1
COURSES OF STUDIES
U.G. Economics (Honours and Elective)
SEMESTER EXAMINATION
2014-17
DEPTARTMENT OF ECONOMICS
RAVENSHAW UNIVERSITY CUTTACK-753003
2
Under Graduate Course
Department of Economics
Ravenshaw University, Cuttack
Syllabus-Academic Session 2012-15
FIRST SEMESTER Total Hours (Weekly) Total credit
SL.No. Paper Code Paper Name Marks L T P/S C
1. AH-1.1.1 Principles of Economics-I 50 3 1 0 3
2. AH-1.1.2 Mathematics for Economics-I 50 3 1 0 3
3. AH-1.1.3 Statistics for Economics-I 50 3 1 0 3
SECOND SEMESTER
SL.No. Paper Code Paper Name Marks L T P/S C
1. AH-1.2.4 Principles of Economics-II 50 3 1 0 3
2. AH-1.2.5 Mathematics for Economics-II 50 3 1 0 3
3. AH-1.2.6 Statistics for Economics-II 50 3 1 0 3
THIRD SEMESTER
SL.No. Paper Code Paper Name Marks L T P/S C
1. AH-2.3.7 Micro Economics -I 50 3 1 0 3
2. AH-2.3.8 Macro Economics- I 50 3 1 0 3
3. AH-2.3.9 Development Economics –I 50 3 1 0 3
FOURTH SEMESTER
SL.No. Paper Code Paper Name Marks L T P/S C
1 AH-2.4.10 Micro Economics -II 50 3 1 0 3
2 AH-2.4.11 Macro Economics -II 50 3 1 0 3
3. AH-2.4.12 Development Economics -II 50 3 1 0 3
3
FIFTH SEMESTER
SL.No. Paper Code Paper Name Marks L T P/S C
1. AH-3.5.13 Micro Economics - III 50 3 1 0 3
2. AH-3.5.14 Indian Economy -I 50 3 1 0 3
3. AH-3.5.15 Public Finance-I 50 3 1 0 3
4. AH-3.5.16 Elementary Econometrics 50 3 1 0 3
5. AH-3.5.17 International Economics-I 50 3 1 0 3
6. AH-3.5.18 Monetary Economics-I 50 3 1 0 3
SIXTH SEMESTER
SL.No. Paper Code Paper Name Marks L T P/S C
1. AH-3.6.19 Macro Economics - III 50 3 1 0 3
2. AH-3.6.20 Indian Economy -II 50 3 1 0 3
3. AH-3.6.21 Public Finance-II 50 3 1 0 3
4. AH-3.6.22 History of Economic Thought 50 3 1 0 3
5. AH-3.6.23 International Economics-II 50 3 1 0 3
6. AH-3.6.24 Monetary Economics-II 50 3 1 0 3
4
SEMESTER- I
PRINCIPLES OF ECONOMICS- I
(PAPER-1.1.1)
Unit I Basic Concepts of Economics
i) Scope and Method of Economics: What is Economics, Why study Economics, Scope
and Fields of Economics, The methods of Economics, The Economic Policy, PPF-some
elementary ideas, different economic systems-elementary ideas, How to read and
understand graphs; slope: nature and measurement.
ii) Demand, Supply and Market Equilibrium: Firms and Household; input markets and
output markets: The Circular Flow; Demand and supply, individual and market demand
and supply and their determinants, Market Equilibrium, Price rationing and alternative
Rationing Mechanisms; Price Elasticity and its determinants.
iii) Household Behaviour and Consumer Choice: The consumption decisions –Choices
made by Households; budget constraints, Basis of Choice: Utility; Diminishing MU,
allocating income to maximise utility, income and substitution effects, Consumer Surplus,
Meaning and Properties of Indifference curves, Consumers’ optimum choice, Household
labour supply decision, Income and substitution effects of a wage change
Unit II Firm Behaviour and Market:
i) Production: Production, Behaviour of profit maximizing firms, Production Functions with
one variable factor of production, TP, MP, AP, Production Functions with Two variables factor of
production, Isoquant and Isocost lines, Cost minimising equilibrium Condition,
ii) Cost and Revenue Functions: Accounting and Economic costs, Costs in the short run,
Fixed costs, variable costs, Marginal costs, Long run AC and MC, TR,MR,AR, (in perfect
competion and monopoly)---Concepts and Graphs, Output decision taking Costs and
Revenues (Total and Marginal methods)
iii) Markets, Perfect and Imperfect, Features of Perfect Competition, Monopoly,
Oligopoly and Monopolistic markets
Unit III Input Markets and International Economics
i) Input Markets: Labour, Land and Capital Markets (Basic concepts), Demand for inputs,
Diminishing Returns, Marginal Revenue Product, Input demand curve; Labour Market
and demand for labour; shifts in input demand curves; Land markets and rent, Capital
Market, Capital Income-Interest and profit
ii) The International Economy: Trade surpluses and deficits, the economic basis for
trade—absolute advantage andcomparative advantage, terms of trade, exchange rates;
Trade Barriers--tariffs, subsidies and quotas; The cases for free trade or protection
Basic Readings
1. Case Karl E. and Fair Ray C. Principles of Economics, Pearson Education Asia
Additional Readings
1. Mankiw N. Gregory. Principles of Economics, Thomson.
2. Stiglitz J.E. and Walsh C.E. Principles of Economics, W.W. Norton & Co, New York.
5
. SEMESTER- I
MATHEMATICS FOR ECONOMICS -I
(PAPER: 1.1.2)
Unit I Basic Concepts
Sets and set operations. Real Numbers, Ordered pairs, Cartesian products, intervals, Some
properties of Point Sets in Rn
– Euclidean distance, Є- neighbourhood, boundary point of
a set, open, closed and bounded sets, convex combination, convex sets, interior points,
strict convexity vs weak convexity, Relations and Functions, Basic terminologies of
functions, types of functions: polynomial functions-linear, quadratic, cubic and nth
degree
polynomial, rational functions, rectangular hyperbola, power, exponential and
logarithmic functions, composite functions, the inverse function, and their curve types.
Sequence and series- the concept of convergence of a sequence and its limit at a point;
Properties of a convergent sequence; Series- arithmetic, geometric and harmonic
Unit II Differential Calculus
Univariate calculus:Continuity of a function, the concept of slope of a function, derivative
of a function, conditions for differentiability, rules of differentiation: sums, products and
quotients of functions, composite functions and the Chain Rule, inverse functions,
derivative of different types of functions, indeterminate forms and L’Hopital’s Rule.
Second and higher order derivatives. Applications to verify concavity and convexity,
Taylor’s series formula and the mean value theorem.
Unit III Linear Algebra
Systems of linear equations: properties of their solution sets; matrices-elementary
operations- matrix addition, product, rank of a matrix, determinants and their properties,
inverse of a matrix, application of Cramer’s rule for solution of a system of linear
equations.
Vector spaces: algebraic and geometric properties, scalar products, basis of a vector
space, orthogonality; linear transformations: properties, The Eigenvalue problem, spectral
decomposition of a square matrix, Quadratic Forms- positive/negative definite, semi-
definite and indefinite forms.
Basic Reading List
1. Hoy, Michael, John Livernois, Chris Mckenna, Ray Rees and Thanasis Stengos,
Mathematics for Economics, PHI Learning
Additional Reading List
1. Sydsaeter Knut and Hammond Peter J. Mathematics for Economic Analysis. Pearson
Educational Asia
2. Chiang Alpha C. and Wainwright Kevin. Fundamental Methods of Mathematical
Economics. McGraw Hill
3. Silberberg Eugene and Suen Wing. The Structure of Economics: A Mathematical
Analysis, Irwin McGraw Hill.
6
SEMESTER- I
STATISTICS FOR ECONOMICS-I
PAPER-A.H 1.1.3
Unit I Measures of Central Tendency
Arithmetic Mean, Median and Mode (for both Grouped and Ungrouped Data), Properties
of Arithmetic Mean, Graphical Location of Median and Mode, Comparison of Mean
Median and Mode; Geometric and Harmonic Mean, Index Numbers: Their Concept as
Weighted Averages, Problems in the Construction of Index Numbers, Chain Index, Cost
of Living Index Number (Different Formulae), Wholesale Price Index and Cost of Living
Index in India, Base Shifting, Uses of Index Numbers.
Unit II Dispersion, Skewness and Kurtosis
Range, Quartile Deviation, Mean Deviation and Standard Deviation, Properties of
Standard Deviation, Comparison of Different Measures of Dispersion, Measures of
Relative Dispersion–Curve of Concentration, Measurement of Economic Inequality- Gini
Coefficient and Coefficient of Variation/Lorenz Curve, Measures of Skewness and
Kurtosis. The Concept of Moments.
Unit III. Correlation Analysis and Regression
Elementary Analysis of Linear Correlation: Covariance, Scatter Diagram, Coefficient of
Simple Correlation–Properties and the Method of Calculation, Concept of Spearman’s
Rank Correlation.
The Concept of Regression, Regression Lines and their Estimation in a Bivariate series,
Least Squares Method, The Concept of r2 and Standard Error of Estimate.
Basic Reading List
1. Gupta, S.C. Fundamentals of Statistics, Himalaya Publishing House, Delhi
2. Gupta, S.C and V.K. Kapoor, Fundamentals of Mathematical Statistics, S Chand &
Co
Additional Reading list
1. Goon A. M, Gupta M. K. and Dasgupta B. Fundamentals of Statistics, Vol-I World
Press, Kolkata
2. Mood. A. M, Graybill, F A. and Boes D. C. Introduction to the Theory of Statistics,
McGraw Hill.
3. Mukyopadhyay P. Mathematical Statistics. Kolkata Publishing House.
4. Murray R. Speigel Theory & Problems of Statistics, Schaum’s Publishing Series.
5. Nagar and Das, Basic Statistics, OUP.
7
SEMESTER- II
PRINCIPLES OF ECONOMICS- II
(PAPER-1.2.4)
Unit I Introduction to Macroeconomics
The roots of macroeconomics, Difference between micro and macro economics,
macroeconomic concerns, the role of government in the macro economy, the components
of the macro economy, the methodology of macroeconomics.
Introduction to National Income Accounting: Concepts of GDP, GNP and national
income, approaches to calculating GDP, personal income, Nominal and real GDP,
Limitations of the GDP concept, GDP and the black economy.
The Classical System: The Full-Employment Model: Macroeconomic Equilibrium, the
labour market, the product market, the capital market; extending the full employment
model.
Unit II The Simple Keynesian Model
Aggregate expenditure and equilibrium output--aggregate output and aggregate income,
equilibrium aggregate output; Government participation in the economy; Fiscal policy at
work--The Multiplier effect.
Money in the Modern Economy: Characteristics of a monetary economy; The demand for
money; The supply of money and overall liquidity position; credit creation.
Unit III Inflation and Open Economy
The causes of inflation, level of prices and the value of money, the Fisher effect, the cost
of inflation.
Balance of Payments--The current and capital account; Determining equilibrium output in
an open economy; Open economy with flexible exchange rates--Markets for foreign
exchange, Factors affecting exchange rates, effects of exchange rates on the economy.
Basic Readings
1. Case Karl E. and Fair Ray C. Principles of Economics, Pearson Education Asia
2. Mankiw N. Gregory. Principles of Economics, Thomson.
Additional Readings
1. Stiglitz J.E. and Walsh C.E. Principles of Economics, W.W. Norton & Company,
New York.
2. Stone R. and Stone G. National Income and Expenditure, Bowes and Bowes London.
8
SEMESTER- II
MATHEMATICS FOR ECONOMICS -II
(PAPER: 1.2.5)
Unit I Optimization
Necessary conditions for unconstrained maxima and minima, points of inflexion; Second
order conditions, optimization over an interval,
Multivariate calculus: partial and total differentials of first and second order Applications
to verify convexity/ concavity and quasiconvexity/quasiconcavity, unconstrained
optimization- first order conditions for optimisation, second order conditions, Constrained
optimization with equality constraints: Lagrange method- first and second order
conditions.
Unit-II Integral Calculus
Riemann integral- partition over an interval and Riemann Sum, integrability of a function,
fundamental theorem of integral calculus, properties of definite integrals,
Improper integrals- applications in measuring consumer surplus and present value of an
indefinite stream of payments under continuous discounting,
Indefinite integrals- Rules of integration; Techniques of integration- substitution rule and
integration by parts
Unit-III Dynamics Methods
Linear first-order difference equations, non-linear first order difference equations, linear
second order difference equations
Linear first order differential equations, non-linear first-order differential equations, linear
second order differential equations.
Basic Reading List
1. Hoy, Michael, John Livernois, Chris Mckenna, Ray Rees and Thanasis Stengos,
Mathematics for Economics, PHI Learning
Additional Reading List
1. Sydsaeter, Knut and Hammond Peter J. Mathematics for Economic Analysis. Pearson
Educational Asia
2. Chiang, Alpha C. and Wainwright Kevin. Fundamental Methods of Mathematical
Economics. McGraw Hill
3. Silberberg, Eugene and Suen Wing. The Structure of Economics: A Mathematical
Analysis, Irwin McGraw Hill.
4. Silberberg, E. The Structure of Economics, 2nd Edition McGraw Hill International
Edition,
9
SEMESTER- II
STATISTICS FOR ECONOMICS- II
(PAPER-1.2.6)
Unit I Sampling Theory and Probability
Principal steps in a sample survey; methods of sampling: random-simple and stratified
random sampling, types of SRS and STRS, properties of random samples; non-random
sampling, sampling vs. non-sampling errors, Probability: Concepts of Sample Space and
Events, Probability of an Event, Addition and Multiplication Theorems; Conditional
Probability and Independence of Events; Bayes theorem.
Unit II Probability Distributions
Probability Distributions: Concept of a Random Variable, Discrete and Continuous
Random Variable, Probability Density Function, Mathematical Expectation and Its
Properties, Sampling Distribution of Sample Mean and Sample Variance
Theoretical Distributions: Binomial distribution- its properties, Poission distribution and
its properties, poission distribution as a limiting case of binomial distribution, normal
distribution-its properties, nomal distribution as a limiting case of binomial distribution,
Central Limit Theorem
Unit III Estimation and Hypothesis Testing
Estimation: parameter and statistic, estimates and estimators, point estimators and its
properties (small sample and asymptotic properties), confidence intervals for population
parameters
Hypothesis Testing: Defining statistical hypotheses; null vs alternative hypotheses, Type
I and Type II errors; power of a test; the concept of degrees of freedom; testing
hypotheses related to population parameters based on Z, t, χ2 and F-tests.
Basic Reading List
1. Gupta, S.C. Fundamentals of Statistics, Himalaya Publishing House, Delhi
2. Gupta, S.C and V.K. Kapoor, Fundamentals of Mathematical Statistics, S Chand & Co
Additional Reading list
1. Goon A. M, Gupta M. K. and Dasgupta B. Fundamentals of Statistics, Vol-I World
Press, Kolkata
2. Mood. A. M, Graybill, F A. and Boes D. C. Introduction to the Theory of Statistics,
McGraw Hill.
3. Mukyopadhyay P. Mathematical Statistics. Kolkata Publishing House.
4. Murray R. Speigel Theory & Problems of Statistics, Schaum’s Publishing Series.
5. Nagar and Das, Basic Statistics, OUP.
10
SEMESTER- III
MICRO ECONOMICS - I
PAPER-A.H-2.3.7
Unit I Consumer’s Choice
Consumer preferences, assumptions about preferences, indifference curves, cases of
perfect substitutes, perfect complements, bads, neutrals, satiation, discrete goods and well
behaved preferences, the marginal rate of substitution, behavior of MRS, Constructing a
utility function from indifference curves;
The budget constraint, properties of budget set, changes in budget line, the numeraire,
taxes, subsidies, and rationing;
Utility function-ordinal and cardinal utility; constructing indifference curves from a utility
function and vice-versa, some examples of utility functions- perfect substitutes, perfect
complements, quasi-linear preferences, Cobb-Douglas preferences, Marginal utility and
MRS
Optimal choice and consumer demand in ordinal preferences, optimal choice under
different goods and preferences- perfect substitutes, perfect complements, neutrals and
bads, discrete goods, concave preferences, Cobb-Douglas preferences
Unit II Demand
Normal and inferior goods, income offer curve and the Engel Curve, Shapes of income
offer curves and Engel Curves in cases of- presence of inferior good, perfect substitutes,
perfect complements, Cobb-Douglas preferences, homothetic preferences, quasi-linear
preferences; ordinary goods and giffen goods, the price offer curve and the demand
curve, shapes of price offer curves and offer curves in cases of perfect substitutes, perfect
complements, discrete goods; gross substitutes and gross complements, the inverse
demand function
Slutsky equation: the substitution effect, the income effect, the total change in demand,
the rates of change, the law of demand, income and substitution effects in cases of perfect
complements and perfect substitutes, quasi-linear preferences, Hicks substitution effect,
compensated demand curves
Consumer’s surplus: Marshallian and Hicksian (Compensating and Equivalent Variation)
Unit III Technology, Production and Cost
Inputs and outputs, technological constraints and production set, examples of technology-
fixed proportions, perfect substitutes, Cobb-Douglas; properties of technology, the
marginal product, the rate of technical substitution, diminishing marginal product, the law
of variable proportions and the law of returns to scale
Cost: fixed and quasi-fixed cost, sunk cost, variable costs; average costs- average fixed
cost and average variable costs; marginal costs and variable costs, long-run costs- LAC
and LMC, factors behind cost behavior: economies and diseconomies of scale
11
Production with two outputs- Economies of scope; dynamic changes in costs-the Learning
Curve
Profit maximization for a firm in short-run and long-run, profit maximization and returns
to scale; cost minimization
Basic Readings
1. Varian H. R. Intermediate Micro Economics: A Modern Approach. Affiliated East -West
Press
2. Pindyck R S. and Rubinfeld D. L. Micro Economics. Prentice Hall, India
Additional Readings
1. D. N. Dwivedi. Micro Economics Theory and Applications. Pearson Education.
2. Nicholson Walter and Snyder Christopher, Microeconomic Theory-Basic Principles and
Extensions. Cengage Learning
3. Maddala G. S. and Miller E. Micro Economics. McGraw-Hill International Editions.
12
SEMESTER- III
MACRO ECONOMICS- I
PAPER-A.H-2.3.8
UNIT I National Income and its measurement
Introduction to National Income, Concepts of GDP, GNP, GDP Gap, GDP Deflator and
national income, Rules and Methods of Measurement of GDP (Income, expenditure and
Out Put method), Circular Flow of Income and expenditure in two, three, and four-sector
economy. Measuring Inflation rate and Unemployment rate; The Relation between GDP
Gap, Inflation rate and unemployment Gap.
UNIT II Classical Macroeconomics
The aggregate supply function-Production function and aggregate supply curve; Say’s law
of markets, Output and Employment in classical theory, the quantity theory of money and
aggregate demand function , classical model with and without saving and investment.
Keynes’ objection to the classical theory.
UNIT III Keynesian Macroeconomics
Keynesian equilibrium, the consumption function, effective demand, the multiplier, the
simple Keynesian model of income and output determination, Keynes’ fundamental
psychological law of consumption and its implication. Government participation in the
economy; Fiscal policy at work-The Fiscal Multiplier effect.
Basic Readings
1. N. Gregory Mankiw. Macroeconomics, Worth Publishers, 7th
edition, 2010.
2. Shapiro, E. (1996), Macroeconomic Analysis, Galgotia Publications, New Delhi.
3. Ackley, G. (1976), Macroeconomics: Theory and Policy, Macmillan Publishing Company
Additional Readings
1. Dornbusch, Fischer and Startz, Macroeconomics, McGraw Hill, 11th edition, 2010.
2. Errol D’Souza, Macro Economics, Pearson Education, 2009.
3. D. Dasgupta. The Macroeconomy, Oxford University Press, 1997
13
SEMESTER III
DEVELOPMENT ECONOMICS-I
PAPER-A.H 2.3.9
Unit I Economic Growth and Development
Meaning of development and Economic growth, Characteristics of less developed
countries. Factors in Economic development, Measuring development and development
gap — per capita income, inequality of income and wealth, Gini coefficient, Human
Development Index , Physical Quality of Life Index, and other indices of development,.
Unit II Theories of Economic Development
Theories of Economic Development: Classical (Smith, Ricardo, Malthus), Marxian –
Theory of Social change, immutable laws, Crisis in capitalism, Schumpeter and capitalist
development, Rostow’s stages of growth.
Unit III Approaches to Economic Development
Partial theories of growth and development: Vicious circle of Poverty, Circular causation,
Theory of unlimited supply and labour, big push, balanced growth, unbalanced growth,
circular causation theory, Critical Minimum Effort Thesis, Low level of equilibrium trap,
Dualism: Technical, behavioural and social
Basic Readings
1. Ghatak, S. An Introduction to Development Economics, Allen and Unwin, London.
2. Todaro, M. P. Economic Development, Longman, London.
3. Thirwal, A. P. Growth and Development, Macmillan, U. K.
Additional Readings
1. Adelman, I. Theories of Economic Growth and Development. Stanford University
Press, Stanford.
2. Chenery, H. and T.N. Srinivasan (Eds) Handbook of Development Economics, Vols 1
& 2 Elsevier, Amsterdam.
3. Kindleberger, C. P. Economic Development, McGraw Hill, New York.
4. Myint, H. Economic Theory and Underdeveloped Countries. Oxford University Press,
New York.
14
SEMESTER IV
MICRO ECONOMICS-II
PAPER- AH 2.4.10
Unit I Analysis of Competitive Markets-I
Characteristics of Perfect Competition, Price determination
Market demand: From individual to market demand, elasticity and demand, elasticity and
revenue, income elasticity and cross elasticity
Competitive supply: pure competition, the supply decision of a competitive firm, the shut
down condition, the inverse supply function, Profits and producer’s surplus in the short-
run, the long-run supply curve of a competitive firm,
Industry supply curve in the short-run, elasticity and market supply; the industry long-run
supply curve of under different cost conditions, the meaning of zero profits, fixed factors
and economic rent, producer surplus in the long-run
Unit II Analysis of Competitive Markets-II
Evaluating the gains and losses from government policies- consumer and producer
surplus, efficiency of a competitive market, minimum prices, price support and
production quotas, import quotas and tariffs,
Competitive factor market- demand for a factor input when (a) only one input is variable,
(b) when several inputs are variable; the market demand and market supply of inputs,
equilibrium in a competitive factor market
Unit II Monopoly, Monopsony and Monopolistic Market
Monopoly: Characteristics, average revenue and marginal revenue, output decision of a
monopolist- short-run and long-run equilibrium, mark up pricing, Equilibrium of a multi-
plant Monopolist, inefficiency of monopoly, monopoly power and its sources, deadweight
loss from monopoly power, natural monopoly; Monopsony and monopsony power
Monopoly behavior: Price discrimination under Monopoly: First degree, second degree
and third degree price discrimination
A note on monopolistic competition- selling cost, excess capacity in monopolistic
competition
Basic Readings
1. Pindyck R S. and Rubinfeld D. L. Micro Economics. Prentice Hall, India
2. Varian H. R. Intermediate Micro Economics: A Modern Approach. Affiliated East -
West Press
Additional Readings
1. Nicholson Walter and Snyder Christopher, Microeconomic Theory-Basic Principles
and Extensions. Cengage Learning
2. Maddala G. S. and Miller E. Micro Economics. McGraw-Hill International Editions.
3. D. N. Dwivedi. Micro Economics Theory and Applications. Pearson Education.
15
SEMESTER- IV
MACRO ECONOMICS- II
PAPER- A.H 2.4.11
UNIT I Theories of consumption and investment
Consumption function, theories of consumption –Absolute, relative, permanent and life
cycle income hypothesis. The decisions to invest- Autonomous and Induced investment,
MEC and MEI schedule. Profit and accelerator theories of investment. The rate of interest
and the rate of investment, the role of finance beyond the interest rate.
UNIT II Neo-classical and Keynesian Synthesis
Neo-classical and Keynesian views on interest; Simple IS-LM approach to the
determination of equilibrium interest rate. Elasticity and shifts of IS and LM schedules.
Extension of IS-LM model with government sector; Relative effectiveness of monetary
and fiscal policies; Crowding out hypothesis. Extension of IS-LM models with labour
market and flexible prices.
UNIT III. Open Economy Models:
The international flows of capital and goods, saving and investment in an open economy.
Mundell-Fleming model -Asset markets, expectations and exchange rates The small open
economy under floating and fixed exchange rates. Open economy and policy measures-
fiscal, monetary and trade policies.
Basic Readings
1. N. Gregory Mankiw. Macroeconomics, Worth Publishers, 7th
edition, 2010.
2. Shapiro, E. (1996), Macroeconomic Analysis, Galgotia Publications, New Delhi.
3. Errol D’Souza, Macro Economics, Pearson Education, 2009.
Additional Reading
1. Dornbusch, Fischer and Startz, Macroeconomics, McGraw Hill, 11th edition, 2010.
2. Ackley, G. (1976), Macroeconomics: Theory and Policy, Macmillan Publishing
Company,New York
16
SEMESTER IV
DEVELOPMENT ECONOMICS-II
PAPER-A.H-2.4.12
Unit I Economic Development and Institutions
The choice of technology; Appropriate technology and employment in LDCs; Efficiency
of small-scale vs. large-scale production; Markets and market failure; State and state
failure; Issues of good governance. Need for investment criteria in LDCs-Types; Cost
Benefit Analysis, Alternative investment criteria.
Unit II International aspects of Economic Development
International trade as an engine of growth; Static and dynamic gains from trade; Prebisch,
Singer and Myrdal theses vs. free trade; Export-led growth; Tariffs and effective
protection; WTO and developing countries. External resources; FDI; Aid vs. trade; Need
for planning, Types – Democratic, Decentralized and Indicative planning. Micro-level
planning.
Unit III Development and Environment
Environment- Economy linkage; Environment as a necessity and luxury; Population-
environment linkage. Allocation problem; Market failure for environmental goods;
environment as a public good, Common Property Resources, Property right approach to
environmental problem-property rights approach, property rights and environmental
problems, Coarse theorem, Coarse theorem and transaction cost. Prevention, control and
abatement of pollution. Concept and indicators of sustainable development.
Basic Readings
1. Thirlwal, A.P. Growth and Development. Macmillan, London.
2. Tadaro M. P. and Smith. Economic Development. Pearson.
3. Meier G. M. Leading Issues in Economic Development. Oxford University Press, New
Delhi.
4. Ghatak S. An Introduction to Development Economics. Allen and Unwin, London.
Additional Readings
1. Adelman, I. Theories of Economic Growth and Development. Stanford University Press,
Stanford.
2. Behrman, S. and Srinivasan T. N. Handbook of Development Economics. Vol.I to III,
Elsevier, Amsterdam.
3. Chakravarty, S. Development Planning: The Indian Experience. Clarendon Press,Oxford.
4. Hayam, Y. Development Economics, Oxford University Press, New York.
5. Kindeberger, C. P. Economic Development. McGraw Hill, New York.
6. Kolstad, C.D. Environmental Economics, Oxford University Press, New Delhi.
17
SEMESTER-V
MICRO ECONOMICS-III
PAPER A.H-3.5.13
Unit I Game Theory
Game Theory: The pay of matrix of a game, two person zero sum and constant – sum
game, pure strategy and saddle point solutions, concept of Nash equilibrium, method of
dominance and mixed strategies, the Prisoner’s Dilemma and the Commons problem.
Unit II Oligopoly
Characteristics and sources of oligopoly, Price and Output Determination under
Oligopoly: Duopoly models of Oligopoly (Cournot, Bertrand, Chamberlin and
Stackelberg); Kinked Demand curve.
Collusive Oligopoly: Cartels-Joint profit maximization and market sharing; Price
Leadership – model of low cost firm, large dominant firm and barometric price
leadership. Concepts of single and multiple basing point price system.
Unit III General Equilibrium and Welfare Economics
Interrelations and Interdependence of Markets; General Equilibrium in Exchange and
Production; General Equilibrium in Competitive Product Market.
Pareto optimality, competitive equilibrium and pareto optimality, welfare theorems,
Social welfare functions, Concept of fairness, Arrow’s impossibility theorem
Basic Readings
1. Varian H. R. Intermediate Micro Economics: A Modern Approach. Affiliated East -West
Press
2. Pindyck R S. and Rubinfeld D. L. Micro Economics. Prentice Hall, India
Additional Readings 1. Jehle and Reny, Advanced Microeconomic Theory, Pearson India
2. Nicholson Walter and Snyder Christopher, Microeconomic Theory-Basic Principles and
Extensions. Cengage Learning
3. D. N. Dwivedi. Micro Economics Theory and Applications. Pearson Education.
18
SEMESTER V
INDIAN ECONOMY-I
PAPER-A.H.3.5.14
Unit I Structural change of post independent Indian economy
Indian Economy at the time of Independence- Features of Indian Economy around 1947-
1950 and characteristics of economic underdevelopment of India (with reference to
colonial rule of India)- Trend in National Income and Percapita income; Sectoral
composition (output and employment) - Primary, Secondary and Tertiary Sectors; Broad
demographic features — Population size and growth rates, sex composition, occupational
distribution;
Unit 2 Indian Agriculture and Industry in pre reform period
Changing contour of agriculture- performances,growth rates,composition and cropping
pattern;Institutional set-up of land system and land reform, Green Revolution and
technological changes; Structure and composition of Industry – issues of concentration,
large vs small industry – industrial location. Small scale reservation policy. Trends and
patterns of industrial growth; industrial policies prior to 1991; development in service
sector.
Unit 3 Resource mobilization and Planning in India
Evolution of economic planning in India; Economic Planning - Rationale, Features and
Objectives; Strategy of Planning; types of plans and planning; a dynamic analysis of 5
year plans in India; Broad achievements and failures; Current Five Year Plan —
Objectives, allocation, strategy and targets.
Indian tax system; Public expenditure in India- pattern and growth; Public debt, Deficit
and subsidies in the Indian economy; Centre-state financial relation.
Basic readings
1. Kapila U. Indian economy since Independence. Academic Foundation, New Delhi
2. Misra, S. K. and Puri V. K. Indian Economy — Its Development Experience.
Himalaya Publishing House, Mumbai
3. Dutt R. and Sundharam K. P. M. Indian Economy. S. Chand & Company Ltd., New
Delhi.
Additional Readings
1. Mathur R. Indian Economic Policy and Reform. RBSA Publisher, Jaipur
2. Jalan B. Indian Economic Policy. Penguin Books Ltd
3. Government of India, Economic Survey (Annual), Economic Division, Ministry of
Finance, New Delhi.
19
SEMESTER V
PUBLIC FINANCE – I
PAPER-3.5.15
UNIT I Public Goods
Meaning and scope of public finance, public finance vs. private finance, fiscal functions-
allocation, distribution and stabilisation role of government, public goods - pure and
partial public goods, private goods and merit goods, characteristics of public goods,
rationale of public provision of public goods, free rider problem and externality, the role
of government – taxes vs. regulation, fundamental principle of public finance – Maximum
Social Advantage.
UNIT II Public Expenditure
Classification and growth of public expenditure, Wagner’s law of increasing state activity,
Peacock- Wiseman Hypotheses, cannons of public expenditure, effects of public
expenditure on production, distribution and economic activities, public sector pricing
policy-average cost and marginal cost pricing, Criteria for public investment- Social cost-
benefit analysis, Evaluation under risk and uncertainty.
UNIT - III Public Revenue
Sources and classification of public revenue- tax and non tax revenue, direct and indirect
taxes, effects of tax on production, distribution and economic activities. Principles of
taxation – Benefit theory, Ability to pay theory, Burden of taxation: Neutrality in taxation,
shifting and incidence of taxation, taxable capacity, allocative and equity aspect of
taxation
Basic Readings
1. Musgrave, R.A, The Theory of Public Finance,
2. Atkinson and Stiglitz. Lectures on Public Economics,
3. Ghosh Ambar and Ghosh Chandana Economics of the Public Sector, PHI
4. Musgrave, R.A . Public Finance in Theory and Practices. McGraw Hill
5. Rosen Harvey, Public Finance. McGraw Hill
Additional Readings
1. Due, John F and Friedlander, Government Finance.
2. Goode R. Government Finance in Developing Countries. Tata McGraw Hill.
3. Herber B. P. Modern Public Finance.
4. Houghton J. M. The Public Finance: Selected Reading, Penguin
5. Mathew T. Economics of Public Expenditure, Vora
20
SEMESTER- V
ELEMENTARY ECONOMETRICS
PAPER-A.H 3.5.16
Unit I Elements of Statistical Inference
Theory of Estimation-parameter and statistic, estimates and estimators, point estimators
and their properties (small sample and asymptotic properties), Central Limit Theorem,
Methods of estimation: Least squares and Maximum Likelihood method, Interval
Estimation: confidence interval
Testing of Hypothesis: Null vs Alternative hypotheses, Simple and Composite
Hypothesis, Procedure for testing of hypothesis, Type I and Type II errors; level of
significance, power of a test; degrees of freedom; Likelihood ratio test, Newmann-pearson
Lemma.
Unit II Regression Models
Two-variable linear regression model, Assumptions, OLS method of estimation,
Importance of stochastic error term, Gauss-Markov theorem, Standard Errors of
regression coefficients, Concepts and derivation of R2 and adjusted R
2, ANOVA,
Normality assumptions, Maximum likelihood estimation; K-variable linear regression
model: estimation of the model.
Unit III Problems in Regression Analysis
Multicollinearity- sources, effects, detection and solution; Heteroscedasticity- tests,
consequences, solution; Autocorrelation- sources, consequences, detection, remedies.
Basic Reading
1. Gujarati D. N., Basic Econometrics, Mc Graw Hill, New Delhi.
2. Gupta S.C., Fundamentals of Statistics, Himalaya Publishing House Pvt. Ltd,
Mumbai.
3. Gupta S.C and Kapoor V.K., Fundamentals of Mathematical Statistics, Sultan Chand
& Sons, New Delhi
4. Johnston J., Econometric Methods (2nd
edition), Mc Graw Hill, New Delhi
Additional Readings
1. Kmenta J., Elements of Econometrics, University of Michigan Press
2. Wooldridge, Introduction to Econometrics
21
SEMESTER V
INTERNATIONAL ECONOMICS-I
PAPER- AH 3.5.17
Unit I Importance of Trade and Trade Theories
Importance of the study of International Economics; Inter-regional and international
trade; Theories of absolute advantage, comparative advantage and opportunity cost;
Factor Endowments and Heckscher-Ohlin theory of trade — its main features,
assumptions and limitations, Empirical studies - Leontief Paradox, Rybzynski effect,
Factor price equalization and Stolper-Samuelson Theorem.
Unit II Trade and Economic Growth
Gains from trade— their measurement and distribution; Technical Progress and
International Trade, Growth and Trade: Small and Open country cases, Concepts of terms
of trade and their importance in the theory of trade; Doctrine of reciprocal demand — its
importance and limitations in the theory of trade.
Unit III International Trade Policy
Trade restrictions: Tariff. Partial Equilibrium analysis of Tariff, Theories of Tariff
structure, Import Quotas and other Non-tariff barriers, Economic Integration: Customs
Union and Free Trade Areas, WTO and India.
Basic Readings
1. Krugman Paul R. and Obstfeld Maurice. International Economics, Pearson Education
2. Salvatore Dominick. International Economics, Wiley India.
3. Sodersten Bo and Reed J. International Economics, McMillan Publisher
Additional Readings
1. Carbaugh Robert. International Economics, South-Western College Publication.
2. Gandolfo Giancarlo. International Trade Theory and Policy, Springer Publication
22
SEMESTER- V
MONETARY ECONOMICS-I
PAPER- AH 3.5.18
UNIT I: Demand for Money:
Classical and Keynesian approaches to demand for money. Post-Keynesian approaches to
demand for money — Patinkin and the Real Balance Effect; Approaches of Baumol and
Tobin; Friedman and the modern quantity theory.
UNIT II: Supply of Money:
RBI approach to money supply; High powered money and money multiplier. Money
supply and open economy; Mechanistic and behavior model of money supply; control of
money supply.
UNIT III: Commercial Banking
Meaning ; Functions of commercial banks; the process of credit creation and its
limitations; Balance sheet of Commercial banks; investment policy, Recent reforms in
banking sector in India.
Basic Readings
1. Gupta, S.B. , Monetary Economics, S. Chand and Co., Delhi.
2. N. Gregory Mankiw. Macroeconomics, Worth Publishers, 7th
edition, 2010.
3. Bhole,L. M. Financial Institutions and Markets, Tata Mc Graw Hill Company Ltd. Delhi.
4. Khan M. Y. Indian Financial System Tata McGraw Hill, New Delhi.
Additional Readings
1. Smith, P.F. Money and Financial Intermediation: The Theory and Structure of Financial
System, Prentice Hill, Englewood Cliffs, New Jersey
2. Dornbusch, Fischer and Startz, Macroeconomics, McGraw Hill, 11th edition, 2010.
23
SEMESTER- VI
MACRO ECONOMICS
PAPER- AH 3.6.19
UNIT I New Classical Macroeconomics
The new classical critique of micro foundations, the new classical approaches- the Phillips
curve, natural rate of unemployment, rational expectations, Lucas on micro foundation of
macroeconomics; Policy implications of new classical approach — empirical evidence.
UNIT II Theories of Growth
Harrod-Domar model- instability of equilibrium; Solow and Kaldor growth models.
Technological progress - embodied and disembodied technical progress, Hicks and
Harrod.
UNIT III Business Cycle
Nature and characteristics of business cycle. Schumpeterian theory of business cycle. The
concept of accelerator; Samuelson and Hicks multiplier-accelerator interaction model;
Monetary and Overinvestment theories. Control of trade cycles.
Basic Readings
1. Rosalind Levacic and Alexander Rebman “Macroeconomics”, 1982, McMillan
2. Robert Barro and Xavier Sala-i-Matin, Economic Growth, PHI
3. N. Gregory Mankiw. Macroeconomics, Worth Publishers, 7th
edition, 2010.
Additional Readings
1. Ackley, G. (1976), Macroeconomics: Theory and Policy, Macmillan Publishing Company
2. D. Dasgupta. The macroeconomy, oxford university press, 1997
24
SEMESTER VI
INDIAN ECONOMY-II
PAPER-A.H.3.6.20
Unit I Indian economy in post reform period
Background of Indian Economic Reforms – New Economic Policy; Redefining India’s
development strategy; Changing Role of State and Market Industrial Policy,
Disinvestment policy and Privatization; Financial sector reforms including banking
reform; External sector reforms: Foreign Exchange market, balance of payments, reform,
convertibility, export-import policy, foreign direct investment; Post-reform Agricultural
Performance and its Crisis; Appraisal of Indian Economic Reform.; India’s Growth
Experience
Unit II Issues in Indian economic policy
Population and human resource development; growth unemployment and poverty;
Migration and Urbanization; macroeconomic stabilization: trade, fiscal and monetary
policy issues;
Agriculture: Sustainable agricultural growth-concepts and constraints, prospects for dry
land, Food security, Food Procurement and Public Distribution System.
Industry: performance of public sector, privatization, industrial sickness, Land
acquisition, SEZ and industrialization
Unit III Odisha economy-An overview
A macro glance of Odisha’s economy; social sector in Odisha. Odisha Economy in
relation to India and major states in recent decades, Issues in Agriculture and forest, water
resource, mining, industry and service Sector.
Basic Readings
1. Kapila U ,“Indian economy since independence”, academic foundation, New Delhi(latest
edition)
2. Misra, S.K. and V.K. Puri , “Indian Economy — Its Development Experience”, Himalaya
Publishing House, Mumbai
3. Datt, R. and K.P.M. Sundharam , “Indian Economy”, S. Chand & Company Ltd., NewDelhi
Additional Readings
1. Mathur R, “Indian Economic Policy and Reform”,RBSA publisher,Jaipur
2. Jalan B “Indian Economic Policy”, Penguin Books Ltd
3. Government of India, Economic Survey (Annual), Economic Division, Ministry of
Finance,New Delhi.
4. Economic Survey (Annual), Planning and Coordination Department, Directorate Of
Economics and Statistics, Government Of Odisha.
5. Orissa Development Report, Planning Commission
6. Orissa Human Development Report, UNDP
25
SEMESTER VI
PUBLIC FINANCE - II
PAPER-A.H. 3.6.21
UNIT I Public Debt
Sources of public borrowing, importance of public borrowing, effects of public debt, tax
vs. debt, burden of public debt- classical, Ricardian and others, shifting of debt burden,
intergenerational shifting, methods of debt redemption, debt management
UNIT II Budget
Basic concepts, balanced vs. unbalanced budget, balanced budget theorem and its
criticism, budgetary deficits and their limitations, budget as an instrument of Economic
policy, Zero based budgeting, the salient features of the most recent union budget of
India.
UNIT III Issues in Indian public finance
Black money, taxation of agriculture, subsidies, tax reforms in India: DTC and GST, tax
evasion, trends in deficit spending, expenditure reform, shrinking size of development
finance through budgets, financial autonomy: centre state financial relation.
Basic Readings
1. Ghosh, Ambar and Chandana Ghosh(2008): Economics of the Public Sector, PHI.
2. Musgrave R.A. and P. Musgrave, Public Finance in Theory and Practice, McGraw
Hill International
Additional Readings
1. Buchanan, J., M. (1970): The Public Finances, Richard D.Train Home-wood.Due,
John F and Friedlander, Government Finance
2. Goode R. (1986): Government Finance in Developing Countries Tata McGraw Hill.
3. Houghton, J.M. (1970): The Public Finance: Selected Reading, Penguin,
Harmondsworth.
26
SEMESTER- VI
HISTORY OF ECONOMIC THOUGHT
PAPER-A.H 3.6.22
Unit I Introduction and Early Economic Thought
Rationale of studying Economic Thought; Physiocracy and Mercantilism; Adam Smith
and his Economic theory, Ricardo’s contribution to classical Economic thought, Ricardo-
Malthus glut controversy, S Mill’ ideas, A general Overview of Classical Economic
Thought,
Unit III Radical Dissent: Marxism and Structuralism
Marxian Economic Thought: Historical Materialism, The Labour Theory of Value,
Theory of Money, Theory of Capital Accumulation, Distribution, Capitalist
Reproduction, Disproportionality and Theories of Crisis, Marx vs Classicists
Unit III Indian Economic Thought
Main themes of Kautilya’s Arthasashtra; Modern Economic Ideas: Dada Bhai Naoroji,
M.K. Gandhi, village swaraj, machines and labour, cottage industries, Comparison of
Indian Economic thought with western Economic thought.
Basic Readings
1. Gide, Charles and Rist, Charles (1973): A History of Economic Doctrines, Oxford
University Press.
2. Roll, Eric, History of Economic Thought, Faber and Faber Ltd.
Additional Readings
1. O’Brien, D P (1975): Classical Economists, Oxford, Clarendon Press.
2. Ekelund, Robert B. and Robert F. Hebert, A History of Economic Theory and Method,
third edition, New York: McGraw Hill, 1990
3. Henry W. Spiegel, The Growth of Economic Thought, 3rd
ed. Durham: Duke
University Press, 1991
4. Tom Bottomore (1980): Dictionary of Marxist Thought, Basic Blackwell Publishers.
5. Dasgupta, A K (1986): Epochs of Economic Theory, Oxford University Press, New
Delhi
6. Schumpter, J A (1954): History of Economic Thought, Oxford University Press
27
SEMESTER VI
INTERNATIONAL ECONOMICS-II
PAPER- AH 3.6.23
Unit I Exchange Rate
Concept and Types of Exchange Rate (bilateral vs trade-weighted exchange rate, cross
exchange rate, spot, forward, futures), Demand for and Supply of foreign exchange,
Exchange Rate Determination: Trade or Elasticity Approach, Purchasing-Power Parity
Theory, The Monetary Model to Exchange Rates, Asset or Portfolio Model of Exchange
Rates. Fixed versus Flexible exchange rate.
Unit II Balance of Trade and Payments
Concepts and components of balance of trade and balance of payments; Equilibrium and
disequilibrium in balance of payments; Consequences of disequilibrium in balance of
payments; Various measures to correct deficit in the balance of payments; Monetary
approach to Balance of Payments, Concept and implications of foreign trade multiplier.
Unit III International Economic Institution
Functions of GATT/WTO (TRIPS, TRIMS), UNCTAD, IMF, World Bank and Asian
Development Bank — Their achievements and failures; WTO and World Bank from the
point of view of India. Forms of economic cooperation; Reforms for the emergence of
international monetary system and trading blocks at the global level. Basic Readings
1. Krugman Paul R. and Obstfeld Maurice. International Economics, Pearson Education
2. Salvatore Dominick. International Economics, Wiley India.
3. Sodersten Bo and Reed J. International Economics, McMillan Publisher
Additional Readings
1. Carbaugh Robert. International Economics, South-Western College Publication.
2. Gandolfo Giancarlo. International Trade Theory and Policy, Springer Publication
3. Gandolfo Giancarlo. International Finance and Open-Economy Macro Economics,
Springer Publication
4. Copeland Laurence. Exchange Rates and International Finance, Addison Wesley
Publication.
28
SEMESTER VI
MONETARY ECONOMICS-II
PAPER- AH 3.6.24
UNIT 1 Central Banking
Functions of a central bank; Quantitative and qualitative methods of credit control — The
Reserve Bank of India: Roles and Functions, Monetary Policy of the RBI, , Liquidity
Adjustment Facility (LAF). Limitations of monetary policy of RBI.
UNIT 2 Financial Markets:
structure of money market and capital market — Call money market. Treasury bill
market, Commercial bill market including commercial paper and certificate of deposits,
Government securities market, Primary and secondary market for securities.
UNIT 3 NBFIs
Definition and Types of NBFIs: UTI, Mutual Funds, Insurance Companies, Provident
Funds and Pension Funds, Growth and impact of NBFIs, Control of NBFIs. The
Securities and Exchange Board of India: Genesis, Organizations, Objectives and
Functions, Performance of SEBI, IRDA and its role in financial markets, Financial Sector
reforms in India.
Basic Readings
1. Gupta, S.B. , Monetary Economics, S. Chand and Co., Delhi.
2. Bhole,L. M. Financial Institutions and Markets, Tata Mc Graw Hill Company Ltd.
Delhi.
3. Khan M. Y. Indian Financial System Tata McGraw Hill, New Delhi.
30
FIRST SEMESTER Total Hours (Weekly) 20 Total credit 20
SL. Course
Code
Course Name Marks L T P/S C
1 AE-1.1.1 Principles of Economics-I 50 3 1 0 4
2 AE-1.1.2 Monetary Economics-I 50 3 1 0 4
SECOND SEMESTER
SL. Course
Code
Course Name Marks L T P/S C
1 AE-1.2.3 Principles of Economics-II 50 3 1 0 4
2 AE-1.2.4 Monetary Economics-II 50 3 1 0 4
THIRD SEMESTER
SL. Course
Code
Course Name Marks L T P/S C
1 AE-2.3.5 Indian Economy-I 50 3 1 0 4
2 AE-2.3.6 Public Finance-I 50 3 1 0 4
FOURTH SEMESTER
SL. Course
Code
Course Name Marks L T P/S C
1 AE-2.4.7 Indian Economy-I 50 3 1 0 4
2 AE-2.4.8 Public Finance-I 50 3 1 0 4
31
SEMESTER- I
PRINCIPLES OF ECONOMICS- I
PAPER-AE-1.1.1
Unit I Subject matter of Economics: Definition and Scope; The Economic Problem:
Scarcity and Choice. Supply and Demand: Determinants of individual and market
demand/supply, Elasticity of demand- price, Income and cross elasticities.
Meaning and Properties of Indifference curves, Consumers’ equilibrium, Price
effect, income and substitution effects.
Unit II Production and Cost
Meaning of production; Production function: Short run and long run production
function; Producer’s equilibrium;
Cost: Concepts, Cost output relationship; Short run and long run cost functions;
Economies and diseconomies of scale
Unit III Structure of Market and Price Determination
Behaviour of profit maximizing firms and the production process under Perfect
Competition, costs and output decisions in the short run long run. Imperfect
Market Structure: Monopoly
Basic Readings
1. Case Karl E. and Fair Ray C. Principles of Economics, 6th Edition, Pearson Education
Asia Low Price Edition.
2. Mankiw N. Gregory. Principles of Economics, Thomson.
Additional Readings
1. Stiglitz J.E. and Walsh C.E. Principles of Economics, 3rd Edition, W.W. Norton &
Company, New York.
2. Stone R. and Stone G. National Income and Expenditure, Bowes and Bowes London.
32
SEMESTER- I
MONETARY ECONOMICS-I
PAPER-A.E-1.1.2
UNIT I: Money
Definition of Money: Value of money, Index Number, Monetary Standards; Quantity
Theories of Money- Fisher and Cambridge Approaches.
UNIT II: Commercial Banking Meaning and Functions of commercial banks, Credit Creation, Balance sheet of
commercial bank, Investment Policy.
UNIT III: Central Banking
Functions of a central bank; Quantitative and qualitative methods of credit control- Bank
rate, open market operations, variable reserve ratio and selective methods; The Reserve
Bank of India: Roles and Functions, Limitations of monetary policy of RBI.
Basic Reading
1. Bhole,L. M. Financial Institutions and Markets, Tata Mc Graw Hill Company Ltd. Delhi.
2. Khan M. Y. Indian Financial System Tata McGraw Hill, New Delhi.
3. S B Gupta, Monetary Economics-Institutions, Theory & Policy Authors Edition, S. Chand
& Company Limited, 1988
Additional Readings
1. Smith, P.F. Money and Financial Intermediation: The Theory and Structure of Financial
System, Prentice Hill, Englewood Cliffs, New Jersey
2. Dornbusch, Fischer and Startz, Macroeconomics, McGraw Hill, 11th edition, 2010.
33
SEMESTER II
PRINCIPLES OF ECONOMICS- II
PAPER-A.E-1.2.3
Unit I Introduction to Macroeconomics: Difference between micro and macro
economics, macroeconomic concerns, the role of government in the macro
economy, the components of the macro economy. Introduction to National Income
Accounting: Concepts of GDP, GNP and national income, approaches to
calculating GDP, personal income, Nominal and real GDP, Limitations of the
GDP concept
Unit II The Simple macroeconomic models: Classical and Keynesian Model: Aggregate
expenditure and equilibrium output--aggregate output and aggregate income,
equilibrium aggregate output;
Unit III Inflation and Deflation: Inflation and Deflation: Nature, Causes and Effects,
Demand-pull and Cost-push inflation, Measures to correct inflation and deflation.
Basic Readings
1. Case Karl E. and Fair Ray C. Principles of Economics, 6th Edition, Pearson
Education, India.
2. Mankiw N. Gregory. Principles of Economics, Cengage Learning.
Additional Readings
1. Stiglitz J.E. and Walsh C.E. Principles of Economics, 3rd Edition, W.W. Norton &
VIVA Company, India
2. Stone R. and Stone G. National Income and Expenditure, Bowes and Bowes London.
34
SEMESTER- II
MONETARY ECONOMICS-I
PAPER-A.E-1.1.4
UNIT I: Financial Markets:
Role and structure of money market and capital market — Call money market. Treasury
bill market, Commercial bill market including commercial paper and certificate of
deposits, Discount market, Government securities market, Primary and secondary market
for securities.
UNIT II: NBFIs
Definition and Types of NBFIs: UTI, Mutual Funds, Insurance Companies, Provident
Funds and Pension Funds, Control of NBFIs.
UNIT II: Capital market
The Securities and Exchange Board of India: Genesis, Organizations, Objectives and
Functions, Performance of SEBI, IRDA and its role in financial markets, Financial Sector
reforms in India.
Basic Readings
1. Bhole,L. M. Financial Institutions and Markets, Tata Mc Graw Hill Company Ltd.
Delhi.
2. Khan M. Y. Indian Financial System Tata McGraw Hill, New Delhi.
Additional Readings
1. Frederic S. Mishkin, The Economics of Money, Banking, and Financial Markets, Academic
Internet Publishers
2. S B Gupta, Monetary Economics-Institutions, Theory & Policy Authors Edition, S.
Chand & Company Limited, 1988
35
SEMESTER-III
INDIAN ECONOMY-I
PAPER-A.E-2.3.5
UNIT I: Factors of Development
Capital formation; Levels of technology; institutional factors; Demographic features,
Theory of demographic transition, Occupational composition, Population policy
UNIT II: Poverty and Employment Scenario in India
Poverty: measurement, causes and measures, Unemployment: Types, Causes and
Problems of Unemployment, Disguised unemployment and employment policy
UNIT III: National Income and Planning
National Income estimation in India: inequalities of income and wealth causes, effect and
remedies; Planning: Objectives and strategy and achievement of planning in India.
Basic Readings
1. Kapila U. Indian economy since Independence. Academic Foundation, New Delhi
2. Dutt R. and Sundharam K. P. M. Indian Economy. S. Chand & Company Ltd., New Delhi
3. Dhar PK , Indian economy, Kalyani Publisher
4. Mishra and Puri, Indian Economy, HPH
Additional Reading
1. Government of India, Economic Survey (Annual), Economic Division, Ministry of
Finance, New Delhi.
36
SEMESTER-III
PUBLIC FINANCE-I
PAPER-A.E-2.3.6
Unit I Introduction:
Definition and scope of public finance, Difference between public finance and
private finance, Merit goods, public goods, private goods and their characteristics,
Principle of maximum social advantage.
Unit II Public expenditure:
Meaning, classification and canons of public expenditure, Causes of growth of
public expenditure, Effects of public expenditure on production, distribution and
economic stability.
Unit III Public Revenue :
Sources of Public revenue, Direct and indirect taxes-Relative merits and demerits.
Proportional and regressive taxes. Theories of taxation- Benefit theory and Ability
to pay theory.
Basic readings
1. Modern Public Finances: B.P.Herber
2. Musgrave, R.A and Musgave, P.B. Public Finance in Theory and Practices. McGraw Hill
3. Public Finance: Theory and Practice, D M Mithani, HPH
Additional Reading
1. Ghosh Ambar and Ghosh Chandana Economics of the Public Sector, PHI
37
SEMESTER-IV
INDIAN ECONOMY-II
PAPER-A.E.-2.4.7
UNIT I: Resource Mobilization:
Saving and Investment in India: Mobilization of financial resources for plans: Role of
deficit financial and foreign aid
UNIT II: Industrial policies of the Government of India:
Relative role of public and private sectors; choice of appropriate technology. Ownership
pattern of industries; Growth of monopoly and concentration of monopoly power
Government policies.
UNIT III: Foreign Trade:
Changing structure of India’s foreign trade independence, Composition and direction of
India’s foreign trade, Trends in Balance of payments: Export promotion and import
substitution
Reading List
1. Kapila U. Indian economy since Independence. Academic Foundation, New Delhi
2. Dutt R. and Sundharam K. P. M. Indian Economy. S. Chand & Company Ltd., New
Indian Economy: Mishra and Puri
3. Dhar PK , Indian economy, Kalyani Publisher
4. Mishra and Puri, Indian Economy, HPH
Additional Readings
1. Government of India, Economic Survey (Annual), Economic Division, Ministry of
Finance, New Delhi.
38
SEMESTER-IV
PUBLIC FINANCE-II
PAPER-A.E.-2.4.8
Unit I Shifting and Incidence of Tax:
Effects of taxation on production, Distribution and economic stability. Dalton’s
principle of incidence; Incidence of Commodity taxes, forward and backward
shifting.
Unit II Public Debt:
Private and public debt, Sources of public borrowing limitations of public debt,
Economic effects of public debt on production distribution and other economic
activities; Methods of debt redemption.
Unit III Budget:
Balanced and unbalanced Budget, Relative merits and demerits, Budget as an
instrument of growth, Equity and stability, Deficit financing for economic
development and its limitations.
Basic Readings
1. Herber, B.P.Modern Public Finances, AITBS, New Delhi
2. Musgrave, R.A and Musgave, P.B. Public Finance in Theory and Practices. McGraw
Hill
3. Mithani, D M. Public Finance: Theory and Practice, HPH
Additional Reading
1. Ghosh Ambar and Ghosh Chandana Economics of the Public Sector, PHI