Syllabus for
Master of Arts (Applied Economics)
Academic Year  (2022)

The MA Applied Economics programme of the Department of Economics in CHRIST (Deemed to be University) aims to form ethically well-grounded students with the ability for incisive reasoning, deep knowledge of economic theory and skill in empirical methodology. One of the highlights of the academic programmes is the emphasis on research based curriculum and experiential learning. The Programme seeks to strike a sound balance between theory and application along with an interdisciplinary dimension without diminishing the focus on economics. This approach is meant to help students face the dynamic challenges in terms of the market and academics. In line with this approach the programme has a combination of papers related to economic theory, methodology and three streams of specialisations which, on the one hand meet the needs of corporate employment and on the other create the ability of applying economic theory to development problems of the world. More specifically students will be equipped to take up careers in academics, teaching, research, business consulting and analytics, civil society and activist organisations, the public sector, government services and international civil services.

Programme Outcome/Programme Learning Goals/Programme Learning Outcome:

PO2: Identify and critically examine the issues concerning economic, institutional and social structures by problematising and raising reflective questions for academic inquiry.

PO3: Exhibit ability to independently carry out a research project using tools and skills acquired through research methodology, statistics, and econometrics.

PO4: Demonstrate expertise in soft skills that will enable them to communicate effectively and engage with their peers, work spaces and community at large.

PO5: Engage with societal problems through informed and active citizenry by undertaking field assignments and projects.

PO6: Recognise and accept plurality of values and understand how individual choices have ethical and wellbeing implications for oneself and others.

PO7: Work with environmental consciousness and gender sensitive values by critically engaging with theories and policy debates in the areas of environmental and gender concerns.

CIAs are composed of three components and carry 50% weightage CIA 1 and 3 are faculty initiated ones, CIA 2 is the Mid-semester examination. End Semester Exam carries 50% weightage.

The MA Applied Economics programme of the Department of Economics, CHRIST (Deemed to be University) aims to form ethically well-grounded students with the ability for incisive reasoning, deep knowledge of economic theory and skill in empirical methodologies. One of the highlights of the academic programme is the emphasis on research-based curriculum and experiential learning. The programme seeks to strike a sound balance between theory and application along with an interdisciplinary dimension helping to connect the discipline with the other social sciences. In line with this approach the programme has a combination of papers related to economic theory, research methodology, specialisations in the form of electives, and skill-based add-on courses which, on the one hand, meet the needs of corporate employment and, on the other, create the ability of applying economic theory to developmental problems and policy imperatives. More specifically, students will be equipped to take up careers in teaching and research, business consulting and data analytics, NGOs and civil society institutions, Government services, policy-making bodies, and international civil services.

Programme Outcome/Programme Learning Goals/Programme Learning Outcome:

PO2: Identify and critically examine the issues concerning economic, institutional and social structures by problematising and raising reflective questions for academic inquiry

PO3: Exhibit ability to independently engage in a research project using tools and skills acquired through research methodology, statistics and econometrics; Use software packages for analyzing and interpreting data; Develop capabilities to critically engage with seminal writings and other empirical works

PO4: Leadership and communication): Exhibit vibrant leadership and interpersonal communication skills developed through curricular and co-curricular activities and programs in group settings

PO5: Engage with societal problems through informed and active citizenry by undertaking field assignments and projects

PO6: Recognise and accept plurality of values and understand how individual choices have ethical and wellbeing implications for oneself and others

PO7: Imbibe environmental consciousness and gender-sensitive values by critically engaging with theories and policy debates in the areas of environmental and gender concerns

CIAs are composed of three components and carry 50% weightage CIA 1 and 3 are faculty-initiated ones, CIA 2 is the Mid-semester examination. End Semester Exam carries 50% weightage.

The course is intended to provide a good understanding and base for the students to apply the concepts and methods of microeconomics in the practical field.  A good grasp of microeconomics is vital for managerial decision-making, designing and understanding public policy. The objective of the course is to provide the students with a thorough knowledge and understanding of the foundations of modern economic analysis. This course will equip the students to understand the various aspects of the traditional Microeconomic theory as well as the latest developments in this field and the applications of theories in analysing current economic problems and to develop the ability to synthesize knowledge.

Construction of theories: Deduction and induction; Empirical verification; Theories and tautologies.

Consumer preferences; Axioms of preference ordering; Utility function: existence and characteristics; concavity and quasiconcavity; Budget sets; Demand functions: Zero homogeneity; Income and substitution effects; Slutzky theorem: Indirect utility functions; Hicksian compensated demand functions; Expenditure functions; Substitutes and complements: gross and pure; Revealed preference.

Production functions; Concavity and quasiconcavity; Returns to a factor and to scale; Total, marginal and average cost function; Long-run cost curves: envelopes; Factor demand functions, Conditional factor demands; Profit maximization; Supply functions, cost minimization – first and second-order conditions; Linear homogeneous production functions and their properties; Cobb-Douglas, CES, VES, and Translog production functions and their properties;Leontief’s production functions, Elasticity of substitution, its derivation for C-D and CES functions; the impact of tax/subsidy.

Characterizing perfect competition; Pricing and output under perfectly competitive markets; Monopoly markets: Pricing, discrimination; welfare costs; Monopolistic competition: Characteristics; Long run and short run behavior; Oligopoly: Cournot’s model; Stackelberg framework: Instability; Dominant firm; Compensating variation; Price and output determination under monopsony and bilateral monopoly;

Henderson, J. M., & Quandt R. E., (2003). Microeconomic Theory: A Mathematical Approach,New Delhi: McGraw Hill.

Koutsoyiannis, A., (1979). Modern Microeconomics. London: Macmillan Press.

Kreps, David M., (1990). A Course in Microeconomic Theory. Princeton: Princeton University Press.

Mas-Colell, A., Whinston, M. D., & Green, J. R. (1995). Microeconomic theory (Vol. 1). New York: Oxford university press.

Sen, Anindya., (2007). Microeconomics: Theory and Applications. New Delhi: Oxford University Press.

Varian, Hal R., (2000). Microeconomic Analysis. New York: W.W. Norton & Company.

Varian, Hal R., (2010). Intermediate microeconomics: a modern approach. Vol. 6. New York: W.W. Norton & Company.

Ferguson, C. E. (1969), The Neoclassical Theory of Production and Distribution, Cambridge: Cambridge University Press.

Fuss, M., and McFadden, D., eds. Production Economics: A Dual Approach to Theory and Applications. Amsterdam: North-Holland Publishing Co., 1978.

G.S. Maddala and E. Miller (1989), Microeconomics: Theory and Applications, McGrow-Hill, New Delhi.

H L Ahuja (2012), Advanced Economic Theory – Microeconomic Analysis, S. Chand Ltd.

J. Henderson & Richard E. Quandt (2003), Microeconomic Theory: Mathematical Approach, Tata McGraw-Hill Publishing Company Limited, New Delhi.

J. De. V. Graff, Theoretical Welfare Economics, Cambridge University Press, 1963.

John A. Edgren (1995), On the Relevance of John Rawls theory of Justice to Welfare Economics, Review of Social Economy, Vol. 53.

Meunier, Valerie (2005). Lecture notes from Chapter 6: Moral Hazard, Strategic Behavior, Information and Contractual Relationships, available in Internet site, www.econ.au.dklfag/701O/F2005/default.ht

Pindyck, Robert & Rubinfeld, Daniel (2013), Micro Economics, 8th Edition, Pearson Education, USA

Paul A. Samuelson (1947), Foundations of Economic Analysis. 1983 edition, Cambridge, Mass: Haward University Press.

S. K. Nath (1969), A Reappraisal of Welfare Economics, London: Routledge and Kegan Paul Ltd.

Richard A. Musgrave and Peggy B. Musgrave, (1989), Public Finance in Theory and Practice, Singapore: McGraw-Hill International

W. J. Baumol, (1952), Welfare Economics and the Theory of the State, Harvard University Press.

CIA II  : 50 Marks (Mid Semester Examination)

CIA III : 20 Marks

This paper aims at strengthening the knowledge of important macroeconomic variables and their role in determining the equilibrium level of output and employment and provides insights into the factors influencing the capital inflows and outflows in an open economy model. It helps the students to understand the theoretical foundation of macroeconomics and the contribution of different schools of thought to the further development of macroeconomics. The students will be able to critically evaluate the consequences of basic macroeconomic policy options under differing economic conditions.

The development of macroeconomics- Actual and potential output-GNP identity on the product, income and disposition side-The government sector and foreign sector-Classical theory of income and employment- The saving investment balance- The labour market equilibrium-  Aggregate demand and supply, money and prices in classical model- Keynes’ theory of employment- Consumption function, investment demand- Effective demand- Determination of equilibrium income- Theory of multiplier-Derivation of the expenditure multiplier.

Equilibrium income and the interest rate determination in the product market- Equilibrium income and the interest rate determination in the money market- Derivation of IS and LM curves-Shift in IS and LM curves-Simultaneous equilibrium- Fiscal and monetary policy effects on demand-Interaction of monetary and fiscal policies- -Aggregate supply in the short run and long run-Supply side disturbances and reactions-Demand side disturbances and reactions-Determination of equilibrium income, employment, rate of interest and price level.

Theories of aggregate consumption- Absolute income hypothesis- Relative income hypothesis- Life cycle hypothesis-Permanent income hypothesis- Robert Hall and Random Walk Hypothesis- Non-income factors affecting consumption-The MPS model-The wealth effect in the static model-The present value criterion for investment-The marginal efficiency of investment-Investment demand and output growth-The accelerator principle and stabilization policy-The rental cost of capital and investment-Tobin’s q theory of investment.

The instruments of monetary policy-The mechanism of monetary expansion- money growth targeting and inflation targeting -The effects of fiscal policy changes-Three ranges of LM curve-The effectiveness of monetary and fiscal policy: Monetarists and Fiscalists-Tax rate changes and the budget deficit-Fiscal stimulus and deficit financing- crowding out and crowding in controversy- Quantitative easing policies- macroeconomic policies in advanced and emerging economies.  

The current account and product market equilibrium-The capital account and balance of payments equilibrium-Balance of payment adjustment and the LM curve- The Classical approach: The automatic adjustment method- Balance of payment adjustment by policy measures: Mundell-Fleming model- The expenditure changing policies- The expenditure switching policy: Devaluation- Monetary approach to Balance of payment adjustments.

CIA 2- 50 marks based on the midsemester examination

CIA 3- 20 marks based on the criteria specified in the course plan

End semester examination-100 marks

This course aims to provide basic ideas on how to think as a researcher, the various considerations involved in the practice of social research and how these relate to the strategy and design of research.

Ways of knowing and understanding the world and the research process - The nature of knowledge and theory - Philosophy of Social Science Research - Relevance of Social Science Research - Objectivity and Values in Social Sciences.

Theory Construction in Social Science Research - Approaches to Social Science and Managerial Research, Theoretical, Applied and Action Research - Ethical Issues in Research on Human or Social Subjects - Non-sexist approach in Social Sciences.

Review of Literature - Identification of Research Gaps and Research Needs - Identification, selection and formulation of research problem - Formulating Hypotheses/Propositions/Issues, conceptualizing research problem.

Uni-disciplinary, inter-disciplinary, multi-disciplinary methodologies - Quantitative Research Methods: An Overview - Qualitative Research Methods: An Overview - Historical Method - Case Study Method - Action Research - Monitoring and Evaluation - Triangulation (including/mixing Qualitative and Quantitative) Methods.

Secondary Sources of Information: Using and Integrating secondary and primary information - Quantitative Data: Kinds and quality of Data, demography, labour force, agriculture, industry - Quantitative Data: Human resources, education, health, housing, employment, banking, rural data bas - Quantitative Data: Survey Reports, Research Studies, Historical Data Tools - Statistical Systems – International, National and Local: Objectivity, Reliability and Validity of Data - Surveys and Questionnaires: Questionnaire, Schedule Design and Construction, Sample Surveys, Survey Administration - Observation – Structured and unstructured, Recording and Interpretation of Observations, Ethnography -Interviews: Nature of the Interview Process - Structured and Unstructured Interviews, Focus Groups, Group Discussions.

Choice of Statistical and Processing Techniques - Interpretative Narrative Methods - Theory of the Testing of Hypotheses - Presentation of Research Findings, Products of Research, Thesis Writing - Factors conducive to research utilization.

The objective of the paper is to make students familiar with theory and application of statistical methods.  This course covers the statistical foundations of data analysis including the statistical theory and its applications in Economics. In particular, this module broadly covers the descriptive statistics, theory of probability, statistical distributions, estimation and hypothesis testing, and non-parametric tests.

 Concept of probability, conditional probability and Bayes’ theorem, random variables – discrete and continuous, density and distribution functions, joint, marginal and conditional distribution, moment generating function, law of large numbers and Central Limit theorem

Discrete versus continuous distribution, uniform, binomial, negative binomial, Poisson, geometric and hyper-geometric, normal, log-normal, exponential, gamma and beta distribution, characteristic function and moment generating function

Simple random sampling: with and without replacement, stratified random sampling, probability and non-probability sampling, statistic and sample moments, sampling distributions: Student’s-t, Chi square and F-distribution, determinants of sample size

Point and interval estimation, properties of good estimators: unbiasedness, consistency, efficiency, different methods of estimation, maximum likelihood and method of moment estimation, properties of maximum likelihood and method of moment estimators, confidence interval for unknown parameters

Statistical hypothesis, simple versus composite hypothesis, critical region, types and size of error – type-I and type-II error, power of a test, Neyman-Pearson lemma, trinity of classical tests (Wald test, Lagrange multiplier, likelihood ratio), application of hypothesis testing with known and unknown variances, Chi-square test for testing independence of two-classification criteria, test for correlation

1. Anderson, Sweeny & Williams, Statistics for Business and Economics

1. Nabendu Pal & Sahadeb Sarkar, Statistics Concepts and applications
2. Speigal. M.R.(1992), Theory and Problems of Statistics, McGraw Hill, London
3. Monga,G.S.(1972), Mathematics and Statistics for Economists,Vikas Publications, New Delhi.
4. Yamane, Taro (1975), Mathematics for Economists, PHI, New Delhi.
5. Murray S. Speigel, Statistics, Schaum Series
6. Nabendu Pal & Sahadeb Sarkar, Statistics Concepts and applications

Mid Sem Exam - 50 Marks

CIA 3 - 20 Marks

End Sem Exam - 100 Marks

This course aims to make students familiar with the famous thinkers and their thoughts that form the basis for current practices and policies; to demonstrate that knowledge is created by the successive building of ideas on earlier ones, and to show how most of the theoretical concepts in economics and policy today have their roots in ideas born centuries before.

Introduction to the study of History of Economic Thought. Introductory Indian and Chinese economic thought - Chanakya on tax administration, Chinese on civil administration and agriculture. Mercantilist thinking - factors responsible for the growth of mercantilist thought, major ideas. Physiocracy - factors responsible for the growth of Physiocracy, major economic ideas, with special reference to Quesnay (origin of the circular flow and microeconomic identity - economic table)

Classical thought - influence of Hutchinson on Smith’s thinking, Smith on value, rent, public finance, institutionalism. Malthus on population and theory of gluts. Ricardo on rent, value, comparative advantage. JS Mill - introduction through Senior, fundamental doctrines, including static state. Frederick List - German criticism of Classicism

Marx (historical materialism, dialectics, surplus value, capitalist appropriation), post Marxists.Fabian socialists - Robert Owen

Marginalist school - Bohm Bawerk - origins of marginalism, Walras (general equilibrium), Marshall (economic statics and notion of equilibrium), Edgeworth (2x2 model).

Keynes - Monetary equation, General Theory and liquidity preference.  Schumpeter - creative destruction and business cycles.  Rawls – theory of justice.  Amartya Sen - capability approach.

1)      Haney, Lewis H. (1977). History of Economic Thought. New Delhi: Surjeet Publications.

2)      Gide, Charles and Rist, Charles, (2007, Indian Reprint). A History of Economic Doctrines. New Delhi: Surjeet Publications

3)      Screpanti, Ernesto & Zamagni, Stefano. (2006). An Outline of the History of Economic Thought. First Indian Edition, Oxford University Press. 

4)      Heilbroner, Robert L. (1999). The Worldly Philosophers - The Lives, Times, and Idea of the Great Economic Thinkers. Simon and Shuster.

5)      Clarke, J. B. The History of Economic Thought.

6)      Taylor, Overton H.A, (1960) A History of Economic Thought, Mc Graw- Hill.

7)      Roll, Eric, (1940) A History  of Economic Thought, Feber and Feber.

2)      Gide, Charles and Rist, Charles, (2007, Indian Reprint). A History of Economic Doctrines. New Delhi: Surjeet Publications

CIA - 1 - 20 Marks

CIA - 2: Mid semester examination - 50 hours; Max. Time: 2 hours.

CIA - 3 - 20 Marks

End Semester Exam - 100 marks

Financial economics is the branch of economics concerned with the working of financial markets, such as the stock market and the finances of companies. The course focuses equally on the theoretical framework as well as the practical aspects of the functioning of financial markets. The course is intended to provide an in-depth understanding of the operational issues of the capital and debt market network along with its regulatory framework.

Return and Risk: Historical and Expected; Time Value of Money: Future and Present Value Methods; Newman – Morgenstern Utility Index and Application; Buying and Selling Securities: Oder Size, Time Limit, Types of Orders, Margin Accounts; Financial Markets: Equity Market, Debt Market, Money Market and Derivative Market; Mutual Funds: Open-ended Schemes Versus Closed-ended Schemes; Regulations of Financial Markets in India.

Fama’s Formulation of Efficient Market Model; Security Price and Random Walk; Testing for Market Efficiency: Event Studies, Looking for Pattern, Examining the Performance; Criticisms and Empirics; Introduction to Behavioral Finance.

Efficient Set Theorem: Feasible Set, Selection of Optimal Portfolio; Concavity of Efficient Set; The Market Model: Random Error Terms, Graphical Representation, Beta, Actual Returns; Diversification; Markowitz’s Portfolio Approach; New Portfolio Theory; Capital Asset Pricing Model; Arbitrage Pricing Theory; Multi-factor Model; Equity Premium Puzzle; Portfolio Revision.

Bond Attributes; Bond Prices; Bond Pricing Theorems; Bond Yields: Current Yield, Yield to Maturity, Yield to Call, Realized Yield to Maturity; Risks in Bonds; The Yield Curve; Determinants of Yield Spreads; Bond Portfolio Management: The Passive and Active Strategies. 

Types of Equity Shares; Free Float Market Capitalization: Sensex and Nifty; Valuation of Preference Shares; Balance Sheet Valuation: Book Value, Liquidation Value, Tobin’s q; Dividend Discount Model: Single and Multi-Period Valuation Models, Zero Growth Model, Constant Growth Model, Two-Stage Growth Model, H-Model; Free Cash Flow Model; Earnings Multiplier Approach; Earnings-Price Ratio, Expected Return and Growth; Forecasting the Aggregate Stock Market Returns.

Fundamental Analysis - Top-Down versus Bottom-up Forecasting; Probabilistic Forecasting; Econometric Models; Company Background; Review of Accounts Statements; Ratio Analysis.

Technical Analysis - Dow Theory and its Tenets; Charts: Point and Figure Chart, Line Chart, Candlestick Chart, Bar Chart; Chart Patterns; Trend Analysis; Moving Averages; Limitations of Technical Analysis.  

Options and Futures; Pricing of Options: Black-Scholes Model and Binomial Option, Pricing Model; Pricing of Futures. 

Prasanna Chandra (2017), Investment Analysis and Portfolio Management,  Tata McGraw Hill Education Private Limited, New Delhi, 5th Edition.

William Sharpe, Gordon Alexander and Jeffery Bailey (2003), Investments, Prentice Hall of India, 6th Edition.