GOKHALE INSTITUTE OF POLITICS AND

ECONOMICS
(Deemed to be University u/s 3 of the UGC Act, 1956)
PUNE 411004
M.A. (ECONOMICS)
COURSE STRUCTURE & SYLLABUS
(Effective from academic year 2024-25)
(Approved by Board of Studies 26/02/2024 & 28/05/2024; Approved by Academic Council 5-6-2024)
INDEX

Sr. Course Name of the Course

No. Code No.
CORE/COMPULSORY COURSES
1 C-01 Microeconomics
2 C-02 Macroeconomics
3 C-03 Statistics
4 C-04 Basic Econometrics
5 MA-A-05 Mathematics For Economics
6 MA-A-08 Economic Growth and Development
7 MA-A-09 Public Economics
8 MA-A-10 International Economics
9 MA-A-11 Financial Institutions and Markets
10 MA-A-12 Indian Economy
11 MA-A-13 Environmental Economics
12 MA-A-14 Quantitative Aptitude
13 MA-A-17 Research Methodology
14 MA-A-18 Money Banking And Financial Markets
15 MA-A-19 Public Policy and Administration
16 MA-A-20 Political Economy of India’s Development
OPTIONAL COURSES (Any four to be opted)
1 MA-B-01 Indian Agricultural Economics
2 MA- B-02 Economics of Labour
3 MA- B-03 International Relations
4 MA-B-04 International Economic Institutions
5 MA-B-07 Population Studies
6 MA-B-08 Indian Political System
7 MA-B-09 Linear Economics I
8 MA-B-10 Linear Economics II
9 MA-B-11 Study of social exclusion and inclusive policy
10 MA-B-12 Business Analytics
11 MA-B-13 Insurance Economics
13 MA-B-14 Insurance Economics (Advanced Practices)
14 MA-B-15 Urban Economics
15 MA-B-16 Advanced Microeconomics
Course Code - C-01
Course Name - MICROECONOMICS

Learning Outcome:

(i) To acquaint the students with introductory consumer theory and the limitations with
an orientation towards behavioural approach (Module I)
(ii) To understand how the choice will be made under uncertainty and how the attitude
towards risk will be determined. (Module II)
(iii) To introduce to the students, the concepts associated with the functioning of a firm.
(Module III)
(iv) To study the various types of markets prevelant in an economy and the nature of
their decision making (Module IV)
(v) To study the information economics i.e. role of asymmetric information and its way
out, designing of optimum incentive scheme under information asymmetry
(Module V)
(vi) To acquaint the students with the basics of game theory (Module VI)
Module I: Consumer Theory (8 hrs)
 Preference Relation and Its Properties.
 Consumer Preferences and Representation of Preferences by Utility Functions.
 Budget Constraint, Utility Maximization and Derivation of the Demand Function,
The Indirect Utility Function and Its Properties, Roy’s Identity
 Revealed Preferences. Endowments in the Budget Constraint, Difference between
revealed and normative preference
 Limitations of the Consumer Theory
 Behavioral Approach
Module II: Choice Under Uncertainty (12 hrs)
 The Expected Utility Model, Utility on Lotteries, Axioms and Preferences under
Uncertainty
 Critiques of the Expected Utility Model, Prospect Theory
 Measures of Risk--Domar-Musgrave Index, Roy’s Safety Index, Mean-Variance,
Semi Variance Mini-max Regret
 Lotteries, Preference Relation over Lotteries, N-M Expected Utility Theory
 Basic Axiom and Representation Theorem Violations of EU theory.
 Subjective Probabilities
 Risk Aversion – Jensen’s Inequality, Acceptance Set and Risk Aversion
 Various Measures of Risk Aversion like Arrow-Pratt Measure of Absolute Risk
Aversion, Relative Risk Aversion
 Certainty Equivalent and Risk Premium
 Arrow-Pratt Approximation of Risk Premium
 Pratt’s Theorem
 Classes of Utility Functions: Decreasing Absolute Risk Aversion (DARA), Constant
Absolute Risk Aversion (CARA), Increasing Absolute Risk Aversion (IARA),
Decreasing Relative Risk Aversion (DRRA), Increasing Relative Risk Aversion
(IRRA), Constant Relative Risk Aversion (CRRA) etc. and their comparative statics
 Applications to Various Settings and Comparative Static Results.

Module III: Theory of Firm (6 hrs)

 Theory of Organization. Measurements of Inputs and Outputs
 Profit Maximization, Comparative Statics, Profit Function. Hoteling’s Lemma,
Factor Demand Functions, Supply Function.
 Cost Minimization, Cost Functions, Average and Marginal Cost Functions, Short-
Run and Long-Run Costs, Marginal Cost Pricing, Aggregation – Industry Supply
Function, Shephard’s Lemma, Conditional Factor Demand Functions.
 The Duality Between Production and Cost Functions.

Module IV: Theory of Market (8 hrs)

 Perfect Competition: Short-Run and Long-Run Market Equilibrium.
 Monopoly: Monopoly Power, Equilibrium Output and Prices, Effect on Welfare,
Price Discrimination – First, Second, And Third-Degree, Quality Choice Under
Monopoly. Market Power, Sources of Market Power, Monopoly & Regulation of
Monopoly. HHI or Any Other Index Used to Measure the Concentration of Firms.
 Monopolistic Competition.
 Oligopoly: Cournot Equilibrium, Stability, Comparative Statics, Bertrand
Equilibrium. Quantity Leadership, Price Leadership. Conjectural Variations.
 Spatial Competition: Linear City Model, Circular City Model.
 Market failure, public goods and introduction to welfare economics,
Module V: Information Economics (10 hrs)
 Introduction: The Elements of the Problem
 Types of Asymmetric Information Problems– Moral Hazard, Adverse Selection,
Signalling
 Static Full Information Benchmark
 Hidden Action in a Two Action-Two outcome model as well as in a Simple
Continuous Action and Continuous Outcome Case
 Solution through First Order Approach and its Validity
 Value of Information and Characteristics of the Optimal contract
 Adverse Selection and Signalling: Akerlof's Model of Lemons,
 Signalling in the Spence's Model of Education
 The Notions of Pooling and Separating Equilibria.
Module VI: Game theory (introduction) (6 hrs)
 Description of a Game, Normal Form Representation of the Game, Extensive Form
Representation of The Game
 Solution Concepts—Nash Equilibrium, Mixed Strategies, Repeated Games,
Sequential Games
.

Suggested Readings:
Books:
1. Serrano.R and Feldman. M.A. (2018). A Short Course in Intermediate
Microeconomics with Calculus. Cambridge University Press
2. Gravelle, H. and Rees R, 2003, Microeconomics, 3rd Edition, Prentice Hall
3. Kreps, David. (1992). A Course in Microeconomic Theory, Eastern Economy
Edition, Prentice Hall of India
4. Mas-Colell.A, Whinston &Green, Microeconomic Theory. (1995). Oxford
University Press
5. Perloff.J. (2019). Microeconomics, 7th Edition, Pearsom Education.
6. Pindyck, Robert S. and Rubinfield, Daniel L. (2017), 9 th Edition Microeconomics,
Pearson College
7. Varian, Hal R. (1992). Microeconomic Analysis, 3rd Edition, International Student
Edition, W.W. Norton and Company
8. Dixit. A and Nalebuff. B (2010) The Art of Strategy: A Game Theorist’s Guide to
Success in Business and Life, W.W.Norton &Company
9. Gibbons, Robert (1992), Game Theory for applied economists, Princeton University
Press.
10. Eric Rasmussen. Games and Information: An Introduction to Game Theory (2006),
Wiley
Articles:

1. Arrow, K.J. (1965) Aspects of the Theory of Risk Bearing. Yrjo Jahnssonin Saatio,
Helsinki.
2. Hadar, J. and Russell, W. (1969). Rules for ordering uncertain Prospects. AER.
3. Yan Sun & Shu Li, 2010. The effect of risk on intertemporal choice, Journal of
Risk Research, Taylor & Francis Journals, vol. 13(6), pages 805-820, September.
4. Kahneman, D.and Tversky, A. (1979). Prospect Theory: An Analysis of Decision
under Risk.Econometrica. 47(2),pp263-291

*********

Course Code- C-02

Course Name- MACROECONOMICS

PREAMBLE

This course aims at reinforcing the fundamental concepts in macroeconomics and to help the students to
understand the market dynamics of macroeconomics and develop ability to relate concepts with research
and Policy. It will introduce students to macroeconomic developments (different schools of thought),
macroeconomic concepts (business cycle, economic growth, unemployment and inflation),
macroeconomic management using two basic macroeconomic tools (aggregate demand and aggregate
supply), and macroeconomic policy interventions (fiscal - and monetary policy). The course briefly
covers open economy concepts, namely; Trade, capital flows and exchange rates. The specific teaching
outcomes are set out below.
1. Understanding the application of macro-economic theory and concepts for analyzing and
assessing current and emerging issues having a bearing on the economic environment.
2. Understanding the macroeconomic tools to manage business fluctuations.
3. Understanding macro-economic policy initiatives both in global and domestic context.
4. Understanding the contemporary economic issues in various fora including print and
electronic media
Course Structure,
The Course has been designed for 25 sessions of 2 hours for each session. There will be eight
modules. The content and session details of each module is set out in the following paragraphs.
Module1: Introduction and background (2 sessions) Introduction to Macro Economics Objectives and
instruments/policies Evolution of Macroeconomic Thought Introduction to Macro Economics
Objectives and instruments/policies.
Evolution of macroeconomic thought classical and Keynes and Keynesian Cross.

Module 2: Key Concepts and macroeconomic indicators (4 sessions)

Circular flow of Economic activity in a five-sector model Sources and Impact of Leakages and

Injections in an economy Introduction to Key concepts i.e. Growth, Inflation and Unemployment
through upswings and downswings of economic activity in a business cycle model. Cyclical
expansion and contraction of economic activity, Economic Growth: Meaning and Measurement
Demand Side; measurement of economic growth through Purchasing Managers Index(PMI)
Real and Nominal Growth Saving-Investment approach to growth (ICOR and investment rate),
Macroeconomic Identity Inflation: Meaning, Types and Measurement (Core and Headline inflation) and
Inflation Targeting Unemployment: Meaning, Types and
measurement Inflation and unemployment trade off: Phillips Curve and Okun’s law.
Discussions of these concepts in advance economies and emerging market economies based
on the recent and contemporary developments.

Module 3: IS-LM & AD-AS Model (2 sessions)

Introduction to IS-LM Model and derivation AD-AS model. Aggregate Demand and Aggregate
Supply. Components of aggregate demand and factors determining aggregate demand
Shifts in aggregate demand causing business fluctuations. The foundations of Aggregate Supply
Determinants of aggregate supply Potential output, output gap Shifts in aggregate supply

Module 4: Open Economy (3 sessions)

Concept of Open Macro Economy in a Balance of Payments (BoP) framework Management of trade
and current account and capital flows, External debt, Investment position External sector
vulnerability: Indicator Analysis. Macroeconomic Identity in an Open Economy and the Twin
Deficit Problem. Demand for and Supply of foreign Exchange. Exchange Rate Regimes: Fixed, Floating
and Managed.
Module 5: Macroeconomic Crisis (2 sessions)
Asian crisis, Global Financial crisis, Sovereign debt crisis, Economic crisis of Covid 19
pandemic
Module 6: Policy Intervention (7 sessions)
Introducing inside and outside lags in policy, Fiscal policy: brief introduction to budget analysis
financing of budget deficit from a central bank perspective, issues in debt management and cash
management of the government, and issues in interest rate of the government
Monetary Policy: Demand for and Supply of money. Money creation Process, Objectives and
instruments of Monetary Policy. Operating target and operating procedure of monetary policy.
Evolution of Monetary Policy framework in India: Credit Planning, Monetary Targeting, Multiple
Indicator, Interest rate indicator. Liquidity management by the RBI: Concept and evolution Monetary
Policy Committee and Inflation Management Monetary Policy. Procedure Liquidity Management
Stance, Monetary policy transmission concept, Process of monetary policy transmission. Linking
monetary policy to Central Bank intervention in FOREX market. Monetary policy and fiscal policy
interface
Module 7: Overview of Advanced topics in Macroeconomics (4 sessions)
Behavioral Foundation Consumption Function: Keynes Psychological Law and Kuznet’s consumption
puzzle, Fisher’s inter-temporal Choice Model, Permanent Income Hypothesis, Life Cycle Hypothesis
and Relative Income Hypothesis. Investment Function: Neo-Classical Theory of Investment, and
Tobin’s q-ratio, Accelerator Theory of Investment (simple and flexible acceleration model Rational
expectations equilibrium (Lucas supply equation) model, Real business cycle theory, New Keynesian
model of price stickiness (micro foundation of Macroeconomics), randomWalk
Module 8: Interface with Industry Experts (1 session)
Basic Reading List
Text Book:
Mankiw N.G. & Taylor M.P. (2007) Principles of Macroeconomics (4 th Edition) CENGAGE
Learning Custom Publishing.

Additional Reading List: Reference Books (Module-wise)

Module 1 and Module 2:

Samuelson P.A. & Nordhaus W. D. (2019) Economics (20 th edition), Tata McGraw Hill, Chapter
Nos.4 and 5
Mishkin S. F. (2014) Macroeconomics Policy & Practice (2 nd edition), Pearson Publication.
Snowden and Vane
Dornbusch Rudiger, Fisher Stanley, Startz Richard (2018) Macroeconomics (12 th edition), Tata
Mc Graw Hill. Chapter Nos 1 and 2, 7, 8, 21 and 22
Module 3:
Dornbusch Rudiger, Fisher Stanley, Startz Richard (2018) Macroeconomics (12 th edition), Tata
Mc Graw Hill, Chapter No. 5
Samuelson P.A. & Nordhaus W. D. (2019) Economics (20 th edition), Tata McGraw Hill,
Chapter Nos. 7 and 15
Module 4:
Dornbusch Rudiger, Fisher Stanley, Startz Richard (2018) Macroeconomics (12 th edition), Tata
Mc Graw Hill, Chapter No. 12
Samuelson P.A. & Nordhaus W. D. (2019) Economics (20 th edition), Tata McGraw Hill,
Chapter Nos. 14 and 15
Module 5:
Mishkin Frederic (2017) Macroeconomics (2 nd edition), Pearson, Chapter 15 Report on Currency and
Finance 2008-09, RBI, Chapter Nos. 2 and 7
Module 6:
Mishkin Frederic (2017) Macroeconomics (2 nd edition), Pearson, Chapter Nos. 13, 16, Samuelson P.A.
& Nordhaus W. D. (2019) Economics (20 th edition), Tata McGraw Hill, Chapter Nos. 7 and 10
Module 7:
Romar David (2019) Advanced Macroeconomics (4 th edition), Tata McGraw Hill, Chapter 8.1 and
Chapter 9.3
Dornbusch Rudiger, Fisher Stanley, Startz Richard (2018) Macroeconomics (12 th edition), Tata Mc
Graw Hill, Chapter Nos. 13,14, 20.4, 20.5, 20.6 and 24 Mishkin Frederic (2017) Macroeconomics (2 nd
edition), Pearson, Chapter Nos.18 and 19 Additional Reading List: Journal Articles
1. Javier B & Enrique G.M. (2020, March) A Fisherman Approach to Financial Crisis:Lessons
from the sudden stops literature. National Bureau of Economic Research.
http://www.nber.org/papers/w26915
2. Kanungo A.K. Determinants of Current Account Balance in Emerging Markets: A Study
of BRICS
3. Mohanty M.S. Market volatility and foreign exchange intervention in EMEs: what has changed? - An
Overview. Bank of International Settlement. BIS Paper No 73.
4. Dua P. (2020, June 23) Monetary policy framework in India. Indian Economic Review
https://doi.org/10.1007/s41775-020-00085-3
5. Oliver J.B. & Lawrence H.S. (2017, December) Rethinking Stabilization Policy: Evolution or
Revolution? National Bureau of Economic Research. http://www.nber.org/papers/w24179.
6. Barry J. Eichengreen and Donald J. Mathieson The Currency Composition of Foreign
Exchange Reserves Retrospect and Prospect, IMF Working Papr
https://isni.org/isni/0000000404811396, International Monetary Fund
7. Sophia Chen, Deniz Igan, Nicola Pierri, and Andrea F. Presbitero Tracking the Economic Impact of
COVID-19 and Mitigation Policies in Europe and the United States IMF Working Paper July 2020
8. RBI Bulletin July 2022 Fed Taper and Indian FinancialMarkets: This Time is Different
9. Ila Patnaik and Radhika Pandey Four years of the inflation targeting framework No. 325 November
17, 2020, National Institute of Public Finance and Policy, New Delhi
10. National Stock Exchange, Market Pulse, A monthly review of Indian economy and markets, July
2022, Vol. 4, Issue 7
11. Keynote Address by Shri Shaktikanta Das, Governor, Reserve Bank of India – Creating New
Opportunities for Growth Delivered at the Bombay Chamber of Commerce and Industry on Thursday,
February 25, 2021
12. Address by Shri Shaktikanta Das, Governor, Reserve Bank of India - Seven Ages of India’s
Monetary Policy at the St. Stephen's College, University of Delhi on January 24, 2020
13. CRISIL Economy First Cut: Inflation sticky, IIP zooms on base effect, July 13, 2022
14. KPMG Global Economic Outlook March 2022, Yael Selfin, Chief Economist, KPMG in the UK.
15. Deloitte, Weekly global economic update, Week of July 25, 2022, by Ira Kalish
16. Ernst and Young, Economy Watch by D. K. Srivastava, July 2022 Additional Reading List: Website
Links
1. https://www.imf.org/en/Publications/WEO/Issues/2022/07/26/world-economic-outlook-
update-july-2022
2. https://www.federalreserve.gov/newsevents/pressreleases/monetary20220727a.htm
3. https://www.ecb.europa.eu/press/pr/date/2022/html/ecb.mp220721~53e5bdd317.en.html
4. https://www.ecb.europa.eu/press/blog/date/2022/html/ecb.blog220723~c2b1d4b654.en.html
5. https://www.ecb.europa.eu/ecb/educational/explainers/tell-me-
more/html/interest_rates.en.html
6. https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=53904
7. https://www.rbi.org.in/Scripts/BS_SpeechesView.aspx?Id=1318
8. https://www.rbi.org.in/Scripts/BS_ViewBulletin.aspx?Id=21137
9. https://www.rbi.org.in/Scripts/BS_ViewBulletin.aspx?Id=21132
10. https://www.rbi.org.in/Scripts/BS_ViewBulletin.aspx?Id=21133
11. https://www.rbi.org.in/Scripts/BS_ViewBulletin.aspx?Id=21129
12. https://www.rbi.org.in/Scripts/PublicationsView.aspx?id=21035
13. https://www.rbi.org.in/Scripts/PublicationsView.aspx?id=21038
14. https://dea.gov.in/sites/default/files/MER%20June%202022_Final.pdf
15. https://www.indiabudget.gov.in/doc/frbm1.pdf
16. https://www.rbi.org.in/
17. https://www.federalreserve.gov/
18. https://www.ecb.europa.eu/home/html/index.en.html
 19. https://www.imf.org/en/Home
20. https://www.indiabudget.gov.in/
21. https://www.indiabudget.gov.in/economicsurvey/
22. https://ec.europa.eu/info/index_en
23. https://tradingeconomics.com/
24. file:///C:/Users/R.K%20Pattnaik/Downloads/ey-economy-watch-july-2022.pdf
**********

Course Code – C-03

Course Name - Statistics

Objective

The objective of this course is to familiarize students with statistical theory and its application as the
foundations for data analysis, as well as to acquaint them with basic and intermediate techniques from
the field of operations research. Students at the end of the course should be familiar with the analysis
and interpretation of data, along with hands on training in both of these fields.

Module 1: Testing of hypothesis: Simple versus composite hypothesis, critical region, type I and type II
errors, power of a test, The Decision Rule , trinity of classical tests ( Wald test, Lagrange multiplier,
likelihood ratio), application of hypothesis testing with known and unknown variances, test for
correlation,

Module 2: Special Distributions; Introduction, The Poisson Distribution, The Normal Distribution, The
Geometric Distribution, The Negative Binomial Distribution, The Gamma Distribution, the Central
Limit Theorem

Module 3: Estimation and Inference; Introduction, Estimating Parameters: The Method of Maximum
Likelihood, the Method of Moments, Interval Estimation, Properties of Estimators, Minimum-Variance
Estimators: The Cramér-Rao Lower Bound, Sufficient Estimators, Consistency, Bayesian Estimation.

Module 4: Bivariate Distributions; Contingency tables, joint and conditional distributions, odds ratio,
test of independence, Analysis of Variance (ANOVA), analysis of covariance.

Module 5: Nonparametric Statistics; Introduction, Sign Test, Wilcoxon Tests, The Kruskal-Wallis Test,
The Friedman Test, Testing for Randomness, Comparing Parametric and Nonparametric Procedures

Module 6: Introduction to OR; Basic algorithms; Linear programming (LP), Graphical and Simplex; LP
Formulation and LP with solver and sensitivity analysis; Transportation and transshipment models;
Simulation; Decision Analysis

Module 7: Advanced algorithms in OR; Goal Programming; Queuing Theory; Networking Models;
Markov chains; Data Envelopment Analysis (DEA); Analytical Hierarchical processing (AHP)

Reading List

· Larsen, Richard J., and Morris L. Marx. (2001): An Introduction to Mathematical Statistics and its
Applications. 3rd ed. Upper Saddle River, NJ: Prentice Hall.

· Lewis Margaret (2011): Applied Statistics for Economists, Routledge.

· Newbold P. (2007): Statistics for Business and Economics (6th edition or later), Prentice Hall

· Sweet, Stephen and Karen Grace- Martin (2008): Data Analysis with SPSS: A First Course in
Applied Statistics, Allyn & Bacon, 3rd Edition.

· Field Andy (2013): Discovering Statistics using IBM SPSS Statistics. Fourth Edition, SAGE

· Quantitative Analysis for Managerial Decision Making By Render and Stair

· Operations Research by Hiller and Liberman

· Operations Research by Hamdy and Taha

**************

Course Code – C-04

Course Name - BASIC ECONOMETRICS
Course Outcome: The course will enable the students:
(i) To provide an overview of the subject and build understanding about the concepts and
techniques used in econometrics. (Module 1, 6, 8 & 9)
(ii) To introduce basic econometric techniques that are widely used in empirical work in
economics and other related disciplines. (Module 3 and 5)
(iii) To enable conceptual understanding and ‘hands on’ applications using economic data
drawn from real-world examples, rather than on formal theoretical proofs alone. (Module
2, 4 and 7)
(iv) By the end of the course, students should be able to develop simple econometric models
and interpret the econometric and statistical results reported in other studies.
Note: Students will be taught software packages for performing econometric applications.
Computer exercises will be given.

Module 1: The nature of Econometrics and Economic Data:

 Introduction, Model Specification and applied research
 The role of data in model specification
 The Structure of Economic Data
 Steps in Empirical Analysis
 Causality and the Notation of Ceteris Paribus in Econometrics, etc.

Module 2: The Classical Linear Regression Model:

 Estimation and Inference: Ordinary least squares (OLS) estimation, the Classical
assumptions, the Gauss-Markov theorem and properties of the OLS estimators
 Interval estimation and hypothesis testing and prediction
 Reporting and interpreting regression results
 Maximum Likelihood techniques
 Restricted Least Square estimation
 Likelihood Ratio (LR)
 Wald and Lagrange Multiplier (LM) Test
 Minimum Variance Bound (Rao-Cramer Inequality Theorem).
Module 3: Non-linear regression:
 Conversion of non-linear forms into linear forms
 Testing linear verses non-linear functional form
 Appropriateness and relevance of the choice of functional form.

Module 4: Regression Analysis with Qualitative information: Binary (or Dummy)

Variables:
 Exogenous Dummy Variable- Formulating and interpreting coefficients on dummy
explanatory variables
 Interactions involving dummy variables and use of dummy variables in seasonal analysis
 Piecewise regression analysis
 The dummy variable alternative to chow test.
 Discrete and Limited Dependent variable - Linear Probability Model, Problems relating
to LPM
 Logit and Probit Model
 Multinomial Choice Models: Ordered Response Model; Unordered Response Model,
Censored and Truncated Regression Model

Module 5: Multicollinearity:
 Introduction, perfect verses imperfect Multicollinearity
 Consequences, tests for detection and remedies for Multicollinearity.

Module 6: Violation of the OLS Assumptions:

 Introduction, Consequences of violation of OLS assumption
 GLS Estimation- Aitken’s generalization of Gauss Marks Theorem.
 Heteroscedasticity & Autocorrelation: Causes and consequences, diagnostic tests and
remedial procedural

Module 7: Specifications: Choosing the Independent Variables and Functional Form

 Omitted variables: Too few variables, Irrelevant variables: variable overload, Criterion of
choice, superfluous variables etc.
 The use and Interpretation of constant term
 Alternative Functional forms, Problem with incorrect functional form, test for choosing
the appropriate functional form.

Module 8: Lagged Variables and Distributed- Lag Models:

 Introduction, Consequences of applying OLS
 Almon’s lag approach
 Koyak Transformation: Partial adjustment hypothesis and adaptive expectations
hypothesis, estimation of distributed lag models etc.

Module 9: Simultaneous Equation Models (SEM):

 Introduction, Structural, reduced form and final form model
 Rational behind the use of SEM - simultaneous bias and inconsistency of the OLS
estimator
 Problem of Identification: Rank and Orders conditions
 Methods of estimation: ILS, 2SLS, Instrumental Variable, LIML (LVR), Mixed
estimation Method, 3 SLS and FIML methods.
References
Books:
1. Green, William H. (2014), Econometric Analysis, Prentice Hall.
2. Griffiths, Hill and Judge (1993), Learning and Practicing Econometrics, Wiley, New
York.
3. Guajarati, Damodar, (2003), Basic Econometrics, 4th Edition, Tata McGraw Hill
Publishing Company, New Delhi
4. Johnston and Dinardo (1997), Econometric Methods, 4th Edition McGraw-Hill
International Edition.
5. Judge, G.G. et al., Introduction to the theory and Practice of econometrics, 2nd Edition
John Wiley and Sons.
6. Koutsoyiannis, A (2004), Theory of Econometrics, 2nd edition, Palgrave, N. Y.
7. Madala G.S. (2001), Introduction to Econometrics, John Wiley & Sons.
8. Pindyck & Rubinfeld (1997), Econometrics Models & Economic Forecast, 4th edition,
McGraw-Hill/Irwin.
9. Studenmund, A.H., (2005), Using Econometrics: A Practical Guide, Addison Wesley
Publishing Company, Boston.
10. Wooldridge J. (2009), Introductory Econometrics: A Modern Approach, South-Western
College Pub.
Articles:
1. Amemiya , Takeshi (1980), ‘Selection of Regressors’, International Economic Review,
Vol. 21, No. 2, June, pp. 331-354,
2. Amin and Islam (2014), ‘Are There More Female Managers in the Retail Sector?
Evidence from Survey Data in Developing Countries,’ Policy Research Working Paper-
6843, World Bank.
3. Angrist and Kruger (2001), ‘Instrumental Variables and search for Identification: From
Supply and Demand to Natural Experiments,’ Journal of Economic Perspective, Volume
15, November 4- Fell 2001, P 69-85
4. Chen, Dhal, and Khan(2002), ‘Nonparametric Identification and Estimation of a
Censored Regression Model with an Application to Unemployment Insurance Receipt’,
Center For Labor Economics University of California, Berkeley Working Paper No. 54
5. Chintagunta and Honore (1996), ‘Investigating the effects of marketing variables and
unobserved heterogeneity in a multinomial probit model,’ International Journal of
Research in Marketing, Elsevier Science, 13(1996) 1-15
6. Comanor William S. and Wilson Thomas A. (1967), ‘Advertising Market Structure and
Performance’, The Review of Economics and Statistics, Vol. 49, No. 4, Nov., pp. 423-440
7. Dornbusch, R.and Pechman, Clarice (1985), ‘The Bid-Ask Spread in the Black Market
for Dollars in Brazil’, Journal of Money, Credit and Banking, Vol. 17, No. 4, Part 1,
November, pp. 517-520.
8. Halvorsen, R. and Palmquist, R. (1980), ‘The Interpretation of Dummy Variables in Semi
logarithmic Equations’, The American Economic Review, Vol. 70, No. 3, June. pp. 474-
475
9. Harvey, A. C. (1976), ‘Estimating Regression Models with Multiplicative

************

Course Code - MA-A-05

Course Name – MATHEMATICS FOR ECONOMICS
 Objective: The course aims at providing students an understanding of mathematical concepts along
with economic applications, and introduce them to mathematical thinking and vocabulary. The
concepts and techniques discussed in this course will find applications in the various branches of
Economics. The expectation is that the instructor will sketch/prove theorems depending on the level
of the class and focus on problems drawn from the microeconomics and macroeconomics courses.

Module 1: Introduction: Exponents; Polynomials; Factoring; Equations: Linear and Quadratic;

Completing the Square; Simultaneous Equations; Functions; Graphs, Slopes and Intercepts; Graphs of
Nonlinear Functions; Isocost Lines; Supply and Demand Analysis; Income Determination Models;
IS-LM Analysis; Production-Possibilities Frontiers.
Module 2: The Derivative and Rules of Differentiation: Limits; Continuity; Slope of a Curvilinear
Function; The Derivative; Differentiability and Continuity; Derivative Notations; Rules of
Differentiation; Higher Order Derivatives; Implicit Differentiation.
Module 3: Uses of the Derivative in Mathematics and Economics: Increasing and Decreasing
Functions; Concavity and Convexity; Relative Extrema; Inflection Points; Optimization of
Functions; Marginal Concepts; Optimizing Economic Functions; Price Elasticity of Demand and
Supply Relationship among Total, Marginal and Average Concepts.
Module 4: Calculus of Multivariable Functions: Functions of Several Variables; Rules of Partial
Differentiation; Second Order Partial Derivatives; Optimization of Multivariable Function;
Constrained Optimization with Lagrange Multiplier; Significance of Lagrange Multiplier;
Differentials; Total and Partial Differentials; Total Derivatives; Implicit and Inverse Function Rules.
Module 5: Exponential and Logarithmic Functions: Exponential Functions; Logarithmic
Functions; Properties of Exponents and Logarithms; Natural Exponential and Logarithmic
Functions; Solving Natural Exponential and Logarithmic Functions; Logarithmic Transformations
and Nonlinear Functions.
Module 6: Fundamentals of Linear Algebra and Matrix Inversion: The Rule of Linear Algebra;
Definitions and Terms; Addition and Subscription of Matrices; Scalar Multiplication; Vector
Multiplication; Multiplication of Matrices; Commutative, Associative and Distributive Laws in
Matrix Algebra; Identify and Null Matrices; Matrix Expressions of a System of Linear Equations;
Row Operations; Augmented Matrix; Gaussian Method of Solving Linear Equations; Determinants
and Non-singularity; Third Order Determinants; Minor and Cofactors; Laplace Expansion and
Higher Order Determinants; Properties of Determinants; Cofactor and Adjoint Matrices; Inverse
Matrices; Solving Linear Equations with the inverse; Cramer’s Rule for Matrix Solutions; Gaussian
Method of Inversing of Matrix.
Readings:
1. Dowling Edward T., Mathematics for Economics, Shaume’s series.
2. Chiang, A.C., Fundamentals Methods of Mathematical Economics, McGraw-Hill, 2005
3. Simon, Carl P. and Lawrence Blume, Mathematics for Economists, W. W. Norton & Company,
Inc., 1994

Additional Readings:
1. Anton H. and Chris Rorres, Elementary Linear Algebra, Wiley India, 2005
2. Bartle R. G. and D. R. Sherbert, Introduction to Real Analysis, John Wiley & Sons,
2000 3.Binmore, K., Foundations of Analysis, Books 1, Cambridge University Press,
1980 4.Binmore, K., Foundations of Analysis, Books 2, Cambridge University Press,
1981 5.Dhrymes, P. J., Mathematics for Econometrics, Springer, 2013
6.Strang, G., Linear Algebra and Its Applications, Cengage Learning, 2007

*****************

Course Code - MA-A-08

Course Name - ECONOMIC GROWTH AND DEVELOPMENT

Learning Outcomes
i) To familiarize students with the multidimensionality of the concept of ‘development’ (Module I)
ii) To discuss the major theoretical developments in areas of growth economics and policy discourse
(Module II)
iii) To elaborate the development theories pertaining to underdevelopment problems of the least-
developed or developing countries (Module III, V)
iv) To provide detailed accounts of secular problems faced by developing countries such as slow
growth,
high poverty rates, high income inequality etc. (Module IV, VI)

Module I: Introduction
● Economic growth, Economic development, Human Development
● Approaches to evaluate growth : trickle down effect, basic needs approach
● Approaches to evaluate development: Rights-based approach, Capability approach ; Development
as Freedom
● Growth and development indicators such as GDP, GNP, Per Capita Income, Human Development
Index and its extensions, Gender related Development Index (GDI), Gender Empowerment
Measure (GEM), Methodology of computation and measurement issues

Module II: Growth Theories:

● Harrod-Domar Model
● Solow growth model and its application to convergence of country growth rates
● New growth theories: Human capital, Externalities and ideas; endogenous technological progress
and development

Module III: Development theories:

● Vicious Circle of Poverty
● Low-level Equilibrium Trap
● Rostow’s Stages of Growth
● Big Push, Balanced and Unbalanced growth
● Dual-economy models by Lewis, Ranis-Fei,
● Rural-urban migration and urban unemployment (Harriss-Todaro model and extensions),
● Rural-urban wage-gap (Labour turnover model and wage- efficiency model – their extensions and
limitations)
● Mydral’s model of Geographical Dualism

Module IV: Institutions & economic development

● Institutions, role of institutions in long-run growth and development
● Which institutions matter?
● Why Poor nations remain poor?
● Institutions for well-functioning market economies, Market failures
● Government failures
● Community and Economic Development, Management of common property resource,
Community Failures

Module V: Poverty and Inequality:

● Measures of poverty- absolute versus relative poverty, poverty gap ratio, poverty lines,
Multidimensional Poverty Index (MPI), debates about poverty lines, Inclusive Growth
● Measures of Inequality - Kuznets ratio, Lorenz curve, GINI Coefficient
● Linkages with development - capital versus labour market, Kuznet’s Inverted U-shaped hypothesis,
Income and Wealth Inequalities, Social Inequality,
● Basic equality and social security and Health care
● India’s performance in case of poverty and inequality reduction, lessons learned from RCTs

Module VI: Development Experiences and Policy Lessons

● International comparison of India with other countries on growth and development indicators
● Inter-state or inter-district comparison on various development indicators and development policies
● Overview of SDGs - targets and achievements
References :
BASIC READING LIST
Bardhan, P. and C. Udry (1999), Development Microeconomics, Oxford University Press.
Basu, K. (2003), Analytical Development Economics: The Less Developed Economy Revisited, The
MIT
Press.
Meier, G. and J. Rauch (2004), Leading Issues in Economic Development, 7th edition, Oxford
University
Press.
Ray, D. (1998), Development Economics, Princeton University Press.
Thirlwall, A.P. (2006), Growth and Development, 8 th edition, Palgrave Macmillan.
ADDITIONAL READING LIST
Module I:
Alkire, S. (2002), Valuing Freedom: Sen’s Capability Approach, New Delhi: OUP.
Bagchi, A. (1982), The political economy of underdevelopment, Cambridge University Press.
Bardhan, P. and C. Udry (eds) (2000), 1st edition, Readings in Development Economics, The MIT
Press.
Meier, G. and J. Rauch (2005), 8 edition, Leading Issues in Economic Development,. Oxford University
Press, USA.
Meier, G. (2001),’The Old Generation of Development Economics and the New’, In: G. Meier and J.
Stiglitz (eds), Frontiers of Development Economics, World Bank.
Mozaffar, Q. (1996), ‘Capabilities, Well-being and Human Development: A survey’, Journal of
Development Studies, 33:143-162.
Mynt, Hla (1987), ‘The neo-classical resurgence in development economics: its strength and
limitations’,
in G.M. Meier (ed) (1987), Pioneers in Development, Second Series, World Bank.
Nussbaum, M. (1995), “Human Capabilities, Female Human Beings’, In: Nussbaum, M. and J. Glover
(eds): Women, Culture and Development: A study of human capabilities, Delhi: OUP.
Rao, V.K.R.V. (1963), ‘Investment, Income and Multiplier in an underdeveloped economy’,
In:Agarwala,
A.N. and S. Singh (eds): Economics of Underdevelopment, Delhi: OUP.

Ray, D. (1998), Development Economics, Princeton University Press.

Sen, Amartya (1983), ‘Development: Which way now?’, Economic Journal, reprinted in: Sen:
Values,Resources and Development. Vol. 93(372), pages 742-62,
Sen, Amartya (August 15, 2000), Development as Freedom. Anchor.
Sen, Amartya (1988), ‘The concept of development’, In: H. Chenery and T.N. Srinivasan (eds):
Handbook of Development Economics Vol 1: North-Holland.
World Development Reports
World Bank 1993
World Bank 1998
China Human Development Report 1999: Transition and the State
Human Development Reports (most recent)
Module II:
Aghion. P. and Howitt. P Endogenous Growth Theory. The MIT Press, 1997.
Barro, Robert J. & Sala-i-Martin, Xavier (1995), Economic Gorwth, MacGrow Hill
Bardhan, P. (1995), ‘The Contributions to Endogenous Growth Theory to the Analysis of Development
Problems’ In:
Behrman, J. and T.N. Srinivasan (ed): Handbook of Development Economics Vol. IIIB pp. 2983–2998
(New York: Elsevier).
Ray, D. (2009), Development Economics, Princeton University Press.
Module III:
Baran, P. (1957), The political economy of growth, Monthly Review Press. Pp. 308.
Bardhan, P. (1988), ‘Alternative approaches to development economics’ Oxford University Press, New
Delhi,
Chenery and Srinivasan (eds) 1995. Handbook of Development Economics, Vol. 1, Elsevier
Bardhan, P. and C. Udry (1999), Development Microeconomics, oxford University press.
Basu, K. (2003), Analytical Development Economics: The Less Developed Economy Revisited, The
MIT
Press.
Booth, D. (1995), ‘Marxism and Development Sociology: Interpreting the Impasse’, In: Corbridge,
Development Studies, London: Edward Arnold.
Frank, G. (1984), ‘The development of underdevelopment’ in The Political Economy of Development
and
Underdevelopment, ed. Charles K. Wilber. New York: Random House. 1984. Pp. 100
Hayami, Y. (1997), Development Economics: From the Poverty to the Wealth of Nations, Oxford:
Clarendon Press.
Jorgenson, D. (1978), ‘Surplus Agricultural Labour and the Development of a Dual Economy’, In:
Singh,
S.P (ed), Underdevelopment to Developing Economies, oxford University press Delhi.
Kay, Geoffrey (1975), Development and underdevelopment: a Marxist analysis. London: The
Macmillan
Press Ltd.
Krugman, P. (1993), ‘Toward a counter-counterrevolution in Development Theory’, Proceedings of the
World Bank Annual Conference on Development Economics 1992, Washington DC: World Bank.
Little, IMD (1982) Economic Development: Theory, Policy and International Relations, New York:
Basic
Books; New York: McGraw- Hill.

Palma, G. (1978), ‘Dependency: a formal theory of underdevelopment or a methodology for the analysis
of concrete situations of underdevelopment’, World Development, Vol. 6, pp. 881-924, Pergamon Press
Ltd.,
Ranis, G. and J.C.H. Fei (1961), ‘A theory of economic development’, American economic review, LI-
4
September, pp 533-565
Ray, D. (2009), Development Economics, Princeton University Press.
Thirlwall, AP (2006), 8th Edition, Growth and Development, Palgrave Macmillan.
Module IV:
Bardhan, P. (1989), ‘The New Institutional Economics and Development Theory’, World Development,
Vol.17 (9), pp.1389-1395.
Bardhan, P. (2001), ‘The nature of institutional impediments to economic development’ In: Kahkonen,
S.
and M. Olson (eds): A New Institutional Approach to Economic Development, New Delhi: Vistaar
Publications.
Bardhan, P. (2000), ‘Understanding underdevelopment: Challenges for Institutional Economics from the
point of view of poor countries’, Journal of Institutional and Theoretical Economics,Vol.135, pp. 216-
235.
Bowles. S. Microeconomics: Behavior, Institutions and Evolution, Princeton University Press, 2006.
Dasgupta. P. An Inquiry into Well Being and Destitution, Clarendon Press 1993.
Dasgupta, P. Human wellbeing and Natural Environment, Oxford University Press, 2002.
Stiglitz, J. (1989), ‘Markets, Market Failures, and Development’, American Economic Review, Vol.79,
pp.197-203.
Hayami, Y. (1997), Development Economics: From the Poverty to the Wealth of Nations, Oxford:
Clarendon Press.
Module V
Asian Development Bank, (2011) “Understanding Poverty in India”
Fields, Gary S. (1981) Poverty, Inequality, and Development: A Distributional Approach, Journal of
Policy Modeling, 3(3), 295-315
Fields,Gary S., 1981. "Poverty, Inequality, and Development," Cambridge Books, Cambridge
University
Press.
Gary S. Fields (2001) “Distribution and Development A New Look at the Developing World”, The MIT
Press, DOI: https://doi.org/10.7551/mitpress/2465.001.0001, ISBN (electronic): 9780262272605
Pomeranz K, The Great Divergence: China, Europe and the Making of the Modern World, Princeton UP
2000
Piketty. T. Capital in the Twenty-First Century, Editions du Seuil,, Belknap Press, 2014
Grusky, David B., Kanbur Ravi, Sen Amartya (2006) “Poverty and Inequality”, Stanford University
Press
Reports by various committees on poverty line
Reports of Planning Commission / NITI Aayog, India
Reports of World Bank
Reports of UNDP
HDR reports
Oxfam reports

Module VI
World Bank reports
Maddison Historical Statistics: Maddison Project Database 2020
NITI Aayog - SDG India Index and Dashboard
NITI Aayog - Reports on SDGs
*********

Course Code - MA-A-09

Course Name - PUBLIC ECONOMICS

Objective
The objective of this course is to familiarize students about the rationale for and role of government
intervention in economic activities and how the government makes economic decisions. The course
will examine the recent developments in both theoretical and empirical literature in the area. The
Indian case studies will be discussed in detail for a better familiarity with Indian public economics.

Module 1: Economic Rationale of the Modern State and Macro Economic Perspective of
Public Finance
Issues related to market failure and the government intervention. The role of State in Allocation,
Distribution, Regulation and Stabilization. The changing role of the State: Issues in a globalizing world
with special emphasis on global public goods. Macroeconomics of Public Finance: The interaction
between fiscal and monetary policy and fiscal stabilization.

Module 2: Economic Analysis of Public Goods

Public goods: pure and impure public goods. Optimal provision of public goods – voting and public
choice – preference revelation mechanisms – Lindahl and successors, free riding, mobility. The
theory of clubs and local public goods. Public goods and the private cost of public goods- Pseudo-
market mechanism for Preference Revelation.

Module 3: Economic decision making in government

Normative social choice theory – Arrow’s theorem – majority voting – The median voter model –
representative democracy. Positive social choice theory: The Leviathan hypothesis – rent – seeking –
lobbying and interest groups.
Module 4: Theory of Taxation

The conflict between efficiency and equity - horizontal and vertical equity- welfare analysis
with uncertainty. Shifting and Incidence of Tax: The Partial and General Equilibrium Analysis-
the Harberger model Canons of taxation. Theory of Optimal Taxation. Taxation and economic
efficiency. Issues related to tax policy in developing countries.

Module 5: Tax Policy Issues in India

Indian Tax System: An assessment

Practical Issues of Tax reforms in India
An introduction to Value Added Tax
Value Added Tax: Design, Issues and Options.
An introduction to MODVAT, CENVAT and Goods and Services Tax
(GST) Issues in the taxation of Services in India.

Module 6: Public Expenditure Theory

Pure theory of public expenditure- Empirical evidence on public expenditure theories.

Public Sector Pricing- Pricing of Public Utilities. Public expenditure management and
control Concept, measurement and magnitude of subsidies. Social infrastructure and
financing of human development. Growth, nature and composition of public expenditure
in India Sustainability issues of Centre and State expenditure in India Issues related to
subsidies in India. Social Security and State level pension reforms in India.

Module 7: Fiscal Federalism

Theory of Fiscal Federalism: The decentralization theorem.

Economic efficiency issues in multilevel government.
Assignment issues in multilevel government.
Theory of intergovernmental transfers.

Module 8: Fiscal Federalism in India

Centre-State Financial relations in India - Constitutional provisions and various committee

recommendations on sharing of revenue. Fiscal Decentralization in India in the context of
73rd and 74th Constitutional Amendments. Implication of recommendations of Finance
Commission. Centrally Sponsored Schemes and its implications for federalism. Sub
national fiscal reforms in India.

Module 9: Fiscal Imbalance and Management of Public Debt

Measurement and macro-economic impact of deficits- alternative paradigms.

The concept of budget. Fiscal deficit and interest rates: Analytical and
empirical issues. Public debt burden and intergenerational equity.
Issues related to public debt sustainability.
Trends and developments in Indian Fiscal Policy.
Recent experience with stabilization functions of India government.
Fiscal Responsibility and Budget Management Act: An Evaluation.
Trends in and Financing pattern of deficits in India and its macro-economic implication

Basic Reading Books

1.Alan Peacock (1979), The Economic Analysis of Governments, St. Martin Press, New
York. 2.Atkinson, A. and Stiglitz, J. (1980), Lectures in Public Economics, McGraw Hill,
London.
3. Auerbach, A., and M. Feldstein (1987), Handbook of Public Economics, Vol. 1 &2. North
Holland, Amsterdam.
4. Boadway, R. (1984), Public Sector Economics, 2nd Sub edition, Scott Foresman & Co.,

London. 5.Cullis, J. And Jones, P. (1998), Public Finance and Public Choice, 2 nd Edition,
Oxford University Press, Oxford.
6. Due, John F. and Friedlander, Ann F. (1977), Government finance: Economics of the public
sector, 6th Edition, Richard D. Irwin Inc., Homewood.
7. Helpman, E., Razin, A. and Sadka, E. (1988) Editors, Economic Effects of the Government
Budget, MIT Press, Cambridge, Mass.
8. Jha, Raghbendra (1999), Modern Public Economics, Routledge, London and New York.
9.Johansen, Leif, (1965), Public economics, North - Holland Publishing Company, Amsterdam.
10.Laffont, Jean-Jacques (1994), Fundamentals of Public Economics, MIT Press Cambridge,
Mass. 11.Myles, Gareth D. (1995), Public Economics, Cambridge University Press, Cambridge.
12.Rosen, Harvey S. (1995), Public Finance 4th Edition, Richard D. Irwin, Chicago.
13.Stiglitz, J.E. (1989) Economics of the Public Sector, W.W. Norton & Company,
London.
14.Thompson, F. And Green, M. T. (1998), Handbook of Public Finance, Marcel Dekker, New
York. 15.World Bank (1996), From Plan to Market, World Development Report, The World
Bank, Washington DC.
16. World Bank (1997), The State in a Changing World, World Development Report, The
World Bank, Washington DC.
17. World Bank (1999), Knowledge for Development, World Development Report, The World
Bank, Washington DC.

Articles
1. Agno Sandmo (1976): Optimal Taxation: An Introduction to Literature, Journal of
Public Economics, 6, pp 37-54.
2. Berry, Steven T. and Joel Waldfogel (1999): "Public Radio in the U.S.: Does it Correct
Market" Public Radio in the U.S.: Does it Correct Market Failure of Cannibalize Commercial
Stations?" Journal of Public Economics 71, 189-211.
3. Charles Tiebout (1956): "A Pure Theory of Local Expenditures, Journal of Public Economics,
64, 416-424.
4. Blejer, M. and Adrienne, C. (1993): ‘How to Measure the Fiscal Deficit’, International
Monetary Fund, Washington DC.
5. Blejer, M. I. and Adrienne, C. (1991): ‘Measurement of Fiscal Deficits: Analytical
and Methodological Issues’, Journal of Economic Literature, 29(4): 1644-78.
 6. Buiter, W.H. (1990): ‘Principles of Budgetary and Financial Policy, Harvester Wheatsheafhm,
New York.
7. Cebula, R. (1988): ‘Federal Government Deficits and Interest rates: An Empirical Analysis
of United States, 1955-1984’, Public Finance, 43(3). 206-210
8. Charles Tiebout (1956): "A Pure Theory of Local Expenditures." JPE 64, 416-424.
9. Coase (1974): The Lighthouse in Economics, Journal of Law and Economics, Vol. 17,
No. 2. (Oct.1974), pp. 357-376
10. Feldstein, Martin (2001) The Transformation of Public Economics Research: 1970-2000,
NBER website.
11. Harberger, A.C., 1962. The incidence of the corporation income tax. Journal of Political
Economy 70(3), 215-240.
12. James M. Buchanan (1965): An Economic Theory of Clubs, Economica, New Series, Vol.
32, No.125. pp. 1-14.
13. Oates, Wallace, (1999): An Essay on Fiscal Federalism, Journal of Economic Literature,
Vol. XXXVII.
14. Samuelson, Paul A. (1954): "The Pure Theory of Public Expenditure." Review of Economics
and Statistics, 387-389.
15. Samuelson, Paul A. (1955): "A Diagrammatic Exposition of the Theory of Public
Expenditures." Review of Economics and Statistics (Nov.)

**************

Course Code - MA-A-10

Course Name - INTERNATIONAL ECONOMICS

PREAMBLE
The course provides a deep understanding about the broad principles and theories, which tend to
govern the flow of trade in goods, services and capital — both short-term and long-term — at the
global level. The contents of the paper, spread over different modules, lay stress on the theory and
nature of the subject which, in turn, will greatly help them to examine the impact of the trade
policies followed both at the national and international levels as also their welfare implications at
macro level and the distribution of gains from trade to North and South with particular reference to
India. The study of the paper under the present era of globalization will train the students about the
likely consequences on income, employment and social standards and possible policy solutions.

Module 1:
Inter-regional versus international trade - Mercantilist doctrine of balance of trade - Adam Smith
and absolute advantage theory of trade - Ricardo and comparative advantage, its limitations -
production possibility curve - Community indifference curve - Gain from trade - Offer curve -
Determination of international equilibrium price - Different concepts of terms of trade - Factors
affecting terms of trade.

Module 2:
Comparative advantage in Heckscher Ohlin Model - definitions of factor abundance - relationship
between factor prices and commodity prices - Factor price equilisation theorem - Factor intensity
reversal - the empirical evidance on Heckscher Ohlin theory - the Leontief Paradox.
Module 3:
The rationale of tariffs, quotas and subsidies – infant industry argument – tariffs and factor income
distribution – Stolper-Samuelson Theorem – Rybczynski Theorem – tariffs, terms of trade and
domestic prices – the optimum tariff rate – tariffs, subsidies and distortions in commodity and
factor markets – effective rate of protection. Welfare implications of tariffs – Non-tariff barriers.
Effects of quotas and other quantitative restrictions – tariffs versus quotas, Theory of customs
union.

Module 4:
Trade and growth – export led or outward looking industrialization – case of East Asian economies
– import substituting or inward looking industrialization – Case of South Asian economies with
special reference to India – Growth and terms of trade – immiserising growth – Foreign exchange
constraint on growth.

Module 5:
Equilibrium and disequilibrium in BOP – role of international reserves – preliminary concepts
about payments adjustments – domestic monetary and fiscal policies and BOP. Foreign trade
multiplier, national income and BOP – multiplier in the presence of foreign repercussions –
international transmission of business cycles.

Module 6:
The demand for and supply of foreign exchange – fixed and flexible exchange rates – spot and
forward markets for foreign exchange – speculation and arbitrage – role of expectations.

Module 7:
Automatic adjustment under gold standard – expenditure reducing and expenditure switching
policies – Depreciation and elasticity approach – absorption approach – Multiple exchange rates
– Exchange and trade controls.

Module 8:
Formation of regional trade blocs, Regional trade blocs and barriers to free flows of trade.
Asian Financial Crisis of 1997, Global Financial Crisis of 2008 and Euro Zone Crisis- Causes
and Impact. World Trade Organization and fair trade.

**********
BASIC READING LIST
1. Bhagwati & Srinivasan (1983), Lectures on international trade, The MIT Press.
2. Bhagwati, Jagdish (1964), “The Pure Theory of International Trade”, Economic Journal, Vol.
74, pp. 1-78.
3. Borkakoti, J. (1998), International trade: Causes & Consequences, MacMillan, London.
4. Caves, R. E., Frankel, J. A., Jones, R. W. (1993), World Trade and Payments, 6th edition,
Harper Collins, New York
5. Chacholiades, M. (1981), Principles of International economics, McGraw-Hill, New York.
6.Chipman, John S. (1965), “A survey of the theory International trade: Part 1, The
 Classical Theory,” Econometrica, Vol. 33, No. 3, July, pp. 477{519}.
7. Chipman, J. S. (1965), “A Survey of the Theory of International Trade: Part 2, The Neo-
Classical Theory,” Econometrica, October, Vol. 33, No. 4, pp. 685{760}.
8. Chipman, J. S. (1966), “A Survey of the Theory of International Trade: Part 3, The
Modern Theory,” Econometrica, Vol. 34, No. 1, January, pp. 18{76}.
9. Ethier, W. J. (1995), Modern International economics, 3rd edition, W.W. Norton & Co.
10.Heffernan & Sinclair, (1991), Modern International economics, Illustrated edition,
Wiley- Blackwell
11. Heller, H. R. (1973), International trade: Theory and empirical evidence, 2nd Edition, Prentice-
Hall, Englewood Cliff, New Jersey.
12. Krugman, P. R. & Obstfeld, Maurice, (2008), International economics: Theory & policy,
Addison- Wesley, May.
13. Makusen, J. R. & Melvin etc. (1994), International trade: Theory and evidence, International,
Ed edition, 1 Dec, McGraw- Hill Inc, US.
14. Neary, J. P. (1995), Readings in International Trade: Volume I, Welfare and Trade Policy;
Volume II, Production Structure, Trade and Growth, International Library of Critical Writings
in Economics, Edward Elgar, Cheltenham.
15. Pugel & Lindert (1999), International economics, 11th edition, Irwin/McGraw-Hill, December 13.

ADDITIONAL READING LIST

Module 1:
1.Batra (1973), Studies in the Pure Theory of International Trade, St. Martin's Press, August.
2.Borkakoti, J. (1987), International trade: Causes & Consequences, Palgrave, MacMillan.
3. Bhagwati, J. N. (1987), International trade: Selected readings, 2nd Edition, MIT Press,
Cambridge, Mass.
4. Takayama (1972), International Trade, Holt, Rinehart and Winston, New York

Module 2:
1. Bhagwati, Jagdish (1964), “The Pure Theory of International Trade”, Economic Journal, Vol.
74, pp. 1-78.
2. Jhonson, Harry (1958), International trade & economic growth, Harvard University
Press, Cambridge.
3. Leontief, W. (1986), Input output economics, Oxford University Press, USA.
4. Minhas, Bagicha S. (1962), “The Homohypallagic Production Function, Factor-Intensity
Reversals, and the Heckscher-Ohlin Theorem,” Journal of Political Economy, April, Vol. 70, pp.
138-156.
5. Neary, J. P. (ed.) (1995), Readings in International Trade: Volume I, Welfare and Trade
Policy; Volume II, Production Structure, Trade and Growth, International Library of Critical
Writings in Economics, Edward Elgar, Cheltenham.

Module 3:
1.Brander, James A. & Spencer, Barbara J. (1985), “Export subsidies and international market
share rivalry,” Journal of International Economics, Elsevier, Vol. 18(1-2), February, pages 83-
100, 2.Kravis, Irving B. (1956), “‘Availability’ and Other Influences on the Commodity
Composition of
Trade,” Journal of Political Economy, Vol. 64, No.2, April, pp. 143-155.
3. Krugman, Paul, (1979), A model of innovation, technology transfer & the world distribution of
income, Journal of Political Economy, Vol. 87, April, pp. 253-266.
4. Krugman, Paul R. (1994), Rethinking international trade, MIT Press.
5. Krugman, Paul R. (1979), “Increasing Returns, Monopolistic Competition, and
International Trade,” Journal of International Economics, Vol. 9, November, pp. 469-479.
6. Linder, Staffan Burenstam (1961), An Essay on Trade and Transformation, Wiley and Sons,
New York
7. Melvin, James R. (1988), Monopoly & theory of International trade, Harpercollins College
Div. 8.Patibandla, M. (1994), New Theories of International Trade: A Survey of Literature, The
Indian Economic Journal, January- March
9.Vernon, Raymond (1966), “International Investment and International Trade in the Product
Cycle,” Quarterly Journal of Economics, Vol. 80, May, pp. 1900-207.

Module 4:
1. Bhagwati, J. N. (1987), International trade: Selected readings, Second Edition, MIT
Press, Cambridge, Massachusetts
2. Bhagwati, Jagdish (1969), Trade tariffs & growth, The MIT Press, November 15

3. Corden (1971), Theory of Protection, Clarendon Press, Oxford.

4. Greenaway, David (1983), International trade policy: From Tariffs to the New Protectionism,
Macmillan Publishers Limited, London.
5. Neary, J. P. (ed.) (1995), Readings in International Trade: Volume I, Welfare and Trade
Policy; Volume II, Production Structure, Trade and Growth, International Library of Critical
Writings in Economics, Edward Elgar, Cheltenham.
6. Pearce & Batra, Theory of nominal tariffs & subsidies.

Module 5:
1. Corden (1971), Theory of Protection, Clarendon Press, Oxford.
2. Greenaway, David (1983), International trade policy: From Tariffs to the New Protectionism,
Macmillan Publishers Limited, London.
3. Helpman & Krugman (1989), Trade policy and market structure, The MIT Press, March 30

Module 6:
1. Bhagwati, J. N. (1987), International trade: Selected readings, 2nd Edition, Cambridge, MIT
Press, Massachusetts
2. Lipsey, R. G.( 1957) The theory of customs unions trade diversion and welfare, The
Review of Economic Studies, Economica, Vol. 24, No. 93, Feb, pp. 40-46.

Module 7:
1. Bhagwati, J. N. (1987), International trade: Selected readings, Second Edition, MIT
Press, Cambridge, Massachusetts
2. Jhonson, Harry (1958), International trade & economic growth: Studies in Pure Theory,
Harvard University Press, Cambridge, Chap. 5
3. Neary, J. P. (1995), Readings in International Trade: Volume I, Welfare and Trade Policy;
 Volume II, Production Structure, Trade and Growth, International Library of Critical Writings
in Economics, Edward Elgar, Cheltenham.

Module 8:
1. Aggarwal, M. R. (1979), Regional Economic Cooperation in South Asia, S. Chand and Co.,
New Delhi.
2. Bhalla, & Bhalla, (1997), Regional Blocs, Palgrave MacMillan.
3. Bhandari, S. (1998), WTO & Developing Countries ,1st edition, Deep & Deep Publications, June
ADDITIONAL READING LIST:
Caves & Johnsan, (1968), Readings in International Trade, Homewood, IL-Irwin
Yeager Leland B.(1966), International Monetary Relations Theory, History & Policy, The
Journal of Finance, Blackwell
Publishing for the American Finance Association, vii, pp 544-46
Richard D. (1968), Readings in the Theory, Homewood, Ill. A.E.A.: Irwin, Inc.
Salvatore, D ., International Economics 8th edition John Wiley and Sons, Inc
Clement, M. O (1967)., Theoretical Issues in International Economics, Houghton Mifflin Boston
4.Frankel, Jeffrey, (1997), Regional Trading Blocs in the World Economic System, Institute
for International Economics, Washington, DC
4. I. M. F. Occasional papers (1993), Experience with regional integration Industrial countries.
6.Kenen, P. B. (1995), Economic and Monetary Union in Europe, Cambridge University Press,
U.K. 7.Pomfret, Richard (2001), The economics of regional trading arrangements, Oxford
University Press.
**********

Course Code – MA-A-11

Course Name - Financial Institutions and Markets

Course Outcome: The course will enable the students:

i. To introduce the various domestic and foreign financial markets and describe the special functions of
financial institutions (Module 1 and 8).
ii. To look at factors that determine interest rate levels, as well as their past, present, and
expected future movements (Module 2).
iii. To describe the central bank’s role and how monetary policy implemented by the
monetary authority affects interest rates and, ultimately, the overall economy; to
summarize the operations of commercial banks, describe the key characteristics and
recent trends in the commercial and co-operative banking sector; to provide a
comprehensive look at the regulations under which these financial institutions operate
and, particularly, the effect of recent changes in regulation (Module 3).
iv. To take an analytical look at how financial markets and institutions benefit today’s economy; to
present an overview of the various securities markets and describe each securities market, its
participants, the securities traded in each, the trading process, and how changes in interest rates,
inflation, and foreign exchange rates impact a financial manager’s decisions to hedge risk; to analyze the
ways in which financial institutions can insulate themselves from liquidity risk and the key role deposit
insurance and other guarantee schemes play in reducing liquidity risk. (Modules 4, 5 and 7).
v. To provide an overview describing the key characteristics and regulatory features of international
financial institutions (Module 6).
vi. In the context of the unifying framework of the nation's financial and monetary
regime, this course offers different perspectives, both in terms of pedagogical
presentation and issues.

Module 1: Financial System and Market Risk Management: (6 hours)

 Structure of Financial System
 Indian Financial System
 The Place of Financial Markets in the Economy
 Real Assets and Financial Claims – A Framework for Macro-Economic Analysis of
Financial and Non-Financial Flows
 The Relation Between Stocks and Flows
 Types of Risk - Importance of Risks in the Competitive Management of the Banking
Institutions

Module 2: Rate of Interest, International Transactions and Exchange Rates: (6 hours)

 Rate of Interest
 International Transactions
 Exchange Rates

Module 3: The Central Bank, Commercial Banks and Co-operative Banks: (6 hours)
 Functions of Central Banks
 The Aims and Objectives of the Monetary Policy in Developed and Developing
Countries
 Instruments of Monetary Policy
 Effectiveness of Monetary Policy
 Credit Creation and Control
 Commercial Banks - Profitability, Efficiency, Role in the Economy
 Co-operative Banks - Role in the Economy

Module 4: Specialized Financial Institutions: (6 hours)

 Industrial Finance Corporation of India (IFCI)
 Industrial Development Bank of India (IDBI)
 Industrial Credit and Investment Corporation of India (ICICI)
 Industrial Investment Bank of India (IIBI)
 Small Industries Development Bank of India (SIDBI)
 Shipping Credit and Investment Corporation of India (SCICI)
 National Bank for Agriculture and Rural Development (NABARD)
 Export Import Bank of India (EXIM)
 National Housing Bank (NHB)

Module 5: Other Financial Institutions: (6 hours)

 Insurance Companies
 Types of Insurance Companies
 Securities Firms
 Investment Banks
 Finance Companies
 Mutual Funds
 Pension Funds

Module 6: International Financial Institutions: (6 hours)

 International Monetary Fund (IMF)
 World Bank
 International Finance Corporation (IFC)
 Asian Development Bank (ADB)
 International Development Association (IDA)
 Bank of International Settlements (BIS)
 International Financial Standards and Codes and Issues of Financial Contagion

Module 7: Financial Markets and Market Regulations: (7 hours)

 Primary Markets Vs. Secondary Markets
 Securities Firms and Securities Industry
 Government Securities Markets and Dealerships
 Money Markets
 Capital Markets
 Structure And Operations of Indian Money Market
 Bond Markets
 Mortgage Markets
 Stock Markets
 Foreign Exchange Market
 Call Money Market
 Treasury Bill Market
 Commercial Bill Market
 Markets For Commercial Papers and Certificates of Deposit
 Discount Market
 Market for Financial Guarantees
 Government (Gilt-Edged) Securities Market
 Industrial Securities Market
 Derivative Markets
 Capital Market Regulations
 Money Market Regulations
 Stock Market Regulations
 Role of SEBI - Its Impact on the Working of Capital Market in India
 IRDA And its Role in Financial Markets
 Management of Liquidity and Risk
 Bank Safety and Prudential Regulations;
 The Role of Central Banks
 Government Guarantees
 Deposit Insurance
 Security Market Regulation
 Pension Fund Regulation
 Insurance Regulation and Accounting Practices

Module 8: International Markets: (7 hours)

 US Money and Capital Markets
 London Money Markets
 London Capital Markets
 Foreign Trade Finance
 External Commercial Borrowings
 GDRs and ADRs
 Eurocurrency and Eurobond Markets

References
Books:
Bhole, L.M. (2003), Financial Institutions and Markets, 3rd edition, Tata Mc Graw Hill
Company Ltd., New Delhi
Bhole, L.M. (2000), Indian Financial System, Chugh publications, Allahabad.
Edminster, R.O. (1986), Financial Institutions, Markets and Management, McGraw Hill, New
York.
Goldsmith, R.W. (1969), Financial Structure and Development, Yale, London.
Hanson, J. A. and S. Kathuria (Eds.) (1999): A Financial sector for the Twenty-First Century,
Oxford University Press, New Delhi.
Harker, P.T. and Zenious, S.A. (2000) (Ed.) Performance of Financial Institutions,
Cambridge University Press, Cambridge.
Johnson, H.J. (1993), Financial Institutions and Markets, McGraw Hill, New York.
Khan, M.Y. (1996), Indian Financial System, Tata McGraw Hill, New Delhi.
Machiraju, M.R. (1999), Indian Financial Systems, Vikas Publishing House, New Delhi.

Ohlson, J.A. (1987), The Theory of Financial Markets and Institutions, North Holland,
Amsterdam.
Perter, S. Rose (2002), 5th Ed. Commercial Bank Management, McGraw Hill, Irwin.
Prasad, K.N. (2001), Development of India’s Financial System, Sarup & Sons, New Delhi.
Robinson, R.I. and Wrightman (1981), Financial Markets, McGraw Hill, London.
Smith, P.F. (1978), Money and Financial Intermediation: The Theory and Structure of
Financial System, Prentice Hall, Englewood-Cliffs, New Jersey.
Saunders, Anthony and Cornett, Marcia Millon (2001), Financial Markets and Institutions,
McGraw Hill, Irwin.
Levi, Maurice D, 3rd edition (September 13, 1995), International Finance: The Market and
Financial Management of Multinational Business, McGraw Hill College.
Madura, Jeff, Financial Markets and Institutions, 8th edition, Cengage Learning.
Grinbaltt, M. and Titman, S .and David Hillier, Financial Markets and Corporate Strategy,
September 29, 2008, McGraw Hill.
Bhattacharya, H. Banking Strategy, Credit Appraisal and Lending Decisions, April 8, 1999,
Oxford University Press, USA.
Chandra, Prasanna (1993), Fundamental of Financial Management: Theory & Practice, Tata
McGraw Hill.
Joshi, P. R., Global Capital Markets: Shopping for Finance, (2nd ed.), Tata McGraw-Hill.
Mason, E.S. & Asher, R. E. (1973), The World Bank Since Bretton Woods, New York Times.
Dufey, G. & Giddy, I.H. (1994), The International Money Market, Prentice Hall, New
Jersey.
Saksena, R.M. (1970), Development Banking in India, 1st edition, Vora.
Escott, Reid, Strengthening the World Bank, Adlai Stevenson Institute Chicago, IL (1111)
Chandavarkar, Anand (1996), Central Banking in Developing Countries, Palgrave
Macmillan, December.
Khoury & Ghosh (1989), Recent Development in International Banking & Finance, 3rd
edition (September), Irwin Professional Publishing.
Deb, K (1988), Indian Banking Since Independence, (December), South Asia Books.
Kothari, C. R., Indian Banking, Vol. I & II.
Ghosh, D. N. (1979), Banking Policy in India: An Evaluation, Allied.

Apte, P. G. (2002), International Financial Management, Tata McGraw Hill Publishing Co

Ltd.

Reddy, Y. V. (1986), World Bank Borrowers’ Perspectives, (January), Stosius Inc/Advent

Books Division.
Vasudevan, A. (2003), Central Banking for Emerging Market Economies, (October 1),
Academic Foundation.
Rose, Peter S. (2002), Money & Capital Markets, 8th edition (July 22), McGraw-Hill/Irwin.
Mathur, B. L. (2000), Financial Sector Reforms, RBSA Publishers.
RBI, Report on Trend & Progress of Banking in India, 2005-06.
Ministry of Finance, Government of India – Economic Survey.

Additional Reading List

Module 1
Bishop, P. and D. Dixon (1992), Foreign Exchange Handbook, McGraw Hill, New York.
Chandra, P. (1997), Financial Markets, (4th Edition), Tata McGraw Hill, New Delhi.
Farrell, J.L. (1997), Portfolio Management, (2nd Edition), McGraw Hill, New York.
Machiraju, H.R. (1997), International Financial Markets in India, Wheeler Publishing,
Allahabad.
Shaw, E.S. (1983), Financial Deepening in Economic Development, Oxford University Press,
London.
Module 2
Fenstermaker, J.V. (1969), Readings in Financial Markets and Institutions, Appleton, New
York.
Shaw, E.S. (1983), Financial Deepening in Economic Development, Oxford University Press,
London.
Smith, P.F. (1978), Money and Financial Intermediation: The Theory and Structure of
Financial System, Prentice Hall, Englewood-Cliffs, New Jersey.
Module 3

Chandler L.V., and S.M. Goldfeld (1977), The Economics of Money and Banking, Harper &
Row, New York.
Gupta, S.B. (1983), Monetary Economics, S. Chand & Company, New Delhi.

Rangaranjan, C. (1999), Indian Economics: Essays on Money and Finance, UBS Publication,
New Delhi.
RBI (1983), Functions and Working of RBI.
Sayers, R.S. (1967), Modern Banking, Oxford University Press, New Delhi.
Verma, J.S. (1989), A Manual of Merchant Banking, Bharat Law House, New Delhi.
Module 4
Cline, D. K., & Mazumder, S. (2022). Money, banking, and financial markets: A modern
introduction to macroeconomics. Routledge.
Ritter, L. S., Silber, W. L., & Udell, G. F. (2008). Principles of money, banking & financial
markets. Prentice Hall.
Module 5
Bhatt, R.S. (1996), Unit Trust of India and Mutual Funds: A Study, UTI Institute of Capital
Markets, Mumbai.
Sahadevan, K.G. and M.T. Thiripalraju (1997), Mutual Funds, Prentice Hall of India, New
Delhi.
Module 6
Schoenholtz, K., & Cecchetti, S. (2014). Money, banking and financial markets. McGraw-
Hill Education.
Module 7
Fisher, G.E. and R.J. Jordon (1992), Security Analysis and Portfolio Management, Eastern
Economy Edition, New Delhi.
Goss, B.A. and B.S. Yamey (1978), The Economics of Futures Trading, Macmillan, London.
R.B.I. (1985), Report of The Committee to Review the Working of the Monetary system
(Chakravarty Committee), Bombay.
Weller P. (1992), The Theory of Future Markets, Blackwell, Oxford.
Gupta, L.C. (Ed.) (1999), India’s Financial Markets and Institutions, Society for Capital
Research and Development, Delhi.

Module 8
Brahmananda, P.R. (1982), IMF Loan and India’s Economic Future, Himalaya Publishing
House, Bombay.
Chamberlain, G. (1981), Trading in Options, Woodhed-Faulker, Cambridge.
Crocker, A. (1982), International Money: Issues and Analysis, The English Language Book
Society, Nelson, London.
Kindleberger, C.P. (1996), A History of Financial Crisis, Manias, Panics and Crashes, John
Wiley & Sons, New York.
Mackinnon, R.J. (1979), Money in International Exchange, Oxford University Press, Oxford.
Niehans, J. (1984), International Monetary Economics, John Hopkins University Press, New
York.
R.B.I. (1995), Report of the Working Group on Foreign Exchange Market in India, (Sodhani
Group), Mumbai.
Redseth, A. (2000), Open Economy Macroeconomics, Cambridge University Press,
Cambridge.
Yeager, L.B. (1976), International Monetary Relations: Theory, History and Policy, Harper
and Row, New York.

*********

Course Name - MA-A-12

Course Name - Indian Economy
This course aims at understanding of various dimensions of Indian economy and historical
perspective of the various rounds of reforms carried out in different sectors of the economy after the
independence.
1. History of development and planning— Alternative development strategies—goal of self-
reliance based on import substitution and protection, the post-1991 globalization strategies based on
stabilization and structural adjustment packages: fiscal reforms, financial sector reforms and trade
reforms.
2. Federal Finance—Constitutional provisions relating to fiscal and financial powers of the States,
Finance Commissions and their formulae for sharing taxes, Financial aspect of Sarkaria Commission
Report, financial aspects of 73rd and 74th Constitutional Amendments.
3. Budgeting and Fiscal Policy—Tax, expenditure, budgetary deficits, pension and fiscal reforms,
Public debt management and reforms, Fiscal Responsibility and Budget Management (FRBM) Act,
Black money and Parallel economy in India—definition, estimates, genesis, consequences and
remedies.
4. Poverty, Unemployment and Human Development—Estimates of inequality and poverty
measures for India, appraisal of Government measures, India’s human development record in global
perspective. India’s population policy and development.
5. Agriculture and Rural Development Strategies— Technologies and institutions, land relations and
land reforms, rural credit, modern farm inputs and marketing— price policy and subsidies;
commercialization and diversification. Rural development programmes including poverty alleviation
programmes, development of economic and social infrastructure and New Rural Employment
Guarantee Scheme.
6. India’s experience with Urbanization and Migration—Different types of migratory flows and
their impact on the economies of their origin and destination, the process of growth of urban
settlements; urban development strategies.
7. Industry: Strategy of industrial development— Industrial Policy Reform; Reservation Policy
relating to small scale industries. Competition policy, Sources of industrial finances. Bank, share
market, insurance companies, pension funds, non-banking sources and foreign direct investment,
role of foreign capital for direct investment and portfolio investment, Public sector reform,
privatization and disinvestment.
8. Labour—Employment, unemployment and underemployment, industrial relations and labour
welfare— strategies for employment generation—Urban labour market and informal sector
employment, Report of National Commission on Labour, Social issues relating to labour e.g. Child
Labour, Bonded Labour International Labour Standard and its impact.
9. Foreign trade—Salient features of India’s foreign trade, composition, direction and organisation
of trade, recent changes in trade, balance of payments, tariff policy, exchange rate, India and WTO
requirements. Bilateral Trade Agreements and their implications.
10. Inflation—Definition, trends, estimates, consequences and remedies (control): Wholesale Price
Index. Consumer Price Index: components and trends.

BASIC READING LIST

1. Uma Kapila, Indian Economy (2019), 20th Edition, Academic Foundation Publication.
2. Datta and Sundaram, Indian Economy (2019), 72nd Edition, S. Chand Publication.
3. Puri V.K., Misra S.K., Indian Economy (2019), 37th Edition, Himalaya Publishing House.

***********

Course Code – MA-A-13

Course Name -: ENVIRONMENTAL ECONOMICS

PREAMBLE: The present paper intends to study the various issues concerning the environment. The
study of environment in Economics is of recent origin. Economic dimension of the environment is
very much important. Its study enables to understand the economic values of the environment and its
services. Economics of Environment is not only an applied branch of main stream Economics, but
also a normative one. It is against this overall backdrop, the present paper endeavours to study some
of the environmental issues, theoretical all well as applied.

SECTION – I
Module –1 : INTRODUCTION TO ENVIRONMENTAL ECONOMICS:

1.1 Meaning, nature, Scope and Significance of Economics of Environment 1.2 Economic
Development and the Environment- 1.3 Common Property Resources and their depletion,
Ecosystems – Loss of Biodiversity 1.4 Sustainable development.

Module-2: ENVIRONMENTAL PROBLEMS OF INDUSTRIAL DEVELOPMENT:

2.1 Environmental Problems of Industrial development: Water Pollution, Air Pollution, Noise
Pollution 2.2 Depletion of ozone layer- Carbon Credit- Environment Friendly size of firm 2.3 Limits
to growth theory 2.4 Special Economic Zones and the environment.

Module-3: ENVIRONMENTAL PROBLEMS OF AGRICULTURAL DEVELOPMENT:

3.1 Environmental Problems of Agricultural development- Salinity, water logging, desertification of

land 3.2 Excess use of water, fertilizers and pesticides, farm implements cropping pattern 3.3 Natural
farming 4.4 Environmental education and awareness among farmers 4.5 Forest depletion: Causes
and impact, importance of social forestry.

Module-4: ROLE OF VARIOUS SECTORS IN ENVIRONMENT PROTECTION:

4.1 Role of Public / Government, Private and Co-operative Sectors in Environment Protection - Role
of NGOs, 4.2 World Wildlife Fund (WWF) 4.3 Chipco movement, 4.4 Save the Western Ghats.

Module-5: ECONOMICS OF ENVIRONMENTAL POLLUTION:

5.1 Cost-benefit analysis- Environmental Impact Assessment- Environmental Audit – 5.2
Environmental policy- 5.3 Economics of Recycling 5.4 Energy Sources- Energy Production
from waste.

Module: 6 RURAL AND URBAN ENVIRONMENTAL PROBLEMS

6.1 Rural and Urban environmental problems – Population and the Environment- Housing and Slums
and the environment- 6.2 Rural Sanitation Scheme 6.3 Poverty and the Environment.

Module-7: GLOBAL ENVIRONMENTAL ISSUES:

7.1 WTO and environment - World Bank and the environment 7.2 Polluter pays principle – trade
and environment- Climate Change- 7.3 Natural Resource Accounting 7.4 International attempts to
protect the environment: Movements, Laws, and Agreements.

Module- 8: ENVIRONMENTAL POLICY IN INDIA:

8.1 Environmental Policy in India- Environment protection laws in India 8.2 Central pollution
Control Board, 8.3 State Pollution Control Boards 8.4 Local Bodies and Environment protection.

BASIC READING LIST:

1.Bhattacharya R.N. (Ed) (2001), Environmental Economics: An Indian Perspective,

Oxford University Press, New Delhi.
2.U.Shankar (Ed)(2001), Environmental Economics , Oxford University Press, New Delhi.
3.Hanley, Shogren & White (2004), Environmental Economics in Theory and Practice,
Macmillan India limited, Delhi.
4Baumal, W. J. & W. E. (1997), The Theory of Environmental Policy, Prentice Hall, Englewood-
Cliffs.
7. Bharadwaj, R. (1983), Managing Limits to Growth, Asian and Pacific Development Centre,
Kula Lumpur.
5Dorfman, R. & N. Dorfman (Eds.) (1977), Economics of the Environment, W W. Norton, New
York. 6Nijkamp, P. (Ed.) (1976), Environmental Economics, Vol. I & II, Martinus Nijhoft,
Leiden 7Charles Perring (1987), Economy and Environment Cambridge University Press, New
York.
8Ali, S. A. (1979), Resources for Future Economic Growth, Vikas Publishing House, New
Delhi 9Rathore, M. S. (Ed.) (1996), Environmental and Development, Rawat Publications
Jaipur.
10Garge, M. R. (Ed.) (1996), Environmental Pollution and Protection, Deep and Deep
Publications, New Delhi.
11Lodha, S. L. (Ed.) (1991), Economics of Environment, RBSA Publishers, Jaipur.
12Singh, G. N. (Ed.) (1991), Environmental Economics, Mittal Publications, New
Delhi 13Mehta, C. S. (1994), Environment and Law, RBSA Publishers, New Delhi.
14Karpagam, M. (1993), Environmental Economics, Sterling Publishers, New
Delhi 15World Bank Report on Human Development.

***********
Course Code - MA-A-14
Course Name - QUANTITATIVE APTITUDE
The basic aim of this course is to prepare students for the advance quantitative techniques used in
Economics. At the same time, it also aims to provide basic quantitative aptitude required for various
competitive exams.

Module 1
Number system, Average, Banker's Discount, Simple Interest, Compound Interests, Partnership,
Percentages, Proportions, Percentage, Permutations and Combinations, LCM and HCF,
Progressions, Simplification.

Module 2
Height and Distance, Mensuration, Odd Man Out and Series, Problems on Age, Problems on
Trains, Pipes and Cistern, Races and Games, Time, Work and Distance.

Module 3
Profit and Loss, Ratio and Proportion, Relations and Functions, Square and Cube Root, Surds
and Indices, Trigonometry, Volume Surface Area and Perimeter, Vector, Probability.

Module 4
 Binomial Theorem, Boats and Streams, Calculus, Calendar, Chain Rule, Clock, Complex Number
and Quadratic Equations, Coordinate Geometry, Decimal Fractions, Logarithm, Linear Equations.

Module 5
Numerical Ability: Numerical computation, numerical estimation, numerical reasoning and data
interpretation.

References:

1.Aggarwal, R S, ‘Quantitative Aptitude’, S Chand Publications, 2008, New Delhi.

2.Verma, Rajesh, ‘Fast Track Objective Arithmetic’, Arihant Publications, New
Delhi. 3.Lang, Serge, ‘Basic Mathematics’, Springer Publications, 1998,

*********

Course Code - MA-A-17

Course Name - Research Methodology
This paper enables students to understand the basics of research methods, concepts and types of
research. It also includes various research designs and steps in research. It familiarizes students with
quantitative and qualitative techniques of data collection and its actual process. Various software for
data collection and analysis are introduced in this paper. The introduction of research communication,
an important aspect of any research, makes this course extremely important. Further, students will get
acquainted with how to write a research grant or fellowship application including ethical guidelines and
other regulatory requirements.

Unit 1 – Scientific Methods of Research

 Definition of Research
 Aims, objectives and scope of social research, Assumptions, Operations and Aims of Scientific
Research, Steps in research, Formulation of a research problem, Operationalisation of concepts,
Research Process: conceptual, Empirical and Analytical Phases of Research, Essentials Criteria
of Scientific methods.

Unit 2 - Research Designs and Logic in research

 Experimental research design: Pre experimental, True experimental and Quasi experimental
research design, RCT
 Non-experimental research design: Descriptive, exploratory, Explanatory and Monitoring and
Evaluation
 Reliability and Validity- Face, content, construct, convergent, concurrent, and predictive validity
 Inductive and deductive reasoning; Measurements
 Non-random and random errors, Scaling and composite indices

Unit 3 – Data collection – Quantitative and Qualitative

 Quantitative: Survey methods and their application to public health research, Conceptual
framework; Mixed-method design; Survey design and planning, sampling; Construction of
questionnaire; Data collection and analysis; Large sample surveys – Techniques
 Qualitative: Types of qualitative research, approaches in qualitative Research-Ethnography,
Grounded Theory, Historical research
  Qualitative data collection methods: In Depth Interview, Focus Group Discussion, Observation,
Case Study, Participatory methods, KII
 Sampling and Analytical approaches- thematic analysis, content analysis, narrative analysis

Unit 4 – Communication and Proposal Development

 Scientific writing, Writing and Presentation of literature review, report, papers, manuals,
Research Brief, Plagiarism, Ethics in research
 Select a topic, identify a research gap, Frame research questions, Develop objectives
 Select a study design, Write the detailed methodology, Develop the analysis format
 Write proposal for grant

Unit 5 - Monitoring and Evaluation

 Principles of Monitoring & Evaluation: Introduction to M&E – roles and uses; Results paradigm:
inputs, activities, outputs, outcomes and impact/goal; M&E in Project Cycle; Stakeholder
Analysis – who, needs and roles.
 M&E Frameworks: LFA; Logic model; Results frame; M&E plan in general
 Theory of Change: Theory of change – project design, M&E frame Knowledge & Skills for
efficiency and productivity in development
 Quantitative Impact Evaluation: Estimation of Counterfactual – Theoretical concept; Descriptive
comparison - Why simple difference is insufficient; Difference in Differences (DiD); Regression
Discontinuity Design (RDD); Propensity Score Matching (PSM)

References :

1. Kothari. C. R. (2004). Quantitative Techniques (2nd edition). Vikas Publishing House Pvt. Ltd.,
New Delhi
2. Forum (1994). Focus Group for Health Research. Health Transition Review, 4(1): 81-104.
3. Sharma, R. A. (2000). Essentials of Scientific Behavioural Research'. R. Lall book depot, Meerut
(UP).
4. Singh, K. (2007). Quantitative social research methods. Sage.
5. Bernard, H. R. (2017). Research methods in anthropology: Qualitative and quantitative
approaches. Rowman & Littlefield.
6. Kish, L. (1995). Survey Sampling.", John Wiley and Sons Inc., New York.
7. Lohr, S. (1999). Sampling design and analysis. Duxbury Press Pacific Grove. CA, 221, 249.
8. Lwanga, S. K., Lemeshow, S., & World Health Organization. (1991). Sample size determination
in health studies: a practical manual. World Health Organization.
9. Singleton R.A. and Straits B.C. (1999). Approaches to Social Research. Oxford University Press.
10. Young P. V. (1994). Scientific Social Surveys and Research (4th Edition). Prentice-Hall, New
York.
11. Tolley, E. E., Ulin, P. R., Mack, N., Robinson, E. T., & Succop, S. M. (2016). Qualitative
methods in public health: a field guide for applied research. John Wiley & Sons.
12. Bernard, H. R., Wutich, A., & Ryan, G. W. (2016). Analyzing qualitative data: Systematic
approaches. SAGE publications.
13. Green, J., & Thorogood, N. (2004). Qualitative methods for Health Research sage. New York.
14. Silverman, D. (2006). Credible qualitative research. Interpreting qualitative data, 271-314.

Course Code - MA-A-18

Course Name - Money, Banking and Financial Markets
Learning Outcome
(i) To acquaint the students with concept of money and debates related to its definitions
(ii) To help the students to understand the behaviour of interest rates.
(iii) To understand the banking structure and financial stability.
(iv) To understand the money bond and forex market and the interlinkages of these markets.

Module1: Introduction to Money, Banking, and Financial Markets

· Why Study Money, Banking, and Financial Markets?
· Evolution of the Payments System
· Interlinkages of Money, Banking and Financial Markets
· The Debate Relating to the Definition of Money
· Measuring Money and the Components of Money Stock in India
· Liquidity Theory- Guelry and Shaw Hypothesis

Module 2: Supply of Money

· Central Banks’s Balance Sheet
· Base Money, Its Control and Multiplier
· Factors that Determine the Money Supply
· Issues Regarding Endogenous and Exogenous Supply of Money
· Central Bank Digital Currency

Module 3: Demand for Money

· Quantity Theory of Money
· Keynes’s Liquidity Preference Theory
· Further Developments in the Keynesian Approach
· Friedman’s Modern Quantity Theory of Money
· Distinguishing Between the Friedman and Keynesian Theories
· Empirical Evidence on the Demand for Money

Module 4: Money and Inflation

· The Discretionary/Nondiscretionary Policy Debate
· Inflation Management in U.S., Euro Zone and India
· The Lucas Critique of Policy Evaluations
· Unanticipated and Anticipated Policy- New Classical and New Keynesian

Module 5: Understanding the behaviour of Interest Rates

· Interest Rates and Returns and Real and Nominal Interest Rates
· Determinants of Asset Demand
· Supply and Demand in the Bond Market
 · Supply and Demand in the Market for Money
· Term Structure of Interest Rates

Module 6: Banking Structure and the Management of Financial Institutions

· Basic Banking
· The Bank Balance Sheet
· Off-Balance-Sheet Activities
· General Principles of Bank Management- Liquidity, Asset, Liability and Capital Adequacy
management
· Banking Structure and Competition
· Shadow Banking
· Overview of Banking in India

Module 7: Financial Market

· Overview of Financial Markets
· Foreign Exchange Market
· Exchange rate regimes
· Exchange Rates in the Long and Short Run
· Covered and uncovered Interest Rate Parity Conditions
· Volatility Drivers, Pass Through and Intervention/sterilisation
· Interlinkages of Money, Bond and Foreign Exchange Market

References Books

· The Economics of Money, Banking and Financial Markets by Frederic S. Mishkin., Ninth Edition,
Pearson

· Macro Economics, by Rudiger Dornbusch, Stanley Fischer and Richard Startz, Twelfth Edition,
McGraw Hill

· Macro Economics,by N.Gregory Mankiew Ninth Edition, Worth Publishers

Module –wise References

Module 1
The Economics of Money, Banking and Financial Markets by Frederic S. Mishkin., Ninth Edition,
Pearson
Reserve Bank of India website : Annual Report, Monthly Bulletin, Hand book of Statistics on Indian
Economy, Weekly Statistical Supplement.
Concept note on Central bank Digital Currency, RBI press release October 07, 2022
Monetary Economics Institutions, theory and Policy, Suraj B. Gupta, S. Chand & Company.

Module 2

The Economics of Money, Banking and Financial Markets by Frederic S. Mishkin., Ninth Edition,
Pearson
Macro Economics, by Rudiger Dornbusch, Stanley Fischer and Richard Startz, Twelfth Edition,
McGraw Hill
Macro Economics,by N.Gregory Mankiew Ninth Edition, Worth Publishers.
Reserve bank of India, Annual Report
Reserve Bank of India, Report on Currency and Finance, March, 2006 Chapter VIII, Balance sheet of
Reserve Bank of India
Reserve Bank of India, Report on Currency and Finance, March, 2013 Chapter IV, Fiscal operations
and The Balance sheet of Reserve Bank of India

Module 3
The Economics of Money, Banking and Financial Markets by Frederic S. Mishkin., Ninth Edition,
Pearson
Macro Economics, by Rudiger Dornbusch, Stanley Fischer and Richard Startz, Twelfth Edition,
McGraw Hill
Macro Economics,by N.Gregory Mankiew Ninth Edition, Worth Publishers
Macro Economics, Policy and Practice, Fredric S. Mishkin, Pearson , second Edition
Module 4
The Economics of Money, Banking and Financial Markets by Frederic S. Mishkin., Ninth Edition,
Pearson
Fisher’s Theory of interest Rate and the notion of “Real”: A critique working paper no 483, The Levy
Economic Institute, 2006
Interest Rates in India: Status and Issues, June3, 1998, YV Reddy, Deputy Governor, RBI
Uncovered Interest Parity, IMF Working Paper, April 2006
Module 5
The Economics of Money, Banking and Financial Markets by Frederic S. Mishkin., Ninth Edition,
Pearson
Fifty years of Indian Banking through the lens of Basic Statistical Returns Speech by RBI deputy
governor ,October 28, 2022
A bank should be something one can bank upon, sppech by DG RBI April 28, 2017
Banking Beyond tomorrow, Speech by RBI Governor, July 22, 2022
Financial sector in the new decade, speech by RBI governor, March 25, 2021
Banking landscape in the 21st Century, speech by RBI governor, February24, 2022
Trend and Progress of banking, RBI
What is Shadow banking? Finance & Development, IMF June 2013, vol50, No 2
What is Shadow banking? IMF Working paper, WP?14/23 2014
Module 6
The Economics of Money, Banking and Financial Markets by Frederic S. Mishkin., Ninth Edition,
Pearson
Exchange Rate pass through in Emerging Economies, RBI Working paper01/2020,

Foreign Exchange Market & Cross border transection, speech by deputy governor RBI, June11, 2016

Exchange rate volatility in emerging markets, RBI Bulletin August 18, 2022

Managing exchange rate volatility in times of Covid-19, RBI Bulletin 2020

Major Episodes of Volatility in Indian foreign Exchange market in the last two decades ( 1993- 2013):
Central Bank response, RBI Occasional paper vol33, no 1 &2 , 2012

Further Sources:

RBI – Official Website

IMF official Website

CCIL official website

*****************

Course Code - MA-A-19

Course Name - PUBLIC ADMINISTRATION AND POLICY
Module 1 Indian Administration
Historical Context, Central Administration, State Administration, Field and Local
Administration, Citizen and Administration, Emerging Issues, Personnel Administration.

Module 2 Administrative Theory

The Nature of Public Administration, Public Organizations the Paradigms, Bureaucracy, Concepts
in Organization.

Module 3 Administrative Theory

Concepts and Approaches, Development Strategy and Planning, Planning Process, Bureaucracy and
Development, Decentralization and Development, Public Sector and Development

Module 4 Personnel Administration

Personnel Administration, Civil Services in India, Various Concepts in Organization

Module-5 Financial Administration

Financial Administration Basic and Objectives, Budgeting and Budgetary Systems,
 Resource Mobilization, Investment of Public Funds, Financial Control, Accounts and
Audit, Financial Administration of Public Enterprises, Local Finance

Module-6 Public Policy

Introduction to Public Policy, Policy Making Structures and Processes, Public Policy-Making Major
Determinants, Policy Implementation, Policy Intervention Case Study, Policy Impact and
Evaluation, Models of Policy Making
B OOK S AN D RE FE RE NCE S
1.Arora, R.K and Rajni Goyal (1995). Indian Public Administration. New Delhi: Wishwa
Prahashan. 2.Basu, Rumki (2017). Public Administration. New Delhi: Sterling Publications.
3.Bhattacharya, Mohit (2008). Horizons of Public Administration. New Delhi: Sterling
Publications. 4.Charabarty, Bidyut (2012). Public Administrations in a Globalising World. New
Delhi: Sage Publications.
5. Charabarty, Bidyut and Prakash Chand (2019). Public Policy : Concept, Theory and Practice.
New Delhi: Sage Publications.
6. Dwivedi, O.P (1994). Development Administration: From Underdevelopment to
Sustainable Development. UK: Macmillan.
7. Maheshwari, Shriram (1994). Indian Administration: An Historical Account. New Delhi:
Sterling Publications.
8. Prasad.D.Ravindra, Sivalinga Prasad and P. Satyanarayana (1980). Administrative Thinkers.
New Delhi: Sterling Publications.
9. Sapru, Radha Krishnan (2006). Administrative Theories and Management Thought. New
Delhi: PHI Learning Private Limited.

*************

Course Code - MA-A-20

Course Name - POLITICAL ECONOMY OF INDIA’S DEVELOPMENT
PREAMBLE
This course is designed to offer a broad structure of major issues, debates, dilemmas, relating to
the key trends, aspects, features, and the future of India’s economy. The course, which is oriented
in a political economy perspective, aims at imparting rich analytical insights and understanding
about India’s economy so that students can develop a strong sense of potential, possible, and
useful areas for further research on India’s development from political economy perspective

Module 1: Evolution of the debate over the role and ramifications of the British colonial rule
for India’s economy.

Module 2: India’s population/demography since Independence

Broad features, major trends, and regional dimensions

Module 3: Planning in India up to 1991

Historical roots, evolution of plan models, limitations and lessons.
Module 4: Poverty and inequality in India
Diversity of measures and estimates; debates over the trends in the post-liberalisation period;
poverty alleviation programmes and REGS and their efficacy; Self-Help Groups

Module 5: Reforms/Liberalisation in India

Its political economy and impact, roles of market, state, and planning in India’s development and its
future

READING LIST
Module 1:
a.Baran, P. (1957), Political Economy of Growth, Monthly Review Press.
b.Morriss, D. Morriss (1969), Indian Economy in the Nineteenth Century: A symposium, Delhi: Indian
Economic and Social History Association.
c.Tomlinson, B.R. (1993), Economy of Modern India 1860-1970, New Cambridge History,
Cambridge University Press.
2.- Roy, T. (2002), ‘Economic History and Modern India:
Redefining the Link’, Journal of - Economic Perspectives, 16(3).
a. Iyer, Lakshmi (2003), ‘Long-term Impact of Colonial Rule: Evidence from
India’ (mimeo), Boston: MIT.

b.Elingingsmith, D. and Williamson. J. (2004), ‘India’s de-industrialisation under British rule: New
Ideas, New Evidence’, Working Paper 10586, NBER, Cambridge, MA, USA.

Module 2:
a.Dyson, T. R. Cassen, and L. Visaria (2004), Twenty-First Century India, Oxford: Oxford University
Press.
b.Davis, K. (1951), Population of India and Pakistan, Princeton.

c.Dyson, T. and N. Crook (1984), India’s demography: Essays on contemporary population,

New Delhi: South Asian Publishers.

Module 3:
a.Bhagwati, J. and S. Chakravarty (1969), ‘Contributions to Indian Economic Analysis: A survey’,
American Economic Review 59 Supplement.
b.Chakravarty, S. (1998), Development Planning: The Indian Experience, Oxford: OUP.
c.Rudra, A. (1975), Indian Plan Models, Allied Publishers.
d.Bhagwati, J. and P. Desai (1970), India: Planning for Industrialisation, OUP.
e.Chakravarty, S. (1991), ‘Development Planning: a reappraisal’, Cambridge Journal of
Economics, 15, pp. 5-20.
f.Bardhan, P. (1998), Political Economy of Development in India, Oxford: Oxford University Press.

Module 4:
a.Deaton, A. and V. Kozel (ed) (2005): The great Indian poverty debate, New Delhi:
Macmillan.
b. India Development Reports, Oxford University Press.
c.Dubey, A. and R. Palmer-Jones (2005), ‘Poverty in India since 1983: new poverty counts and
robust poverty comparisons’, Artha Vijnana
 d.Patnaik, Utsa (2005), ‘Poverty and Neo-Liberalism’, Artha Vijnana, Sept-December.
e.Datt, G. and Ravallion, M. (1998), ‘Farm Productivity and Rural Poverty in India’, Journal of
Development Studies, Vol. 34, No. 4, pp. 62-85.
f.Ravallion, M, G. Datt, and S. Chaudhuri (1993), “Does Maharashtra Employment
Guarantee Scheme Guarantee Employment?: Effects of the 1988 Wage Increase”,
Economic Development and Cultural Change, Vol. 41, No. 2, pp. 251-275.
g.Sen, Abhijit (2002), ‘Agriculture, Employment and Poverty: Recent Trends in Rural India’ in:
Ramachandran, V.K. and M. Swaminathan (eds): Agrarian Studies: Essays on Agrarian Relations
in Less-Developed Countries, Kolkata: Tulika.

Module 5:
a.Bardhan (1999), Political Economy of Reforms in India, New Delhi:
NCAER. b.Basu, K. (ed) (2004), India’s Emerging Economy, New Delhi
Delhi: OUP. c.Dreze, J. and A. Sen (2003), Development and Participation,
Delhi: OUP.
d.Rakshit, M. (2004), ‘Some macroeconomics of India’s Reform Experience’, in Basu
e.Ahluwalia, M. (2002), ‘State-level performance under economic reforms in India’, In: Krueger,
A. (ed) (2002), Economic Policy Reforms and Indian Economy, New Delhi: OUP.
f.Chandrasekhar, C.P. and Jayati Ghosh, (2002), Market that failed: Decade of neo-liberal
reforms in India, New Delhi: Left Word Books.
g.Human Development Reports (various years).
h.DeLong, Bradford (2001) (mimeo), ‘India since Independence: An analytic
growth narrative’ http://www.j-bradford- delong.net
i. Frankel, F. (2005), India’s Political Economy: a gradual revolution, 1947-2004, Oxford
University Press.

************

Course Code – MA-B–01:

Course Name – Indian Agricultural Economics
Course Outcomes:
(i) The objective of this course is to provide a detailed treatment of issues in Indian agricultural
economics. (Module 1, 2 and 3)
(ii) To formalize students with policy issues that are relevant to Indian Agricultural Economics.
(Module 4, 5 and 6)
(iii) To enable them to analyze the issues, using basic macro-economic concepts, which will be
followed by micro-economic concepts in the follow up course farm management economics.
(Module 7 and 8)
(iv) Overall, the course helps students to appreciate the climate of agricultural economics in India
through various modules.

Module I
Scope and Subject matter of Agricultural Economics, Nature and Utility of Agricultural Economics,
Role and Importance of Agriculture in National Economy: share in National income, Source of
livelihood, Employment generation, Industrial development and trade and economic planning.
Module II
National Resource base of Indian agriculture; climate, land resources, water resources, India’s
position in World Agriculture, Comparison of India with other countries.
Module III
Agricultural Growth in India during pre and post-Independence period; contribution of area and
yields, sources of agricultural, levels and growth of crop yields, value of crop output, challenges
ahead.
Module IV
Factors responsible for agricultural development in India, Growth in use of technological factors in
production such as irrigation, seed, fertilizers, capital during last five decades

Syllabus: M.Sc. (Economics) w.e.f. AY 2022-23. (Approved by Board of Studies on 17-01-2023;

Academic Council on 6-02-2023)
Module V
Land Utilization Pattern, Changes in agrarian structure in India, Patterns of Cropping in different
regions, Shift in Cropping Pattern and its Implications on Food Security.
Module VI
Credit in Indian agriculture: purposes of loans, Sources of finance and changes in theses over the
plan period. Factors determining demand for credit. Recent policy changes in regard to farm credit
and their implications.
Module VII
Marketing: Characteristics of primary agricultural markets in India, Regulated markets and market
intervention, Marketing efficiency, Marketed and Marketable surplus, Marketing Channels and
Functionaries
Module VIII
Farm prices, Trends in relative prices of farm products, Supply response to prices in agriculture;
Behavior of marketed surplus, Price policy in India and its basis, Cost concepts
Suggested Readings:
● Acharya and Agarwal, 1987, Agricultural Marketing in India, Oxford & IBH Publishing
Company.
● Agricultural Research Data Book 2009, Indian Agricultural Statistics Research Institute, Pusa,
New Delhi 110 012
● Agricultural Statistics at a Glance 2010, Directorate of Economics and Statistics, Ministry of
Agriculture, Government of India, New Delhi.
● Bhalla, G. S. and Singh G., 2001, Indian Agriculture: Four Decades of Development, Sage
Publications.
Articles
● Acharya, S.S., 2007, “Agribusiness in India: Facts and Emerging Issues”, Agricultural
Economics Research Review, Vol. 20, Conference Issue, pp. 409-424
● Arora, V.P.S., 2010, Promoting Agribusiness in India, Indian Journal of Agricultural Marketing,
Vol. 24, No. 3, p. 1-31.
● Chand, R., 2001, Emerging Trends and Issues in Public and Private Investments in Indian
Agriculture: A Statewise Analysis, Indian Journal Of Agricultural Economics, Vol 56, No. 2,
April-June 2001
● Gulati, A. and Sharma, P.K., 1991, Government Interventions in Agricultural Markets : Nature
Impact and Implications, Journal of the Indian School of Political Economy, Vol 3, No. 2, April-
June, 1991.
● Joshi, P.K., Birthal, P.S. and Monot, N., 2006, Sources of Agricultural Growth in India: Role of
Diversification towards High Value Crops, MTID Discussion Paper No. 98, International Food
Policy Research Institute, Washington DC, USA
● Kannan, E. and Sundaram, S., 2011, Analysis of Trends in India’s Agricultural Growth, Working
Paper 276, ISEC, Bangalore
● Kumar, A., Singh, D.K. and Kumar, P., 2007, Performance of Rural Credit and factors Affecting
the Choice of Credit Source, Indian Journal of Agricultural Economics, Vol. 62, No. 3, pp. 297-
313.

Syllabus: M.Sc. (Economics) w.e.f. AY 2022-23. (Approved by Board of Studies on 17-01-2023;

Academic Council on 6-02-2023)
● Srivastava, R., Saxena, N.C. and Thorat, S., 2008, Land Institutions, Policy and Reforms in
India, in The Dragon and the Elephant, Agricultural and Rural reforms in China and India edited
by Ashok Gulati and Shenggen Fan, Oxford 2008.

Course Code - MA-B-02

Course Name - ECONOMICS OF LABOUR

PREAMBLE
This course provides an introduction to labour economics and surveys existing research on a
number of topics of current (if not perennial) interest in labor economics. The course is both
empirical and theoretical: for each of the topics in the program, we will study some theoretical and
some empirical papers, making links between the two. It will emphasise on labour market
institutions and government policies that regulate the labour market.

Students will develop an appreciation of the application of economic analysis to understanding the
functioning of labor markets. They will deepen their understanding of the theoretical concepts they
gained in principles of economics through an in-depth study of the behavior of households and
businesses in the labor market. Students will become familiar with publicly available sources of
labor market data and their use in understanding labor market conditions. Knowledge of the
distinctive institutional structure of labor markets in India will be obtained. Students will be able to
identify and understand the major theoretical and policy issues in labor economics.
Module 1: Supply
Static Labour-Leisure Choice – Effects of Social Programs and Income Taxes – The Life-
Cycle Model – Investments
in Human Capital – Collective Models of Household Labour Supply –
Occupational Choice

Module 2: Demand
Static Cost, Profit and Labour Demand Functions – Elasticity of Derived demand: the Hicks-
Marshall Rules –
Adjustment Costs and Dynamic Labour
Demand

Module 3: Equilibrium
Compensating Differences – Adam Smith – Evidence on Premium for Risky or Nasty Jobs –
Efficiency Wages – Segmented Labour markets – Migration

Module 4: Wage Structure

Industry Wage Differentials – Productivity and Real wages – Returns to Education – Signaling
– Pensions and Retirement – Training – Minimum Wage Laws

Module 5: The Distribution of Income

Earnings by Size – The Roy Model – Functional Distribution – Intergenerational Income Mobility

Module 6: Cyclical Fluctuations

Equilibrium Models of Employment Fluctuations – Real Wages over the Business Cycle

Module 7: Discrimination
Economic Effects of Prejudice: Theoretical Analysis – Wage Differentials by Race and Sex

Module 8: Unemployment
Definition and Measurement – Variations over time and Space – Job Search – Effects of
Unemployment Insurance

Module 9: Macroeconomics of Labour Market

Classical Analysis – Neoclassical Analysis – Keynesian Analysis – Dual and Segmented
Labour Market Theory – Marxian Alternative – Human Capital theory – Flexibility and
Institutions in Labour Market

Module 10: Unions

Objectives and Political Structure – Bargaining Theories – Relative Wage Effects – Strikes
– Union Growth and Decline – Unions in the Public Sector – Union-Oligopoly Models

Module 11: Labour Contracts

Employment Determination – Allocation of Risk – Compensation – Bonding; Tournaments; Incentive
Pay – Multi- tasking – Team Production – Relational Contracts – Career Concerns – Wages and
Promotions

Module 12: Regulations and International Labour Standards

Regulation of Labour – Experience of India vis-à-vis Other Countries – Entry and Product
Market Regulation – International Labour Standards – Comparative Analysis – International Trade
and Labour Markets

**********

BASIC READING LIST

Part A:
1. Indian Labour Market: Concepts, Definitions and Statistics
1. Sundaram, K, 2001, 'Employment- Unemployment Situation in the Nineties: Some Results
from the NSS 55th Round Survey', Economic and Political Weekly, P.931-40.
2. Pais, Jesim, 2002, 'Casualisation of Urban Labour Force: Analysis of Trends
in Manufacturing' Economic and Political Weekly, P.631-652.
3.Unni, Jeemol and Uma Rani, 2003, 'Employment and Income in the Informal Economy:
A Micro Perspective' in Renana Jhabvala, Ratna M Sudarshan and Jeemol Unni (eds.)
Informal Economy Centrestage: New Structures of Employment, Sage Publications, New
Delhi.

2. Classical View on Employment - Say's Law and Free Market Theory

1. Stephen R King and McConnell Rick M, 1993, Macro Economics, New York.
2. Robinson, Joan, R, 1936, 'Disguised Unemployment', The Economic Journal, June.

3. Keynesian View on the Labour Market

1. Keynes, J M, 1936, The General Theory of Employment, Interest and Money,
Macmillan, London.

2. Chapple, Simon, 1995, 'The Kaleckian Origins of the Keynesian Model', Oxford
Economic Papers, 47(3): 525-537.
3. Banerjee, P C, 1960, 'Full Employment and Low Full Employment in a
Developing Economy', Indian Journal of Labour Economics, 2(4): 227-243.
4. Rakshit, Mihir, 1983, The Labour Surplus Economy: A Neo-Keynesian Approach,
Macmillan India Limited, New Delhi.

Extra Readings:
5.Bhaduri, Amit, 1984, The Economic Structure of Backward Agriculture, Macmillan India
Limited, New Delhi. (Chapter 7: Class Relations and the Pattern of Accumulation in
Backward Agriculture).
6.J C H Fei and G Ranis, 1964, Development of the Labour Surplus Economy: Theory
and Policy, Richard D Irwin, Inc, Homewood Illinois.

4. Neo-Classical Labour Market: Labour Supply, Labour Demand and Equilibrium

1. Ashenfelter, O. and Layard, R. The Handbook of Labor Economics, Volumes 1 & 2,
North- Holland, 1986; Volume 3A, 3B & 3C, 1999
2. Borjas, G. (1996): Labor Economics, New York: McGraw-Hill Companies
3. Killingsworth, M.(1983): Labor Supply, Cambridge University Press, Chapters 1,2 & 7.
4. Hamermesh,D.(1993): Labor Demand, Princeton University Press, Chapters 2 and 3.
5. Seth, V K and S C Aggarwal, The Economics of Labour Markets: Policy Regime Changes
and The Process of Labour Adjustment in the Organised Industry in India. New Delhi: Ane Books,
2004.

Extra Readings:
6. Ben Fine, Labour Market Theory: A Constructive Reassessment. London and New
York: Routledge, 1998.
7. Joyce P Jacobsen and Gilbert L Skillman, Labour Markets and Employment Relationships:
A Comprehensive Approach. London: Blackwell Publishing, 2004.
8. Kaufman, B. E. and Hotchkiss, J. L. (1999) The Economics of Labor Markets, (fifth edition).
Fort Worth: TX: Dryden Press.
9. Bardhan, Pranab, 1986, Land, Labour and Rural Poverty: Essays in Development
Economics, Delhi: Oxford University Press. Chapters 1 and 5.

5. Dual Labour Markets and Segmented Labour Market Theory

1. Lewis, Arthur, 1954, 1954, Economic Development with Unlimited Supplies of Labour,
The Manchester School.
2. D Jorgenson, 1961, ‘The Development of a Dual Economy’ Economic Journal.

3. J C H Fei and G Ranis, 1966, ‘Agrarianism, Dualism and Economic Development’ in Irma
Adelman and E Thorbecke (eds.) The Theory and Design of Economic Development, John
Hopkins Press, Baltimore.
4. M P Todaro, 1969, ‘A Model of Labour Migration and Urban Unemployment in
Less Developed Countries’, American Economic Review.
5. J R Harriss and M P Todaro, 1970, ‘Migration, Unemployment and Development: A
Two- Sector Analysis’ American Economic Review.
6. Basu, K, 1984, The Less Developed Economy: A Critique of Contemporary Theory,
New Delhi: Oxford India Paperbacks. (Chapter 5: The structure of Dual Economy; Chapter 6:
Migration and Unemployment).
7.A Dixit, 1973, ‘Models of Dual Economies’ in J A Mirrlees and N H Stern, Models of Economic
Growth, Macmillan, London.
8. Tokman, V E, 1978, ‘An Exploration into the Nature of Informal-Formal Sector
Relationships’, World Development, 6 (9/10): 1065-75.
9. Moser, Caroline, M, 1978, ‘Informal Sector or Petty Commodity Production: Dualism or
Dependence in Urban Development’, World Development, 6 (9/10): 1041-64.
10. Chaudhuri, T D, 1989, ‘A Theoretical Analysis of the Informal Sector, World Development,
17 (3): 351-55.
11. Gibson, B and B Kelley, 1994, ‘A Classical Theory of the Informal Sector’ The
Manchester School, Vol.LXII, No.1.
12. Davies, Rob, 1979, ‘Informal Sector or Subordinate Mode of Production’, in Ray Bromley
and Chris Gerry (ed.) Casual Work and Poverty in the Third World Cities, John Wiley and Sons.
13. Loveridge, R and A L Mok, Theories of Labour Market Segmentation: A Critique,
Martinus Nijhoff Social Science Division, The Hague, (Chapter 3: Segmented Labour Markets).
14. Rodgers, G, 1993, ‘The Creation of Employment in Segmented Labour Markets: A
General Problem and its Implications in India’, Indian Journal of Labour Economics, 35(1): 32-47.
15. Ben Fine, Labour Market Theory: A Constructive Reassessment. London and New
York: Routledge, 1998.

Extra Readings
1. Godfrey, Martin, ‘Rural- Urban Migration in a Lewis Model Context, The Manchester School.
2. Patel, U and P Srivatsava, 1996, ‘Macroeconomic Policy and Output Comovement:
The Formal and Informal Sectors in India’, World Development, 24 (12): 1915-23.

6. Marxian Labour Theory of Value

1. Ben Fine, Labour Market Theory: A Constructive Reassessment. London and New
York: Routledge, 1998.
2. Custers, P, 1997, Capital Accumulation of Women’s Labour in Asian Economies, Vistaar
Publications, New Delhi. (Chapter 5: Home Based Women Labourers in the Garment Industry
in.

**********

Course Code- MA-B-16

Course Name- ADVANCED MICROECONOMICS
Learning Outcome:
(i) To acquaint the students with General Equilibrium Theory. (Module I)
(ii) To familiarize the students with the concept of incomplete information game and the
resulting Bayesian Nash Equilibrium
(iii) To enumerate the concept of intertemporal choice of consumption and savings, arbitrage
theory. (Module III)
(iv) To develop an understanding of the basic principles and applications of Microeconomics. Various
applications of microeconomics have taken place during the last forty years. This module will be taught
based on presentation and discussions basically by students. References are attached separately as
articles particularly for this module. It intends to improve students’ analytical skills and ability to solve
problems, which will be useful in several other areas of economics. (Module IV)
Module I:- Theory of General Equilibriums
● Consumer Theory: Preference relation; Utility function; Indirect utility function;
● Expenditure function; Consumer welfare, Revealed preferences
● Producer Theory: Production function; Cost function; Profit function
● Introduction–Partial Equilibrium Vis-à-vis General Equilibrium Approach.
● Exposition of Basic Concepts.
● An Elementary General Equilibrium model – the Robinson Crusoe Economy.
Pure Exchange Economy – the Edgeworth Boxes, Pareto Optimality, Contract Curve,
Core, Walras Law, Walras Equilibrium. First and Second Fundamental Theorem of
Welfare Economics
● Second Level: Refreshment of Analytic and Scarcity Properties of Preference
Relation. A More Elaborate exposition of the Exchange Economy: Commodities,
Agents, Preferences, Utility Functions, Prices, Demand and Excess Demand
Functions and their Properties.
● Formal Definition of Allocation, Pareto Optimal Allocation, Individually Rational Pareto
Optimal Allocation, Coalition, and Core.
● Walras Equilibrium, its Relation with Core.
● Formal Proof of First Fundamental Theorem.
● Gross Substitutability.
● Price Adjustment Process.
● Brower’s Fixed Point Theorem. Existence of Walras Equilibrium and Uzawa Equivalence
Theorem.
● Social Welfare Maximization and its relation with Pareto Optimality.
● General Conditions for Uniqueness, and Discussion of Stability – Tatonnement Process.
● General Equilibrium over Time – Arrow Debreu Scarcity (introduction only). Re-
switching and Reverse Capital Deepening.
Module II: - Games of Incomplete Information
• Static and dynamic games of incomplete information; mechanism design; screening and
signalling
Syllabus: M.Sc. (Economics) w.e.f. AY 2022-23. (Approved by Board of Studies on 17-01-2023;
Academic Council on 6-02-2023)
● Introduction to Sub-Game Perfection

● Static Bayesian Games and Bayesian Equilibrium–Theory and Examples.

Module III: - Consumption and Saving
● Revision of Uncertainty and expected utility theory
● Time Separability
● Exponential Discounting
● The Demand for Saving, Precautionary Saving with an Endogenous Risk
● Arbitrage Theory, Definition of Arbitrage, Asset Pricing through Replicating Portfolio
● Asset Pricing
● Fundamental Theorem of Asset Pricing
● Introduction to Interest Rate Risk
● Introduction to Credit Risk.
Module IV: Applications of Microeconomic Principles
The principal-agent model and incentive contracting
● Economics of Innovation
● Bargaining, Measurement of Productivity and Efficiency
● Search Theory
● Health Economics
● Hedonics and Non-market evaluation
● Brief Exposure to Mechanism Design and Revelation Principle
 Suggested Readings:
Books:
1. Broadway, R.W. and Bruce, N. (1984), Welfare Economics, Basil Blackwell, London.
2. Debreu, G. (1977), Theory of Value, An Axiomatic Analysis of Economic Equilibrium,
Yale University Press.
3. Ellickson, Bryan (1993) Competitive Equilibrium; Theory and Applications, Cambridge
University Press.
4. Kreps, D, “A Course in Microeconomic Theory”, Princeton University Press, 1990
5. Kreps, David (1988), Notes on theory of choice, West view Press.
6. Mas-Colell, Andrew Michael., Whinston, D. And Green, Jerry R. (1995), Microeconomic
Theory,
Oxford University Press.
7. Osborne, MartinJ and Rubinstein, Ariel (1994), A course in Game Theory, MIT Press.
8. Perloff.J. 2019, Microeconomics, 7th Edition, Pearsom Education.
9. Varian, Hal R. (1992), Microeconomic Analysis, 3rd.Edition, International Student Edition,
W. W.
Norton and Company.
Articles
1. Antonelli, C. (2009). The economics of innovation: from the classical legacies to the
economics of complexity. Economics of Innovation and New Technology, Vol 18(7), pp.
611–646.
Syllabus: M.Sc. (Economics) w.e.f. AY 2022-23. (Approved by Board of Studies on 17-01-2023;
Academic Council on 6-02-2023)
2. Heshmati, A. (2003). Productivity Growth, Efficiency, and Outsourcing in
Manufacturing and Service Industries. Journal of Economic Surveys, Vol 17(1), pp.
79–112.
3. Latruffe, L. (2010). Competitiveness, Productivity, and Efficiency in the Agricultural
and Agri-Food Sectors. OECD Food, Agriculture and Fisheries Papers.
4. Lowe, J. G. (1987). The measurement of productivity in the construction industry.
Construction Management and Economics, Vol 5(2), pp. 101–113.
● Part 1: Lippman, S. A., & McCall, J. J. (1976). The Economics of Job Search: A Survey.
Economic Inquiry, Vol 14(2), pp. 155–189.
● Part 2: Lippman, S. A., & McCall, J. J. (1976). The Economics of Job Search: A Survey.
Economic Inquiry, Vol 14(3), pp. 347-388.

West Bengal; Chapter 6: Wage Slavery among Women Garment Workers under the Factory
System in Bangladesh.)

7. Flexibility and Institutions in the Labour Market

1. Bose, A J C, 1996, ‘Subcontracting, Industrialisation and Labouring Conditions in India:
An Appraisal’, Indian Journal of Labour Economics, 39(2): 145-62.
Holmes, John, 1986, ‘The Organisation and Locational Structure of Production Sub
2.contracting’ in Allen J Scott and Michael Storper (edited) Production, Work and Territory: The
Geographical Anatomy of Industrial Capitalism, Allen and Unwin, Boston.
3. Ghose, Ajit, 1995, ‘Labour Market Flexibility and the Indian Economy’, Indian Journal of
Labour Economics, 38(1): 55-62.
4. Bhaduri, Amit, 1996, ‘Employment, Labour Market Flexibility and Economic Liberalisation
in India’, Indian Journal of Labour Economics, 39(1): 13-22.
5. Mazumdar, Dipak, 1997, ‘Labour Markets, Trade Patterns and Workers’ Living
Standards’, Economic and Political Weekly, 32(9): 453-74.
6. Anant, T. C. A. (2000). Reforming the labour market. in: Gangopadhyay, S.,
Wadhwa, W.(Eds.), Economic Reforms for the Poor, Konark, Delhi.

8. Wage Determination
1. Basu, K, 1984, The Less Developed Economy: A Critique of Contemporary Theory, New Delhi:
Oxford India Paperbacks. (Chapter 8: Efficiency Wage Hypothesis; Chapter 7: The Rural-Urban
Wage Gap).
2. J E Stiglitz, 1976, ‘The Efficiency Wage Hypothesis, Surplus Labour and Distribution of
Income in LDCs’, Oxford Economic Papers.
3. R.J. Willis, "Wage Determinants," Chapter 10 in The Handbook of Labor Economics
4. Kennan, J. "The Elusive Effects of Minimum Wages," Journal of Economic Literature, 1995,
33, pp1949-1965.
5. Divakaran, S, 1996, ‘Gender Based Wage and Job Discrimination in Urban India’, Indian
Journal of Labour Economics, 39(2): 235-50.
6. Pushpangadan, K, 1993, ‘Wage Determination in a Casual Labour Market: The Case of
Paddy Field Labour in India’, Indian Journal of Labour Economics, 36(1): 59-65
7. Neumark, D. and W. Wascher "Employment Effects of Minimum and Subminimum Wages:
Panel Data on State Minimum Wage Laws," Industrial and Labour Relations Review, 1992, 46,
55- 81.
8. Brown, C. "Minimum Wage Laws: Are they overrated? Journal of Economic Perspectives,
1988, 2(3), 133-145.
9. Brown, Charles, Curtis Gilroy, and Andrew Kohen , “The Effect of the Minimum
Wage on Employment and Unemployment”, Journal of Economic Literature, (June 1982).

9. Unemployment
1. E Malinvaud, 1977, The Theory of Unemployment Reconsidered, Basil Blackwell, Oxford.
2. Mukhopadhyay, S, 1983, ‘Unemployment, Job Search and the Optimal Waiting Time’,
Indian Journal of Labour Economics, 25(3): 198-217.

Part B:
10. Economics of Trade Unions
Compulsory Readings:
1. Booth, A.L. (1995). The economics of the trade union Cambridge University Press. Chapters
3, 4, 5, 7, and 8.
2. Dowrick, S. (1989). Union-Oligopoly Bargaining. Economic Journal, 99:1123-1142.
3. Ashenfelter, O. and G. E. Johnson (1969), ‘Bargaining Theory, Trade Unions, and
Industrial Strike Activity’, American Economic Review, 59 (1), 35-49.

Supportive Readings:
1. Bronars, Stephen, Donald Deere and Joseph Tracy. 1994. “The Effects of Unions on
Firm Behavior: An Empirical Analysis Using Firm-Level Data,” Industrial Relations, 33(4):
426-451.
2. Bronars, Stephen, Donald Deere. 1994. “Unionization and Profitability: Evidence of
Spillover Effects,” Journal of Political Economy, 102(6): 1281-1288.
3. Machin, Steven and Sushil Washwani. 1991. “The Effects of Unions on Organisational
Change and Employment,” Economic Journal, 101(407): 835- 855.
4. Kraft, K. (1998). The codetermined firm in oligopoly. Economics Letters, 61(2):195-201
5. Majumdar, S. and Saha, B. (1998). Job security, wage bargaining and duopoly outcomes.
Journal of International Trade and Economic Development, 7(4):389-403.
6. Datt R. (2000), “Regional Patterns of Industrial Relations in India: Changing Scenario
after Liberalization,” Indian Journal of Labour Economics, 43(4), 1061-1098.
7. Chaudhuri, K. and Pal, R. (2005) An Empirical Analysis of Industrial Disputes: Evidence
from Indian States (Co-author K. Chaudhuri), Journal of Quantitative Economics, New Series Vol
3, No 1
Extra Readings:
1. Schmidt, C. M., A. Stilz and K. F. Zimmermann (1994): "Mass Migration, Unions,
and Government Interventions," Journal of Public Economics, 55, 185- 210.
2. Calmfors, Lars and John Driffill. 1988. “Macroeconomic Effects of Centralized Wage Setting,”
Economic Policy, 6: 13-61.
3. McDonald, I. M. and Solow, R. M. (1981). Wage bargaining and employment.
American Economic Review, 71(5):896-908.
4. Oswald, A. J. (1982). Trade unions, wages and unemployment: What can simple models
tell us? Oxford Economic Papers, 34(3):526(45).
5. Cramton P., M. Gunderson and J. Tracy (1999), “The Effect of Collective Bargaining
Legislation on Strikes and Wages,” Review of Economics and Statistics, 81(3), 471-487

11. Labour Contracts

Compulsory Readings:
1. Laffont, J. and Martimort, D. (2002), The Theory of Incentives: The Principal-Agent
Model, Princeton University Press
2.Holmstrom, Bengt, and Paul Milgrom. (1991). "Multitask Principal-Agent Analyses: Incentive
Contracts, Asset Ownership, and Job Design."Journal of Law, Economics, and Organization
7:24- 52.
3. Lazear, Edward. (2000). "Performance Pay and Productivity." American Economic Review
90: 1346
4. Lazear, Edward, and Sherwin Rosen. (1981). "Rank-Order Tournaments as Optimum
Labor Contracts." Journal of Political Economy 89: 841-864.
5. Gibbons, Robert, and Kevin J. Murphy. 1992. "Optimal Incentive Contracts in the Presence
of Career Concerns: Theory and Evidence." Journal of Political Economy 100: 468-505.

6. Gibbons, Robert, and Michael Waldman. 1999. "A Theory of Wage and Promotion
Dynamics Inside a Firm." Quarterly Journal of Economics 114: 1321-58.
Supportive Readings:
1. Fairburn, James, and James Malcomson. (2001). "Performance, Promotion, and the Peter
Principle." Review of Economic Studies 68: 45-66.
2. Levin, Jonathan. (2001). "Relational Incentive Contracts." American Economic Review 93
(3): 835-847.
3. Bhattacharjee, D. (2005). The effects of group incentives in an Indian firm: Evidence
from payroll data. Labour, 19(1): 147-173.
4. Shearer, B. (2004). Piece rates, fixed wages and incentives: Evidence from a field experiment.
Review of Economic Studies, 71(2): 513-34.
Extra Readings:
1. McCue, Kristin. (1996). "Promotions and Wage Growth." Journal of Labor Economics 14:
175- 209.
2. Holmstrom, Bengt. (1982). "Moral Hazard in Teams." Bell Journal of Economics 13:324-40.
3. Holmstrom, B. and P. Milgrom. (1990). "Regulating Trade Among Agents." Journal
of Institutional and Theoretical Economics, 146(1): 85-105.
4. Topel Robert. (1991) “Specific Capital, Mobility, and Wages: Wages Rise with Job Seniority”
Journal of Political Economy 99(1) 145-76

12. Regulation and

Standards Compulsory
Readings:
1. Botero, J., Djankov, S., Porta, R. L., Lopez-De-Silanes, F., and Shleifer, A. (2004). The
regulation of labour. The Quarterly Journal of Economics, 119(4): 1339-1382
2. Besley, T. and Burgess, R. (2004). Can Labour Regulation Hinder Economic
Performance? Evidence from India. The Quarterly Journal of Economics, 119(1): 91-134
3.Bertrand, M. and Kramarz, F. (2002). Does entry regulation hinder job creation?
Evidence from the French retail industry. The Quarterly Journal of Economics, 117(4):
1369-1413
 4.Basu, K., Fields, G., and Debgupta, S. (2000). Alternative labor retrenchment laws and
their effect on wages and employment: A theoretical investigation with special reference to
developing countries. CAE Working Paper No. 00-
11. http://ssrn.com/abstract=247727.
5. Klapper, L., Laeven, L., and Rajan, R. (2004). Business environment and firm entry:
evidence from international data. NBER Working Paper No. 10380.
6. Nickell, S. and Layard, R. (2000). Labor market institutions and economic performance. in
Orley Ashenfelter and David Card (eds), Handbook of Labor Economics, Amsterdam: North
Holland.
7. Johnson, George and Frank Stafford, "The Labor Market Implications of International
Trade," in Orley Ashenfelter and David Card, eds., Handbook of Labor Economics, Volume 3,
North- Holland,1999.
8.Basu, K. (Ed), Horn, H. (Ed), Roman, L. (Ed), Shapiro, J. (Ed) (Feb, 2003) :
International Labor Standards: History, Theory, and Policy Options Blackwell
Publishers
9. Roy, Chowdhury Supriya, 2003. ‘Public Sector Restructuring and Democracy: The State,
Labour and Trade Unions in India.’ Journal of Development Studies, 39(3):29-35.

Supportive Readings:
1. Anant, T. C. A. (2000). Reforming the labour market. in: Gangopadhyay, S., Wadhwa, W.(Eds.),
Economic Reforms for the Poor, Konark, Delhi.

********

Course Code MA-B-03:

Course Name- INTERNATIONAL RELATIONS
Objectives: This course acquaints students with the core concepts, processes, and issues of
international relations such as power, the international system, balance of power, hegemony, conflict,
cooperation, integration, globalization, interdependence, dependence, regimes etc., The course
identifies the key actors in international relations including states, intergovernmental organizations,
non-governmental organizations, transnational corporations, global civil society, and individuals, and
attempts to understand how these actors interact to give substance to international relations. The
course aims to demonstrate knowledge of the key dimensions, events and processes of international
relations within their historic and economic context, such as the features and effects of globalizing
market capitalism, growing environmental problems, and human rights.

Module 1: Introduction
1.1 Introducing the discipline, its nature and scope
1.2 International Relations Theory- Realism, Liberalism, Marxist approach

Module 2: Brief History of World Politics post-1945

2.1 Rise of the Super Powers- the USA and USSR
2.2 Cold War-ideological and strategic bipolarity; End of Cold War
2.3 Post 1991 World Order- Unipolarity, US hegemony
2.4 Contemporary scenario- decline of USA and rise of the rest

Module 3: International Political Economy

3.1 Introduction to the study if international political economy-evolution of international economic
relations in trade, finance, and economic development
3.2 The workings of the international order from the point of view of political economy, MNCs and
TNCs
3.3 Examination of effects of national policies and international collaboration of public and private
international financial institutions, in particular management of international debt crisis, economic
policy coordination, and the role of international lender of last resort.

Module 4: The Politics of International Trade and Finance

4.1 Theories of trade and protectionism, focusing both on relations among advanced industrial
nations and on relations between developed and developing countries. standard and strategic trade
theory, nontariff barriers to trade, export-led growth strategies, regional trade agreements, and the
future of the WTO.
4.2 The welfare and distributional aspects of international trade and finance as they relate to the
politics of economic policy making; globalization in historical perspective; origins and
consequences of trade policy; exchange-rate arrangements; international capital flows; currency
crises; economic development

Module 5: International Law and Organizations

5.1 International Economic and Trade law, International Environmental Law,International Nuclear
and space law,International Diplomatic law, International Human Rights Law: Migrant Population.,
Conflict between international legal obligations and domestic politics of citizenship, immigration,
asylum, and human trafficking.
5.2 The theory and function of IOs (UN, NATO, EU, World Bank, IMF) in promoting international
cooperation in security, peace-keeping, trade, environment, and human rights and challenges faced
by them.

Module 6: - Special and Contemporary Issues in International Relations:

6.1 Growing Regional Cooperation in International Relations
6.2 Terrorism
6.3 Nuclear Proliferation
6.4 Climate Change
6.5 Human Rights and Gender Justice

Module 7: INDIA’S FOREIGN POLICY

7.1 Making of India’s Foreign Policy: - Foundations of Indian foreign policy and its evolution
since 1947; objectives, strategies of engagement – bilateralism and multilateralism
7.2 India’s Nuclear and Security Policies
7.3 India’s Interface with its Neighbors
7.4 Foreign Policy of India towards South Asian Countries, position of India in SAARC, India’s
bi- lateral engagements with the South Asian countries, i.e Pakistan, Bangladesh, Nepal, Bhutan,
Sri Lanka, Maldives, Afghanistan.
7.5 India and the Major Powers – USA, EU, Russia , Japan, and China.
7.6 India's approach to major global issues; Disarmament –arms control - cross border terrorism,
environmental position, and Human right

References:-
1. Baylis, John and Steve Smith(ed) Globalization of World Politics- An Introduction to
international relations OUP ,2014
2. Goldstein, JoshuaS and Pevehouse.Jon C,2010 Internationa Relations, Pearson
3.Gilpin, Robert; Global Political Economy, Princeton University Press,2001
4.Harihara Das, Principles of International Law and Organization(New Delhi: Vikas Publishing
House Pvt. Ltd., 1994).
5.J. N. Dixit,Indian Foreign Policy and its Neighbours, New Delhi: Gyan Publishing, 2001.
6.Jawaharlal Nehru, India's Foreign Policy: Selected Speeches, September1946-April 1961New
Delhi: Publications Division, Ministry of Information and Broadcasting, Govt. of India, 1961
7.Klein, Naomi (2014), This Changes Everything: Capitalism vs. The Climate Change, New
York: Simon & Schuster
8. Margaret Karns and Karen Mingst, eds.,International Organizations: The Politics and Processes
of Global Governance Lynne Rienner Publishers, 2009.

9. Mohan, C Raja (2003), Crossing the Rubicon:The Shaping of India’s New Foreign Policy, New
Delhi: Penguin Books
10. Muni, S. D and Iftikhar A. Lodhi (2010), The Emerging Dimensions of SAARC, New Delhi:
Foundation Books.
11. Muni, S.D and Girijesh Pant (2005), India’s Search for Energy Security: Prospects for Co-
operation with Extended Neighborhood,New Delhi: Observer Research Foundation.
12. Nehru, Jawaharlal (1934), Glimpses of World History, London: Penguin Books.
13. Prasad, Vijay (2009), The Darker Nations: A Biography of the Short-lived Third World, New
Delhi: LeftWords.

Articles
1. Harshe, Rajen (2006), “Culture, Identity and International Relations”, Economic and
Political Weekly, 41:37,3945-3951.
2. Kahler, Miles (1998), “Rationality in International relations” International Organisation,
52:4, pp.919-941.
3. Tellis, Ashley J (2014), “The geopolitics of the TTIP and the TPP”, Adelphi Series, 54:450.
4. Wright, Thomas (2015), “The Rise and Fall of the Unipolar Concept”, The Washington Quarterly,
34:7,pp. 7-24.

**********
 Course Code - MA-B-04
Course Name – International Economic Institutions
Objective: The objective of the course is to introduce students to the various international economic
institutions like WTO, World Bank, IMF, IFC, OECD and their roles and functions in monitoring
international flow of capital, goods and services. Also, the course aims at unfolding the international
political dimension of these institutions.

Unit 1: Introduction to the Study of International Economic Institutions

Understanding the need for International Economic Institutions. Political Economy of the
International economic institutions. Various approaches of institutional economics.

Unit 2: WTO
2.1 Objectives
2.2 Major emerging issues relating to all the agreements
2.4 Brief review of all the important agreements

Unit 3: The World Bank Group

3.1 The IBRD ́s aims and its financial structure.
3.2 The IBRD’s resource-drawing policy.
3.3 The IBRD’s loan policy.
3.4 The IBRD and the environment.
3.5 The International Finance Corporation (IFC).
3.6 The International Development Agency (IDA)
3.7 The Multilateral Investment Guarantee Agency (MIGA)
3.8 The World Bank’s evolving role in the post-Cold War era.
3.9 The Multilateral Investment Guarantee Agency

Unit 4: The International Monetary Fund (IMF).

4.1 The International Monetary System and the International Monetary Fund (IMF)
4.2 IMF features: the quota system, the Articles of Agreement, membership conditions.
4.3 The IMF’s policies and its instruments. Special Drawing Rights (SDR), stand-by
arrangements, extended facility, enlarged access
4.4 The IMF’s role in the international economy: oversight of exchange-rate stability, debt
rescheduling, balance-of-payment assistance.
4.5 The IMF’s efforts to battle corruption and bad governance.
4.6 The IMF and its handling of the international debt problem.
4.7 Origins and growth of foreign debt in the seventies.
4.8 The institutional response to the debt crisis: debt renegotiation and rescheduling following the
IMF’s lead.
4.9 The 1997 East Asia crisis. Causes and action taken.
Unit 5: The Organization for Economic Cooperation and Development (OECD)
5.1 Objectives and institutional make-up of the OECD
5.2 OECD activities and functions
5.3 The OECD and development: The Committee of Aid for Development

Unit 6: Multilateral Regional Banks: ADB, BRICS Bank (NDB),

SAARC Bank Reading List:

1. Thummuluti Siddahiah, (2011), International Financial Management, Pearson
2. Apte, P. G., (2012) International Financial Management, 6th Edition, Tata Mcgraw-hill, New
Delhi 3.van Meerhaeghe, (1998), International Economic Institutions, Seventh edition, Springer,
US.

*********

Course Code- MA-B-07

Course Name - POPULATION STUDIES
Course Outcomes: The course will enable the students:

(i) To understand the basic tenets of demography as well as key demographic issues and
illustrations in Indian context (Module 1, 2 & 8)
(ii) To comprehend the developments in demographic concepts like Fertility, Mortality and
Migration. (Module 3, 4 & 5)
(iii) To apply quantitative and the qualitative methods to study the characteristics of human
population as well as the population processes. (Module 1 & 6)
(iv) To analyse health care markets by studying the role of government and market failures.
(Module 7)
(v) To evaluate the interplay between demographic processes and economic
development. (Module 5 & 7)

Module 1: Introduction and Sources of Data

Evolution of demography as a scientific discipline
Nature and scope of demography and changes in it over the time
Multi-disciplinary nature of demography and its links with other social science
disciplines Basic demographic concepts
Components of population change
Sources of Data – Population Census, Sample Registration System, Vital registration
System, National Sample Survey, Large sample demographic and health surveys
Quality of demographic data
Demographic transition

Module 2: Population Size, Growth and Characteristics

Overview of the size and growth of world population by regions and Size and growth of India’s
population
Composition by age and sex
Age pyramids
Determinants of age and sex structure and its economic and social implications
Population momentum
Demographic window of opportunity
Population ageing
Social and economic implications of population ageing
Population sex ratios and its variation; Child sex ratio, Sex ratio at birth, Sex ratio of elderly
Changing patterns of sex ratio in India, North-south divide, ‘Missing women’

Module 3: Fertility and Nuptiality

Concepts and measurements of cohort and period fertility
Fertility levels and differentials in developed and developing countries
Fertility levels and differentials in India
Intermediate variables affecting fertility
Intergenerational flow of wealth
Nuptiality – Concept and analysis of marital status, Singulate mean age at marriage; Trends in age
at marriage and its significance

Module 4: Mortality
Concepts and measurement of mortality
Standardization of death rates; Life tables
Levels, trends and determinants of mortality in modern times
Causes of death and epidemiological transition
Differentials in mortality
Infant and child mortality in India - levels, trends, and determinant
Maternal mortality
Life tables
Model life tables

Module 5: Migration
Concepts and measurement of migration
Theories of migration related to internal migration
Causes and consequences of internal migration
Differentials in migration
Trends and patterns of internal migration in India
Urbanization – growth and distribution of rural-urban population in developed and developing
countries
Urbanization in India - its determinants and consequences

Module 6: Population Projection

Importance of population projection
Component method of population projection
Ratio method of population projection
Projection of population at the sub-national level

Module 7: Population and Development

How is population related to economic development – stimulus, unrelated, detrimental?
Optimists, pessimists and revisionists; Optimum population
Theory of Demographic transition – Notestein, Libenstein, Becker, Easterlin, Caldwell; Cleland and
Wilson models
Population and environment
Population and Health

Module 8: Population Policy in India

Evolution of population policy in India – the shift in policy from population control to family
welfare, to women empowerment
Coercion versus cooperation as elements in population policy
From population control to reproductive health; Safe motherhood
National Population Policy 2000

Reading List: Population Studies

1. Basu, A.M. (1989), Is Discrimination in Food Really Necessary for Explaining Sex
Differentials in Childhood Mortality? Population Studies, 43:193-210.
2. Bhat, M. (2002), Returning a Favour: Reciprocity between Female Education and Fertility,
World Development, 39(10).
3. Bhat, M. (2002), On the Trial of Missing Indian Females, Economic and Political
Weekly, 37(51)(52): 5105-518, 5244-5263.
4. Bhat, M. and F. Zavier (2003), Fertility Decline and Gender Bias in Northern India,
Demography, 40(4):637-657.
5. Bende, A.A. and T. Kanitkar (2000), Principles of Population Studies, Mumbai:
Himalayan Publishing House.
6. Birdsall, N. (1988), Economic Approaches to Population Growth. In H. Chenery, and T.
Srinivasan (eds.), Handbook of Development Economics, North Holland.
7. Birdsall, N., A.C. Kelley, and S.W. Sinding (2001), Population Matters, Oxford: Clarendon
Press. 8.Brokerhoff, M.P. (2000), An Urbanising World. Population Bulletin, Volume 55,
Number 3.
Washington: Population Reference Bureau.
9. Cleland, J. (2001). The Effects of Improved Survival on Fertility: A Reassessment. In R.A.
Bulatao. and J. Casterline (eds), Global Fertility Transition, Population Council, Supplement to
Population and Development Review, Volume 27, 2001
10. Cleland, J. and Wilson, C. (1987), Demand Theories of the Fertility Transition: An
Iconoclastic View, Population Studies, 41:5-30.
11. Cleland, J. and G. Kaufmann (1998), Education, Fertility, and Child Survival: Unravelling the
Links. In A.M. Basu and P. Aaby (eds.), The Methods and Uses of Anthropological Demography,
Oxford: Clarendon Press.
12. Croll, E. (2000), Endangered Daughters: Discrimination and Development in Asia,
London: Routledge.
13. Dasgupta, P. (2000). Population and Resources: An Exploration of Reproductive
and Environmental Externalities, Population and Development Review, 26(4):643-689.
14. Dyson, T. and Moore (1983), On Kinship Structure, Female Autonomy, and
Demographic Behaviour, Population and Development Review, 9(1):35-60.
15. Das Gupta, M. (1987), Selective Discrimination against Female Children in Rural
Punjab, Population Development Review, 13(1):77-100.
16. Drèze, J. and M. Murthi (2001), Fertility, Education, and Development: Evidence from
India. Population and Development Review, 27(1).
17. Dyson, T., R. Cassen and L. Visaria (2004), Twenty First Century India: Population,
Economy, Human Development and the Environment, New Delhi: Oxford University Press.
18. Hinde, A. (1998), Demographic Methods, New York: Oxford University Press.
19. Jain, A.K. (1985), Determinants of Regional Variations in Infant Mortality in Rural
India, Population Studies, Volume 39. Pp. 407-424.
20. Jain A.K., and P. Visaria (1988), Infant Mortality in India: Differentials and Determinants,
New Delhi: Sage Publications.

21. Lee, R.D. (1986), Malthus and Boserup: A Dynamic Synthesis, In: D. Coleman and R.S.
Schofield (eds), The State of Population Theory: Forward from Malthus, Oxford: Basil Blackwell.
22. Mason, K.O. (1986), The Status of Women: Conceptual and Methodological Issues
in Demographic Studies, Sociological Forum, 1(2):284-300.
23. McFalls Jr, J.A. (1998), Population: A Lively Introduction, Population Bulletin, Volume
53, Number 3. Washington: Population Reference Bureau
24. McNay, K. et al. (2003), Why are Uneducated Women in India Using Contraception: A
Multilevel Analysis, Population Studies, 57(1):21-40.
25. Mosley, W.H. and L.C. Chen (1984), An Analytical Framework for the Study of Child Survival
in Developing Countries. Population and Development Review, Supplement to Volume 10. Pp. 25-
45. 26.Murthi, M., A-C. Guio, J. Drèze (1995), Mortality, Fertility and Gender Bias in India: A
District- level Analysis, Population and Development Review, 21:745-782.
27. Nag, M. (1988), A Framework for the Study of Proximate Determinants of Infant Mortality in
Less Developed Countries. In Jain A.K., and P. Visaria (Eds.), Infant Mortality in India:
Differentials and Determinants, New Delhi: Sage Publications.
28. Newell, C. (1988), Methods and Models in Demography, New York: John Wiley and Sons.
29.Pandey, A. M.K. Joe, N.Y. Luther, D. Sahu and J. Chand (1998), Infant and Child Mortality in
India, National Family Health Survey Subject Reports. Number 11. Mumbai: International Institute
for Population Sciences and Honolulu: East-West Programme on Population.
30. Preston, S., P. Heuveline and M. Guillot (2003), Demography: Methods and Modeling
Population Processes, Oxford: Blackwell Publishers.
31. Sen, Amartya (1999), Development as Freedom, New York: Knopf.
32. Shryock, H.S. and J.S. Siegel (1976), The Methods and Materials of Demography, New
York: Academic Press.
33. Srinivasan, K. (1999), Basic Demographic Techniques and Applications, New Delhi:
Sage Publications.
34. Sudhir, A. and J. Morduch (1998), Poverty and “Population Problem”, In M. Livi-Bacci and G.
De Dsantis (eds.), Population and Poverty in Developing World, Oxford: Clarendon Press.
35. Population Reports (1983), Migration, Population Growth, and Development. Population
Reports, Series M, No. 7
36. Maryland: Population Information Programme, The Johns Hopkins University.
37.Population Reference Bureau (2000), Population Handbook (4th International Edition)
Washington: Population Reference Bureau
38. Pressat, R. (1972), Demographic Analysis, Chicago: Aldine-Atherton
39. Visaria, P. (1997), Urbanisation in India: An Overview. In Gavin W.J, and P. Visaria (Eds.),
Urbanisation in Large developing Countries: China, Indonesia, Brasil, and India, Oxford,
England: Clarendon Press.
40. Weeks, J.R. (1996), Population: An introduction to Concepts and Issues, Belmont:
Wadsworth Publishing Company.
41. United Nations (2001), World Urbanisation Prospects: The 1999 Revision, New York:
United Nations, Department of Economic and Social Affairs, Population Division.
42. Bhende, A., and Kanitkar T. (1996): Principles of Population Studies (Seventh Edition), Himalaya
Publishing House, Bombay.
43. Jacob S. Siegel and David a. Swanson (2004): The Methods and Materials of
Demography, Second Edition, Chapters 1, 2, 3, 7, 9,10, Elsevier Science, USA.
44. John Weeks (2005): Population: An Introduction to Concepts and Issues, Wordsworth Learning.
th
Singapore 9 edition.
45. United Nations, (1973): The Determinants and Consequences of Population Trends, Vol. I,
Population Studies, No. 50, Chapter VII, New York.
46.United Nations, World Population Ageing, 1950-2050
47. David G. Mandelbaum, (1974), Human Fertility in India: Social Components and
Policy Perspectives, University of California Press, Berkeley.
48. Guilmoto, C. Z. and S. Irudaya Rajan, 2001. "Spatial Patterns of Fertility Change in
Indian Districts", Population and Development Review, 27, 4, 713-738 15.
49. Gray, R et al (eds.), (1993), Biomedical and demographic determinants of reproduction, Oxford
University Press, Oxford.
50. Van De Ka, (1996), “Anchored Narratives: Fifty Years of Research into the Determinants
of Fertility” Population Studies, 50,1.
51. Sydney H. Coontz, (1968), Population Theories and the Economic Interpretation, Routelage,
London.
52. United Nations, (1999), Below Replacement Fertility, Population Bulletin of the UN, Special
Issue Nos. 40/41, Department of Economic and Social Affairs, UN, New York.
53. United Nations, (1973), Determinants and Consequences of Population Trends, Vol. 1, pages 96-
104, UN, New York.
54. Siegel Jacob S., David A. Swansn (Eds.). (2004). The Methods and Materials of
Demography. Second Edition. Chapter 9,Pp.191-210, New York: Elsevier Academic Press,
Chapter 3, Pp.301-340.
55. Smith, P.C., (1978): Indices of Nuptiality: Asia and Pacific, Asian Pacific Census Forum, Vol.
5(2) 56.Anderson, Siwan and Debraj Ray. 2010. “Missing women: Age and disease,” Review of
Economic Studies 77: 1262–1300.
57.F. Ram and K.B. Pathak (1998): Techniques of Demographic Analysis, Himalaya Publishing
 house, Bombay(Chapters 2 & 3).
58.Klasen, Stephan. 1994. “Missing women reconsidered,” World Development 22(7): 1061–1071.
59.Klasen, Stephan and Sebastian Vollmer. 2013. Missing Women: Age and Disease: A
Correction (No. 133). Courant Research Centre: Poverty, Equity and Growth-Discussion Papers.
60.Klasen, Stephan and Claudia Wink. 2002. “A turning point in gender bias in mortality? An
update on the number of missing women,” Population and Development Review 28(2): 285–312.
61.Mosley, W. H. and L. C. Chen (1984): Analytical framework for the study of child survival
in developing countries, Population and Development Review 10 (Supplementary Copy).
62.Preston, S. H., Patrick Heuveline and Michel Guillot (2001): Demography: Measuring
and Modeling Population Process, Blackwell Publishers, Oxford, UK (Chapters 2, 3 & 4).
63.Sen, Amartya K. (1989). “Women’s survival as a development problem,” Bulletin of the
American Academy of Arts and Sciences 43: 14–29.
64.———. 1990. “More than 100 million women are missing,” New York Review of Books 20: 61–
66.
65.———.1992 “Missing women,” British Medical Journal 304: 587–588.
66.Shryock, Henry S. Jacob Siegel and Associates (1980): The Methods and Materials of
Demography, Vol. 2, Fourth printing (revised), US Department of Commerce. Washington
DC, pp. 389-393, Chapter 14.
67.A.J. Culyer and J. Newhouse (2000), Handbook of Health Economics, North-Holland,
Amsterdam, (edited volume)
68. Victor Fuchs (1982), Economic Aspects of Health, The University of Chicago Press,
Chicago (edited volume)
69. Tim Ensor and Sophie Witter (2001), Health economics in low income countries: adapting to the
reality of the unofficial economy, Health Policy, Vol. 57, pp. 1-13.

Course Code - MA-B-08

Course Name - INDIAN POLITICAL SYSTEM

PREAMBLE

This course would introduce students to the general studies, especially to the Indian government
system and the Indian Polity. As students are expected to be aware about the Indian Constitution and
the overall political discourse in India. This course would make them well equipped for the various
competitive exams.

Module 1: The Indian Constitution

Salient Features of Indian Constitution; Dual Citizenship for NRIs; Criticism of Indian Constitution;
Effectiveness of India’s Constitutional Framework; Preamble: approach to Liberty, Equality and
Justice; Secularism: Failures and challenges; Fundamental Rights; Directive Principles of State
Policy; Fundamental Duties.

Module 2: Constitutional Provisions and Institutional Functions

 Indian Federal System: Structure and Process; Center State Legislative Relations; Centre-State
Administrative Relations; Center State Financial Relations; Politics of Planning vis-a-vis State
Autonomy; Politics of President’s Rule in the State; The Party System and Political Dynamics of
Indian Federalism.

Module 3: Indian Parliament

Indian Parliament: Role and Functioning; Working of Parliament; Office of the President; Prime
Minister: Office and Powers; Union Council of Ministers.

Module 4: Party Systems and Elections

Nature of Indian Party System; National Parties; Role of Regional and State Parties; Pressure Groups
in Indian Politics; The Election Commission: Organization, Functions and Roles; Electoral Reforms in
India; Elections and Political Participation.

Module 5: Judiciary and Democratic Process

Supreme Court in India; Judicial Review in India; Judicial Activism in India; Crime and Politics:
The Nexus; National Integration.

Reading List:
1)Fadia B.L. (2010), India Government and Politics, 8th Edition, Sahitya Bhavan Publications
2)Durga Das Basu, Introduction to the Constitution of India, 21st Edition, LexisNexis
Publications.
Course Code – MA-B-09
Course Name - -LINEAR ECONOMICS – I

Syllabus: M.Sc. (Economics) w.e.f. AY 2018-19. Approved by Board of Studies 21-3-2018; Academic
Council 28-3-2018
Preamble
This course exposes students to developments in economic theory that have been inspired by the
classical economists like Adam Smith and David Ricardo. The course begins by an exposition of the
fallacies in the neo-classical theories of value and distribution and the limitations of standard
general equilibrium theory. It then proceeds to cover input-output analysis and its empirical
applications. Finally it covers alternatives to the neo-classical theories such including the Kaldor
Pasinetti theory of income distribution and the Sraffa and Von Neumann models. Finally an
alternative general equilibrium model is covered which determines prices, outputs, growth and
income distribution.
Model 1
Critique of Mashall’s theory of supply based on the law of variable proportions. Critique of the
marginal productivity them. Critiques of neo-classical production functions.
Module 2
Economy as a Circular Flow. Static closed and open input output models. Hawkins-Simon
conditions. Construction of Input-Output tables. Some applications. Dynamic input-output
analysis.
Module 3
The Von Neumann model. The Sraffa system and its properties Standard Commodity. Reduction
to dated labour.
Module 4
Alternative theories of income distribution. The Kaldor Pasinetti model and its developments.
Module 5
Closure for the Sraffa system. An alternative general equilibrium model and its empirical
relevance.

Course Code – MA-B-10

Course Name – Linear Economics – II
Course Outcome : The course will enable the students :
(v) Incorporation of Money and Finance in General Equilibrium theory (Module 1)
(vi) Proof of Essentiality and non-neutrality of modern money (Module 2 and 3)
(vii) Construction of Keynesian model with deflationary gap (Module 4)
(viii) Multi-country general equilibrium model of exchange rates (Module 5)
(ix) Trade equilibrium with many countries and commodities (Module 6)
Module 1 : Critique of trade models and exchange-rate theories
 Critique of the Heckscher-Olin-Samuelson model of trade
 Non-viability of reduction of reality to 2 x 2 x 2 models.
 Critique of exchange rate theories
Module 2 : Frank D. Graham’s theory of multi-country multicommodity trade
 Introducing the theory of Frank D. Graham
 Extensions of the theory to tariffs, intercountry transfers and taxation.
 Trade in intermediate and final goods.
Module 3 : Keynesian Revolution
 Money in general equilibrium theory: Patinkin’s findings of Arrow, Clower, Hahn, Ostroy.
 Keynesian Counter revolution.
Module 4 : Building the Keynesian critique of the Classical theory
 The Static Keynesian economy with money.
 Critique of IS-LM model.
 Possibility of unemployment equilibrium. Fiscal Policy. General ineffectiveness of monetary
policy instruments including TARP, etc.
Module 5 : Integrated model of the level and structure of spot interest rates.
 Dichotomy in the theories of the level and theories of the term structure of interest rates.
 Integrated model of the level and structure of spot interest rates.
Module 6 : Dynamic Keynesian economy
 The dynamic Keynesian economy with money and several financial assets.
 General disequilibrium.

Syllabus: M.Sc. (Economics) w.e.f. AY 2022-23. (Approved by Board of Studies on 17-01-2023;

Academic Council on 6-02-2023)
 Role of fiscal and monetary policies.
Reading List:
Books:
Graham, F. D. (1948), The theory of International Values; Princeton University Press
Parchure, Rajas (1994), The Theory of International Values, Wiley Eastern, New Delhi
Article:
Garegnani (1983) “Two Routes to Effective Demand: Comment on Kregel”, in J. A. Kregel (ed).,
Distribution, Growth and International Economic Relations, London: Macmillan
Hahn, F.H. 1965. “On Some Problems of Proving the Existence of an Equilibrium in a Monetary
Economy,” in The Theory of Interest Rates, ed. F.H. Hahn and F.P.R. Brechling, 126-135, London;
Macmillan.
Hahn, F.H. 1971. “Equilibrium with transaction costs”. Econometrica 39, 417-39.
Hahn F. H. (1977) "Keynesian Economics and General Equilibrium Theory: Reflections on Some
Current Debates" in Microeconomic Foundations of Macroeconomics ed. G. C. Harcourt.
Hahn (1978) "On non-Walrasian Equilibria" Review of Economic Studies, 45, 1-17.
Hicks, J.R. 1937. “Mr Keynes and the Classics: A Suggested Interpretation”, Econometrica, 5, 147-
159.
Keynes, J.M. 1936. The General Theory of Employment, Interest and Money, London: Macmillan.
Keynes, J.M. 1937. “The General Theory of Employment” Quarterly Journal of Economics, 51,
209-223.
Kurz H. D. (2016) Economic Thought, A Brief History, New York: Columbia University Press.
Kurz, M. 1974. “Equilibrium in a finite sequence of markets with transactions cost”. Econometrica
42, 1-20.
Ostroy, J.M. and Starr, R.M. 1974. “Money and the Decentralization of Exchange”, Econometrica,
42, 1093-1113.
Pigou, A.C. 1943. “The classical stationary state”. Economic Journal, 53, 343-51.
Posner R. (2011) “Walras, Keynes and the ‘Great Recession’, in Bridels P. (ed.) General
Equilibrium Analysis. A Century after Walras, New York: Routledge.
Shapley, L. and Shubik, M. 1977. “Trade using one commodity as a means of payment”. Journal of
Political Economy 85, 937-68.
Smith, A. 1776, ‘The Wealth of Nations ’ , J.M. Dent, London.
Sraffa P. (1960). “Dr. Hayek on Money and Capital”, The Economic Journal, 42, 42-63.
Starr R. (2010). “Sequence Economies” in The New Palgrave, Dictionary of Economics, Palgrave
Macmillan.
Tobin J. ‘A General Equilibrium Approach to Monetary Theory’ reprinted in J. Tobin, Essays in
Economics, 1971, vol.I, 322-338, Amsterdam: North-Holland.

Syllabus: M.Sc. (Economics) w.e.f. AY 2022-23. (Approved by Board of Studies on 17-01-2023;

Academic Council on 6-02-2023)
Sraffa, P. (1962) “The Laws of Returns under Competitive Conditions,” Economic Journal, Vol.36.
Sraffa, P. (1932a) “Dr. Hayek on Money and Capital,” Economic Journal, Vol.52.
Sraffa, P. (1932b) “Rejoinder”, Economic Journal, Vol.52.

26. Lee, R.D. (1986), Malthus and Boserup: A Dynamic Synthesis, In: D. Coleman and R.S.
Schofield (eds), The State of Population Theory: Forward from Malthus, Oxford: Basil Blackwell.
27. Mason, K.O. (1986), The Status of Women: Conceptual and Methodological Issues
in Demographic Studies, Sociological Forum, 1(2):284-300.
28. McFalls Jr, J.A. (1998), Population: A Lively Introduction, Population Bulletin, Volume
53, Number 3. Washington: Population Reference Bureau
29. McNay, K. et al. (2003), Why are Uneducated Women in India Using Contraception: A
Multilevel Analysis, Population Studies, 57(1):21-40.
30. Mosley, W.H. and L.C. Chen (1984), An Analytical Framework for the Study of Child Survival
in Developing Countries. Population and Development Review, Supplement to Volume 10. Pp. 25-
45. 26.Murthi, M., A-C. Guio, J. Drèze (1995), Mortality, Fertility and Gender Bias in India: A
District- level Analysis, Population and Development Review, 21:745-782.
29. Nag, M. (1988), A Framework for the Study of Proximate Determinants of Infant Mortality in
Less Developed Countries. In Jain A.K., and P. Visaria (Eds.), Infant Mortality in India:
Differentials and Determinants, New Delhi: Sage Publications.
30. Newell, C. (1988), Methods and Models in Demography, New York: John Wiley and Sons.
29.Pandey, A. M.K. Joe, N.Y. Luther, D. Sahu and J. Chand (1998), Infant and Child Mortality in
India, National Family Health Survey Subject Reports. Number 11. Mumbai: International Institute
for Population Sciences and Honolulu: East-West Programme on Population.
37. Preston, S., P. Heuveline and M. Guillot (2003), Demography: Methods and Modeling
Population Processes, Oxford: Blackwell Publishers.
38. Sen, Amartya (1999), Development as Freedom, New York: Knopf.
39. Shryock, H.S. and J.S. Siegel (1976), The Methods and Materials of Demography, New
York: Academic Press.
40. Srinivasan, K. (1999), Basic Demographic Techniques and Applications, New Delhi:
Sage Publications.
41. Sudhir, A. and J. Morduch (1998), Poverty and “Population Problem”, In M. Livi-Bacci and G.
De Dsantis (eds.), Population and Poverty in Developing World, Oxford: Clarendon Press.
42. Population Reports (1983), Migration, Population Growth, and Development. Population
Reports, Series M, No. 7
43. Maryland: Population Information Programme, The Johns Hopkins University.
37.Population Reference Bureau (2000), Population Handbook (4th International Edition)
Washington: Population Reference Bureau
46. Pressat, R. (1972), Demographic Analysis, Chicago: Aldine-Atherton
47. Visaria, P. (1997), Urbanisation in India: An Overview. In Gavin W.J, and P. Visaria (Eds.),
Urbanisation in Large developing Countries: China, Indonesia, Brasil, and India, Oxford,
England: Clarendon Press.
48. Weeks, J.R. (1996), Population: An introduction to Concepts and Issues, Belmont:
Wadsworth Publishing Company.
49. United Nations (2001), World Urbanisation Prospects: The 1999 Revision, New York:
United Nations, Department of Economic and Social Affairs, Population Division.
50. Bhende, A., and Kanitkar T. (1996): Principles of Population Studies (Seventh Edition), Himalaya

Publishing House, Bombay.

51. Jacob S. Siegel and David a. Swanson (2004): The Methods and Materials of
Demography, Second Edition, Chapters 1, 2, 3, 7, 9,10, Elsevier Science, USA.
52. John Weeks (2005): Population: An Introduction to Concepts and Issues, Wordsworth Learning.
th
Singapore 9 edition.
53. United Nations, (1973): The Determinants and Consequences of Population Trends, Vol. I,
Population Studies, No. 50, Chapter VII, New York.
46.United Nations, World Population Ageing, 1950-2050
56. David G. Mandelbaum, (1974), Human Fertility in India: Social Components and
Policy Perspectives, University of California Press, Berkeley.
 57. Guilmoto, C. Z. and S. Irudaya Rajan, 2001. "Spatial Patterns of Fertility Change in
Indian Districts", Population and Development Review, 27, 4, 713-738 15.
58. Gray, R et al (eds.), (1993), Biomedical and demographic determinants of reproduction, Oxford
University Press, Oxford.
59. Van De Ka, (1996), “Anchored Narratives: Fifty Years of Research into the Determinants
of Fertility” Population Studies, 50,1.
60. Sydney H. Coontz, (1968), Population Theories and the Economic Interpretation, Routelage,
London.
61. United Nations, (1999), Below Replacement Fertility, Population Bulletin of the UN, Special
Issue Nos. 40/41, Department of Economic and Social Affairs, UN, New York.
62. United Nations, (1973), Determinants and Consequences of Population Trends, Vol. 1, pages 96-
104, UN, New York.
63. Siegel Jacob S., David A. Swansn (Eds.). (2004). The Methods and Materials of
Demography. Second Edition. Chapter 9,Pp.191-210, New York: Elsevier Academic Press,
Chapter 3, Pp.301-340.
64. Smith, P.C., (1978): Indices of Nuptiality: Asia and Pacific, Asian Pacific Census Forum, Vol.
5(2) 56.Anderson, Siwan and Debraj Ray. 2010. “Missing women: Age and disease,” Review of
Economic Studies 77: 1262–1300.
57.F. Ram and K.B. Pathak (1998): Techniques of Demographic Analysis, Himalaya Publishing
house, Bombay(Chapters 2 & 3).
58.Klasen, Stephan. 1994. “Missing women reconsidered,” World Development 22(7): 1061–1071.
59.Klasen, Stephan and Sebastian Vollmer. 2013. Missing Women: Age and Disease: A
Correction (No. 133). Courant Research Centre: Poverty, Equity and Growth-Discussion Papers.
60.Klasen, Stephan and Claudia Wink. 2002. “A turning point in gender bias in mortality? An
update on the number of missing women,” Population and Development Review 28(2): 285–312.
61.Mosley, W. H. and L. C. Chen (1984): Analytical framework for the study of child survival
in developing countries, Population and Development Review 10 (Supplementary Copy).
67.Preston, S. H., Patrick Heuveline and Michel Guillot (2001): Demography: Measuring
and Modeling Population Process, Blackwell Publishers, Oxford, UK (Chapters 2, 3 & 4).
68.Sen, Amartya K. (1989). “Women’s survival as a development problem,” Bulletin of the
American Academy of Arts and Sciences 43: 14–29.
69.———. 1990. “More than 100 million women are missing,” New York Review of Books 20: 61–
66.
70.———.1992 “Missing women,” British Medical Journal 304: 587–588.
71.Shryock, Henry S. Jacob Siegel and Associates (1980): The Methods and Materials of

Demography, Vol. 2, Fourth printing (revised), US Department of Commerce. Washington

DC, pp. 389-393, Chapter 14.
67.A.J. Culyer and J. Newhouse (2000), Handbook of Health Economics, North-Holland,
Amsterdam, (edited volume)
70. Victor Fuchs (1982), Economic Aspects of Health, The University of Chicago Press,
Chicago (edited volume)
71. Tim Ensor and Sophie Witter (2001), Health economics in low income countries: adapting to the
reality of the unofficial economy, Health Policy, Vol. 57, pp. 1-13.

**********
Course Code – MA-B-11
Course Name - Social Exclusion and Inclusion Policy
Course Outcome:
(i) To develop an understanding of the origin, basis and different forms of Social Exclusion
(Module I)
(ii) To study the diverse theoretical perspectives on discrimination, social choice and welfare.
(Module II)
(iii) To understand the social order of different caste and concepts associated with the exclusion
of geographically excluded population. (Module III)
(iv) To formulate policy paradigms for their inclusion in the economy. (Module IV)
(v) To create awareness about the social excluded people from an economic and social policy
perspective as well as to analyze social inclusive policy for them. (Module V)
(vi) To study the institutional role in affirmative action and reservation policies for inclusive
policies (Module VI)
Module I: Understanding Social Exclusion (10 hours)
 Conceptualising Social Exclusion, Origin and Basis of Social Exclusion
 Forms of Social Exclusion like Religion, Race, Caste, Gender, Ethnicity, Region, Culture,
Language, Disability, Migrants and Refugees
 Excluded Groups and Socio-Economic Disparities: Scheduled Castes, Tribals, Minorities,
Women, Old Aged and the Physically Challenged;
 Contemporary Discussions on Social Exclusion
Module II: Theoretical Perspectives on discrimination (12 hours)
 Economics of Discrimination; Marxist and Liberal Perspective
 Capability Approach and Theories of Poverty
 Economic Justice, Economic Freedom and Welfare
 Social Choice and Human Rights Approach
Module III: Social Exclusion of Caste, Tribe and Minority (8 hours)

Syllabus: M.Sc. (Economics) w.e.f. AY 2022-23. (Approved by Board of Studies on 17-01-2023;

Academic Council on 6-02-2023)
 Indian society: Social Order in Caste, Tribe and Minority; Caste System as an Institution of
Exclusion
 Exclusion of Tribes: Nation-State Formation, Industrialisation, Urbanisation, Globalisation
etc
 Dimensions of Exclusion for Marginality: Development, Issues of Identity and Human
Rights Violation
Module IV: Dimensions of exclusions and inclusive policy perspectives (8 hours)
 Scheduled Castes, Minorities and Affirmative Action;
 The Question of Reservation and Affirmative Action – Constitutional Provisions and
Contemporary Debates with reference to the Mandal Commission Report and the Sachar
Committee Report
 Labour Market Discrimination, Wage Differentials, Problems of Employability, Social
Security and Pension
 Access to Finance, Micro Finance and Financial Inclusions of the Excluded People
Module V: Physically challenged and Old Aged Social Exclusion (10 hours)
 Physically Challenged and Social Exclusion: Constitutional Provisions, National and State
Policies and Social Security Policy;
 Community Support, Awareness and Assimilation Activities;
 Aging: Social and Economic Exclusion; Gerontology Outlook in Policy Framework:
Government Laws and Welfare Programmes
Module VI: Institutions and Inclusive Policies (12 hours)
 Inclusive Policy Agenda: United Nations Organisation, Constitutional Provisions, Nodal
Government Agencies and Planned State Interventions
 Human Rights Framework, Affirmative Action and Reservation Policies
 Designing Innovative Strategies for Inclusive Policies
Suggested Readings:
1. Sen, A. (2000), ‘Social Exclusion: Concept, Application, and Scrutiny -*/&, Asian
Development Bank, Manila.
2. Byrne, David (2003), ‘Social Exclusion: Issues in Society’, Open University Press, 2005.
3. Lal, A.K. (2005) (Ed.), ‘Social Exclusion: Essays in Honour of Dr. Bindeshwar Pathak’, New
Delhi, Concept.
4. Hills John, Le Grand, J. and Piachaud, D (2002) (eds.), ‘Understanding Social
Exclusion’,Oxford University Press
5. Saith, R. (2001), ‘Social Exclusion: The Concept and Application to Developing
Countries’,Queen Elizabeth House Working Paper Series 72, Queen Elizabeth House,
Oxford.
6. Jordan, Bill (1996), ‘A Theory of Poverty and Social Exclusion’, Polity Press.

Syllabus: M.Sc. (Economics) w.e.f. AY 2022-23. (Approved by Board of Studies on 17-01-2023;

Academic Council on 6-02-2023)
7. Breman, Jan (2002), ‘The Labouring Poor in India: Patterns of Exploitation, Subbordination, and
Exclusion’, Oxford University Press.

*********

Course Code – MA-B-12 :

Course Name - Business Analytics

COURSE OUTCOMES:
1. To develop a proficiency in analysing data using different techniques. (Module 1 to 8)
2. To learn how to build and apply predictive models to forecast future outcomes. (Module 2
and 3)
3. To gain knowledge of business outcomes. (Module 1 to 8)
4. To apply optimization techniques to solve business problems. (Module 1 to 8)
5. To understand the role of business analytics in strategic decision making. (Module 3 and 5)
6. To learn skills and techniques for the application of R. (Module 4,6 and 7)
Module 1 - The need for Analytics and Understanding Analytics
● Decision Making – Heuristics and Biases
● The need for analytics
● Impact of analytics on business
● Being analytically competitive
● The difference between analytics and BI
● Introduction to the business Analytics model
● Types of analytics
● Models and algorithms in Analytics
● The Analytics Methodology
Module 2 - Tool and Tech Landscape

Syllabus: M.Sc. (Economics) w.e.f. AY 2022-23. (Approved by Board of Studies on 17-01-2023;

Academic Council on 6-02-2023)
● A review of technology used in data storage, data processing, and data science
● Popular tools used in Data Science and when to use each
Module 3 - Descriptive Analytics with excel and Tableau
● An introduction to Tableau
● Using descriptive statistics in analysis and reporting
● Advanced reporting with Tableau
Module 4 - R programming
● An introduction to R
● Importing and exporting data in R
● Data Manipulation with R
● Advanced Data Manipulation with R
● Data Visualization with R
Module 5 - Data Pre-processing
● Data Exploration and Assessment for Data Science
● Identifying and dealing with noise in Data
● Preparing data for Data Science Modelling
Module 6 - Predictive Models in R
● Linear Regression Models and their applications
● Logistics Regression Models and Their applications
● Time Series Forecasting
Module 7 - ML Models in R
● Clustering Algorithms and application
● Decision Tree Algorithms and applications
● Random Forest Algorithms and applications
Module 8 - Storytelling with Data
● Communicating data science results
● Effective presentation skills
● Using Data visualizations for storytelling
REFERENCES:
1. Provost, F., & Fawcett, T. (2013). Data science for business: What you need to know about data
mining and data-analytic thinking. O'Reilly Media.
2. Davenport, T. H., & Harris, J. G. (2017). Competing on analytics: Updated, with a new
introduction. Harvard Business Press.
3. Evans, J. R., & Paquette, L. (2019). Business analytics: Methods, models, and decisions.
Pearson.

Syllabus: M.Sc. (Economics) w.e.f. AY 2022-23. (Approved by Board of Studies on 17-01-2023;

Academic Council on 6-02-2023)
4. Shmueli, G., Bruce, P. C., & Patel, N. R. (2019). Data mining for business analytics: Concepts,
techniques, and applications in R. John Wiley & Sons.
5. Witten, I. H., Frank, E., Hall, M. A., & Pal, C. J. (2016). Data mining: Practical machine
learning
tools and techniques. Morgan Kaufmann.
6. Kelleher, J. D., Mac Namee, B., & D'Arcy, A. (2015). Fundamentals of machine learning
for
predictive data analytics: Algorithms, worked examples, and case studies. MIT Press.
7. Few, S. (2019). Show me the numbers: Designing tables and graphs to enlighten. Analytics Press.
8. Cairo, A. (2019). The truthful art: Data, charts, and maps for communication. New Riders.

Course Code – MA-B-13

Course Name – Insurance Economics
Course Outcome : The Course will enable the students:
(i) To know the conceptual inputs related to Insurance Environment in India (Module I)
(ii) To understand implications of insurance legislation in India (Module II)
(iii) To have insurance product knowledge – both life and non life for all classes of business
so as to succeed in techno marketing assignment (Module III)
(iv) To apply principles of economics and related mathematics to insurance(Module IV & V)
(v) To get knowledge of underwriting acceptances and risks measurement including pricing
(Module VI)
(vi) To have awareness of new techniques, products and processes of Insurance which will be
covered for remaining updated in the industry (Module VII)
Module I : Introductory Inputs (7 Hrs.)
 Insurance concepts like, Historyand Advantages of insurance , Insurance Environment,
Contribution to economy, Latest Trends.
 Insurance value chain PESTLE Analysis, H’ubiverse’s Theory of Human Life Value.
 Principles Of Insurance like Indemnity , Utmost good faith, Insurable interest and proximate
cause.
 Basic terms like Risk, Perils, Hazard, Spread of Risk, Co insurance, Reinsurance etc.
Module II : Insurance Legislation (7 Hrs.)
 Like Insurance Act, Indian Contracts Act, IRDAI Act.
 Latest IRDAI Regulations, Investment Norms for insurers, Organizational Structure of
insurance companies.
Module III : Types Of Insurance Products (9 Hrs.)

Syllabus: M.Sc. (Economics) w.e.f. AY 2022-23. (Approved by Board of Studies on 17-01-2023;

Academic Council on 6-02-2023)
 Life Insurance policies like ULIPs, Double Endowment, Term Assurance, Survival benefits,
death cover, Group Insurance Policies.
 Key man Insurance, Whole life policies, types of Annuities, Life & Death Annuities,
Immediate & Deferred Annuities.
 Various types of Health Insurance policies including Mediclaim & OMP, Group Health
Insurance Policies for Corporates etc. critical illness, OPD covers, corona kavach etc.
 Various types of Nonlife Policies like Fire, Motor , Marine , Liability , PA , Engineering etc.
Module IV : Principles of Economics (6 Hrs.)
 Approach of Mathematics and basic actuarial concepts like theory of probability, law of
large numbers.
 Mortality, Morbidity, Risk Based underwriting, Maximum & Minimum probable loss.
 Control of expenses, aiming at profitability, claim minimization measures, contingency risks
v/s investment risks, sharing & Spreading risks.
Module V : Mathematics Of Insurance (9 Hrs.)
 Special features of Insurance accounting, Investment function in insurance companies,
present value methods, compounding effect, perpetuities.
 Discounted cash flow, sinking fund, life fund, yield, profitability, stationary population,
select mortality tables, survival rates, morbidity concept, BMI, Valuation of surplus, Assets
& Liability.
 Types of Financial Reserves in Insurance Companies Balance Sheets, Premium Loadings,
Pricing of insurance products etc. Bonus/Malus concepts, “Fair Value” of assets/liabilities,
life office valuations.
 Concepts of Estate & Trading Profits, distribution of surplus, payment of dividends/bonus,
profit centers, management expenses, fresh/renewal expenses, solvency margins etc.
Module VI : Underwriting (7 Hrs.)
 Definition, importance, profits generation , underwriting process , physical & moral
hazards.
 Extras & discounts in rating structure, deductibles, underwriting factors in Life Insurance
& General Insurance.
 Risk inspection, risk minimization, adverse selection, Use of riders, Loss sensitive pricing,
Embedded devices, comparison between Indian & Global underwriting practices and need
for contract certainty, proposal form.
Module VII : Basic Concepts (5 Hrs.)
 This module is for creating awareness for advanced course in insurance.
 Reinsurance, claims settlement, coinsurance.
 Risk Management, Insurance Marketing and Intermediaries, Futuristic Insurance Products
, “Insure Tech”.
Syllabus: M.Sc. (Economics) w.e.f. AY 2022-23. (Approved by Board of Studies on 17-01-2023;
Academic Council on 6-02-2023)
References :
Text Books
Understanding General Insurance - PC James PCJ Value Media , Bengaluru
Insurance Institute of India Books on various aspects of general insurance IC 51 to IC 54 , IC 71 to
IC 74, IC 77.
Black, Kenneth Jr, Skipper, Harold D Jr, Life & Health Insurance Latest Edition, Prentice Hall.
Rejda George E (2010)
Principles of Risk Management and Insurance Prentice Hall (11 th Edition)
Zartman, Lester W (2003), Yale Readings in Insurance , Life Insurance, William S Hein &
Company
Bates, Ian and Atkins, Derek (2009) Management of Insurance Operations, Global, Professional,
Publications.
Research Papers :
Underwriting Prudence – Winning Strategy, MD Garde, BIMAQUEST, Volume 17, January 2017.
KPMG Report titled “The Connected Ecosystem a New Business Model for Insurance.
“BIMAQUEST” & “Pravartak” Publications of National Insurance Academy, Pune.
Asian Insurance Review, Publication from Singapore.
The Journal, Insurance Institute of India.
Webliography References :
https://www.insuranceinstituteofindia.com
https://www.licindia.in
https://www.agriinsurance.gov.in/pmfby.aspx

**********
Course Code – MA-B-14
Course Name – Insurance Economics (Advanced Practices)
Course Outcome : The Course will enable the students:
i) To know the marketing principles applied to insurance (Module I)
ii) To deal with claim matters as after sales service (Module II)
iii) To get knowledge of innovative insurance products (Module III)
iv) To learn the importance of reinsurance and its methods (Module IV)
v) To understand applications of risk management to insurance issues (Module V)
vi) To learn the best practices followed globally including India (Module VI)

Syllabus: M.Sc. (Economics) w.e.f. AY 2022-23. (Approved by Board of Studies on 17-01-2023;

Academic Council on 6-02-2023)
Module I : Insurance Marketing (10 Hrs.)
 Fixing premium goals annually, need for marketing strategy, front desk skills, insurance
intermediaries like agents, brokers etc.
 Bancassurance tie ups as a win – win mechanism, direct/tied clients servicing, Market
funneling, segmentation.
 New products development, PR & Publicity, Customer Service Pre – Sale , POS &
Aftersales, Lead generationthro referrals, Broker development programs.
 Customer focus at all levels, grievances resolution etc.
Module II : Insurance Claims (8 Hrs.)
 Use of claim form, need for Claims Investigations, Importance of claims as a service
parameter, types of claims for each class of insurance business.
 Stages involved in the claims process, control over claims ratio , typical claim disputes, out
sourcing of claims function, arbitration process.
 Compliance of section 64 VB, salvage disposal, reinstatement and loss of profits claims ,
fraudulent claims handing etc.
Module III : Innovative Insurance Products (8 Hrs.)
 Innovative policies in Health Insurance. The process of product innovation as a 24×7
activity, Customer Focused & Tailor Made Products.
 New Global Products Like Autonomous Car Insurance, PAYD, Genetic Defects Coverage,
Aerospace Related Products, Cyber Liability, Robot Surgeons Cover , Political risk.
 Demat Policies , Drone Insurance , Sports events , Retirement Products, Managed Care ,
Retroactive Liability ,Gaming & Entertainment Covers.
Module IV : Reinsurance (7 Hrs.)
 Types of risks covered in reinsurance, Definition , Importance and the process involved,
various methods of reinsurance like Reciprocal , surplus Treaties etc. concept of lines,
layers, avoidanceof “Spiral” effect.
 Advantages of Reinsurance, reinsurance brokers , consortiums in reinsurance, Increasing
retention capacities.
 Big Reinsurance Companies & Reinsurance Brokers.

Module V : Risk Management (9 Hrs.)

 Definition and process, its importance, various methods, advantages , covering maximum
risk at minimum premium, Risk identification, transfer, evaluation, finance & controlling,
 Risk inspection reports, Types of risks covered, Global risk report, Insurance and
reinsurance as risk transfer mechanisms.
 Need for Enterprise Risk Management (ERM)

Syllabus: M.Sc. (Economics) w.e.f. AY 2022-23. (Approved by Board of Studies on 17-01-2023;

Academic Council on 6-02-2023)
Module VI : Global Insurance Best Practice (8 Hrs.)
 Underwriting desk bench , formation of KPO’s, LPO’s BPO’s, Demat policies.
 Online claims & underwriting, implementation of Insure Tech, Telematics, Telemedicine,
Embedded Devices.
 CRM solutions, Artificial Intelligence tools in insurance underwriting & claims, fraud
investigations.
 Better practices of Pvt. Insurance Companies in India Project Insurance.
References :
Text Books
Insurance Institute of India IC 22 to IC 26 , IC 81 & 85
Gastel, Ruth (Ed) (2004) Reinsurance : Fundamentals and New Challenges, Insurance Information
Institute latest Edition.
Fundamentals of Risk Management By Paul Hopkin (irm) (Kogan Page Publications , London).
Cummins, J David and Doherty, Neil A (2005) The Economics of Insurance Intermediaries,
Wharton School, University of Pennsyivania.
Research Papers :
Case Study, Motor Claims Management, M D Garde and Gautam Prasad, BIMAQUEST, Volume
17, Jaunary 2017.
Enterprise Risk Management – A Strategy to build a resilient organization & be a Busines Partner
– by Delzad D Jivasha – Legal Era Magazine – October 2017 issue.
Webliography References :
https://www.irdai.gov.in
https://www.policyholder.gov.in
https://www.insurancethebox.com/telematics
https://www.ibm.com/blogs/insights-onbusiness/insurance/customerengagement-services-
excellencein-insurance

**********

Course Code – MA-B-15

Course Name – URBAN ECONOMICS
COURSE OUTCOMES:
1. To understand the fundamentals of urban economics with the help of case studies. (Module
1)
2. To get familiar with the conditions of urban cities. (Module 2 and 3)
3. To understand the role of urban infrastructure. (Module 4, 5, and 6)
4. To synthesize the approaches and limitations associated with urban infrastructure. (Module 4,
5 and 6)
5. To analyze the situation of land and rent. (Module 3)
6. To critically evaluate the role of local government for urban development. (Module 6)
Module 1: Introduction
Urban Economics, Existence and importance of cities, 5 axioms of urban economics, Case Studies
and Reports related to important Indian cities.
Module 2: The Development of Cities: Clusters & Agglomeration; City Size and Urban
Growth
Development of a factory town, firm clustering, labor pooling, localization and urbanization
economies, differences in city sizes
Urban employment growth and the multiplier, the effects of taxes and subsidies on location choices
Module 3: Land Rent & Markets and Land use pattern
Land rent and urban structure, Residential Land Market, Urban Land Markets with Factor
Substitution
The Spatial Distribution of Employment and Population, The Monocentric City- Rise and Demise,
Urban Sprawl, Neighborhood Choice, Zoning and Growth controls
Case study of Mumbai and Pune
Module 4: Urban Transportation
Congestion Externalities, Congestion Tax and Alternatives, Autos and Air Pollution, Automobiles
and Poverty.
Commuting and transit Ridership- the Cost of Travel and Model Choice, Efficient Volume of
Ridership, Designing a Transit System
Module 5: Urban Infrastructure
Spending and Educational Achievement- Education Production Function, Spending Inequalities and
Public Policy

Syllabus: M.Sc. (Economics) w.e.f. AY 2022-23. (Approved by Board of Studies on 17-01-2023;

Academic Council on 6-02-2023)
Crime Facts, the Rational Criminals, the Equilibrium Quantity of Crime, Legal Opportunities and
Education
Water supply and sanitation, Access to basic urban amenities
Module 6: Housing
Importance of Housing- Durability, Detritions and Maintenance, the Filtering Model of Housing
Market
Housing Policy- Public Housing, Housing Vouchers, Rent Control and Rent Regulation
Model 7: Local Government
The Role of Local Government, Local Government Revenue and Expenditure, The Tiebout Model
and Property tax
Financial Instruments (municipal Bonds)
*Students would be encouraged to go through the case studies on Indian Cities related to above
mentioned topics.
Text Books
Arthur O’Sullivan, Urban Economics (7th edition), McGraw Hill Irwin, 2008.
Jan K Brueckner, Lectures on Urban Economics, the MIT Press, 2011
Reference Books
Edward L. Glaeser, Cities, Agglomeration, and Spatial Equilibrium: the Lindahl Lectures, New
York, Oxford University Press, 2008 (ISBN-13: 9780199290444)
(Focus on Mathematical Modeling)
Klein, Daniel B., Moore, Adrian T., and Reja, Binyam. Curb Rights: A Foundation for Free
Enterprise in Urban Transit. (New York: Brookings Institution, 1997 (ISBN: 978-0815749394)
William Cronon. Nature's Metropolis: Chicago and the Great West. W.W. Norton, 1991.
James Howard Kunstler. The Geography of Nowhere. Free Press, 1994
William Julius Wilson. The Truly Disadvantaged: The Inner City, the Underclass and Public
Policy.University of Chicago Press, 1987.
Brueckner, Jan (1987) “Structure of Urban Equilibria: A Unified Treatment of the Muth-Mills
Model,” Handbook of Regional and Urban Economics, Volume II, Edwin W. Mills Ed., 821-845.
Arzaghi & Henderson (2008) “Networking off Madison Avenue” Review of Economic Studies
(2008) 75, 1011–1038
Edward Glaeser (1998) “Are Cities Dying?” Journal of Economic Perspectives 12(2): 127‐138.
Adam Jaffee et al. (1993) “Geographic Localization of Knowledge Spillovers as Evidenced by
Patent Citations.” Quarterly Journal of Economics 108(3): 577‐598
Quigley (1998) “Urban Diversity and Economic Growth” Journal of Economic
Perspectives—Volume 12, Number 2—Spring 1998—Pages 127–138

Syllabus: M.Sc. (Economics) w.e.f. AY 2022-23. (Approved by Board of Studies on 17-01-2023;

Academic Council on 6-02-2023)
Roger G. Noll and Andrew Zimbalist (1997) “Sports, Jobs, and Taxes: Are New Stadiums Worth the
Cost?” The Brookings Review 15: 35‐39.
Kerr & Kominers (2010) “Agglomerative Forces and Cluster Shapes”, NBER working paper,
16639
18(4): 177‐200.
Glaeser, Edward L., Matthew Kahn, and Jordan Rappaport (2007) “Why do the poor live in cities?”
Journal of Urban Economics.
Book_ Newman, P. and Kenworthy, J. (1999) “Sustainability and Cities. Overcoming automobile
dependence”. Washington D.C.: Island Press ISBN-13: 978-1559636605, ISBN-10: 1559636602
Glenn Blomquist, Mark Berger, and John Hoehn (1988) "New estimates of the quality of life in
urban areas." The American Economic Review 78(1): 89‐107.
Glaeser, Edward L., Matthew Kahn, and Jordan Rappaport (2007) “Why do the poor live in cities?”
Journal of Urban Economics.
Glenn Blomquist, Mark Berger, and John Hoehn (1988) "New estimates of the quality of life in
urban areas." The American Economic Review 78(1): 89‐107.
Caitlin Knowles Myers (2004)"Discrimination and neighborhood effects: Understanding racial
differentials in US housing prices." Journal of Urban Economics 56(2): 279‐302.
Michael Greenstone Enrico Moretti (2004) “Bidding for Industrial Plants: Does Winning a “Million
Dollar Plant” Increase Welfare?” Working Paper Series, MIT (0-39)

**********

Course Code- MA-B-16

Course Name- ADVANCED MICROECONOMICS
Learning Outcome:
(i) To acquaint the students with General Equilibrium Theory. (Module I)
(ii) To familiarize the students with the concept of incomplete information game and the
resulting Bayesian Nash Equilibrium
(iii) To enumerate the concept of intertemporal choice of consumption and savings, arbitrage
theory. (Module III)
(iv) To develop an understanding of the basic principles and applications of Microeconomics.
Various applications of microeconomics have taken place during the last forty years. This
module will be taught based on presentation and discussions basically by students.
References are attached separately as articles particularly for this module. It intends to
improve students’ analytical skills and ability to solve problems, which will be useful in
several other areas of economics. (Module IV)
Module I:- Theory of General Equilibriums
● Consumer Theory: Preference relation; Utility function; Indirect utility function;
● Expenditure function; Consumer welfare, Revealed preferences
● Producer Theory: Production function; Cost function; Profit function
● Introduction–Partial Equilibrium Vis-à-vis General Equilibrium Approach.
● Exposition of Basic Concepts.
● An Elementary General Equilibrium model – the Robinson Crusoe Economy.
Pure Exchange Economy – the Edgeworth Boxes, Pareto Optimality, Contract Curve,
Core, Walras Law, Walras Equilibrium. First and Second Fundamental Theorem of
Welfare Economics
● Second Level: Refreshment of Analytic and Scarcity Properties of Preference
Relation. A More Elaborate exposition of the Exchange Economy: Commodities,
Agents, Preferences, Utility Functions, Prices, Demand and Excess Demand
Functions and their Properties.
● Formal Definition of Allocation, Pareto Optimal Allocation, Individually Rational Pareto
Optimal Allocation, Coalition, and Core.
● Walras Equilibrium, its Relation with Core.
● Formal Proof of First Fundamental Theorem.
● Gross Substitutability.
● Price Adjustment Process.
● Brower’s Fixed Point Theorem. Existence of Walras Equilibrium and Uzawa Equivalence
Theorem.
● Social Welfare Maximization and its relation with Pareto Optimality.
● General Conditions for Uniqueness, and Discussion of Stability – Tatonnement Process.
● General Equilibrium over Time – Arrow Debreu Scarcity (introduction only). Re-
switching and Reverse Capital Deepening.
Module II: - Games of Incomplete Information
• Static and dynamic games of incomplete information; mechanism design; screening and
signalling

Syllabus: M.Sc. (Economics) w.e.f. AY 2022-23. (Approved by Board of Studies on 17-01-2023;

Academic Council on 6-02-2023)
● Introduction to Sub-Game Perfection

● Static Bayesian Games and Bayesian Equilibrium–Theory and Examples.

Module III: - Consumption and Saving
● Revision of Uncertainty and expected utility theory
● Time Separability
● Exponential Discounting
● The Demand for Saving, Precautionary Saving with an Endogenous Risk
● Arbitrage Theory, Definition of Arbitrage, Asset Pricing through Replicating Portfolio
● Asset Pricing
● Fundamental Theorem of Asset Pricing
● Introduction to Interest Rate Risk
● Introduction to Credit Risk.
Module IV: Applications of Microeconomic Principles
 The principal-agent model and incentive contracting
● Economics of Innovation
● Bargaining, Measurement of Productivity and Efficiency
● Search Theory
● Health Economics
● Hedonics and Non-market evaluation
● Brief Exposure to Mechanism Design and Revelation Principle
Suggested Readings:
Books:
1. Broadway, R.W. and Bruce, N. (1984), Welfare Economics, Basil Blackwell, London.
2. Debreu, G. (1977), Theory of Value, An Axiomatic Analysis of Economic Equilibrium,
Yale University Press.
3. Ellickson, Bryan (1993) Competitive Equilibrium; Theory and Applications, Cambridge
University Press.
4. Kreps, D, “A Course in Microeconomic Theory”, Princeton University Press, 1990

5. Kreps, David (1988), Notes on theory of choice, West view Press.

6. Mas-Colell, Andrew Michael., Whinston, D. And Green, Jerry R. (1995), Microeconomic
Theory,
Oxford University Press.
7. Osborne, MartinJ and Rubinstein, Ariel (1994), A course in Game Theory, MIT Press.
8. Perloff.J. 2019, Microeconomics, 7th Edition, Pearsom Education.
9. Varian, Hal R. (1992), Microeconomic Analysis, 3rd.Edition, International Student Edition,
W. W.
Norton and Company.
Articles
1. Antonelli, C. (2009). The economics of innovation: from the classical legacies to the
economics of complexity. Economics of Innovation and New Technology, Vol 18(7), pp.
611–646.

Syllabus: M.Sc. (Economics) w.e.f. AY 2022-23. (Approved by Board of Studies on 17-01-2023;

Academic Council on 6-02-2023)
2. Heshmati, A. (2003). Productivity Growth, Efficiency, and Outsourcing in
Manufacturing and Service Industries. Journal of Economic Surveys, Vol 17(1), pp.
79–112.
3. Latruffe, L. (2010). Competitiveness, Productivity, and Efficiency in the Agricultural
and Agri-Food Sectors. OECD Food, Agriculture and Fisheries Papers.
4. Lowe, J. G. (1987). The measurement of productivity in the construction industry.
Construction Management and Economics, Vol 5(2), pp. 101–113.
● Part 1: Lippman, S. A., & McCall, J. J. (1976). The Economics of Job Search: A Survey.
Economic Inquiry, Vol 14(2), pp. 155–189.
● Part 2: Lippman, S. A., & McCall, J. J. (1976). The Economics of Job Search: A Survey.
Economic Inquiry, Vol 14(3), pp. 347-388.
**********