University of Gour Banga - Amazon S3 · PDF fileCourse 1.3 Mathematical Economics ... The Department of Economics, University of Gour Banga, ... A.C. Chiang: Fundamental Methods of

University of Gour Banga (Established under West Bengal Act XXVI of 2007)

N.H.-34(Near Rabindra Bhawan), P.O.:Mokdumpur Dist.: Malda,

West Bengal, Pin-732103

M.A. in Economics Two Years (Four Semesters) Syllabus

Main Feature of the Syllabus M.A. in Economics

Semester Paper Code Paper Name Theory Marks Time

Internal Assessment

Marks Time Total

Marks Total Time

I

Course 1.1 Microeconomics-I (ECNMA101) 40 2.00 Hr. 10 30 Min. 50 2.30 Hr.

Course 1.2 Macroeconomics-I (ECNMA102) 40 2.00 Hr. 10 30 Min. 50 2.30 Hr.

Course 1.3 Mathematical Economics (ECNMA103) 40 2.00 Hr. 10 30 Min. 50 2.30 Hr.

Course 1.4 Statistics (ECNMA104) 40 2.00 Hr. 10 30 Min. 50 2.30 Hr.

Course 1.5 Development Economics-I (ECNMA105) 40 2.00 Hr. 10 30 Min. 50 2.30 Hr.

Total 250

II

Course 2.1 Microeconomics-II (ECNMA201) 40 2.00 Hr. 10 30 Min. 50 2.30 Hr.

Course 2.2 Macroeconomics-II (ECNMA202) 40 2.00 Hr. 10 30 Min. 50 2.30 Hr.

Course2.3 Growth Economics (ECNMA 203) 40 2.00 Hr. 10 30 Min. 50 2.30 Hr.

Course 2.4 Development Economics II (ECNMA204) 40 2.00 Hr. 10 30 Min. 50 2.30 Hr.

Course 2.5 Econometrics (ECNMA205) 40 2.00 Hr 10 30 Min. 50 2.30 Hr. Total 250

III

Course 3.1 Pure Theory Of International Trade (ECNMA301) 40 2.00 Hr. 10 30 Min. 50 2.30 Hr.

Course 3.2 Environment And Resource Economics (ECNMA 302) 40 2.00 Hr. 10 30 Min. 50 2.30 Hr.

Course 3.3 Economics Of Social Sector (ECNMA303) 40 2.00 Hr. 10 30 Min. 50 2.30 Hr.

Course 3.4 Economics Of Finance and Indian financial System (ECNMA 304) 40 2.00 Hr. 10 30 Min. 50 2.30 Hr.

Course 3.5 Public Economics (ECNMA 305) 40 2.00 Hr. 10 30 Min. 50 2.30 Hr.

Total 250

IV

Course 4.1 Indian Economics (ECNMA 401) 40 2.00 Hr. 10 30 Min. 50 2.30 Hr.

Elective Course 4.2.A / 4.2. B/ 4.2.C 40 2.00 Hr. 10 30 Min 50 2.30 Hr

Course 4.2A Econometrics and Statistics-I(ECNMA402.A)

Course 4.2B International Trade and Finance-I (ECNMA402.B)

Course 4.2C Economics of Agriculture and Rural Development-I(ECNMA402.C)

Elective Course 4.3A / 4.3 B / 4.3 C 40 2.00 Hr. 10 30 Min. 50 2.30 Hr.

Course 4.3A Econometrics and Statistics-II(ECNMA403.A)

Course 4.3B International Trade and Finance-II(ECNMA403.B)

Course 4.3C Economics of Agriculture and Rural Development -II(ECNMA403.C)


Course 4.4A Econometrics and Statistics-III(ECNMA404.A)-Course

Course 4.4.B International Trade and Finance-III(ECNMA404.B)

Course 4.4C Economics of Agriculture and Rural Development -III(ECNMA404.C)


Course 4.5A Econometrics and Statistics-IV(ECNMA405.A)

Course 4.5.B International Trade and Finance-IV(ECNMA405.B)

Course 4.5C Economics of Agriculture and Rural Development -IV(ECNMA405.C)

Total 250

Grand Total 1000

Abbreviations: A – Econometrics and Statistics B – International Trade and Finance C – Economics of Agriculture and Rural Development

Detailed Syllabus

The Department of Economics, University of Gour Banga, in view of the changing needs of time and situation, has decided to modify and update the Examination Structure and Syllabus at the Post-Graduate level. The required modification aims to satisfy the needs of the students intending to appear in NET Examination and also those preparing for jobs in Academic and Corporate fields in a competitive world. The salient features of the proposed changes are as follows.

We now propose to have a Semester system of Studies, in lieu of the present Annual Two-Part system.

There shall be 4 semesters of 250 marks each, totaling to 1000 marks.

In all there shall be 16 Compulsory courses of 50 marks each and 3 special courses of 200 marks each(out of

three special courses students will have to select one special course) .Each 200 marks special course consists

of four sub course of 50 marks each.[Note : The term “paper’ is replaced by the term “course’ under

semester system].

The Structure of the syllabus will be as follows:

First Semester: 5 Compulsory courses of 50 marks each; Second Semester: 5 Compulsory courses of 50 marks each Third Semester: 5 Compulsory courses of 50 marks each Fourth Semester: 1 Compulsory course of 50 marks and 1 special course of 200 marks (out of 3 special

courses). Each special course is again subdivided into 4 sub-courses of 50 marks each.

For each course in each semester 40 marks is for examinations (duration: 2hours) and 10 marks is for internal

assessment, except for courses 4.5.A, 4.5.B and 4.5.C under semester IV. The above-mentioned courses are project

works.

The syllabus of the compulsory courses are in line with the UGC model curriculum with minor changes to suit present circumstances and keeping in mind the current Under-Graduate (Honours) syllabus in Economics of our University and also of other Universities of the state of West Bengal.In view of the National Academic Calendar and the general practice of allowing students to repeat units in which they have not done well, the schedule of the semesters can be as follows(See regulations for details)

Semester

Broad Duration Effective No of weeks

I July-December 14 weeks II January-June 14 weeks III July-December 14 weeks IV January-June 14 weeks

SYNOPSIS OF THE SYLLABUS

Semester Courses Special Courses

I

Microeconomics-I (ECNMA101)- Course 1.1 Macroeconomics-I (ECNMA102)-Course 1.2 Mathematical Economics (ECNMA103)-Course 1.3 Statistics (ECNMA104)-Course 1.4 Development Economics-I (ECNMA105)-Course 1.5

II

Microeconomics-II (ECNMA201)-Course 2.1 Macroeconomics-II (ECNMA202)-Course 2.2

Growth Economics(ECNMA 203)Course2.3 Development Economics II(ECNMA 204) Course 2.4

Econometrics(ECNMA205)-Course 2.5

III

Pure Theory Of International Trade (ECNMA 301)- Course 3.1

Environment And Resource Economics (ECNMA 302)- Course 3.2

Economics Of Social Sector (ECNMA 303)- Course 3.3 Economics Of Finance and Indian financial

System(ECNMA 304)- Course 3.4 Public Economics (ECNMA 305)- Course 3.5

IV

Indian Economics (ECNMA 401) Course 4.1 Econometrics and Statistics-I(ECNMA402.A)-Course 4.2.A Econometrics and Statistics-II(ECNMA403.A)-Course 4.3.A Econometrics and Statistics-III(ECNMA404.A)-Course 4.4.A Econometrics and Statistics-IV(ECNMA405.A)-Course 4.5.A International Trade and Finance-I (ECNMA402.B)-Course

4.2.B International Trade and Finance-II(ECNMA403.B)-Course

4.3.B International Trade and Finance-III(ECNMA404.B)-Course

4.4.B International Trade and Finance-IV(ECNMA405.B)-Course

4.5.B Economics of Agriculture and Rural Development-

I(ECNMA402.C)-Course 4.2.C Economics of Agriculture and Rural Development -

II(ECNMA403.C)-Course 4.3.C Economics of Agriculture and Rural Development -

III(ECNMA404.C)-Course 4.4.C Economics of Agriculture and Rural Development -

IV(ECNMA405.C)-Course 4.5.C

Any One from: Econometrics and Statistics

(ECNMA402.A, ECNMA403.A, ECNMA404.A & ECNMA405.A)

International Trade and Finance (ECNMA402.B, ECNMA403.B, ECNMA404.B & ECNMA405.B) Economics of Agriculture

and Rural Development (ECNMA402.C, ECNMA403.C, ECNMA404.C & ECNMA405.C)

SEMESTER-I

COURSE 1.1 MICROECONOMICS I(ECNMA 101)

Full Marks: 50(=40(exam) +10(internal assessment)) Lectures: 80

1. Theory of Consumer Behaviour. 1.1 Preference Relation and their Properties, Properties of the Utility Functions, Homothetic preference, Utility Maximization, Demand Functions and their Properties. 1.2 Indirect Utility Functions and Roy’s Identity (applying Envelope Theorem). 1.3 Expenditure Minimization, Hicksian Demand and Duality. 1.4 Income Effect, Substitution Effect and Slutsky Equation. 1.5 Introduction to the Theory of Revealed Preference (WARP). 1.6 Consumer’s Surplus and Analysis of Consumers’ Welfare (by Equivalent and Compensating Variation measures). 2. Theory of the Firm 2.1 Production Sets, Input Requirement Sets and Production Functions, Returns to Scale and Homogeneity. 2.3 Cost Minimization and Properties of Cost Functions, Input Demand Functions and Shephard’s Lemma. 2.4 Duality between Cost and Production Functions, Short run and Long run Cost Functions. 3. Partial Equilibrium in a Competitive Market. 3.1 Profit Maximization and Profit Functions, Input Demand Functions and Hotelling’s Lemma. 3.2 Short Run Profit Maximization: Break-even and Shut-down points, Short Run Market Equilibrium and the Supply Function. 3.3 Long Run Supply, Market Equilibrium under Perfect Competition: Short and Long Runs. 3.4 Stability of Equilibrium, Comparative Static: Exogenous Changes and Impact of Policy. 3.5 Welfare in a Perfectly Competitive Market 4. General Equilibrium and Welfare: An Introduction. 4.1 The Basic Model: Edgeworth Box Analysis of an Exchange Economy. 4.2 The General Structure-Walras’ Law. 4.3 Pareto Optimality. 4.4 Fundamental Theorems of Welfare Economics. 4.5 Theory of Second Best- Arrow’s Social Welfare Function References: 1. Hal Varian: Microeconomics Analysis, Viva Books, Indian Edition. 2. Mascollel, Whinston and Green: Microeconomic Theory, Publisher: OUP (Indian Edition). 3. Kreps: Microeconomic Theory, Princeton University Press. 4. A. Mukherjee: An Introduction to General Equilibrium Theory, OUP ( Indian Edition) 5. S.R. Chakravarty(2010): Microeconomics, Allied Publishers Pvt. Ltd.

COURSE 1.2

MACROECONOMICS I(ECNMA 102) Full Marks: 50(=40(exam) +10(internal assessment))

Lectures: 80

1. Complete Keynesian Model Aggregate demand and supply version of the Keynesian model, definition of involuntary unemployment, unemployment equilibrium, differences of Keynes with the classical ideas.

2. New Keynesian Macroeconomics Price setting under monopolistic competition, Menu cost- Time- dependent rules, staggering and the effects of money- State dependent rules and the effects of money- Labour market: efficiency wages- Financial markets and credit rationing.

3. Rational Expectations Rational expectations equilibrium approach: imperfect information, nominal money and output- Asset bubbles, multiple equilibria, sunspots and cycles.

4. Output, Inflation and Unemployment: Monetarist vs. Keynesian views, Friedman’s restatement of the Quantity Theory of Money, Short-run and long-run Philips curve, Theories of Stagflation.

Suggested Readings: 1. Ghosh, C and Ghosh A (2011) Macroeconomics 2. Mankiew, N.G.D.Romer,.(eds) (1991). New Keynesian Economics Vols I and II, Cambridge, MIT

Press 3. Barro, R.J. and Grossman, H.I. (1971) “A General Disequilibrium Model of Income and

Employment”, American Economic Review, 61, 82-93. 4. Benassy, J.P. (1986): Macroeconomics: An Introduction to the Non-Walrasian Approach, Academic

Press, New York. 5. Clower, Robert, W., "The Keynesian Counter-Revolution: A Theoretical Appraisal, in Clower, R. W.,

ed., Monetary Theory. London Penguin Books, 1969.

COURSE 1.3

MATHAMATICAL ECONOMICS (ECNMA 103) Full Marks: 50(=40(exam) +10(internal assessment))

Lectures: 80

1. Basic Concepts: Difference & Differential Equals with Application to Stability and Comparative Statics, Static Optimization

2. Implicit Theorem, Envelopment Theorem and Non-Linear Programming Problem. 3. Dynamic Optimization :Dynamic Programming and Optimal Control 4. Input-Output Analysis : Leontief Static Open Model, Leontief Static Closed Model, Hawkins-Simon Condition, Price System, Consumption Possibility Locus, Non-Substitution Theorem, Basic ideas of Leontief Dynamic Model. References:

1. Osborne, Martin J.: An Introduction to Game Theory, the MIT Press, 2003. 2. Jean Tirole, Theory of Industrial Organization, MIT Press 1988 Appendix on Game Theory. 3. K. Binmore, Fun and Games 4. A. K. Dixit, Optimisation in Economic Theory.

5. Elements of Dynamic Optimization: Alpha C. Chiang, McGraw-Hill. 6. Dorfman, Samuelson and Solow: Linear Programming and Economic Analysis, McGrow Hill Book

Company. 7. A.C. Chiang: Fundamental Methods of Mathematical Economics, McGrow Hill Book Company

COURSE 1.4

STATICTICS (ECNMA 104) Full Marks: 50(=40(exam) +10(internal assessment))

Lectures: 80 Module- 1: Sampling Theory

Types of Population and Types of Sampling. Parameter, Statistic and Its Sampling Distribution. Results Concerning Simple Random Sampling. Basic Concepts of Stratified Random Sampling, Multistage Sampling,

Systematic Sampling, Purposive Sampling, Quota Sampling, VP Sampling.

Module – 2: Normal and Derived Distribution Normal Distribution and Its Properties

Four Fundamental Distributions Derived from Normal: Standard Normal, Chi-Square, t and F Distributions.

Module – 3: Theory of Statistical Inference Idea of Statistical Inference. Point Estimation: Methods of Point Estimation (Method of Moments, Maximum-Likelihood

Method), Desirable Properties of Estimators- Small Sample Properties and Large Sample Properties.

Concepts of Interval Estimation: Confidence Interval, Confidence Limits, Confidence Coefficient, Central and Non-Central Interval.

Elements of Testing of Hypotheses: Null and Alternative Hypothesis, Simple and Composite Hypothesis, Critical Region, Type of Errors, Test, Level of Significance, power.

Exact Tests and Confidence Intervals: Problems Regarding a Univariate Normal Distribution, Comparisons of two Univariate normal distributions.

Approximate Tests and Confidence Intervals: Tests and confidence intervals for single mean, single proportion, difference of two means, and difference of two proportions.

Module – 4: ANOVA : Analysis of one-way classified data. References:

1. Goon, A. M., Gupta, M. K. and. Dasgupta, B. (2008): Fundamentals of Statistics, Vols l & 2, The World Press Pvt. Ltd., Kolkata.

2. Gupta, S.C. and Kapoor, V.K.(2002) : Fundamentals of Mathematical Statistics, Sultan Chand and Sons, New Delhi, 11

th edition.

COURSE 1.5

DEVELOPMENT ECONOMICS I(ECNMA 105) Full Marks: 50(=40(exam) +10(internal assessment))

Lectures: 80

1. Introduction 1.1 Issues involved in measurement: conceptual Issues about the relationship between growth and

development-Human development index, its alternative forms and critique. 1.2 Strategies of Development: Stages of Economic growth: Rostow-Vicious circle of poverty and the

critical minimum effort hypothesis-big push argument targeting the big push-balanced vs. unbalanced growth-Choice of Technique and Investment criteria

2 Dual economics structure, open and disguised unemployment and migration: Lewis Model- extension bu Ranis-Fei-Harris-Todaro model of Rural-urban migration and their critiques. Sectoral inter-linkage and problem of effective demand. Structural disequilibrium and inflation.

3. Underdevelopment as a low level equilibrium in a multiple equilibrium situation –low level equilibrium trap (arguments offered by Nurkse, Rosenstein-Rodan and formalized by Murphy. Shleifer & Vishny)

4. Poverty and Inequality 4.1 Poverty: Conceptual Issues-Measurement –Functional Effects

4.2 Inequality: Conceptual Issue and Measurement Issues (Kuznets` inverted-U hypothesis: testing and explanation, inequality as a constraint to growth-basics of Galore-Zeira model. References: 1. Kaushik Basu, Analytical Development Economics, The Less Developed Economy Revisited, OUP (2000). 2. Debraj Roy: Development Economics: Oxford University Press, (1999).

3. D.Ray: Development Economics. OUP. 4. A. Sen : Choice of Techniques, OUP 5. A. Sen: Development as Freedom, OUP.

SEMESTER-II

COURSE 2.1 MICROECONOMICS II(ECNMA 201)


1. Theories of Uncertainty: Expected utility function-Properties- consumer’s equilibrium under uncertainty Measures of risk aversion- Absolute and Relative Portfolio choice under uncertainty, Theory of firm under uncertainty

2. Monopoly and Monopolistic Competition 2.1 Review of Simple Monopoly Theory 2.2 Price Discrimination: First and Third Degree 2.3 Durable Goods Monopoly 2.4 Monopoly and Product Quality 2.5 Natural Monopoly 3. Oligopoly 3.1 Simultaneous Move Games – Cournot and Bertrand Equilibria, Nash Equilibrium, Dominant Strategy, Zero-sum game. 3.2 Sequential Form Games – Stackelberg Model, Capacity Choice and Entry 3.3 Repeated Oligopoly 3.4 Capacity Choice and Entry Deterrence 4. Economics of Information 4.1 Perfect Baysian Equilibrium and Oligopoly with incomplete Information 4.2 Adverse Selection and Nonlinear Pricing 4.3 Moral Hazard 4.4 Screening 4.5 The Principle –Agent Problem Readings: 1. Mascollel, Green and Whinston: Microeconomic Theory, OUP. 2. Tirole: Industrial Organization, MIT 3. Varian: Microeconomic Analysis,W. W. Norton

COURSE 2.2

MACROECONOMICS II(ECNMA 202) Full Marks: 50(=40(exam) +10(internal assessment))

Lectures: 80

1. Basic Infinite Horizon Models- Ramsey Problem: Command Economy, decentralized economy, dynamic efficiency- Government in the decentralized economy

2. Overlapping Generations Model- OLG with production: two period lives, dynamic inefficiency and altruism. Social Security models under OLG.

3. Equilibrium Macro Analysis: Equilibrium and Disequilibrium Models of Patinkin, Clower, Barro-Grossman.

4. Models of Disequlibrium Disequilibrium models of Clower, Barro-Grossman, Malinvaud and Benassy

Suggested Readings: 1. Blanchard, O.J. and Fischer, S.(1989). Lectures on Macroeconomics, Prentice Hall of India 2. Barro, R.J. and Sala-i-Martin, X(2004), Economic Growth, Prentice Hall of India 3. Solow, R. (2000), Growth Theory: An Exposition, New York, Oxford University Press 4. Romer, David (2001). Advanced Macroeconomics. N.Y.: McGraw Hill. 5. Patinkin, D.: Money, Interest and Prices, Row, Peterson and Com. 6. Barro, R.J. (1997): Macroeconomics, 5th Edition, Selected Chapters. 7. Barro, R.I. and Grossman, H.I (1971): Ä General Disequilibrium Model of Income and

Employment”, American Economic Review, March 1971, Vol. 61(1): 82-93.

COURSE 2.3

GROWTH ECONOMICS (ECNMA 203) Full Marks: 50(=40(exam) +10(internal assessment))

Lectures: 80

1. Traditional Growth Theories and Emergence of New Growth Theories Harrod-Domar Model , Kaldor Model

Solow-Swan Model: Fundamental equation of the Solow-Swan model-steady state-impacts of change in exogenous saving rate-Golden Rule of capital accumulation and dynamic inefficiency-transitional dynamics-absolute versus conditional convergence.

2. Theory of Real Business Cycles- Unpredictable shocks and their effects on output and employment, mainly in Ramsey Infinite horizon models. Fluctuations of income under two periods OLG model

3. Technolical Progress: Hicks, Harrod and Solow. 4. Modern Theory of Growth

Dissatisfaction with neoclassical theory- One sector models of endogenous growth: the AK model- Endogenous growth and human capital formation: the Lucas model- Endogenous growth and R&D- Romer model Suggested Readings:

1. Barro, R.J. and Sala – i- Martin, X. (2004) : Economic Growth, 2nd Edition, Prentice Hall of India Pvt. Ltd, Chapters 1-4, 6.

2. Domar, E. (1957) : Essays in the Theory of Growth, Oxford University Press, London. 3. Harrod, R.F. (1948) : Towards a Dynamic Economics, Macmillan, London. 4. Romer, D. (2001) : Advanced Macroeconomics, McGraw-Hill International Edition, Chapters 1and 2. 5. Solow,R.M. (2000) : Growth Theory :An Exposition, 2nd Edition, Oxford University Press, USA, Chapters 7-

9. 6. Domar, E.D. (1946) : “ Capital Expansion, Rate of Growth and Employment”, Econometrica, April. 7. Kaldor, N. (1956) : “Alternative Theories of Distribution”, Review of Economic Studies, Vol. XXIII. 8. Kaldor, N. (1957) : “ A Model of Economic Growth”, Economic Journal. 9. Lucas, R.E Jr. (1988) : “On the Mechanics of Economic Development”, Journal of Monetary Economics,

22(July), 3-42. 10. Romer, P.M. (1990): “Endogenous Technological Change”, The Journal of Political Economy, Vol. 98, No. 5,

Part 2: The Problem of Development: A conference of the Institute for the study of Free Enterprise Systems ( Oct.), S71-S102, Chicago Journals.

11. Blanchard, O.J. and Fischer, S.(1989). Lectures on Macroeconomics, Prentice Hall of India 12. Barro, R.J. and Sala-i-Martin, X(2004), Economic Growth, Prentice Hall of India 13. Solow, R. (2000), Growth Theory: An Exposition, New York, Oxford University Press 14. Romer, David (1996). Advanced Macroeconomics. N.Y.: McGraw Hill.

PAPER 2.4

DEVELOPMENT ECONOMICS II(ECNMA 204) Full Marks: 50(=40(exam) +10(internal assessment))

Lectures: 80

Module-I : Dualism and Sectoral Inter-linkage

Lewis, Fei-Ranis Model, Model of Migration (Harris-Todaro Model), Labour Turnover Model, Sectoral inter-linkage and problem of effective demand, Structural disequilibrium and inflation

Module-II: Interlocking of Rural Markets: Concept and emergence of Interlocking; Triadic interactions in rural markets; Equilibrium and comparative statics in interlinked market

Module-III: Trade and Development Colonial Pattern of trade and De-industrialisation - division of world between center and

periphery; export enclaves Neo-Ricardian (Emmanuel-Bacha) Structural Models (Taylor)

Module-IV: Globalization and Development

Unit 1: Drivers of globalization; Trade and growth, Capital flow and Immiserization, Trade and Wage inequality

Unit 2: The Multilateral Organization: IMF and World Bank, WTO , Portfolio Foreign Investment, Patents, and TRIPS, TRIMS

Reference:

1. Agenor, P.R. and Peter.J., Montiel: ‘Development Macroeconomics’, Princeton University Press, Chapter 1, 2 2. Amartya Sen: Development as freedom. Chapter 2, Oxford University Press 3. Basu, K.: ‘Agrarian Questions’, Introduction, Oxford University Press 4. Basu, K.: ‘Analytical Development Economics: The Less Developed Economy Revisited’, Oxford University

Press, Chapter 2, 7, 8, 9 and 14 5. Christopher Bliss (1989): ‘Trade and Development’, Handbook of Development Economics, Volume 2,

Chapter 23, Pages 1187–1240. 6. Marjit, S. and R. Acharyya,: ‘International trade, wage inequality and the developing economy’, Physica-

Verlag. 7. Rakshit, M. (ed.): ‘Studies in the Macroeconomics of Developing Countries’, Introduction, Oxford University

Press 8. Ray, D.: ‘Development Economics’, Oxford University Press, Chapter 5

9. Sakiko Fukuda-Parr, Kumar A. K. Shiva, A.K. Shiva Kumar (ed.): ‘Readings in Human Development’, Oxford University Press.

10. Sikdar, S.: ‘Contemporary issues in Globalization’, Oxford University Press. (Chapters 3, 4 & 7).

COURSE 2.5

ECONOMETRICS (ECNMA 205) Full Marks: 50(=40(exam) +10(internal assessment))

Lectures: 80 1. The Scope and Methodology of Econometrics. 1.1 Steps in Econometric Analysis. 1.2 Structure of Economic Data. 1.3 Basic Concepts of Estimation and Desirable Properties of Estimators. 2. The Simple Linear Regression Model (SLRM) 2.1 Definition of SLRM - Ordinary Least-squares (OLS) Estimation of SLRM. 2.2 Properties of OLS Estimators. 2.2 Statistical Inference in SLRM - Measuring Goodness of Fit. 2.3 Analysis of Variance on OLS Regression. 2.4 Interpretation of Regression Results. 3. The Multiple Linear Regression Model. 3.1 OLS Estimation of MLRM. 3.2 Properties of Multiple Regression Coefficients. 3.3 Measuring Goodness of Fit. 3.4 Various Problems of Inference in MLRM. 3.5 Interpretation of Regression Results. 4. Dummy Variables. 4.1 Nature and use of dummy variables. 4.2 Interactions involving dummy variables. 4.3 Testing structural stability of regression model.5. Multicollinearity. 5.1 Definition of Multicollinearity; Consequences of Multicollinearity; 5.2 Tests for Multicollinearity. 5.3 Remedial Measures. 5.4 Illustrative Examples. 6. Heteroscedasticity. 6.1 Definition of Heteroscedasticity. 6.2 Consequences of Heteroscedasticity. 6.3 Detection of Heteroscedasticity. 6.4 Remedial Measures. 6.5 Illustrative Examples. 7. Autocorrelation. 7.1 Definition of Autocorrelation - Specification of Autocorrelation Relationship. 7.2 Consequences of Autocorrelation. 7.3 Various Tests for Autocorrelation. 7.4 Remedial Measures. 7.5 Illustrative Examples. Readings: 1. Jeffrey M Wooldridge: Introductory Econometrics A Modern Approach, South Western Cengage Learning 2008. 2. G S Maddala: Econometrics, McGraw Hill International Edition. 3. Christopher Dougherty: Introduction to Econometrics (3rd Edition) Oxford University Press. 4. D N Gujarati: Basic Econometrics (4th Edition) McGraw Hill International Edition. 5. William H Green: Econometric Analysis (5

th Edition) Pearson Education, Delhi

SEMESTER-III

COURSE 3.1 PURE THEORY OF INTERNATIONAL TRADE (ECNMA 301)


Module-I: Comparative and Absolute Advantage

Adam Smith’s theory of absolute advantage. Ricardian theory of comparative advantage, 2X2 models and extensions Price definition and physical definitions, relationships between commodity price ratio and

factor price ratio. The meaning of factor-intensity reversal. Factor-intensity reversal and validity of Heckscher-

Ohlin Theorem under price and physical definitions. The concept of cone of diversification. Incomplete specialization, factor price equalization,

factor-intensity reversal and the cone of diversification. Module-II: Jones (1965) Heckscher-Ohlin-Samuelson type model

Jones (1965) general equilibrium trade model for a small open economy. The role of the decomposability property. Equivalence of Factor-intensity conditions in physical and value terms. The Rybczynski Theorem. The Stolper-Samuelson Theorem-the price magnification effects. Effects on welfare. Policy implications of Jones (1965) model.

Module-III: Jones (1971) Specific-factor model The basic structure-indecomposable nature of the model-implications of the indecomposable structure. Invalidity of Jones (1971) model in the presence of fixed coefficient technology. Impact of terms of trade on income earnings (factor earnings)-idea about inequality in earnings-modifications of the price magnification effects-role of elasticity of marginal productivity of labour elasticity of substitution. Policy implications of the model.

Module-IV: Theory of Tariffs, Quotas and Non-Tariff Barriers Tariff and quota-partial equilibrium effects, general equilibrium effects, optimum tariff, Metzler’s paradox. Monopoly effects of tariffs and quotas. Tariff vs quota. Tariff and welfare. Different Non-Tariff Barriers

References

1. Caves R, Frankel J.A. and Jones R.W(1990): World Trade and Payments, Boston, Little, Brown and Co.

2. Sodersten, B. and Reed G.(1994) : International Economics , Macmillan, London, 3rd edition 3. Jones R.W(1979): International Trade: Essays in Theory, Amsterdam, North Holland 4. Gandolfo, G. (2006): International Trade Theory and Policy, Springer International Edition. 5. Marjit, S. (2008): International Trade and Economic Development: Essays in Theory and

Policy,Oxford University Press, New Delhi. 6. Jones, R.W. (1965): “The Structure of Simple General Equilibrium Models”, Journal of Political

Economy, 73: 551-572.

PAPER 3.2 ENVIRONMENT AND RESOURCE ECONOMICS (ECNMA 302)


Module-I: Environment-Economy Relationship Environment-Economy relationship

Material Balance Approach Environmental Kuznets Curve

Module-II: Sustainable Development and Common Property Resources Concept of sustainable development Green accounting Sustainable management of common property resources

Module-III: Environmental Pollution and Control Measures Environmental pollution as a negative externality (Pigou, Coase) Optimal pollution Different pollution control measures

Module-IV: Economics of Resources and its Valuation Optimal extraction of resources

Backstop-exploration and technical progress Models of fishery, forestry, mining

Basic issues of environmental valuation Revealed preference approach Stated preference approach

References:

1. Bhattacharyya, R. N. (2001): Environmental Economics: An Indian Perspective, Oxford University Press. 2. Conrad, J.M. (1999): Resource Economics, Cambridge University Press. 3. Conrad, J.M. and Clark, C. (1987): Natural resource Economics: Notes and Problems, Cambridge

University Press. 4. Fisher, A. (1981): Resource and Environmental Economics, Cambridge University Press. 5. Hanley, N., Shrogen, J. F. and White, B. (2001) : Introduction to Environmental Economics, Oxford

University Press. 6. Kolstad, C.D. (2003) : Environmental Economics, Oxford University Press. 7. Pearce, D.W. and Turner, R.K. (1990): Economics of Natural Resources and the Environment, Harvester

Wheatsheaf. 8. Perman, R.; Ma, Y; McGilvary, J and Common, M (1999) : Natural Resources and Environmental

Economics, 2nd Edition, Prentice Hall.

COURSE 3.3 ECONOMICS OF SOCIAL SECTOR (ECNMA 303) Full Marks: 50(=40(exam) +10(internal assessment))

Lectures: 80 Module-I: Development and Social Sector

Concepts of social security: Primitive and Protective approaches; concept of Decent Labour (ILO)

Different Approaches to Development: Human Resource Development (HRDA), PQLI, Basic Needs, Human development (HDA), Entitlement and Capability.

Module-II: Vulnerability and Safety Nets

Economic and Human Poverty, Unemployment and Deprivation: Measures and Indices; Informal labour, migrant workforce, marginalization with respect to gender, caste, tribe, region

Economic Reforms, effects of flexibility and globalisation on the labour market. Module-III: Food Security

Food production, availability and access; Nutritional status of rural and urban households Public distribution system, W T O and food security.

Module-IV: Poverty, Population Growth and Development

Population growth rate and sex ratio, life expectancy, age structure, infant and child mortality; Fertility and Mortality rates;

Population policy: from control to welfare. Demographic data base in India, national family health survey, household survey.

Reproductive health, social impact and regulations. Module-V: Education and Development

Education as human capital; Inclusion and Exclusion from education. Demands and supply constraints: private and social; expenditure on education, private cost, social

cost; Educational Policies, resource mobilization, constraints and reforms.

Module-VI: Health Sector

Health sector: performance and possibilities — interconnection of poverty, malnutrition, disease burden; Health Finance; Role of Institutions: public and private health sectors, PPP model; Evaluation of health policy and reforms;

Health Insurance and Market Imperfections: Managed care System, Third Party Administrator, Community Based Health Insurance.

Module-VII: Gender and Development

Women as a constituency in development, GDI and GEM ; Work-force participation, visibility of work, paid and unpaid labour, skill and technology;

Access to resources, land rights, credit, micro-finance and self-help groups. Women in agriculture, industry and informal sector.

References:

1. Parikh, K.S. and Radhakrishna, R.(2002): India Development Report, Oxford Univ. Press. 2. Prabhu, K.S. (2001): A Study of Two Indian States, Economic Reforms and Social Sector Development,

Sage Publication. 3. Prabhu, K.S. and Chatterjee, S (1993): Social Sector Expenditures and Human Development: A Study of

Indian States, Department of Economic Analysis and Policy, RBI Dev. 4. I. L. O.: Introduction to Social Security (1984), Decent Labour, (2003) Geneva. 5. Jhabvala, R (ed.) (2001): The Unorganised Sector, Sage. 6. Dreze, J. and A.K. Sen (1989): Hunger and Public Action, Oxford Clarendon Press. 7. Visaria,L: Mortality Trends and Health Transition,. 8. Krishnaraj, M (ed.): Gender Population and Development, Oxford University Press,. 9. Kabeer, N.(1994): Reversed Realities: Gender Hierarchies in Development Thought, Verso. 10. The Pratichi Education Report, the Probe Report on Education in India 11. India Health Report, Oxford. 12. World Bank Country Study (1991): Gender and Poverty in India.

COURSE 3.4 ECONMICS OF FINANCE AND INDIAN FINANCIAL SYSTEM (ECNMA 304)


1. Decision –Making under Uncertainty: Decision Making under Uncertainty :an Alternative Representation Decision Making and Expected Utility Stochastic Dominance and Attitude towards Risk Mean- Variance Analysis: A Special Case of the Expected Utility Approach 2. Symmetric Information: Markets Portfolio Choice The Mean- Variance Approach and Capital Asset-Pricing Arbitrage and Option Pricing : Arbitrage, Option Pricing. 3. Derivatives Market in India Products, Participants and functions Derivatives Market in India – Trading Mechanisms, Market Outcome, Clearing Mechanism,

Risk Management, Settlement Mechanism, Policy Debates. 4. Non Bank Operations in India Mutual Funds – Features, Types, Valuation of Schemes, Structure and Size, Regulatory Framework, Market

Outcome, Policy Developments and Policy Debates. Insurance Companies – Features, Structure, Growth and Regulatory Activities; LICI, GICI. Pension Fund operations Merchant Banks Hire-Purchase Finance Lease Finance Housing Finance Venture Capital Funds

References Eichberger and Harper (1997),:Financial Economics, Oxford University Press David Blake (2004),:Financial Market Analysis,2nd Edition, John Wiley And Sons Ltd. Stephen F. Leroy and Werner (2001),:Principles of Financial Economics, Cambridge University Press. Hart, O. ( 1995) : Firms, Contracts and Financial Structure, Oxford: Clarendon Press Bebczuk, R. N. (2003):Asymmetric Information in Financial Market Roy E. Bailey,(2005):The Economics of Financial Markets, Cambridge University Press. Yvan Lengwiler (2004):Microfoundations of Financial Economics, Princeton University Press Madura J. (2001):Financial Markets and Institutions, 5th Edition, South-Western College Mier K. : Financial Markets and Institutions, Tata McGraw- Hill Publishing Company Ltd. Mukherjee, Ghose, Roy (2005): Indian Financial System and Financial Operations, 2nd Edition, Dey Book Concern. Khan, M.Y. (2005): Indian Financial System , Tata McGraw- Hill Publishing Company Ltd. Bhole, L.M.(2005): Financial Institutions and Markets, 4th Edition, Tata McGraw- Hill Publishing Company Ltd. Hull, J.C.(2005) : Fundamentals of Futures and Other Derivatives, Englewood Cliffs, NJ: Prentice Hall,5th edn. NCFM(2010) :FIMMDA- NSE Debt Market (Basic) Module Work Book

COURSE 3.5 PUBLIC ECONOMICS (ECNMA 305)


1. Theory of Government Intervention Role of Government in organized society Changing Perspective – Government in a Mixed Economy Private Goods, Public Goods and Merit Goods-Theory of Public Goods

2. Externality and Public Choice Consumption, Production and Technological Externalities Direct Negotiation versus governmental intervention Negative Externalities and Spillover Effects Public Pricing and Environmental Policy Use of Pigovian Taxes and Subsidies Coase Theorem Public Choice-Majority Voting, Vote Trading and Cyclical Majority Problem The Political Business Cycle Principal Agent Problem

3. Taxation and Public Expenditure Tax Equity and Efficiency Excess Burden of Taxes Optimal Theory of Taxation Causes of the Growth of Public Expenditure Micro Determinants of Public Expenditure

4. Fiscal Federalism The Division of Responsibilities Principles of Fiscal Federalism-Club Theory and Local Public Goods Tiebout Hypothesis Issues in Indian Fiscal Federalism

5. Mechanics of Budget, Fiscal Policy and Debt Management Budget Terms and Budget Concepts, Importance, Objectives and Modern Classification of budget: Types of Budget, Different concepts of Budget Deficit, Budgetary Trend and Policy in India Meaning, Significance and Objectives of Fiscal Policy Fiscal Policy for Stabilization Limits of Fiscal Policy Fiscal Policy for Developing Countries Management of Public Debt and Ricardian Equivalence

References:

Feldstein, Martin (2001): The Transformation of Public economics Research: 1970-2000. NBER website.

Laffont, Jean-Jacques (1989): Fundamentals of Public Economics, Boston, MIT. Rosen, HarveyS. and Ted Gayer (2007): Public Finance,(8/e), McGraw-Hill Irwin. Chapt 4 &

5. Due, John F. and Ann F. Friedlander (PB Indian edition 1997): Government Finance:

Economics of the Public Sector. AITBS Publishers & Distributors (Regd), Delhi. Chap 3, pp. 25-62 & 4, pp. 63-84.

Myles, Gareth (1999): Public Economics, Cambridge. Chaps 1 and 2 Basu, Kaushik (1991):”Markets, Power and Social Norms” in Economic Graffiti: Essays for

Everyone, Bombay, Oxford. Wittman, Donald (1989):”Why Democracies Produce Efficient Results “in Journal of

Political Economy, 97 (6). Brown, C.V. and P.M. Jackson (1982): Public Sector Economies, Martin Robertson, Oxford,

Chap 2 & 4. [4/e, Blackwell, 1996] Coase, R.H. (1960): “The Problem of social costs”, Journal of Law and Economics, vol. 3,

October, pp. 1-44. Aronson, J. Richard (1985): Public Finance, McGraw-Hill Book Company. Chap 6 & 10 Arrow, K. (1963): Social Choice and Individual Values (2/e): New Haven: Yale Cullis, John and Philip Jones (1998, 2/e): Public Finance and Public Choice, Oxford

University Press. Chaps 1,4,11 and 16. Mueller, D.C. (1979): Public Choice, Cambridge University Press, Cambridge. Ordeshook, Peter (1986): Game Theory and Political Theory, Cambridge, Chap 2, section 1. Rawls, John (2001) : Justice as Fairness: A Restatement, Harvard, Cambridge Saari, Donald (1998): “Connecting and Resolving Sen’s and Arrow’s Theorems”. Social

Choice and Welfare, 15, 239-261. Sen, Amartya (1999): On the Possibility of Social Choice”, American Economic Review,

Vol. 89 (3), 349-378. Shepsle, Kenneth and Mark Bonscheck (1997): Analyzing Politics: rationality, Behaviour and

Institutions, Norton, New York. Chap 4. Stiglitz (1986): Economics of Public Sector, Norton, New York. Jha, Raghabendra (1987): Modern Public Economics, Routledge, London. Musgrave, Richard A. And Peggy B. Musgrave (1989): Public Finance in Theory and

Practice, McGraw-Hill Book Company. Tanzi, Vito and Ludger Schuknecht (2000): Public Spending in the 20th Century: A Global

Perspective, Cambridge University Press. Chap I, pp. 3-22. Oates, Wallace (1972): Fiscal Federalism, Harcourt Brace and Jovanovich, New York.

SEMESTER-IV

COURSE 4.1 INDIAN ECONOMICS (ECNMA 401)


Module-I: Economic reforms & Performance of Indian economy-Global economic crisis and

Indian economy Module-II: Trends and Patterns of Employment in India, Trends and Patterns of poverty in India

Module-III: External Sector Reforms

Trends and patterns of merchandise exports and imports of India in the post liberalization era FDI in the post-1991 period Capital account convertibility WTO and Indian economy

Module-IV: Agricultural Growth and Performance

Changes in land use, cropping pattern and role of MNCs Agriculture trade in post-reform period Technology, infrastructure, role of the state

Module-V: Industrial Sector in India and Economic Liberalization

Growth and small scale industries with reference to post-reform period: Trends, issues and concerns

Infrastructure Development in India

Reference:

1. Ahluwalia, I.J and Little I.M.D. (eds.) (1998): India’s Economic Reforms and Development, Oxford University Press, New Delhi.

2. Basu, K.(ed) (2006) : India’s Emerging Economy : Performance and Prospects in the 1990s and Beyond, 3rd Edition, Oxford University Press, New Delhi.

3. Joshi, V. and Little, I.M.D. (1999): India: Macro Economics and Political Economy, 1964-1991, Oxford University Press, New Delhi.

4. Kapila, U. (2007b): The Indian Economy since Independence, 16Edition,, Academic Foundation. 5. Sikdar, S.(2006) : Contemporary Issues in Globalization : An Introduction to Theory and Policy in India,

2Edition, Oxford University Press, New Delhi.

SPECIAL COURSE 4.2.A ECONOMETRICS AND STATISTICS I (ECNMA 402.A)


1.General Linear Regression Model (GLRM)

K-variable GLRM-Assumptions, Estimation, BLUE Properties, Inference Analysis, Applications. Consequences of Specification Error Sources of Lagged variables. Consequences of applying direct OLS in Distributed Lag Models.

Koyck Transformation. Geometric Lag models. Estimation and stability of a Dynamic equation. Forecasting using dynamic models.

2. Qualitative Dependent Variable Models

The Linear probability Model(LPM) The Logit Model The Probit Model The Tobit Model Theory and Applications

3. Panel Data Regression Model

Panel Data-meaning and advantages. Types of Panel Data Models- The Constant Coefficient Model, The Fixed Effects Model (FEM) or

Least Squares Dummy Variable (LSDV) Model, The Random Effects Model. Estimation Hausman Specification Test

4. Time Series Econometrics

Importance and significance of Time Series Econometrics Univariate Time Series Modelling: AR,MA,ARMA, ARIMA Yule-Walker Equations, ACF,PACF and Correlogram Analysis Random Walk Model, TSP and DSP Integrated Series Unit Root, Dickey-Fuller Test and Augmented Dickey-Fuller Test. Cointegration-the concept, need and definition.

References

Johnston, J. (1977 and 1984): Econometric Methods, 2nd and 3rd Editions, McGraw Hill. Johnston,J. and Dinardo,J. (1997) : Econometric Methods,4th Edition, McGraw Hill International Edition Hamilton, J. D. (1994): Time Series Analysis, Princeton University Press. Granger, C.W.J. and Newbold, P.(1977) : Forecasting Economic Time Series, 2nd Edition, Academic Press. Greene, W.H. (1997) : Econometric Analysis, 3rd Edition, Prentice Hall. Gujarati, D.N. (1995): Basic Econometrics 4th Edition, McGraw Hill, New Delhi Enders, W.(2004): Applied Econometric Time Series, Wiley. Maddala, G.S. (1997): Econometrics, McGraw Hill, New York.

SPECIAL COURSE 4.3.A ECONOMETRICS AND STATISTICS II(ECNMA 403.A)


1. Forms of Simultaneous Equation System Structural, Reduced and Final Forms of Simultaneous Equation system with examples.

2. Identification Problem The concept of identification with economic examples Observationally equivalent structure Order and Rank Conditions

3. Estimation Problem Consequences of estimating simultaneous equation system by OLS method Unbiasedness and consistency of estimator-use of the concept of plim Recursive system ILS estimator with properties, IV estimator with properties, 2SLS estimator with properties,LVR

estimator with properties,3SLS estimator with properties

(Applied Econometrics) 1. Demand Analysis Econometric problem in estimating demand function Problems related to pooling of time series and cross section data Use of cross section data-Engel curve

2. Production Function Estimation Problems in estimating Cobb-Douglas production function Estimation of CD and CES production function

3. Inequality Measures Lorenz curve and Gini coefficient

References

Johnston, J. (1977 and 1984): Econometric Methods, 2nd and 3rd Editions, McGraw Hill. Johnston,J. and Dinardo,J. (1997) : Econometric Methods,4th Edition, McGraw Hill International Edition Gujarati, D.N. (1995): Basic Econometrics 4th Edition, McGraw Hill, New Delhi Maddala, G.S. (1997): Econometrics, McGraw Hill, New York. Desai, M.(1976).: Applied Econometrics, P. Allen. Klein, L.R.(1975) : A Text Book of Econometrics: Prentice Hall, New Delhi. Sen, A. On Economic Inequality Nagar, A. L. and R. K. Das (1993): Basic Statistics, Oxford University Press, New Delhi. Nachane, D.M. (2006): Econometrics: Theoretical Foundations and Empirical Perspectives, Oxford University Press. Intrilligator, M.D. (1978): Econometric Methods, Techniques and Applications, Prentice Hall, New Jersey. Krishna,K.L.(ed) (1999): Econometric Applications in India, Oxford University Paerbacks, Oxford University Press, New Delhi.

SPECIAL COURSE 4.4.A ECONOMETRICS AND STATISTICS III(ECNMA 404.A)


1. Probability Theory Definitions of probability: classical, frequency and axiomatic definitions with limitations. Theorems of total probability. Generalized theorem of total probability (Poincare’s Theorem) Boole’s inequality and Bonferroni’s inequality: related corollaries Conditional probability and statistical independence of two or more events. Pairwise and mutual independence of events. Theorems on compound probability and independence of events : probability of occurrence of exactly m

and at least m of n events. Matching problem Exercises for calculating the probabilities of events when the sample space is finite, exercises based on

theorems of total probability and compound/conditional probability Baye’s Theorem: statement , proof and applications

2. Random Variable , Probability Functions and Expectations Definition of random variables-discrete and continuous Probability mass function and probability density function Distribution function Mathematical expectation-expectation of random variables and moments-theorems on mathematical

expectation Moment generating function, cumulants, characteristic functions

3. Convergence in probability : Law of Large Numbers Chebycheff’s Lemma and Chebycheff’s inequality Weak Law of Large Numbers Bernoulli’s Law of Large Numbers Central Limit Theorem

4. Discrete and Continuous Theoretical Distributions Binomial, Poisson, Hypergeometric and Negative Binomial Distrbutions.

Mean, variance, skewness, kurtosis. Simple problems and applications of these distributions in different fields.

Rectangular, Normal and Lognormal . Mean, variance, skewness, kurtosis. Simple problems and applications of these distributions in different fields.

References Croxton, Crowden and Klein (1988): Applied General Statistics, Pitman. Goon, A.M., Gupta, M. and Dasgupta, B. (2005): Fundamentals of Statistics Vol. I & II, World Press, Kolkata. Nagar, A.L. and R.K. Das (1997): Basic Statistics (2e), OUP, ND. Rao, C.R. (2001): Linear Statistical Inference and Applications, Wiley and Sons. Feller, W. (1968): An Introduction to Probability Theory and Its Applications, Vol. I (3e),Wiley. Hoel, P.G. (1954): Introduction to Mathematical Statistics (5e), Wiley and Sons. Hogg and Craig (1970): Introduction to Mathematical Statistics (3e), Macmillan, NY. Gupta, S.C. and Kapoor ,V.K. (2002) : Fundamentals of Mathematical Statistics, Sultan Chand and Sons, New Delhi, 11th edition. Mood, A.M., Graybill, F.A. and Boes (1974): Introduction to the Theory of Statistics, McGraw Hill, Tokyo. Hoel, Port and Stone (1993): Introduction to Probability Theory, Universal Book Stall, New Delhi.

SPECIAL COURSE 4.5.A ECONOMETRICES AND STATISTICS IV(ECNMA 405.A)

Full Marks: 50(=Project work(30)+ Viva voce(20))

Project Work

Students will have to prepare a project report using computer software related to econometric and

statistical packages by using primary and secondary data. The project report will be evaluated by the

departmental teachers and 30 marks will be allotted for that. For viva-voce and/or presentation of the project

report 20 marks will be allotted. During the viva-voce and/or presentation one external will be present along

with the departmental teachers for evaluation. No supervisor will be allotted for each student. Students

will be given a list of topics and the concerned teachers will give some general guidelines. Students

will have to prepare the project reports on their own. There should be some demonstration about the

use of computer software in the computer laboratory.

SPECIAL COURSE 4.2.B

INTERNATIONAL TRADE AND FINANCE-I (ECNMA 402.B)

Full Marks: 50[=40(exam)+10(internal assessment)]

(48 Lectures)

1. Ricardian Trade Theory Revision of Ricardian Theory of Comparative Advantage. Generalization of Ricardian Theory Ricardian Trade Theory in case of continuum of goods

2. Neo-Classical Orthodox Trade Theory Revision of general equilibrium trade models (a) Jones (1965) model along with its implications.

(b) Specific factor model of Jones (1971). (c) Hybrid models of Jones (1965) and Jones (1971) along with its applications for developing countries.

(d) General equilibrium trade models with labour market distortions

3. Trade Policy

Tariff-partial and general equilibrium effects-optimum tariff-tariffs and reciprocal demand curves-the Metzler and Lerner cases.

Quotas and other non-tariff barriers: quotas, export duties, international cartels, other impediments to free trade.

Intermediate goods and effective rate of protection. Distortions in domestic goods markets Distortions in domestic factor markets Preferential Trading Cooperation: the various degrees of cooperation, the effects of a Customs Union The “New” Protectionism Voluntary export restraints and import expansion Subsidies Administered and Contingent Protection and Fair Trade: dumping and antidumping, countervailing duty,

safeguard actions

4. The Precursors to New Trade Theories Technology Gaps The Product Cycle Income Effects: Linder’s Theory , Baker’s Variety Hypothesis Intra-Industry Trade: Perfectly Homogeneous Goods and Differentiated Products

References

Books Batra R.N.(1972): Studies in the Pure Theory of International Trade, Macmillan Caves R, Frankel J.A. and Jones R.W.(1990).: World Trade and Payments, Boston, Little, Brown and Co. Chaudhuri, S. and Mukhopadhyay, U (2009): Revisiting the Informal Sector: A General Equilibrium Approach, New York, Springer. Gandolfo, G. (2006) : International Trade Theory and Policy, Springer International Edition. Helpman, P. and Krugman, P.(1985) : Market Structure and Foreign Trade, Cambridge, Massachusetts, MIT Press Helpman, P. and Krugman, P.(1989) : Trade Policy and Market Structure, Cambridge, Massachusetts, MIT Press Jones R.W. (1979): International Trade: Essays in Theory, Amsterdam, North Holland Jones, R.W. (2000): Globalization and the Theory of Input Trade, The MIT Press. Krugman, P.R. (1990): Rethinking International Trade, Cambridge, Massachusetts, MIT Press. Krugman, P.R. (1991): Geography and Trade, Cambridge, Massachusetts, MIT Press. Krugman, P. R. and Obstfeld, M. (1991):International Economics : Theory and Policy, 2nd Edn, New York, Harper-Collins. Marjit, S. (2008): International Trade and Economic Development: Essays in Theory and Policy, Oxford University Press, New Delhi. Articles Antras, P. (2003): “Firm Contracts and Trade Structure”, Quarterly Journal of Economics: 1375-1418. Brander, J.A.( 1981) : “Intra-industry Trade in Identical Commodities”, Journal of International Economics,11:1-14. Bhagwati, J.N. (1982) : “Directly Unproductive, Profit Seeking (DUP) Activities”, Journal of Political Economy,90 :998-1002. Reprinted in Balsubramanayam (ed), Essays in Honour of J.N. Bhagwati :Writings on International Economics, Oxford University Press. Brander, J. and Krugman, ,P. 1983) : “A Reciprocal Dumping Model of International Trade”, Journal of International Economics,15:313-321. Brander, J. and Spencer, B.J.(1985):”Export Subsidies and International Market Share Rivalry”, Journal of International Economics, 18: 83-100. Corden, W.M. and Findlay, R(1975) : “Urban Unemployment, Intersectoral Capital Mobility and Development Policy”, Economica, 29: 59- 78. Dixit, A.K. and Stiglitz, J. (1977): “Monopolistic Competition and Optimum Product Diversity”, American Economic Review, 67: 297-308. Dornbusch, R., Fischer, S. and Samuelson, P.A. (1977): “Comparative Advantage , Trade and Payments in a Ricardian Model with Continuum of Goods”, American Economic Review,67(5) : 823-839. Gabszewicz, J.J., Shaked, A., Sutton, J. and Thisse, J.F. (1981): “International Trade in Differentiated Products”, International Economic Review, 22: 527-534. Harris J.R. and Todaro, M.P. (1970) : “ Migration, Unemployment and Development : A Two-Sector Analysis”, American Economic Review, 60: 126-142. Helpman, E.(1990) : “Monopolistic Competition in Trade Theory”, Special Paper in International Economics, Princeton University, International Finance Section. Jones, R.W. (1965): “The Structure of Simple General Equilibrium Models”, Journal of Political Economy, 73: 551-572. Jones, R.W. (1971):” A Three Factor Model in Theory, Trade and History” in Bhagwati, Jones, Mundell and Vanek (eds) Trade, Balance of Payments and Growth , North Holland, Chap1 : 3-21. Krugman, P.R. (1979): “Increasing Returns, Monopolistic Competition and International Trade”, Journal of International Economics, 9: 469-479. Krugman, P.R. (1980): “Scale Economies, Product Differentiation and Pattern of Trade”, American Economic Review, 70:950-959. Melitz, M. (2003): “The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity”, Econometrica, 71(6):1695-1725. Spence, A.M. (1976) :”Product Selection, Fixed Costs and Monopolistic Competition”, Review of Economic Studies, 43:215-235.


INTERNATIONAL TRADE AND FINANCE-II (ECNMA 403.B)


1. The International Financial System The Foreign Exchange Market International Money Markets Eurocurrencies and Euromarkets : External Financial Markets

2. Introduction to International Macroeconomics A Broad Picture of the Open Economy National Income Accounting for an Open Economy The Balance of Payments accounts

3. Income, Trade and Capital Flows : Fixed and Flexible Exchange Rates Determination of Output, Employment, and the Trade Balance Fixed Exchange Rates and Foreign Exchange Intervention Macroeconomic Policy under Floating Exchange Rates Expectations, Exchange Rate Dynamics and Economic Policy Inflation, Unemployment and Economic Policy in the Open Economy

4. The Monetary Approach to the Balance of Payments Money, Interest Rates, Price Level and Exchange Rates Inflation and Exchange Rate Dynamics

References

Rivera – Batiz ( 1989 ) :International Finance and Open Economy Macroeconomics, Macmillan Publishing Company, New York Giancarlo G. (2000) :International Finance and Open Economy Macroeconomics, Springer. Krugman, P. R. and Obstfeld, M. (1991):International Economics : Theory and Policy, 2nd Edn, New York, Harper-Collins. Levi,M., International Finance and Open Economy Macroeconomics, Caves R, Frankel J.A. and Jones R.W.(1990).: World Trade and Payments, Boston, Little, Brown and Co. Dornbusch, R. (1980) : Open Economy Macroeconomics, Basic Books, Inc Publishers, New York.


INTERNATIONAL TRADE AND FINANCE-III(ECNMA 404.B)

Full Marks: 50[=40(exam)+10(internal assessment)] (38 Lectures)

International Trade and Development

1. Trade Policies and Development Foreign Capital and Development Issues Outsourcing Issues of North-South Terms of Trade

2. Trade and inequality Issues in Regional Inequality Trade and Wage Inequality in Developing Countries

3. Trade, Growth and Welfare Theory of Immiserizing Growth and its applications Welfare Implications of Directly Unproductive Profit-Seeking Activities

4. Regional Trade Blocs Theories of Customs Unions and Free Trade Areas Recent Developments of the Institutional Frameworks of the RTBs Welfare implications

References

For Trade Policies and Development Marjit, S. and Beladi H.(1996), ‘Protection and the Gainful Effects of Foreign Capital’, Economics Letters, 53, 3, 311–16.

Chao, C. and. Yu, E. (1994), ‘Foreign Capital Inflows and Welfare in an Economy with Imperfect Competition’, Journal of Development Economics, 45, 1, 141–54 Bhagwati,J., Panagariya,A. and Srinivasan, T. N. (2004), ‘The Muddles over Outsourcing’, The Journal of Economic Perspectives, Vol. 18, No. 4, pp. 93-114. Sarkar, P (2004), ‘Export Diversification, Market Shares and Issues of North-South Terms of Trade’ in Bhattacharya, A. and Marjit, S. (Eds.), Globalization and the Developing Economies: Theory and Evidence. Manohar Publishers and Distributors, New Delhi, 157-176. Sikdar, S. (2002), ‘Multinational Corporations and Direct Foreign Investment’ in Contemporary Issues in Globalization. OUP, New Delhi, 79-101. Feenstra, R. and Hanson, G. (1998), ‘Foreign Direct Investment and Relative Wages: Evidence from Mexico’s Maquiladoras’, Journal of International Economics, 42, 3/4, 371–93.

For Trade and inequality Krugman, P and Liras Elizondo R. (1996), ‘Trade Policy and the Third World Metropolis’, Journal of Development Economics, 49, 137-150. Marjit, S; Kar , S. and Maiti, D. (2007), ‘Regional Trade Openness Index and Income Disparity – A New Methodology and the Indian Experiment’, Economic and Political Weekly, March 4, 2007. Susan C..Z., and Trefler,D. (2005), ‘Trade and Inequality in Developing Countries: A General Equilibrium Analysis’, Journal of International Economics, 65, 21–4. Feenstra, R.C. and Hanson, G.H. (1996), ‘Foreign Investment, Outsourcing, and Relative Wages’ in Feenstra, R.C., Grossman, G.M. (Eds.), The Political Economy of Trade Policy: Papers in Honor of Jagdish Bhagwati. MIT Press, Cambridge, MA, 89– 127.

For Trade and Labour Deardorff, A.V. (2000), ‘Policy Implications of the Trade and Wage Debate’, Review of International Economics, 8(3), 478–496. Marjit, S. and Kar, S. (2004), ‘Wages, Labour Mobility, and International Trade’ in Bhattacharya, A. and Marjit, S. (Eds.), Globalization and the Developing Economies: Theory and Evidence. Manohar Publishers and Distributors, New Delhi, 135-156. Kar, S.and. Marjit, S. (2001), ‘Informal Sector in General Equilibrium: Welfare Effects of Trade Policy Reforms’, International Review of Economics and Finance, 10(3), 289–300. For Trade, Growth and Welfare Bhagawati, J.N. (1973), ‘The Theory of Immiserizing Growth: Further Applications’, in Feenstra. R.C. (Ed.), Essays in International Economic Theory, Vol.1 (1983), MIT Press, Cambridge, 121- 129. Bhagawati, J.N. (1969), ‘Optimal Policies and Immiserizing Growth’, in Feenstra. R.C. (Ed.), Essays in International Economic Theory, Vol.1 (1983), MIT Press, Cambridge, 130-133. Bhagawati, J.N. (1982), ‘Directly Unproductive Profit-Seeking (DUP) Activities’ in Feenstra. R.C. (Ed.), Essays in International Economic Theory, Vol.1 (1983), MIT Press, Cambridge, 259-273. Bhagawati, J.N. and Bent Hansen (1973), ‘A Theoretical Analysis of Smuggling’ in Feenstra. R.C. (Ed.), Essays in International Economic Theory, Vol.1 (1983), MIT Press, Cambridge, 286-301. For Regional Trade Blocs Lipsey, R.G. (1960), ‘The Theory of Customs Unions: A General Survey’, The Economic Journal, Vol.70, No. 279, pp. 496-513. Krauss, M.B. (1972), ‘Recent Developments in Customs Union Theory: An Interpretive Survey’, Journal of Economic Literature, Vol.10, No. 2, pp.413-436. Panagariya, A. and. Krishna, P. (2002), ‘On Necessarily Welfare-Enhancing Free Trade Areas’, Journal of International Economics, 57, 353-367.


INTERNATIONAL TRADE AND FINANCE -IV (ECNMA 405.B)

Full Marks: 50(=30+20)

Project Work

Students will have to prepare a project report .It can be a theoretical trade model or it can be an

empirical work based on primary and secondary data. The project report will be evaluated by the

departmental teachers and 30 marks will be allotted for that. For viva-voce and/or presentation of the project

report 20 marks will be allotted. During the viva-voce and/or presentation one external will be present along

with the departmental teachers for evaluation. No supervisor will be allotted for each student. Students

will be given a list of topics and the concerned teachers will give some general guidelines. Students

will have to prepare the project reports on their own. There can be some demonstration classes about

the theoretical trade modeling and/or use of secondary empirical data in the context of international

trade. The concerned teacher/teachers can mention in the class some of the sources of these secondary

data. The empirical analysis can be done by using computer softwares and if required, the concerned

teacher/teachers can demonstrate the use of computer software in the computer laboratory.

SPECIAL COURSE 4.2.C ECONOMICS OF AGRICULTURE AND RURAL DEVELOPMENT-I (ECNMA 402.C)


(40 Lectures) 1. Models of Agricultural Development:

Schultz’s Transformation of Agricultural Development, Mellor’s model of Agricultural Development, Bose up’s Model of Agricultural Development

2. Food Production, Starvation , Famine Debate and Food Security Food Availability, Supply and Demand, Role of Technology in Production and Theory of Exchange

Entitlement Sen’s Reading of The Bengal Famine 1942-43, the cases of Bangladesh, Ethiopia, China; Slump and

Boom Famines. Food Security, Nutrition security, Public Distribution System- A Critical Observation

3. Rural Credit Market Features of rural credit market, Advantages and Limitations of Formal and Informal Credit in India,

linkages between land and credit market Lender’s Risk Hypothesis, Simple models of Credit rationing, Information asymmetry, Monitoring

and Collusion. Alternative Credit Policies, microfinance, SHGs, Comparison between Bangladesh and Indian

models. 4. Rural Non-farm Employment

Trends and Pattern of rural non-farm employment in India; Linkages between farm and non-farm sectors; Job opportunities, accumulation and employment.

References Ray, D. Development Economics, Oxford University Press, chapters 10, 14, Sen, A. Poverty and Famines, , chapters 1, 5, 6, and 10. Gulati and Narayan : The Subsidy Syndrome in Indian Agriculture, Oxford University Press, Chapters: introduction, 1 and 2. Articles from various issues of Economic and Political Weekly Basu, K. (1984) : The Less Developed Economy, Oxford University Press. Harris J.R. and Todaro, M.P. (1970) : “ Migration, Unemployment and Development : A Two- Sector Analysis”, American Economic Review, 60: 126-142. Corden, W.M. and Findlay, R (1975) : “Urban Unemployment, Intersectoral Capital Mobility and Development Policy”, Economica, 29: 59- 78. Harper, M.(ed) (2003): Microfinance: Evolution, Achievements and Challenges , I.T.D.G. Publishing Company. Fisher, T and Sri Ram (2003): Beyond Microcredit: Putting Development Back into Microfinance, Sage Publishing Company. Articles on Microfinance from Journal of Development Economics,1999, vol60. Visaria, P. and Basant, R. (ed.) (1994): Non-Agricultural Employment in India: Trends and Prospects, Sage Publications, New Delhi. Basant, R,. (1998) : “Economic Diversification in Rural Areas: An Overview” in Basant, R.,Kumar, B.L. and Parthasarathy,R. (eds) Non-Agricltural Employment in Rural India, Rawat Publishers.

SPECIAL COURSE 4.3.C

ECONOMICS OF AGRICULTURE AND RURAL DEVELOPMENT-II (ECNMA 403.C)


(50 Lectures)

Theory and Practice of Rural Development

1. Agrarian Structure and Rural Poverty Mechanisms through which regressive features of the agrarian economy keep the mass of the rural

population in perpetual poverty. 2. Reforms in Agricultural Sector

Subsidy in Agriculture, measurement and definition; Domestic support and Cross-country perspective; Subsidy in Indian agriculture,

Role of MNCs in Indian agriculture, Debt-trap and suicide of farmers – the case of Maharashtra, Karnataka and Andhra Pradesh.

3. Agricultural Finance: Need for Agricultural Finance; Regional Rural Banks; NABARD; Co-operative Banks.

4. Decentralisation , Rural Poverty Alleviation and Panchayati Raj in India

Liberal Interventionist approach Radical approach. Evolution of Panchayati Raj—73rd Constitutional Amendment Act—present status of implementation—

factors explaining the relatively poor performance of panchayats in most states—Accountability framework for panchayats.

Panchayati Raj in West Bengal : Structure of PRI in WB—Devolution of Functions, Functionaries and Finance—Issues in Panchayat Finance—Evaluation of PRI in WB.

References

Joshi, P.C. (1979): ‘Perspectives on Poverty and Social Change : Emergence of the Poor as a Class’ , Economic and Political Weekly, Annual No. ,February. Chambers, R.(1983) :Rural Development : Putting the last first, Longman. Shergill, H.S(1989).: ‘Agrarian Structure as a Factor in Rural Poverty’, Economic and Political Weekly, March 25. Hye, H. A.(1986): Integrated Approaches to Rural Development, Sterling Publishers. Govt. of India(2008):, Ministry of Panchayati Raj- The State of the Panchayats 2007-08. Govt. of India(2006):Report of the Expert Group: Planning at the Grassroots Level, Ministry of Panchayati Raj, Govt of India. Govt. of India(2007) :Second Administrative Commission : Sixth Report : Local Governance, Mukarji, N. and .Bandyopadhyay, D. (1993): New Horizons for West Bengal’s Panchayats, Dept. of Panchayats & Rural Development, Govt. of W.B. Bhaumik, A. K.(2001) : Political Economy of Panchayat Finance in West Bengal. Saxena, N.C.:‘Poverty Alleviation During the 10th Plan- Policy Issues’, Planning Commission, Govt. of India. Articles on NGOs by 1. Damodar Sura & et al(2006), and 2. Mokbul Morshed Ahmad (2006) in M.C.Behera (ed)- Globalising Rural Development, Sage. Sundaram, K.(2002): ‘On Identification of Households below Poverty Line in BPL Census 2002:Some Comments on the Proposed Methodology’, Economic and Political Weekly, March. Hirway, I. (2003): ‘Identification of BPL Households for Poverty Alleviation Programmes’, Economic and Political Weekly, November 8. Govt. of India (2009): Report of the Expert Group on the Methodology for Conducting the BPL Census for 11th Five Year Plan, Ministry of Rural Development,August. Kumar, S. (2002) : Methods for Community Participation : A Complete Guide for Practioners, Vistar Publications. Mukherjee, N.(2002): Participatory Learning and Action, Concept Publishers. Bhaumik,A.K.(2007) :‘Project Implementation: As Practised and as Desired’, Rabindra Bharati University Journal of Economics, Vol. I.

SPECIAL COURSE 4.4.C ECONOMICS OF AGRICULTURE AND RURAL DEVELOPMENT-III (ECNMA 404.C)


(38 Lectures)

1. Ownership Cultivation and different tenurial contracts

Efficiency of different tenurial contracts vis-à-vis ownership cultivation. Uncertainty and share tenancy. Coexistence of Share Tenancy, Fixed Rent Tenancy and Wage Contract in Indian Agriculture –

Some explanations. Factors determining the leasing decision – factor market imperfections.

2. Rural Credit Market and different types of Inter linkage.

Characteristics of rural credit market. Different explanations for high interest rate in informal credit market – Underpricing of Collateral

– delay in disbursement of formal credit. Credit-Product Interlinkage – ICPC vs. NICPC – Price uncertainty. Credit-Labour Interlinkage – Potential Risk, Bardhan Model, Basu’s model – interlinkage in risk

less world, M.R. Gupta model.

3. Credit Share-Cropping Interlinkage and problem of innovation. Agricultural Stagnation – Semi feudal character - Bhaduri model. Price Uncertainty, Crop failure and crop insurance Scheme.

4. Agriculture in the Context of Global Economy

WTO and Indian Agriculture Agriculture and Environment Agriculture and Climate Change

5. Food Industry Consolidation and Agro-industrialization

Concentration Downstream in the ‘Agrifood’ system. Globalization and three waves of consolidation. Rural Processing and impact on the RNFE : Emerging Evidence

References

Bardhan P. (1980), ‘Interlocking Factor Markets and Agrarian Development: A Review of Issues’, Oxford Economic Papers, 32( 1). Bardhan P. (1984), Land Labour and Rural Poverty : Essays in Economic Development , Oxford University Press. Basu, K. (1984):The Less Developed Economy: A Critique of Contemporary Theory, Oxford University Press. Bhadhuri, A. (1973): “A Study in Agricultural Backwardness under Semi-feudalism”, Economic Journal, 83: 120-137. Chadha, G. K. (1993): “Nonfarm Employment for Rural Households in India : Evidence and Prognosis ,” The Indian Journal of Labour Economics, 36(3): 296-327. Chaudhuri, S. (1996), ‘Credit Product Interlinkage : Different Explanation’ The Indian Journal of Economics, 77( 305). Chaudhuri, S. (1996):‘Price Uncertainty and Credit-Product Interlinkage – A Note’ Keio Economic Studies, 33(2): 102-115. Chadhuri, S. (2004) : Some Aspects of Agricultural Credit in a Developing Economy, Serials Publication, New Delhi. Ellis, F. (1993), Peasant Economics, Cambridge University Press. Gupta M. R. (1990), ‘Production Uncertainty, Lenders’ Risk and Landlord’s incentive to innovate in an interlinked Credit Share Cropping Contract’, Journal of Quantitative Economics, 6(1):11-18 Haggblade S., Hazell, B. R. and Reardon, T. (2007), ‘Transforming the Rural Nonfarm Economy’, The John Hopkins University Press. Rakshit, M. (1982): The Labour Surplus Economy, Macmillan, New Delhi and Humanities Press, New Jersey.

SPECIAL COURSE 4.5.C

RURAL ECONOMICS -IV (ECNMA 405.C)

Full Marks: 50(=30+20)

Project Work

Students will have to prepare a project report .It can be an empirical work based on either field

survey data or secondary data. The project report will be evaluated by the departmental teachers and 30

marks will be allotted for that. For viva-voce and/or presentation of the project report 20 marks will be

allotted. During the viva-voce and/or presentation one external will be present along with the departmental

teachers for evaluation. No supervisor will be allotted for each student. Students will be given a list of

topics and the concerned teachers will give some general guidelines. Students will have to prepare the

project reports on their own. There can be some demonstration classes about the use of field survey

data or secondary data in the context of rural economics. The concerned teacher/teachers can

mention in the class some of the sources of these secondary data. In case of field survey , the

concerned teacher/teachers can give a guideline for the questionnaire and can administer the field

survey to be done by the students.

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