Syllabus for
Master of Arts (Applied Economics)
Academic Year  (2017)

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

The main objective of the paper is to introduce both traditional and as well as modern ideas and theoretical concepts in micro economics. Another important objective is to provide a fundamental understanding of market theory, theory of factor pricing, theory of general equilibrium and welfare economics.

Consumer preferences; Axioms of preference ordering; Utility function: existence and characteristics; concavity and quasi concavity; 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; Uncertainty, expected utility functions: von Neumann-Morgenstern utility function; Asymmetric Information: Sheepskin Effect

Production functions; Concavity and quasi concavity; 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 perfect competitive markets; Monopoly markets: Pricing, discrimination; welfare costs; Monopolistic competition: Characteristics; Long run and short run behavior; Oligopoly — Non-collusive (Cournot, Bertrand, Edgeworth, Chamberlin, kinked demand curve and Stackelberg’s solution) and collusive (Cartels and mergers, price leadership and basing point price system) models; Price and output determination under monopsony and bilateral monopoly.

Neo-classical approach — Marginal productivity theory; Product Exhaustion Theorem; Elasticity of technical substitution, technical progress and factor shares; Theory of distribution in imperfect product and factor markets.

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.

Partial and general equilibrium; Walrasian excess demand and input-output approaches to general equilibrium; Existence, stability and uniqueness of partial equilibrium and general equilibrium; Relationship between relative commodity and factor prices (Stopler-Samuelson theorem); Relationship between output-mix and real factor prices-effect of changes in factors supply in closed economy (Rybczynski theorem).

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.

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.

Specific Objectives:

a. Students will be able to identify the determinants of various macroeconomic aggregates such as output, unemployment, inflation, productivity and the major challenges associated with the measurement of these aggregates.

b. Students will be able to discuss the linkages between financial markets and the real economy, and how these linkages influence the impact of economic policies over differing time horizons.

c. Students will be able to describe the main macroeconomic theories of short term fluctuations and long term growth in the economy.

d. Students will be able to critically evaluate the consequences of basic macroeconomic policy options under differing economic conditions within a business cycle.

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.

2.      Dornbusch, Fischer, Startz. (2010). Macroeconomics. 11th  Edition, Tata Mc Graw Hill.

3.      Graeme Chamberline & Linda Yueh (2006). Thomson Learning.

4.      Burda and Wyplosz (2009). Macroeconomics: A European Text, Fifth Edition, Oxford University Press, New York.

5.      M. Maria John Kennedy (2011). Macroeconomic Theory, PHI Learning Private Limited, New Delhi.

6.      H.L.Ahuja. (2012). Macroeconomics: Theory and Policy. 18th Revised Edition, Sultan Chand Publishers.

7.      Brain Snowdown, Howard Vane and Peter Wynarczyk. (1995). A Modern Guide to Macro Economics: An Introduction to Competing School of Thought.

8.      Edward Shapiro. (2011). Macroeconomic Analysis. 5th Edition, Galgotia Publication Ltd.

9.      Ackley.G. (1978).  Macro economics: Theory and Policy, Macmillan, NewYork.

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

• To understand the importance of research in creating and extending the knowledge base of one's subject area 
• To distinguish between the strengths and limitations of different research approaches regarding one's subject/research area

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.

• To provide an understanding of the concepts and methods of Statistics, for application in data analysis
• To get statistical skill required for the analysis of socio-economic data
• To provide hands-on training in data analysis (along with computer applications)
• Emphasis is on application (including analysis and interpretation) rather than theoretical derivations. The idea is to impart training on how to make an argument with data

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

Overview of SPSS for Windows Step by Step Process, Creating & Editing a Data File, Managing Data, Correlation, Bivariate Regression, Factor Analysis, Cluster Analysis and Discriminate Analysis, Conjoint Analysis, Reliability Analysis.

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

1.  Nabendu Pal & Sahadeb Sarkar, Statistics Concepts and applications

Mid Sem Exam - 50 Marks

CIA 3 - 20 Marks

End Sem 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 capital and money market network along with its regulatory framework.

This course provides a thorough conceptual and practical operations of the financial markets, institutions and instruments network in Indian context.

Introduction to Financial Economics - Finance and Economics – Role of Financial Intermediation - Financial System and Economic Development - Time Value of Money  - Future value  - Present value - Newman – Morgenstern Utility Index - Constructing N M Utility Index - Distinction between NM utility and neo-classical utility measurement – Application of NM Utility Index - Freidman Savage Hypothesis - Capital Asset Pricing Model - Limitations of CAPM - Arbitrage Pricing Model - Law  of one price

Different sources of risk - The process of Risk Return Trade Off -  Measure risk - Markowitz’s Portfolio theory – Expected rate of returns- Variance and standard deviation – Covariance of return – Correlation – Standard deviant of portfolio – Efficient portfolio - Attitude towards Risk - Risk Averter vs. Risk Lover - Risk Lover’s gamble - Risk Neutral Situation  - Risk Aversion and Insurance - Estimating firm’s beta 

Financial Market efficiency – Weak form efficiency – Semi- strong form efficiency – Strong form efficiency – Departure from market efficiency - Financial market Efficiency – tests for market efficiency  - Financial Sector Reforms - Philosophy of Financial Sector Reforms – Achievements - Areas of Concerns in Financial Sector Reforms

Components of financial markets - Money markets and capital markets - Primary and secondary markets – Organized and over-the counter markets – Commodity and currency market - Derivative market - Securities traded in financial markets - Financial Instruments  - T- Bills- Commercial papers – Certificates of Deposits – Repos and Reverse repos –  Bond Markets – Treasury bonds- State and Municipal Government bonds- Corporate Bonds – Zero Coupon Bonds – Convertible bonds- callable bonds- putable bonds – Fixed and floating rate bonds – International bonds- Instruments in capital markets

Initial Public Offers – Follow on public offer - Rights issue – Bonus issue – Qualified Private placements - Function of merchant banker – Pre-issue obligations – Post-issue obligations – Pricing of Public issue – price bands – Credit Rating – Dutch auction - Book Building -Post-Issue Obligations- Eligibility Norms- Contribution of Promoters and lock-in- Demat Issues- Euro Issues- Applications Supported by Blocked Amount (ASBA) -Qualified Institutions Placement (QIP) 

Depository system – Stock exchanges – Demutualization of stock exchanges – Listing of securities – Internet trading – Trading in Secondary Markets – types orders – Limit orders – Market orders- Stop loss order – Day order – Cancel Order - Matching Orders - Circuit breakers – Insider Trading – Unfair trade Practices – Buy back - Over-the counter Markets

Forwards, Options and futures – Call and put option – Speculating with call option – Speculating with put options – Determinants of call option premium - Determinants of put option premium

Specification of Investment goals - Investment Alternatives - Analysis of Individual’s Environment and Resources - Establishment of Financial Plans - The Capacity to Meet Financial Emergencies - Desire to Finance Identifiable Future Purchases such as Children’s Education - The Need for Additional Income - Desire to Accumulate an Estate - Desire to speculate - Asset allocation – Monitoring and evaluation - Active vs. passive portfolio management

1. Copeland,T.E. and J.F.Weston, 1988, Financial Theory and Corporate Policy, Addison Wesley.
2. Hull,J.M,2003, Futures, Options and other Derivatives, Prentice Hall.
3. Ross.S.A., Randolph W Westerfield, Bradford D Jordan, and Gordon S Roberts,2005, Fundamentals of Corporate Finance, McGraw-Hill.
4. Robert C Radcliffe, Investment Concepts, Analysis and Strategies.
5. Machiraju H R, Indian Financial System, Vikas Publishing House
6. Donald E Fisher, Roland J Jordan, Security Analysis and Portfolio management,Eastern Economy Edition.
7. Doglas Hearth and Jannis K ziama, Conemporary investment: Security and (PortfolioAnalysis, The Dryden Press)
8. J L. Farrell, Portfolio management Mc Grawhill
9. Reghu Palat, Fundamental Analysis.
10. Jay Shanken, The Arbitrage pricing Theory: is it testable? Journal of Finance; 37:5
11. Journals-a.Journal of Finance, b.Journal of Financial Economics, c.Econometrica d. Review of Financial Studies

1. William Sharpe, Gordon Alexander and Jeffery Bailey, Investments 5/e, Prentice Hall of India, Chapters 1 – 13 (Selectively), 20, 22.
2. Hendrick S. Houthakker and Peter J. Williamson (latest edition), The Economics of Financial Markets, Oxford University Press, Selected chapters.
3. John Eatwell, Murray Milgate and Peter Newman (eds.), Finance: The New Palgrane, Norton, Chapters by Stephen Ross (Finance) and J.E. Ingersol (Option Pricing Theory)
4. L.M. Bhole, Financial Institutions and Markets, 3/e, Tata McGraw Hill.  

CIA II [MID SEMESTER] -50 Marks

CIA III -20 Marks

The core purpose of the course is to contextualise economic discourse through an interdisciplinary approach. The course introduces the interface between economics and politics. Secondly it extends this interface to issues of the Indian Economy since independence.

This course enables students to acquire an orientation to interdisciplinarity in the content of economics especially with reference to it interrelationship with political realities

Economics and Liberal Theory – Economic Justice and Efficiency – Basics of Marxian Theory of Surplus Value and Capital Appropriation – The Invisible Hand Debate of the Markets  - Understanding the Problematic Convenience of Money, Banks and Finance – Political Economy debate of Comparative Advantage versus Imperialism – Introduction to Globalisation and the Political Economy of the External Sector.

Origins of Comparative Development: A brief idea – Accommodative Politics and Radical Social Change – Class Conciliation and Class Struggle – Goals of Economic Planning – Problems of Rapid Industrialisation: The Deceleration in Industrial Growth – Growth in Agriculture and Slow Agrarian Reform.

Problems of Implementation – The Crisis to the Socialist Principles and Goals of Planning – Public Investment and Economic Growth - The Crisis of Planning & Political Stability.

Radicalisation of Indian Politics, Class Struggle and the challenge of Redistribution – Understanding India’s Economic, Social and Political Conflicts: Autonomy of the State, Dominance of the Proprietary Class & the Dominant Coalition – Impact of Conflicts: on Public Mobilisation, on Capital Management and the Democratic Process – Regulatory Mechanism and the Role of the State.

1. Hahnel, Robin.  (2002), The ABCs of Political Economy – A Modern Approach, Pluto Press.
2. Frankel, Francine R. (2005), India’s Political Economy – 1947 – 2004 (2nd ed.), Oxford University Press. 
3. Bardhan, Pranab. (2011), The Political Economy of Development in India (12th ed.), Oxford University Press.

1. Mukherji, Rahul (Eds).(2007), India’s Economic Transition: The Politics of Reforms, Oxford University Press.
2. Caparaso, James A. & Levine, David P. (1992).  Theories of Political Economy, Cambridge University Press.
3. Weingast, Barry R. & Wittman, Donald A (2008), The Oxford Handbook of Political Economy, Oxford University Press.

CIA - 2: Mid Semester Examination - 50 marks; 2 hours.

CIA - 3: 20 marks.

The course aims to deepen students understanding of how economic theory can be applied to policy problems of agricultural sector.

To explore the economic foundations for public policy analysis related to agricultural issues.

Agricultural Economics: meaning, nature and scope; Capital Formation in Agriculture: National and State level analysis; Pattern of agricultural development: regional variations; Sustainable Agricultural Growth: concepts and constraints; Organic farming; Hunger and Malnutrition; Economics of Food Demand.

Agricultural productivity: comparison with developed countries, Ways and Means for improving crop productivity; Bio Technology: meaning and Scope; Green house technique; Food self sufficiency: pre independence and post independence; Input supply and distribution: economic aspects of irrigation and fertilizer use; Live stock management; Dairy farming; Contract farming; Value addition: processing industry; Emerging trends in agricultural technology.

Utility and demand functions in consumer behavior; Elasticities, Estimation of demands for agricultural commodities and policy implication; Producer theory in agricultural economics; Structural form approach; Reduced form approach on a supply side: Supply response model; Risk and Insurance.

Economic and agricultural situation during plan periods and policy implications; Agriculture Pricing Policy: Price distortions of policy interventions in agricultural economics; Food security in India and public distribution system; Policies related to major agricultural commodities; Energy needs for agricultural/rural development; Subsidies to expand farm output and income distribution; Labour mobility and agricultural wage policy; Infrastructural support for agriculture: transport, storage and markets; Price, trade and international assistance; Agricultural Credit and Indebtedness; Research: education and extension needs; Agricultural taxation; Trade-off between agricultural development and environmental quality.

Food market analysis; Structure and organization of agri-food markets: developed countries, developing countries; Demand for food in international markets; The Marketing Chain: Retail and Wholesale Markets; Marketing Margins; Market power, concentration and consolidation.

Comparative Advantage, Agriculture and International Trade; Trade Policies, Negotiations and Agreements; Agriculture and the Macro-economy; WTO and Indian agriculture; Problems of Agricultural Subsidies; Patents; Agricultural Exports: Quantitative Restrictions (QRs) and Non tariff barriers.

1. Ray, D., Development Economics, 1998, Chapters 2, 9, 10, 12, and 16.
2. von Braun, J, M.S. Swaminathan, and M W. Rosegrant, “Agriculture, Food Security, Nutrition, and the Millennium Development Goals,” Essay, IFPRI, Washington. DC, 2005.
3. Besley, T. and R. Burgess, “Halving Global Poverty,” Journal of Economic Perspectives, Vol 17. No 3, Summer 2003, pp. 3-22. 
4. Trostle, R., “Global Agricultural Supply and Demand: Factors Contributing to the Recent Increase in Food Commodity Prices,” USDA/ERS WRS-0801, May 2008, Washington, DC. 
5. North, D., “Institutions, Transaction Costs, and Economic Growth,” Economic Inquiry, 1987.

1. Olson, M. Jr., “Big Bills Left on the Sidewalk: Why Some Nations are Rich and Others are Poor,” Journal of Economic Perspectives, Spring 1996. 
2. Lee, R. “The Demographic Transition: Three Centuries of Fundamental Change,” Journal of Economic Perspectives, Vol. 17, No. 4, Fall 2003, pp. 167-190. 
3. Cohen, J., “Human Population: The Next Half Century”, Science, Vol. 302, November 14, 2003, pp. 1172-1177. 
4. World Bank, “Demand and Supply Factor in Fertility Transitions,” Chapter 4 in Population and Development, 1994. 
5. Hymer, S. and S. Resnick, “A Model of an Agricultural Economy With Non-Agricultural Activities,” American Economic Review, September 1969. 
6. Singh, S. and S., “Agricultural Household Models, John Hopkins University Press, Baltimore, 1986, Introduction and Chapter 1. 
7. Otsuka, K., “Efficiency and Equity Effects of Land Markets,” Chapter 51 in R. Evenson and P. Pingali, Handbook of Agricultural Economics, Volume 3, 2007, pp2671 – 2703. 
8. Townsend, R.M., Consumption Insurance: An Evaluation of Risk-Bearing Systems in Low Income Economies, Journal of Economic Perspectives, Vol 9, no. 3, Summer 1995: 83-102. 
9. Morduch, J., “Income Smoothing and Consumption Smoothing”, Journal of Economic Perspectives, Vol 9, No3, Summer 1995: 103-114. 
10. Moyo, S., G.W. Norton, J.Alwang, M. Miah, and M. Deom, “Peanut Research and Poverty Reduction: Impacts of Vaeiety Research to Control Peanut Viruses in Uganda, American Journal of Agricultural Economics, May 2007, pp.448-460. 
11. Thompson, R., “Globalization and the Benefits of Trade,” Chicago Fed Letter 236, March 2007.
12. Yotopoulos, Pan, Asymmetric Globalization, Chapter 1 in Yotopoulos and Nugent (Ed) The Asymmetries of Globalization, Routledge: New York, 2007. 
13. Schiff, Maurice and Alberto Valdez, “Agriculture and the Macroeconomy, with emphasis on developing countries”, in B.L. Gardner and G.C. Rausser, Handbook of Agricultural Economics, Volume 2A, 2002, Chapter 27, pp. 1421-1454. 
14. Bouet, A. “How Much Will Trade Liberalization Help the Poor? Comparing Global Trade Models, IFPRI Research Brief N. 5, 2006. 
15. Koo, W. and P.L. Kennedy, “The Impact of Agricultural Subsidies on Global Welfare,” American Journal of Agricultural Economics, 88:2 (December 2006): 1219-1226.
16. Krueger, Schiff, and Valdes, “Agricultural Incentives in Developing Countries: Measuring the Effects of Sectoral and Economy-Wide Policies,” The World Bank Economic Review, 1988, pp. 255-271. 
17. Vaidyanathan, A. (1994), “Performance of Indian Agriculture since Independence” in Kaushik Basu (ed.), Agrarian Questions Oxford University Press. 
18. V.M. Rao, (2001), “The Making of Agricultural Price Policy: A Review of the CACP Reports” Journal of Indian School of Political Economy vol. XIII, no. 1, Jan-March.
19. Robert Evenson, Carl Pray and Mark Rosegrant (1999), Agricultural Research and Productivity Growth in India (IFPRI Research Report 109).
20. Gunvant Desai and A. Vaidyanathan (1995), Strategic Issues in Future Growth in Fertiliser Use in India, Macmillan. 
21. 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. 
22. Schiff, M. and L.A. Winters, “Regional Integration Agreements: An Overview,” Chapter 1 in Regional Integration and Development, The World Bank, Washington DC, 2003, pp 1-30.
23. Koo, W., P. Kennedy, and A. Skripnitchenko, “Regional Preferential Trade Agreements: Trade Creation and Diversion Effects,” Review of Agricultural Economics, 28 (3) (2006): 408-415. 
24. Kelly, T., “Why Are Developing Countries Still Negotiating? The WTO’s Successes at the Doha Round, Challenge, Vol 48, No. 3 (May/June 2005): 109-124.
25. Martin, W. and K. Anderson, “The Doha Agenda Negotiations on Agriculture: What Could They Deliver?” American Journal of Agricultural Economics, 88 (5) (2006): 1211-1218.
26. Krugman, P. “What Should Trade Negotiators Negotiate About?” Journal of Economic Literature, March 1997. 
27. Calvo, G and F Mishkin, “The Mirage of Exchange rate Regimes for Emerging Countries,” Journal of Economic Perspectives, Vol. 17, No. 4, Fall 2003, pp. 99-110.
28. Fischer, S., “Exchange Rate Regimes: Is the Bipolar View Correct?”, Journal of Economic Perspectives, Vol 15, Spring, 2001, pp 3-24.
29. Mellor, J.W., “Foreign Aid and Agriculture-Led Development”, Chapter 3 in C. Eicher and J. Staatz International Agricultural Development, Johns Hopkins, 1998.

CIA II (Mid Semester): Out of 50 Marks

CIA III: Out of 20 Marks

End Semester Examination: Out of 100 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.

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- Relationship between wages and 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 theoires- Portfolio theories of demand for money- Baumol-Tobin approach to transaction demand for money- Tobin's portfolio optimisation approach- Friedman's Quantity theory of money

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.

Rationale and impact of reforms since 1991 on BOP, Problems of Indian's international debt,  export policies, Working and regulation of MNCs in India- The issues and policies towards financial stability- International Reserves, Monetary integration- European Monetary System- Contemporary Macroeconomic debates in India and the world

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.

2.      Dornbusch, Fischer, Startz. (2010). Macroeconomics. 11th  Edition, Tata Mc Graw Hill.

3.      Graeme Chamberline & Linda Yueh (2006). Thomson Learning.

4.      Burda and Wyplosz (2009). Macroeconomics: A European Text, Fifth Edition, Oxford University Press, New York.

5.      M. Maria John Kennedy (2011). Macroeconomic Theory, PHI Learning Private Limited, New Delhi.

6.      H.L.Ahuja. (2012). Macroeconomics: Theory and Policy. 18th Revised Edition, Sultan Chand Publishers.

7.      Brain Snowdown, Howard Vane and Peter Wynarczyk. (1995). A Modern Guide to Macro Economics: An Introduction to Competing School of Thought.

8.      Edward Shapiro. (2011). Macroeconomic Analysis. 5th Edition, Galgotia Publication Ltd.

9.      Ackley.G. (1978).  Macro economics: Theory and Policy, Macmillan, NewYork.

CIA II   : 50 Marks (Mid Semester Examiniation)

CIA III  : 20 Marks

ESE       : 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.

By completing this course the student will be able to:

(1)   Compare current economic practices with those of original thinkers in the field.

(2)   Trace the progress of ideas and development of the methodology in economics.

(3)   Better locate research output in a relevant body of literature.

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 James Mill, 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 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.

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. 

CIA - 1 - 20 Marks

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

CIA - 3 - 20 Marks

The main objectives of the paper are to train the students to grasp the use of mathematical techniques and operations to analyse economic problems and to initiate students into various economic concepts which are amenable to mathematical treatment.

• Exhibiting a sound understanding of mathematical techniques discussed.
• Formulating economic problems in mathematical terms.
• Applying the relevant tools for analysing economic problems.

Equilibrium analysis in Economics-Definition of equilibrium-Solution of equilibrium- Single vs. multiple equilibrium-Partial vs. general equilibrium. Application: single vs. multiple commodity markets-Linear Models and Matrix Algebra -Matrix algebra with special emphasis on Cramer’s rule- Applications: multiple commodity markets-Heckscher-Ohlin model-Comparative Static Analysis- Review of comparative static analysis using IS-LM model- Alternative approaches- Application: Mundell-Fleming model (IS-LM with small open economy)

Optimization of functions of one variable -Main concepts- First-derivative test or first order conditions- Second-derivative or second order conditions (sufficient conditions) Applications: Profit maximization (one product) under: - perfect competition - monopoly. - Cournot competition (duopoly)- Optimization of functions of more than one variable- The differential version of optimization conditions- Extreme values of function of two variables and comparative static aspect of optimization- Application: Profit maximization (two products) under perfect competition- extreme values of function of n variables. Applications: i) Monopolist selling in segmented markets

Lagrange-multiplier method-First-derivative test or first order conditions-Second-derivative or second order conditions. Applications: Utility maximization and consumer demand (two goods, one period)-Utility maximization and consumer demand (one goods, two periods)- perfect access to international capital markets.-financial autarky. welfare implications

Uncertainty and consumption under capital markets imperfections- Applications: Utility maximization and consumption under uncertainty of output path and incomplete markets. Certainty equivalence and precautionary savings- Multiple agents optimization- Application: Optimal taxation. Exogenous government spending- Benevolent government

1. Chiang A C (1986). Fundamental Methods of Mathematical Economics, McGraw Hill,New York.
2. Koutsoyiannis A. (1979). Modern microeconomics, 2nded, ELBS with McMillan.
3. Mona G S. (1996) Mathematics and Statistics for Economics, Vikas Publishing House Pvt. Ltd., Delhi.
4. Yamane, Taro (1975) Mathematics for Economists, Prentice Hall of India, New Delhi.
5. Mehta-Madnani (2005) Mathematics for Economists, Sultan Chand and Sons, New Delhi.
6. Eugene Diulio, Macroeconomics, Schaum‘s Outlines, McGraw Hill.

Mid Sem Exam - 50 Marks

CIA 3 -20 Marks

End Sem Exam - 100 Marks

The course is designed to impart the learning of principles of econometric methods and tools.  This is expected to improve student’s ability to understand of econometrics in the study of economics. This course is intends to provide a thorough and sound understanding of the essential theoretical base, an introduction into the important and useful techniques of modeling and also an understanding of the broad applications of econometrics.

1) To provide students with a thorough coverage of modern econometrics, such that they can potentially develop substantive new empirical findings and theoretical results.

2) Introduce students to the econometric theory and its application in order to equip them with the basic knowledge required for performing quantitative analyses of economic models.

3) To help students develop hands-on skills in the application of econometric and quantitative techniques to real world economic and business data.

Linear regression model, two variables and multi variables, BLUE property, general and confidence approach to hypothesis testing, partial effects and elasticity, goodness of fit, model evaluation, matrix approach to linear regression models;

Consequences and detection of multicollinearity, heteroskedasticity, and autocorrelation; remedial measures;

Regression on qualitative and quantitative variables, dummy variable trap, structural stability of regression models, Chow test, piecewise linear regression model;

Simultaneity bias, structural versus reduced form, identification: rank versus order condition, exact and over identifications, triangular model, methods of estimation including indirect least squares, two-stage least squares and three-stage least squares, LIML and FIML;

Formation of expectations, naïve expectation versus adaptive expectations models, partial adjustment models, distributed lag models; Koyck’s model, Almon lag, polynomial distributed lag models, end point restriction, rational expectations models;

1) A Koutsoyiannis (2001), Theory of Econometrics, Palgrave Macmillan, 2nd Edition.

2) Damodar N Gujarati and D C Porter (2009), Basic Econometrics, McGraw Hill Publication, 5th edition.

3) Wooldridge M Jeffrey (2016), Introductory Econometrics: A Modern Approach, Cengage Learning, 6th Edition.

2) Jan Kmenta (2008), Elements of Econometrics, Indian Reprint, Khosla Publishing House, 2nd edition.

3) Johnston J (1972), Econometric Methods, McGraw Hill Book Company, New York.

4) Lawrence Klein, An Introduction to Econometrics, Prentice Hall Inc, Englewood Cliffs. New Jersy.

5) Maddala, G.S and Kajal Lahiri (2009), Introduction to Econometrics, 4th edition, Wiley Publication.

Mid Sem Exam - 50 Marks

CIA 3 - 20 Marks

End Sem Exam - 100 Marks

This paper is designed to prepare the students with training in theoretical and practical aspects of Insurance Science. It also equip them to work in life and non-life insurance companies (designing insurance products, valuing financial contracts and investing funds); consultancy (offering advice to occupational pension funds and employee benefit plans); government service (supervising insurance companies and advising on the national insurance); and also in the stock exchange, industry, commerce and academia. This paper also develops the caliber of the students to understand the banking procedure with its command on money inflow in the market.

1) To make students to understand the behaviour of banks and at addressing some of the major trends in domestic and international banking in recent times
using the basic tools of economic analysis.

2) To prepare the students with training in theoretical and practical aspects of Insurance Science.

Contingent Consumption; Utility Functions and Probabilities; Expected Utility Theory in Insurance Market; Risk pooling; risk spreading; risk transfer; Quality Choice – Choosing the Quality; Moral Hazard and Adverse Selection in Banking and Insurance Theories; Signaling - The Sheepskin Effect; Incentives; Asymmetric Information - Monitoring Costs Example: The Grameen Bank; Systems Competition; The Problem of Complements; Relationships among Complementors; Markets with Network Externalities.

The Monetary Policy of RBI – Bank Nationalisation and Credit Planning; Monetary Targeting; Multiple Indicator Approach and Liquidity Adjustment Facilities (LAFs); Theoretical Basis of Banking Operations; Liabilities of Banks – deposits, non-deposit resources, other liabilities; Banking Assets – Investments, Bank Credit; Concept of Lending and Portfolio Choice and Aspects; Banking Innovations; Risk Management in Banking; Non-Bank Financial Intermediaries (NBFIs) and Statutory Financial Organisation – Small Savings, Provident Funds and Pension Funds; NBFIs and Miscellaneous Financial Organisation – Loan Companies, Investment Companies, Hire-Purchase Finance; Lease Finance; Housing Finance.

Types of life insurance Contracts: Term and Cash Insurance; The Level Premium Concept; Life Insurance Products; Types of Term Insurance; Whole Life Insurance; Variation of Whole Life Insurance; Indeterminate Premium Whole Life Insurance; General Classifications of Life Insurance; Computation of Life Insurance Premium; Benefits-Certain and Benefits-Uncertain contracts.

Individual Health and Disability Income Insurance; Types of Individual Health Insurance Coverage: Hospital (Surgical Insurance, Major Medical Insurance); Disability Income Insurance; Need for Disability Income Insurance: Short Term Versus Long Term Disability Coverage; Health Insurance for the Elderly; Long Term Care Insurance; Employee Benefits: Group, Life and Health Insurance; Group Insurance: Group Life Insurance Plans, Group Health Insurance Plans, Group Disability - Income Insurance.

Insurance Company Operations: Rate Making, Underwriting, Production, Claim Settlement, Reinsurance; Life Insurance Industry in India; Government Insurance Units; Private Players; Emerging Scenario; Marketing Systems; Distribution Channels: Agents and Brokers; Changes in Distribution System; Government regulation of Insurance; Rationale of Regulation; Function of IRDA, IITDA Regulations; Issues in Insurance Regulation.

1. Besley, T., J. Hall, and I. Preston. 1998. “Private and Public Health Insurance in the United Kingdom.” European Economic Review 42 (35): 491–97.
2. 1999. “The Demand for Private Health Insurance: Do Waiting Lists Matter?” Journal of Public Economics 72 (2): 155–81. 
3. Bodenheimer, T. 1992. “Private Insurance Reform in the 1990s: Can It Solve the Health Care Crisis?” International Journal of Health Services 22 (2): 197–215.
4. Carmichael, J., and M. Pomerleano. 2002. The Development and Regulation of Non-Bank Financial Institutions. Washington, DC: World Bank. 
5. Chakravarty, S.C. (1985), Report of the Committee to Review the Working of the Monetary System, Reserve Bank of India, Bombay. 
6. Colclough, C. 1997. Marketizing Education and Health in Developing Countries: Miracle or Mirage? Oxford and New York: Clarendon. 
7. Cutler, D. M., and J. Gruber. 1995. Does Public Insurance Crowd Out Private Insurance? Cambridge, MA: National Bureau of Economic Research. 
8. 1997. “Medicaid and Private Insurance: Evidence and Implications.” Health Affairs (Millwood) 16 (1): 194–200. 
9. Ensor, T. 1995. “Introducing Health Insurance in Vietnam.” Health Policy and Planning 10 (2): 154–63. 
10. 1999. “Developing Health Insurance in Transitional Asia.” Social Science and Medicine 48 (7): 871–79. 
11. Glied, S. A. 2001. “Health Insurance and Market Failure since Arrow.” Journal of Health Politics, Policy and Law 26 (5): 957–65.  
12. Grant, K., and R. Grant. 2003. “Health Insurance and the Poor in Low-Income Countries.” World Hospitals and Health Services 39 (1): 19–22.
13. Keynes, J.M. (1936), The General Theory of Employment, Interest and Money, Macmillan, London. 
14. Laidler, D.E.W. (1977), Demand for Money: Theory and Evidence, DumDon Valley, New York. 
15. Manning, W. G., and M. S. Marquis. 1996. “Health Insurance: The Trade-Off between Risk Pooling and Moral Hazard.” Journal of Health Economics 15 (5): 609–39. 
16. McKnight, R. 2002. Essays on the Economics of Health Insurance. Cambridge, MA: Massachusetts Institute of Technology. 
17. Nyman, J. A. 2003. The Theory of Demand for Health Insurance. Stanford: Stanford University Press.
18. Outreville, J. F. 1991. “Use of Computer Technology in the Insurance Sector of Developing Countries.” Discussion Paper 38, United Nations Conference on Trade and Development, Geneva.  
19. 1994. “Life Insurance in Developing Countries: A Cross-Country Analysis.” Discussion Paper 93, United Nations Conference on Trade and Development, Geneva. 
20. 1996. “Reinsurance in Developing Countries: Market Structure and Comparative Advantage.” Discussion Paper 121, United Nations Conference on Trade and Development, Geneva.
21. 1998. Theory and Practice of Insurance. Dordrecht and Boston: Kluwer Academic Publishers. 

CIA II (Mid Semester): Out of 50 Marks

CIA III: Out of 20 Marks

End Semester Examination: Out of 100 Marks

 This course intends to provide knowledge to the students on the basic issues such as productivity, efficiency, capacity utilization and debates involved in the industrial development of India. Industrial Economics is to develop the students’ comprehension of both industry models and their links with practice with a special accent on government policy. The objective is to provide a thorough knowledge about the economics of industry in a cogent and analytical manner, particularly in the Indian context.

• Awareness of the basic issues such as productivity, efficiency capacity utilization involved in the industrial development of India and the practical applications of the conept in the real world scenario.
• Knowledge about the different forms of organisation and its relevance in Indian context
• Theoretical and practical knowledge about market concentration and  Mergers & acquisitions 
• Understanding about the investment decisions and pricing policies of  the industry.

Market structure – conduct performance paradigm – Sources of monopoly power-Effects of monopoly on social welfare- Natural monopoly; Price and non-price regulation of natural monopoly-Anti monopoly policy- Price Discriminating Monopoly-Types of price discrimination: general overview- Welfare effects of price discrimination- Market concentration and monopoly power – Causes and measurement – Market concentration and performance – Extent of market concentration in India – Recent trends – The Firm: Emergence and its objectives - Non -profit maximizing models- Case studies on Market concentration and Natural Monopoly

Mergers and take over: Concepts, motives and consequences- Cross border M & A- Diversification-Vertical Integration: Nature and extent of vertical integration, monopolistic motives for integration – Case studies on M&A.

Sources (internal and external) – Financial Statements – Analysis of financial ratios and their interrelatedness, Problems of financial analysis- General considerations for pricing decisions-Cost plus pricing, Incremental cost pricing, Acceptance pricing, going rate pricing and transfer pricing; Predatory pricing - Public policy towards predatory pricing- Profitability and its determinants

Industrial Productivity- norms and measurement;Factors affecting productivity and capacity utilization; Importance of productivity in the competitive environment; Measures required for improving productivity and efficiency- Case studies on Productivity.

The behavioural theory of the firm; Transaction cost theory; the property Right Theory; The Agency Theory and the Resource Based Theory- Factors Influencing Location of Industries. -Theories of Industrial Location, Weber, Sargent Florence; Need for Balanced Regional Development of Industries - Industrial location trends in India.

Industrial Imbalance Causes and Measures-Need for Balanced Regional Development of Industries - Industrial location trends in India - Need for govt intervention in industry- Ways of govt regulation-Industrial regulations in India.

CIA II (Mid Semester Examination) : 50 Marks

CIA III : 20 Marks

End Semester Examination : 100 Marks

The course by using economic theory and analysis trains the students to understand how gender and caste differences lead to differences in outcomes with respect to education, career, earnings and roles in the family and how such differences impact female mortality, fertility, economic status and work participation.

Historical and current trends in wages, occupational patterns and unemployment rates by gender, caste and minority religious groups- Economic explanations for gender and caste based disparities in the labour market- Empirical evidence from economic literature- Gender budgeting: Meaning, scope and data types.

Personal –prejudice models: Employer, Customer and Employee discrimination- Statistical discrimination- Non-competitive models of Discrimination- Measures taken to eliminate discrimination- Gender-caste development index- Intersections of gender and caste.

Overview of marriage and family structure; The economics of marriage, Production, specialization and gains to marriage, Supply and demand model of marriage, changes in demand and supply, Marriage and the earnings of men, Divorce and its consequences- Decision making by women; Factors affecting decision making by women, property rights, access to and control over economic resources, assets; Power of decision making at household, class, community level; Economic status of women and its effect on work-participation rate, income level, health, and education in developing countries and India.

Concept and analysis of women’s work: Valuation of productive and unproductive work; visible and invisible work; paid and unpaid work; economically productive and socially productive work – Women’s labour force participation; Economic model of women’s labour force participation – Effect of changes in wages, income and household productivity- The gender gap in earnings- Occupational segregation – gender differences in education – economic analysis of gender gap in earnings

2. Thorat and Newman (2009), Blocked by Caste: Economic Discrimination in Modern India, Oxford University Press.

2. Becker, Gary. (1971), Economics of Discrimination, 2nd edition, University of Chicago Press.

3. Boserup, E. (1970). Women’s Role in Economic Development, George Allen and Unwin, London.

4. Engles, F. (1985). The Origin of the Family, Private Property and the State, Progress Publications, Moscow.

5. Kabeer, N. (1994). Reversed Realities: Gender Hierarchies in Development Thought, Kali for Women, New Delhi.

6. Krishnaraj, M., R.M. Sudarshan and A. Shariff (1999). Gender, Population and Development, Oxford University Press, New Delhi.

7. Kuhn, A. and A.N. Wolpe (eds.). (1978). Feminism and Materialism, Routledge and Kegan Paul, London.

8. Mies, M. (1998). Patriarchy and Accumulation on a World Scale: Women in the International Division of Labour, Zed Books, London.

9. Mitra, A. (1979). Implications of Declining Sex Ratio in India’s Population, Allied, New Delhi.

10. Sen, G. and K. Brown (1987). Development, Crises and Alternative Visions, Monthly Review Press, New York.

11. Seth, M. (2000). Women and Development: The Indian Experience, Sage Publications, New Delhi.

12. Agnihotri, S.B. (2000). Sex Ratio in Indian Population: A Fresh Exploration, Sage Publications, New Delhi.

13. Desai, N. and M.K. Raj (eds.). (1979). Women and Society in India, Research Centre for Women Studies, SNDT University, Bombay.

14. Dwyer, D. and J. Bruce (eds.). (1988). A Home Divided: Women and Income in the Third World, Standard University Press, Stanford.

15. Government of India (1974). Towards Equality  Report of the Committee on the Status of Women in India, Department of Social Welfare, Ministry of Education and Social Welfare, New Delhi. 

16. ILO (1978). Women’s Participation in the Economic Activity of Asian Countries, ILO, Geneva.

Mid semester examination- 50 marks

End semester examination- 100 marks

The course is intended to inculcate in students an analytical understanding of structure and patterns of trade grounded on theoretical ideas; to explore the potential to expand trade and to suggest possibilities; accustom to the challenges that emerging countries face in the globalised scenario.

Ricardian and Neoclassical models of trade.

Heckscher-Ohlin and Related Models of trade and Empirical Tests.

Theoretical Perspectives and Empirical Studies; Increasing Returns, National Conflict, and the Gravity Model.

Perfect Competition, Imperfect Competition, and Market Failures.

Theoretical Perspectives; International Factor Mobility and Multinational Corporations.

The Balance of Payments and National Account; Determinants of Exchange Rates: Purchasing Power Parity; Sluggish Price and Overshooting Exchange Rate Model; Effect of Interventions in the Foreign Exchange Market.

The Exchange-Rate Regime Choice and a Common Currency Area: Policy Assignment Problems; International Policy Coordination; Choice of Exchange Rate Regimes; International Debt and Currency Crises.

The Role of the IMF and Other International Financial Organizations.

1. Winters, A. (W) International Economics, 4th edition.
2. Handbook of International Economics (HIE), Vol. 3, Elsevier Science B.V., Amsterdam 1997.
3. Jagdish N. Bhagwati, ed. International Trade: Selected Readings, 2nd edition (Cambridge, MA: MIT Press, 1987).
4. Jagdish N. Bhagwati, Arvind Panagariya, & T. N. Srinivasan, Lectures on International Trade, second edition (Cambridge, MA: MIT Press, 1998).
5. William R. Cline, Trade and Income Distribution (Washington, DC: Institute for International Economics, 1997).
6. Stephen D. Cohen, Robert A. Blecker, & Peter D. Whitney, Fundamentals of U.S. Foreign Trade Policy: Economics, Politics, Laws, and Issues, 2nd edition. (Boulder: Westview, 2003).
7. Susan M. Collins, ed., Imports, Exports, and the American Worker (Washington, DC: Brookings Institution, 1998).
8. Giovanni Dosi, Keith Pavitt, & Luc Soete, The Economics of Technical Change and International Trade (New York: NYU Press, 1990).
9. Ronald Findlay, Factor Proportions, Trade, and Growth (Cambridge, MA: MIT Press, 1995).
10. Dominique Foray & Christopher Freeman, eds., Technology and the Wealth of Nations: The Dynamics of Constructed Advantage (London: Pinter, 1993).
11. Ralph E. Gomory & William J. Baumol, Global Trade and Conflicting National Interests (Cambridge, MA: MIT Press, 2000).
12. Gene M. Grossman, ed., Imperfect Competition and International Trade (Cambridge, MA: MIT Press, 1992).
13. Gene M. Grossman & Elhanan Helpman, Innovation and Growth in the Global Economy (Cambridge, MA: MIT Press, 1991).
14. Gene M. Grossman & Kenneth Rogoff, eds., Handbook of International Economics, vol. 3, (Amsterdam: North-Holland, 1995).
15. Ronald W. Jones & Peter B. Kenen, eds., Handbook of International Economics, vol. 1,
16. International Trade (Amsterdam: North-Holland, 1984).
17. Paul R. Krugman, Rethinking International Trade (Cambridge, MA: MIT Press, 1990).
18. Paul R. Krugman, Geography and Trade (Cambridge, MA: MIT Press, 1991).
19. Andrea Maneschi, Comparative Advantage in International Trade: A Historical Perspective (Edward Elgar, 1998)
20. Dani Rodrik, Has Globalization Gone Too Far? (Washington, DC: Institute for International Economics, 1997).

CIA II (Mid Semester): Out of 50 Marks

CIA III: Out of 20 Marks

End Semester Examination: Out of 100 Marks

This course covers time series and panel data econometrics with focus on applications in the field of macroeconomics and international finance. The course covers univariate and multivariate models of stationary and nonstationary time series in the time domain. The objective of the course to develop a comprehensive set of tools and techniques for analyzing various forms of univariate and multivariate time series, and for understanding the current literature in applied time series econometrics.

• The students can apply advanced econometric techniques for analyzing current research topics in applied economic and finance research.
• To assist students in getting comfortable with applied time series models and panel data models through EVIEWS and STATA statistical packages to manage and analyze data.
• To provide students with thorough and sound understanding of the essential theoretical base of econometric modeling and broad applications of time-series and panel data econometrics.

Stochastic processes - Properties of stochastic process. Time series as a discrete stochastic process– Stationarity- Characteristics of stochastic component of time series (mean, autocovariation and autocorrelation functions). Lag operator- Unit root tests - Deterministic and stochastic trend models-Augmented Dickey Fuller test – Phillips-Perron test-Estimation and testing.

Dynamic simultaneous equations models- Granger causality test - Vector Auto Regressive (VAR) models-Impulse Response Function (IRF)-Variance Decomposition Analysis - Structural Vector Auto Regressive (SVAR) models– Estimation and Diagnostic Checking.

Spurious regression- Cointegration- Granger representation theorem -Vector error correction models (VECMs)- Structural VAR models with cointegration - Testing for cointegration – Engle and Granger (1987) and Johansen and Juselius (1990) - Estimating the cointegrating rank- Estimating cointegrating vectors.

Volatility Clustering- Leverage Effects- Modeling Volatility- AutoRegressive Conditional Heteroscedasticity (ARCH) Model- Generalised AutoRegressive Conditional Heteroscedasticity (GARCH) Model - Extensions to GARCH-Exponential GARCH and Threshold GARCH models.

Introduction to Panel Data - Types of panels- Balanced and Unbalanced Panel Data-Benefits and drawbacks of longitudinal data. Basic models-Pooled OLS-Fixed effects-Random effects Model-Estimation and testing- Fixed vs Random Effects Model -Hausman specification test.

1. Kerry Patterson, An Introduction to Applied Econometrics: A Time Series Approach. Palgrave Macmillan, 2000.
2. Walter Enders, Applied Econometric Time Series. New York: John Wiley & Sons, Inc., 1995.
3. Chris Brooks, Introductory Econometrics to Finance - Cambridge University Press, 2002
4. B. H. Baltagi, Econometric Analysis of Panel Data, 4th ed., John Wiley, New York, 2008.

1. J.D. Hamilton, Time Series Analysis, Princeton, NJ: Princeton University Press, 1994.
2. W. Greene, Econometric Analysis, Macmillan, 1993.
3. R.A. Johnson, and D.W. Wichern, Applied Multivariate Statistical Analysis, Prentice Hall, 1988.

CIA 2 - 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.

By completing this course the student will be able to:

(1)   Compare current economic practices with those of original thinkers in the field.

(2)   Trace the progress of ideas and development of the methodology in economics.

(3)   Better locate research output in a relevant body of literature.

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 James Mill, 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 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.

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. 

CIA - 1 - 20 Marks

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

CIA - 3 - 20 Marks

ESE - 100 Marks Examination - 3 hours

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.

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- Relationship between wages and 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 theoires- Portfolio theories of demand for money- Baumol-Tobin approach to transaction demand for money- Tobin's portfolio optimisation 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 substituion of labour- 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 Classsical Macroeconomics- Stagflation trend- The supply side economics - Major Implications 

Rationale and impact of reforms since 1991 on BOP, Problems of Indian's international debt,  export policies, Working and regulation of MNCs in India- The issues and policies towards financial stability- International Reserves, Monetary integration- European Monetary System- Contemporary Macroeconomic debates in India and the world

2.      Dornbusch, Fischer, Startz. (2010). Macroeconomics. 11th  Edition, Tata Mc Graw Hill.

3.      Graeme Chamberline & Linda Yueh (2006). Thomson Learning.

4.      Burda and Wyplosz (2009). Macroeconomics: A European Text, Fifth Edition, Oxford University Press, New York.

5.      M. Maria John Kennedy (2011). Macroeconomic Theory, PHI Learning Private Limited, New Delhi.

6.      H.L.Ahuja. (2012). Macroeconomics: Theory and Policy. 18th Revised Edition, Sultan Chand Publishers.

7.      Brain Snowdown, Howard Vane and Peter Wynarczyk. (1995). A Modern Guide to Macro Economics: An Introduction to Competing School of Thought.

8.      Edward Shapiro. (2011). Macroeconomic Analysis. 5th Edition, Galgotia Publication Ltd.

9.      Ackley.G. (1978).  Macro economics: Theory and Policy, Macmillan, NewYork.

CIA II   : 50 Marks (Mid Semester Examiniation)

CIA III  : 20 Marks

ESE       : 100 Marks

Course on Security Analysis and Portfolio Management is provided as an elective subject to the students of MA (Applied Economics). The course is intended to provide deeper insights into the function of markets, its valuation techniques, the concepts of portfolio management with the techniques of risk diversification.

Measures of Return and Risk: Computing mean historical returns, calculating expected rates of return, measuring the risk of expected rates of return and the risk measures for historical returns; Determinants of required rates of return:  Risk free rate, risk premium, fundamental risk Vs. systemic risk; Relationship between Risk and Return: Security Market Line (SML), movements along SML and changes in the slope of SML.

Efficient Market Hypothesis: Weak form, Semi strong form and Strong form, its tests and results; Efficient Markets and Technical analysis; Efficient Markets and Fundamental analysis; Efficient Markets and Portfolio Management.

Fundamental Analysis: Economic factors - monetary variables – interest rates- inflation- exchange rate- fiscal measures- GDP- other economic factors.

Industry Analysis: Why industry analysis, the business cycle and industry analysis - evaluating the industry life cycle.

Company Analysis: Company analysis versus the valuation of stock, Competition- growth of sales- earnings – dividend policy – restructuring policy – capital gearing- mergers and acquisition- earning surprise; SWOT analysis - Tenets of Warren Buffet; Analysis of Growth companies.

Market Related Factors January effect- noise trading- trends; Economics, Industry and Structural links to Company analysis, Firm’s competitive positioning.

Underlying assumptions of technical analysis, advantages, challenges; Technical trading rules and indicators.

Theory of valuation: stream of expected cash flows, required rate of return, investment decision process- comparison of estimated values and market prices; Valuation of alternative investments: valuation of bonds, approaches to valuation of equity; Present value of operating free cash flows, Present value of free cash flows to equity; Relative valuation techniques: Earnings Multiplier model, Price/Cash flow ratio, Price/Book value, Price/Sales ratio.

Markowitz Portfolio Theory: alternative measures of risk, expected rates of return, variance of returns for individual investment and for a portfolio, Standard deviation of a portfolio, a three asset portfolio, efficient frontier; Capital Market Theory: background and assumptions for Capital Market Theory, Risk free asset; The Market Portfolio, CAPM, SML, relaxing assumptions for CMT; Arbitrage Pricing Theory: empirical test for APT, Multifactor Models.

Passive Vs. Active Management; Index portfolio construction techniques, tracking error, methods of index portfolio investing; Active equity portfolio management strategies: fundamental strategies and technical strategies, anomalies and attributes; Treynor portfolio performance measure; Sharpe portfolio performance measure; Jensen portfolio performance measure; The information ratio performance measure; application of portfolio performance measures.

Organization and Management of Asset Management Companies; Characteristics of Hedge Funds, its strategies and performance.

1) Donald E. Fischer and Ronald J. Jordan, Security Analysis and Portfolio Management, Prentice Hall India, latest edition.

2) Prasanna Chandra, Investment Analysis and Portfolio Management Tata McGraw Hill, latest edition.

3) Frank K. Reilly and Keith C. Brown, Investment Analysis and Portfolio Management, Cengage Learning, latest edition.

4) Alex Kane, Alan J Marcus, Pitabas Mohanty and Zvi Bodie, Investments, Tata McGraw Hill, latest edition.

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

1) Burton G. Malkiel, A Random Walk Down Wall Street, W.W. Norton & Company, 2003.

2) David G. Luenberger, Investment Science, Oxford University Press, USA, 1997.

3) Hull, John C., Options, Futures and Other Derivatives, Pearson Education, 6th edition, 2005.

4) Richard A. Brealey and Stewart C. Myers, Principles of Corporate Finance, McGraw-Hill, 7th edition, 2002.

5) Stephen A. Ross, Randolph W. Westerfield and Bradford D. Jordan, Fundamentals of Corporate Finance. McGraw-Hill, 7th edition, 2005.

6) Thomas E. Copeland, J. Fred Weston and Kuldeep Shastri, Financial Theory and Corporate Policy, Prentice Hall, 4th edition, 2003.

CIA II (Mid Semester): Out of 50 Marks

CIA III: Out of 20 Marks

End Semester: Out of 100 Marks

The course by using economic theory and analysis trains the students to understand how gender and caste differences lead to differences in outcomes with respect to education, career, earnings and roles in the family and how such differences impact female mortality, fertility, economic status and work participation.

Historical and current trends in wages, occupational patterns and unemployment rates by gender, caste and minority religious groups- Economic explanations for gender and caste based disparities in the labour market- Empirical evidence from economic literature- Gender budgeting: Meaning, scope and data types.

Personal –prejudice models: Employer, Customer and Employee discrimination- Statistical discrimination- Non-competitive models of Discrimination- Measures taken to eliminate discrimination- Gender-caste development index- Intersections of gender and caste.

Overview of marriage and family structure; The economics of marriage, Production, specialization and gains to marriage, Supply and demand model of marriage, changes in demand and supply, Marriage and the earnings of men, Divorce and its consequences- Decision making by women; Factors affecting decision making by women, property rights, access to and control over economic resources, assets; Power of decision making at household, class, community level; Economic status of women and its effect on work-participation rate, income level, health, and education in developing countries and India.

Concept and analysis of women’s work: Valuation of productive and unproductive work; visible and invisible work; paid and unpaid work; economically productive and socially productive work – Women’s labour force participation; Economic model of women’s labour force participation – Effect of changes in wages, income and household productivity- The gender gap in earnings- Occupational segregation – gender differences in education – economic analysis of gender gap in earnings

2. Thorat and Newman (2009), Blocked by Caste: Economic Discrimination in Modern India, Oxford University Press.

2. Becker, Gary. (1971), Economics of Discrimination, 2nd edition, University of Chicago Press.

3. Boserup, E. (1970). Women’s Role in Economic Development, George Allen and Unwin, London.

4. Engles, F. (1985). The Origin of the Family, Private Property and the State, Progress Publications, Moscow.

5. Kabeer, N. (1994). Reversed Realities: Gender Hierarchies in Development Thought, Kali for Women, New Delhi.

6. Krishnaraj, M., R.M. Sudarshan and A. Shariff (1999). Gender, Population and Development, Oxford University Press, New Delhi.

7. Kuhn, A. and A.N. Wolpe (eds.). (1978). Feminism and Materialism, Routledge and Kegan Paul, London.

8. Mies, M. (1998). Patriarchy and Accumulation on a World Scale: Women in the International Division of Labour, Zed Books, London.

9. Mitra, A. (1979). Implications of Declining Sex Ratio in India’s Population, Allied, New Delhi.

10. Sen, G. and K. Brown (1987). Development, Crises and Alternative Visions, Monthly Review Press, New York.

11. Seth, M. (2000). Women and Development: The Indian Experience, Sage Publications, New Delhi.

12. Agnihotri, S.B. (2000). Sex Ratio in Indian Population: A Fresh Exploration, Sage Publications, New Delhi.

13. Desai, N. and M.K. Raj (eds.). (1979). Women and Society in India, Research Centre for Women Studies, SNDT University, Bombay.

14. Dwyer, D. and J. Bruce (eds.). (1988). A Home Divided: Women and Income in the Third World, Standard University Press, Stanford.

15. Government of India (1974). Towards Equality  Report of the Committee on the Status of Women in India, Department of Social Welfare, Ministry of Education and Social Welfare, New Delhi. 

16. ILO (1978). Women’s Participation in the Economic Activity of Asian Countries, ILO, Geneva.

Mid semester exam: 50 marks

End semester exam: 100 marks

The course aims to explain the principles and methods of behavioral economics while contrasting them with standard economic models. It will also provide an understanding of the policy implications of behavioral approaches through case studies.

Nature of Behavioral economics -Methodological approach: Theory and evidence -Origins of behavioral economics- Neo-classical and behavioral approaches to studying economics- Relationship with other disciplines- Application: Case studies on Loss aversion, Money Illusion, Altruism.

Values, Preferences and Choices: The standard model- Axioms, assumptions and definitions- The neuroscientific basis of utility- Application: Case studies on Abstention, Environmental Protection and Drug Addiction

Beliefs, Heuristics and Biases: The standard model- Probability estimation- Self-evaluation bias- Projection bias- Causes of irrationality- Application: Case studies on Fakes and Honesty, Celebrity contagion and imitative magic.

Decision making under risk and uncertainty: Prospect theory- Reference points- Loss Aversion- Shape of utility function- Decision weighting- Application: Case studies on Endowment Effect and Loss Aversion.

Mental accounting: Nature and components of mental accounting- Framing and editing- Budgeting and fungibility- Choice bracketing and dynamics-Policy implications- Application: Case studies on Equity Premium Puzzle, Consumer spending and housing wealth.

The Discounted Utility Model: Origin and features of Discounted Utility Model (DUM)- Methodology- Anomalies in DUM- Alternative Intertemporal Choice Models: Time preference- Time inconsistent preferences- Hyperbolic discounting- Application: Case study on the savings problem and Desire for rising consumption profiles.

Nature of behavioral game theory- Mixed strategies- Bargaining- Iterated games- Signaling- Learning- Application: Case studies on Market entry in Monopoly and Impasses in bargaining and self-serving bias.

The standard model- Nature of social preferences- Factors affecting social preferences- Modeling social preferences- Inequality aversion models- Reciprocity models- Application: Case studies on Public goods and free riding.

2. Erik Angner, A Course in Behavioral Economics, Palgrave Macmillan 2012.

3. Dan Ariely, “Predictably Irrational: The Hidden Forces that Shape Our Decisions”, Harper Collins 2009,

4. Richard Thaler and Carl Sunstein, “Nudge: Improving Decisions about Health, Wealth and Happiness”, Penguin UK 2009.

5. Kahneman, Daniel and Amos Tversky. Choices, Values and Frames, New York: Russell, Sage Foundation; Cambridge, U.K.; New York: Cambridge University Press, 2000.

6. Camerer, Colin, Loewenstein, George, and Rabin, Matthew (eds.), Advances in Behavioral Economics, Russell Sage Foundation and Princeton University Press, 2003.

7. Colin Camerer, Behavioral game theory: experiments in strategic interaction, Princeton University Press, 2003.

8. Diamond, P. and H. Vartianen, Behavioral Economics and Its Applications, Princeton University Press, 2007.

9. David Laibson, The Psychology of Savings and Investment;  A series of three talks at the London School of Economics and Political Science, Nov 19–21, 2007.

10. David Laibson, "Golden Eggs and Hyperbolic Discounting" (1997), Quarterly Journal of Economics. 

11. Raj Chetty, Consumption Commitments and Habit Formation, NBER Working Paper 10970, 2014.

Mid Semester examination- 50 marks

End Semester examination- 100 marks

This course will apply economic theory to issues of human capital including various other topics like fertility, discrimination, education, health and migration.  Students will also be exposed to the empirical testing of hypotheses thereby helping them to understand the validity of various theories.

The students will acquire

1. A sound conceptual knowledge base necessary to fulfill the role of expert in economics conscious of the broad issues of society

2. The capability to understand the nature of social and economic issues confronted in developing societies the skills and techniques to find solutions to the problems of education and health.

The economic way of looking at human behaviour- Theoretical analysis of investment in human capital.

The quantity-quality fertility model -The investment decision- Intergenerational income mobility and inequality.

Returns to education: introduction and overview- Returns to education: early approaches - Returns to education: twin/sibling models; some examples and critiques- Returns to education: other approaches; some examples and critiques-Returns to education: variation by type of educational institution- Returns to education: variation by race and sex

Introduction- Money doesn't matter- Money matters

The demand for health and health behaviors- Returns to birthweight- Economic status and children’s health- Adult disability and earnings

Cognitive and non-cognitive factors in the human capital model-Estimation of the human capital development function.

1. Angrist, Joshua D., Victor Lavy, and Analia Schlosser, 2005. “New Evidence on the Causal Link between the Quantity and Quality of Children.” NBER Working paper No. 11835.
2. Becker, Gary S., 1993, "Nobel Lecture: The Economic Way of Looking at Behavior," Journal of Political Economy 101(3), 385-409.
3. Gary S. Becker, "Investment in Human Capital: A Theoretical Analysis," 1962. Journal of Political Economy, Vol. 70(5, Part 2: Investment in Human Beings; October), 9-49.

1. Becker, Gary S., 1993, "Nobel Lecture: The Economic Way of Looking at Behavior," Journal of Political Economy 101(3), 385-409.

2. Gary S. Becker, "Investment in Human Capital: A Theoretical Analysis," 1962. Journal of Political Economy, Vol. 70(5, Part 2: Investment in Human Beings; October), 9-49.

3. Rosenzweig, Mark R., and Wolpin, Kenneth I., 1980, "Testing the Quantity-Quality Fertility Model: The Use of Twins as a Natural Experiment." Econometrica 48(1), 227-40.

4. Hanushek, Eric A., 1992, "The Trade-Off between Child Quantity and Quality." Journal of Political Economy 100 (February), 84-117.

5. Angrist, Joshua D., Victor Lavy, and Analia Schlosser, 2005. “New Evidence on the Causal Link between the Quantity and Quality of Children.” NBER Working paper #11835.

The students MA Applied are expected to complete an internship with an Academic (Research) institute/NGO/firm during the summer vacation before joining the programme in the third Semester. This internship provides the students an opportunity to be a part of these productive enterprises in order to understand the organizational structure and to participate in the work that is being carried out. The students are expected to expand their theoretical understanding to the practical scenario of production, marketing, distribution and consumption

The students of MA Applied Economics are expected to complete an internship with an Academic (Research) institute/NGO/firm during the summer vacation before joining the programme in the third Semester. This internship provides the students an opportunity to be a part of these productive enterprises in order to understand the organizational structure and to participate in the work that is being carried out. The students are expected to expand their theoretical understanding to the practical scenario of production, marketing, distribution and consumption.The students are supposed to identify the productive enterprise of their choice and finalise the same in consultation with the Department. The Department will help the students if they need any assistance in identifying the organisation. The students are encouraged to intern with an organisation as per their area of interest/specialisation. 

This internship is evaluated out of 50 marks. Successful completion of the internship will earn the students 2 credits per semester. The students will be evaluated out of 50 marks on a continuous basis, the criteria of which are given below.

The students are expected to put in a minimum of 25 days of work with a minimum spread of 4 weeks commencing from April 1, 2014. The last date for completing the internships will be May 31, 2014. 

The guidelines for the internship are as follows:

1. The students are expected to prepare a preliminary report of the organisation in not less than three pages. It should be submitted through LMS to the faculty in charge. This report will have to be submitted within the first one week of internship. Along with this all the students will have to submit a weekly report through LMS regarding the progress of the internship. The students will be evaluated out of 10 marks on the basis of the preliminary report (out of 5 marks) and weekly reports (out of 5 marks). The late submission of reports will affect the marks awarded. 

The preliminary report should include:

(a) a brief profile of the organization including,

(b) An introduction to the organisation, its location

(c) Background information which should contain a brief history of the organisation

(d) Organizational structure in the form of a flow chart (It depends on the nature of the enterprise/NGO/Institute. For instance it is not necessary in the case of a research institute).

The reports will be evaluated on the basis of the quality of reporting, presentation style and timely submission.

2.The students are supposed to submit the detailed internship report of not less than 3000 words, to the department at the end of the internship. It should carry the activities and the learning outcome of the students. Some of the guiding principles for students are given below. 

a.The report should be on a prescribed format. The introductory section should include the name of the student, the name of the organization, profile of the organization and the names of the faculty supervisor as well as the name of the supervisor in the organisation.

b.These reports should include details of the activities in the organisation, connection of class room learning with practical life, the contributions to the organisation, learning outcome etc.

c.The contributions made by the student will vary on the basis of the organisation such as,

(a) Preparing reports

(b) Interviewing people

(c) Technical support

(d) Data analysis

(e) Administrative support

(f)Market analysis

(g) Application of theory in practice

(h) Field visits

The students will be evaluated out of 25 marks on the basis of the work done as well as the quality of the reports made. The confidential feedback received from the organisation will influence the final grade given.

The final submission of this report will be on Thursday, 31 May, 2014.

3.The third component of evaluation is the presentation made by the interns  to a panel of faculty members using power point slides on the internship covering the following areas:

(a) Profile of the organization

(b) Work undertaken by the organization and a review of development programs

(c) Contribution made by the intern

(d) Critical appraisal of the effectiveness of the strategies implemented 

(e) An appraisal of the work done by the intern and an evaluation of his/her contributions

(f) Students self evaluation

The student will be evaluated out of 15 marks by the faculty members on the basis of the presentation, content, answers to the questions and the learning outcomes of the intern. The final mark will be the aggregation of all the components mentioned above.

Preliminary report: 5 marks

Final report: 20 marks

Internship presentation: 20 marks

This paper is offered as a core paper in the Fourth semester of MA Applied Economics. It teaches the decision making tools in Quantitative Techniques that are applied in economics and business analysis.

This course introduces students to the theoretical framework of operations research models. The course is intended to provide an in-depth understanding of the methodology of OR and its applications in diverse fields in making effective decision making.

Brief history- stages of development- definitions- OR tools.

Fundamentals of L P models - Graphic solutions of LP models – feasible solutions- infeasible solutions- unbounded solutions- Maximization of Objective Functions - Minimization of Objective Functions - Simplex Method with two variables- Simplex Method with more than two variables

Transportation algorithm- Basic feasible solution of TP- North West Corner Rule- Least Cost method- Vogel’s Approximation Method – Optimality test- Stepping Stone method – Modi method - Problems

Hungarian Assignment - Problems – Optimality tests- problems - Maximization assignment problem - crew assignment problems

Net work models - CPM -  PERT - Determination of Earliest Expected and Latest Allowable Times - Determination of Critical path – PERT Cost- Scheduling of a project- Application of PERT- Critical Path Method- Problems

Structure of Queuing models – Parameters of Queue disciplines – Problems - Waiting Line models

Basic Features of inventory decisions- EOQ Models – Problems – how to order – Wen to order - Quantity Discounts- EPQ models – Dynamic Inventory Models – problems - ABC Analysis

Basic concepts-definition- managerial applications- two-person’s zero-sum games.

1. ND Vohra, Quantitative Techniques in Management, Mc Graw Hill, 4th Edition, New Delhi.

1. C. R. Kothari, Quantitative Techniques, Vikas Publications, New Delhi.
2. W.J. Baumol, Economic Theory and Operation Analysis, Englewood Cliff, Prentice Hall, NJ.
3. Ackoff R L and Saienni M W, Fundamentals of Operation Research, Wiley, New York.
4. Hadley, G. Linear programming, Addison Wiley, Massachusetts.
5. Morse P M, Queeing, Inventory and maintenance, Wiley, New York.

CIA 2- midsemester examination- 50 marks

CIA 3- 20 marks

This course explores how labor processes operate and how market forces, institutions and sociological forces shape labor market performance and outcomes from a theoretical and empirical perspective.

Labour as a unique factor of production; Labour Market outcomes- Changing level and composition of labour supply and labour demand, structure of earnings, labor management relations and collective bargaining, level and composition of unemployment; Labour market process- market forces, institutional forces and sociological forces; Evolution of labour market theory- the Neoclassical school and the Institutional school.

Supply of labour: The Theory of Labour Leisure Choice; Hours of work and Non labour income; Substitution and Income effects of Wage change; Labour force participation rates- Changes in male and female work participation rates; Household Model of Labor Supply- Life Cycle Allocation of Time, Bargaining Model of Family Labour Supply; Effects of Social Programs and Income transfers on Labour Supply.

Demand for Labour: The Marginal Productivity Theory of Labour Demand; The Elasticity of demand for labour - Hicks-Marshall rules of derived demand for labour; Consumer expenditure patterns and labour demand; Labour demand over business cycles; Labour demand in the long run- Equilibrium level of employment with isocosts and isoquants; Technological change and labour demand.

Wage determination in competitive markets; Wage determination in monopsony market; Minimum wages- Effect on wage and employment determination in competitive and monopsony markets; Segmentation and Dual Labour Market Theory; Wage differentials- Education, Training and Earnings Differential- The Theory of Human Capital, Costs and benefits of college education and On-the-Job training- Occupational Wage differentials; Theory of Compensating Wage Differentials; Earnings differentials by Gender- Wage and wage share in post-reform India.

Measurement of unemployment; Conceptual issues- Causes of unemployment; Job search theories- Stigler Model, McCall Model- Rigid wages- Efficiency Wages, Labour force participation rates in India, Unemployment trends in India- Sectoral employment trends in India: Rural-Urban, Organised- Unorganised, Public-Private.

Demand for union services- Costs and benefits of union membership- Supply curve of union membership- Equilibrium level of union membership- Union-management bargaining process: A model of bargaining process- Outcomes of bargaining process- Methods of dispute resolution- Dimension of union wage effect - Measuring the union-nonunion wage differential- Union impact on nonwage outcomes.

CIA II Mid semester exam: 50 marks

End semester exam: 100 marks

• To help the students learn more about the fundamental public policy questions of the day and the key theoretical and empirical tools of policy analysis in economics.
• To understand the economic challenge of allocating limited resources among competing uses in a global economy and across different market structures under conditions of limited information.
• To understand the role of government in the economy in the context of business activity, income distribution, economic growth, globalisation and market failure.

Public sector in the economy-functions; allocation, distribution, public goods, private goods and merit public goods; Market failure- Information asymmetry, Market signaling; Externalities- basic analysis and Coase theorem-Pigovian taxes.

Allocation of resources; Private and public mechanism for allocating resources - Problems of preference revelation and aggregation – Voting systems; Arrow’s Impossibility theorem- Political Equilibrium - Voluntary exchange model and Samuelson’s impossibility of decentralised provision of public goods; Tiebout model.

Theories of public expenditure; Wagner’s law of increasing state activities; Peacock Wiseman hypotheses-Social Cost benefit analysis-Criteria for public investment-Project valuation, Estimation of costs, discount rate-Economic reforms and control of public expenditure in India- Case studies on project evaluation.

Taxes-types; Canons- VAT and GST- Approaches to Equity principle in taxation: Benefit principle; Ability to Pay Principle- Impact and Incidence of taxation; Modern theory of Incidence- major trends in tax revenue of the central and state governments in India- Tax Reforms in India; Chelliah Committee Report.

Classical and Keynesian approaches to public debt; Analytical concepts of public debt; Modern theory of public debt; Sources of public debt; Methods of debt redemption; Principles of debt management and repayment-Growth of India’s Public debt-Zero based budgeting-Programme budgeting.

Principles of federal finance - Assignment of Functions & Devolution of Resources and Grants; Vertical and Horizontal Imbalance- Methods of Inter governmental resource transfer-Finance Commission- Recommendations Finance Commission – Centre state financial relations in India.

CIA II : 50 Marks (Mid Semester Examination)

CIA III: 20 Marks

End Semester Examination : 100 Marks

This course aims to explore the issues and problems and applications that arise from international financial trading relations between nations. Topics such as organization of foreign exchange markets, determination of exchange rates, the fundamental principles of international finance, foreign exchange risk and exposure are also covered.

Financial Order in 1870-1914 – Interwar period 1919-1939 – Bretton Woods era 1945-1971 – International Monetary Fund - Washington Consensus 1971 –Basel Accords -  Understanding Currency Crisis - East Asian Crisis – Euro Zone Crisis – Global Financial Crisis - Towards a New Financial Word.

Participants in Forex Market – Alternative Exchange Rate Regimes – Forward Exchange Rate – interaction of hedgers, arbitrageurs and speculators - Flexible Exchange Rate Regime – Pegged float – Fixed Float – Managed Float - Market Size and Liquidity –Determinants of Foreign Exchange Rates – Economic Factors – Technical Trading Considerations – FCCB - Euro Bonds – ADRs – GDRs – IDRs.

Nature of exchange rate risk and exposure – real changes in exchange rate – Forex Exposure – Transaction Exposure – Translation Exposure – Operating Exposure – Exposure Netting – Currency Risks - Currency Swaps – Forex Beta – Operational Hedging – Financial Hedging – Management of Economic Exposure – Forex Exposure for MNCs- Money market Hedge - Cost of forward hedging – benefits of forward hedging – payoff profiles of different hedging technics – company hedging policy – exchange rate forecasting and speculation.

Foreign exchange regulation Act (FERA) – Foreign exchange Management Act (FEMA) – Forex Management Strategy – Monetary Policy Interventions –BoP and Forex Rate – International Capital Flows – currency convertibility - Foreign Remittances, FII & FDI in Forex Markets.

Currency Futures, Options and Swaps - Forward Contract – Spot Forward  Parity – Cost of Carry – Forward Pricing Formula – Margin Trading – Currency Derivatives -  Futures Contracts – Using Currency Futures for Hedging – Interest Rate Futures - Currency Option – Contract Specification – Option Styles – Black Sholes – Stochastic Volatility – Monte Carlo Models – Counter Parity Risk – Option Strategies – Swap Market – Interest Rate Swaps – Currency Swaps- Equity Swaps – Commodity Swaps – Libor – Credit Default Swap– Arbitrage.

CIA II [MID SEMESTER EXAM] - 50 Marks

CIA III-20 Marks

It is designed to cover essential tools for workingwith financial data, including the return forecasting, volatility and econometrics of asset pricing, such as testing the market models.We focus on the empirical techniques which are mostly used in the analysis of financial markets and how they are applied to actual data.  The course starts with the overview of financial data. It covers the event-study methodology, and continues with testing market models and stochastic discount factor models. We then proceed to analyzing return predictability, volatility effects of the market data (asymmetric GARCH), and market interdependence. A special attention is paid to nonlinear models, from basic threshold formulations to more advanced techniques like Markov switching model and Kalman filter. All the models are accompanied with real-data examples in standard computer packages.

Introduction - First Look at the Data – Prices, Returns, Simple Returns, Log Returns, Excess Returns, Yields, Dividends, Spreads, Financial Distributions, Transactions, - Summary Statistics Univariate, Bivariate - Percentiles and Computing Value-at-Risk - Efficient Markets Hypothesis and Return Predictability, Efficient Market Hypothesis and Variance Ratio Test, Exercises

Applications to the Investment Management Process, A Test of Strong-Form Pricing Efficiency, Tests of the CAPM , Using the CAPM to Evaluate Manager Performance: The Jensen Measure, Evidence for Multifactor Models, Benchmark Selection: Sharpe Benchmarks, Return-Based Style Analysis for Hedge Funds, Hedge Fund Survival, Bond Portfolio Applications

ARMA model building, Estimation of ACF, PACF, Model building, Integrated model building, Forecasting. Non-linearity, Trends and Volatility in financial data: Non-linear dynamics and chaos, Testing for non-linearity, Linear expansion test , Correlation dimension test , BDS test, The NEGM test , The White test , The Kaplan test , Application to financial data

Asset Pricing Applications, Equity Asset Pricing Models, Geometric Brownian Motion , Black–Scholes , A Multivariate Version of Merton’s Model , Time-Varying Equity Premium , Log-Stochastic Volatility Models , Alternative Stochastic Volatility Models, Term Structure Models, Vasicek’s Model

Quantile Regression, Markov Switching Models, Modelling Ultra High Frequency Data, Cases

Introduction, Returns Models, Goodness of Fit, Forecasting, Simulating Critical Values for Test Statistics Specification Tests for Regime Switching Models, Volatility Models, Forecasting the Tails of a Distribution, Operational Evaluation: Portfolio Optimization, Hedging with Futures Value-at-Risk Measurement , Trading Implied Volatility , Trading Realized Volatility Pricing and Hedging Options.

1.      Christopher Dougherty, Introduction to Econometrics, Oxford University Press, 3^rdedition, Indian Edition, 2007.

1.      Jan Kmenta, Elements of Econometrics, Indian Reprint, Khosla Publishing House,2^ndedition, 2008.

2.      Stan Hurn, Vance Martin, Peter Phillips and Jun Yu, Financial Econometric Modeling

3.      Hamilton, J. D., Time Series Analysis, Princeton University Press, 1994

4.      Peijewang “Financial Econometrics: Methods and Models” Rout ledge – Taylor & Francis Group

CIA II Mid semester examination- 50 marks

End semester examination-100 marks

Climate change can be viewed as a fundamentally economic problem: Emissions of greenhouse gases have no economic value, so they are freely overproduced, to the entire planet’s detriment. However, climate change has a unique set of attributes that make standard economic analysis very difficult to apply. It is a global problem requiring unprecedented international cooperation. It is pervaded by uncertainty in every step of the process of translating global emissions into local damages. The costs and benefits of its mitigation are highly mismatched geographically as well as temporally. And its damages are largely irreversible.

1. To articulate key issues relating to climate change

2. Explain how Economics can offer public policies aimed at mitigating the effects of climate change

3. To apply different instruments of Economics in designing approrpiate climate change policies

4. Outline climate change issues from a developing country's perspective.

The science of climate change; The Nature of the climate problem; The problem of the Commons; concepts - externalities and public goods, discounting, uncertainty, irreversibility, regime shifts, positive and negative feedbacks

Efficiency, environmental policy instruments – emissions trading, carbon tax, emission trading versus tax; stock pollutants and discounting; decisions under risk and uncertainty

Climate change impact assessment – implications for agriculture, sea level rise and health; vulnerability assessment; economics of adaptation; measurement of adaptation cost; issues in financing adaptation; case studies

Catastrophic and non-catastrophic; Case studies - The Impact of Climate Change on Indian agriculture; economic approach to valuing climate change damages

Criteria for distribution of emission reduction burden; reducing emissions from forest degradation and deforestation (REDD), distribution criteria for adaptation fund; inter and intra-generational justice; discounting in climate change context; calculating your carbon footprints.

1.      Stern, N., The economics of climate change – The Stern Review, Cambridge University Press, 2006.

1.      Intergovernmental Panel on Climate Change – Fourth Assessment Report, 2007

2.      Stern, N., The economics of climate change – The Stern Review, Cambridge University Press, 2006.

3.      Nordhaus, W.D., Managing the Global Commons: The Economics of Climate Change, MIT Press, 1994.

4.      Nordhaus, W. and J. Boyer, Warming the World: Economic Models of Global Warming, MIT Press, 2003.

5.      Toman, M.A., U. Chakravorty, and S. Gupta, India and Global Climate Change: Perspectives on Economics and Policy from a Developing Country, RFF Press, 2003.

6.      Nordhaus, W. (2008), A Question of Balance: Weighing the Options on Global Warming Policies, Yale University Press, New Haven.

7.      Stavins , Robert, N. (Eds) Economics of the Environment, WW Norton, 2012. Sixth Edition

8.      Mann, Michael E. and Kump, Lee. R., Dire Predictions: Understanding Global Warming: The illustrated guide to the findings of the IPPC, Pearson Books, USA, 2009

9.      Stern, Nicolas, The Economics of Climate Change: The Stern Review, 2006.

10.  Akhurst, M., et al. (2003). Greenhouse gas emissions trading in BP. Energy Policy, Vol. 31, pp. 657-663

CIA II MID SEMESTER EXAM: 50 MARKS

END SEMESTER EXAM: 100 MARKS

To give the students a historical perspective of present day economic practices and problems and their non-economic sources of influence and inculcate an appreciation of the importance of history. Introduce the students to the breadth of subjects studied and methods employed in economic history research.

Explaining world inequality with pre-historical events; the Malthusian Trap and the modern escape from it.

The birth of economics; transition from feudalism to capitalism to socialism and their reasons.

The British industrial revolution; third world industrialization; the global dynamics of industrialization; explanations for the Great Depression.

The Bullion system, the gold standard, manias and panics.

Economic History of Institutions; Culture

1.      Diamond, J. M. (1998). Guns, germs, and steel: A short history of everybody for the last 13,000 years. Random House.

2.      Clark, G. (2008). A farewell to alms: a brief economic history of the world. Princeton University Press.

1.      Landes, D. S. (2000). Revolution in time: Clocks and the making of the modern world.

2.      Huberman, L. (1968). Man’s Worldly Goods (Vol. 70). NYU Press.

3.      Hobsbawm. E. J. (1975). Age of Capital: 1848-1875. Abacus.

4.      Mokyr, J. (2009). The Enlightened Economy: An Economic History of Britain 1700-1850. Yale University Press.

5.      Singh, A. (1990). The State of Industry in the Third World in the 1980s: Analytical and Policy Issues (No. 137). University of Notre Dame, Helen Kellogg Institute for International Studies.

6.      Eichengreen, B. J., & Flandreau, M. (1997). The Gold Standard in Theory and History. Psychology Press.

7.      McCloskey, D. N., &Zecher, J. R. (2013). How the Gold Standard Worked, 1880-1913. The Monetary Approach to the Balance of Payments (Collected Works of Harry Johnson), 7, 357.

8.      Lipsey, R. G., & Chrystal, K. A. (1999). Principles of economics. Oxford University Press.

CIA I and III- 20 marks each

CIA II Mid semester exam- 50 marks

End Semester exam- 100 marks

The course aims to cover the broad approaches of ethical inquiry as an essential component of critical thinking in Economics. It would also explore and critique the economic welfare models with its emphasis on efficiency based ethics and outcomes. 

Importance of ethics in economics; Outcomes of ethical analysis; Duties, rules and virtues; Economic behaviour: Self-interest and rational behaviour- Adam Smith and self-interest

Interpersonal comparisons of utility; Welfare and efficiency; Pareto efficiency and cost benefit analysis; well-being and agency; Achievements, freedoms and rights; Self-interest and welfare economics

Moral limits to markets; Well-being, agency and freedom; Economic justice: process and outcomes; Economic justice: equal opportunity; Ethical pluralism in Economics