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MEC

MASTER OF ARTS (ECONOMICS)

ASSIGNMENTS 2013-14 Second Year Courses

(For July 2013 and January 2014 Sessions)

School of Social Sciences Indira Gandhi National Open University

Maidan Garhi, New Delhi-110 068

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Master of Arts (Economics) TMA

(2013-14)

Dear Student,

As explained in the programme guide for MEC, assignments carry 30 per cent weightage in a course and it is mandatory that you have to secure at least 40 per cent marks in assignments to complete a course successfully. Note that you have to submit the assignments before appearing in Term End Examination of a course.

Before attempting the assignments please read the instructions provided in the programme guide sent to you separately. In this booklet we have included the assignments for all the courses pertaining to the second year. In each course there is a Tutor Marked Assignment (TMA). You have to do the assignment for those courses for which you have registered. Do remember that you have to prepare and submit the assignments separately for each course. Make sure that you submit the assignments well in time for those courses in which you plan to appear in the Term End Examination.

Submission

For July 2013 session, you need to submit the assignments by March 31, 2014, and for January 2014 session by September 30, 2014 for being eligible to appear in the term-end examination. Assignments should be submitted to the Coordinator of your Study Centre. Obtain a receipt from the Study Centre towards submission.

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MEC-006: PUBLIC ECONOMICS

Assignment

Course Code: MEC-006 Asst. Code: MEC-006/AST/2013-14

Maximum Marks: 100

Note: Answer all the questions. While questions in Section A carry 20 marks each (to be answered in about 500 words each) those in Section B carry 12 marks each (to be answered in about 300 words each). In the case of numerical questions word limits do not apply.

Section A

1. Name a few instruments of public intervention and categorize them. Explain how public intervention tries to influence allocation and distribution of societal resources.

2. What is the main hypothesis in Downs Economic Theory of Democracy? Explain how maximization of votes is neither a necessary nor the sufficient condition for forming the government in a democracy.

Section B

3. Using different tax rates show how the deadweight loss would vary?

4. Answer any two of the following in about 250 words each;

(i) Do you think that the theory of optimal tax system is relevant for tax policy issues?

(ii) Explain the objectives and meaning of public debt management. Write two principles of public debt management as stated by Philip E. Taylor.

(iii) Evaluate Bowen and Blacks models for the identification of Median Voter preference.

5. How transfer of grants correct horizontal and vertical imbalance in a federal country and achieve fiscal equalization?

6. Differentiate between: a) Devolution of Functions and Devolution of Revenues

b) Inflation and Deflation c) Internally Inconsistent Policy and Externally Inconsistent Policy

7. Define the following: a) Kaldor Compensation Criteria b) Rawls Social Welfare Function c) Opportunistic Political Business Cycle

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MEC-007: INTERNATIONL TRADE AND FINANCE

Assignment

Course Code: MEC- 007 Assignment Code: MEC-007/AST/2013-14

Marks: 100

Note: Answer all the questions. While questions in Section A carry 20 marks each (to be answered in about 500 words each) those in Section B carry 12 marks each (to be answered in about 300 words each).

Section A

1) What is the utility of WTO for developing countries? Explain the main features of multilateral framework of international trade.

2) (a) Critically examine the role of IMF as an international financial institution. (b) What are the arguments given in favour of free trade policy as a tool of economic

development?

Section B

3) Critically examine the Ricardos theory of International Trade. 4) How many rounds of multilateral negotiations have taken place so far? Elaborate. 5) What is the concept of terms of trade? Discuss its various forms.

6) Critically examine Indias trade performance since 1950. Discuss Indias strategic considerations for international trade.

7) What are the various instruments of trade protection? Discuss. Differentiate between quotas and tariffs.

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MEC-008: ECONOMICS OF SOCIAL SECTOR AND ENVIRONMENT Assignment

Course Code: MEC-008 Assignment Code: MEC-008/AST/2013-14

Maximum Marks: 100

Note: Answer all the questions. While questions in Section A carry 20 marks each (to be answered in about 500 words each) those in Section B carry 12 marks each (to be answered in about 300 words each). In the case of numerical questions word limits do not apply.

Section A

1. Explain the different approaches by which poverty is defined and measured.

2. Discuss how growth accounting equation and production function contributed to recognizing the significance of education to economic development.

Section B

3. Explain the contribution of property rights theory to Institutional Economics.

4. Write a note on Total Economic Value of Environment.

5. Bring out the significance of bionomic model in the economics of renewable resources?

6. What does Barkers In-Utero Hypothesis signify?

7. How is the method of shadow prices useful in accounting for the societal impact of the production of a commodity?

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MEC-009: RESEARCH METHODS IN ECONOMICS

Assignment

Course Code: MEC-009 Assignment Code: MEC-009/AST/2013-14

Maximum Marks: 100

Note: Answer all the questions. While questions in Section A carry 20 marks each (to be answered in about 500 words each) those in Section B carry 12 marks each (to be answered in about 300 words each). In the case of numerical questions word limits do not apply.

Section A

1. The method of science is not the method of induction but the method of hypothetico-deduction. Comment.

2. State the various methods of Random Sampling. Explain the procedures involved in drawing a sample by stratified random sampling method. Give illustration in support of your answer.

Section B

3. What is the distinction between statistical hypothesis and research hypothesis? Explain with an example the various steps involved in hypothesis testing.

4. Consider the following regression model:

= (a) Is this a linear regression model? (b) How would you estimate this model? (c) What will be the behavior of Y as X tends to infinity (d) Give an example where such a model will be appropriate.

5. What do you mean by the smoothing? State the steps involved in smoothing the time series data.

6. Which tools are used for collecting qualitative data? How do you test the trust-worthiness of qualitative data?

7. State the various sources of data on trade and finance. Explain the reasons for divergence of data on merchandise trade deficit/surplus by DGCI&S and RBIs BOP data.

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MECE-001: ECONOMETRIC METHODS

Assignment

Course Code: MECE-001 Asst. Code: MECE-001/AST/2013-14

Maximum Marks: 100

Note: Answer all the questions. While questions in Section A carry 20 marks each, those in Section B carry 12 marks each.

Section A

1. What do you understand by autocorrelation? What are the consequences of autocorrelation? How do you detect autocorrelation in a data set? Explain the steps you would follow to remove the problem of autocorrelation.

2. Consider the regression equation where ui is a stochastic error terem. (a) Explain the need of including the ui in the model (b) What assumptions regarding the error term are needed to prove the Gauss-Markov

theorem? (c) Prove the Gauss Markov theorem for the estimator of .

Section B

3. What is meant by heteroscedasticity? Explain one of the remedial measures for the problem of heteroscedasticity.

4. What is meant by dynamic model? Explain how the following model can be estimated?

where || 1 + . In the above model is distributed independent, normal with mean zero and variance and || 1.

5. What is meant by indirect least squares (ILS) method? Explain how the following model can be estimated using this method? Demand function: ! "#$

Supply function: ! "#$

where Q = quantity, P = Price, and X = income.

6. Explain the steps followed in estimation of parameters through the method of Generalised least squares (GLS).

7. Explain the concept of multicollinearity. What are its consequences on estimates? What remedial measures would you suggest for problem of multicollinearity?

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MECE-003 ACTUARIAL ECONOMICS: THEORY AND PRACTICE

Assignment

Course Code: MECE-003 Asst. Code: MECE-003/AST/2013-14

Maximum Marks: 100

Note: Answer all the questions. While questions in Section A carry 20 marks each, those in Section B carry 12 marks each.

Section A 1) (i) Discuss the difference between classical and Bayesian analysis OF credibility theory.

(ii) From the following table, a risk is picked at random and we do not know what type it is.

For this randomly selected risk, during one year there are 3 claims. Use Bayesian analysis to predict the future claim frequency of this same risk. (Assume that the types are homogeneous).

Type Prior of risk in this type Average (annual) claim frequency

1 70% 0.4

2 20% 0.6

3 10% 0.8

2) If you are asked to demonstrate the interplay between finance and insurance principles, how would you do that by using unit-linked insurance contract as example?

Section B

3) Describe the basic principles of reserving methods.

4) (i) Why is it necessary to model interest stochastically? How would you like to develop a model of stochastic interest?

(ii) Rs.100 deposited 20 years ago has grown at interest to Rs.235. The interest was compounded twice a year. What were the nominal and effective interest rates?

5) Write short note on the following. a) Survival Function b) Compound-Poisson Process c) Black-Scholes model d) Risk neutral valuation

6) What is a DFA model? Outline its important components and spell out their significance.

7) Describe the major claim reserving models. Given a choice which of these would you like to prefer? Give reason in support of your answer.

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MECE-004: FINANCIAL INSTITUTIONS AND MARKETS

Assignment

Course Code: MECE-004 Asst. Code: MECE-004 / AST/2013-2014

Maximum Marks: 100

Note: Answer all the questions. While questions in Section A carry 20 marks each (to be answered in about 500 words each) those in Section B carry 12 marks each (to be answered in about 300 words each). In the case of numerical questions word limits do not apply.

Section A

1 Explain the concept of a derivative asset. Distinguish between forward contracts and futures contracts. Discuss the Black-Scholes formula on derivative pricing.

2. Explain the concept of term structure of interest rates. Critically examine the major theories that have been put forward to explain the term structure of interest rates.

Section B

3. Give a theoretical model of central banking, bringing out the relationship between the monetary base and monetary aggregates. What are instruments of monetary policy used by central banks?

4. Compare the impact of monetary policy under fixed exchange rates with those under flexible exchange rates.

5. What do you understand by credit risk? Intuitively explain the Linear Probability Model of credit risk.

6. Discuss the concept of leverage for a firm. Discuss the important financial and leverage ratios used. Explain the Merton-Miller theorem.

7. What are the requirements of a good index of share prices? Bring out the market capitalisation-weighted and non-market-capitalisation weighted methods for the construction of index of share prices.

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MPA-015: PUBLIC POLICY AND ANALYSIS

Assignment

Course Code: MPA-015 Assignment Code: MPA-015/Asst/TMA/2013-14

Marks: 100

This Assignment consists of Section-A and Section-B. There are five questions in each section. You have to answer a total of five questions in about 500 words each, selecting at least two questions from each section. Each question carries 20 marks.

Section - A 1. Discuss the significance of policy sciences and various stages in policy cycle.

2. Critically examine Laswells contribution to the study of policy sciences.

3. Analyse the role of inter-governmental relations in policy-making.

4. Civil society organisations are expected to play an important role in policymaking and development. Comment.

5. Discuss the current paradigm shift in Indian public policy, and bring out the constraints in public policy formulation.

Section B

6. Evaluate the bottom up and top down approaches to policy implementation and justify the need for following multiple approaches.

7. Discuss the process of policy monitoring and suggest the remedial measures for effective monitoring.

8. Describe the modes of policy delivery with special reference to the role of judicial bodies.

9. Simulation models are more appropriate than optimisation models. Critically evaluate the statement.

10. Evaluate the telecom policy of India.

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MPA-017: E-GOVERNANCE

Assignment

Course Code: MPA-017 Assignment Code: Asst/TMA-017/2013-14

Marks: 50

This Assignment consists of Section A and B. There are five questions in each Section. You have to answer a total of five questions in about 400 words each. It is necessary to attempt at least two questions from each Section. Each question carries 10 marks.

Section A 1 Discuss the concept and models of e-governance. 2 ICT enables transformation of traditional administration into a sophisticated and an

electronic one. Discuss. 3 Describe the role of ICT in agricultural development. 4 Enumerate the different modules enabling e-panchayat in Andhra Pradesh. 5 ICT applications facilitate virtual learning environment for learners-Explain.

Section B 6 Discuss the advantages and disadvantages of e-commerce. 7 Describe the ICT applications in Indian Railways. 8 Saukharyam Project of Visakhapatnam enables seamless services to the citizens-

Comment. 9 The Right to Information Act 2005 upholds the fundamental right to know and the

freedom of speech and expression-Justify. 10 Examine the critical gaps in the effective implementation of e-governance in India.