds, 2013, Oxford Companion to Economics, Oxford University Press.

Generic Elective in Economics III(b): Money and Banking

Course Description






Course Outline

1. Money







3. Interest Rates



4. Banking System

7

a. Balance sheet and portfolio management. b. Indian banking system: Changing role and structure; banking sector reforms.


Functions, balance sheet; goals, targets, indicators and instruments of monetary control; monetary management in an open economy; current monetary policy of India.

Readings

1. F. S. Mishkin and S. G. Eakins, Financial Markets and Institutions, Pearson Education, 6th

edition, 2009.



edition, 2009.


edition, 2011.


edition, 2011.



Generic Elective in Economics III(c): Environmental Economics

Course Description

This course introduces students to concepts, methods and policy options in managing the

environment using tools of economic analysis. This course should be accessible to anyone with

an analytical mind and familiarity with basic concepts of economics. Since several

environmental problems are caused by economic activity (for instance, carbon emissions, over-

harvesting of renewable resources and air and water pollution as a by-product of industrial

activity), this course examines different approaches to adjusting behaviour through economic

institutions such as markets and incentives as well as through regulation, etc. It also addresses

the economic implications of environmental policies through practical applications of methods

for valuation of environmental goods and services and quantification of environmental

damages. Conversely, the impact of economic growth on the environment is also addressed

under the rubric of sustainable development. Environmental problems and issues from the

Indian and international context (especially global warming)are used to illustrate the concepts

and methods presented in the course. The course will be useful for students aiming towards

careers in the government sector, policy analysis, business, journalism and international

organisations.

Course Outline

8

1. Introduction

Key environmental issues and problems, economic way of thinking about these problems,

basic concepts from economics; Pareto optimality and market failure in the presence of

externalities; property rights and other approaches.

2. The Design and Implementation of Environmental Policy

Overview, Pigouvian taxes and effluent fees, tradable permits, implementation of

environmental policies in India and international experience; transboundary environmental

problems; economics of climate change.

3. Environmental Valuation Methods and Applications

Valuation of non-market goods and services--theory and practice; measurement methods; cost-benefit analysis of environmental policies and regulations.

4. Sustainable Development

Concepts; measurement; perspectives from Indian experience Readings

1. Roger Perman, Yue Ma, Michael Common, David Maddison and James McGilvray,

“Natural Resource and Environmental Economics”, Pearson Education/Addison

Wesley, 4th

edition, 2011.

2. Charles Kolstad, “Intermediate Environmental Economics”, Oxford University Press, 2nd

edition, 2010.

3. Robert N. Stavins (ed.), “Economics of the Environment: Selected Readings”, W.W.

Norton, 6th

edition, 2012.

4. Robert Solow , “An Almost Practical Step toward Sustainability,” Resources for the

Future 40th anniversary lecture,1992.

5. Kenneth Arrow et al. , “Are We Consuming Too Much?” Journal of Economic

Perspectives, 18(3): 147-172, 2004.

6. IPCC (Intergovernmental Panel on Climate Change), Fifth Assessment Report

(forthcoming 2014).

9

Generic Elective in Economics IV(a): Indian Economy-II Course Description

This course examines sector-specific polices and their impact in shaping trends in key

economic indicators in India. It highlights major policy debates and evaluates the Indian

empirical evidence.

Course Outline

1. Macroeconomic Policies and Their Impact Fiscal Policy; trade and investment policy; financial and monetary policies; labour regulation.

2. Policies and Performance in Agriculture Growth; productivity; agrarian structure and technology; capital formation; trade; pricing and procurement.

3. Policies and Performance in Industry Growth; productivity; diversification; small scale industries; public sector; competition policy; foreign investment.

4. Trends and Performance in Services

Readings:

1. Shankar Acharya, 2010, ―Macroeconomic Performance and Policies 2000-8,‖ in

Shankar Acharya and Rakesh Mohan, editors, India’s Economy: Performances and

Challenges: Development and Participation, Oxford University Press.

2. Rakesh Mohan, 2010, ―India‘s Financial Sector and Monetary Policy Reforms, in

Shankar Acharya and Rakesh Mohan, editors, India’s Economy: Performances and

Challenges: Development and Participation, Oxford University Press.

3. Pulapre Balakrishnan, Ramesh Golait and Pankaj Kumar, 2008, ―Agricultural

Growth in India Since 1991, RBI DEAP Study no. 27.

6. Kunal Sen, 2010, ―Trade, Foreign Direct Investment and Industrial Transformation in

India, ïn Premachandra Athukorala, editor, The Rise of Asia, Routledge.

7. A. Ahsan, C. Pages and T. Roy, 2008, ―Legislation, Enforcement and Adjudication in

Indian Labour Markets: Origins, Consequences and the Way Forward, in D.

Mazumdar and S. Sarkar, editors, Globalization, Labour Markets and Inequality in

India, Routledge.

8. Dipak Mazumdar and Sandeep Sarkar, 2009, ―The Employment Problem in India and

the Phenomenon of the ‗Missing Middle, Indian Journal of Labour Economics.

9. J. Dennis Rajakumar, 2011, ―Size and Growth of Private Corporate Sector in

Indian Manufacturing, Economic and Political Weekly, April.

10. Ramesh Chand, 2010, Understanding the Nature and Causes of Food Inflation,

10

Economic and Political Weekly, February.

11. Bishwanath Goldar, 2011, Organised Manufacturing Employment: Continuing the

Debate, Economic and Political Weekly, April.

12. Kaushik Basu and A. Maertens, eds, 2013. The New Oxford Companion to Economics

in India, Oxford University Press.

Generic Elective in Economics IV(b): Economic History of India 1857-1947

Course Description

This course analyses key aspects of Indian economic development during the second half of

British colonial rule. In doing so, it investigates the place of the Indian economy in the

wider colonial context, and the mechanisms that linked economic development in India to

the compulsions of colonial rule. This course links directly to the course on India‘s

economic development after independence in 1947.

Course Outline

1. Introduction: Colonial India: Background and Introduction Overview of colonial economy.

2. Macro Trends National Income; population; occupational structure.

3. Agriculture Agrarian structure and land relations; agricultural markets and institutions – credit, commerce and technology; trends in performance and productivity; famines.

4. Railways and Industry Railways; the de-industrialisation debate; evolution of entrepreneurial and industrial structure; nature of industrialisation in the interwar period; constraints to industrial

breakthrough; labor relations.

5. Economy and State in the Imperial Context The imperial priorities and the Indian economy; drain of wealth; international trade, capital flows and the colonial economy – changes and continuities; government and fiscal

policy.

Readings:

1. Lakshmi Subramanian, “History of India 1707-1857”, Orient Blackswan, 2010,

11

Chapter 4.

2. Sumit Guha, 1991, ‗Mortality decline in early 20th

century India‘, Indian Economic

and Social History Review (IESHR), pp 371-74 and 385-87.

3. Tirthankar Roy, The Economic History of India 1857-1947, Oxford University Press, 3rd edition, 2011.

4. J. Krishnamurty, Occupational Structure, Dharma Kumar (editor), The Cambridge Economic History of India, Vol. II, (henceforth referred to as CEHI), 2005, Chapter

6.

5. Irfan Habib, Indian Economy 1858-1914, A People‘s History of India, Vol.28,

Tulika, 2006.

6. Ira Klein, 1984, ―When Rains Fail: Famine relief and mortality in British India‖,

IESHR 21.

7. Jean Dreze, Famine Prevention in India in Dreze and Sen (eds.) Political

Economy of Hunger, WIDER Studies in Development Economics, 1990, pp.13-

35.

8. John Hurd, Railways, CEHI, Chapter 8, pp.737-761.

9. Rajat Ray (ed.), Entrepreneurship and Industry in India, 1994.

10. AK Bagchi, ―Deindustrialization in India in the nineteenth century: Some

theoretical implications‖, Journal of Development Studies, 1976.

11. MD Morris, Emergence of an Industrial Labour Force in India, OUP 1965,

Chapter 11, Summary and Conclusions.

12. K.N. Chaudhuri, Foreign Trade and Balance of Payments, CEHI, Chapter 10.

13. B.R. Tomlison, 1975, India and the British Empire 1880-1935, IESHR, Vol.XII.

14. Dharma Kumar, The Fiscal System, CEHI, Chapter 12.

15. Basudev Chatterjee, Trade, Tariffs and Empire, OUP 1992, Epilogue.

Background reading for students:

Irfan Habib, Indian Economy 1858-1914 (A People‘s History of India), Vol.28, Tulika

2006.

Daniel Thorner, Agrarian Prospect in India, 1977.

12

Generic Elective in Economics IV(c): Public Finance

Course Description

This course is a non-technical overview of government finances with special reference to India.

The course does not require any prior knowledge of economics. It will look into the efficiency

and equity aspects of taxation of the centre, states and the local governments and the issues of

fiscal federalism and decentralisation in India. The course will be useful for students aiming

towards careers in the government sector, policy analysis, business and journalism.

Course Outline

Part 1: Theory

1. Overview of Fiscal Functions, Tools of Normative Analysis, Pareto Efficiency,

Equity and the Social Welfare.

2. Market Failure, Public Good and Externalities. 3. Elementary Theories of Product and Factor Taxation (Excess Burden and Incidence).

Part 2: Issues from Indian Public Finance

4. Working of Monetary and Fiscal Policies. 5. Current Issues of India’s Tax System.

6. Analysis of Budget and Deficits

7. Fiscal Federalism in India

8. State and Local Finances

Readings

1. Musgrave, R.A. and P.B. Musgrave, Public Finance in Theory and Practice, Mc-Graw

Hill, 1989.

2. Mahesh Purohit , “Value Added Tax: Experience of India and Other Countries”, Gayatri

Publications, 2007.

3. Kaushik Basu, and A. Maertens (ed.), The Oxford Companion to Economics in India,

Oxford University Press,2007.

4. M.M Sury, Government Budgeting in India, Commonwealth Publishers, 1990.

5. Shankar Acharya, “Thirty years of tax reform” in India, Economic and Political Weekly,

May 2005.

6. Government of India, Report of the 13th

Finance Commission.

7. Economic Survey, Government of India (latest). 8. State Finances: A Study of Budgets, Reserve Bank of India (latest).

Skill Enhancement Courses (SEC) offered by Economics Department

Skill Enhancement Course (SEC) I: FINANCIAL ECONOMICS

Course Description

This course introduces students to the economics of finance. The course does not require any

prior knowledge of economics. This course should be accessible to anyone with an exposure

to elementary mathematics. The course is designed to impart the essential aspects of financial

asset valuation. The students will be introduced to numerical techniques in finance using

spreadsheet programmes such as Microsoft Excel. The course will impart skills that will be

useful in a variety of business settings including investment banks, asset management

companies and in the field of financial and business journalism.

Course Outline

1. Deterministic cash-flow streams

Basic theory of interest; discounting and present value; internal rate of return; evaluation

criteria; fixed-income securities; bond prices and yields; interest rate sensitivity and duration;

immunisation; the term structure of interest rates; yield curves; spot rates and forward rates.

2. Single-period random cash flows

Random asset returns; portfolios of assets; portfolio mean and variance; feasible

combinations of mean and variance; mean-variance portfolio analysis: the Markowitz model

and the two-fund theorem; risk-free assets and the one-fund theorem.

3. Capital Asset Pricing Model (CAPM)

The capital market line; the capital asset pricing model; the beta of an asset and of a portfolio; security market line; use of the CAPM model in investment analysis and as a pricing formula.

Readings

1. David G. Luenberger, Investment Science, Oxford University Press, USA, 1997.

2. Richard A. Brealey and Stewart C. Myers, Principles of Corporate Finance, McGraw-

Hill, 7th

edition, 2002.

3. Burton G. Malkiel, A Random Walk Down Wall Street, W.W. Norton & Company, 2003.

4. Simon Benninga, Financial Modeling, MIT Press, USA, 1997.

Skill Enhancement Course (SEC) II: DATA ANALYSIS

Course Description:

This course introduces the student to collection and presentation of data. It also discusses how

data can be summarized and analysed for drawing statistical inferences. The students will be

introduced to important data sources that are available and will also be trained in the use of free

statistical software to analyse data.

Course Outline:

1. Sources of data. Population census versus sample surveys. Random sampling.

2. Univariate frequency distributions. Measures of central tendency: mean, median and

mode; arithmetic, geometric and harmonic mean. Measures of dispersion, skewness and

kurtosis.

3. Bivariate frequency distribution. Correlation and regression. Rank correlation.

4. Introduction to probability theory. Notions of random experiment, sample space, event,

probability of an event. Conditional probability. Independence of events. Random

variables and probability distributions. Binomial and normal distributions.

5. Estimation of population parameters from sample data. Unbiased estimators for

population mean and variance.

6. Basics of index numbers: price and quantity index numbers.

Readings:

1. P.H. Karmel and M. Polasek (1978), Applied Statistics for Economists, 4th edition,

Pitman.

2. M.R. Spiegel (2003), Theory and Problems of Probability and Statistics (Schaum

Series).

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$ c'" REV ISED S YL LAB US FOR B.A. ECO NOi\ IiCS (flO , 'S. l

• 4 -,,---General Note: T he nature of -;cvera l of the cour~l!S i:-. ..,uch Ihal only ... elected readings call be laid down in ad\ "lIlce. T ile reading li "' l ~ will be supplcmented/upduted in regular annual meeting.., of all college tcachers uf the Un i ver~ lly leachi ng B.A .(Hons.) Economics cour!oiC'" ~hjJ t the Department of Economics organi se!'!.

Course 01 : PRI NCIPLES O F ECO NOM ICS

I : Exploring the subject matler of Economics Why study Economics" Scope and Method of Economics: The Economic Problem: Scarcity and Cho ice: the que' ti on of What 10 Produce. How to Produce and Il o\\' to Di stribute Output : Science of Economics: The Basic Competi t ive Mode l: Price,. Properly Rights and Profits: Incenti ves and Informat ion. Rati oning; Opportunity Sets: Econom ic Sy'te ms; Reading and Wor~ing \\ iIh Graphs.

2: Slipply alld Dem alld: fl olV markets 1V0rk, Markets alld Welfare Markets and Competition: Determinants of indi vidual demand/,upply. Demand/S upply schedule and demand/supply c urve, Market veNlS individu al demand/supply. Sh ift s in the de mand/supply curve, Demand and Supply IOgether. How Prices a ll ocate re,ources. ElastiCity a nd it, application: Controls On Prices: Taxes and the COSts of Taxat ion; Consumer. l' roduct:r, and the Efficiency of the Market'.

3: Th e HOllseholds The consumpti on decisions -- budget constra ints. consumption and income/price cha ngc~ .

demand for all o ther goods and price changes. Descripti on of pre fe re nces jReprese nt ing prefe rences w ith IIldiffcre nce curve,. Propel1 ie, uf Ind ifference cunes !. Con, umcrs ' optimum choice. income and substitution effects. The in vestment decision -- in veo;;Llllent alternati ves for a household. Dt!!-i. irable attribut es of in vestments Labor Supply and Savi ngs decision -- Choice between le i,ure and consum ption. labour force participation. tax policy and labour supply, Human capilal and educati on. Budget constrainb and Savings. Savings and interest rale, Other factors affecti ng ~avings.

-I: Th e Firm alld Perfec t Market Structllre Financing, cont rolli ng and managing firm s -- The fi rm"" It::g.::l1 form. Corporate Finance. why corporations ~me about financial ... (ruClure, tak eover and the ma r~ e[ for Il wnager"l, making dec i ~ i on ~, central izati on and decent ra li zati on, the boundarks or tht: finn . Behav iour of profi t max imizing lirrn :-. (:1I1d the producti on proce ...... . Short run co ... tS and ou tput decision'i, costs and output in the long run .

5: III/pelfeet Market Structllre Monopoly and antitrust po licy. governmcnt po lic ic, toward , cum petit ion. Impe rfect information in the product market--The inrormHiion proble m. T he marke t for lemons and ad verse selecti on, the incenti ve problem. the search problem. advertising. the impoJ1anc.:e of imperfect in form ati on, govern ment and in formation.

6: IlIplIl Markets Labour and Land ~ar~et s-- Bas i (' concep1s [derived demand, productivi ty of an inpu t. margi nal product of labour. marginal reve nue product] : demand for labour: input demand curves: shins in . j

inpu t demand curve..:;: elaMicily of demand in inpul mark'.!ts: competiti ve labour markcb : labour markets and public poli cy: Ltnd markets and pure re nl.

4

-: Explorillg Illtem aliollal Ecollomics The International Economy--Trade surpluses and defici ts, the economic basis for trade--absolutc .tdvantage ver~us comparative advantage. terms of trade. exchange mtes: Sources of comparative advantage -- Heckscher-Ohlin Theorem and other explanations. Trade Barriers--tariffs. sub"dic, and quota" free trade or protection--ca,e tor free trade. case for protection.

: Illtrot/uclioll to l\1ac:roecollomics The rOOIS of macroeconomics. macroeconomic concerns, the role of government in the macroeconomy, the components of the macroeconomy. the methodology of macroeconomics.

9: l1ltroduction to Naliollolillcome Accollnting Concepts of GOP and national income, approachc, 10 calculating GOP, GOP and per,onal income, 'ominal and real GOP, Limitations of the GOP concept, GOP and the black economy.

10: The Classical System: The FlIll-Employmellt Model Macroeconomic Equilibrium, the labour market. the product market. the capital market: extending the full employmen t model

I I : The S imple KeYllesiall Model Aggregate espenditure and equilibrium output--aggregate output and aggregate income. equilibrium aggregate output; Government participation in the economy: Fi"lcai policy at work-The Multiplier effect.

12: Malley ill th e Modem Ecollomy Characteristics of a monetary economy: The demand for mone); The suppl) of money and overullliquidit) position: credit creation.

13: IIIj7alioll The causes of ",nation. level of prices and the value of money. The Fisher effect. The cost of Inflation.

1,/: Explorillg tlte Macroecoll omics 0/ all Opell Ecoll omy Balance of Payments--The CUITent and capital account: Oetermining equilibrium output in an open economy: Open econom) with nexlble exchange rates--Markets for foreign exchange, Factor~ affecting exchange rates. effects of exchange rates on the economy.

Readings

1. Karl E. Cn,e and Ray C. Fair (2002). Principle> oj Economics . 6'h Edition. Pear,on Educallon Asia Ul\\ Price Edition.

2. N. Gregory Mankiw, (2002). P","ciple.1 o/Economics. Th01mon.

3. J.E. Stiglitz. and C.E. Walsh (2002). Prlllci,Jles or EcoIlOllli("\. 3'" Edition. W.W . Nonon & Company. I\'e" Yor~.

4. R. Stone and G. Stone ( 1962), Naliollal II/c","e alld E'pelldilllre. Bowe, and Bowes London .

1

Course 02: M A T"E~tATICA L i\ IETHOOS FOR ECO NO II CS

Prel i f1l i IIa ri es

; lements of logic and proof: converse and contra posit ive. necessary and sufficient condItions. ~roof b) contradiction, mathematical induction, Sets and set operations, Ordered pairs, Carte;ian

roducts of sets , Relations , Functions: one-to-one and onto funCllons, composite functions, the nverse function. The real numbers: natural numbers. integers. rational and irrational numbers;

.bsolute value and interval;: ineq ualities,

~ Elementary Linear A lgebra

~-. 3-. and n-dimensional row and column vectors: vector addition and scalar rnultiplicalion~

,ength or a vector, scalar products, onhogonalilY, Geometric representation, lines and planes in

R" and R3, Linear and COIl\'CX combinations of sector>, Linear independence, Convex selS,

\ Iat rices and matrix operations: addition. scalar mult iplication. matrix multiplication. The lnlOspose. The inverse of a square matrix . Rank. Elementary row operations and computation of rank, Invenibilit) and ran~ for square mmrices,

Determinant): definition. propertie",. minor" and cofactors. the Laplace expan",ion. exp~I11"iion by alten cofactor>: singularity and invenibility: the adjoint matrix "nd formula for the inve"e,

Lillcar equation "'y",tems in matrix and vector notation (m equations. II variables). The rank cri terion for consistency (existence of solutions), Uni queness o f solut ions; redu ndancy and degrees of freedom, The case III = II : homogeneous and inhomogeneous systems, determi nanwl criteria for consistency and uniqueness , matrix methods of solution and Cramer's Rule,

3, FII I/ctiol/S of Ol/e Real Variable al/d Applications of Calcllills

bamples (linear functions, polynomials, etc,) and elementary curve types, Sets of points in the plane determined b) equations or inequalit ie;,

Infinite seq uence and se.;es: the concepts of convergence and limits: algebraic prope'1ies of limits, Pre;ent discounted values and elements of investment analysis,

The limit of f(x) as ,\ ~ a, Continuit), The intermediate-value theorem ,

The de rivat ive of a function, Differenti ability and contllluit y, Techniques of differentiation: ~lIm~. produch and quotients of fu nctiolh: composite fUllction!', and the chain ru le. Lnverse functions, Implicit differen tiat ion, econd and higher order derinllives, Concavity and convexity of functions: Jen",en ·I.j inequality: the second derivative criterion. Poinh of inflexion. Differential; and linear approximation, Taylor's theorem and polynomial approxllnation, Indeterminate form; and L' Ho pita!' s Rule,

Exponenti al and logarithmic functions, Logari thmic differentiatiun, Examples of the u;e of the exp and log fu ncl iol1s (prop0l1 ional rates of change. elastiCities. continuou", compounding etc.)

Optimization: stationary POIIll>, local and global optima: location of turning points and points of inflexion lI'-.ing derivative",: the role of concavity and convex it) . Application",.

4. Fl/lICliOlls of Several Variables

[The elllflllll~is Ihrol/gholll shol/ld be all fllllelioll.l of 111'0 "(lr;aiJ/es (alld rel{t/ed geolllur;ml ;II1erpretallOll ) withow. however, restricting the di.\CWision ollly to this c(lse.j

Geometric representation: level curves. Partial differentiation: plane sections and geometrical interprel3tion. Tangent planes to a surface. Higher-order parlial derivatives. Young', Theorem.

PUl1ial derivatives in economic"i.

Linear approximation and differentials. The chain rule. The implicit function theorem (sl3tement only). fi"t- and higher-order derivatives of functions defined implicitl). geometric interpretation.

Il omogeneous and homothetic functions. Elasticity of substitution.

Concave ,md convex funclion~. Jensell'~ inequahty and charactenzation in terms of the Hes~ian (statement only). Con,ex sets. Quasiconca,e and qua,iconvex functions.

Maxima and minima. saddlepoinh. ullcon<.,lrained optimization. nece~sary and sufficient

conditions for local optima.

j:onstrainetl optimization (equality constraints). The method of Lagrange multipliers. Interpretation of the necessary cond iti ons and of the Lagrange multiplier: geometrical meaning.

ufficient condit ions. Envelope results. Economic examples.

Re,)dings

Knllt Sydsaeter and Peter J. Hammond (2002) Mathellllllics for Ecollolllic AIl(ll\·sis.

Pearson Educational Asia: Delhi (reprim of I" 1995 edition).

2 Alpha C. Chiang ( 1984) Fw/{llIIllellwl Methods of M(lthelll(ltical Ecollolllic,. McGraw

Ilill (3'" edition).

·------------------------------~. Course 03: STA TlSTlCAL METHODS IN ECONOMICS

I. Elemelltary Distributioll Theory

Un ivariate Frequency Distributions measures of location. Dispersion, Skewnes~ and Kurtosis; the fir!\l four moments about zero and cemralmomen ts.

2. Elemelltary Probability Theory

Concepts of Sample space and events. probability of an event: addition and multiplication theorems: conditional probability and independence of events. Bayes rule.

Concept of a random variable: Probability di~tribution. Joint Marginal and Conditional Distriblltion~. Independence of random variables: mean and variance of a random variable~ binomial and normal distribution; Law of large numbers and central limit theorem.

3. Illtroductioll to Estimatioll alld Hypothesis Testillg

Methods of sampling; sampl ing distribution of a statist ic: distribution of the sample mean: sampling error and standard error of a statistic with spec ial reference to the mean; Point ilnd interval est imat ion of parameters: properties of an estimator: unbiasedness.

• relative efficiency and consistency.

Testing of Hypothesis: type I and type II errors. power of a test; large samp le tests. t test for the mean; one tail and two tail tests for difference of means; Chi-square test for (i) goodness of fit and (i i) independence of two attributes.

4. Bivariate Distributiolls alld Simple Linear Regres.\·ioll :

Marginal and conditional distributions: discrete case: Covariance and correlati on: rank correlation.

Simple linear regression: method of least squares; Derivation of the normal equation: standard error of regression (SER). properties of the least sq uares estimator. GaussMarkov Theorem. Simple tests of hypothesis on regression coefficients. linear and exponential trend, point and interval forecasts.

5. Illdex Numbers:

Concept of an index number. Laspeyer's. Paasche's and Fisher's Index Numbers; Time Reversal, Factor reversal and circular tests; C hain base index; ProblenJs in the Construction of an index number; spl icing; base shifting and li se of index number for deflating other series.

Readin!:s:

I. P.ll. Karmel and M. Polasek. Applial Stwistics for Ecollomists (~'h edition). Pitman. Australia.

2. Alien WebSler, AJlpJ ;~" Slllri.lll c; fnr BII.I;lIn.1 """ ECOIIOIII;CS. (3'" ed ilion ). McG raw Ili \l,

[nlcrnalion,,1 Edil iun 1998.

1. M.R. Spiegel (2"" edil lon). Th~ory """ Problem.1 of Slllwr'-'·s. SehauJll Series.

Course O.l: I\IICROECOi'lOl\lICS

I. COllsllmer Theory: Preference. utility, budget constraint , choice. demand, Slutsky equation. buying and seJling, choice under uncenaimy. inter temporal choice, revealed preference.

2. Prodllctioll alld Costs: Technology. boquants. production "i th one and more variable input>. Returns to scale . ..,hon run and long run costs, CO~l cunes in the short run and long run.

3. Market Structllre alld Gallle Theory Review of perfect competition and monopoly: PricIng" ith mar~et power: price dir..criminalioll, peakload pricing, two-pmt tariff: Illonopoliloitic competit ion ami oligopoly: Game Theory and competiti'e stra tegy

.f. Gelleral Eqllilibrillm alld Ecollolllic Efficiellcy Exchange. production and welfare

5. Market Failllre E\ternalities. public goods, markets with asymmetric information

Readings:

I. Roben S. Pindy~ and D.L. Rubinfeld. (2000). Microecollomics. 3'" edition, Prentice Hall

Indi a.

2. Hal R. Varian ( 1993), Illterm,drate Microecol1omics. a Modem Approach. 3'" edition.

Affiliated East-West Pre".

I.

3.

Course 05: MACROECONOI\IICS

The Closed Ecollomy illihe Short Ruu Classical and Ke)nesian S)'tems: lS·LM model: fi,cal and monetary multiplier" aggregate demand and aggregate supply, the accol1llling identuic\.

Illflalioll alld Aggregate Supply Cline Phillips cur,e: adaptive and rational e.pectations: poliC) ineffectiveness debate.

The Medium RUII Government budget constrain t: financing governmen t expenditure through (axe",. bond.., money creation.

-I. Opell Ecollomy Models Sho.1 run open economy models: the Mundell Fleming model. E.change nile determinat ion: purchasing po"er parity. asset market approach: Dornbusch's o,er,hooting model. The monetary approach to balance of payments.

Economic Growll, Ilarrod·Domar model: Solo\\ model: elements of endogenous growth.

6. A1icroecollomic Foundations Con'l"nption: i.l\estment: demand for money and supply of money.

Readings:

r. Rudiger Dornbusch. Stanley Fischer mlCl Richard Slart7. Macroeco11omics. 7th or later edition. McGraw Hill.

1 N. Gregor) ~ l anki\\ Macroecollomics. 4'h or later edit ion. Worth Publisher;,

,~. Jones. Charles I. ( 1998). Illtroductioll 10 ECOIIOIIIIC Grott,th, W, W. Norton & Com pan) . Chapte" I. 2. .

4. Sen. A.K .. ed.1 1970) Grmrth Ecollomics. Pengu.n Book,.

Attfield. eL.F.. D. Demery and N.W. Duch (199 1), Ratiollal ExpeclGlIolI.\ III

MucroecO/wmic,. 2"" ed iti on. Blackwell. Chapter, 1.2.4,.

6. Shcffrin. Steven. M. (1996). RaliOlwl E.lpec({/tiolll. 2"" ed ition . Cambridge Un ivers ity Press.

Course 06: ECOI'\O~ II C IIISTO RY OF II'\O IA 1857-1 9-17

Colonial India: An Overview

Trends In macroeconomic aggregate>: Population. labour force and occupmional structu re; I'\ational Income: Foreign trade and balance of paymen ts; Saving and in vestment : Money ,uppl) and prices.

Rai lway\ and Economic Change

Agriculture. land. labour, capi tal, tech nolog). com merciali7ation. famines and em'ironment.

Traditional and Modern Industry: The deindustriali7ation hypothesis. rise of the modern indl"'trial sector during the pre-war and the interwar period, indust rial labour, growth of entrepreneu"hip.

The Role of Government

The Indian Economy at Independence

Read ings

I. A.K. Bagchi (1976), "Deindustrialization in India in the Nineteenth Century: Some theoreti cal implicat ions". l Ollmol ~f Del'eloplllelll Stlldie,.

2. A. K. Bagchi ( 1972). Pri""," IIlI 'estlllellt illilldia, Orient Longman ( I" ed). Ch.2.

1. J. '. Bhagwati and Padma Desai ( 1970), Il1dia, Plalllllllg Jor Imillsfrlllli:otion. Oxford Uni, ersi ty Pre", Chs. 2 & 3.

4. Basudev hatteljee, Trade. Tariffs & Elllpire, Lancashire alld British Policy ill Illdia, 1919-1939. Oxford Univers lt) Pre". 'e\\ Delhi, 1992. eh.2.

5. RaJnara yan Ch'lI1davarkar ( 1985), "Industrialilation in India before 19-17' Conventi onal Approache~ and Alternative Per~pect i ve.,". Moder" ASI(III Swdie.\

6 Jean Drele, "Famine Pre,entl on in India". in J. Dreze, and A.K. Sen. (edq. Poillicol £CO/IOIIIY of /llIllge r, WIDER Studies in Development Economics

7. D.R. Gadgil ( 1971 ), The Illdustrial £"Ollllioll oj India in I?ecel/l Till1es. Oxford University Pre".

8. Om~ar Goswami ( 1989). "Sahibs. Babus and Banias: Changes In Induwial Control in Eastern India". lOllmal oj Asim/ Stlldies.

9. Sumit Guha ( 1991 ). "Mortal it) Dec line in &rrly 20th Century Indi a". llId;all £collolllicond Social History Rel'iel' .

10. Sumit Guha (1999), EiIl'ironme1ll and Dhnicily in India, 1200·1991. Cambridge University Press. Ch.8.

II. Ira Klein( 1984). "When Rains Fail: Famine Relief and Mortality in British India", Indian Economic and Social HisTOry Review.

12. Dharma Kumar (ed.) (1983), The Cambridge Economic Hislory oj India. Vol. II~ Cambridge University Press, Chs. 4, 5, 6, 8.2,10 & 12,

13. Morris D. Morris (1965), The Emergence oj an Indllslrial Labollr Force in India: A SllIdyoJ Ihe Bombay Corron Mills 1854·1947, Oxford University Press, laS! chapter.

14. Rajm Ray (ed) (1992). EllIrepreneurship and IndllslI'." in India, 1800·1947. Oxford University Press, Introduction.

15. Rajat Ray (1979). Indllslriali~alion in India. Oxford University Press. Ch. 4.

16. Tinhankar Roy (2000). The Economic HislOIY oJ India. 1857·19-17, Oxford University Press. Ch.3. 4. 7. 8 & 9.

17. Sivasubramonian (1997) . "Revised estimates of the national income of India, 1900·190 I to 1946-47", Indian Economic alld Social HislOIY Reviell'.

18. B.R. Tomlinson (1993), The Economy of Modern India, Cambridge University Press. Ch.1 & 2.

19. B.R. Tomlinson (1979). The Polilical Economy of Ihe Raj 1914·1947: The economics oj decoloni~alioll in India, Macmillan, Ch. 3 & 4.

Course 07: India's Economi c Development since 1947

Unit I : Major features of Indian economy at Independence

Unit 2: Growth. development and struc tural change a) The ex perience of growth and developmen t: planning and the market b) Growrh and Development experi ence in difrerent Ph,,,e, o r Growrh

defined broad I) (but not exc lusively) by reference to changes in poli cy regimes and goals of development.

Growth and structural change Growth and distribution Human development and environment Regional contrasts

c) Indi an development ex perience in internat ional perspecti ve: fac tors . strategy and policy

Unit 3: Issues in Indi an economic Policy a) Populati on and Iluman resource development b) Growth , unemployment and povert y c) Macro economic srabili sa ti on: Trade. Fi sca l and Monetary policy iswes. d) Agricultu re. indus try. services and trade

Unit 4: India'S development prospects - looki ng ahead

Readings : (To be reviewed annually to keep abreast of new Readings )

I. MOlllek S. Ahl uwali a, (2002). "State-leve l Performance under Economi c Rerorm, in India". in A.O. Krueger (ed), Economic Po lic y Reforms and the Indian EcononlV. The Uni versity of Chicago Press.

2. Pranab Bardhan (2003). Povert y. Agrar ian Struc ture and Pol it ical Economy in India: Selec ted Essays. OU P. Ch.s.

3. Jagdi sh Bhag"ati , ( 1993). Indi a in Transi ti on, Freein g the Economy. Clarendon Pre", Ch.2. 4. __ and Padma Desa i.( 1970) India: Pl annin g ror Ind ust riali zat ion (Oxford Uni 'er> ity Pre,s), Ch.2. 5. S. Chakravarty. ( 1987). Development Plannin g: The Ind ian Experie nce. Clarendon Press, Chs. 2.3 and 5. 6. Y. M. Dandekar. ( 1992). "Fort ) Yea rs Aft er Independence" in Bimal Jalan (ed.). The Indi an Economy. Problems and Perspects. Viking Pres,. 7. Angus Deaton and Jean Dreze (2002). "Pove rty and Inequal ity in Ind ia: A Reex aminatio n". EPW. September 7, 2002. 8. Jean Dreze and AmaJ1 ya 5en.(2002). Ineli a Deve lopment and Part ic ipati on. OU P. Chs. 2.3,5,6 and 7. 9. Jean Drezc and Gita Kingdon (200 I). " School Partic ipat ion in Rural Indi a". Rev,ew or Developme nt Economi cs. Yo LS. No. 1. 10. Rake,h Mohan (2003). "Small Scale Industry Po licy in Ind ia: A Criti ca l Eval uation" in A.O. Kruegcr (ed .) Economi c Policy Reforms and the Indian Economy. II. Sebasrian Morris (200 1), " Issues in Infra,truc ru re Development Today: The Inrer linkages'", in India Infra ') truclUre Repol"l , OUP.

12. B.S. Minh", (1991). Public vs. Pnvate Sectors. Neglect of I..<:"on, of Economic, in Indian Policl Formulation. R.R. Kale Lecture. Gokhale In,titute of Polnic, & Economic;, Pune. 13. R. lagaraj (2003). "Industrial Policy and Performance Since 1980". EPW, August 30 - September 7, 2003. 14. Kirit S. Parikh. A. Ganesh Kumar and Gangadhar oarbha (2003), "Growth and Welfare Consequences of Rise in MSP", EPW. March 1,2003. 15. Mihir Rak,hit (2001), "On COITecting Fiscal Imbalance, in the Indian Economy: Some Pe"pecti'·es". Monel and Finance. ICRA Bullelln. July-September 2001 16. Mihir Rakshit (2002), Food Policy in India: Some Longer-Term I"ues". I>lonC) and Finance, ICRA Bulletin, April-September. 2002. 17. Y.M. Rao, and P.O. Jeromi.(2000) "ModernizlIlg Indian Agncuiture: Priority Tasb and Critical Policy" Study 1'10.21. oRG, RBI. 18. S.K. Ray (1996), "Land Systems and the Reform, in India". Indian Journal of Agricuituml Economics, January-June 1996. 19. T. '. Srini""an. (2000). Eight Lectures on India's Economic Reforms, OUP. 20. T.N. Srlni"a,an (2003), "India's Fiscal Situation: I, a crisis Ahead?" in A.O. Krueger (ed.). Economic Policy Reforms and the Indian Economv. 21. T.N. Snnivasan. and Surcsh O. Tendulkar (2003), Rcintegrating India with the World Econom), OUP, Chs. 2 and 3. 12. K. Sundaram and Suresh O. Tendulkar (2002), The Working Poor in India: Emplovment Poverty Linkages and Emplovment Policv Options, I"ues in Employment and Poverty. oiscus>ion Paper -l, ILO. Geneva. September 2002.

Course 08: ECONOMY, STAT E AN D SOCIETY

I. A llalysillg Socio-ECOllomic Challge ill Historical Perspective.

2. Capitalism as all Economic System : Origins. nature and \tructure of capitalism: Accumulation and crisis: Alternative perspecti ve') on capitali<.,tn.

3. The tramitioll from Feudalislll to Capitllli,lIl.

-I . The Evolvillg S truclllre of Capitalism : Monopol) capitalism: The modern corporation: divorce between 0\\ ne"hip and control: The Inslllutional diversity of capitalism:

Alternative perspectives on the role of state. •

5. Capitalism ill a Global COlltext: Multinational corporations and their impact on the

developing economies; imperialism.

Readin gs:

Gurley (1978): "The Materialist Conception of I lislOry". Ch.2. 1 in R. Edwards. M.Reich and

T. Weisskopf (ed.). The Capitali.1I Sy.llem (2,d edition). and editorial comment in 3'd edition

(1986) pp. 7-10. Prentice Hall.

O. Lange. Political Ecollomy. vol I . Chapters I and 2.

R.L. Hcilbroner ( 1987). "Capitalism". in The Nell' Palgral 'e Dictionary oj Modern

ECOIIOIII/C.I. Macmillan . Also reprinted as Chapter 2 in Behilld the Veil of Economics by R.L.

Heilbroner (1988). W .W.Norton .

-l D. Foley (1983). "Commodity". in T . Bottomore el ai led.). The Dictiollal), (!f MlIrti;t

Thought .. 0 P. (Indian edi tion. Maya Blackwell. 2000) .

A. Shaikh (1983). "Economic Crises" and "Falling Rate of Pro l' t". in T. BOllomore et al

(cds.). The D,ctiOllllry of Mani't Thought, OUP. (I ndian edition. Maya Blac~well. 2000) .

6. P. Kenway (1987). "C rises" and "Realisation Problem" in The Nell' Palgral·e DictiOllary of

MOl/ern Economics. Mrtcmillan

7. T. BOllomore (1985). Th,orie, of Modern Capirali.,,". Allen & Unwi n. Chapters on Weber

and Schumpetcr.

8. 1. Schumpeter \ 19.12). Capiwli.\IIl. SOCilllil/ll tI"d O"1Il0cracY, George Allen and UI1\\ in

( 1'!76 edition). Chapters 7 and X.

9. P. Baran (1957). The Polllicall-;mllolllY ,,/Croll·th. Chapter 3. (Pel ican cdilion. 1973).

10. 1.K. Galbraith (1967). The Nell' Industrial Swte. Chapte" 2 - 7.

I I. R. Blackburn,(ed.) ( 1972), Ideology ill Social Sciellce. Chapter 8. Fontana.

12. S. Hymer: Pan I of "The Multinationa l Corporation and the Law of Uneven Development ".

in H. Radice (eel. ) IIIlerna liol1al Firms alld Modern lll1perialism (also in J. Bhagwati (ed.)

Ecollomic.1 alld Ihe IVa rid Order from Ihe 1970,' to the 1990s)

13 W. Lazonick ( 1994). "Soc ial Organi sati on and Technological Leade"h ip". in W.Baumol et al

(ed.) COllrergel1ce oj Prodllcti,it)'. Oxford.

14 P. Hirst and J. Zeit l in ( 1997). "Flex ible Specialisa ti on : Theory and E\ idence in the Analysis

of Indu>lrial Change". in R. Boyer et al (ed .). COil temporary Capi({lli.lm . Cambri dge

Uni ver, it y Pre".

15. M . Kalecki (1943). " Pol itica l A spects 01 Full Employment". in E. K. Hunt and J.G. SchwaCl

(eds.) A Critiqlle oj Ecol1omic Theon ' (Al so in Kalecki. Selected Essays Oil the DYllamic.! oj

the Capilali.lt Ecol1omy . Cambridge University Pre". 197 1 ).

16. T.N. Srinivasan ( 1985). "Neoclassica l Politi cal Economy". chap. X. IO. I in G.M . Meier

(ed.) LeadillR IssLle.! III Ecol1oll1ic DeI·elofJmelll ( 6'h editi on J. OUP Ind ia. 1995.

17. Peter Evans ( 1998). ''Transnational Corporati ons and the Thi rd World StHles". in R.Kozul

Wri ght and R.Ro\\ thorn (ed.). 7rall",atlollal CorporallOlIs alld the Natioll S({lte (till sec

6.2). M acmillan.

18. Prabhat Patnaik ( 1986). " Introduction" (pp. 1-2 1) in Lellill alld Imperialism . ed. P. Patnaik •

Orient Longman.

19. Prabhat Pa!lIaik ( 1996): "Global isati on of Capita I and the Theory of Imperiali sm". Social

SC/ellllst. Nov.- Dec .. pp. 5 - 17.

20. Rodney I Ii lion (ed.) The Transllion from Feuda lism to Capital ism. Introduction.

21. Paul S\\eez). A. Critique. in Hilton (ed.)

n . Maurice Dobb. A. Rep ly. in Hilton (ed. )

Course 09:DEVE LOI' i\1 EiXT TH EO RY AN D EX P ERI ENCE

ParI I : Growlh alld De,'elop melll Development and underdevelopment (size of the market: characteristics and measures of de\elopment): Historical experience of development (stages of growth: late industrialization:

structural analysis). Poverty and inequality (conceptual issues and measurement: capabilities and entitlemen ts: policies for poverty reduction) Slate nnt! the market (murket fa ilure: govern menl failure: conflict \cr..,us complementarity)

Project Appraisal and Soc ial Cost Benefi t AnalySIs

I'arl Il : Resollrces Capital and technical progre" (role of capital: capital output ratio: resource allocation; level and pattern of capital formation: patterns of technical progress: technology and unemployment: obsolescence: choice of techniques ) L:lbour and employment issues (popUlation gro\\ th: demographic transition: human resource development; surplus labour: open and disguised unemployment; informal sector: rural-urban

migration) Land and the fllrnl econom) (overview of farm Hnd non-farm seClor; credit and micro-credit:

IIlteriocked markets. natural re,ources: environment and sustainable development) fbe Em ironment and Sustainable Development, Non Renewable resources.

ParI Ill: Globalisalio ll alld D evelopmelll Trade policy debate (export promot ion and import substitu tion. WTO -' structure and funclions: WTO and LDCs) Foreign capital (role and limitations: MNCs: Third World debt nisi" private foreign investment:

I~ I F "lid World fla nk)

Part I V: Overview (I l1ti CO il temporary Issues

Readings

I. Michael P. Todaro (1997). Ecollomic Del'elopmelll, Internat ional Student (Sixth) Edilion. Addison-Wesley

2. Debraj Ray (1998). Del'elopmelll ECo/1Om/('s. OUP 3. Gerald M. Meier ( 1995), Leadill!: Isslle.1 ill Ecollomic Del'e/ol'melll. Sixth Edition. OUP ~. Jean D ... !ze and Amartya Sen (1995). Ecollolllic Del'elol'melll "lid Social 01'1701'11111111', OUP 5. A.P. ThirlwalJ ( 1999), Groll'llt "lid DeI'elopmelll 1I'1I1t Special Referellce /() DeI'elopillg

Ecollomies, Macmillan. 6th Edition 6. S Chakrav.,1y, ''The Stale of Development Economics" based on Lecture at Manchester

Uni\er, ity in 1985, Ch.S. pp.IS~-203 in S. ChakravHrty ( 1997): Wrilillgs Oil Del 'ei017l11elll.

Oxford University Press.

COURSE 10: INDIA AGRICULTURE A D INDUSTRY

P,\RT-I : AGRICGL TURE

Agricu ltural Performallce since Independence Output and producti\ ity gro"th: reg,onal and crop pe"pective" Gro\qh and instabdit).

! Tile Policy Ellvirolllll ellt Agricultural price policy and wb,idie,: The public distribution system

3, Resource Use Efficiellcy Feniliser. Water. Other inputs

~ . Currellt Issues ill Illdiall Agriculture (selectet! topics) Sustainable agricultural gro\\ th-concepl\ and constraints Prospects for dryland agriculture International trade in agriculture Technology policy Market II1fra~tructure Crop in~l1rance

5. Agricultural Exports Quantitative Restrictions (QRs) and Non tariff barnel"' WTO and Subsidies in De\eloped Countries Managel1lenl of Shortage, and ""pluses.

Rcadin~s

I. Vaidyanathan. A. ( 1 99~). "Performance of Ind ian Agriculture since Independence" in Kaushik Basu (ed.). Agrariall Qllelriolls Oxford Un iversi ty Press.

1. V.M . Rao. (200 I J. "The 1aking of Agricultural Pri ce Policy: A Revie\\ of the CACP Report>" Journal of Illdiall School of Polirical Ecolloll1Y vol. XIII. no. I. lan-March.

3. Roben Evenson. Carl Pray and lark Rosegrant ( 1999). Agriclllrllral Rnearell alld Prodllcri, ·ir.\' Gro",rll IIIllldia (IFPRI Research Repon 109).

4. Gunvan t Desai and A. Vaidyanathan (1995). Srraregic IS.\IIes ill Flllllre Gr()ll'rh ill Ferriliser U!Je ill Illdia . Macmillan.

5. Ashllk Gulat' (2000). " Indian Agriculture III an Open Econom): Will it Prosper'" III

Ah Illwal ia and Little (cds.). Illdia" Ecollomic R~rorllls alld Del'elopmellt: EJSa.".\ for Alcltll1lo/Ul11 Singh. Oxford Uni\'er~lly Prt:".."..

PART-II: IND UST RY

I. O)lenriew of til e ludll strial Scelle ill India Trend, in growth and productivity; Compet' tl\ ene" and changes in Polic) Regimes

2.lssl/ es relarillg to th e Call/positioll of Illdiall IlIdllslry I. Small vs. Large Industry 2. Public vs. Private Sector. with emphasis on: 3. Performance of the public sector .... Privatisation 5. D) namics of the Industrial Sector: Gro\\ th and Sicknc"

3. Trellds ill IlIdll strial Reglliatioll alld COlltrol Pricing in the public and private sectors Employment growth in the indusu'ial sector

~ . Policy Isslles alld Future Prospects _ofrastructure; Technology

: .Isslles of Mallagem ellt Luniting marker abuses FDis/Flls

6. Fillall cillg of Illdustry OWllership and Ejficiency Equity markets

Readings

L J. Bhagwati ( 1993), India in Transition: Freeing tlte £conoIllY. Clarendon Ox ford 1993 , Mrinal Datta Chaudhri (1990), Market Failure and Government Failure: Journal o/Economic

PerspecliI 'es 3. NCAER Tlte Illclia !njimtrllcture Report (Rakesh Mohan Committee) ~. Department of Disinvestment. White Paper. 2000 5. Dilip Mookherjee, ed. (1995), Inclian Inclus"y, Oxford Univers ity Press, New Delhi. .1

Course II: 10NEY AN D FINANCIA L M A RKETS

I. I\1oll ey ill the Fillall cial System

Money and il~ functions; financial market'), finaJlciallnMrllment~ and money: Demand

for money·· variou, approache" Money and Capilalmarket. Financial deepening.

Mall ey S lIpply Allalysis

Theory of money ~upply; money multiplier :maly~i~; monetary aggrc!gares: monetar) aggregates in India: financial innovation~ Cemral Ban~'s Fu nction" Reserve/High Powered Money. MOnelar) Survey and Cemr,,1 Bank\ Balance shecl.

3. A llalysis oj {llterest Rates

Interest rmes in closed and open economies: Theories of term structure

Fillallcial Markets

Banking system. bond market, foreign exchange market. equit), market Imroducllon to the concept of Derivati, es FUlUrcs, Options. Call/Pul.

MO lletary {>oliey

Goah-. targets. indicators and the tran:-.miss ioll mcchan i-;m: instruments of monetary

polic)

Mo netary 1~1a llagel1l e/Jt ill A ll Ope" £coll omy

Intemational capital market.." portfolio di\"ersilication: the internatlonaimonetary ",)l.itCIll: monetar) policy in India's open economy: financial sector reforms in India. The r\ara,il11ham COml11illee RepoI1.

Readings

M.K. Lew" (2000), MOllellllY ECOIIOl11iCl, OUP

2 \1.R. l3 ayc, f) W. Jansen ( 1996), MOlley /J(/I/kil/fi and Fi/wl/cwl Markell , AITBS . (Ind ian :.dillon)

Maurice LeVI ( 1999). Il/lemallOl/al Fil/al/ce, Ta ta McGraw 11 ill

~ L.M . Bhole ( 1999).I·/I/{lIIcial l n.\liluliol1.\ alld Markel\' Tala Mcgraw Hill

) . R.B.I. Bulletill, Annual Re"orr~ Report 01/ Currency ond Finance

O. R.B. 1. . RepoI1 of the COml11illee on the Financial Sy,tcl11 (Narasll11ham Commillee Report I)

- R.B.1. - Report of the Comminee on Banking Sector Reform, (Narasimham Comminee Report II) Summary in RBI Bulletin. July. 1998.

R.B.I - Report of the Working Group: Money Supply Anal)tic, and Methodology of ':ompilalion. 1998.

Y V. Reddy (2000). MOl/elw)' and FinClncial SeC/or R~r()rlll'\ iI/India UBSPD. New Delhi

Course 12: PUBLIC ECOr-;OM ICS

Par/I: Theory

I. Fiscal functions: An overview 2. Tools of nonnative analysi" Pareto efficlenc) . equity and the social welfare

function: market failure 3. Public goods: definition, model of efficient allocation. pure and impure public

good" free riding 4. Externalities: The problem and its solutions. taxes versus regulation. property

rights, the Caase Theorem 5. Taxntion: Its econom ic effects: dead wcigh t loss and distortion, efficiency and

equity considerat ion\), Lax incidence, optimal taxation 6. Fiscal federalism. the economic basi~ of decentralisation.

Par/II: II/dial/ Public Fillallces

I. The Indian tax system 2. Public expenditure in India : II> panern and growth 3. Public <.Iebl. deficits and subsidies in the Indian economy 4. C~ntre-State financial relallOIl\

Readings

I. R.A. and P.B. Musgrave, ( 1989). Public Fillallce ill TheOl)' al/d Practice, McGraw Hill.

2. Harvey Rosen ( 1999) . Public Fillance. McGr:I" II ill.

3. John Cullis and Philip Jo nes (1998). Public Finallce alld Public Choice, Oxford Uni versi ty

Press.

4. J. R iehard Aronson ( 1985). Public Flllallce. 1\ leG ra" II i II.

5. Governmelll of Indi a (1992). Interim Report of the Tax Reforms Comminee. l\linistry of Finance .

6. R.J . Chclliah (1996), TOIl"Qrds Sustainable GrOll/h. Oxford Ullise"it) Press.

7. Mihir Rikshlt (2000), "On Correcting Fiscal Imbalances in the Indi an Economy: Somc Perspecti ves'·. ICRA Bulle/ill.

8. Mahesh Purohit (2001). Value Added T(I\. Gayatri Publications.

9. Rakesh Mohan (2000), "Fiscal Correction for Economic Growth: Data. Analysis and Suggestions", Econol1lic alld Poli/ical Weekly, June 10.

10. O.K. Joshi and LL. Bajaj (19991. Governmelll Finances. 'CAER (mimeo).

II. M.G. Rao and Tapas Sen (1996). Fiscal FederalislIllllllldi" . Macmillan.

12. Government of India (2000), Report of the Eleventh Finance Commission.

13. O.K. Srivastava (ed.) (2000). Fiscal Federalil/ll ill IlIdi,,: COII/eIllIJOrar.1 Challt!II~e.l. Hal' Anand Publications. New Delhi .

Course 13: COl\ IPARAT IVE ECOi'\OM IC DEVELOPI\ IE 'T [1850·1 950]

Pe"pective, on Comparative Economic Development: (ajFeatures of and trends in \Iodern Economic Growth .. a brief di,cu"ion of Kuznets' finding, (b) Gerschenkron\ ~ypothe,is of Economic De,elopmel1\ in Historical Perspective

-\n overview of economic development of the countrie~ selected for ca~e studie .... -- Britain.

Germany, U.S.A., Japan and USSR.

Change, in the "ructure of agriculture and economic development .. Britain. Japan and U.S.S.R.

Role and pallern of Indu>trialisation in Britain. Japan and U.S .S.R.

Labour market> and labour processe, . Britain and Japan

Financial institution, and economic development in Germany, U.S.A and Japan

~oreign trade and economic development .. Britain. hlpan and USA.

Role of the State In economic development (regulatory and developmental role) .. Japan, USA

amI USSR.

Readings

G.c. Allen, "Industrialisation of the Far Ea,," in Call1bridge Economic Hislory of I:.llrope

(CEliE). Vol.V I. Part II.

, W.A. Cole. "The Gro\\Ih of National Incomes". CEliE. Volume VI. Part 1.

3. Richard A. Easterlin. Da, is and Parker (1972) Amen("{/n Econolllic Groll'llt: An econollli.\I·, HISIOI} oj lite Uniled Slales. Harper & Ro\\ Chs. I. 9.1~ and 17.

~. Phyllis Deane ( 1966). Tlte Firsllndllsrnal Rel'O/lIIion, Cambridge University Press. Ch.3

Phyllis Deane, "'Great Britain" Ch.3 in the Fontana Econolllic Hi<lory oj Ellrol'e (FEll E). Tlte Elllerfience (}f Indllslria/ Socielie;, Part one.

6. Maurice Dobb (1977). SO!'iel Econolllic Del'e/Ol'lIIenl since /9/ 7 ed.6. Routledge & Kegan Paul, Clls. 9. 10

7 A. Ger;chcnkron ( 1969). Econolllic Backward"e.'s in IlislOrica/ Perspeclive. I larvard Uni,er,it) Pre5', Ch.1

Benrand Gille. "Bank1l1g and Indu"rialilation in Europe 1730·1914". in FEHE. Tlte Indllllria/ Rem/lllion . Vol. 3. Ch . 4.

9. Paul R Gregory and Roben C. Stuart ( 1986). SOI'lel Economic Sll"IIclure and Performance, Il arper & RO\, (3rd ed) Ch,. 104,5 & 7.

10. Gregory Gro,sman, "Russia and the So,iet Union " 111 rENE. Vol IV. Part II, Ch. 8.

, Hayami (1975). A CelltlllY oj Agricllltllral Crowth ill Pre-War Japall: Its Relel'allce to rail Developmenl. University of Minnesota Press. Chs. I. 3, and 8.

_ 1:..1 Hob;bawm ( 1968). Illdustn' Qlld Empire: All ECOlll/mic History oj Britain since 1750.

\ eidenfeld & Nicholson. Ch;.1.2.3.5.6.

L.1. Hobsbawm (198-l). World oj Labollr: Fllrther .Itlldies in the historY oj labour. London

Weidenfeld & I\'icholson. Ch. I I

• Chal mers Johnson ( 1982). MIT! alld the Japallese Miracle: The Crowth oj Illdllstrial Policy

925-1975. Stanford University Press. Chs.I.9 .

.::; Okochi. Karsh and Levine (1965), Worker,\' (Illd El1Iployee:o:. in Japan, The Japanese

Emplo)'mellt relatiolls system. University of Tokyo. Ch.13

Simon Kuznets. Economic CrolVth alld StruClllre. Oxford & IBH. Ch.l.

- Simon Kuznets ( 1966). Modern ECOllomic Croll·th: Rate, StrIlClllre & Spread. Yale

l!niversity Press . Ch 10.

w. W. Lockwood (ed) (1965), State and Economic ElIlerprise ill Japall, Princeton University

Press, Ch.2. 195-215.

W.W. Lockv.ood (1966). ECOllomic Del'elol'melll of Japan. Expanded edition, Princeton

University Press. Chs.6.7 & 10

21 Peter Mathias (1983). The First Industrial Nation, An t:conomic HislOrv oj Britain, 1700-

1914.2'" edn. Methuen Chs.I,3.8 and 15.

21. Roderick Floud and D. McCloskey (ed) ( 1981), Economic History of Britain Since 1700.

Cambridge University Press, (2nd ed) Ch. 12.

2~. T. 'akamura (1983) Economic Crowth in Pre-War Japan, Tr. by Robert A Feldman, Yale

Uni\er,ity Press. Chs. 1,2.3.5 and 6.

23. Alec Nove ( 1969) An Economic HistoJ)" oj USSR. Pen gui n. 1969. Chs.5.6.7.8.9.

2-l. Sidney Pollard, "Labour in Great Britain" in CEHE, ch3. Vol. VII. Part I.

~5. Michael Piore and Charles Sabel The Second Indllstrial Dil'ide: PossibilitiesJor Prosperity.

Basic Books.

26. Richard Tilly. "German Banking" in JOl/rnol f!f Elll"Opean [("(il/omie Hi.worv. 1986, Vol. 15 .

No.1.

27. William Woodruff. "Emergence of International Economy 1700-1914" in FEHE. 7/le

. t

Course 14: INTROD UCTO RY ECONOI\ IET RI CS

I. Nature allli scope oj ecanometrics

1. Review oj Statistics (i) De;criptive statistics: (a) the ulllvariate case. (b) the bivariate case; (ii) Random Variable, and Probability distributions; (iii) Estimation of pam meters; Testing of hypotheses

3. Classical Linear Regression Model." Two l'ariabl. Case (i) Descri pt i ve Aspects (ii) Propenies of Lea" Squares estimate;; tes" of hypOlheses and confidence interva"; Gauss - Markov Theorem (i ii ) Forecm,ting

4. Classical Multiple Linear Regression Model . (i) Descripti\e Aspec" : Lea" Squares Estim"tlon : R' and Adjusted R' : Partial

Correlation.., (ii) The ClaSSical Model : Gaus, - Marko\ Theorem: Standard Error of E;timate

Standard error~ of regre~\ion coefficients (iii) Tes" of H)pOlheses : Single Parameters: Sets of Parameters (iv) Forec,u,ting (v) Functional Forms of Regression Models (vi) Dummy Variables

5. Fiolations oj Classical Assumptions and Remedies (i) MullieoJline"rity (ii) Heleroscedasticit) (ii i) Auto-correlation

6. Specification Analysis (i) Omission of a relevant \ariable (ii) Inclu sion of Irrelevanl variable (iii) Tests of Specification Errors

7. Simple Applications oj Least Squares (i) Estimation of Engel Functions (ii) Estimation of Cobb-Douglas Production function (iii) Estimation of Consumption function

Readings

I . D. Gujarati (1999). EJ"entia/s of Econometrics. MeGr"" Hill.

2. A.S. Goldberger ( 1998).lntrodllcron EC"onometl"lcl. H.lfvard Uni\ersit) Press. Cambndge.

Course IS: TOPI CS IN 11 C RO ECONOMI CS

, Decision theory lillder uacertaillly

_ Basic notiolls oj lIoll -cooperative game theory lplclC information game') in eXlcl1\ive frolll (relatively informal introduction) and .... trategic I. pure and mixed ~trategie,; dominanl5lrmegic'> equilibrium . Nash equilibrium and subgamc

h!Cl equilibrium.

I pplica/iolls oj lIIaterial ill Sec/ioll 2 >umot. Bertrand, tacke lberg, HOIell ing, Prisoners' Dilemma, Centipede, Banle of the Sexe,. ~I(ken, Simple dy namic game (e.g. ent ry deterrenc~). Auction, (,ealed~bid first price. ,e"led d ,ecolld price. Engli,h. Dutch). etc.

~ In complete ill/ormation games , \/ora/ hazard problems

I dl'erse selec/ioll problems - Sigllalillg games

Readings

L.M.B. Cabral, (2000) 11l/l'Odl/c/1011 10 {lIdl/51ri,,1 Org,,"i:a/ioll. MIT Pre,s.

P.K. Duna ( 1999) S//'{/tegie; "lit! Came.l: Theory alld Practice. M IT Pre".

E. Ra~ll1u"en (1994) Cames olUl "~r()rl1larioll:;\1/ Introducriol1lO Came Them:". 2nd

Edition. Blacb,e ll.

\

Course 16: TO PI CS IN I\ IACROECONO~ I1 CS

lIathematical Prerequisites : Difference equal ions: differelll ial equati ons: phase plane analysis: dynam ic oplimization

_ Growth Theory: .·olow model: oplimal growtb : O\erJ apping ge nerations model: endogenous gro"lh

Ratiol/al Expectatiol/ s: Lucas critiq ue; pol icy ineffecli veness; time inconsi"ency: Dornbusc b's oversbooling model

\ 'elV Keyl/ esial/ Models: a) Real and nominal price rigid ity: menu cOSI-= co-ordin al ion fa il ures; im perfeci

competition b) Rea l and nominal "age rigidily: Insider- outs ider model>: effi ciency wages: implicil

contrac t., .

VO II \Va /ras;au Economics: Dual dec ision hypOl hesis: Keynesian and Classlcal unemploymelll

Structuralist Macroecol/omics: Closed and open economy slruclUral ist models.

Read ings

\.\. HOY, J. Liverno is. C. McKen na. R. Rees, T. SlCngos ( 1996), Malhematics Jo r Ecol/olllics, Addl son-Wes ley.

, AC. Cbiang ( 1992). Elelllents of Dl"lGlllic O" lillll:Olioll. McGraw Hill. C. Jones ( 1998). '" lrodLtC/ionto Ecollolllic Groll'lh. NO l1on. O. Blancbard and S. Fiscber ( 1989), Leclllre.' 011 MacroeconOIlIlC<. /vi IT. W. Scal1b ( 1996). Macroecollolllic;. Dryden. S. Sbeffrin (1996). Raliol/ol Expectations. Cambridge Uni versily Press. R. Dornbuscb ( 1980). Open Economy Macroeconolllic; . Basic Books. '. Manki w and D. Romer ( 1991). ed., Nell' Ke,\IIesial/ Econolllic;, MIT, 2 vol umes. Selecled

Readings. 9 W. Branso n ( 1989), Macroeconomic Theon' and Policy, 3'· Ed ition. Harper Collin s. 10. L. Taylor ( 199 1 ). Incollle Distrlblllion. InflatIOn alld Growlh, 1\1 IT.

Course 17: I i\TER~AT I ONAL £CONO~II CS

Part l

The ~ubject malter of international eCOnOI11IC~ Comparali,e ad\anlage: Ricardian. specific-faclor>. and I !Cckscher-Ohlin modds. I erms of trade. immiserising growth. and the transfer problem.

e\\ lrade lheorie>: economics of scale and imperfect compelilion International factor movements: labour migration and foreign investment. Trade policy and welfare. wilh ,pecial reference 10 de\eloping counlric,. The internmionaltrading "ystem: 'NTO and prcferentiailrading agreementf-,.

Part II

ReView of national income and balance of paymenb accounting. The foreign exchange market and c\change rate detcrrnimllion. Opcn economy macro-economics: Determination of output. inlcrc'-ol rate ... and exchange rate .... in

the long and "hart rlln~. Macro-economic policy in an open economy and IIltcl11ational policy coordination: fixed and

n~xible exdwngc rates. Intern~ltlonal monetary in:-,titulion" and i:-"ue~: IMF. currency ·crise<." ... tabiliz.ation Hnd other

contemporary is,ue,.

Readings :

I. Paul Krugman and Maurice Obslfeld. !lIlenwliolllll ECOllomic's: rheory and polin" late"a edllion. Pearson Educalion low-price "dillon. di,lflbuled in India b) Addison-\\ csley

Longman.

2. W.M. Corden (1974). Trade Pol,,'.\' alld \Velf"re. Clarendon Oxford. Chaplers 1.2 and 9.

3. TN. Sriniv"san (1998). Del'eI(ll'ill~ CUlllltrleS alld Tile MII/Ti/uTera/ TrC1l/ill,~ S."STelll, OUP.

Deihl. Chaplers 5-K

4. '\mirav K. Dull (1995). "The Open Econom{' III Prabhat Palnaik (ed. l. MaCI'{!-eCO"IIIIIICS.

OUP, Delhi.

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