CHRIST UNIVERSITY HOSUR ROAD, BANGALORE-29 Syllabi 2013-14.pdf · CHRIST UNIVERSITY HOSUR ROAD, BANGALORE-29 DEPARTMENT OF ECONOMICS MA APPLIED ECONOMICS ... Disequilibrium Systems,

CHRIST UNIVERSITY

HOSUR ROAD, BANGALORE-29

DEPARTMENT OF ECONOMICS

MA APPLIED ECONOMICS

2013-2015

1

MASTERS OF ARTS IN APPLIED ECONOMICS

The focal point of economics is to examine how individuals and societies choose and the effects

of their choices. The fundamental objective of the Masters of Arts course in Applied Economics

is to inculcate in students knowledge and understanding of the methods and tools of economic

analysis that will enable them to effectively deal with challenging tasks of economic, business,

institutional and policy making environment. The wide spread of the course encompassing

traditional ideas and emerging trends give the students a strong hold on the skills and expertise

required to approach current economic issues of the world with practical, investigative and

analytical approach. The emphasis on research methodology quantitative techniques, guided

research and the two clearly streamlined specializations create the in the students the potential to

be the leaders in the modern globalised world. The advance training in excel, SPSS, eviews etc

make the students technically adept to face the complexities of any level of occupations.

2

COURSE STRUCTURE, MA APPLIED ECONOMICS 2013-15

SEMESTER I Course Title Hours / Week Marks Credits

MEC 131 Micro Economics 4 100 4

MEC 132 Macro Economics 4 100 4

MEC 133 Mathematical Methods For Economics 4 100 4

MEC 134 Agricultural Economics 4 100 4

MEC 135 Research Methodology 4 100 4

MEC 136 Financial economics 4 100 4

TOTAL 24 24

SEMESTER II Course Title Hours / Week Marks Credits

MEC 231 Institutional Economics 4 100 4

MEC 232 Monetary Economics 4 100 4

MEC 233 Statistics 4 100 4

MEC 234 Mathematical Economics 4 100 4

MEC 235 International Economics 4 100 4

ELECTIVES

MEC 241A Economics of Banking and Insurance 3 100 3

MEC 241B Demography and Population Studies 3 100 3

TOTAL 23 23

SEMESTER III Course Title Hours / Week Marks Credits

MEC 331 Public Economics 4 100 4

MEC 332 Econometrics 4 100 4

MEC 333 Development Economics 4 100 4

MEC 334 Health Economics 4 100 4

MEC 335 Political Economy of India 4 100 4

ELECTIVES

MEC 341A Security Analysis & Portfolio

Management

3 100 3

MEC 341B Gender Economics 3 100 3

TOTAL 23 23

SEMESTER IV Course Title Hours / Week Marks Credits

MEC 431 Operations Research 4 100 4

MEC 432 Labour Economics 4 100 4

MEC 433 Industrial Economics 4 100 4

MEC 434 Environmental Economics 4 100 4

MEC 435 Dissertation 100 4

ELECTIVES

MEC 441A Derivatives 3 3

MEC 441B Regional and Urban Economics 3 3

TOTAL 19 23

3

SEMESTER I

MICRO ECONOMICS

MEC 131

Objectives: 60 Hrs

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.

UNIT 1: Demand Analysis 10Hrs Basic Economic Problem — Choice and Scarcity; Deductive and Inductive Methods of Analysis;

Positive and Normative Economics; Economic Models; Characteristics of Equilibrium and

Disequilibrium Systems, Elasticities (price, cross, income) of demand — theoretical aspects and

empirical estimation; elasticity of supply; Theories of demand — utility; indifference curve

(income and substitution effects, Slutsky theorem, compensated demand curve) and their

applications; Revealed preference theory; Linear Expenditure System; Indirect utility functions

(duality theory); Consumer‘s surplus;

UNIT 2: Theory of Production and Costs 08Hrs

Production function — short period and long period; law of variable proportions and returns to

scale; Isoquants — Least cost combination of inputs; Returns to factors; Economies of scale;

Multi-product firm; Elasticity of substitution; Euler‘s theorem; Technical progress and

production function; Cobb-Douglas, CES, VES and Translog production functions and their

properties; Empirical work on production functions; Traditional and modern theories of costs —

Derivation of cost functions from production functions; derived demand for factors.

UNIT 3: Price and Output Determination 15Hrs

Marginal analysis as an approach to price and output determination: perfect competition — short

run and long run equilibrium of the firm and industry, price and output determination, supply

curve; Monopoly — short run and long run equilibrium, price discrimination, welfare aspects,

monopoly control and regulation; Monopolistic competition — general and Chamberlin

approaches to equilibrium, equilibrium of the firm and the group with product differentiation and

selling costs, excess capacity under monopolistic and imperfect competition, criticism of

monopolistic competition; 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;

UNIT 4: Alternative Theories of the Firm 07Hrs

Critical evaluation of marginal analysis; Baumol‘s sales revenue maximization model;

Williamson‘s model of managerial discretion; Marris model of managerial enterprise; Full cost

pricing rule; Bain‘s limit pricing theory and its recent developments including Sylos-Labini‘s

model; Behavioural modelof the firm;

4

UNIT 5: Distribution 07Hrs

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;

UNIT 7: General Equilibrium 05Hrs

Partial and general equilibrium, Walrasian excess demand and input-output approaches to

general equilibrium, existence, stability and uniqueness of equilibrium and general equilibrium,

coalitionsand monopolies

UNIT 6: Welfare Economics 08Hrs

Pigovian welfare economics; Pareto optimal conditions; Edgeworth Box; Value judgement;

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;

Recommended Readings:

1. Pindyck & Rubinfeld, Micro Economics, Prentice Hall, India.

2. Koutsoyiannis, Modern Micro Economics, ELBS, Macmillan.

3. Hal R Varian, Intermediate Micro Economics – A Modern Approach, (3rd

Ed)

Affiliated East West Press.

4. Chauhan S P S, Microeconomics – An Advanced Treatise, PHI Learning Private

Limited, New Delhi, 2009.

H L Ahuja Advanced Economic Theory – Microeconomic Analysis, S. Chand.

5

MACRO ECONOMICS

MEC 132

Objectives: 60 Hrs

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; Students will be able to describe the main

macroeconomic theories of short term fluctuations and long term growth in the economy;

Students will be able to critically evaluate the consequences of basic macroeconomic policy

options under differing economic conditions within a business cycle.

UNIT 1: Introduction 15 Hrs

What macroeconomics is about- Micro foundations for macroeconomics; Theory as model

building- Prices: flexible vs. sticky- Microeconomic thinking and macroeconomic models-

Measuring the value of economic activity: GDP- Real vs. Nominal GDP- GDP deflator-savings

and Wealth-: Measures of Aggregate saving- The uses of private saving-Measuring the cost of

living: The consumer price index- Measuring joblessness: The unemployment rate- Classical

theory of output and employment- Keynesian theory of income determination.

UNIT 2: Consumption, Saving and Investment 10 Hrs

Consumption and Saving: Keynes and the consumption function-Modigliani and the life cycle

hypothesis-Milton Friedman and Absolute income hypothesis and the Permanent income

hypothesis- Robert Hall and Random Walk Hypothesis- Investment: Investment decision-

Desired capital stock-Changes in interest rate-MEC and Capital Accumulation.

UNIT 3: Inflation and Unemployment 10 Hrs

Inflation: Measures- Classical and Neo-classical theories of inflation- Keynesian and monetarist

views on inflation-Unemployment: Natural rate of unemployment- Job search and frictional

unemployment- Real wage rigidity and Structural unemployment- Inflation, unemployment and

Phillips curve-Adaptive expectations and inflation inertia-disinflation-rational expectations.

UNIT 4: Business Cycles 15 Hrs

Cyclical behaviour of economic variables-leading indicators- Aggregate demand: Explaining

fluctuations with the IS-LM model-IS-LM as a theory of aggregate demand-Aggregate demand

in the open economy- Mundell- Fleming Model- Small open economy under floating and fixed

exchange rates-Aggregate supply- Sticky wage model-imperfect information model-sticky price

model.

UNIT 5: Post Keynesian Macroeconomics 10 Hrs

Monetarism-The new classical macroeconomics-Supply side economics-Advances in business

cycle theory: The theory of real business cycles-New Keynesian economics-small menu costs-

efficiency wages theory-insider-outsider model-implicit contract model-coordination failures.

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1. N. Gregory Mankiw. (2012). Macroeconomics. 8th

Edition, Worth Publishers.

2. Dornbusch, Fischer, Startz. (2010). Macroeconomics. 11th

Edition, Tata Mc Graw Hill.

3. H.L.Ahuja. (2012). Macroeconomics:Theory and Policy. 18th

Revised Edition, Sultan

Chand Publishers.

4. D.N. Dwivedi. (2005). Macroeconomics:Theory and Policy. 2nd

Edition, Tata Mc Graw

Hill Education.

5. Levacic and Rebman. (1982). Macro Economics:An Introduction to Keynesian and Neo-

Classical Controversies. 2nd

Edition, Macmillan Publishers.

6. Brain Snowdown, Howard Vane and Peter Wynarczyk. (1995). A Modern Guide to

Macro Economics: An Introduction to Competing School of Thought. Edward Elgar

Publishing.

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

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

7

MATHEMATICAL ECONOMICS

MEC 133

Objectives: 60 Hrs

This course introduces basic mathematical tools needed for post graduate study in economics.

The course aims at introducing the students to basic mathematical concepts and methods

necessary to begin with the core courses. The course will emphasize intuition and problem-

solving over rigor.

UNIT 1 12 Hrs

Basic concepts, Number system - Properties of real numbers - Theory of indices - Basic rules;

Pareto‘s Law of distribution; Set Theory – Basic operations on sets – The Cartesian product;

Elementary algebra - Factorization Linear and Quadratic Equations; Simultaneous Equations -

Understanding the nature of Cubic function, power function; Exponential and logarithmic

functions; Interest compounding and compounding growth rates; Functions, Graphs, slopes and

intercepts

UNIT 2 12Hrs

Limits - continuity- derivatives - Rules of differentiation - Higher order derivatives - Implicit

differentiation - partial differentiation – Cross partial differentiation, Marginal concepts.

Elasticity, concavity and convexity, Inflexion points; Differentiation of Exponential and

Logarithm Functions

UNIT 3 08 Hrs

Maxima and Minima - single and multivariable functions, constrained optimization and

unconstrained optimization, Langrange Multiplier Method

UNIT 4 08Hrs

Matrices – Addition - subtraction – Multiplication - Determinants – Inverse Matrices – solving

linear equations with the inverse – Crammer‘s rule –Input output model, Technical output

coefficients

UNIT 5 10Hrs

Integral calculus – Rules of integration, Definite Integral, Evaluation of integrals. indefinite

integral, some standard forms, integration by substitution, irrational functions, the area under a

curve as definite integral, the properties of definite integral.

UNIT 6 10 Hrs

Differential equations – Solutions, non-linear differential equations of the first order and first

degree – Variable and Separable case, Differential equation with homogeneous coefficients,

exact differential equations - Linear differential equations of the first order. Difference equations

– General formula for first order linear equations

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1. Allen, R.G.D. (1976). Mathematical Analysis for Economists, Macmillan.

2. Yamane, T. (1973). Mathematics for Economists, Prentice Hall, New Delhi

3. Edward T Dowling ―Introduction to Mathematical Economics‖ McGraw Hill Ltd,

NewYork.

4. Chiang,A.C. (1974). Fundamental Methods of Mathematical Economics, McGraw Hill

and Kogakusha, New Delhi.

5. Baumol, W.J. (1977). Economic Theory and Operations Analysis, Prentice Hall.

6. Lewis, J.P. (1978). Introduction to Maths for students of Economics, Macmillan,

London.

7. Samuelson, P.A. (1967). Foundations of Economic Analysis, McGraw Hill, Tokyo

8. Mehta & Madnani (1992). Mathematics for Economists, S. Chand, New Delhi.

9. Monga, G.S. (1972). Mathematics and Statistics for Economists, Vikas Publishing House,

New Delhi.

10. Mathur, P.N. and R. Bhardwaj (eds.) (1967). Economic Analysis in Input-Output

Research. Input-Output Research Association of India, Pune.

9

AGRICULTURAL ECONOMICS

MEC 134

Objectives: 60 Hrs

The course aims to deepen students understanding of how economic theory can be applied to

policy problems of agricultural sector; The course explores 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; Overview of Development

Problems and Issues; Hunger and Malnutrition; Economics of Food Demand; Population Growth

and the Demographic Transition

UNIT 2: Growth and Technological changes in Agriculture 09 Hrs

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 & 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

UNIT 3: Consumer and Producer Theory in Agricultural Economics 09 Hrs

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

UNIT 4: The State and Policy Environment in Agriculture 13 Hrs

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

UNIT 5: Agri-food Markets: Perspectives and Issues 09 Hrs

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 & consolidation

UNIT 6: Agriculture in an Interdependent World 11 Hrs

Comparative Advantage, Agriculture and International Trade; Trade Policies, Negotiations and

Agreements; Agriculture and the Macro-economy; WTO and Indian agriculture; Problems of

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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.

6. Olson, M. Jr., ―Big Bills Left on the Sidewalk: Why Some Nations are Rich and Others

are Poor,‖ Journal of Economic Perspectives, Spring 1996.

7. Lee, R. ―The Demographic Transition: Three Centuries of Fundamental Change,‖ Journal

of Economic Perspectives, Vol. 17, No. 4, Fall 2003, pp. 167-190.

8. Cohen, J., ―Human Population: The Next Half Century‖, Science, Vol. 302, November

14, 2003, pp. 1172-1177.

9. World Bank, ―Demand and Supply Factor in Fertility Transitions,‖ Chapter 4 in

Population and Development, 1994.

10. Hymer, S. and S. Resnick, ―A Model of an Agricultural Economy with Non-Agricultural

Activities,‖ American Economic Review, September 1969.

11. Singh, S. and S., ―Agricultural Household Models, John Hopkins University Press,

Baltimore, 1986, Introduction and Chapter 1.

12. 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.

13. 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.

14. Morduch, J., ―Income Smoothing and Consumption Smoothing‖, Journal of Economic

Perspectives, Vol 9, No3, Summer 1995: 103-114

15. 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.

16. Thompson, R., ―Globalization and the Benefits of Trade,‖ Chicago Fed Letter 236,

March 2007

11

17. Yotopoulos, Pan, Asymmetric Globalization, Chapter 1 in Yotopoulos and Nugent (Ed)

The Asymmetries of Globalization, Routledge: New York, 2007.

18. 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.

19. Bouet, A. ―How Much Will Trade Liberalization Help the Poor? Comparing Global

Trade Models, IFPRI Research Brief N. 5, 2006.

20. 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.

21. 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.

22. Vaidyanathan, A. (1994), ―Performance of Indian Agriculture since Independence‖ in

Kaushik Basu (ed.), Agrarian Questions Oxford University Press.

23. 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.

24. Robert Evenson, Carl Pray and Mark Rosegrant (1999), Agricultural Research and

Productivity Growth in India (IFPRI Research Report 109).

25. Gunvant Desai and A. Vaidyanathan (1995), Strategic Issues in Future Growth in

Fertiliser Use in India, Macmillan.

26. 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.

27. 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.

28. 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

29. 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.

30. 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.

31. Krugman, P. ―What Should Trade Negotiators Negotiate About?‖ Journal of Economic

Literature, March 1997.

32. 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.

33. Fischer, S., ―Exchange Rate Regimes: Is the Bipolar View Correct?‖ Journal of

Economic Perspectives, Vol 15, Spring, 2001, pp 3-24.

12

RESEARCH METHODOLOGY

MEC 135

Objectives: 60 Hrs

Understanding of the importance of research in creating and extending the knowledgebase of

their subject area; Ability to distinguish between the strengths and limitations of different

research approaches regarding their subject/research area; Knowledge of the range of

qualitative and quantitative research methods potentially available to them; The ability to

differentiate between the role of practitioners and the role of researchers; An understanding of

and begin to critically reflect upon issues of ethics and role of the researcher; The skills to work

independently, to plan and to carry out a small-scale research project.

UNIT 1: Introduction to research & research methods 10 Hrs

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

UNIT 2: Logic of Scientific Investigation 05 Hrs

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

UNIT 3: Research Design 15 Hrs

Review of Literature - Identification of Research Gaps and Research Needs - Identification,

selection and formulation of research problem - Formulating Hypotheses/Propositions/Issues,

conceptualizing research problem

UNIT 4: Overview of Social Science Methodology 10 Hrs

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

UNIT 5: Information needs and use in social sciences 10 Hrs

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

13

UNIT 6: Analysis of Qualitative and Quantitative Data 10 Hrs

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


1. Bell, J. (1993) Doing your research project: a guide for first-time researchers in

Education and Social Science, Buckingham, UK: The Open University.

2. Borg, W.R., & Gall, M.D. (1983). Educational Research: An Introduction (Fourth ed.).

New York: Longman Inc.

3. Brinberg, D. and McGrath, J.E. (1985) Validity and the research process, Newbury Park,

CA: Sage Publications, Inc.

4. Erickson, F. (1986). Qualitative methods on research on teaching. in M.C. Wittrock (ed.),

Handbook of research on teaching (3rd ed., pp. 119 - 161). New York: MacMillan.

5. Fitz-Gibbon, C. T. and L. L. Morris (1987) How to Analyse Data, Newbury Park: Sage

Publications, Inc.

6. Foddy, W (1993) Constructing Questions for Interviews and Questionnaires: Theory and

Practice in Social Research, Cambridge: Cambridge University Press.

7. Isaac, S., and Michael, W.B. (1981). Handbook in research and evaluation: A collection

of principles, methods, and strategies useful in the planning, design, and evaluation of

studies in education and the behavioral sciences (2nd Ed.). San Diego: EdITS.

8. Yin, R.K. (1994). Case Study Research (Second Edition, Vol. 5). Thousand Oaks, CA:

Sage Publications, Inc.

9. Andreski, S. Social Sciences as Sorcery. New York: St. Martin's Press, 1973.

10. Blalock, H. M. Social Statistics, Rev. 2nd

ed. New York: McGraw-Hill, 1979.

11. Duncan, O. Introduction to Structural Equation Models.

12. Guilford, J. P. and B. Fruchter. Fundamental Statistics in Psychology and Education, 6th

ed. New York: McGraw-Hill, 1978.

13. Keppel, G., W. H. Saufley, Jr., and Howard Tokunaga. Introduction to Design and

Analysis: A Student's Handbook, 2nd

ed. New York: W. H. Freman, 1992.

14. Matlack, W. F. Statistics for Public Managers, 1993. Itasca, Il: F. E. Peacock, 1993.

15. Meier, Kenneth J. and J. L. Brudney. Applied Statistics for Public Administration, 3rd

ed.

Belmont, CA: 1993.

16. Phillips, J. L. Statistical Thinking: A Structural Approach, 2nd

ed. San Francisco: W. Hl.

Freeman, 1982.

17. Renner, Tari. Statistics Unraveled: A Practical Guide to Using Statistics in Decision-

Making. Washington, DC: International City Management Association, 1988.

18. Reynolds, H. T. Analysis of Nominal Data, 2nd

ed. Beverly Hills, CA: Sage, 1984.

19. Welch, S. and J. Comer. Quantitative Methods for Public Administration: Techniques and

Applications, 2nd

ed. Chicago, Il: Dorsey Press, 1988.

14

20. White, Michael J., et al. Managing Public Systems: Analytic Techniques for Public

Administration. Lanham: University Press of America, 1985.

21. Winkler, R. L. and W. T. Hayes. Statistics: Probability, Inference, and Decision, 2nd

ed.

New York: Holt, Rinehart and Winston, 1975.

15

FINANCIAL ECONOMICS

MEC 136

Objectives: 60Hrs

This course introduces students to the conceptual and practical operations of the capital market

and its institutional framework in Indian context. The course is intended to provide an in-depth

understanding of the operational issues of the capital market and the security analyzing criteria.

UNIT 1: Basics 06 Hrs

Securities: concept and illustrations; Characteristics: return, liquidity, and risk; Securities in

India; Types of security markets; Financial institution and services: intermediation, regulation,

development.

UNIT 2: Transactions and Procedures 06 Hrs

Investment process; Orders and limit orders; Clearing houses: payments systems and clearance;

Investor protection: Depository Trust companies; Short sales; Street names; Market makers and

margins; Reasons for transactions.

UNIT 3: Markets and Instruments 08 Hrs Types of markets; Concept and tests for market efficiency; Public offers; Underwriting; Market

regulation; Rates of return; Yield to maturity, coupon payments, spot and forward rates; Yield

curves, Liquidity and Duration; Types of risk; Transaction costs; Bid-Ask spread.

UNIT 4: Risk and Uncertainty 08 Hrs

Decision making under uncertainty: Utility: Risk aversion and risk premium; Measurement of

risk: Mean-variance framework; Security configuration; specifying a portfolio; Feasibility and

optimality

UNIT 5: Pricing Theories 08 Hrs

Capital Asset Pricing Model; Diversification, risk and return; Basic assumptions; securities

market line and capital market line; Separation Theorem; Arbitrage; Arbitrage pricing theory:

Factor models and pricing line

UNIT 6: Options and Derivatives 08 Hrs

Derivative securities; Options: put and call, American and European; Premium, exercise

UNIT 7: Corporate Finance 08 Hrs

Earnings; Pay-out ratio; Capital gains; New investments; Long run target; Lintner model;

Gearing ratio (Leverage); Value of the firm; Simplifying assumption; takeovers.

UNIT 8: Indian Financial System 08 Hrs

Structure of financial markets and instruments; UTI and mutual funds; Banking Sector Reforms;

SEBI and Capital Market Reforms

16


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.

17

SEMESTER II

INSTITUTIONAL ECONOMICS

MEC 231

Objectives: 60 Hrs

The course aims at introducing the students to basic concepts of New Institutional Economics

(NEI) and sensitise them to various problems relating to information asymmetry, property rights

and transaction costs by bringing in cases from the real world.

UNIT 1: Basic Introduction to Institutional Economics 13 Hrs

Institutional Economics as a departure from Neo-Classical and Marxian Economics, Historic

development of Institutional Economics, Old and New Institutional Economics, Core issues in

New Institutional Economics

UNIT 2: Problems of Information Asymmetry 13 Hrs

Prisoner‘s dilemma and Nash equilibrium, Assurance problem, Principal-Agent Problem,

Problem of Adverse Selection, Problem of Moral Hazard

UNIT 3: Property Rights Issues 13 Hrs

Concepts of Property and defining Property Rights, Problems of Ill-defined Property rights,

Externalities-Market failure and property rights, Issues relating to ill-defined property rights;

Social vis-à-vis Individual Choices, Neo-classical Maximisation vis-à-vis Methodological

Individualism, Prisoner‘s Dilemma, Hardin‘s Tragedy of Commons, Collective Action, and

Assurance Problem

UNIT 4: Transaction Costs and Bounded Rationality 13 Hrs

Issues relating to transaction costs, Social cost vis-à-vis individual costs, Identification and

measurements of transaction costs, Coase Theorem, Bounded Rationality

UNIT 5: Applications of NIE 08 Hrs

In Public Policy, Insurance Sector, Market for lemons, Social issues, Ecological and

Environmental Issues


1. Furburton & Richter, ‗Institutions and Economic Theory‘, Dryden Press.

2. Pindyck, Robert S., Rubinfeld, Daniell L., & Mehta, Prem L., ―Microeconomics‖, 7th

Edition, (2009), Pearson.

3. Frank, Robert H., ―Micro Economics and Behaviour‖, McGraw Hill International

Editions, (1991).

4. Eggertson, Thrainn, ―Economic Behaviour and Institutions‖, Cambridge University

Press, (1999).

5. North, Douglas C., ―Institutional Change and Economic Performance‖, Cambridge

University Press, (2004).

18

6. Olson Mancur (1965), The Logic of Collective Action, Harvard University Press,

Cambridge.

7. Shaw, M E. (1971). Group Dynamics: The Psychology of Small Group Behaviour,

McGraw Hill, New York.

8. Ahuja H. L., ―Advanced Economic Theory – Microeconomic Analysis‖, 17th

Revised

Edition, (2008), S. Chand & Company Ltd.

19

MONETARY ECONOMICS

MEC 232

Objectives: 60 Hrs

To study money and related variables such as inflation and interest rates; To gain understanding

of the monetary authority and its role in the formulation and implementation of monetary policy;

To understand the functioning of modern commercial banks on issues relating to the compliance

to international banking norms and standards; To examine the monetary episodes in India and

abroad in order to facilitate a comparative understanding of the effectiveness of monetary policy

in different countries by drawing on case studies; To gain insights into factors influencing the

capital inflows and outflows in an open economy model.

UNIT 1: Money in the exchange process 10 Hrs

Money-Meaning, Functions of money, types of money-Classical Quantity Theory of money-

Neutrality of money- Classical dichotomy- money, prices and inflation. Inflation and interest

rates- Social costs of inflation- Keynesian theory of monetary economy- Integration of monetary

and real sectors: The goods market and the IS curve-The money market and the LM curve

UNIT 2: Money supply and money demand 10 Hrs

Money supply: Measures of money supply- Fractional reserve banking- Model of money supply-

Portfolio allocation and the demand for assets: Expected return, risk, liquidity Money demand:

Portfolio theories of money demand- Transactions theory of money demand- Financial

innovation and near money

UNIT 3: Money and Interest rates 05 Hrs

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 Theory-Pure

segmentation theory

UNIT 4: The Open Economy 15 Hrs

The international flows of capital and goods: Role of net exports-international capital flows and

trade balance-Saving and investment in a small open economy: Capital mobility and world

interest rate -Impact of policies on trade balance- exchange rates- the real and nominal exchange

rates and trade balance- Impact of policies on real exchange rate- The large open economy-

policies in a large open economy

UNIT 5: Commercial Banking 10 Hrs

An overview of Indian Banking Structure - Reforms in the banking- system- Role of

competition-Capital adequacy norms- prudential regulations and supervision- Investment policy

of a commercial bank –Credit risk management- Structure of assets and liabilities – Asset

liability management- growth of retail banking – interest and non-interest income sources:

growth and trends–Technology initiatives in banking

20

UNIT 6: Monetary policy 10 Hrs

Meaning and scope of monetary policy- LAF: Instruments- Transmission mechanism-money

growth targeting and inflation targeting- Monetary policy in India: limitations and effectiveness


1. Ben Heijdra and Federick Van Der Ploeg. (2002). Foundations of Modern

Macroeconomics. Oxford University Press.

2. N. Gregory Mankiw. (2012). Macroeconomics. 8th

Edition, Worth Publishers.

3. Dwivedi. D. N. (2005). Macroeconomics: Theory and Policy. Mc Graw Hill, New Delhi.

4. Dornbusch, Fischer, Startz. (2010). Macroeconomics. 11th

Edition, Tata Mc Graw Hill.

5. D.N. Dwivedi, Macroeconomics:Theory and Policy. Mc Graw Hill.

6. Paul Krugman and Robin Wells. (2012). Macroeconomics. Worth Publishers.

7. Raghabendra Jha. (2003). Macroeconomics for Developing Countries. 2nd

Edition,

Routledge, London.

8. Levacic and Rebman. (1982). Macro Economics:An Introduction to Keynesian and Neo-

Classical Controversies. 2nd

Edition, Macmillan Publishers.

9. Wendy Carlin and David Soskice. (2006). Imperfections, Institutions and Policies.

Oxford University Press.

21

STATISTICS MEC 233

Objectives: Hrs 60

The main objective of this paper is to train students to grasp the use of statistical techniques and

operations to analyze economic problems. This paper will initiate students into various

economic concepts which are amenable to statistical treatment.

UNIT 1: Measures of Central Tendency and Dispersion 08 Hrs

Mean, Median, Mode, Geometric Mean and Harmonic Mean. Measures of Dispersion –Absolute

and Relative Measures of Dispersion, Mean Deviation, Standard Deviation, Coefficient of

Variation, Skewness and Kurtosis.

UNIT 2: Correlation and Regression 08 Hrs

Correlation – Types – Karl Pearson‘s Coefficient and Rank Correlation Coefficient – merits and

de-merits. Simple Regression Analysis – Presentation of Scatter diagram – Estimation of

Regression lines in a bivariate distribution (X on Y and Y on X). Estimation of parameters by the

Method of Least Squares – Standard Errors of Estimates – Interpretation of Coefficient of

Correlation and Coefficient of Determination – Measuring the strength of estimated regression –

Prediction on the basis of estimated regression (Illustrative examples from Economics); Multiple

regression

UNIT 3: Probability Distributions 12 Hrs

Concept and definition of Random Variable and Probability Distributions – Discrete and

Continuous Distribution ,Binomial, Poisson and Normal Distributions,their properties and

application in Economics

UNIT 4: Statistical Inference 13 Hrs

Sampling Distributions- small and large samples and properties – z, t, F and Chi-square;

Estimation and properties of estimators, Concept of Standard Error – Point and interval

estimators – Formulation and testing of hypothesis – Concepts of Level of Significance, Critical

Region, Type I and Type II errors, Power of a test – Standard tests of significance (with

examples from economics)

UNIT 5: Time Series Analysis 07 Hrs

Concept and components – Trend Projection – Moving Averages method; Index Numbers –

concept – price, quantity and value relations – Laspeyer‘s, Paasche‘s and Fisher‘s Index

Numbers; Time and factor reversal tests; Problems in construction of Index Numbers, Tests for

Ideal Index Numbers

UNIT 6: ANOVA and Multivariate Analysis Techniques 12 Hrs

Analysis of Variance (ANOVA) – basic principles, technique, setting up ANOVA table, two-

way ANOVA

Variables in Multivariate Analysis, Important Multivariate Techniques, Important Methods of

Factor Analysis

22


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

2. Gupta. S. C and V. K. Kapoor – Fundamentals of Mathematical Statistics, Sultan Chand

and sons, New Delhi.

3. Murray S. Speigel, Statistics, Schaum Series

4. C.R. Khothari, Research Methodology- Methods and Techniques,

5. Murray S. Speigel, Probability, Schaum Series

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

7. Gupta S. P – Statistical Methods, Sultan Chand and sons, New Delhi.

23

MATHEMATICAL ECONOMICS MEC 234

Objectives: 60 Hrs

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.

UNIT 1: Theory of Consumer Behaviour 08 Hrs

Demand function; Supply function; Market equilibrium; Effects of taxes and subsidy on

equilibrium price and quantity; Walrasian and Marshallian Static Stability condition; Elasticity;

Price elasticity of demand; Income elasticity of demand; Cross elasticity of demand; Price

elasticity of supply; Total and marginal utility; Consumer equilibrium; Budget constraint line;

Maximisation of utility

UNIT 2: Theory of Firm 08 Hrs

The production function – homogeneous production function – properties, Euler‘s theorem;

Cobb-Douglas production function, CES production function, VES production function,

Translog production function-properties; cost functions: derivation of cost as a function of

output- input demand function

UNIT 3: Market Structure and Pricing 15 Hrs

Output, revenue and profit maximisation problems under monopoly; Duopoly and oligopoly

markets- the quasi-competitive solution, the collusion solution, the Cournot solution, the

Stackelberg solution, the market shares solution, the kinked-demand curve solution

UNIT 4: Aggregate Expenditure 05 Hrs

Aggregate expenditure in a Two-sector model, algebraic solution to equilibrium output, MPC,

multiplier effect of a change in exogenous spending, the expenditure multiplier, government

expenditure, government sector multipliers, multipliers for a model with income tax, net exports

and equilibrium output.

UNIT 5: The IS-LM Framework 08 Hrs

Investment and the rate of interest, IS schedule for a two-sector model, shifting IS, slope of IS,

goods equilibrium for a four-sector model, the supply of and demand for money, the LM

schedule, shifting LM, slope of LM, simultaneous equilibrium in the money and goods markets.

UNIT 6: Game Theory and Linear Programming and Input-output Analysis 16 Hrs

Concept of game — Two-person zero-sum game, Pay-off matrix, pure and mixed strategies,

Maximin and minimax solutions, Saddle point solution; Non-constant sum game; Prisoner‘s

dilemma; Linear programming — Primal and dual problem, Simplex method; transport and

storage problems and other applications of linear programming in economics; Input-output

analysis — Open and closed systems, Hawkins-Simon conditions; Leontief‘s dynamic system;

Testing consistency of planning models.


24

1. Edward Dowling (2000), Introduction to Mathematical Economics, McGraw Hill Ltd,

NewDelhi.

2. Chiang, Wainwright, Kevin (2005), Fundamental Methods of Economics, McGraw Hill

Ltd, NewDelhi.

3. Allen R G D(1974).Mathematical Analysis for Economists, Mc Millan Press and ELBS,

London.

4. Allen R G D (1967). Macroeconomic Theory, Mc Millan Co., Ltd.,.

5. Chiang A C (1986). Fundamental Methods of Mathematical Economics, Mc Graw Hill,

New York.

6. Koutsoyiannis A. (1979). Modern microeconomics, 2nd

ed, ELBS with Mc Millan.

7. Mona G S. (1996) Mathematics and Statistics for Economics, Vikas Publishing House

Pvt. Ltd., Delhi.

8. Yamane, Taro (1975) Mathematics for Economists, Prentice Hall of India, New Delhi.

9. Mehta-Madnani (2005) Mathematics for Economists, Sultan Chand and Sons, New Delhi.

Eugene Diulio, Macroeconomics, Schaum‘s Outlines, Mc Graw Hill.

25

INTERNATIONAL ECONOMICS

MEC 235

Objectives: 60 Hrs

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.

PART I: INTERNATIONAL TRADE

UIT 1: Core Trade Models 05 Hrs

Ricardian and Neoclassical models of trade

UNIT 2: Heckscher-Ohlin Theory and Empirics 05 Hrs

Heckscher-Ohlin and Related Models of trade and Empirical Tests

UNIT 3: Trade and Wages 10 Hrs

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

Gravity Model

UNIT 4: Trade Policies under Alternative Assumptions 05 Hrs

Perfect Competition, Imperfect Competition, and Market Failures

UNIT 5: Trade and Growth 06 Hrs

Theoretical Perspectives; International Factor Mobility and Multinational Corporations

PART II: OPEN MACROECONOMICS

UNIT 6: Balance of Payment and Exchange rate 12 Hrs

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

UNIT 7: Exchange Rate regimes, Policies and Financial Crisis 12 Hrs

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

UNIT 8: International Financial Organisations 05 Hrs

The Role of the IMF and Other International Financial Organizations

26


1. Robert C. Feenstra, Advanced International Trade: Theory and Evidence, Princeton

University Press, 2004, ISBN 0-691-11410-2

2. Edward Leamer, editor, International Economics, Worth Publishers, 2001, ISBN 1-

57259-820-4.

3. James R. Markusen, James R. Melvin, William H. Kaempfer, and Keith E. Maskus

(MMKM),

4. International Trade: Theory and Evidence, McGraw-Hill, 1995, ISBN 0-07-040447-X.

5. Krugman P., Obstfeld M. (KO) International Economics: Theory and Policy. Ed. 3-5.

6. Sodersten B., Reed G. (SR) International Economics, 3rd ed. Macmillan, 1994.

7. Appleyard D., Field A. (A) International Economics.

8. Vanags A. (UL) International Economics. University of London, Subject Guide, 2001.

9. Ethier W. (E) Modern International economics, 3rd edition. W.W. Norton & Co., 1997.

10. Winters, A. (W) International Economics, 4th edition.

11. Handbook of International Economics (HIE), Vol. 3, Elsevier Science B.V., Amsterdam

1997.

12. Jagdish N. Bhagwati, ed. International Trade: Selected Readings, 2nd edition

(Cambridge, MA: MIT Press, 1987).

13. Jagdish N. Bhagwati, Arvind Panagariya, & T. N. Srinivasan, Lectures on International

Trade, second edition (Cambridge, MA: MIT Press, 1998).

14. William R. Cline, Trade and Income Distribution (Washington, DC: Institute for

International Economics, 1997).

15. 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).

16. Susan M. Collins, ed., Imports, Exports, and the American Worker (Washington, DC:

Brookings Institution, 1998).

17. Giovanni Dosi, Keith Pavitt, & Luc Soete, The Economics of Technical Change and

International Trade (New York: NYU Press, 1990).

18. Ronald Findlay, Factor Proportions, Trade, and Growth (Cambridge, MA: MIT Press,

1995).

19. Dominique Foray & Christopher Freeman, eds., Technology and the Wealth of Nations:

The Dynamics of Constructed Advantage (London: Pinter, 1993).

20. Ralph E. Gomory & William J. Baumol, Global Trade and Conflicting National Interests


21. Gene M. Grossman, ed., Imperfect Competition and International Trade (Cambridge,

MA: MIT Press, 1992).

22. Gene M. Grossman & Elhanan Helpman, Innovation and Growth in the Global Economy


27

23. Gene M. Grossman & Kenneth Rogoff, eds., Handbook of International Economics, vol.

3, (Amsterdam: North-Holland, 1995).

24. Ronald W. Jones & Peter B. Kenen, eds., Handbook of International Economics, vol. 1,

25. International Trade (Amsterdam: North-Holland, 1984).

26. Paul R. Krugman, Rethinking International Trade (Cambridge, MA: MIT Press, 1990).

27. Paul R. Krugman, Geography and Trade (Cambridge, MA: MIT Press, 1991).

28. Andrea Maneschi, Comparative Advantage in International Trade: A Historical

Perspective (Edward Elgar, 1998)

29. Dani Rodrik, Has Globalization Gone Too Far? (Washington, DC: Institute for

International Economics, 1997).

28

ELECTIVES

ECONOMICS OF BANKING AND INSURANCE

MEC 241A

Objectives: 45 Hrs

The objective of this paper is to impart basic knowledge of banking and insurance services to the

students. After completion of this course, the students would have acquired the necessary

competence to handle any job to the supervisory level related to Banking and Insurance.

UNIT 1: Risk, Uncertainty and Asymmetric Information 08 Hrs

Contingent Consumption; Utility Functions and Probabilities; Expected Utility; Risk Aversion;

Individual Consumer's Behaviour towards Risk; Diversification: Risk Spreading; Mean-Variance

Utility: Measuring Risk, Equilibrium in a Market for Risky Assets; Quality Choice; Adverse

Selection; Moral Hazard: Moral Hazard and Adverse Selection; Signaling; The Efficient Market

Hypothesis

UNIT 2: Banking Institutions 11 Hrs

Basic concepts; Functions of Money; Determinants of Money Supply; RBI approach to money

supply; High Powered Money and Money Multiplier; RBI and its functions: Methods of Credit

Control; Reserve Bank of India and Monetary Policy: Objectives and Limitations; Objectives

and functions of Commercial Banks; Credit Creation of Commercial Banks; Money Market and

Role of Commercial Banks; Nationalization and Privatization of Commercial Banks; Co-

operative banks: Origin, features, growth, types, problems and features; Banking Sector

Reforms: Chakravarthy Committee Report, Narasimham Committee Report; Khusro Committee

Recommendation

UNIT 3: Life Insurance 08 Hrs 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

UNIT 4: Health Insurance 10 Hrs

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;

29

UNIT 5: Insurance Company Operations 08 Hrs

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. Ackley, G. (1978), Macroeconomics: Theory and Policy, Macmillan, New York.

2. Besley, T., J. Hall, and I. Preston. 1998. ―Private and Public Health Insurance in the

United Kingdom.‖ European Economic Review 42 (35): 491–97.

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. Ensor, T. 1995. ―Introducing Health Insurance in Vietnam.‖ Health Policy and Planning

10 (2): 154–63.

9. Folland, S., M. Stano, and A. C. Goodman. 2004. The Economics of Health and Health

Care. Upper Saddle River, NJ: Pearson/Prentice Hall.

10. Glied, S. A. 2001. ―Health Insurance and Market Failure since Arrow.‖ Journal of Health

Politics, Policy and Law 26 (5): 957–65

11. Grant, K., and R. Grant. 2003. ―Health Insurance and the Poor in Low-Income

Countries.‖ World Hospitals and Health Services 39 (1): 19–22.

12. Hal R. Varian, Intermediate Microeconomics, 5/e, W W Norton and Company.

13. ILO Sub-regional office for South Asia, New Delhi, Extension of Social Protection in

India Information Papers Series, ―Yeshasvini Cooperative Farmers Health Scheme: A

Typical Example.‖ February 2007

14. Keynes, J.M. (1936), The General Theory of Employment, Interest and Money,

Macmillan, London.

15. L.M. Bhole, Financial Institutions and Markets, 3/e, Tata McGraw Hill.

16. Laidler, D.E.W. (1977), Demand for Money: Theory and Evidence, DumDon Valley, New

York.

17. 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.

18. McKnight, R. 2002. Essays on the Economics of Health Insurance. Cambridge, MA:

Massachusetts Institute of Technology.

30

19. Nyman, J. A. 2003. The Theory of Demand for Health Insurance. Stanford: Stanford

University Press.

20. 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.

21. P.S. Palande, R.S Shah, and M. L. Lunawat, (2003), Insurance in India: Changing

Policies and Emerging Opportunities, Sage Publications.

22. Reddy, Y.V. (2000), A Review of Monetary and Financial Sector Reforms in India – A

Central Banker‘s Perspective, UBSPD, New Delhi.

31

ECONOMICS OF DEMOGRAPHY AND POPULATION STUDIES

MEC 241B

Objectives: 45 Hrs

The main objective of this paper is to make the students aware of the importance of population in

economic development and the various theories that explain the growth of population in a

country. The paper also enlightens the students on the quantitative and qualitative aspects and

characteristics of the population through various demographic techniques. In addition, a special

emphasis is placed on demographic forecasts, which are the basis of each economic

consideration, and on indicators describing demo-economic links.

UNIT – 1: Introduction 05 Hrs

Meaning and scope of demography; Components of population growth and their

interdependence; Measures of population changes: growth, structure and distribution; Sources of

population data.

UNIT – 2: Theories of Population 07 Hrs

Malthusian Theory; Optimum Theory of Population; Theory of Demographic Transition; Marx‘s

Understanding of Demographic Change; Views of Meadows, Enke and Simon; Human Capital

Theories on Population

UNIT – 3: Structure Of Population 05 Hrs

Population trends in the 20th

Century; Population explosion- threatened or real, distant or

imminent, international aspects of population; Growth and distribution, pattern of age and sex

structure in more and less developed countries; Determinants of age and sex structure,

demographic effects of sex and age structure, economic and social implications, age pyramids

and projections, individual aging and population aging.

UNIT – 4: Fertility, Nuptiality, Morbidity and Mortality 07 Hrs

Importance of Study of Fertility: total fertility rate, gross reproduction rate and net reproduction

rate; levels and trends of fertility in more developed and less developed countries; factors

affecting fertility – socio-economic factors, economic status, health, education, nutrition, caste,

religion, race, region, rural-urban and status of husband and wife.; Nuptiality – Concept and

analysis of marital status, single mean age at marriage, synthetic cohort methods, trends in age at

marriage; Morbidity- morbidity rate, reasons of high morbidity, measures and policies to reduce

morbidity rate; Mortality – death rates, crude and age specific, mortality at birth and infant

mortality rate; levels and trends in more developed and less developed countries, gender and age

pattern of mortality; factors for decline in mortality in recent past, Life table; Methods of

Population Projection

UNIT – 5: Migration and Urbanisation 06 Hrs

Concept and types of migration; Importance of migration in the study of population,; effects of

immigration on population growth and pattern; M. Todaro‘s Theory of Migration; Growth and

distribution of rural-urban population in developed and developing countries

32

UNIT – 6: Demographic Data Base in India 06 Hrs

Study of Census in India – methodology and characteristics of census, nature of information

collected from various Census documents (1951 to 2011); National Family Health Survey 1, 2

and 3, Rapid Household survey (NSSO surveys Various Rounds); Population Growth rates,

trends and regional variations in sex ratio, age structure of population, foetal, infant and child

mortality rates, maternal mortality rates, life expectancy, Appraisal of Kerala model.

UNIT – 7: Population and Development With Reference To India 04 Hrs

Population, Economy and Environment linkages; Population, health, nutrition, productivity

nexus; Population and human development issues; Culture and fertility, demography and

household economic behaviour

UNIT – 8: Population Policy in India 05 Hrs

Evolution of population policy in India; The shift in policy from population control to family

welfare and women empowerment, family planning strategies and their outcomes, reproductive

health, maternal nutrition and child health policies; Population and strategies of human

development of different social groups, social impact of new reproductive technologies and their

regulation; The new population policy


1. Agarwala S. N. (1981), India‘s Population Problem, Tata McGraw-Hill Co.; Bombay.

2. Agalwala U. D. (1999), Population Projections and Their Accuracy, B. R. Publishing

Corporation, New Delhi.

3. Bhende, Asha A. and Kanitkar Tara (2000), Principles of Population Studies, Himalaya

Publishing House, Bombay.

4. Bose A. (1996), India‘s Basic Demographic Statistics, B. R. Publishing Corporation, New

Delhi.

5. Bogue D. J. (1971), Principles of Demography, John Wiley, New York.

6. Census of India, Government of India, New Delhi.

7. Choubey P. K. (2000), Population Policy in India, Kanishka Publications, New Delhi.

8. Coale A. J. and E. M. Hoover (1958), Population Growth and Economic Development in

Low Income Countries; A Case Study of India‘s Prospects, Princenton University Press

Princenton.

9. Gulasti S. C. (1988), Fertility in India: An Econometric Study of Metro policies, Sage,

New Delhi.

10. Gray, Zhongwei Zhao (Eds) (2012), Population Studies, Routledge, New Delhi.

11. Simon J. L. (1992), Population and Development in Poor Countries, Princeton University

Press.

12. Srinivasan K. (1998), Basic Demographic Techniques and Applications, Sage, New

Delhi.

13. Srinivasan K. (Ed.) (1999), Population Policy and Reproductive Health, Hindustan

Publishing Corporation, New Delhi.

14. Sryrock, H. et. Al (1973), The Methods and Materials of Demography, US Department of

Commerce, Washington, D. C.

33

15. United Nations (1973), The Determinants and Consequences of Population Trends, Vol. 1

UNO Publications, New York.

16. Population Research Bureau, Journal of Population Studies.

17. World Development Reports on Population, Ageing and Migration (Various Issues).

18. Chaing C. L. (1974), Life Tables and Mortality Analysis, W.H.O. Geneva.

19. Aguihotri S. B. (2000), Sex Ratio in Indian Population: A Fresh Exploration, Sage, New

Delhi.

20. Boserup E. (1970), Women‘s Role in Economic Development, George Allen and Unwin,

London.

21. King M. and M. A. Hill (Eds.) (1993), Women‘s Education in Developing Countries:

Barriers, Benefits and Politics, John Hopkins, Baltimore.

22. Krishnaji M., R. M. Sudarshan and A. Shariff (1999), Gender Population and

Development, Oxford University Press, New Delhi.

23. Sundarshan and A. Shariff (1999), Gender Population and Development, Oxford

University Press, New Delhi.

24. Gupta J. A. (2000), New Reproductive Technologies, Women‘s Health and Autonomy,

Indo Dutch Studies on Development Alternatives, Sage, New Delhi.

25. Mitra A. (1979), Implications of Declining Sex Ratio in India‘s Population, Allied, New

Delhi.

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

27. Government of India (1974), Towards Equality- Report of the Committee on the Status of

Women in India, Government of India, Department of Social Welfare, Ministry of

Education and Social Welfare, New Delhi.

Novell, C. (1988), Methods and Models in Demography, Bellhaven Press, London.

34

SEMESTER III

PUBLIC ECONOMICS

MEC 331

Objectives: 60 Hrs

This course is meant to: 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.

UINT 1: Role of Government 10 Hrs

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

UNIT 2: Public Choice and Public Policy 10 Hrs

Allocation of resources; Private and public mechanism for allocating resources- Problems of

preference revelation and aggregation – Voting systems; Arrow‘s Impossibility theorem-

Provision of public goods; Voluntary exchange model and Samuelson‘s impossibility of

decentralised provision of public goods; Tiebout model

UNIT 3: Public Expenditure 10 Hrs

Theories of public expenditure; Wagner‘s law of increasing state activities; Peacock Wiseman

hypotheses-Social Cost benefit analysis-Criteria for public investment-Project valuation-

Economic reforms and control of public expenditure in India

UNIT 4: Taxation 10 Hrs

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

UNIT 5: Public Debt and Budget 10 Hrs

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.

UNIT 6: Fiscal Federalism 10 Hrs

Principles of federal finance - Assignment of Functions & Devolution of Resources and Grants;

Vertical and Horizontal Imbalance- Finance Commission- Recommendations of 12th

and 13th

Finance Commissions – Economic reforms and centre state financial relations in India

35


1. Dr.Tyagi B.P., Public Finance, Jai Prakash Nath Pub.Meerat, (UP)

2. Musgrave and Musgrave: Public Finance in Theory and Practice (Fifth Edition).

3. H.L. Bhatia. Public Finance (Fifteenth Revised Edition).

4. Amaresh Bagchi (ed.). Readings in Public Finance. Oxford University Press

5. R.K.Lekhi, Public Finance.

6. Buchanan J.M., The public Finances, Richard D. Irwin, Homewood.

7. Jha.R (1998), Modern Public Economics, Routledge, London.

8. Srivastave.D.K., Fiscal Federalism in India, Har Ananad Publication Ltd., New Delhi

36

ECONOMETRICS

MEC 332

Objectives: 60 Hrs

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.


Nature, meaning and scope and methodology of Econometrics-The simple Linear Regression

Model-The ordinary least squares method (OLS) and its assumptions; Properties of least squares

estimates; Guass-Markow Theorem,R2, Adjusted R

2.

UNIT 2: Econometric Problems 15 Hrs

Violations of basic assumptions of OLS- nature, test, consequences and remedies, the problems

of Specification error; Functional forms of regression models- Log-Linear, semi log model,

reciprocal models, and polynomial models (brief outline only).

UNIT 3: Dummy variables, Dynamic Economic Models 15 Hrs

Dummy variable technique, Uses of Dummy variables, dummy variable trap, regression on

dummy dependent variable-The LPM Model, Logit Model, Probit Model, Tobit model-features

and estimation; Auto regressive and distributed lag models-The Koyck model, partial adjustment

model, adaptive expectation model, The Almon approach to distributed lag models.

UNIT 4: Simultaneous Equation Models and Methods 12 Hrs

The simultaneous equation bias and inconsistencies of OLS estimation – identification - the

identification problem – under identification – exact identification and over identification- Rules

of identification, derivation of order and rank condition; Indirect least squares (ILS), the method

of instrumental variables (IV), Two stage least squares (2SLS), Three stage least squares (3SLS),

‗K‘ Class estimators, Limited information, maximum likelihood estimation (Concepts only).

UNIT 5: Time Series Econometrics 07 Hrs

An Autoregressive(AR) Process, A Moving Average(MA) Process, An Autoregressive and

Moving Average (ARMA) Process,An Autoregressive Integrated Moving Average (ARIMA)

Process.


1. Damodar Gujarati - Basic Econometrics, McGraw - Hill, 2007.

2. A.Koutsoyiannis -Theory of Econometrics.

3. William .H. Greene -Econometric Analysis.

4. Lawrence Klein. - An Introduction to Econometrics. Prentice Hall Inc., Englewood

Cliffs. New Jersy.

5. A. Walters - An Introduction to Econometrics.

6. R.S. Pindyck and D.L.Rubinfeld -Econometric Models and Econometric Forecasts.

37

7. J.Johnston -Econometric Methods. McGraw Hill Book Company, New York, 1972.

8. G.S.Maddala -Econometrics. , McGraw Hill, New York, 1977.

9. A.S. Goldberger - Econometric Theory.

10. Michael D. Intriligator, Econometric Models, Techniques and Applications, Prentice

Hall of India, New Delhi, 1980.

38

DEVELOPMENT ECONOMICS

MEC 333

Objectives: 60 Hrs

The course is intended to impart a practical orientation to understanding the developmental

issues in developing countries based on theoretical foundations; the course helps to create the

skills in identifying issues of underdevelopment and generate practical solutions to them

UNIT 1: Theories of Growth and Development 08 Hrs

a) Economic Growth Theories

Neoclassical economic theory: Slow-Swan growth model and its extension; Ramsey growth

model; Empirics of neoclassical theory: Conditional and unconditional convergence;

Endogenous growth theory: AK model; Romer model with knowledge spillovers and increasing

returns to scale; Uzawa-Lucas model with human capital

Endogenous growth theory: Models with endogenous technological change, R&D based growth

theory; Empirics of endogenous growth theory and technological change

b) Contemporary Theories of Economic Development

Dualistic development and structuralism – Lewis model, Chenery model; The balanced-growth

Nurske model; Hirschman‘s unbalanced growth model with backward and forward linkages

c) Recent Emergence in Theories of Economic Development

The imperfect information paradigm (Stiglitz); the new institutional economic paradigm

(Williamson); the international dependence models

UNIT 2: Poverty, Risk and Inequality 08 Hrs

Measurement of development and poverty- vulnerability and of chronic and inter-temporal

poverty; concepts of welfare and well-being – contrast to Sen‘s approach; microeconomic

approaches on how economic processes lead to poverty increases or poverty reduction: poverty

traps - the theory and evidence - credit market failures, risk, social norms and attitudes, and

spatial externalities.

UNIT 4: Financial Flows to Developing Countries 08 Hrs

The determinants of private capital flows (FDI, bank lending, bonds and equity); and the

institutional and policy issues arising from their impact on macroeconomic stability and growth;

the positive economics of aid (from whom, to whom and with what effects) and the normative

economics of aid (how to allocate and deliver aid better); the relationships between these two

sorts of financial flows.

UNIT 5: Rural Development 08 Hrs

Land (tenancy, shareholding, and property rights); Labour (labour markets, shadow wages, wage

determination); Migration (equilibrium models, causes and consequences, risk); Credit and

micro-finance (credit rationing, household credit, lending to the poor)

39

UNIT 6: Industrial Policy and Technological Upgrading 08 Hrs

Industrialization, economic growth and the industrial policy debate; The experience of the East

Asian NICs: lessons and debates; Transfer of technology and role of multinational companies;

Industrialisation and catch-up in the emerging economies: the BRICS and beyond; Opportunities

and constraints for industrial policy in the 21st century: internal and external dimensions

UNIT 7: Openness and Development 08 Hrs

The impact of trade and foreign investment on growth, inequality and poverty; variation in

impact among countries with differing factor endowments and institutions; policy and non-policy

barriers to external economic linkages; criteria and constraints in choice of external (and related

internal) economic policies; industrial policy; market access, international and private rules

governing trade; and regional integration.

UNIT 8: Education and Development through Community Participation 04 Hrs

The concept of service/experiential Learning; A study of the causes, consequences and risk

associated with migration for the rural illiterates; A study of the household finances of the rural

Bangalore – lending to the rural poor, rural indebtedness, role of micro-finance.

(2 to 3 days rural stay where the students will understand the dimensions of rural poverty, study

the developmental projects underway in the area, propose strategies to strengthen the ongoing

programmes of development or suggest remedies for the problems)


1. Murphy, K.M., A. Scheifer and R. Vishny, ‗Income Distribution, Market Size and

Industrialization‘, Quarterly Journal of Economics 104(3) 1989, pp. 537–564.

2. Aghion, P. and S. Durlauf, eds. (2005) Handbook of Economic Growth, Vol. 1A. North

Holland [AD, HD75.5 .H35 2005, available at Science Direct].

3. Banerjee, A., R. Benabou, and D. Mookherjee (2006) Understanding Poverty. Oxford

University Press. [BBM, HC79.P6 U534 2006]

4. Barro, R. and X. Sala-i-Martin (2004) Economic Growth. Second edition. MIT Press.

BSM]

5. Rodrik, D. editor (2003) In Search of Prosperity: Analytic Narratives on Economic

Growth Princeton University Press. [HD73 .I52 2003]

6. D. Mookherjee and D. Ray (2001) Readings in the Theory of Economic Development.

Blackwell Readings for Contemporary Economics, Blackwell Publishers [HD75 .R423

2001].

7. Hent Diana- Economic theories of Development- An analysis of competing paradigm

8. J. Behrman and T. N. Srinivasan (Eds)- Handbook of Development Economics Elsevier

1995

9. Bardhan Pranab and Christopher Udry- Development Micro Economics. Oxford

University press. 2000. New York

10. Nafziger- Economics of Developing countries. Prentice Hall 1997

11. Michael Todaro, Economic Development, Addison-Wesley, Reading, New York &

London, Seventh Edition (2000).

40

12. Gerald Mayer, Leading Issues in Economic Development, Oxford University Press,

Oxford (1995).

13. David Colman, Frederick Nixson, Economics of Change in Less Developed Countries,

Harvester Wheatsheaf, London, Third Edition (1994).

14. Debraj Ray, Development Economics, Princeton University Press, Princeton, New Jersey

(1998).

41

HEALTH ECONOMICS

MEC 334

Objectives: 60 Hrs Health economics is at the interface of economics and the health science. A detailed

understanding of the demand for health care and the determinants of health with their

interrelations and inter connections are dealt with in this course. A detailed treatment of

economic evaluations are also attempted

UNIT 1: the economics of health care 07 Hrs

Introduction- definition of health, life expectancy and mortality rates, morbidity – important

aspects of health care economics: Government intervention, uncertainty, asymmetric knowledge,

externalities- health as a durable good- production of health- lifestyle and health- epidemiology-

inter-relation of markets in medical care and health insurance.

UNIT 2: Productivity of medical care 08 Hrs

Marginal and average productivity- productivity changes on the extensive and intensive margin-

measurement of health improvements- Randomized controlled trial data (RCTs), QUALYs,

standard gamble and time trade off approaches- medical practice variations on the extensive

margin, Economic appraisal of health care: cost benefit approach-principles of cost benefit

approach-process of cost benefit approach

UNIT 3: The Demand for Medical Care 10 Hrs

Indifference curves for health and other goods- effects of increase in income- demand for

medical care- demand curve and illness events- insurance and demand for medical care: co-

payments, coinsurance rates, indemnity insurance, deductibles- time costs and travel costs-

patients beliefs- role of quality in health care

UNIT 4: Supply of health care 10 Hrs

The firm- inputs, output and cost- hospital as a supplier of medical care- residual claimant- utility

function of a not-for-profit hospital: political theory model- hospital costs- long run verses short

run costs- hospital cost curves- hospitals in the market place- interaction between hospitals and

patients- a model of equilibrium quality and price- Other hospital‘s quality and output changes-

interaction between doctors and hospitals.

UNIT 5: Health Insurance 10 Hrs

The demand for health insurance- the risk-averse decision maker- choosing the insurance policy-

medical care demand elasticity and demand for health insurance: moral hazard- supply of health

insurance- stability of insurance market- selection and self-identification: problem of adverse

selection- group insurance- economies of scale- importance of health insurance in developing

countries- problems and challenges.

UNIT 6: Role of health care institutions 15 Hrs

International and national health care organizations, Role of public and private health care

institutions in provision of health care

42


1. Charles E. Phelps, Health Economics, Routledge Publishers.

2. Alistair Mc Guire, John Henderson and Gravin Mooney, The economics of health care,

Routledge Publishers.

3. William Jack, Principles of Health Economics for Developing Countries, WBI

Development Studies.

4. Karman H.E. , Economics of Health

5. Van Der Gaag and M. Perlman, Health, Economics and Health Economics

6. M. Perlman, Economics of Health and Medical Care

7. M. Grossman, The Demand for Health, A theoretical and empirical investigation

8. Allen C. Goodman and Miron Stano, The Economics of Health and Health Care

9. Schultz T.W. , Investment in Human Capital

10. Phelps C.E. , Health Economics

11. Folland S, Goodman A.C., Miron Stano, The Economics of Health and Heatlth Care

12. Dreze and Sen, India : Economic Development and Social Opportunity

43

POLITICAL ECONOMY OF INDIA

MEC 335

Objectives: 60 Hrs

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.

UNIT 1: Introduction & Importance of Political Economy 12 Hrs

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.

UNIT 2: Introduction to India’s Political Economy 18 Hrs

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.

UNIT 3: Political Economy Debates on Implementation in Indian Economic Planning

12 Hrs

Problems of Implementation – The Crisis to the Socialist Principles and Goals of Planning –

Public Investment and Economic Growth - The Crisis of Planning & Political Stability.

UNIT 4: The Political Economy of Reforms 18 Hrs

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.),


4. Mukherji, Rahul (Eds). (2007), India‘s Economic Transition: The Politics of Reforms


5. Caparaso, James A. & Levine, David P. (1992). Theories of Political Economy,

Cambridge University Press.

44

6. Weingast, Barry R. & Wittman, Donald A (2008), The Oxford Handbook of Political

Economy, Oxford University Press.

45

ELECTIVES

SECURITY ANALYSIS & PORTFOLIO MANAGEMENT

MEC 341A

Objectives: 45 Hrs

This course on Security Analysis and Portfolio Management is provided as an elective subject to

the students of MA (Applied Economics) course and 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. This would help the students to further their interests in the

area of Financial Economics which has emerged as an area for both Academic Research and

also for corporate career prospects.

UNIT 1: Basics of Risk and Return including its measures 07 Hrs

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.

UNIT 2: Efficient Capital Markets 04 Hrs

Efficient Market Hypothesis- Weak form, Semistrong form and Strong form- its tests and results,

Efficient Markets and Technical analysis, Efficient Markets and Fundamental analysis, Efficient

Markets and Portfolio Management.

UNIT 3 09 Hrs

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

UNIT 4: Technical Analysis 05 Hrs

Underlying assumptions of technical analysis, advantages, challenges, Technical trading rules

and indicators

46

UNIT 5: Security Valuation 05 Hrs

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 – why and when to use discounted cash

flow valuation approach, why and when to use the relative valuation techniques, discounted cash

flow valuation techniques, Infinite period DDM and growth companies, valuation with

temporary supernormal growth, 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.

UNIT 6: Portfolio Management 08 Hrs

Risk aversion, definition of risk, 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

UNIT 7: Equity Portfolio Management Strategies & Evaluation of Portfolio performance

04 Hrs

Passive vs Active Management, Index portfolio construction techniques, tracking error, methods

of index portfolio investing, an overview of active equity portfolio management strategies-

fundamental strategies and technical strategies, anomalies and attributes.

What is required of a portfolio manager, Treynor Portfolio Performance measure, Sharpe

Portfolio Performance measure, Jensen Portfolio Performance measure, The information ratio

performance measure, application of portfolio performance measures.

UNIT 8: Asset Management 03 Hrs

Organization and Management of Asset Management Companies, Characteristics of Hedge

Funds, its strategies and performance


1. Investment Analysis and Portfolio Management by Reilly / Brown, 8e, Thomson

2. Investments by Bodie, Kane & Mohanty,6e, TMH

3. Investments Analysis and Management by Charles P Jones, Wiley

47

REGIONAL AND URBAN ECONOMICS

MEC 341B

Objectives: 45 Hrs

To acquaint the student with the underlying theories, propositions and problems of regional

economies and methods of analyzing them; The course will equip the student with the basic

theoretical premises and analytical tools that are used by an urban economist.

UNIT 1: Regional Economics – An introduction 04 Hrs

Nature and scope of regional economics - Roots of regional economics- Different types of

regions-indicators of regional development

UNIT 2: Location Theory and Economic Activity 08 Hrs

Dynamics of Market areas- Transfer oriented firm; Resource oriented firm; market oriented

firms- principle of median location – labour markets and locational choices - Locational

interdependence; Hotelling Phenomena- Market area analysis; Central place theory

UNIT 3: Theory of Land Use Pattern and Income models 07 Hrs

Land rent, contract rent and economic rent- Urban land use patterns- Monocentric and

Polycentric Models of land use- PPC and economic growth-comparative advantage; demand

based models; Economic Base theory

UNIT 4: Regional Growth Analysis 10 Hrs

Agglomeration economies-localization in economies- urbanization economies- Neo classical

growth theory- Endogenous growth theory- Product life cycle and firm location-staple theory of

economic development

UNIT 5: Regional labour markets and Migration 09 Hrs

Labour market structure; regional wage differentials- Urban education problem: education

production function; Causes and consequences of low educational achievement in central cities-

Migration; costs and benefits of human migration; impact of migration; empirical aspects.

UNIT 6: Inter-regional Differentials and Regional Imbalance in India 07 Hrs

Agriculture, Industry, Physical infrastructure, Social Sector- Regional characteristics in India and

imbalances – Regional development programs: impact and policies to reduce imbalances in

India; Committee recommendations.


1. Mary E. Edward, (2012), Regional and Urban Economics and Economic development:

Theory and Methods, Auerbach Publications, Taylor and Francis Group.

2. Philips McCann (2011) Urban and Regional Economics, Routledge.

3. O‘Sullivan, A. (2002) Urban Economics, McGraw-Hill Irwin.

4. Harvey Armstrong and Jim Taylor (2000) Regional Economics and Policy, 3rd edition,

Blackwell Publishing

5. Todaro Michael P Internal Migration in Developing Countries a Review of Theory

Evidence Methodology & Research Priorities, ILO Geneva

48

6. Shukla, V. (1996) Urbanization and Economic Growth, Himalaya Publishers Pvt. Ltd.

7. Bidyut Mohanty (1993) Urbanization in Developing Countries Basic Services and

community Participation,

8. Institute of Social Science, Concept Publishing House.

9. Hoover, E.M. (1974), An Introduction to Regional Economics, Alfred A. Knopf, New

York.

10. Brahmananda, P.R. and V.R. Panchmukhi (Eds.) (2001), Development Experience in the

Indian Economy: Inter- State Perspectives, Bookwell, Delhi.

11. Beckman, M. (1968), Location Theory, Random House, London.

12. Dholakia, R.H. (1985), Regional Disparity in Economic Growth in India, Himalaya

Publishing House, Bombay.

13. Friedman, J. and W. Alonso (Eds.) (1975), Regional Policy, Readings in Theory and

Application, MIT Press, Cambridge, Mass.

14. Glasson, J. (1975), An Introduction to Regional Planning: Concepts, Theory and Practice,

Hutchison, London.

15. National Bureau of Economic Research (1957), Regional Income, Princeton University

Press, Princeton.

16. Rao, H. (1984), Regional Disparities and Development in India, Ashish Publishing

House, New Delhi.

Seth, V.K. (1987), Industrialization in India: A Spatial Perspective, Commonwealth

Publishers, New Delhi.

49

SEMESTER IV

OPERATIONS RESEARCH

MEC 431

Objectives: 60 Hrs

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.

UNIT 1: Introduction to Operations Research 03 Hrs

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

UNIT 2: Linear Programming 10 Hrs

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

UNIT 3: Transportation Problems 10 Hrs

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

UNIT 4: Assignment Model 05 Hrs

Assignment problem structure and solution- maximization in assignment problem crew

assignment problem

UNIT 5: Net Work Models 07 Hrs

PERT/ CPM 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

UNIT 6: Waiting Lines 05 Hrs

Structure of Queuing models- Waiting Line models

UNIT 7: Inventory Management Models 05 Hrs

Basic Features of inventory decisions- EOQ- Quantity discounts- EPQ models- ABC Analysis

UNIT 8: Game Theory 05 Hrs

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


1. C. R. Kothari, Quantitative Techniques, Vikas Publications, New Delhi.

50

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.

6. Srivastava U.K, Shenoy G. V, and Sharma S C, Quantitative Techniques for Management

Decisions, Wiley Eastern, New Delhi.

51

LABOUR ECONOMICS

MEC 432

Objectives: 60 Hrs

Analyze the various factors influencing the demand and supply of labour in an economy in wage

and employment determination; to understand the implications of economic and political

institutions in influencing wages and employment; To understand the present state of industrial

relations and social security in the country.

Module I: Introduction to Labour Economics 10 Hrs 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.

Module II: Labour Market Analysis 15 Hrs

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.

Module III: Wage Determination 15 Hrs

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.

Module IV: Employment 10 Hrs

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.

52

Module V: Trade Unions and Collective Bargaining 10 Hrs

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.


1. Kaufman and Hotchkiss, Labour Market Economics, Cengage Learning, 2003.

2. Cahuc, Pierre, and Zilberberg, Labour Economics, Cambridge, Mass. and London: MIT

Press, 2004.

3. McCOnnell, Capbell R., and Stanley.L.Brue, Contemporary Labour Economics,

McGraw-Hill Book Co., 2009.

4. Ashenfelter, Orley, and Richard Layard. (1990), The Handbook of Labor Economics.

Vol. 1 and 2. New York: North-Holland.

5. Helfgott, Labour Economics, (New York: Random House 1974)

6. Reynolds, Lloyd. Labour Economics and LabourWelfare (1978), New Delhi: Prentice

Hall of Inida Pvt. Ltd.

7. Sepsfore, David and Zafiris Tzannatos. (1990), Current Issues in Labour Economics

8. Hong Kong ,Macmilan

9. Singh, V.B and Saran, A.K. (1990), Industrial Labour in India Mumbai: Asia Publishing

House

10. Verma, Pramod. Labour Economics and Industrial Relations New Delhi: Tata McGraw

Hill Pvt. Ltd.

11. Datt, G. (1966), Bargaining Power, Wages and Employment: An Analysis of

Agricultural, Labour: Marketsin India; Sage Publishers, New Delhi.

12. Hajela, P.D. (1998) , Labour Restrucing in India : A Critique of the New Economic

Policies , Commonwealth Publishers, New Delhi.

13. Jhabvala, R.and R.K. Subrahmanya (Eds.) (2000), The Unorganised Sector : Work

Security and Social Protection ; Sage Publications, New Delhi

14. Lester, R.A. (1964) , Economics of Labour (2nd Edition), Miacmillan, New York.

15. Papola, T.S., P.P. Ghosh and A.N. Sharma (Eds.) (1993), Labour, Employment and

Industrial Relations in India, B.R. Publishing Corporation, New Delhi.

16. T.N. Srinivasan (Eds.) The Handbook of Development Economics, North-Holland, New

York.

17. Venkata Ratnam, C.S. (2001) , Globalization and Labour – Management Relations :

Dynamics of Changes , Sage Publications/Response Books , New Delhi

18. Punekar, Deodhar and Sankaran, Labour Welfare, Trade Unionism and Industrial

Relations (1974), Himalaya Publishing House, New Delhi

19. Tyagi B.P., Labour Economics and Social Welfare (2011), Jai Prakash Nath and Co.

53

INDUSTRIAL ECONOMICS

MEC 433

Objectives: Hrs 60 To present the fundamental models of the firms’ behaviour under different market structures; To

educate the knowledge of how the firms interact in different markets, what are the main effects of

their interactions for the social welfare; To provide a thorough knowledge about the economics

of industry in an analytical manner in the Indian context; To make the students aware of the

basic issues such as productivity, efficiency capacity utilization involved in the industrial

development of India.

UNIT1: A Prelude to Industrial Economics 10 Hrs

Market structure – conduct performance paradigm – Market concentration and monopoly power –

Causes and measurement – Market concentration and performance – Extent of market concentration

in India – Recent trends – Vertical integration, diversification and merger (motives and

measurement)

UNIT 2: Theory of the Firm and Industrial Location Analysis 15 Hrs

The behavioural theory of the firm; Transaction cost theory; the property Right Theory; The Agency

Theory and the Resource Based Theory- Growth of the firm; Need for growth and the theory of the

Growth of the firm -Theories of industrial location –Weber and Sergeant Florence – Factors affecting

location- Industrial location trends in India

UNIT 3: Industrial Finance 10 Hrs

Sources (internal and external) – Financial Statements – Analysis of financial ratios and their

interrelatedness, Standards for comparison of financial ratios – Problems of financial analysis

UNIT 4 Investment Decisions 10 Hrs

Nature and Types of investment decisions-Methods of project evaluation; the pay back period, NPV,

IRR- Assessment of investment appraisal techniques- Profitability and its determinants.

UNIT 5: Innovation and Advertising 05 Hrs

The process of Innovation; Measurement of innovation; the theory of Technological Innovation-

Advertising Strategy

UNIT 6: Industrial Labour 05 Hrs Industrial labour, Employment dimension of Indian industry –industrial legislation –industrial

relation – industrial disputes.

UNIT 7: Industrial Development of India and Government Regulation of Industries 06 Hrs

Pattern of industrialization since independence – Changing structure of industries Debates on

industrial stagnation – Issues in industrial development in the context of globalization - Evolution of

industrial policy – Performance of licensing policy – Rationale of delicensing – Regulation of

monopolies

54


1. Barthwal, R.R. (2010). Industrial Economics: An Introductory Text Book, New Age

International, ND.

2. Industrial Organization: Contemporary Theory and Practice, Pepall, Lynne; Daniel J.

Richards; George Norman. 2nd.ed South-Western. 2002.

3. Industrial Economics, B.N.Narayan, Anmol Publications Pvt. Ltd.

4. Ahluwallia, I.J. (1992): Industrial Growth in India, OUP, Delhi.

5. Applied Industrial Economics, Ed. By Lois Philips. Cambridge University Press. 1998.

6. Industrial Organization- A Strategic Approach, Church J. R, Ware R. Irwin, McGraw Hill.

2000.

7. Organisation, Theory and Applications, Oz Shy, MIT Press 1995

8. Singh A and A. N. Sadhu (1988) Industrial Economics, Himalaya Publishing House, Mumbai

9. Francis Cherunilam (1994) Industrial Economics, Tata McGraw-Hill publishing company

limited, New Delhi.

55

ENVIRONMENTAL AND NATURAL RESOURCE ECONOMICS

MEC 434

Objectives: 60 Hrs

This course aims at a detailed treatment of the linkage between environment and the natural

resource endowment. The economics of exhaustible and renewable resources and their linkages

with development also is dealt with in this paper. A detailed understanding of the methodology of

economic evaluation is expected from the student

UNIT 1: Basic Concepts 05 Hrs

An introduction to Environmental Economics; Economy - Environment interaction; The Material

Balance principle, Entropy law

UNIT 2: Environment Vs Development 05 Hrs

Relation between development and environment stress; Environmental Kuznet's curve

UNIT 3: Economics of Exhaustible Resources 10 Hrs

Hotelling's rule; Solow-Harwick's Rule; Market structure and optimal extraction policy;

Uncertainty and the rate of resource extraction; Resource scarcity

UNIT 4: Economics of Renewable Resources: 10 Hrs

Economic models of forestry and fisheries; Extinction of species; Economics of Biodiversity

UNIT 5: The Theory of Externality and Public Goods 10 Hrs

Concepts; Market Failure; Pigouvian Solution; Buchanan's Theory; Coase's theorem and its

critique; Pigouvian vs. Coasian solution; Detrimental externality and non-convexities in the

production set; Property rights; Collective action

UNIT 6: Techniques of Valuation 20 Hrs

Market and non-market valuation; Physical linkage methods; Abatement cost methods; Behavior

linkage methods - Revealed and stated preference; Social cost benefit analysis; Environmental

impact assessment.


1. Hanley, N, J.F. Shogren and B. White. Environmental Economics in Theory and

Practice.New York: MacMillan, 1997

2. Arrow, K. J. and Scitovsky, T. Readings in Welfare Economics - Part III. Richard Irwin

Inc, 1969.

3. Bromely, D. W. (ed.). Handbook of Environmental Economics. Blackwell, 1995

4. Jempa, C. and Munasinghe, M. Climate Change Policy: Facts, Issues and Analyses.

Cambridge: Cambridge University Press, 1998

5. Kolstad, Charles, Environmental Economics, OUP, 2000

6. Sankar, U. (ed.). Environmental Economics (Readers in Economics), OUP, 2000

56

7. Coase, R. H. "The Problem of Social Cost", in Breit, W. and Hochman, H.M. (eds.)

Readings in microeconomics. Rinehart and Winston Inc., 1968.

8. Cropper, M. L. and Oates, W. E. "Environment economics: A survey". Journal of

Economic Literature, June 1992.

9. Dasgupta, P and Heal, G. M. Economic Theory and Exhaustible Resources. Cambridge:

Cambridge University Press, 1979.

10. Field, B. C. Environmental economics: an introduction. New York: McGraw Hill, 1994.

11. Fisher, A. C. "Environment and resource economics", in Oates, W.E. (ed.) New horizons

in environmental economics: selected readings. Cheltenham, U.K.: Edward Elgar, 1995.

12. Hardin, G. "The tragedy of commons", in Markandya, A. and Richardson, J. (eds.)

Earthscan reader in environmental economics. London: Earthscan Publications, 1993.

13. Oates, W. E. Economics of the environment. Cheltenham, U.K.: Edward Elgar, 1992.

14. Perrings, Charles. "Ecological resilience in the sustainability of economic development",

in Sylvie, F., Pearce, D., and Proops, J. (eds.) New horizons in environmental economics:

model of sustainable development. Cheltenham, U.K.: Edward Elgar, 1996.

15. World Bank. Development and the environment. World Development Report series.

Washington, D. C.: World Bank, 1992.

.

57

DISSERTATION

MEC 435

DESCRIPTION

This paper is a compulsory paper in the fourth semester of post graduate course in Applied

Economics. Through this paper students undertake an original research work based on the area

of his/her interest and academic leaning in the previous semesters. This also becomes a thorough

training in the nuances of analytical and research skills.

Objectives:

To inculcate in students the rigour of research work; To imbibe in students the spirit of inquiry;

To encourage students to do academic reading of journal articles; To be informed about new

developments in the field of economics research.

Methodology

The dissertation work is carried out under the guidance of a faculty with scheduled meetings for

discussion of the progress of the work and timely interim presentations before a panel of faculty

to assess the quality of the work. The final submission of the dissertation is followed by a viva

voce on the topic of the research.

1. Evaluation at the end of the semester is based on the following categories:

2. Regularity of meeting with guide for discussions 25% weightage

3. Presentation of the synopsis by student 10 weightage

4. Mid-term review by student 15% weightage

5. Final submission of the dissertation and viva voce 50%

.

58

ELECTIVES

DERIVATIVES

MEC 441A

Objectives: 45 Hrs This course on Derivatives is intended to introduce the students of MA (Applied Economics) who

choose this course as electives, to the concepts of derivatives and its applications in the area of

finance.

UNIT 13 Hrs

Introduction to Derivatives: Exchange traded markets, OTC markets, Forward and Future

contracts, Options, Types of traders – hedgers, speculators and arbitrageurs.

UNIT 2 05 Hrs

Mechanics of futures and forward markets: Background, Specification of a futures contract,

convergence of futures prices to spot price, daily settlement and margins, newspaper quotes,

delivery, types of traders and types of orders, forward vs futures contracts

UNIT 3 03 Hrs

Determination of forward and futures prices: Investment assets Vs Consumption assets, short

selling, measuring interest rates, forward price for an investment asset, known income, known

yield, valuing forward contracts, stock index futures, futures on commodities, cost of carry

UNIT 4 05 Hrs

Hedging strategies using futures: Basic principles, arguments for and against hedging, basis

risk, minimum variance hedge ratio, cross hedging, stock index futures, rolling the hedge

forward

UNIT 5 10 Hrs

Mechanics of interest rate swaps, day count issues, confirmations, the comparative advantage

argument, the nature of swap rates, determining the LIBOR/ Swap zero rates, currency swaps,

credit risk

UNIT 6 17 Hrs

Mechanics of options markets: Types of options, options positions, underlying assets,

specification of stock options, trading, commissions, margins; Properties of stock options:

Factors affecting option prices, assumptions and notations, upper and lower bounds for option

prices, put-call parity, effect of dividends; Trading strategies involving options: Strategies

involving a single option and a stock, spreads, combinations, other payoffs; Options on stock

indices and currencies: A simple rule, Pricing formulas, Binomial trees, Options on stock

indices, currency options

UNIT 7 02 Hrs

Derivatives mishaps and what we can learn from them: Lessons for all users of derivatives,

lessons for financial institutions, lessons for non-financial corporations

59


1. Fundamentals of Futures and Options Markets by John C Hull, 4e, Pearson Education

2. Options, Futures and other Derivatives by John C Hull, 7e, Pearson Education

3. Derivatives and Financial Innovations by Bansal & Bansal, TMH

4. Risk Management and Derivatives by Rene M Stulz, Thomson

60

GENDER ECONOMICS

MEC 441B

Objectives: 45 Hrs

The course aims to explain how gender differences lead to differences in outcomes for men and

women with respect to education, career, earnings and roles in the family using economic theory

and analysis. It also tries to examine how such differences impact female mortality, fertility,

economic status and work participation.

UNIT1: Introduction- Women and the Economy 05 Hrs

Importance and concepts of women studies- Economic basis and functioning of patriarchy in

developed and LDCs, particularly India - Gender bias in the theories of value, distribution, and

population- Gender and the process of economic development - Market, mobility and women.

UNIT 2: Marriage, Family and Decision making 15 Hrs

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.

UNIT 3: Women’s Work 10 Hrs

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.

UNIT 4: Women’s Earnings, Occupation and Education 10 Hrs

Factors affecting female entry in labour market; Supply and demand for female labour in

developed and developing countries, particularly India; Studies of female work participation in

agriculture, non-agricultural rural activities, informal sector, cottage and small-scale industries,

organized industry, and services sector; The gender gap in earnings- Occupational segregation –

gender differences in education – economic analysis of gender gap in earnings.

UNIT 5: Demographic Aspects 05 Hrs

Demography of female population: Age structure, mortality rates, and sex ratio - Causes of

declining sex ratios and fertility rates in LDCs and particularly India - Theories and measurement

of fertility and its control; Women and their access to nutrition, health, education, and social and

community resources and their impact on female mortality and fertility, economic status, and in

work participation rate.

61


1. Hoffman and Averett (2007), Women and the Economy: Family, Work and Pay, Prentice

Hall Publications.

2. Amsden, A.H. (ed.). (1980). The Economics of Women and Work, Penguin,

Harmondswosrth.

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.

17. Papola, T.S. and A.N. Sharma (eds.) (1999). Gender and Employment in India, Vikas,

New Delhi.

18. Schultz, T.P. (1988). ―Education Investments and Returns‖, in Chenery, H.B. and T.N.

Srinivasan, The Handbook of Development Economics, North Holland, New York.

19. Seth, M. (2000). Women and Development: The Indian Experiences, Sage Publications,

New Delhi. 20. Yong, K. et al. (eds.). (1987). Serving Two Masters, Routledge and Kegan Paul, London.

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CHRIST UNIVERSITY HOSUR ROAD, BANGALORE-29 Syllabi 2013-14.pdf · CHRIST UNIVERSITY HOSUR ROAD, BANGALORE-29 DEPARTMENT OF ECONOMICS MA APPLIED ECONOMICS ... Disequilibrium Systems,