DEPARTMENT OF ECONOMICS

Faculty of Arts
The Maharaja Sayajirao University of Baroda

Bachelor of Arts (Honours) Programme of Studies

ECONOMICS
6-Semester Course
3 Credit Course per paper per semester
Maximum 45 hours per paper

Course Titles and Detailed Syllabi

[w.e.f. 2013-2014]

1
 Titles of Courses

Semester Course No. Course Title Page No.

Semester-01 CORE - 01 Elements of Economic Theory–I 03
(04) ALLIED - 01 / 02 Basic Economics–I 04
INTD ELCTV - 01 Introduction to Economic Theory 05
Semester-02 CORE - 02 Elements of Economic Theory–II 07
(06) ALLIED - 03 / 04 Basic Economics – II 08
INTD ELCTV - 02 Indian Economy 09
FOUNDATION - 06 Basic Environmental Economics 10
FOUNDATION - 07 Everyday Economics 11
Semester-03 CORE - 03 Microeconomics – I 12
(07) CORE - 04 Mathematical Techniques in Economics 14
CORE - 05 Indian Economic Structure 16
ALLIED - 05 / 06 Economic Theory 18
INTD ELCTV - 03 / 04 Fundamentals of Economic Growth & Development 19
Semester-04 CORE - 06 Microeconomics – II 20
(07) CORE - 07 Statistical Techniques in Economics 22
CORE - 08 Indian Economic Issues 24
ALLIED - 07 / 08 Indian Economic Problems 25
INTD ELCTV - 05 / 06 Global Economy 26
Semester-05 CORE - 09 Public Finance 27
(07 + 01) CORE - 10 Macroeconomics – I 29
CORE - 11 International Economics – I 31
CORE - 12 Economics of Growth & Development 32
CORE - 13 History of Economic Thought 34
CORE - 14 (a) Agricultural Economics 35
OR
(b) Basic Mathematical Economics 37
INTD ELCTV - 07 Indian Financial System 39
PROJECT - 01 Project Work
Semester-06 CORE – 15 Economic Planning in India 40
(07 + 01) CORE – 16 Macroeconomics – II 42
CORE – 17 International Economics – II 44
CORE – 18 Industrial Economics 46
CORE – 19 Banking and Financial Markets 47
CORE – 20 (a) Environmental & Natural Resource Economics 49
OR
(b) Basic Econometric Methods 51
INTD ELCTV – 08 Economics of Social Issues 52
PROJECT – 02 Project Work
40 X 3 = 120

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 B.A. ECONOMICS : SEMESTER I
Core 01
ELEMENTS OF ECONOMIC THEORY – I
[Paper Code : AB1C01EC0N]
Objectives:
At the end of this course students will be able to
Describe the concepts and objectives of study of Economics
Explain the behavioral pattern of various economic entities and their inter-relationships
within the framework of economic theory.
Explain the relevance of economic theory at a Micro Level.
Course Outline:
UNIT I : Nature, Scope & Subject Matter of Economics [11 Hours]
Definitions of Economics – Economic Activities – Nature of Economic Laws – Inductive & Deductive
Methods of Economic Analysis – Positive & Normative Economics – Basic Concepts; Human Wants;
Their Characteristics & Classification – Cardinal & Ordinal Utility –Goods : Its Meaning &
Classification – Wealth, Income & Welfare – Indicators of welfare
UNIT II : Utility Analysis and Consumer Behaviour [11 Hours]
Consumer’s Equilibrium: Law of diminishing Marginal Utility, Law of Equi-marginal utility and its
Application to Demand theory – Consumer’s Surplus – Demand : Types of Demand, Law of Demand,
Diagrammatic & Numerical Explanation of Consumer’s Behaviour.
UNIT III : Demand and Supply Analysis [12 Hours]
Elasticity of Demand, Methods of Measuring Elasticity of Demand and Values of Elasticity of
Demand – Supply : Law of Supply, Elasticity of Supply – Elasticity of Demands and its Methods of
Measurement – Various Concepts & Measurement of price, income, and cross elasticity of demand.
UNIT IV : Price Determination and Equilibrium under perfectly Competitive Market
[11 Hours]
Markets : Types & Features – Cost and Revenue Analysis – Cost Curves and Cost-output
Relationship – Price Determination in a Perfectly Competitive Market –Short Run & Long Run
Equilibrium of a Perfectly Competitive Firm & Industry under Identical Cost Conditions –
Diagrammatic Numerical Explanation.
Modes of Transaction:
Lectures-cum-discussion method supplemented with various appropriate audio-visual aids.
Activity assignments (i.e. practical numerical problems)
References [All Latest Editions wherever applicable]
1. K. K. Dewett & J. D. Verma : Elementary Economic Theory- Latest edition.
2. K. P. M. Sundaram : Elementary Economic Theory - Latest edition.
3. N. Gregory Mankiw(2002), Principal of Economics, 2nd Edition, Thomson (India).
4. Paul. A. Samulson & Nordhans William D.(2009) : Economics – 18th Edition, Tata Mc Graw – Hill
Publishing Company Limited, New Delhi.

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 B.A. ECONOMICS : SEMESTER I
Allied 01 / 02
BASIC ECONOMICS – I
[Paper Code : AB1A01EC0N / AB1A02EC0N]

Objectives:
At the end of this course students will be able to
Describe the concepts and objectives of study of Economics
Explain the behavioral pattern of various economic entities and their inter – relationships
within the framework of economic theory.
Explain the relevance of economic theory at a Micro Level.

Course Outline:
UNIT I : Nature, Scope & Basic Concepts [11 Hours]
Subject matter and purpose of economic activities – Definitions of Economics, Basic
concepts : Human Wants – Characteristics and classification of Human Wants: Utility,
Goods, Wealth and Welfare, value and Price.

UNIT II : Consumer Behaviour [11 Hours]

Law of Diminishing Marginal Utility Consumer’s surplus Law of Equi Marginal Utility,
Demand : Types of Demand, Law of Demand, Determinant’s of demand, Increase and
Decrease in demand and Extension and contraction of demand
Elasticity of Demand & Supply Types of Elasticity Price elasticity of demand, Values of price
elasticity of demand.

UNIT III : The concepts of costs & cost curves [12 Hours]
Total cost, Total fixed cost, Total variable cost, Marginal cost, Average cost, Fixed cost,
Average variable cost, Relationship between Average cost and Marginal cost curves, Short
run and Long run cost curves.

UNIT IV : Types of Markets and concepts of Revenue [11 Hours]

Types and features of markets, Average and Marginal Revenue curves, Relationship
between Average and Marginal Revenue curve – Short run and Lon run equilibrium of a
perfectly competitive firm and industry under identical cost condition.

References [All Latest Editions wherever applicable]

1. K. K Dewett & J. D. Verma: Elementry Economic Theory (Latest Edition)
2. K. P. M. Sunderam : Elementary Economic Theory
3. H. L. Ahuja : Principles of Economics
4. Paul A. Samulson : Economics

4
 B.A. ECONOMICS : SEMESTER I
Interdisciplinary Elective 01
INTRODUCTION TO ECONOMIC THEORY
[Paper Code : AB1I01EC0N]

Objectives:
At the end of this course students will be able to:
will be able to develop an understanding of basic theoretical concepts in economics.
will gain insight into the relevance of economic theory in a nation’s progress.
will get a broader understanding of consumer and producer behavior in the market.
will gain insight into issues relating to the global economy.

Course Outline:

UNIT I : Basic Conceptual Framework [10 hours]

Definition – Central problem of resource allocation – scarcity and choice – institutional
approaches to resource allocation, state and market – basic concepts in economics – utility,
price v/s value, income, wealth – micro and macro economics – economic systems – full
employment

UNIT II : Consumption Theory – Demand Analysis [11 Hours]

Utility as a basis for demand – Demand : meaning, law, curvature properties, exceptions –
elasticity of demand : types, degrees and measurement – indifference curves, properties –
decomposition of price effect into income and substitution effects – derivation of demand
curve – income and price consumption curves.

UNIT III : Production Theory – Supply Analysis [11 Hours]

Supply analysis – Markets : types and characteristics – price, quantity and equilibrium
determination in perfect and imperfect markets – cost-output relationship – cost curves –
revenue analysis – profit determination, normal and supernormal profits – price and cost
under imperfect competition (monopoly)

UNIT IV : Global Economic Issues [13 hours]

Concepts of GDP, GNP – external sector in economic analysis – International trade as an
engine of growth – balance of payments – foreign exchange rate and its determinants –
foreign direct investment – global environmental issues

Modes of Transaction:
Major part of the course work will be taught by the lecture method but wherever
necessary, discussion on different practical issues will also be employed.
Some portion of the course work would be given to students in the form of
assignments and self-study.

5
References (All Latest Editions wherever applicable)
1. Ahuja, H.L. – Microeconomic Theory
2. Dewett, K.K. and J.D. Varma – Elementary Economic Theory
3. Harvey, J, Srinivasan and Selvaraj – Mastering Economics, Macmillan.
4. Mehra, Gupta and Agarwal – Economic Theory
5. Pavithran K.V. (2008) – A Textbook of Environmental Economics, New Age International
Publishers, New Delhi.
6. Rastogi R.S. – Introductory Economic Theory, Neelam Publications
7. Samuelson, Paul – Economics.
8. Singh, Katar and A. Shishodia (2007) – Environmental Economics : Theory and
Applications, Sage Publications, New Delhi
9. Sundram, K.P.M. – Money, Banking Trade and Finance
10. Sundram K.P.M. – Principles of Economics

6
 B.A. ECONOMICS : SEMESTER II
Core 02
ELEMENTS OF ECONOMIC THEORY – II
[Paper Code : AB2C02EC0N]
Objectives:
At the end of this course students will be able to
Describe the concepts and objectives of study of Economics
Explain the behavioral pattern of various economic entities and their inter-relationships within the
framework of economic theory.
Explain the relevance of economic theory at a micro Level.
Course Outline:
UNIT I : Factors of Production [11 Hours]
Land, Features, Old and Modern Versions of Laws of Returns – Labour : Characteristics, Division of
Labour (Types, Merits & Demerits), Theories of Population – Capital : Meaning, Features, Types &
Importance of Capital, Capital formation – Forms of Business Organisation: Functions of an
Organizer.
UNIT II : Theory of Distribution [12 Hours]
Functional Vs. Personal Distribution of Income – Wages: Marginal Productivity Theory of Wages,
Wage Differentials – Interest : Elements of Interest, Theory of Interest Rate Determination – Rent :
Concept of Economic Rent – Ricardian Vs. Modern theory of Rent – Profit : Gross Profits and Net
Profits, Theories of Profit.
UNIT III : Money and Banking [11 Hours]
Difficulties of Barter System, Money : Meaning, Types & Functions – Value of Money- Quantity
Theory of Money : American & Cambridge Versions – Inflation : Causes & Consequences, Deflation,–
Banking : Functions of Commercial Banks and Functions of Central Bank.
UNIT IV : International Trade and Finance [11 Hours]
Principles of Public Finance, Sources of Revenue, Types of Taxes, Types of Government Expenditure
– Concept of National Income and Its Components – External Sector : Importance of International
Trade, Balance of Payments and Foreign Exchange Rate.
Modes of Transaction:
Lecture method is generally used but along with it, as and, when required, discussion method would
be fruitful. It may be supplemented with various appropriate audio-visual aids.
Activity assignments (i.e. practical numerical problems) may be given to the students and
assignment methods would help them to learn by doing.

References (All Latest Editions wherever applicable)

1. K. K. Dewett & J. D. Verma : Elementary Economic Theory- Latest edition.

2. K. P. M. Sundaram : Elementary Economic Theory - Latest edition.
3. N. Gregory Mankiw(2002), Principal of Economics, 2nd Edition, Thomson (India).
4. Paul. A. Samulson & Nordhans William D.(2009) : Economics – 18th Edition, Tata Mc Graw – Hill
Publishing Company Limited, New Delhi.

7
 B.A. ECONOMICS : SEMESTER II
Allied 03 / 04
BASIC ECONOMICS – II
[Paper Code : AB1A03EC0N / AB1A04EC0N]

Objectives:
At the end of this course students will be able to
Describe the concepts and objectives of study of Economics
Explain the behavioral pattern of various economic entities and their inter – relationships
within the framework of economic theory.
Explain the relevance of economic theory at a Micro Level.

Course Outline:
UNIT I : Factors of Production [11 Hours]
Land : features of land, Raws of Returns – Labour : Characteristics and Division of Labour,
Merits and Demerits of Division of Labour, Theories of population – Capital : Importance of
capital, capital formation – Organization : Functions of organizer

UNIT II : Theory of Distribution [11 Hours]

Functional Vs. Personal Distribution of Income – Marginal productivity Theory of wages
Rent : Concepts of Economic Rent, Ricardian Theory of Rent – Interest : Elements of
interest, Theory of Interest Rate Determination – Profit: Gross profit and Net profit

UNIT III : Money and Banking [12 Hours]

Difficulties of Barter System – Money : Meaning and Types of Money, Functions of Money –
Inflation: Causes and consequences of inflation – Banking : Functions of commercial Banks
and Functions of Central Bank

UNIT IV : International Trade and Finance [11 Hours]

Principles of Public finance, Sources of Revenue, Types of Taxes, Types of Government
Expenditure – Concepts of National Trade, Balance of payments and Foreign Exchange Rate

References [All Latest Editions wherever applicable]

1. K. K Dewett & J. D. Verma: Elementry Economic Theory (Latest Edition)

2. K. P. M. Sunderam : Elementary Economic Theory
3. H. L. Ahuja : Principles of Economics
4. Paul A. Samulson : Economics

8
 B.A. ECONOMICS : SEMESTER II
Interdisciplinary Elective 02
INDIAN ECONOMY
[Paper Code : AB2I02EC0N]
Objectives:
At the end of this course students will be able to:
Analyse the nature and working of the Indian Economy.
Have a broader understanding of the different sectors of the economy.
Identify and analyze the problems and issues in the Indian Economy.

Course Outline:

UNIT I : Structure of Indian Economy [12 Hours]

Demographic Profile – Growth, Age and Gender, rural–urban distribution; National
Population Policy (2000); Natural Resources and their role in development of Indian
Economy – Land, Forest, Water, Fisheries, Mineral Resources – Problem and Issues;
National Income and Poverty.

UNIT II : Agriculture [12 Hours]

Place of Agriculture in the Indian Economy. Green Revolution, Land Reform Measures,
Agricultural Labour, Agricultural Credit: Forms and Major Credit Institutions.

UNIT III : Industry [11 Hours]

Role and Pattern of Industrialization during 5 years plans. Small-scale industries: Role,
Problem Measures adopted, Industrial Labour-Features, Problems and Measures.
Liberalization and Privatization Measures, Industrial Policy of 1991.

UNIT IV : Tertiary Sector [10 Hours]

Composition and direction of foreign trade; Indian Financial System: Features, Structure
Composition; Classification of Banks; Banking Sector Reforms. Centre-State Financial
Relations.

Modes of Transaction: Lectures and Class discussions

References (All Latest Editions wherever applicable)

1. Ishwar C. Dhingra - The Indian Economy, Tata McGraw-Hill Publishing Company Ltd.
Delhi.
2. Gaurav Dutt and A. Mahajan (Latest Edition) - Dutt and Sundharam’s Indian Economy,
Sultan Chand & Sons Publications.
3. Misra and Puri - Indian Economy, Himalaya Publication House

9
 B.A. ECONOMICS : SEMESTER II
Foundation 06 (Value Oriented)
BASIC ENVIRONMENTAL ECONOMICS
[Paper Code : AB2F06EC0N]
Objectives:
At the end of this course, the student,
will be able to understand the basic concepts and issues involved in creating environmental
awareness.
will be able to understand the nature of environmental problems and the valuation of
environment.
will be able to appreciate the increasingly important role of institutional and global responses to
address environmental concerns.

Course Outline:
UNIT I : Conceptual Framework [12 Hours]
Economics, Environment, Ecology and Development – Traditional and Modern Views of
Development – concepts of sustainable development and human development
UNIT II : Introduction to Environmental Economics [10 Hours]
Subject Matter, Nature and Scope of Environmental Economics – Resource Economics – Natural
resource categories – Environment-economy linkages
UNIT III : Environmental Valuation [11 Hours]
Concept of Total Economic Value – Need for environmental valuation – Approaches to
environmental valuation : direct and indirect – concept and meaning of environmental
accounting
UNIT IV : Environmental Issues [12 Hours]
Types and nature of environmental problems – environmental education – environmental
management and governance – policy and legislations – environmental initiatives : national
and global

Modes of Transaction:
The major part of the course work will be taught by the lecture method but wherever necessary,
class discussion on different practical issues will be encouraged.
Some portion of the course work would be given to students in the form of assignments.

References
1. Muralivallabhan, Sheeba and Thomson (2012) – Environmental Economics : Foundations of
Environmental Economics, Pratibha Publishers, Kerala.

10
 B.A. ECONOMICS : SEMESTER II
Foundation 07 (Social Sciences)
EVERYDAY ECONOMICS
[Paper Code : AB2F07EC0N]

Objectives:
At the end of this course students will be able to
Get understanding of many economic events / phenomena/ issues involved in every day of
human lives.
Understand meaning of different terms and concepts of economics used in every day life of
citizens.
Appreciate how our daily life and routine work is affects by the activities of others in India
and abroad; interdependence of each other.

Course Outline:

Unit - I : Economics and Economy [12 Hours]

Meaning of Economics and Economy – What is economics? “Tools of Economics” - Micro
economics and Macro economics; Positive economics and Normative economics; -
Developed economy and developing economy – Mixed economy; -Public sector and Private
sector; Government functions.

Unit – II : Market [12 Hours]

Market and their functions; - Types markets – Stock market - Capital market – Money
market – Goods market - Factor market – Foreign exchange market; Functions of Reserve
Bank of India and Commercial Banks

Unit – III : Major Economic Problems [10 Hours]

Inflation – Unemployment – Population – Sustainability issue – Poverty – Inequality of
distribution of Income

Unit – IV : Global Economy [11 Hours]

Free Trade - Import and Export; Exchange rate of rupee – Devaluation; Balance of
Payment and Foreign Direct Investment [FDI]; International Monetary Fund [IMF] and
World Bank

Books recommended :
[1] Campbell R. McConnell : Economics.
[2] Paul Samuelson : Economics.
[3] K.K. Dewett and J.D. Varma : Elementary Economic Theory
[4] K.K. Dewett, J.D. Varma & M.L. Sharma : Elementary Indian Economics

11
 B.A. ECONOMICS : SEMESTER III
Core 03
MICROECONOMICS – I
[Paper Code : AB3C03EC0N]

Objectives:
To introduce the students to principles essential to an understanding of fundamental
economic problems and the policy alternatives society may utilize to contend with these
problems. This course also aims at enabling the student to reason accurately and objectively
about the economic matters and to develop a lasting interest in Economics.

Course Outline:

UNIT I : Introduction and Subject Matter [11 Hours]

Nature and scope of economics; Micro economics and macroeconomics; Positive economics
and Normative economics; Concept of Equilibrium, Partial and general equilibrium;
Methodology in economics; Concepts of static, comparative static and dynamics; Choice as
an economic problem; Basic postulates;

UNIT II : Consumer Behaviour – Cardinal Utility [10 Hours]

Utility - Cardinal and ordinal approach; Law of diminishing marginal utility and Law of equi
marginal utility ;Consumer’s equilibrium and demand curve explanation with Cardinal
utility approach- Role of price mechanism; Demand and supply; Basic framework -
applications; Market equilibrium; Illustration with an example and application.

UNIT III : Consumer Behaviour – Ordinal Utility [13 Hours]

Indifference curve; Consumers equilibrium (Hicks and Slutsky); Explanation of Consumer’s

equilibrium and Demand Curve by indifference curve; Inferior goods and Giffen goods;
Compensated demand; Elasticity of demand- Price, Income and Cross and elasticity of
substitution; method of measuring price elasticity of demand; Illustrative examples;
Consumers' surplus and producer’s surplus and the deadweight loss; Engel curve.

UNIT IV : Theory of Production and Costs [11 Hours]

Production decision; Production function; Iso-quant; Factor substitution; Law of variable

proportions; Returns to Scale; Economies of scale; Different concepts of costs and their
interrelation; Equilibrium of the firm; Expansion path; empirical evidence on costs.

12
Modes of Transaction:

The lecture method along with class discussion shall remain the main approach to learning
and interaction exercise. It will be supplemented by illustrations of technical
problems/theories/issues with application, Unit wise summaries, examples and sums and also
provision of Glossary explaining important Micro economics terms.

References [All Latest Editions wherever applicable]

1. Ahuja H.L(2006) , Modern Microeconomics Theory and Application, S. Chand, New Delhi.
2. Gould, J.P. and Edward P.L. (1996), Microeconomic Theory, Richard Irwin, Homewood.
3. Heathfield and Wibe (1987), An Introduction to Cost and Production Function,
Macmillan, London.
4. Leftwich, R. (1972), Price System & Resource Allocation, 5th Edition, Dryden Press,
Illinois.
5. Lipsey R.G. and K.A. Chrystal (1999), Principles of Economics (9th Edition), Oxford
University Press, Oxford.
6. Mansfield E. (1997), Microeconomics (9th Edition), W.W. Norton and Company, New
York.
7. Ray N.C. (1975), An Introduction to Microeconomics, McMillan Company of India Ltd.
Delhi.
8. Samuelson P.A. and W.D. Nordhaus (1998), Economics, Tata McGraw Hill, New Delhi.
9. Stonier A.C. and D.C.Hague (1972), A Textbook of Economic Theory, ELBS & Longman
Group, London.
10. Varian H.R. (2000), Intermediate Microeconomics: A modern Approach (5th Edition),
East West Press, New Delhi.

13
 B.A. ECONOMICS : SEMESTER III
Core 04
MATHEMATICAL TECHNIQUES IN ECONOMICS
[Paper Code : AB3C04EC0N]

Objectives:
At the end of this course students will be able to
Understand various mathematical concepts.
Understand the application of these concepts in the decisions making processes.
Use various mathematical concepts to analyze economic situations.
Understand the need for diversity of techniques / tools in economic analysis.
Highlight the limitations of these mathematical concepts.

Course Outline:

UNIT I : Basic Concepts [11 Hours]

Variables, Functions, Types of Functions: Linear & Nonlinear Equations, Identities, Systems
of Equations, Equilibrium, Applications of linear and non linear systems. Introduction to
logarithms and laws of indices with their applications.

UNIT II : Differentiation – Economic Applications [13 Hours]

Differentiation of a Bi-variate Function, Logarithmic and Exponential Function: Concepts of

Slope, concavity, convexity and point of inflexion, Maxima and Minima, Elasticity of a
Function, Elasticity of Demand, Revenue and cost analysis; Profit Maximization by Firm:
Perfect Competition, Monopoly and Discriminating Monopoly.

UNIT III : Partial Differentiation– Economic Applications [11 Hours]

Multivariate Functions in Economics- Partial differentiation; Unconstrained optimization of

a multivariate function (Maximization & Minimization) and its Applications in Economics.
Constrained Optimization (Maximization & Minimization) of multivariate function.
Introduction to Integration.

UNIT IV : Input-Output and Linear Programming [10 Hours]

Matrices: Various types, Determinant of a matrix, Inverse of a matrix, Crammer’s rule-

Input-output analysis: Simple static model – assumptions, applications, linkages - Linear
programming: Concept, uses, solution through graphic Method.

14
Modes of Transaction:
Lecture method is generally used but along with it, as and when required, discussion
method would be fruitful.
Numerical examples may be provided to the students by teacher and assignment method
would help them to learn by doing.
Students may be asked to collect relevant economic data and analyze the relations so as to
understand the practicality of the subject.
Wherever necessary Power point presentations may be used for delivery of lectures.

References [All Latest Editions wherever applicable]

1. Allen R.G.D. (1974), Mathematical analysis for Economists, Macmillan Press, London.
2. Black, J. and J.F. Bradley (1973), Essential Mathematics for Economists, John Wiley &
Sons.
3. Monga G. S.(2003), Mathematics and Statistics for Economics, Vikas Publishing House Pvt
Ltd.
4. Edward T. Dowling(2004), Theory and problems of Mathematics for Economists, Schaum’s
Series Outline.
5. Geoff Renshaw (2008), Maths for Economics, (2nd Ed), Oxford.

15
 B.A. ECONOMICS : SEMESTER III
Core 05
INDIAN ECONOMIC STRUCTURE
]Paper Code : AB3C05EC0N]

Objectives:
At the end of this course students will be able to:
Understand the structure and growth process of Indian economy.
Analyze the changing structure of Indian economy.
Understand the need for diversified economic development.

Course Outline:

UNIT I : Indian Economy – A Historical Perspective [12 Hours]

Indian economy in pre-British period – Structure and organization, industries and
handicrafts; Taxation system during British period; Changes in land system;
Commercialization of agriculture; Policy of discrimination and industrial development; The
theory of drain- pros & cons; General impact of colonial exploitation – forms and
consequences. Indian economy at independence.

UNIT II : Structural Changes in Indian Economy Since Independence [11 Hours]

Trends in National Income – growth and changing structure. Trends in rate of savings and
capital formation – constraints on growth. Economic development and changes in
occupational distribution. Concentration of economic activity – measurement and
remedies. Urbanization – trends and pattern.

UNIT III : Agriculture and Industry [11 Hours]

Nature and importance; Trend in agricultural production and productivity; Factors
determining productivity; Land reforms; New agricultural strategy and green revolution;
Rural credit.
Industrial development during planning period; Industrial policy of 1956 and 1991;
Industrial licensing policy – Competition Policy. Growth and problems of small scale
industries; Role of public sector enterprises in India’s industrialization.

UNIT IV : Infrastructure and Services [11 Hours]

Infrastructure – Types, sectoral based needs. Role of infrastructure in economic
development. Formal and informal sectors in Indian economy – Role and performance.
Types of services – producers and consumers services. Transport and communication.
International Trade in services.

16
Modes of Transaction:
Lecture method is generally used but along with it, as and when required, discussion
method would be fruitful.
Students may be asked to collect relevant economic data and analyze the structural
relations so as to understand the practicality of the subject.
Wherever necessary Power point presentations may be used for delivery of lectures.

References [All Latest Editions wherever applicable]

1. Agrawal, A. N. – Indian Economy, Wishwa Prakashan, New Delhi

2. Dhingra I C (2006), The Indian Economy: Environment and Policy, Sultan Chand, New Delhi.
3. Dutt R and K P M Sundaram (2006) Indian Economy, S Chand & Company, Delhi.
4. Economic survey – Government of India.
5. India Development Report – Oxford University Press.
6. Misra S K and V K Puri (2006), Indian Economy – Its Development Experience,
Publishing House, Mumbai.
----------------------

17
 B.A. ECONOMICS : SEMESTER III
Allied–05 / 06
ECONOMIC THEORY
[Paper Code : AB3A05EC0N / AB3A06EC0N]

Objectives:
to build on and carry forward the fundamental concepts in economics that they have learnt in
their first year.
to develop wider focus and deeper understanding on core aspects of economic theory.
to increase student interest in economic growth theory.

Course Outline:
Unit I : Conceptual Fundamentals of Economic Theory [11 Hours]
Central problem of resource allocation – scarcity and choice – institutional approaches to resource
allocation, state and market – utility, cost, income and price as basis for consumer and producer
resource allocation – statics, dynamics and comparative statics – partial and general equilibrium –
concept of business cycles

Unit II : Consumer Analysis – Utility, Demand and Indifference Curves [11 Hours]
Utility as a basis for demand – Demand : meaning, law, curvature properties, exceptions – elasticity
of demand : types and measurement – indifference curves, properties – decomposition of price
effect into income and substitution effects – derivation of demand curve – income and price
consumption curves – least-cost combination of factors.

Unit III : Producer Analysis – Production and Cost [11 Hours]

Supply analysis – Markets : types and characteristics – price, quantity and equilibrium
determination in perfect and imperfect markets – cost-output relationship – cost curves – revenue
analysis – profit determination, normal and supernormal profits.

Unit IV : Money, Banking, Income and Trade [12 Hours]

Money – quantity theory of money – money supply – inflation and unemployment – banking
functions – classical theory of income determination – Keynes criticisms and theory of income
determination – consumption, savings and investment functions – marginal efficiency of capital –
investment multiplier – role of trade and foreign investment in economics.
Modes of Transaction:
The major part of the course work will be taught by the lecture method but wherever necessary,
discussion on different practical issues will also be employed.
Some portion of the course work would be given to students in the form of assignments and self-study.
References [All Latest Editions wherever applicable]
1. Dewett, K.K. and J.D. Varma – Elementary Economic Theory
2. Harvey, J, Srinivasan and Selvaraj – Mastering Economics, Macmillan.
3. Mehra, Gupta and Agarwal – Economic Theory
4. Rastogi R.S. – Introductory Economic Theory, Neelam Publications
5. Samuelson, Paul – Economics.
6. Sundram, K.P.M. – Money, Banking Trade and Finance, S. Chand & Co., New Delhi.
7. Sundram K.P.M. – Principles of Economics, S. Chand & Co., New Delhi.
18
 B.A. ECONOMICS : SEMESTER III
Interdisciplinary Elective 03 / 04
FUNDAMENTALS OF ECONOMIC GROWTH AND DEVELOPMENT
[Paper Code : AB3I03EC0N / AB3I04EC0N]

Objectives :
At the end of this course, the student,
will be able to get an understanding of economic growth and development.
will be able to appreciate the importance of economics in the process of growth and
development.
will be able to attain a holistic perspective on growth and development.

UNIT I : Concepts and Approaches [Jhingan] [13 Hours]

Characteristics of an underdeveloped economy (Ch. 04) – economic Development and
economic Growth (Ch. 01) – Measures of economic development (Ch. 01) – Indices of
development : PQLI, HDI (Ch. 01) – obstacles to economic development (Ch. 05)

UNIT II : Economic Growth [Jhingan, Lokanathan] [11 Hours]

Factors in economic growth : economic and non-economic (Ch. 06) – meaning and
characteristics of modern economic growth (Ch. 08) – concept of national income
(Lokanathan, Ch. 24)

UNIT III : Economic Development [Jhingan] [11 Hours]

Domestic and international measures for economic development : capital formation,
human capital, population, foreign trade, foreign investment (Chs. 51, 57, 58, 61, 68) – role
of state in economic development (Ch. 60)

UNIT IV : Issues in Growth and Development [Jhingan] [10 Hours]

Growth and income distribution : poverty and inequality (Ch. 02) – sustainable
development : meaning, objectives, measures and policies (Ch. 03)

Modes of transaction
Major part of the course work will be taught by the lecture method but wherever necessary,
class discussion on different practical issues will be encouraged.
Some portion of the course work would be given to students in the form of assignments.

References [All Latest Editions wherever applicable]

1. Jhingan, M.L. (2012) – The Economics of Development and Planning, 40th Edition,
Vrinda Publications.
2. Lokanathan, V (2010) – Economic Analysis, S. Chand Publications

19
 B.A. ECONOMICS : SEMESTER IV
Core 06
MICROECONOMICS – II
[Paper Code : AB4C06EC0N]

Objectives:
To introduce students to principles essential to an understanding of fundamental economic
problems and the policy alternatives society may utilize to contend with these problems. This
course also aims at enabling the student to reason accurately and objectively about the
economic matters and to develop a lasting interest in Economics.

Course Outline:

UNIT I : Market Structure [12 Hours]

Market forms - Perfect and imperfect market; Equilibrium of a firm - Perfect competition,
Monopoly and price discrimination; Measures of monopoly power; Monopolistic
competition; Duopoly; Oligopoly; Taxation and equilibrium of the firm; Notion of controlled
and administered prices.

UNIT II : Factor Pricing [12 Hours]

Marginal productivity theory of distribution; Theories of wage determination; Wages and

collective bargaining; Wage differentials; Rent - Scarcity rent; Quasi rent; Interest -
Classical and Keynesian theories; Profit - Innovation, risk and uncertainty theories.

UNIT III : Investment Analysis [11 Hours]

Introduction to Investment analysis; Concept of Capital budgeting; Time value of money;
Payback period - average annual rate of return; Net present value; Internal rate of return
criteria; cost of capital; Price changes; Risk and uncertainty;

UNIT IV : Welfare Analysis [10 Hours]

Introduction; Social welfare; Problems of measuring welfare; Classical welfare economics;
Pareto's criteria; Value judgments; Concept of social welfare function; Compensated
principle - Kaldor, Hicks.

20
Modes of Transaction:
The lecture method along with class discussion shall remain the main approach to learning
and interaction exercise. It will be supplemented by illustrations of technical
problems/theories/issues with application, Unit wise summaries, examples and sums and also
provision of Glossary explaining important Micro economics terms.

References [All Latest Editions wherever applicable]

1. Ahuja H.L(2006) , Modern Microeconomics Theory and Application, S. Chand, New Delhi
2. Gould, J.P. and Edward P.L. (1996), Microeconomic Theory, Richard Irwin, Homewood.
3. Lipsey R.G. and K.A. Chrystal (1999), Principles of Economics (9th Edition), Oxford
University Press, Oxford.
4. Mansfield E. (1997), Microeconomics (9th Edition), W.W. Norton and Company, New
York.
5. Ray N.C. (1975), An Introduction to Microeconomics, McMillan Company of India Ltd.
Delhi.
6. Samuelson P.A. and W.D. Nordhaus (1998), Economics, Tata McGraw Hill, New Delhi.
7. Stonier A.C. and D.C.Hague (1972), A Textbook of Economic Theory, ELBS & Longman
Group, London.
8. Varian H.R. (2000), Intermediate Microeconomics: A modern Approach (5th Edition), East
West Press, New Delhi.

21
 B.A. ECONOMICS : SEMESTER IV
Core 07
STATISTICAL TECHNIQUES IN ECONOMICS
[Paper Code : AB4C07EC0N]
Objectives:
At the end of this course students will be able to
Understand various statistical concepts.
Understand the application of this concepts in the decisions making processes.
Understand statistical methods as a tool of economic analysis.
Understand the need for diversity of statistical techniques in economic analysis.
Highlight the limitation of these statistical concepts.

Course Outline:

UNIT I : Central tendency, Dispersion, Skewness and Kurtosis [12 Hours]

Basic concepts: Population, Sample, Parameter. Representation of data, Primary and
Secondary data.
Measures of central tendency: Mean, Median, Mode, Arithmetic, Geometric and Harmonic
mean.
Measures of dispersion: Range, Mean Deviation, Standard deviation, Coefficient of
variation, Quartile deviation,
Skewness, Kurtosis and their applications in economics

UNIT II : Probability and Probability Distributions [11 Hours]

Probability: Concept, Rules of probability (Addition and Multiplication).
Random variables, Probability distribution, Mathematical expectations.
Theoretical Probability distributions – Binomial and Normal distributions - properties and
uses.

UNIT III : Time Series and Index Numbers [11 Hours]

Time series analysis: concept and components – Determination of regular and irregular
components. Trend, seasonal, cyclical and irregular components.
Index numbers: Concepts, price relative, quantity relative, value relative; Laspeyer’s,
Paasche’s, Marshall Edgeworth and Fisher’s index numbers. Problems in the construction
and limitations of index numbers.

UNIT IV : Correlation and Regression Analysis [11 Hours]

Correlation: concept, Coefficient of correlation – Karl Pearson and Rank Correlation, Partial
and Multiple correlation Analysis.
Regression analysis: Technique, Estimation of regression line in a bi-variate function –
Least squares method, interpretation of regression coefficients.

22
Modes of Transaction:
Lecture method is generally used but along with it, as and when required, discussion
method would be fruitful.
Numerical examples may be provided to the students by teacher and assignment method
would help them to learn by doing.
Students may be asked to collect relevant economic data and analyze the relations so as
to understand the practicality of the subject.
Wherever necessary Power point presentations may be used for delivery of lectures.

References [All Latest Editions wherever applicable]

1. Croxton, F.E., D.J. Cowden and S. Klein (1973), Applied General Statistics, Prentice Hall,
New Delhi.
2. Gupta, S.C. and V.K. Kapoor (1993), Fundamentals of Applied Statistics, S. Chand & Sons,
New Delhi.
3. Speigal, M.R. (1992), Theory and Problems of Statistics, McGraw Hill Book, London.
4. Gupta S.P(2005), Statistical Methods , Sultan Chand , New Delhi.
5. Monga G. S.(2003), Mathematics and Statistics for Economics. Vikas Publishing House
Pvt Ltd.

23
 B.A. ECONOMICS : SEMESTER IV
Core 08
INDIAN ECONOMIC ISSUES
[Paper Code : AB4C08EC0N]
Objectives:
At the end of this course students will be able to:
To familiarize with working of Indian economic system and importance of economic issues in the
Indian Economy.
To provide analytical skills to students for understanding an issue in terms of cause- effect.
To develop basic skill to understand various implications of an economic issue/ problems and
ability to think about solutions.

Course Outline:
Unit I : Development and Human Resources [12 Hours]
Meaning Of Underdevelopment and Major Issues Of Development- Determinants,
Characteristics Of Population In India – Size, Growth, Composition By Age/Sex/Rural-Urban,
Density, Quality Of Population- Literacy, Life Expectancy, Mortality Rate - Human Development
In India- Concepts And Measurements, Human Development Index, Progress Of Human
Development In India.
Unit II : Poverty and Unemployment [11 Hours]
Various Concepts of Poverty- Absolute and Relative Poverty, Capability Approach-
Measurement of Poverty Line- Population below Poverty Line, Poverty Eradication
Programmes-Success and Failures - Unemployment –Nature and Estimates, Structure of
Employment in India. Quality of Employment, Employment Policy in Recent Years, NREGA, etc.
Unit III : Planning and Economic Development [11 Hours]
Objectives and Strategy of Economic Planning In India, Development Strategy In India. Models
of Development – Assessment of Indian Planning- 1951-2008- Achievements and Failures.
Liberalization and Economic Reforms.
Unit IV : Economic Reforms and Issues [11 Hours]
Fiscal Policy Reforms and Issues - Monetary Policy Reforms and Issues - Sectoral Policy
Reforms relating to Trade, Industry, Banking, Infrastructure.

Modes of Transaction:
Course will be delivered through lectures. However, there will be class discussions on current
issues/developments, and assignments wherever necessary.
References [All Latest Editions wherever applicable]
1. Agarwal A. N. – Indian Economy – Wishwa Prakashan, New Delhi.
2. Dhingra I C (2006), The Indian Economy: Environment and Policy, Sultan Chand, New Delhi.
3. Dutt R and K P M Sundaram (2006) Indian Economy, S Chand & Company, Delhi.
4. India Development Report- Oxford University Press.
5. Misra S K and V K Puri (2006), Indian Economy- Its Development Experience, Publishing House,
Mumbai.
24
 B.A. ECONOMICS : SEMESTER IV
Allied 07 / 08
INDIAN ECONOMIC PROBLEMS
[Paper Code : AB4A07EC0N / AB4A08EC0N]
Objectives:
At the end of this course students will be able to:
Understand the important features of the Indian economy and its economic problems.
Analyse the economic problems in terms of cause - effect

Course Outline:
UNIT I : Development Issues & Population [12 Hours]
Characteristics of under development, - Planning in India: Objectives, achievements,
financing of plans, Investment pattern, - Theories of Population: Malthusian Theory,
Optimum Theory, Theory of Demographic Transition, Growth of population in India,
Applicability of demographic transition theory to India’s population growth.

UNIT II : Agriculture [12 Hours]

Place of Agriculture in the Indian economy - Land relations and land reforms - sub-division
and fragmentation of holdings, - consolidation of holdings, and ceiling on Land holding -
Need and sources of agricultural finance in India, - Green Revolution:- Meaning,
achievements and failures Recent developments in agriculture.

UNIT III : Industry [11 Hours]

Role of Industry in the Indian economic development, - Private sector and public sector,-
Industrial finance, Sources and types of Financial Institutions. - Industrial Policy
Resolution - 1956, New industrial policy of 1991 and the process of liberalization.

UNIT IV : Money, Prices and Public Finance [10 Hours]

Growth of money supply and changes in price level, - Causes and effects of inflation in
India, - Sources of revenue and types of government expenditure in India – Deficit
Financing in India.
Modes of Transaction:
Lecture methods will be generally followed, However, there will be Class discussion and
economic quiz for assessing the level of understanding the topics by the students, Audio Visual
aids will be used if available.
References [All Latest Editions wherever applicable]
1. Agarwal, A.N., Indian Economy, Vikas Publishing House Pvt.Ltd., New Delhi.
2. Dhingra I.C.,, The Indian Economy, Tata McGraw-Hill Publishing Company Ltd. Delhi.
3. Dutt, Rudar and K.P.M. Sundram, 2006, Indian Economy, S.Chand & Company, Delhi.
4. Misra and Puri, Indian Economy, Himalaya Publication House
25
 B.A. ECONOMICS : SEMESTER IV

Interdisciplinary Elective 05 / 06
GLOBAL ECONOMY
[Paper Code : AB4I05EC0N / AB4I06EC0N]

Objectives:

At the end of course students will be able to

Have clarity about various concepts and terms used in reports and other literature relating
to global economy.
Understand various aspects of global economy, particularly factors that contribute to
phenomenon of globalization and issues thereof.
Participate in the discussion and debates on events of global economy.

Course Outline:

Unit I : Introduction [12 Hours]

Concept of globalization, Free international trade and capital flows , trade surplus &
deficits , Current account balance ,Quotas, tariffs and subsidies Open Macroeconomics, -
GDP and GNP Multinational corporations and the World economy.

Unit II : International Economic Institutions [11 Hours]

World Trade Organization, World Bank, International Monetary Fund, United Nations
Development Program, UNCTAD, G7 / G8 countries. OECD, Regional Development Banks
(ADB etc.)

Unit III : International Financial Markets [11 Hours]

Exchange rate- meaning and types, Major world currencies, Free floating currencies, Euro
currencies and Euro bonds, Hedge fund ,and Venture capital.

Unit IV : Free Trade zones [11 Hours]

European Union, NAFTA, SAFTA, Economic sanctions, Immigrations, Tax heavens and
Other current global events of year.

Mode of transaction:
Course will be taught by lecture method and class discussion.
students will be given assignment and case studies on current topics.

References [All Latest Editions wherever applicable]

1. Randy Charles Epping, (2001) A beginner’s Guide to the World Economy, Viking Books.

26
 B.A. ECONOMICS : SEMESTER V
Core 09
PUBLIC FINANCE
[Paper Code : AB5C09EC0N]
Objectives:
At the end of this course students will be able to:
Understand how the theory of public finance is applied in the workings of government
finance and government budget.
Learn about the working of the Indian budgetary system.

Course Outline:
UNIT I : Introduction [11 Hours]
Meaning and scope of public finance; Distinction between private and public finance,
concepts of Public good, private goods, Merit goods, Public bad, Market failure and Role of
Government, The principal of maximum social advantage; Government Budget: Economic
and Functional Classification of budget; various types of budget.

UNIT II : Public Revenue [12 Hours]

Sources of Public Revenue, Taxation: Meaning, canons and types of taxes, effects of
taxation, Tax burden: Benefit theory and Ability to pay theory, characteristics of a good tax
system, Classification of taxes in India, Major taxes imposed and trends in Tax revenue of
Central and State Governments of India.

UNIT III : Public Expenditure and Public Borrowing [11 Hours]

Meaning, classification of public expenditure, Wagner’s law and Wiseman and Peacock
hypothesis related to government expenditure. Canons and Effects of public expenditure,
Growth in Public Expenditure in India: causes and trends. Public borrowing: Sources and
methods of debt redemption.

UNIT IV : State and Local government Finances [11 Hours]

Structure and trend in state government Finances, Rationale of local bodies, Institutional
structure and issues related to devolution of resources and functions of municipal bodies
and Panchayats.

Modes of Transaction:
Lecture methods supplemented by audio visual aids.
Impromptu quiz for assessing the level of understanding by the students
Class discussion.

27
 References [All Latest Editions wherever applicable]

1. Bernard P. Herber – Modern Public Finance Chapter – 1 – AITBS, Delhi – 5th edition
2. Bhatia H. L.: Public Finance – Vikas Publishing House Pvt. Ltd, New Delhi
3. Choudhry R. K. – Public Finance and Fiscal Policy – Kalyani Publishers, Delhi 2004
4. Hillman, A.L.: Public Finance and Public Policy, Chapter – 1 – Cambridge, New York 2003.
5. Holley Ulrich(2004): Public Finance in Theory and Practice Chap. 4 – Thomson N. Y.
6. Manker V. G. and Sarma S. L.: Public Finance : Theory and Practice – Himalaya Publishing
House
7. Mithani D. M. : Modern Public Finance: Theory and Practice - Himalaya Publishing House
8. Musgrave R. A and Musgrave P. B. , Public Finance Theory and Practice Chap-1 - McGraw
Hill Book Company
9. Musgrave R. A.: The Theory of Public Finance – McGraw Hill Book Company
10. Singh, S.K. : Public Finance in Theory & Practice, S. Chand & Co. 2004.

28
 B.A. ECONOMICS : SEMESTER V
Core 10
MACROECONOMICS – I
[Paper Code : AB5C10EC0N]

Objectives:
To introduce students to principles essential to an understanding of fundamental economic
problems and policy alternatives society may utilize to contend with these problems. This
course also aims at enabling the student to reason accurately and objectively about the
economic matters and to develop a sustained interest in Economics.

Course Outline:

UNIT I : Introduction; An Overview [11 Hours]

Nature and scope of Macroeconomics- Why study Macroeconomics? The Major
macroeconomic issues-Macroeconomic goals and instruments; Key macroeconomic
aggregates; Stocks and Flows; Indian economy vis-à-vis the world economy

UNIT II : National Income Analysis [12 Hours]

Circular flow of product and Income - Equilibrium level of income - concept and
measurement of national income; Nominal and Real income; Measured and PPP income;
Income and Human Development index; National income identities with government
international trade; National income and social welfare incorporation of environmental
concerns in national accounts- Green accounting - India's national income accounts and
sources of data on Indian Economy

UNIT III : The Classical Theory of Income Determination [11 Hours]

The classical Postulates; Say’s Law of Markets; Determination of output/income and
employment in classical System; Concept of Full Employment; Keynes' objection to the
classical theory; aggregate demand and aggregate supply functions; the Principle of
effective demand

UNIT IV : The Keynesian Theory Of Income Determination [11 Hours]

Consumption function -- Average and marginal propensity to consume; factors influencing
consumption spending; The investment multiplier and its effectiveness in LDCs; Theory of
investment - autonomous and induced investment; marginal efficiency of capital; savings
and investment ex post and ex ante, Equality and equilibrium.

29
Modes of Transaction:
The lecture method along with class discussion shall remain the main approach to learning
and interaction exercise. It will be supplemented by illustrations of technical
problems/theories/issues with application, Unit wise summaries, examples and sums and also
provision of Glossary explaining important Macroeconomic terms.

References [All Latest Editions wherever applicable]

1. Ackley, G. (1976), Macroeconomics : Theory and Policy, Macmillan Publishing Company,

New York.
2. Day, A.C.L. (1960), Outline of Monetary Economics, Oxford University Press, Oxford.
3. Gordon, R.J. (1998), Macroeconomics, Addison Wesley.
4. Gupta, S.B. (1994), Monetary Economics, S. Chand and Co. Delhi.
5. Gupta G.S. (2004) Macroeconomics-Theory and application, Tata McGraw –Hill
6. Heijdra, B.J. and F.V. Ploeg (2001), Foundations of Modern Macroeconomics, Oxford
University Press, Oxford.
7. Lewis, M.K. and P.D. Mizan (2000), Monetary Economics, Oxford University Press, New
Delhi.
8. Shapiro, E. (1996), Macroeconomic Analysis, Galgotia Publications, New Delhi.

30
 B.A. ECONOMICS : SEMESTER V
Core 11

INTERNATIONAL ECONOMICS – I
[Paper Code : AB5C11EC0N]
Objectives:
This course provides the students a thorough understanding and deep knowledge about the basic principles
that tend to govern the free flow of trade in goods and services of the global level. The contents prepare the
students to know the impact of free trade and tariff on the different sectors of the economy as well as at the
macro level.

Course Outline:
UNIT I : Theories of International Trade - I [11 Hours]
Importance of the study of international economics; Inter-regional and international trade:
Theories of absolute advantage, comparative advantage and opportunity cost; Theory of
comparative cost advantage extended to more than two commodities, theory of comparative cost
advantage in money terms.
UNIT II : Theories of International Trade – II [12 Hours]
Heckscher-Ohlin trade theory – its main features, assumptions and limitations – Leontief Paradox –
Modern Theories of Trade – Factor price equalization theorem (Traditional Approach) Trade based
on economies of scale, differential products, Technology Gap and product cycle model
UNIT III : Gains from Trade [11 Hours]
Gains from trade – Their measurement and distribution; Trade as an engine of economic growth:
immisserizing growth, Concepts of terms of trade and their importance in the theory of trade: -
offer curves.
UNIT IV : Theory of Optimum Tariff and Customs Union [11 Hours]
Types of tariffs and quotas; Their impact in partial equilibrium analysis; General Equilibrium
Analysis, Arguments for protective trade policy, concept of optimum tariff, Optimum Currency Area,
Regional Trading Blocs, Economic integration.
Modes of Transaction:
Lecture method is generally used but as and when required discussion method would be fruitful.
Activity assignments (i.e. practical numerical problems) may be given to the students and assignment
method would help them to learn by doing
Students may be given training by way of tutorials.
Power Point presentation may be used for delivering lectures
References [All Latest Editions wherever applicable]
1. Kenen, P.B.(1996), The International Economy, 3rd Edition, Cambridge University Press, London.
2. Krugman, P.R. and M. Obstgeld (1994), International Economics: Theory and Policy, Glenview,
Foresman.
3. Mannur, H. G. (1996), International Economics. Vikash Publishing, New Delhi.
4. Salvatore, D. (1997), International Economics, Prentice-Hall, Upper Saddle River, N.J.
5. Sodersten, Bo and G. Reed (1994), International Economics, Macmillan Press Ltd. Delhi.
6. Vaish, M.C. and Sudama Singh (2001), International Economics. Oxford and IBH Publishing Company,
New Delhi.
31
 B.A. ECONOMICS : SEMESTER V
Core 12
ECONOMICS OF GROWTH AND DEVELOPMENT
[Paper Code : AB5C12EC0N]

Objectives:
At the end of this course, the student,
will be able to understand the main concepts in economic growth and development
will be able to measure economic growth and economic development.
will be able to analyse the various models of economic growth from a historical
perspective.
will be able to define and analyse the nature of technical progress
will get a detailed understanding of the long-term processes of growth and development
including the social and institutional aspects
will be able to appreciate the increasingly important role of institutions in bringing about
growth and development.

Course Outline:

UNIT I : Models of Economic Growth [11 Hours]

Economic growth and development – Factors affecting economic growth : capital, labour
and technology – Growth models – Harrod-Domar – Neo-classical growth models – Solow
and Meade, Mrs. Joan Robinson's growth model – Technological progress – embodied and
disembodied technical progress; Hicks and Harrod neutral technical progress.

UNIT II : Economic Development: Social and Institutional Aspects [12 Hours]

Human Capital and human resource development: Meaning, measurement and importance
– Role of Education in Economic Growth – determinants of demand for education –
educational planning in developing economies – health and health care – determinants of
health – supply of and demand for health care – role of institutions in economic
development: markets and market failure, state and state failure, issue of good governance.

UNIT III : Theories of and Approaches to Economic Development [11 hours]

Classical theory of development – Karl Marx in the theory of development : Theory of
Surplus Value – Crisis in Capitalism – Schumpeter and capitalistic development – Partial
theories of growth and development – Vicious circle of poverty, circular causation,
unlimited supply of labour, big push, balanced growth, unbalanced growth.

UNIT IV : External Sector in Growth & Development [11 Hours]

International trade as engine of growth – Trade Policies : Import-substitution and Export-

led growth – domestic demand-led growth – Dual gap analysis – Balance of payments –
Foreign Direct Investment – International Development Institutions.

32
Modes of Transaction:
The major part of the course work will be taught by the lecture method but wherever
necessary, discussion on different practical issues will also be employed.
Some portion of the course work would be given to students in the form of assignments.
Audio-visual aids in terms of PowerPoint presentations of assignments by students would
be encouraged. Teachers will also be encouraged to use such audio-visual aids in
explaining certain concepts.
Wherever feasible, students may be taken on field trips to gather data as well as observe
the working of the economy.

References [All Latest Editions wherever applicable]

1. Adelman, I (1961), Theories of Economic Growth and Development, Stanford University

Press, Stanford.
2. Ghatak, S. (1986), An Introduction to Development Economics, Allen and Unwin, London.
3. Human Development Report, Published for the United Nations Development Programme
(UNDP), Delhi – Oxford University Press, Bombay, Calcutta, Madras.
4. Meier, G. M. (1995), Leading Issues in Economic Development, (6th Edition), Oxford
University Press, New Delhi.
5. Taneja, M.L. and Myer, R.M. – Economics of Development and Planning, Vishal Pub. Co.
6. Thirlwal, A.P. (1999), (6th Edition), Growth and Development, McMillan, London.

33
 B.A. ECONOMICS : SEMESTER V
Core 13
HISTORY OF ECONOMIC THOUGHT
[Paper Code : AB5C13EC0N]
Objectives:
At the end of this course:
The student will grasp the importance of the historical emergence of economic thought.
The student will appreciate the contribution of various thinkers to economic thought.
The historical context of economic theories will be evaluated and understood.
Course Outline:
UNIT I : Ancient & Pre-Classical Economic Thought [11 Hours]
Ancient Economic Thought- Greek and Indian views-Medieval Thought – Mercantilism
Physiocrats.
UNIT II : Classical Economic Thought [14 Hours]
Adam Smith: Natural order, Division of labour, Value, trade, taxation and Laissez-faire;
aspects of distribution and an evaluation of Adam Smith as a social thinker-David Ricardo:
The blooming of capitalism, Theory value and its modifications, rent wages and Stationary
state, Comparative advantage and international trade; views on machinery and
unemployment-T.R. Malthus: Theory of population; views on gluts in the capitalist system,
controversy with Ricardo-J.B. Say: Say’s Law of Market. Bentham, Senior, Mill.
UNIT III : Socialist Economic Thought [10 Hours]
Karl Marx and Socialism, Surplus, Value & Surplus Value, Labour and Industrial Reserve
Army, Organic composition of capital, Technical Progress and the basic contradiction of the
capitalist system.
UNIT IV : Marginalist Economic Thought [10 Hours]
Marginalist Forerunners-Cournot, Dupuit, von Thunen-Jevons, Menger, Von Weiser, Bohm-
Bawerk; Edgeworth and Clark.
Modes of Transaction:
Lecture presentations and discussion methods.
Exploration of historical context should be given as short assignments.
Biographical reading given as selective readings.
References [All Latest Editions wherever applicable]
1. Backhouse, R. A: History of Modern Economic Analysis, Basil Blackwell, Oxford. 1985.
2. Hajela, T.N.: History of Economic Thought, Ane Books, India.
3. Hunt, E.K.: History of Economic Thought, A Critical Perspective. M.E. Sharpe; 2 edition
(September 2002)
4. Roll, E: A History of Economics Thought, Faber, London.1973.
5. Schumpeter, J.A.: History of Economic Analysis, Oxford University Press, New York.1954.
6. Stanley L. Brue :The Evolution of Economic Thought, The Dryden Press Sixth Edition (2000)

34
 B.A. ECONOMICS : SEMESTER V
Core 14(a)
AGRICULTURAL ECONOMICS
[Paper Code : AB5C14EC0N]

Objectives:
The student will be able to understand the theoretical concept and its relation with Indian
agriculture. This will be able to establish the relation between input-output and allied
activities. The student will be familiar with complex problems of Indian agriculture

Course Outline:

UNIT I : Agriculture and It’s Role [11 Hours]

Nature and scope of agricultural and rural economics; Role and importance of agriculture
in Economic Development; Traditional agriculture and it’s modernization; Diversification
of agriculture and allied activities; Interdependence between agriculture and industry.

UNIT II : Agricultural Production and Productivity [11 Hours]

Agriculture Production: Main Factors determining Cropping Pattern in India; Irrigation in

India; Trends in agricultural growth and agricultural productivity; Causes of Low
Productivity and remedial measures.

UNIT III : Agricultural Labour and Land Reforms [11 Hours]

Land Tenure system and Land Reforms; Agricultural Labour and its classification –
Features and problems of Agricultural Labour. Measures adopted by Government.

UNIT IV : Agricultural Pricing Finance and Marketing [12 Hours]

Agricultural Finance - Institutional and Non- Institutional Sources; Agricultural prices;

Agricultural Marketing – Importance – Present System – Problems and Government
measures.

Modes of Transaction:
Lecture method is generally used but along with it, as and, when required,
discussion method would be fruitful. It may be supplemented with various
appropriate audio-visual aids.
Activity assignments (i.e. practical numerical problems) may be given to the
students and assignment methods would help them to learn by doing.
Students may prepare a theme paper on selected units and present the same in
small groups.

35
References [All Latest Editions wherever applicable]

1. Agrawal A.N., Indian Economy Problems of Development and Planning, Wishwa

Prakashan, New Delhi
2. Desai Pranav K. (2010) – Agricultural Economics, Biotech Books, New Delhi
3. Desai S.S.M., Agriculture and Rural Banking in India, Himalaya Publishing House,
Mumbai
4. Dutt, Ruddar and K. P. M. Sundaram: Indian Economy, S. Chand and Company Ltd, Delhi
5. I. Sundar L: (2009) Principles of Agricultural Economics, Sarap Book Publisher – New
Delhi
6. Sadhu A. N. and Singh Amarjit (2004): Fundamental of Agricultural Economics, Himalaya
Publishing House.
7. Sadhu, A.N. and J. Singh (2000), Agricultural Problems in India, (3rd edition), Himalaya
Publishing House, Mumbai.

36
 B.A. ECONOMICS : SEMESTER V
Core 14(b)
BASIC MATHEMATICAL ECONOMICS
[Paper Code : AB5C14EC0N]

Objectives:
At the end of the course students will be able to
Describe the concepts and objectives of study of Mathematical Economics
Formulate economic theory (Micro & Macro) in Mathematical Framework.
Enhance their understating of economic theory with a greater degree of precision.
Explain economic theory with examples from real life.
Throw light on inter-relationships among economic variable and provide an economic
framework for empirical verification of theories.

Course Outline:

UNIT I : Quantitative Methods [11 Hours]

Variable, constants and parameters, functional relationship - Introduction to differential

and integral calculus; Matrix and determinants; Solution of simultaneous equations;
Quadratic equations;

UNIT II : Mathematical Applications - 1 [13 Hours]

Utility function; budget line; constrained optimization; Consumer’s equilibrium; Income

effect; substitution effect and price effect; Slutsky equation; Derivation of demand curve;
Elasticity of demand; Consumer’s surplus. Properties of production function –
Homogeneous and non-homogeneous; Cobb-Douglas, Returns to scale; Choice of optimal
combination of factors of production; Cost and revenue analysis; Producer’s Surplus.

UNIT III : Mathematical Applications - 2 [10 Hours]

Concept of equilibrium; Equilibrium of the firm under perfect competition monopoly, price
discrimination, monopolistic competition, Duopoly, Oligopoly, effects of subsidies and taxes
on market.

UNIT IV : Input-Output Analysis & Linear Programming [11 Hours]

Input-Output analysis; The simple closed and open model; Linkages, concepts and
measurements, Dynamic input-output model; Linear programming – Basic concepts, primal
and dual; Basic theorem of linear programming; Graphic and simplex method.

37
Modes of Transaction:
Lecture method is generally used but along with it as and when required discussion method
would be fruitful.
Activity assignments (i.e. practical numerical problems) may be given to the students and
assignment method would help them to learn by doing
Students may be given training by use of computer.
Power Point presentation may be used for delivering lectures

References [All Latest Editions wherever applicable]

1. Allen R.G.D. (1974), Mathematical Analysis for Economists, Macmillan Press,

2. Chiang A.C. and K. Wainwright, (2005), Fundamental Methods of Mathematical
Economics (3rd Edition), Hill, New Delhi.
3. Hands, D.W. (1991), Introductory Mathematical Economics, D.C. Heath.
4. Handy, S.T. (1997), Operations Research, Prentice-Hall of India, New Delhi.
5. Henderson, J. and R.E. Quandt (1980), Microeconomic Theory : A Mathematical
Approach, MacGraw Hill, New Delhi.
6. Mukherji, B. and V. Pandit (1982), Mathematical Method of Economic analysis, Allied
Publishers, New Delhi.

38
 B.A. ECONOMICS : SEMESTER V
Interdisciplinary Elective 07
INDIAN FINANCIAL SYSTEM
[Paper Code : AB5I07EC0N]
Objectives:
To familiarize with working and importance of financial and banking sector in the Indian
economy.
To provide analytical skills to students for understanding the market structure, segments of
financial services and trends in financial sector.
To learn the importance of financial regulation and various types of regulations.
Course Outline:
UNIT I : Commercial Banking [12 Hours]
Importance of Financial System in India; Functions, types and objectives of commercial banks; The
process of credit creation; Liabilities and assets of banks; role of Commercial bank before and after
nationalization in economic development in India.
UNIT II : Financial Regulation and Promotion [10 Hours]
RBI’s Banking Regulation and its other Promotional Function – Foreign Exchange Management Act
FEMA 2000 - Functions of SEBI and its regulation of Capital Markets and its intermediaries,
Insurance Regulatory and Development Agency (IRDA) objectives and functions.
UNIT III : Financial Markets [12 Hours]
The structure of Financial markets - Money Market and Capital Market - Call money, treasury bills
and Commercial Bills; The Corporate Bonds; The Stock markets and market for gilt edged securities
(Govt. Bonds); Derivatives; Financial Sector Reforms in India; Financial Services, and Insurance.
UNIT IV : Foreign Exchange Markets [11 Hours]
Foreign exchange; Foreign exchange rate, Foreign exchange market --- concepts of spot exchange
rates and forward exchange rates; Determination of exchange rates under fixed and flexible
exchange rate regime and role of hedging in the determination of exchange rates; foreign exchange
derivatives, Euro-dollar market - role and significance.
Mode of Transaction:
Course will be delivered through lectures. However, there will be class discussions on recent
developments, practical exercises on numerical problems and assignments.
References (All Latest Editions wherever applicable)
1. Bhole, L. M. (2006) - Financial Institutions and Markets- Structure, Growth and Innovations, Tata
McGraw Hill Publishing Company Ltd (Units I, II & III and IV)
2. Gupta, S.B. (1983) - Monetary Economics, S. Chand & Co., New Delhi.
3. Khan M Y (latest edition) - Indian Financial System, Tata McGraw Hill (Unit I, II, IV)
4. Mishkin Frederic S. and Stanley G. Eakins,(2010) - Financial Markets and Institutions, Pearson
Education.
5. Pathak Bharati V. (latest edition) - The Indian Financial System , Pearson Education ( Unit I, II, III)
6. Shah Ajay, Susan Thomas, Michael Gorham, (2009) - India’s Financial Markets, Elsevier, Noida, UP.

39
 B.A. ECONOMICS : SEMESTER VI
Core 15
ECONOMIC PLANNING IN INDIA
[Paper Code : AB6C15EC0N]

Objectives:
At the end of the course students will be able to
have an insight into the basics of planning system
analyze the performance of Indian Five year plans
understand the instruments of planning and how the Indian Government devolves the
financial powers to the Centre and the States to implement the objectives of the Five year
plans.

Course Outline:

UNIT I : Market Failure and Role of Government [12 Hours]

Problem of Resource allocation, limitations of market mechanism, Need for State
intervention and emergence of Planning, Nature and types of planning under Capitalism,
Socialism and Mixed economy system

UNIT II : Five Year Plans [10 Hours]

Planning models (II & III Plan models), Five Year Plans in India, objectives, sources of
financing, performance and critical appraisal.

UNIT III : Resource Mobilization and Distribution [12 Hours]

Sources of resource mobilization, Deficit financing in India, Concepts of deficits, Principles
and Issues in fiscal federalism, Centre – State Financial Relations in India, Role of Finance
Commission for resource transfer at different levels of governments.

UNIT IV : Planning and Public Policy [11 Hours]

Changing role of government and planning, Role of planning commission, Privatization and
Liberalization, Monetary Policy and Fiscal Policy: Objectives and instruments, Recent
measures undertaken with respect to taxes and management of government expenditure.

Modes of Transaction:
Lecture methods supplemented by audio visual aids .
Quiz for assessing the level of understanding by the students
Class discussion.

40
References [All Latest Editions wherever applicable]
1. Brahmananda P. R. and Panchmukhi V. R. [eds] : The Development Process of the Indian
Economy, Himalaya Publishing House, Bombay, 1987.
2. Chakravarty S. : Development Planning : The Indian Experience, Clarendon Press,
Oxford, latest edition
3. Dhingra I. C. : The Indian Economy, Sultan Chand and Co. New Delhi, latest edition
4. Ghosh A. and Ghosh S. K. : Planning Techniques and Indian Plans, Wheeler A. H. and Co.
Allahabad.
5. Jhingan M. L. The Economics of Development and Planning, Vikas, Latest edition.
6. Misra, S. K. and Puri V. K. : Indian Economy, Himalaya Publishing Co. Bombay, latest
edition
7. Misra, S. K. and Puri V. K.: Development and Planning : Theory and Practice, Himalaya
Publishing House, Bombay, latest edition.
8. Ruddar Dutt and K.P.M. Sundaram: Indian Economy - latest edition
9. Seth M. L. : Theory and Practice of Economic Planning, S. Chand and Co. [Pvt.] Ltd., latest
edition

41
 B.A. ECONOMICS : SEMESTER VI
Core 16
MACROECONOMICS – II
[Paper Code : AB6C16EC0N]

Objectives:
To introduce students to principles essential to the understanding of fundamental economic
problems and the policy alternatives society may utilize to contend with these problems. This
course also aims at enabling the student to reason accurately and objectively about economic
matters and to develop a sustained interest in Economics.

Course Outline:

UNIT I : Rate of Interest [12 Hours]

Concept of Money and Finance- Time Preference - Present value and future value- concept
of interest rate- Gross interest and Net interest- Nominal interest rate and Real rate of
interest - relationship between interest rate and bond prices- Classical, Neo-classical and
Keynesian theories of interest rate determination- Interest rates and Monetary policy.

UNIT II : The Classical and Keynesian Synthesis [11 Hours]

Goods Market and Asset Market-The IS Curve; Points on and off the IS curve; The LM Curve;
Points on and off the LM curve; Determination of income and interest –Integrated Model.

UNIT III : Determination of Aggregate price level and the problem of Inflation
[11 Hours]

Aggregate Demand and Aggregate Supply-Classical case of full wage price flexibility-
Keynesian case Of wage price rigidity-Keynesian case of aggregate supply - Inflation :
Definition ;Causes, and types- short run and long run Philips curve-Implications for
Macroeconomic Policies, Concepts of Wholesale price index, Consumer Price Index and
GDP deflator.

UNIT IV : Business Cycles & Stabilization Policies [11 Hours]

Fluctuations in national income- nature and characteristics of trade cycles - Sources of
instability in the private sector - Hawtrey's monetary theory; Hayek's over-investment
theory- Keynes' views on trade cycle - The concept of Accelerator - Samuelson -
Stabilization Policies.

42
Modes of Transaction:
The lecture method along with class discussion shall remain the main approach to learning
and interaction exercise. It will be supplemented by illustrations of technical
problems/theories/issues with application, Unit wise summaries, examples and sums and also
provision of Glossary explaining important macro economics terms.

References [All Latest Editions wherever applicable]

1. Ackley, G. (1976), Macroeconomics: Theory and Policy, Macmillan Publishing Company,

New York.
2. Day, A.C.L. (1960), Outline of Monetary Economics, Oxford University Press, Oxford.
3. Gordon, R.J. (1998), Macroeconomics, Addison Wesley.
4. Gupta, S.B. (1994), Monetary Economics, S. Chand and Co. Delhi.
5. Gupta G.S. (2004) Macroeconomics-Theory and application, Tata McGraw –Hill
6. Heijdra, B.J. and F.V. Ploeg (2001), Foundations of Modern Macroeconomics, Oxford
University Press, Oxford.
7. Lewis, M.K. and P.D. Mizan (2000), Monetary Economics, Oxford University Press, New
Delhi.
8. Shapiro, E. (1996), Macroeconomic Analysis, Galgotia Publications, New Delhi.

43
 B.A. ECONOMICS : SEMESTER VI
Core 17
INTERNATIONAL ECONOMICS – II
[Paper Code : AB6C17EC0N]
Objectives:
This course provides the students a thorough understanding and deep knowledge about the basic
principles that tend to govern the free flow of trade in goods and services of the global level. The
contents prepare the students to know the impact of free trade and tariff on the different sectors of the
economy as well as at the macro level.

Course Outline:

UNIT I : Balance of Trade and Balance of Payments [12 Hours]

Concepts and components of balance of trade and balance of payments; equilibrium and
disequilibrium in balance of payments; Consequences of disequilibrium in balance of
payments; Various measures to correct deficit in the balance of payments; Relative merits,
demerits, Concept and implications of foreign trade multiplier;

UNIT II : Foreign Exchange Rates [12 Hours]

Functions of Foreign Exchange markets, - Foreign Exchange Rates – Arbitrage, spot and
Forward Rate, Foreign Exchange futures and options, Hedging, Speculation Exchange Rate
Theories – Purchasing Power Parity, Interest Parity theorem, Fixed vs Flexible exchange
rate systems, system of Managed Flexibility

UNIT III : International Economic Institutions [10 Hours]

Objectives, Membership & Subscription of IMF, various clauses of IMF, functions of World
Bank and GATT / WTO, Reforms of International Monetary System and India, UNCTAD.

UNIT IV : Foreign Trade and Commercial Policy in India [11 Hours]

Recent changes in the composition and direction of foreign trade; Causes and effects of
persistent deficit in the balance of payments; Measures adopted by the government to
correct the deficit before and after 1991; Need for and rationale of trade reforms in India
(including partial and full convertibility of rupee); Instruments of export promotion and
recent export and import policies in India; Role of multinational corporations in India.

Modes of Transaction:
Lecture method is generally used but along with it as and when required discussion method would
be fruitful.
Activity assignments (i.e. practical numerical problems) may be given to the students and
assignment method would help them to learn by doing
Students may be given training by way of tutorials.
Power Point presentation may be used for delivering lectures

44
References [All Latest Editions wherever applicable]

1. Mannur, H.G. (1996), International Economics. Vikash Publishing, New Delhi.

2. Kenen, P.B. (1996), The International Economy, 3rd Edition, Cambridge University Press,
London.
3. Krugman, P.R. and M. Obstfeld (1994), International Economics : Theory and Policy,
Glenview, Foresman.
4. Vaish, M.C. and Sudama Singh (2001), International Economics. Oxford and IBH
Publishing Company, New Delhi.
5. Salvatore, D. (1997), International Economics, Prentice-Hall, Upper Saddle River, N.J.
6. Sodersten, Bo and G. Reed (1994), International Economics, Macmillan Press Ltd. Delhi.

45
 B.A. ECONOMICS : SEMESTER VI
Core 18
INDUSTRIAL ECONOMICS
[Paper Code : AB6C18EC0N]
Objectives:
At the end of the course students will be able to
Develop conceptual clarity of various important topics in Industrial Economics.
Understand practical problems in Industrial Economics.
Grasp Industrial Policy matters.
Course Outline:
UNIT I : Introduction [11 Hours]
Industry and economic development; Industry and sectoral linkages; Industrial classification and
data information. Industrial structure at the time of Independence; Changing industrial structure
and industrial growth.

UNIT II : Industrial Organization, Ownership Structure [10 Hours]

Public sector, private sector, MNCs and their role; Industrial competition and monopoly,
Privatisation and Disinvestment - impact on structure.

UNIT III : Productivity, Pricing of Industrial Products & Financing of Industry

[12 Hours]
Industrial pricing and market structure; Pricing in India. Mode of financing – Equity and debt;
Institutional Finance; Bank finance. Concept and measurement of productivity – Productivity in
Indian industries; Industrial efficiency & Productivity.

UNIT IV : Issues in Industrial Growth [12 Hours]

Large and Medium Industries, Small scale industries; Small enterprise policy, Cottage and village
industries – emerging global competition and Indian industry. Exit policy, Industrial sickness,
balanced industrial development - Dispersion and Problem of regional imbalance.
Modes of Transaction:
Lecture and discussion method
Reference readings of original works
Assignments
References [All Latest Editions wherever applicable]
1. Barthwal, R.R., Industrial Economics: An Introductory Text Book, Wiley Eastern Ltd., New
Delhi.
2. Cherunilam, F., Industrial Economics: Indian Perspective (3rd Edition), Himalaya Publishing
House, Mumbai.
3. Desai, B. (1999), Industrial Economy in India (3rd Edition), Himalaya Publishing House,
Mumbai.
4. J. C. Sandesara (1992), Industrial Policy and Planning 1947 - 1991, Sage Publication, New
Delhi.
5. Singh, A. and A.N. Sadhu (1988), Industrial Economics, Himalaya Publishing House, Bombay.
46
 B.A. ECONOMICS : SEMESTER VI
Core 19
BANKING AND FINANCIAL MARKETS
[Paper Code : AB6C19EC0N]

Objectives:
To familiarize with working and importance of financial and banking sector in the Indian
economy.
To provide analytical skills to students for understanding the market structure, valuation
of financial assets and trends in financial sector.
To learn the technique of estimating risk, return, price associated with financial assets.

Course Outline:

UNIT I : Banking [07 Hours]

Functions and types of banks, definition and objectives of commercial banks; Liabilities and
assets of banks; the process of credit creation; Regulation of Banks and banking reforms,
Role of banks in monetary policy.

UNIT II : Financial Markets [15 Hours]

Financial markets-Money market and capital market; Features of developed money and
capital market; Importance of Financial System in India;, The structure of Financial markets
--- Call money, treasury bills, Commercial Bills, Commercial Papers and Discount Market;
The Stock market and market for gilt edged securities; Financial Sector Reforms in India;
SEBI and Working of Capital Markets in India. Non -Bank financial Intermediaries- Mutual
Funds and insurance companies.

UNIT III : The Valuation of Financial Assets [11 Hours]

Time value of money, Risk and Return, Valuation of debt instruments and valuing stocks
and other assets , Capital asset pricing model (CAPM) and Arbitrage pricing theory (APT).

UNIT IV : Foreign Exchange Markets [12 Hours]

Foreign exchange; Foreign exchange rate, Foreign exchange market --- concepts of spot
exchange rates and forward exchange rates- Hedging of exchange rate risk - Determination
of exchange rates under fixed and flexible exchange rate regime –currency convertibility.
Role of Foreign direct investment (FDI) and Foreign financial institutions (FIIs) - capital
flows and their significance and impact; Euro-dollar market - its role and significance.

Mode of Transaction:
Course will be delivered through lectures. However, there will be class discussions on recent
developments, practical exercises on numerical problems and assignments.

47
References [All Latest Editions wherever applicable]

1. Bhole, L. M. (2006), Financial Institutions and Markets- Structure, Growth and

Innovations, Tata MacGraw Hill Publishing Company Ltd (Units I, II & III)
2. Chandra Prasanna, (2000) Financial Management- theory and Practice Tata MacGraw
Hill (Unit III)
3. Gupta, S.B. (1983), Monetary Economics, S. Chand & Co., New Delhi. ( Unit I)
4. Khan M Y (latest edition), Indian Financial System, Tata Macgraw Hill (Unit I, II, IV)
5. Mishkin Frederic S. and Stanley G. Eakins,(2010), Financial Markets and Institutions,
Pearson Educatoon.
6. Pathak Bharati V. (latest edition) The Indian Financial System , Pearson Education (Units
I and II)

48
 B.A. ECONOMICS : SEMESTER VI
Core 20(a)
ENVIRONMENTAL AND NATURAL RESOURCE ECONOMICS
[Paper Code : AB6C20EC0N]
Objectives:
To provide an overview of the theoretical principles, policy instruments, and current
practice of using economics in understanding environmental problems.
To understand the market system, the externalities causing market failure, and the
mechanisms to correct for externalities.
To understand the basics of cost-benefit analysis and the problems associated with their
measurements.
To apply economic tools for evaluating environmental policies.
To analyze economic incentives that lead to environmental improvement or degradation.
To understand the legal institutions responsible for environmental protection.
To analyse and understand effective natural resource management practices.

Course Outline:

UNIT I : Basic Principles in Environmental Economics [11 hours]

Welfare foundations – Pareto Optimality – efficiency in production and consumption –
issues in allocation of environmental resources : externalities, public goods, missing
markets, imperfect markets, market failure, common property resources, transaction costs
(Coase Theorem), Property Rights.

UNIT II : Valuing the Environment [11 Hours]

Environment-economy linkages – Causes and effects of environmental degradation –
Concept of value – Use values; Option values and non-use values – problem of consumer
preference revelation – Measurement of Environmental Values : Valuation methods –
Methods based on observed market behaviour; Hedonic property values and household
production models (travel cost method) –hypothetical markets – contingent valuation
method.

UNIT III : Instruments of & Legislation for Environmental Protection [11 Hours]
Criteria for and classification of control instruments, cost-effectiveness – Command and
control vs. market-based instruments, their merits and demerits – Legal institutions and
instruments – system and policy in India – Legislation, standards and enforcement

UNIT IV : Natural Resource Economics [12 Hours]

Natural resource categories – theory of optimal extraction of a non-renewable resource
(Mineral economics), sustainability issues, resource discovery, backstop technologies –
economics of Fishery – bionomic model of fishery, effort-yield function, efficient rates of
effort, fisheries management – Social Forestry – Joint Forest Management – Energy use and
impact on health and natural resources.
49
Modes of Transaction:
The major part of the course work will be taught by the lecture method but wherever
necessary, discussion on different practical issues will also be employed.
Some portion of the course work would be given to students in the form of assignments.
Audio-visual aids in terms of PowerPoint presentations of assignments by students would
be encouraged. Teachers will also be encouraged to use such audio-visual aids in
explaining certain concepts.
Wherever feasible, students may be taken on field trips to gather data as well as observe
the working of the economy.

References [All Latest Editions wherever applicable]:

1. Ahuja, H.L. – Advanced Microeconomic Theory, S. Chand Publication, New Delhi

2. Bhattacharya, R.N. (Ed.) (2001), Environmental Economics: An Indian Perspective,
Oxford University Press, New Delhi.
3. Field, Barry (2008) – Natural Resource Economics: An Introduction (second edition),
4. George K. D. and Shorey John (1978) – The Allocation of Resources, London, George Allen
and Unwin Ltd.
5. Kolstad, C.D. (2000), Environmental Economics, Oxford University Press, Oxford.
6. Perman, R. et. al. (1999) – Natural Resource and Environmental Economics, Longman,
Pearson Education Ltd.
7. Tietenberg, Tom (1998), Environmental Economics And Policy, California, Addison
Wesley.
8. Tietenberg, Tom (2004), Environmental And Natural Resource Economics, Pearson
Education Ltd. New Delhi.
Waveland Press.

50
 B.A. ECONOMICS : SEMESTER VI
Core 20(b)
BASIC ECONOMETRIC METHODS
[Paper Code : AB6C20EC0N]

Objectives:
To introduce students to econometric methods and their applications.

Course Outline:

UNIT I : Single Equation Regression model- Estimation [12 Hours]

Definition and scope of Econometrics, Ordinary Least Squares method – Bi-variate and
Multiple Regression, Assumptions of OLS, Derivation of the formula through OLS,
Properties of OLS estimators, Matrix approach.

UNIT II : Single Equation Regression Model- Testing of Hypotheses [11 Hours]

Binomial and Normal distributions, Hypothesis testing Type I and Type II errors, Use of t
and F tests in testing various Hypotheses.

UNIT III : Econometric Problems [10 Hours]

Problems of multicolinearity, Auto correlation and Heteroscedasticity – consequences
detection and remedies.

UNIT IV : Econometric Models [12 Hours]

Autoregressive and distributed lag models – Dummy Variable regression models (Dummy
independent variable) Model selection – Introduction to Panel data regression model.

Modes of Transaction:
Lecture method is generally used but along with it as and when required discussion method
would be fruitful.
Activity assignments (i.e. practical numerical problems) may be given to the students and
assignment method would help them to learn by doing
Students may be given training by way of computers software.
Power Point presentation may be used for delivering lectures

References [All Latest Editions wherever applicable]

1. Gujarati, D. (1995), Basic Econometrics, (3rd Edition), McGraw Hill, New Delhi.
2. Gujarati, D. Elements of Econometrics, McGraw Hill, New Delhi.
3. Johnston, J. (1985). Econometric Methods, McGraw Hill, New York.
4. Kmenta, J. (1997), Elements of Econometrics, Michigan Press, New Delhi.
5. Koutsoyiannis, A., Theory of Econometrics, The Macmillan Press, Hampshire.
6. Maddala, G.S. (1993), Econometrics – An Introduction, McGraw-Hill, New York.
51
 B.A. ECONOMICS : SEMESTER VI
Interdisciplinary Elective 08
ECONOMICS OF SOCIAL ISSUES
[Paper Code : AB6I08EC0N]
Objectives:
At the end of this course, the student,
will be able to develop a deeper understanding of social issues relevant to economics.
will gain insight into the concept and relevance of social capital.
will get a broader understanding of the economics of health and education.
will be able to appreciate the increasingly important role of social capital and institutions
in bringing about growth and development.
will be able to appreciate the importance of good governance in promoting social well-
being.

Course Outline:

Unit I : An Overview of Economic and Social Issues [11 hours]

Definition and subject matter of economics – the concept of economic scarcity – economic
systems – problem of resource allocation – social issues relevant to economics – poverty,
unemployment, education, health, government, environment and social well-being.

Unit II : Social Capital, Economy and Social Well-Being [11 hours]

Concept of social capital – social capital and other types of capital – social capital and
insights into society and well being – sources of social capital – link between social capital
and economic performance.

Unit III : Social Sector Issues – Education and Health [13 hours]

Education and health : similarities and differences – determinants of demand for education
– approaches to educational planning – contribution of education to economic growth –
education and labor market – issues in educational development in India – Economic
dimensions of health – determinants of health – supply of and demand for health care –
health financing – measurement of health, health indices – issues in health development in
India

Unit IV : Institutions and Governance [10 hours]

Role of institutions in economic development – types of institutions – issues in good

governance – indicators of good governance – government failure – governance and
institutions – government policies/programs to address social development – Indian
perspective

52
Modes of Transaction:

The major part of the course work will be taught by the lecture method but wherever
necessary, discussion on different practical issues will also be employed.
Some portion of the course work would be given to students in the form of assignments.
Audio-visual aids in terms of PowerPoint presentations of assignments by students would
be encouraged. Teachers will also be encouraged to use such audio-visual aids in
explaining certain concepts.
Wherever feasible, students may be taken on field trips to gather data as well as observe
the working of the economy.

References (All Latest Editions wherever applicable)

1. Australian Bureau of Statistics (2002) – Social Capital and Social Well-being,

Commonwealth of Australia.
2. Helliwal, John (2001) – Social Capital, the Economy and Well-being, Centre for the Study
of Living Standards, Canada.
3. Helliwal, John (2005) – Well-Being, Social Capital and Public Policy: What’s New?,
Research Paper presented at the Royal Economic Society.
4. Journal of Political Economy : Investment in Human Beings (1962) – Supplement
Edition, Vol. LXX, No.5, Part 2, October
5. Kutty, V. Raman (1999) – A Primer of Health Systems Economics, Allied Publishers, New
Delhi
6. Lekhi, R.K. (1999) – The Economics of Development and Planning, Kalyani Publishers,
New Delhi
7. Sharp, A., C. Register and P. Grimes (2009) – Economics of Social Issues, Tata McGraw
Hill, 19th edition. [previous editions may also be referred]
8. United Nations Research Institute for Social Development (2003) – Social Policy and
Well-being, Geneva
9. Winkelmann, Rainer (2006) – Unemployment, Social Capital and Subjective Well-being,
Discussion Paper 2346, University of Zurich
10. World Trade Report (2004) – Governance and Institutions
11. World Bank (2000) – Reforming public Institutions and Strengthening Governance,
Policy Sector Group

53