Syllabus for
Master of Arts (Applied Economics)
Academic Year  (2024)

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.

Course Description

The course seeks to unlock the mysterious world of the stock market with the objective of

providing complete knowledge of how the market operates and how retailers , big money institutions and private equity firms go about their business. It aims to take a stride towards enhancing practical financial literacy amongst the masses. With India set to be an emerging economy in the years to follow many investment opportunities would present itself. However in this scenario a comprehensive understanding of the investment world would allow citizens to capitalise and grow their wealth over a period of time. The focus would be to orient people towards rule based investing with appropriate knowledge of technical analysis (Chart reading) ,fundamental analysis and market psychology.

Eligibility - Students should have a strong desire to understand how stock market operations work. Discipline and commitment to learn is the demand of the market and so would the students be required to dedicate their time to understand how multiple investing styles can lead to getting positive outcomes in the stock and commodity market .

Course Objective:

To identify and evaluate various alternative sources of income beyond traditional employment.

To emphasize the significance of saving and the potential of compounding.

To analyse stock through fundamental and technical techniques.

To design a personal investment plan.

Investing instruments and different Market Participants , Fundamental vs Technical Analysis, Philosophy and basics of reading Price – Anatomy of Candlesticks, Understanding the role of volumes and volume spread , Wyckoff Market Cycles.

Elliott Wave Theory, Technical Analysis for Investing - Chart Patterns Mark Minervini Volatility Contraction Pattern, Stan Weinstein 30WMA, Darvas Box, Moving Averages and Mean Reversion, Picking Market themes and Sister Stocks by Jesse Livrmore

Investing - Art of stock selection Fundamental Analysis - Analysing Balance Sheets, Competition Analysis, Assessment role of macro economic factors in company’s

revenue, Important Fundamental Ratios ,Qualitative analysis of stocks. Correlation of Dollar Index and Gold prices and the Stock Market. Systematic Investment Planning

Price Action (Beginners to Advance) , Balance and out of balance charts ,Concept of Relative Strength,Trading Fibonacci, Support and Resistance Trading , Pullback Trading , Gap Trading, Breakout Trading, Trend Lines.

Spotting Reversals

Big Player Momentum (Smart Money Concept) , Trading Strategies(Market Psychology , Predicting Range Bound Markets and high momentum days , Level to Level Trading. Risk Management, Learning when to book Profits .Option Trading - Basics - Option Buying and Option Selling, Nifty and Bank Nifty composition , Option Chain Analysis

Recommended Books

1. Japanese Candlestick Charting Techniques by Steve Nisson. New York Institute of Finance

2. Volume Price Analysis by Anna Coulling , CreateSpace Independent Publishing Platform, 2013

3. How to Make Money in Stocks by William J. O'Neil, © 2009, 2002 by William J. O’Neil; © 1995,

1991, 1988 by The McGraw-Hill Companies, Inc.

4. Think and Trade Like a Champion by Mark Minervini, Access Publishing Group, LLC, 2016

5. Trade like a stock market wizard by Mark Minervini , McGraw Hill; 1st edition (16 May 2013)

6. Secrets for profiting in bull and bear market by Stan Weinstein , Echo Point Books and Media, LLC

7.  Intermarket Technical Analysis by John J Murphy, Wiley Finance Editions JOHN WILEY & SONS, INC

8. Reminiscence of a Stock Operator by Edwin Lefevre, The Sun Dial Press, Inc. Garden City, New York Copyright 1923, by George H. Doran Company

Recommended Books

1. Japanese Candlestick Charting Techniques by Steve Nisson. New York Institute of Finance

2. Volume Price Analysis by Anna Coulling , CreateSpace Independent Publishing Platform, 2013

3. How to Make Money in Stocks by William J. O'Neil, © 2009, 2002 by William J. O’Neil; © 1995,

1991, 1988 by The McGraw-Hill Companies, Inc.

4. Think and Trade Like a Champion by Mark Minervini, Access Publishing Group, LLC, 2016

5. Trade like a stock market wizard by Mark Minervini , McGraw Hill; 1st edition (16 May 2013)

6. Secrets for profiting in bull and bear market by Stan Weinstein , Echo Point Books and Media, LLC

7.  Intermarket Technical Analysis by John J Murphy, Wiley Finance Editions JOHN WILEY & SONS, INC

8. Reminiscence of a Stock Operator by Edwin Lefevre, The Sun Dial Press, Inc. Garden City, New York Copyright 1923, by George H. Doran Company

CIA II - 20 Marks

Class Attendance - 05 Marks

The curriculum provides a framework through which students learn data analytics skills, expand their knowledge of Business Analytics, and gain a strategic perspective of the industry. The course is designed around the real-world integration of business disciplines.

Big Data Management - Business Fundamentals - Data Collection - Data Visualization - Statistical Analysis - Text Analytics -Consumer Behavior and CRM - Data Mining

What is Descriptive Analytics? - Descriptive Data Collection: Survey Overview - Descriptive Data Collection: Net Promoter Score and Self-Reports - Descriptive Data Collection: Survey Design - Passive Data Collection - Media Planning - Causal Data Collection and Summary

The Newsvendor Problem - Comparing Decisions in Uncertain Settings - Simulating Uncertain Outcomes in Excel - Interpreting and Visualizing Simulation Output - Decision Trees - Using Simulation with Decision Trees - Using Optimization Together with Simulation.

Goals for the Course - Course Outline and Overview - People Analytics in Practice - Performance Evaluation: the Challenge of Noisy Data - Chance vs. Skill: the NFL Draft - Finding Persistence: Regression to the Mean - Extrapolating from Small Samples - The Wisdom of Crowds: Signal Independence - Process vs. Outcome - Summary of Performance Evaluation

Earnings Management - Overview of Earnings Management - Revenue Recognition Red Flags: Revenue Before Cash Collection - Revenue Recognition Red Flags: Revenue After Cash Collection - Expense Recognition Red Flags: Capitalizing vs. Expensing - Expense Recognition Red Flags: Reserve Accounts and Write-Offs – prediction models

Why is it relevant? The four V’s, Is Big Data= Hadoop?, Big Data and Cloud Computing, Generators of Big Data, Applications of Big Data

Course Description:

MEC131 Advanced Microeconomics is an intensive course focusing on advanced topics in microeconomic theory and applications. The course covers the theory of consumer behaviour, theory of firms, game theory, general equilibrium, and welfare economics. Through rigorous theoretical discussions and practical examples, students will develop a deep understanding of microeconomic principles and their real-world implications.

Objectives of the course:

·       To provide students with a strong theoretical foundation in microeconomic principles and theories, enabling them to understand and analyse economic behaviour at the individual, firm, and market levels.

·       To develop students' analytical skills, including the ability to critically evaluate economic concepts, models, and empirical evidence, and to apply them to real-world economic problems.

·       To equip students with problem-solving abilities to analyse complex economic scenarios, formulate solutions, and evaluate the implications of alternative policy choices.

Choice of a representative consumer- Utility function: existence and characteristics; Budget sets; Demand functions; Income and substitution effects; Slutsky’s theorem: Indirect utility functions, Roy's Identity; Hicksian compensated demand functions; Expenditure functions; Substitutes and complements: gross and pure; Revealed preference.

Characterizing perfect competition; Pricing and output under perfectly competitive markets; Monopoly markets: Pricing, discrimination; welfare costs; Monopolistic competition: Characteristics; Long run and short run behaviour; Oligopoly; choosing a strategy; Quantity leadership; price leadership; Simultaneous quantity setting; Collusion: Instability; Dominant firm; compensating variation; Price and output determination under monopsony and bilateral monopoly.

Games with perfect information-Strategic Games, Nash Equilibrium, Cornet and Bertrand Game; Mixed Strategy Equilibrium; Extensive Form Game with Perfect Information- Stackelberg Model of Duopoly, Buying Votes; Strategic Games with Imperfect Information- Bayesian Games, Cournot’s Duopoly with Imperfect Information, Signalling Games

Partial and general equilibrium; Walrasian excess demand and input-output approaches to general equilibrium; General equilibrium theory in consumption and production, General equilibrium under uncertainty

Pigovian welfare economics; Pareto optimal conditions; Value judgment; Social welfare function; Compensation principle; Inability to obtain optimum welfare–Imperfections, market failure, decreasing costs; Uncertainty and non–existent and incomplete markets; Theory of second-best –Arrow’s impossibility theorem, Rawl’s theory of Justice; Equity efficiency trade-off.

Koutsoyiannis, A., (1979). Modern Microeconomics. London: MacmillanPress.

(IGT) Martin Osborne, An Introduction to Game Theory, Oxford University Press, 2003 (Unit 3)

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.

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.

CIA 2 (MSE) - 25%

CIA 3 - 10%

ESE - 50%

Attendance - 5%

The course aims to acquaint students with the essential concepts and issues in modern macroeconomics, applicable both in theory and practice across the world. The first unit delves into the concepts of inflation, unemployment and productivity, exploring the interconnectedness between the key variables and provides policy insights to the students. Next unit introduces to the theories of money demand and interest rates, tracing its origin in the classical school, the unit further delves into the discussion on the interest rates and portfolio theories. The third unit focuses on business cycle theories and Post-Keynesian Economics. 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. In the fourth unit, a special attention is given to the real-business cycle and New-Keynesian economics. These modules would help students to critically evaluate the consequences of basic macroeconomic policy options under differing economic conditions within a business cycle.

Development of macroeconomics-Classical dichotomy and monetary neutrality- Classical, Neo-classical and modern theories of inflation- Keynesian and monetarist views on inflation- Inflation in the static model-Wages, prices and productivity-The relation of wages to unemployment- Short run and long run Phillips curve and the policy implications- Modifications in Phillips curve- Natural rate of unemployment-Seigniorage and hyperinflation-disinflation.

The Classical and Neoclassical views on holding money- Real and monetary theories of the rate of interest: liquidity preference and loanable funds theories of interest- The term structure of interest rates: Pure Expectations, Pure segmentation and Substitutability theories- Portfolio theories of demand for money- Baumol-Tobin approach to transaction demand for money- Tobin’s portfolio optimization approach- Friedman’s quantity theory of money.

Measurement, Endogenous theories (Hicks, Goodwin, Kaldor), Exogenous theories - Real Business Cycle Theories - Real Business Cycle School and inter temporal substitution of labour- Real Business Cycle theory- technology shocks- neutrality of money and flexibility of wages and prices- Real Business cycle view on great depression- The modern monetarism, major postulates- Keynesian policy framework- The New Classical macroeconomics- Stagflation trend-The Supply-Side economics- major implications.

Market for foreign exchange, devaluation and depreciation, real and nominal exchange rate, factors affecting exchange rate, Mundell-Fleming model, fixed versus floating exchange rate, price adjustment, role of fiscal and monetary policies under alternative exchange rate regimes, purchasing power parity concept.

CIA II   : 50 Marks (Mid Semester Examiniation)

CIA III  : 20 Marks

ESE       : 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

Excel-Introduction of data analysis package in Excel, Descriptive statistics, Correlation, Covariance

Discrete versus continuous distribution, uniform, binomial, negative binomial, Poisson, geometric and hyper-geometric, normal distribution

Excel-Frequency Distribution and it’s diagrammatic presentation- Construction of frequency distribution – Histogram, Boxplot

Simple random sampling: with and without replacement, stratified random sampling, probability and non-probability sampling, sampling distributions: Students-t, Chi-square and F-distribution, determinants of sample size

Excel: Scatter Plots, Cross Tabulation, Pivot Table and Chart

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, application of hypothesis testing with known and unknown variances, Chi-square test for testing independence of two-classification criteria, test for correlation 

Excel-One-way ANOVA, Two-way ANOVA, F-test Two sample variance, One sample z test, One sample t-test, Paired t-test, Mann-Whitney U test, Kruskal Wallis test, Chi-Square- F test, Correlation Coefficient- Spearman’s Rank correlation.

1. Anderson, Sweeny & Williams, Statistics for Business and Economics
2. Goon, A. M, Gupta, M. K, and Dasgupta, B. Fundamentals of Statistics (Volume One, Volume two), The World Press Private Ltd
3. Wayne Winston, Microsoft Excel 2016 - Data Analysis and Business Modeling, Prentice Hall India

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 delves into the fundamental aspects of population growth, examining theories and determinants such as fertility, migration, and mortality. Students will use advanced analytical techniques, including life tables and cohort component projection methods. Emphasis is placed on understanding population dynamics within developed and less developed contexts, focusing on India's demographic data sources, policy implications, and the interconnections between population, economy, and sustainable development.

Meaning and scope of demography — Components of population growth and their interdependence — Theories of population — Malthus; Optimum theory of population; Theory of demographic transition.

Determinants –Fertility, Nuptiality, Migration and Mortality — Techniques — Life table —Construction and uses.

Population trends — Population explosion — Growth, distribution, Pattern and structure in developed and less developed countries — Determinants and   Demographic effects of sex and age structure, economic and social implications — Demographic Dividend — Demographic Models — Projections — Uses and techniques – Cohort Component Projection technique. 

Study of the census in India— History of Census in India — Nature of information — National Family Health Survey (NFHS) and District Level Household Survey(DLHS) — their relative merits and demerits. 

Population policy in India — Population, economy and environment linkages – population and human development issues – Population and Sustainable Development Goals (SDG); urbanization – Population Aging — Skewed sex ratio in India.

Mid-Term

CIA 2

Final Exam

The course aims to deepen students' understanding of how economic theory can be applied to policy problems of the agricultural sector; the course is structured based on three stages of Agricultural Production, namely Pre-production, Production and Post Production, so that the students get an overall understanding of the agricultural issues and policy thereof.

Agricultural Economics: meaning, nature and scope; History and Development; Contribution; Basic Theories

Issues related to Land; Water; Energy; Seed; Fertilizers; Nexus issues; Credit; Indebtedness; Subsidies; Insurance, and Capital formation; Research, Education and Extension.

Meaning of cropping pattern; changes in cropping pattern; crop production and productivity; changes in the labour and wages dynamics in the agricultural sector; livestock economy Non-farm Sector; Role of Technologies

Cost of Cultivation and CACP; Pricing; Income; Issues in Marketing and its Channels; Value Addition and Processing.

WTO, Negotiations and Agreements; Trade and International Relations; Problems of Agricultural Subsidies; Patents; Agricultural Exports: Quantitative Restrictions (QRs) and Non-Tariff Barriers

Sustainable Agriculture; Climate Change and Issues; Organic, Zero Budget, Climate Smart and Precision Farming; Law and Policies, Best Practices in Agriculture from around the World; Hunger and Malnutrition; Food and Nutritional Security.

Introduction to Crop area and Production Statistics; Agricultural Census; Land Use Statistics; Cost of Cultivation; Livestock Census; National Income Statistics; Foreign Trade; Agricultural Development Index; Labour Statistics; Credit Data Base; State Accounts

1. Ashok Gulati (2000), “Indian Agriculture in an Open Economy: Will it Prosper?” in Ahluwalia and Little (eds.), India’s Economic Reforms and Development: Essays for Manmohan Singh, Oxford University Press.

2. Pingali et al (2019) Indian Food Systems towards 2050: Challenges and Opportunities 

CIA 2- 20 marks based on the criteria specified in the course plan

End semester examination-100 marks 

Course Description and Objectives: This elective provides a political-economy foundation to the MA programme ahead. It lays out the broad themes, concepts, perspectives, and ideologies of contemporary economic development, and alongside provides numerical data and qualitative evidence. This elective also paves the way for further interdisciplinary (sociological, historical, and political) reflections on economic development and the current economic condition in India in terms of land, labour, capital, poverty, inequality, and economic sectors. The elective ends with questions of rights, justice, and aspiration.

The Sustainable Development Goals.  State, Market, and Society.  Competing imaginations of development in our time

Classical and Neoclassical.  Industrial capitalism.  Marx.  The post-war welfare state.  Contemporary neoliberalism

1.     Caste.  Class.  Gender

The 1991 Reforms.  Contemporary capitalism in India.  The informal economy.  Labour informality.

 Land.  Environment.  Agriculture sector.  Industry sector.  Emerging sectors

Poverty and inequality.  Political economy of human development in India.  

Rights based approach.  Aspiration.  Justice, human rights, and other institutions

Pranab Bardhan  The Political Economy of Development in India

Hahnel, Robin.  (2002), The ABCs of Political Economy – A Modern Approach, Pluto Press.

Sukhdeo Thorat and Newman, K.S. Blocked by Caste: Economic Discrimination in Modern India

R Nagaraj  From Intermediate Regime to Crony Capitalism

Shashi Ratnakar Singh Political Economy of Land Acquisition and Resource Development in India

Pranab Bardhan  Economic Reforms, Poverty, and Inequality in China and India

Sakiko Fukuda-Parr Human Rights and Human Development

CIA 2: Midsemester Examination - 25%

CIA 3: Test or Assignment - 10%

End Semester Examination - 50%

Attendance - 5%

The objective of the course is to appoint students with open-access software for data analysis. This course covers the usage of Python for data analysis. Students will be appointed with hands-on training on data processing, data visualization, statistics and econometrics analysis, and interpretation.

Introduction to business analytics, Types of Business Analytics solution, Examples, Components of Business Analytics, Business Analytics Process, Types Analytics problems, Supervised learning, Unsupervised learning, Introduction to Python, Python installation, arithmetic functions

Statistics, analytics, data set, measures of central tendency, Measure of Variation or Spread, graph-pie, bar, histogram, box plot, graph by groups, Missing value replenishment, merging data files, Appending the data files, Transformation or normalization, Random Sampling, data visualization, pair plot.

Basic concepts of hypothesis testing, one-sample t-test, To Test Two Means are Equal, two-sample t-test, Paired t-test, Normality test-1. Quantile – Quantile (Q- Q) plot, 2. Shapiro – Wilk test, ANOVA, Cross Tabulation, Chi-Square Test, Correlation.

Simple Linear Regression Illustration, Multiple Linear Regression, Residual Analysis, Regression with dummy variables, Logistic Regression

Introduction to multivariate analysis, Latent variable Models; Linear Single Factor model; General linear factor model; Choice of factors; Rotations; Factor Analysis for Binary Data; Factor analysis for ordered categorical data; methods in cluster analysis; graphical representations; distance matrix; clustering variables; summary.

Introduction to Statistical Learning with Applications in R - James, Witten, Hastie & Tibshirani

Elements of Statistical Learning: Data Mining, Inference & Prediction - Hastie, Tibshirani & Friedman

Statistical Learning from a Regression Perspective - Berk

Pattern Recognition and Machine Learning - Bishop

1.     Knowledge of the famous thinkers and their thoughts that form the basis of current practices and policies.

2.     Understand that knowledge is created by the successive building of ideas on earlier ones.

3.     Understanding of how most of the theoretical concepts in economics and policy today have their roots in ideas born centuries before.

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 and major ideas.

Physiocracy – factors responsible for the growth of Physiocracy, major economic ideas with special reference to Quesnay (origin of the circular flow and macroeconomic identity – Economic Table)

Classical Thought: Smith on value, division of labour, public finance, institutionalism. Malthus on population and theory of gluts. Ricardo on rent, value, and comparative advantage. Mill – fundamental doctrines, including static state. Frederick List – German criticism of classism.

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

Marginalist school: Bohm Bawerk and the origins of marginalism. Walras: general equilibrium. Marshall: economic statics and notion of equilibrium. Edgeworth: 2 x 2 model.

Modern economic thinkers-Keynes - Monetary equation, General Theory, liquidity preference- Schumpeter - creative destruction, business cycles; Market Forms: E F Chamberlain and Joan Robinson; Rawls - justice, Sen - capability approach.

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

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

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

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

4. Taylor, Overton, H. A. (1960). A History of Economic Thought. McGraw – Hill

CIA 2 (MSE): 25%

CIA 3: 10%

ESE: 50%

Attendance: 5%

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.