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Micro and Macro Economics in English
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SYLLABUS I SEMESTER
EC.109-MICRO ECONOMICS
COURSE OBJECTIVES
To make students aware of the basic economic concepts and theories of economics
To develop among students the ability to understand and appreciate the economic
theories and their application in real economic life.
MODULE I –INTRODUCTION TO MICRO ECONOMCIS (10 HRS)
Basic problems of choice of production and consumption (3). Role of price mechanism in
market, and mixed economies (3). Micro economics, Branches of Micro economics (2)
Merits and limitations of Micro economics (1) Positive and Normative Economics, inductive
and deductive methods (1).
MODULE II –THEORY OF CONSUMER BEHAVIOR (20 HOURS)
Cardinal Utility analysis– Law of Diminishing marginal utility (1) Law of Equi- marginal
Utility (3)Marshallian Consumer’s surplus(1) Law of Demand(2)Changes in demand(1)
Elasticity of demand - types of elasticity of demand(3)Methods of calculating elasticity of
demand(2)Factors determining elasticity of demand and practical importance of the
concept(2). Hicksian Ordinal Utility Analysis–Indifference Curves– Meaning, Properties,
Consumer’s equilibrium-Income effect- Price effect –substitution effect (9).
MODULE III – THEORY OF PRODUCTION (14 HOURS)
Law of variable proportions (1)Law of Returns to Scale – internal and external economies of
scale(3) production function -Isoquants (2) Cost concepts(1)TFC, TVC, TC, AC,MC- Short
run and long run analysis(4),Opportunity cost, Isocosts(1) . Revenue concepts – TR ,AR,MR
under perfect and imperfect markets (3)Supply- Law of supply- Changes in
supply(2)MODULE IV THEORY OF PRODUCT PRICING (25 HOURS )
Theory of equilibrium of the firm and industry(2) Perfect Competition–Price and Output
determination (3)role of time element (2).Monopoly– features- price and output
determination(3)Price discrimination(1)Monopolistic Competition- features –Product and
output determination, wastes of Monopolistic Competition ( 3)product differentiation –
selling cost – advertisements(2)features of oligopoly(2). Collusive and leadership
oligopoly(1).
MODULE V– THEORY OF FACTOR PRICING (18 HOURS)
Nature of Factor Markets (1) Pricing of Factors of Factors of Production – The Marginal
Productivity Theory(3)Rent Theories–Ricardo and Modern(3)Theories of Wages-
subsistence ,modern theory (2) , Wage differential(1)collective bargaining(1) Interest-
Classical, loanable funds theory (2), Keynesian (2).Profit –Risk(1) , Uncertainty(1) Dynamic
and Innovation(1).
Books recommended (I &II Semester)
1. Samuelson P.A - Economics
2. Lipsey R.G – An Introduction to Positive Economics.
3. Stonier A.W. and Hague – A text Book of Economic Theory
4. M.L.Jhingan – Advanced Economic Theory.
5. H.L. Ahuja - Advanced Economic Theory.
6. Peter Smith & David Begg – ‘Economics’ Work book.
7. Mithani – Economic Theory.
8. K.P.M. Sundaram – Micro and Macro Economics.
9. M.L.Seth- A text Book of Economic Theory.
10. Robinson J and Eatwell – An Introduction to Modern Economics.
11. Varian .H – Micro Economic Analysis.
II SEMESTER
EC.209 -MACRO ECONOMICS
COURSE OBJECTIVES:
1.To enable students to understand the nature and behaviour of important macro economic
variables in the functioning of an economy.
2.To impart knowledge regarding the formulation and implementation of macro economic
polices.
MODULE I -INTRODUCTION TO MACRO ECONOMICS (12 HRS)
Definition and branches of Macro economics(2); stocks and flow, functional relationships,
statics, comparative statics and dynamics. Interdependence between micro and macro
economics.(7) Micro-macro paradox(1). Uses and limitations of Macro economics(2).
,
MODULE II -NATIONAL INCOME (8HRS)
Circular flow of income and wealth,(2)Concepts and methods of measuring National
Income(2) Problems in the measurement of National Income-Per capita income and its
limitation as an index of welfare, Human development index, Gender empowerment
index(4).
MODULE III: THE CLASSICAL THEORY OF INCOME AND EMPLOYMENT(7)
Basic assumptions of the Classicists (1), Say’s Law of Markets and the Theory of Full
Employment- Pigou’s concept of wage cut (4),Wage-price flexibility and Full Employment
,saving investment equality, Criticisms of the Classical theory.(2)
MODULE IV: THE KEYNESIAN THEORY OF INCOME AND EMPLOYMENT(14)
The concept of under employment equilibrium, Effective Demand-Aggregate Demand and
Aggregate Supply(3),Consumption Function and its determinants, psychological law of
consumption.(4)Investment Function and its determinants(3)Changes in the level of income-
the Multiplier(2), Accelerator(1). Applicability of Keynesian Theory to under developed
Countries (1)
MODULE IV – MONEY (13HRS)
Definition of money-functions of money(1) Determinants of Demand for money-Theory of
Liquidity preference(2)Composition of Supply of money-M1,M2,M3(1). Value of money–
Quantity theory of money – Fisher and Cambridge equations and Keynes Income theory (4),
General equilibrium in the product and money market-IS and LM Model-Hicks- Hansen’s.
(3)
MODULE V- INFLATION- (12 HRS)
Meaning and types of inflation(1) ,Demand-pull -Cost push Inflation,(4) Inflationary gap(1).
Effects of inflation, measures to control inflation(3) employment-inflation trade off- Philips
curve (2) Measuring changes in the value of money – Use of Index numbers.(1)
MODULE VI – TRADE CYCLES ( 9HRS)
Meaning ,types and Phases of trade cycle(3), Trade cycle theories –Hawtrey’s monetary
theory (3), Schumpeter’s theory of innovations(3),
REFERENCE BOOKS
Shapiro Edward, (1978) Macro economic Analysis
Branson W.H, Macro economic Theory and Policy, (1972)
Hanson A.H,“A Guide to Keynes”
Rowan DC, (1974) Output, inflation and growth, 2nd
Ed.
Wonnacott Paul, macro economics, 1974
Dillard, Dudley, The Economics of John Maynard Keynes (19530
Dornbusch, R and S. Fisher (1984), Macro Economics.
Edgemond, M.R (1983) Macro Economics: Theory and Policy; Prentice-Hall of India, New
Delhi,
Gupta S.B (1983), Monetary Economics, S Chand &co. New Delhi.
SEMESTER III
EC.301 -BANKING AND PUBLIC FINANCE Course objectives:
1.To provide knowledge about the role and working of the monetary system in an economy.
2.To help students understand the role and working of government finances in a modern economy
MODULE I - Commercial banks (10 hrs)
Functions and importance of commercial banks (2) Sources of supply of bank fund, Balance
sheet of a commercial(3) Credit creation by Commercial Banks, (3) Portfolio Management
(2)
MODULE II- CENTRAL BANK(10) Emergence of the concept of Central Bank (2) Principles of note issue ( 2) Functions of central bank
(2) Monetary policy-Credit Control techniques - quantitative and qualitative methods (4 )
MODULE II -MONEY MARKET (12 HRS)
Meaning, features and Functions of Indian money market (3) Instruments of money market-call
money market, Treasury bill market, commercial paper market and bankers acceptance market.(4)
Money market Institutions -Central Bank, Commercial banks, Non- bank financial intermediaries,
Discount houses, Acceptance Market (3) Characteristics of a developed money market (2)
MODULE IV- PUBLIC FINANCE (10)
Meaning and subject matter of Public Finance (1) Distinction between private finance and public
finance (1) Musgrave’s view on Economic activities of the state (2) Principle of maximum social
advantage (2) Public goods vs. private goods, Pure public goods, Merit goods. Market failure (4)
MODULE V- PUBLIC REVENUE, (10 HRS )
Sources of Public revenue–Taxation, Canons of taxation (2) Merits and demerits of direct and indirect
taxes (4 ) Incidence and Effects of taxation (3) Value added tax (1).
MODULE VI-PUBLIC EXPENDITURE AND PUBLIC DEBT(12HRS)
Public Expenditure –Canons of Public Expenditure (2) Growth and effects of Public Expenditure (2)
Public Debt ,Effects, Repayment of Public Debt (3) Principles of debt management (1) Public Budget
(2) Fiscal policy (2)
MODULE VI- FEDERAL FINANCE (11 HRS) Concept of fiscal federalism (2) Principles for division of functions and financial resources between
different levels of government (2) Need for federal financial adjustments (1) need and mecahnism for
federal transfers (3) Indian federal finance(1) Role of the Finance Commission(2)
Reference Books
Basu A.K (1962) Fundamentals of Banking Theory and Practice, Mukerji, Calcutta.
Chandler L .V – Economics of Money and Banking, 7 ed, Harper and Row, NewYork.
Chandler L .V- Central Banking and Economic Development.
Sayers R.S (1978) Modern Banking, 7 ed , OUP, Delhi.
Bhatia .H.L – Public Finance.
Brown C.V and P.M .Jackson, (1978) , Public Sector Economics, Martin Robertson, Oxford
Dalton Hugh, Principles of Public Finance, Routledge and Kegan Paul
Herber P.Bernard –(1967) Modern Public Finance , Richard Irwin , Ch 10.
Mitra .S, ed (1970) Money and Banking , Random House , New york.
Musgrave Richard (1969) The theory of Public Finance.
Prest A.R.(1970) Public finance in theory and practice, English Language Book Society , London.
Taylor Philip - The economics of Public Finance
Basic Text Book
ML Jhingan Money and banking and finance-
SEMESTER IV
EC-401. INTERNATIONAL ECONOMICS
COURSE OBJECTIVES :
1. To provide knowledge on the basic concepts, tools and theories of international trade.
2.To examine important issues in commercial policy and international economic
integration.
MODULE I : INTRODUCTION TO INTERNATIONAL ECONOMICS.(15HOURS)
Differences between internal and International trade .Analytical tools- Production possibility
curve – Isoquants – Box diagram. Terms of trade -Concepts & Factors affecting terms of
trade; Offer curves.
MODULE II :THEORIES OF INTERNATIONAL TRADE(15HOURS)
Classical theory -Absolute and comparative cost theory, Hecksher-Ohlin theorem, factor
price equalization theorem .
MODULE III: TRADE AND REGIONAL DEVELOPMENT(15 HOURS)
Free trade and protection, tariffs and quotas, effects. Theory of customs union, Commodity
arrangements, Cartels, dumping. Trade as an engine of growth, Singer-Prebisch secular
stagnation thesis. Role of Multinational Corporations in economic development.
MODULE IV—INTERNATIONAL FINANCE (15HOURS)
Nature and type of foreign capital, role of foreign capital in development. Theories of exchange rate
determination-purchasing power parity theory, balance of payment theory. Disequilibrium in the
balance of trade and payments- causes and methods to correct disequilibrium.
MODULE V –INTERNATIONAL INSTITUTIONS(15HOURS)
GATT-Early rounds–a summary. Uruguay round –WTO- major agreements- Recent
developments. IMF ,World Bank, IDA, IFC , ADB,EEC, SAARC, Problem of international
Liquidity ,Globalization.
Books for reference:
1.M Chacoliades – International Economics.
2.C.Kindleberger – International Economics.
3.Bo Sodersten – International Economics.
4.D.Salvatore – International Economics
5.ML Jhingan- International economics
Semester V- COMPULSORY PAPER
EC.501. STATISTICAL METHODS FOR ECONOMICS
Objectives:
To introduce students to the basic concepts of statistics
To develop skills of data analysis and ability to interpret
To help students to appreciate the importance of statistics in Economics
Module-I: Collection , classification and tabulation of Data
Meaning- definition of statistics -uses of statistics and limitations of statistics.
Object and scope of enquiry- Collection of primary and secondary data -Framing a
questionnaire- schedule / interview method. Sources of secondary data. Sampling- methods
- random –stratified ,systematic, cluster ;non random –judgment sampling, convenience and
quota sampling.
Meaning and objectives of Classification of data- Making a frequency table-discrete and
continuous . cumulative frequency distribution-Bivariate distribution.
Object of tabulation ,Rules of tabulation- parts of a table, types of tables- one way, two
way , three way and higher order tables-
Module-II: Presentation Of Data
Diagrammatic Representation- Usefulness and limitations of diagrams-Rules for diagrammatic
representation , types of diagram—one dimensional –simple bar diagram , multiple bar diagram , sub
divided bar diagram and pie diagram percentage bar diagram, two dimensional and three dimensional
diagrams, pictograms , cartograms – graphs and curves .
Module-III: Measures of central tendency
definition-objectives of averaging – Characteristics of a good average
Arithmetic mean-Median-Mode- Individual observations , deviation method and step
deviation method
Module-IV: Measures of dispersion
Definition and objectives- -Range -Mean Deviation-Standard Deviation.
Skewness and Kurtosis (Concepts )
Module-V: Correlation And Regression
Meaning of correlation- objectives -Karl Pearson’s coefficient of correlation-Rank method
Meaning and objectives of regression analysis-regression lines-regression equation.
Module-VI: Index Numbers and time series analysis
Analysis of time series-definition-uses-components-methods of estimating component-
method of semi averages.
Index numbers-definition-uses-problems-unweighted and weighted index numbers-
Laspeyers,Paasche, fisher’s methods
Module VII – Theory of Probability
Meaning – rules of probability- binomial theorem
BOOKS:
1) Elhance-Introduction to Stastical Methods
2) S.P.Gupta-Statistical Methods
3) C.P.Gupta- Statistical Methods
Econometrics
Course Objectives: At the conclusion of this course, a student will have a solid basic
understanding of regression analysis as it is practised in the social sciences. The student will
be able to construct a simple theoretical model of the determinants of a single dependent
variable, estimate this model (given data), diagnose the adequacy of the statistical model,
modify the statistical model as required, and draw substantive conclusions regarding his or
her original theoretical model. Further, a student will become skilled in using econometric
packages.
Module –I : Nature and Scope of Econometrics Meaning of Econometrics, Relationship Between Statistics, Mathematics and Economics, Economic
and Econometric Models, the aims and methodology of Econometrics, Historical origin of the term
regression and its modern interpretation, statistical Vs deterministic relationship, regression Vs
Causation, regression Vs correlation, terminology and notation, the nature and sources of data for
Econometric analysis.
( 8 hrs)
Module II: Two Variable Regression Analysis The basic two Variable Regression model: Estimation, Statistical Inference and Prediction.
Extensions of two variable regression model – regression through origin, Scaling and units
of measurement, Functional forms of regression model.
( 12 hrs)
Module III: Multiple Regression Analysis
The problem of Estimation- Notation and assumptions, meaning of partial regression
coefficients the multiple coefficient of determination R2 and the multiple coefficient of
correlation R, R2 and adjusted R
2, partial correlation coefficients, Interpretation of Multiple
Regression Equation.
The Problem of Inference- The normality assumption, Hypothesis testing about Individual
Partial Regression coefficients, testing the overall significance of the sample regression,
testing the equality of two regression coefficients, restricted least squares, testing for
structural stability of regression models, testing the functional form of regression.
.
(15 hrs)
Module IV: Relaxing the Assumptions of the Classical Regression Model
Multicollinearity, Heteroscedasticity and Autocorrelation- Nature, Consequences, Detection
and Remedial Measures.
( 10 hrs)
Module V: Regression on Dummy Independent Variables
The nature of Dummy variables, regression on one quantitative variable and one qualitative
variable, regression on one quantitative variable and one qualitative variable with more than
two classes, regression on one quantitative variable and two qualitative variables, testing for
structural stability regression models, Interaction effects, piece wise linear regression, the use
of dummy variables
(15 hrs)
Selected References:
Gujarathi, D (2003) Basic Econometrics, 4th
Edition, New York: McGraw Hill
Wooldridge, J.M. (2003), ‘Introductory Econometrics: A Modern Approach’ 2nd
edition,
Thomson South-Western .
Green, W. (2003), ‘Econometric Analysis’, 5th
edition, Prentice Hall
R.S. Pindyck and D.L. Rubinfeld, Econometric Models and Economic Forecasts, Fourth
Edition (McGraw-Hill), 1997.
Dougherty, C. (1992) Introduction to Econometrics. New York: Oxford University Press. .
Johnston, J. (1984) Econometric methods, 3rd
edition, New York: McGraw Hill.
Johnston, J and J.Di Nardo (1997), Econometric Methods, 4th
edition, McGraw Hill.
Maddala, G (1992) Introduction to Econometrics, 2nd ed., New York: MacMillan.
Kalirajan, K.P.Applied Econometrics, Oxford&IBH publishing company Private limited,
1995.
Judge, Carter, Griffiths, Lutkepohl, and Lee (1988) Introduction to the Theory and Practice of
Econometrics. John Wiley and Son Publishers.
Marija N.Norusis (2007), “SPSS 15.0 Guide to Data Analysis”, Prentice Hall.
Sabine Landau and Brian Everitt (2004),”A Handbook of Statistical Analyses using SPSS,
Chapman & Hall/CRC, Boca Raton, Florida, 2004.
Semester V
EC-5012- MATHEMATICAL METHODS FOR ECONOMICS-OPTIONAL
PAPER
Course Objectives:-
The purpose of this course is to show how mathematical tools can be used by
students to understand economic theory
The economic economic theory will be more coherent and organized when students
become more adept at using mathematical techniques
Students will see applications of this course to all the economics they have studied in
the past or will study in the future.
The goal of the course is to make students understand and be able to use the
mathematics required for studying economics at the masters level
Module 1: Basic Mathematics: Elementary Concepts of algebra, trigonometry and analytical
& application of quadratic curves. Concept of function and types of functions;
[10hrs]
Module 2: Differentiation:;
Concept of limit , continuity , Rules of differentiation, Interpretation of revenue, cost,
demand, supply functions; rules of partial differentiation and interpretation of partial
derivatives; Problems of maxima and Minima in single and multivariable functions
,Constraint optimalisation; Simple problems in market equilibrium. [15hrs]
Module 3: Euler’s theorem, cobb-Douglas production function, elasticity theorems, multi
product monopolist, baumols sales maximization, stackelberg solution [15 hrs]
Module 4 Integration: Concept of integration; simple rules of integration; definite
integrations application to consumer’s surplus and producer’s surplus. [10hrs]
Module 5: concept of matrix-their types, simple operations on Matrices, Determinants and
Matrices: Basic properties of determinants. Solution of simultaneous equations through
Cramer’s rule; matrix inversion, Introduction to input-output analysis.
[10hrs]
Basic Reading List:
. 1. Jean Webber [1982] mathematical analysis, Harper & row publishers, New York
2. Chiang, A. C. [1984] Fundamental Methods of Mathematical Economics, McGraw
Hill, New York.
3. Yamane, Taro [1975] Mathematics for Economists, Prentice Hall of India, New Delhi.
4 Allen, R.G.D. [1974], Mathematical Analysis for Economists, Macmillan Press and
ELBS. London
5. Hadley, g. [1962] Linear Programming, Addison Wesley Publishing co.,Massachusetts.
Additional Reading List:
1. D. Bose [1996] Mathematical Economics, Himalaya publication. Bombay
2. Mehta & Madanani[2009], laxmi narayan agarawal publishers ,Agra
ST. JOSEPH’S COLLEGE (AUTONOMOUS)
SEMESTER V -ECONOMICS
OPTIONAL PAPER-EC 502B- ENVIRONMENTAL ECONOMICS
Course Objectives: To inculcate the need to understand and appreciate the relationship between
environment and economic development.
To provide a theoretical and empirical basis of environmental economics as an
applied branch of economics.
Course Content
Module 1: Introduction to Environmental Economics
Definition, need, nature and scope of Environmental economics; relation between
Environmental economics and economics, the material balance model. Ecology and resource
economics. Individual preference and social choice. Efficiency of markets, market failure-
public bad and externalities. (10hours)
Module II: Natural Resource Economics
Basic concepts-current, potential and resource endowment, renewable and non renewable
resources, rate of extraction and regeneration. Problem of common property resources. Coase
theorem . Land degradation-types, effects; unsustainable agricultural practices- the case of
pesticides. Forest as a resource-deforestation, causes, effects. Water resource- pollution,
causes, effects, water resource management. Energy resource- types, energy crisis; Waste-
types, effects; Noise pollution-source, effects; Air pollution- sources, effects. Environment
management (15hours)
Module III: Population, Environment and Sustainable Development
Population, growth of species, density, migration, food security. Ecology of the poor and the
affluent, gender and environment. Sustainable development-concept, definition, Hartwick,
London school and safe minimum approach -goals, measurement and obstacles to sustainable
development. Conventional development versus sustainable development. Indicators and
measurement of sustainable development ,Kuznet curve . Recycling, reuse and techno centric
solutions to sustainable development. Role of govt, Environment legislation. (10hours)
Module IV: Environmental Valuation and Instruments
Need for environmental valuation, concept of total economic value; cost-benefit analysis,
cost effectiveness analysis; averting behaviour approach, weak complementary approach.
Methods of economic valuation of environment- methods based on market prices, proxy
market methods (hedonic and travel cost method) survey-based method (contingent valuation
method). Some environmental regulation tools direct and indirect -pollution fees, emission
trading rights, taxes on inputs/ outputs of polluting activities, subsidies for adopting cleaner
technologies -effluent treatment plants, deposit refund system. Environment audit (15 hours).
Module V: International Environmental Issues
International environmental issues –ozone depletion, global warming, acid rain, bio diversity
loss, endangered species, desertification, international trade issue –international cooperation.
( 5 hours)
Module VI: National Environmental Concerns and Select Legislations
National issues – case studies, development and environmental issues. Environment
legislation in India ,Forest (Conservation) Act, 1980 , Prevention Of Cruelty To Animals
Act, 1960, Water (Prevention and Control of Pollution) Cess Act, 1977, Air (Prevention and
Control of Pollution) Act 1981, Biological Diversity Act 2002, Labeling of Environment
Friendly Products, Central Pollution Control Board. ( as assignment and presentation
topics).(5hours )
Reference Books :
Anderson David (2007) Environmental Economics And Natural Resource Management , 2 edition Pensive
Press.
B Field and M Field (1997) Environmental Economics: an Introduction. 3rd edition. New York: McGraw Hill.
B.Field (2001) Natural Resource Economics: an Introduction. 1st edition only. McGraw Hill
Baumol W and Oates W (1988) The Theory of Environmental Policy. 2nd edition. Cambridge: Cambridge
University Press.
Bhattacharya N, Rabindra (2001) Environmental Economics- An Indian Perspective. Oxford University Press,
Delhi.
C Kolstad (2000) Environmental Economics. Oxford: Oxford University Press.
C Russell ( 2001) Applying Economics to the Environment. 1 edition only. Oxford: Oxford University Press.
Common M (1988) Environmental and Resource Economics: an Introduction. Harlow:
D W Pearce (1976) Environmental Economics. Harlow: Longman
Dasgupta P (1982) The Control of Resources. Oxford: Blackwell.
Fisher A C (1981) Resource and Environmental Economics. Cambridge: Cambridge University Press.
Folmero J Gabel h l (2000) Principles of environment and resource economics, Edward Elgar Publications,
London
Freeman A M, Haveman R and Kneese A (1973) The Economics of Environmental Policy. New York: Wiley
Herfindahl O and A Kneese(1974) Economic Theory of Natural Resources. Columbus: Merrill
J Hartwick and N Olewiler (1998) The Economics of Natural Resource Use. 2nd edition.
J Lesser., D Dodds and R Zerbe (1997) Environmental Economics and Policy. 1st edition only. Reading: Mass:
Addison
J R Kahn ( 1998) The Economic Approach to Environmental and Natural Resources. 2nd edition. Fort Worth:
Dryden Press
Kadekodi G K (Ed) (2004). Environmental Economics in Practice. Oxford University Press.
Kneese A (1977) Economics and the Environment . Harmondsworth: PenguinLongman
N Hanley., J.Shogren and B.White ( 2001) Introduction to Environmental Economics. 1st edition , Oxford:
Oxford University Press.
Opschoor (1999) Environmental Economics and development, Edward Elgar, London
R K Turner., D W Pearce and I Bateman. (1993) Environmental Economics: an Elementary Introduction. 1st
edition only. Baltimore: Johns Hopkins UP.
Sankar Ulaganathan (2001) Environmental Economics , Oxford University Press, Delhi.
Sengupta, Ramprasd (2001),Ecology and economics – An approach to sustainable development, Oxford
University Press, Delhi
T Tietenberg ( 2000) Environmental and Natural Resource Economics. 5th edition. Addison Wesley.
T Tietenberg( 1998) Environmental Economics and Policy. 2nd edition ,Addison Wesley.
SEMESTER V- OPTIONAL PAPER
INDIAN ECONOMY
Course objectives
To enable students to have an overview of the workings of the Indian economy.
To help them understand the changing trends in the Indian Economy
To understand the leading issues in India’s economic development.
MODULE I STRUCTURE OF THE INDIAN ECONOMY
India- a developing economy, features , Composition of National Income(3hrs)
Demographic profile: Trends in population growth- growth rate, density. age, sex,
size, composition (1 hr) Impact of a rising population on economic development(1 hr)
National Population Policy 2000 (2 hrs)
Employment in traditional and modern sector, Work force participation rate in India,
Analysis of the trend in occupational pattern – Estimates of unemployment in India,
Measures to reduce unemployment.(3 hrs)
Brief overview of the recent rural and urban poverty alleviation programmes - Swarna
jayanti Gram Swarozgar , Indira Awaas Yojana , Mahatma Gandhi National Rural
Employment Guarantee Act,Jawarharlal Nehru National Urban Renewal Mission
(2005) Swarna Jayanthi Shahari Rozgar Yojana (2009) (4hrs)
Regional inequalities- measures to reduce regional inequalities (1 hr)
[TOTAL: 15hrs]
MODULE II AGRICULTURE
Trends in agricultural production , causes for low agricultural production (2 hrs)
Agricultural Inputs- irrigation -defects , modern irrigation systems, watershed
development, dry land farming Research and development ,Plant bio-technology,
fertilisers ,pesticides (4 hrs)
Land reforms –need for Land reforms and appraisal of Land reforms in India (2hrs)
Animal husbandry, horticulture , floriculture , aqua culture (2 hrs)
Sources of agricultural finance, micro finance , rural infrastructure development fund-
NABARD (3hrs)
Agricultural marketing- defects, Agricultural prices Policy- procurement price and
minimum support price ,cold storage , processing of agricultural products (3 hrs)
Concept of food security, Food security in India ,Public Distribution System (2hrs)
WTO and Indian agriculture – market access , Domestic support , export subsidies
Intellectual property rights( 2hrs) [TOTAL: 20 hrs]
MODULE III INDUSTRY
Over view of the Industrial policies prior to 1991 ( 2hrs). Industrial Policy 1991- a
critical appraisal – Implications of the new Industrial policy- Strengthening of the
private sector , Liberalisation and Globalisation - Public-private partnership (4hrs)
Problems of public sector enterprises- disinvestment – BIFR –Present policy of the
government towards the public sector as per the National Common Minimum
Programme-Concept of Maharatna, Navratna and miniratna (4 hrs)
Concept of Sunrise industries . Performance of the following industries in India-
Textiles and garments Gems and Jewellery, Bio technology , Engineering and
automobile industry, (5hrs)
Small scale industries- problems, prospects and challenges.(3hrs) [TOTAL: 14 hrs]
MODULE IV INFRASTRUCTURE (PHYSICAL AND SOCIAL)
Sources of Power in India- conventional and non conventional-The energy crisis-
causes effects and remedies- Power sector reforms- Rajiv Gandhi Gram VIdyuth
Karun Yojana (2 hrs)
Telecom and Information Technology (1 hr)
Transport system- Road transport system in India – Growth of Indian Railways –
Water transport and Civil aviation (4 hrs)
Health sector- immunization, maternal and child health strategies, prevention of
communicable diseases- Health infrastructure , National Rural Health Mission (2hrs)
Education infrastructure – Primary , secondary and Higher education, Technical
education- Universal promotion of primary education, Sarvasiksha Abhiyan (2hrs)
[TOTAL: 11 hrs]
1) Alak G-Indian Economy, its nature and problems
2) Ruddar Datt and K.P.M. Sundharam -Indian Economy
3) DhingraI.C-The Indian Economy
4) Misra SK and V.K.Puri-The Indian Economy Its Development Experience
5) Uma Kapila-An overview of Indian Economics-volume I-IV
6) Agarwal A..N –Indian Economy :Problems of development and planning
7) Academic Foundation – Economic Development of India –Monthly updates.
8) RBI –Hand book of statistics on the Indian Economy.
9) India development report
10) NSSO –Reports and publications
11) Economic Survey
Semester VI
EC-60 - DEVELOPMENT ECONOMICS-COMPULSORY PAPER
Course Objectives:
To make students aware of the economic principles / theories that can be used to
understand various issues and policies of developing economies.
Study how resources, institutions, mechanisms are used for development.
Aims to analyze and understand the allocation, distribution and utilization of scarce
resources in the process of development.
Study transformation of developing countries.
Module I :Development economics- Concepts and issues related to economic
development (10)hours
Terminologies – Meaning of Development- values in development, Human Capabilities-
Meaning of Economic growth – Distinction between economic development and economic
growth.(2)
Measurement of development- -PCI, HDI, PQLI, GDI, Green GDP (2)
Characteristic features of developing nations( 2)- Factors facilitating development –
Economic and non economic factors –(2) Obstacles to development- vicious circle of poverty
– scarcity of capital – market imperfections.(2)
Module II: Resources for development (16 hrs)
Natural Resources and economic development (2) Human Resources- Human capital
formation- Capital (4) – Resources for Capital Formation- Domestic resources(Domestic
savings , taxation , deficit financing, profits from public sector enterprises) – Foreign Capital
(3)– Role of the Entrepreneur in economic development (1 )
Technology and development – Role of technology in economic development (2) Capital –
output ratio – incremental capital -output ratio – Factors determining Capital – output ratio
(2) Choice of techniques – Labour intensive techniques versus capital intensive
techniques.(2)
Module III: Poverty, economic inequality and development (6) hours Conceptual issues. Absolute and relative poverty, poverty line- vicious circle of poverty,
Inequality of income and wealth distribution; Lorenz Curve, Effects of inequality
Poverty Alleviation methods- redistribution, Sen’s capacity building.
Module IV: Theories of economic development and economic growth(21)hours Adam Smith ‘s contribution to the theory of development (3)
Karl Marx ‘s theory of development.(3)
Rosenstein – Rodan – Big Push theory (3)
Ragnar Nurkse –Balanced Growth (2)
Hirschman-Doctrine of Planned Unbalanced Growth(3)
Rostow’s Stages of Development (3)
Harrod-Domar- Theory of Capital Accumulation(4)
Module V: State and Development( 6) hours Role of the state in promoting economic development – Change in institutional framework ,
Agricultural development -Industrial development – infrastructure – removal of regional
disparities (2) State and planning, decentralised planning and people participation.(2)
Role of Monetary Policy and Fiscal Policy in Development. 2 hrs
Module VI: Case studies( To Be given as Assignment to the students)
A brief overview of emerging economies – Brazil, India , China , South Africa and Mexico
Reading List:
1. Ray ,Debraj .Development Economics., Princeton University Press. 1998(basic text).
2. Mikkelson,Britha.Methods for development work and research. Sage pub.1995.
3. Nawab Syed, Naqvi Haider .Development Economics – Nature and Significance..
Sage Publication, New Delhi. 2002.
4. Hunt Diana. Economic Theories of Development – An Analysis of Competing
Paradigm. Harvester Wheatsheaf, New York. 1989.
5. Kuotsai, Tom Liou Handbook of Economic Development. Edited. . Marcel Dekker
Inc. New York. 1988.
6. Meir Gerald, Stiglitz Joseph. Frontiers of Development Economics. Oxford
University Press and World Bank Institute. 2001.
7. Basu Kaushik.Analytical Development Economics., Oxford University Press, 1988.
8. Das Debendra K. Globalization and Development – Experiences and Challenges.
Deep and Deep Publication, New Delhi. 1999.
9. Baker ,Judy L Evaluating Impact of Development Projects on Poverty – A Handbook
for practitioners., World Bank Institute. 2000.
10. Banberger ,Michael. Integrating Quantitative and Qualitative Research in
Development Projects. World Bank, 2000.
11. Rabindra Bhattacharjee Ed,Environmental Economics – An Indian Perspective.
Oxford University Press. 2001.
12. Sengupta Ramprasad. Ecology and Economics., Oxford University Press. 2001.
13. World Bank Reports. Various Issues.
14. Human Development Report. Various Issues.
15. Asian Development report. Various Issues.
16. S.K Mishra and V.K Puri, Economics of Development and Planning, Himalaya
Publishing House.
17. Todaro,Micheal.Developing economies.
18. Higgins,Benjamin. economic development(principles,problemsand policies).
19. Meir,G.M,Baldwin.R.E.economic development
ST .JOSEPH’S COLLEGE (AUTONOMOUS) BANAGLORE 560027
SEMESTER VI-ECONOMICS OPTIONAL PAPER-EC.605-ENTREPRENEURSHIP AND BUSINESS DEVELOPMENT
Course Objectives: 1. To motivate students to venturing into entrepreneurship as an alternative career option.
2. To develop and equip students with the necessary knowledge, skill and attitudes for
pursuing Entrepreneurship
Course Content: 60 hours
Module I: Entrepreneurship- Concepts and Theories Entrepreneurship-definition, role of entrepreneurship in economic development; types
,entrepreneurship mind set ,skills required in entrepreneurship, intrapreneurship,
Schumpeter’s theory of innovation, Peter Drucker, Locus of control ,McClelland
achievement motivation(12 hours)
Module 2: Developing a Business Plan
Entrepreneurial process- -generating business ideas, identifying and evaluating business
opportunities, product evolution and innovation, developing business plan, new entry
strategy. The marketing plan -Market Analysis– market research for the new venture,
elements of marketing- mix- product, price, promotion and place, SWOT analysis. Marketing
strategy, growth. Ethics and social responsibility of entrepreneurs. (18 hours)
Module 3: The Organizational Plan
Types of companies- limited and unlimited; proprietary, partnership and corporation.
Formation of companies-documents –memorandum of association, articles of association,
prospectus. Designing the organization- Principles of management, building the management
team. Legal issues for entrepreneurs –patents, trade marks, copy rights, licensing, signing of
contract .(12 hours)
Module 4: The Financing Plan
Activities of a Business - Operating Activities, Investing Activities and Financing Activities.
Sources of New Venture Funding. Angel Investors, Venture Capitalists, Private Equity,
Public Equity, and Banks-5 C’s of lending. Preparing Financial Projections- Basic Financial
Concepts-–book keeping, financial accounting, cost in decision making- Break Even
Analysis, Ratio analysis (concepts) (12 hours)
Module 5: Net Working for Entrepreneurs Net working for entrepreneurs- Social net working, Role of Govt. Agencies in Promoting
Entrepreneurship, Small Industries Services Institutes, SIDBI, Khadi and Village Board and
Financial Institutions, self help groups, women entrepreneurs. (6hours)
BASIC TEXT BOOK
Hirsch. D Peters, Peters P Michael, and Shepherd A Dean (2007) Entrepreneurship, VI
Edition , Tata McGraw- Hill , Delhi.
READING LIST :
S. Moharana and Dr. C.R. Dash, yr Entrepreneurship Development Pub. RBSA
Publishers, Jaipur.
Khanna, S.S. (yr ) Entrepreneurial Development , S. Chand & Company Ltd., New Delhi.
C.B. Gupta ,N.P. Srinivasan, (1992).Entrepreneurial Development ,Publisher Sultan
Chand & Sons.
D.N. Mishra, (yr) Entrepreneur and Entrepreneurship Development and Planning In India,
Chugh Publication, Allahabad.
Bhide, Amar V(2000), The Origin And Evolution Of New Business, Oxford University
Press, New York.
Dollinger M.J. (2006), ‘Entrepreneurship Strategies and Resources’, 3rd Edition, Pearson
Education, New Delhi.
Desai, Vasant Dr. (2004) Management of Small Scale Enterprises New Delhi:
Himalaya Publishing House
SIDBI Report on Small Scale Industries Sector [Latest Edition]
Verma, J.C and Gurpal Singh, (2002), Small Business and Industry-A Handbook For
Entrepreneurs, Sage publications, New Delhi.
ST .JOSEPH’S COLLEGE (AUTONOMOUS)
SEMESTER VI- ECONOMICS OPTIONAL PAPER-ENTREPRENEURSHIP DEVELOPMENT
TOPICS FOR ASSIGNMENTS
Students can choose to do their assignment on any topic given below. They must register
the topic with the course facilitator. Assignments should be of 1500 words or less typed
on single side, 1 ½ spaced, Times New Roman, font size 12. Tables and graphs if used
are excluded from word limit. In all cases of interviews it is suggested to develop the
interview into a case study using the case study guide lines given.
1. Meet two entrepreneurs and discover the meaning of the term entrepreneurship from
them. Identify the factors that motivated them to start their own venture. What values,
skills and attitudes do you believe have contributed to their taking entrepreneurship as
career?
2. Meet two individuals who wanted to become entrepreneurs but did not do so. Ask
them why they first considered to become entrepreneurs and later why did they drop
their plans. What were the major obstacles they felt that stood in their way?
3. Using John Mullin’s seven domain tool, identify how the two entrepreneurs you are
interviewing have identified his/her business interest.
4. Generate business ideas especially in any of the fields like old age, destitute women,
slum dwellers, rural poor, working children, caring for the sick. You can choose other
field of interest as well. Develop any of the idea into a business plan.
5. Innovate any existing product or service and design a marketing plan for the product.
6. Find two examples of firms that pioneered a new product in a new market and were
able to achieve long run success based on that entry and two who were not pioneers
but eventually took over the pioneer as market leader .In your opinion why did this
happen .
7. Give two examples of firms that have used imitation as a way of reducing risk of their
entry. What aspect of risk did it want to reduce and was it successful in doing so.
8. Interview two entrepreneurs and discover how the entrepreneur has been able to strike
a balance between ethics and business needs.
9. Interview entrepreneurs to gain insight into the team working process in the business.
10. Make a study of the financing methods and the problems faced by two startup
entrepreneurs.
11. What volume of sales is required to reach break even for the following business. The
variable cost of producing one unit of the product is Rs 5, the fixed cost of plant and
labor is Rs 50, 00,000 and the selling price of a single product is Rs 50. How useful
will this financial plan be when it is based on the assumption of the future and we
know that we are not confident that these assumptions are not going to be 100 %
correct. Explain what can go wrong with such plans
12. Attempt to make a study of the various sources of funding in an established business.
13. Interview a business loan officer at a bank to determine the banks lending criteria for
small businesses and for new businesses. Do they use the 5 Cs for lending? Which of
the 5 Cs appear to be the most important?
14. Assume that you have been lucky and have been given a considerable fortune. You
now decide to become a business angel straight after graduation. How would you go
about setting up and running your business angel business. Be specific about
generating deal flow, selection criteria, the desired level of control and involvement
in the investee.
15. Find two examples of product/service advertising available in magazines / print/
recorded and explain how they fit in with the rest of the marketing mix and which
group of customers have been targeted.
16. How costly is it to put an advertisement in the local newspaper, in the business
telephone directory, on radio, on television and in magazines. What types of products
would benefit from each such advertising outlet mentioned .Why?
17. Using the internet obtain copies of two patents that are at least three years old. What
are the elements that are common and different across these patterns? Which one do
you believe will be a greater success?
18. Find information about two ventures that were failures and discuss the underlying
reasons for the failure in each case.
19. Identify the various Govt and local bodies that are involved in the setting up of an
enterprise in India. Explain the type of support they give to start up ventures.
20. Interview two men and two women entrepreneurs and find out whether they believe
that the tasks of being entrepreneur are different from their counterparts. What are the
advantages of being women / men entrepreneurs?
21. What are the world’s most famous trade marks? Use data to back up your answer.
22. Interview a self help group and study how they run their business.
SEMESTER VI- OPTIONALPAPER II
EC 606 : FINANCIAL ECONOMICS & MANAGEMENT
Objectives:
1) To help the students to understand & learn the working of capital markets.
2) To have knowledge of capital market and money market.
3) To help in financial decision making.
Module-I: Theoretical background to financial economics
Introduction-Definition of financial economics. (1 hr)
Theoretical background – Individual behaviour under Uncertainty: Choices involving
risk – The St. Petersburg paradox and Bernoulli’s hypothesis (3 hrs). Neumann –
Morgenstern method of constructing utility index under risky situations .(3hrs)
Attitude towards risks- Risk averter ,risk lover ,risk neutral.(3 hrs)
Friedman –Savage hypothesis.(3hrs)
Markowitz hypothesis .(2hrs) Total- 15 hrs
Module II- Asset pricing and valuation
Time value of money : present value , net present value and internal rate of return(6
hrs)
Law of one price and arbitrage (1 hr) Total – 7 hrs
Module-III Sources of finance
Basic concepts-Financial planning (2 hrs) –Capitalization ( 2hrs)-Financial analysis
(2 hrs) -Money market & capital Market. Primary (security) market and Secondary
market (3 hrs)-Cost of raising capital (2 hrs) -Investment bankers(1 hr)
Futures and options (1 hr)
Long term Finance-Shares, Concepts types-Preference shares-advantages, limitations-
(2 hrs) Equity shares-( 2 hrs) Debt Capital-Debentures-Mutual funds. (1 hr)
Total- 18 hrs
Module-IV: Indian capital market
Indian capital market-Constituents, Merchant banking activities-Recent trends in
capital market-Venture capital. (4 hrs)
Evolution of stock exchange- Role of SEBI. (2 hrs) Total 6 hrs
ModuleV: Capital structure-meaning, need & importance-(2 hrs) Optimum Capital structure-
Theories of capital structure-traditional theory (3 hrs), Modigliani-Miller theory-(2hrs)
Capital gearing,(2 hrs) capital structure and cost of capital (2 hrs).Portfolio management-
theories capital asset pricing model. (3hrs)
Total 14 hrs
REFERENCE BOOKS:
1) J.L.Farul-Portfolio management
2) Financial economics & management-Banerjee & Agarwal
3) Contemporary investment:security & portfolio-Douglas Hearth
4) Security analysis & portfolio management-Donald fisher.
5) Principles of Financial Economics, by Stephen F. LeRoy and JanWerner, Cambridge
University Press, First Edition.
6) Financial Theory and Corporate Policy, by Thomas E. Copeland, J.Fred Weston and
Kuldeep Shastri, Addison Wesley, Fourth Edition.
7) Empirical Corporate Finance (International Library of Critical Writings in Financial
Economics) by Michael J. Brennan
8) Zvi Bodie , Robert merton , David Cleaton - Financial economics (Pearson)
9) M.P.Narayanan , Vikram .K..Nanada-Finance for strategic decision making (Wiley
,India)