SYLLABUS I SEMESTER

EC.109-MICRO ECONOMICS

COURSE OBJECTIVES

To make students aware of the basic economic concepts and theories of economics

To develop among students the ability to understand and appreciate the economic

theories and their application in real economic life.

MODULE I –INTRODUCTION TO MICRO ECONOMCIS (10 HRS)

Basic problems of choice of production and consumption (3). Role of price mechanism in

market, and mixed economies (3). Micro economics, Branches of Micro economics (2)

Merits and limitations of Micro economics (1) Positive and Normative Economics, inductive

and deductive methods (1).

MODULE II –THEORY OF CONSUMER BEHAVIOR (20 HOURS)

Cardinal Utility analysis– Law of Diminishing marginal utility (1) Law of Equi- marginal

Utility (3)Marshallian Consumer’s surplus(1) Law of Demand(2)Changes in demand(1)

Elasticity of demand - types of elasticity of demand(3)Methods of calculating elasticity of

demand(2)Factors determining elasticity of demand and practical importance of the

concept(2). Hicksian Ordinal Utility Analysis–Indifference Curves– Meaning, Properties,

Consumer’s equilibrium-Income effect- Price effect –substitution effect (9).

MODULE III – THEORY OF PRODUCTION (14 HOURS)

Law of variable proportions (1)Law of Returns to Scale – internal and external economies of

scale(3) production function -Isoquants (2) Cost concepts(1)TFC, TVC, TC, AC,MC- Short

run and long run analysis(4),Opportunity cost, Isocosts(1) . Revenue concepts – TR ,AR,MR

under perfect and imperfect markets (3)Supply- Law of supply- Changes in

supply(2)MODULE IV THEORY OF PRODUCT PRICING (25 HOURS )

Theory of equilibrium of the firm and industry(2) Perfect Competition–Price and Output

determination (3)role of time element (2).Monopoly– features- price and output

determination(3)Price discrimination(1)Monopolistic Competition- features –Product and

output determination, wastes of Monopolistic Competition ( 3)product differentiation –

selling cost – advertisements(2)features of oligopoly(2). Collusive and leadership

oligopoly(1).

MODULE V– THEORY OF FACTOR PRICING (18 HOURS)

Nature of Factor Markets (1) Pricing of Factors of Factors of Production – The Marginal

Productivity Theory(3)Rent Theories–Ricardo and Modern(3)Theories of Wages-

subsistence ,modern theory (2) , Wage differential(1)collective bargaining(1) Interest-

Classical, loanable funds theory (2), Keynesian (2).Profit –Risk(1) , Uncertainty(1) Dynamic

and Innovation(1).

Books recommended (I &II Semester)

1. Samuelson P.A - Economics

2. Lipsey R.G – An Introduction to Positive Economics.

3. Stonier A.W. and Hague – A text Book of Economic Theory

4. M.L.Jhingan – Advanced Economic Theory.

5. H.L. Ahuja - Advanced Economic Theory.

6. Peter Smith & David Begg – ‘Economics’ Work book.

7. Mithani – Economic Theory.

8. K.P.M. Sundaram – Micro and Macro Economics.

9. M.L.Seth- A text Book of Economic Theory.

10. Robinson J and Eatwell – An Introduction to Modern Economics.

11. Varian .H – Micro Economic Analysis.

II SEMESTER

EC.209 -MACRO ECONOMICS

COURSE OBJECTIVES:

1.To enable students to understand the nature and behaviour of important macro economic

variables in the functioning of an economy.

2.To impart knowledge regarding the formulation and implementation of macro economic

polices.

MODULE I -INTRODUCTION TO MACRO ECONOMICS (12 HRS)

Definition and branches of Macro economics(2); stocks and flow, functional relationships,

statics, comparative statics and dynamics. Interdependence between micro and macro

economics.(7) Micro-macro paradox(1). Uses and limitations of Macro economics(2).

,

MODULE II -NATIONAL INCOME (8HRS)

Circular flow of income and wealth,(2)Concepts and methods of measuring National

Income(2) Problems in the measurement of National Income-Per capita income and its

limitation as an index of welfare, Human development index, Gender empowerment

index(4).

MODULE III: THE CLASSICAL THEORY OF INCOME AND EMPLOYMENT(7)

Basic assumptions of the Classicists (1), Say’s Law of Markets and the Theory of Full

Employment- Pigou’s concept of wage cut (4),Wage-price flexibility and Full Employment

,saving investment equality, Criticisms of the Classical theory.(2)

MODULE IV: THE KEYNESIAN THEORY OF INCOME AND EMPLOYMENT(14)

The concept of under employment equilibrium, Effective Demand-Aggregate Demand and

Aggregate Supply(3),Consumption Function and its determinants, psychological law of

consumption.(4)Investment Function and its determinants(3)Changes in the level of income-

the Multiplier(2), Accelerator(1). Applicability of Keynesian Theory to under developed

Countries (1)

MODULE IV – MONEY (13HRS)

Definition of money-functions of money(1) Determinants of Demand for money-Theory of

Liquidity preference(2)Composition of Supply of money-M1,M2,M3(1). Value of money–

Quantity theory of money – Fisher and Cambridge equations and Keynes Income theory (4),

General equilibrium in the product and money market-IS and LM Model-Hicks- Hansen’s.

(3)

MODULE V- INFLATION- (12 HRS)

Meaning and types of inflation(1) ,Demand-pull -Cost push Inflation,(4) Inflationary gap(1).

Effects of inflation, measures to control inflation(3) employment-inflation trade off- Philips

curve (2) Measuring changes in the value of money – Use of Index numbers.(1)

MODULE VI – TRADE CYCLES ( 9HRS)

Meaning ,types and Phases of trade cycle(3), Trade cycle theories –Hawtrey’s monetary

theory (3), Schumpeter’s theory of innovations(3),

REFERENCE BOOKS

Shapiro Edward, (1978) Macro economic Analysis

Branson W.H, Macro economic Theory and Policy, (1972)

Hanson A.H,“A Guide to Keynes”

Rowan DC, (1974) Output, inflation and growth, 2nd

Ed.

Wonnacott Paul, macro economics, 1974

Dillard, Dudley, The Economics of John Maynard Keynes (19530

Dornbusch, R and S. Fisher (1984), Macro Economics.

Edgemond, M.R (1983) Macro Economics: Theory and Policy; Prentice-Hall of India, New

Delhi,

Gupta S.B (1983), Monetary Economics, S Chand &co. New Delhi.

SEMESTER III

EC.301 -BANKING AND PUBLIC FINANCE Course objectives:

1.To provide knowledge about the role and working of the monetary system in an economy.

2.To help students understand the role and working of government finances in a modern economy

MODULE I - Commercial banks (10 hrs)

Functions and importance of commercial banks (2) Sources of supply of bank fund, Balance

sheet of a commercial(3) Credit creation by Commercial Banks, (3) Portfolio Management

(2)

MODULE II- CENTRAL BANK(10) Emergence of the concept of Central Bank (2) Principles of note issue ( 2) Functions of central bank

(2) Monetary policy-Credit Control techniques - quantitative and qualitative methods (4 )

MODULE II -MONEY MARKET (12 HRS)

Meaning, features and Functions of Indian money market (3) Instruments of money market-call

money market, Treasury bill market, commercial paper market and bankers acceptance market.(4)

Money market Institutions -Central Bank, Commercial banks, Non- bank financial intermediaries,

Discount houses, Acceptance Market (3) Characteristics of a developed money market (2)

MODULE IV- PUBLIC FINANCE (10)

Meaning and subject matter of Public Finance (1) Distinction between private finance and public

finance (1) Musgrave’s view on Economic activities of the state (2) Principle of maximum social

advantage (2) Public goods vs. private goods, Pure public goods, Merit goods. Market failure (4)

MODULE V- PUBLIC REVENUE, (10 HRS )

Sources of Public revenue–Taxation, Canons of taxation (2) Merits and demerits of direct and indirect

taxes (4 ) Incidence and Effects of taxation (3) Value added tax (1).

MODULE VI-PUBLIC EXPENDITURE AND PUBLIC DEBT(12HRS)

Public Expenditure –Canons of Public Expenditure (2) Growth and effects of Public Expenditure (2)

Public Debt ,Effects, Repayment of Public Debt (3) Principles of debt management (1) Public Budget

(2) Fiscal policy (2)

MODULE VI- FEDERAL FINANCE (11 HRS) Concept of fiscal federalism (2) Principles for division of functions and financial resources between

different levels of government (2) Need for federal financial adjustments (1) need and mecahnism for

federal transfers (3) Indian federal finance(1) Role of the Finance Commission(2)

Reference Books

Basu A.K (1962) Fundamentals of Banking Theory and Practice, Mukerji, Calcutta.

Chandler L .V – Economics of Money and Banking, 7 ed, Harper and Row, NewYork.

Chandler L .V- Central Banking and Economic Development.

Sayers R.S (1978) Modern Banking, 7 ed , OUP, Delhi.

Bhatia .H.L – Public Finance.

Brown C.V and P.M .Jackson, (1978) , Public Sector Economics, Martin Robertson, Oxford

Dalton Hugh, Principles of Public Finance, Routledge and Kegan Paul

Herber P.Bernard –(1967) Modern Public Finance , Richard Irwin , Ch 10.

Mitra .S, ed (1970) Money and Banking , Random House , New york.

Musgrave Richard (1969) The theory of Public Finance.

Prest A.R.(1970) Public finance in theory and practice, English Language Book Society , London.

Taylor Philip - The economics of Public Finance

Basic Text Book

ML Jhingan Money and banking and finance-

SEMESTER IV

EC-401. INTERNATIONAL ECONOMICS

COURSE OBJECTIVES :

1. To provide knowledge on the basic concepts, tools and theories of international trade.

2.To examine important issues in commercial policy and international economic

integration.

MODULE I : INTRODUCTION TO INTERNATIONAL ECONOMICS.(15HOURS)

Differences between internal and International trade .Analytical tools- Production possibility

curve – Isoquants – Box diagram. Terms of trade -Concepts & Factors affecting terms of

trade; Offer curves.

MODULE II :THEORIES OF INTERNATIONAL TRADE(15HOURS)

Classical theory -Absolute and comparative cost theory, Hecksher-Ohlin theorem, factor

price equalization theorem .

MODULE III: TRADE AND REGIONAL DEVELOPMENT(15 HOURS)

Free trade and protection, tariffs and quotas, effects. Theory of customs union, Commodity

arrangements, Cartels, dumping. Trade as an engine of growth, Singer-Prebisch secular

stagnation thesis. Role of Multinational Corporations in economic development.

MODULE IV—INTERNATIONAL FINANCE (15HOURS)

Nature and type of foreign capital, role of foreign capital in development. Theories of exchange rate

determination-purchasing power parity theory, balance of payment theory. Disequilibrium in the

balance of trade and payments- causes and methods to correct disequilibrium.

MODULE V –INTERNATIONAL INSTITUTIONS(15HOURS)

GATT-Early rounds–a summary. Uruguay round –WTO- major agreements- Recent

developments. IMF ,World Bank, IDA, IFC , ADB,EEC, SAARC, Problem of international

Liquidity ,Globalization.

Books for reference:

1.M Chacoliades – International Economics.

2.C.Kindleberger – International Economics.

3.Bo Sodersten – International Economics.

4.D.Salvatore – International Economics

5.ML Jhingan- International economics

Semester V- COMPULSORY PAPER

EC.501. STATISTICAL METHODS FOR ECONOMICS

Objectives:

To introduce students to the basic concepts of statistics

To develop skills of data analysis and ability to interpret

To help students to appreciate the importance of statistics in Economics

Module-I: Collection , classification and tabulation of Data

Meaning- definition of statistics -uses of statistics and limitations of statistics.

Object and scope of enquiry- Collection of primary and secondary data -Framing a

questionnaire- schedule / interview method. Sources of secondary data. Sampling- methods

- random –stratified ,systematic, cluster ;non random –judgment sampling, convenience and

quota sampling.

Meaning and objectives of Classification of data- Making a frequency table-discrete and

continuous . cumulative frequency distribution-Bivariate distribution.

Object of tabulation ,Rules of tabulation- parts of a table, types of tables- one way, two

way , three way and higher order tables-

Module-II: Presentation Of Data

Diagrammatic Representation- Usefulness and limitations of diagrams-Rules for diagrammatic

representation , types of diagram—one dimensional –simple bar diagram , multiple bar diagram , sub

divided bar diagram and pie diagram percentage bar diagram, two dimensional and three dimensional

diagrams, pictograms , cartograms – graphs and curves .

Module-III: Measures of central tendency

definition-objectives of averaging – Characteristics of a good average

Arithmetic mean-Median-Mode- Individual observations , deviation method and step

deviation method

Module-IV: Measures of dispersion

Definition and objectives- -Range -Mean Deviation-Standard Deviation.

Skewness and Kurtosis (Concepts )

Module-V: Correlation And Regression

Meaning of correlation- objectives -Karl Pearson’s coefficient of correlation-Rank method

Meaning and objectives of regression analysis-regression lines-regression equation.

Module-VI: Index Numbers and time series analysis

Analysis of time series-definition-uses-components-methods of estimating component-

method of semi averages.

Index numbers-definition-uses-problems-unweighted and weighted index numbers-

Laspeyers,Paasche, fisher’s methods

Module VII – Theory of Probability

Meaning – rules of probability- binomial theorem

BOOKS:

1) Elhance-Introduction to Stastical Methods

2) S.P.Gupta-Statistical Methods

3) C.P.Gupta- Statistical Methods

Econometrics

Course Objectives: At the conclusion of this course, a student will have a solid basic

understanding of regression analysis as it is practised in the social sciences. The student will

be able to construct a simple theoretical model of the determinants of a single dependent

variable, estimate this model (given data), diagnose the adequacy of the statistical model,

modify the statistical model as required, and draw substantive conclusions regarding his or

her original theoretical model. Further, a student will become skilled in using econometric

packages.

Module –I : Nature and Scope of Econometrics Meaning of Econometrics, Relationship Between Statistics, Mathematics and Economics, Economic

and Econometric Models, the aims and methodology of Econometrics, Historical origin of the term

regression and its modern interpretation, statistical Vs deterministic relationship, regression Vs

Causation, regression Vs correlation, terminology and notation, the nature and sources of data for

Econometric analysis.

( 8 hrs)

Module II: Two Variable Regression Analysis The basic two Variable Regression model: Estimation, Statistical Inference and Prediction.

Extensions of two variable regression model – regression through origin, Scaling and units

of measurement, Functional forms of regression model.

( 12 hrs)

Module III: Multiple Regression Analysis

The problem of Estimation- Notation and assumptions, meaning of partial regression

coefficients the multiple coefficient of determination R2 and the multiple coefficient of

correlation R, R2 and adjusted R

2, partial correlation coefficients, Interpretation of Multiple

Regression Equation.

The Problem of Inference- The normality assumption, Hypothesis testing about Individual

Partial Regression coefficients, testing the overall significance of the sample regression,

testing the equality of two regression coefficients, restricted least squares, testing for

structural stability of regression models, testing the functional form of regression.

.

(15 hrs)

Module IV: Relaxing the Assumptions of the Classical Regression Model

Multicollinearity, Heteroscedasticity and Autocorrelation- Nature, Consequences, Detection

and Remedial Measures.

( 10 hrs)

Module V: Regression on Dummy Independent Variables

The nature of Dummy variables, regression on one quantitative variable and one qualitative

variable, regression on one quantitative variable and one qualitative variable with more than

two classes, regression on one quantitative variable and two qualitative variables, testing for

structural stability regression models, Interaction effects, piece wise linear regression, the use

of dummy variables

(15 hrs)

Selected References:

Gujarathi, D (2003) Basic Econometrics, 4th

Edition, New York: McGraw Hill

Wooldridge, J.M. (2003), ‘Introductory Econometrics: A Modern Approach’ 2nd

edition,

Thomson South-Western .

Green, W. (2003), ‘Econometric Analysis’, 5th

edition, Prentice Hall

R.S. Pindyck and D.L. Rubinfeld, Econometric Models and Economic Forecasts, Fourth

Edition (McGraw-Hill), 1997.

Dougherty, C. (1992) Introduction to Econometrics. New York: Oxford University Press. .

Johnston, J. (1984) Econometric methods, 3rd

edition, New York: McGraw Hill.

Johnston, J and J.Di Nardo (1997), Econometric Methods, 4th

edition, McGraw Hill.

Maddala, G (1992) Introduction to Econometrics, 2nd ed., New York: MacMillan.

Kalirajan, K.P.Applied Econometrics, Oxford&IBH publishing company Private limited,

1995.

Judge, Carter, Griffiths, Lutkepohl, and Lee (1988) Introduction to the Theory and Practice of

Econometrics. John Wiley and Son Publishers.

Marija N.Norusis (2007), “SPSS 15.0 Guide to Data Analysis”, Prentice Hall.

Sabine Landau and Brian Everitt (2004),”A Handbook of Statistical Analyses using SPSS,

Chapman & Hall/CRC, Boca Raton, Florida, 2004.

Semester V

EC-5012- MATHEMATICAL METHODS FOR ECONOMICS-OPTIONAL

PAPER

Course Objectives:-

The purpose of this course is to show how mathematical tools can be used by

students to understand economic theory

The economic economic theory will be more coherent and organized when students

become more adept at using mathematical techniques

Students will see applications of this course to all the economics they have studied in

the past or will study in the future.

The goal of the course is to make students understand and be able to use the

mathematics required for studying economics at the masters level

Module 1: Basic Mathematics: Elementary Concepts of algebra, trigonometry and analytical

& application of quadratic curves. Concept of function and types of functions;

[10hrs]

Module 2: Differentiation:;

Concept of limit , continuity , Rules of differentiation, Interpretation of revenue, cost,

demand, supply functions; rules of partial differentiation and interpretation of partial

derivatives; Problems of maxima and Minima in single and multivariable functions

,Constraint optimalisation; Simple problems in market equilibrium. [15hrs]

Module 3: Euler’s theorem, cobb-Douglas production function, elasticity theorems, multi

product monopolist, baumols sales maximization, stackelberg solution [15 hrs]

Module 4 Integration: Concept of integration; simple rules of integration; definite

integrations application to consumer’s surplus and producer’s surplus. [10hrs]

Module 5: concept of matrix-their types, simple operations on Matrices, Determinants and

Matrices: Basic properties of determinants. Solution of simultaneous equations through

Cramer’s rule; matrix inversion, Introduction to input-output analysis.

[10hrs]

Basic Reading List:

. 1. Jean Webber [1982] mathematical analysis, Harper & row publishers, New York

2. Chiang, A. C. [1984] Fundamental Methods of Mathematical Economics, McGraw

Hill, New York.

3. Yamane, Taro [1975] Mathematics for Economists, Prentice Hall of India, New Delhi.

4 Allen, R.G.D. [1974], Mathematical Analysis for Economists, Macmillan Press and

ELBS. London

5. Hadley, g. [1962] Linear Programming, Addison Wesley Publishing co.,Massachusetts.

Additional Reading List:

1. D. Bose [1996] Mathematical Economics, Himalaya publication. Bombay

2. Mehta & Madanani[2009], laxmi narayan agarawal publishers ,Agra

ST. JOSEPH’S COLLEGE (AUTONOMOUS)

SEMESTER V -ECONOMICS

OPTIONAL PAPER-EC 502B- ENVIRONMENTAL ECONOMICS

Course Objectives: To inculcate the need to understand and appreciate the relationship between

environment and economic development.

To provide a theoretical and empirical basis of environmental economics as an

applied branch of economics.

Course Content

Module 1: Introduction to Environmental Economics

Definition, need, nature and scope of Environmental economics; relation between

Environmental economics and economics, the material balance model. Ecology and resource

economics. Individual preference and social choice. Efficiency of markets, market failure-

public bad and externalities. (10hours)

Module II: Natural Resource Economics

Basic concepts-current, potential and resource endowment, renewable and non renewable

resources, rate of extraction and regeneration. Problem of common property resources. Coase

theorem . Land degradation-types, effects; unsustainable agricultural practices- the case of

pesticides. Forest as a resource-deforestation, causes, effects. Water resource- pollution,

causes, effects, water resource management. Energy resource- types, energy crisis; Waste-

types, effects; Noise pollution-source, effects; Air pollution- sources, effects. Environment

management (15hours)

Module III: Population, Environment and Sustainable Development

Population, growth of species, density, migration, food security. Ecology of the poor and the

affluent, gender and environment. Sustainable development-concept, definition, Hartwick,

London school and safe minimum approach -goals, measurement and obstacles to sustainable

development. Conventional development versus sustainable development. Indicators and

measurement of sustainable development ,Kuznet curve . Recycling, reuse and techno centric

solutions to sustainable development. Role of govt, Environment legislation. (10hours)

Module IV: Environmental Valuation and Instruments

Need for environmental valuation, concept of total economic value; cost-benefit analysis,

cost effectiveness analysis; averting behaviour approach, weak complementary approach.

Methods of economic valuation of environment- methods based on market prices, proxy

market methods (hedonic and travel cost method) survey-based method (contingent valuation

method). Some environmental regulation tools direct and indirect -pollution fees, emission

trading rights, taxes on inputs/ outputs of polluting activities, subsidies for adopting cleaner

technologies -effluent treatment plants, deposit refund system. Environment audit (15 hours).

Module V: International Environmental Issues

International environmental issues –ozone depletion, global warming, acid rain, bio diversity

loss, endangered species, desertification, international trade issue –international cooperation.

( 5 hours)

Module VI: National Environmental Concerns and Select Legislations

National issues – case studies, development and environmental issues. Environment

legislation in India ,Forest (Conservation) Act, 1980 , Prevention Of Cruelty To Animals

Act, 1960, Water (Prevention and Control of Pollution) Cess Act, 1977, Air (Prevention and

Control of Pollution) Act 1981, Biological Diversity Act 2002, Labeling of Environment

Friendly Products, Central Pollution Control Board. ( as assignment and presentation

topics).(5hours )

Reference Books :

Anderson David (2007) Environmental Economics And Natural Resource Management , 2 edition Pensive

Press.

B Field and M Field (1997) Environmental Economics: an Introduction. 3rd edition. New York: McGraw Hill.

B.Field (2001) Natural Resource Economics: an Introduction. 1st edition only. McGraw Hill

Baumol W and Oates W (1988) The Theory of Environmental Policy. 2nd edition. Cambridge: Cambridge

University Press.

Bhattacharya N, Rabindra (2001) Environmental Economics- An Indian Perspective. Oxford University Press,

Delhi.

C Kolstad (2000) Environmental Economics. Oxford: Oxford University Press.

C Russell ( 2001) Applying Economics to the Environment. 1 edition only. Oxford: Oxford University Press.

Common M (1988) Environmental and Resource Economics: an Introduction. Harlow:

D W Pearce (1976) Environmental Economics. Harlow: Longman

Dasgupta P (1982) The Control of Resources. Oxford: Blackwell.

Fisher A C (1981) Resource and Environmental Economics. Cambridge: Cambridge University Press.

Folmero J Gabel h l (2000) Principles of environment and resource economics, Edward Elgar Publications,

London

Freeman A M, Haveman R and Kneese A (1973) The Economics of Environmental Policy. New York: Wiley

Herfindahl O and A Kneese(1974) Economic Theory of Natural Resources. Columbus: Merrill

J Hartwick and N Olewiler (1998) The Economics of Natural Resource Use. 2nd edition.

J Lesser., D Dodds and R Zerbe (1997) Environmental Economics and Policy. 1st edition only. Reading: Mass:

Addison

J R Kahn ( 1998) The Economic Approach to Environmental and Natural Resources. 2nd edition. Fort Worth:

Dryden Press

Kadekodi G K (Ed) (2004). Environmental Economics in Practice. Oxford University Press.

Kneese A (1977) Economics and the Environment . Harmondsworth: PenguinLongman

N Hanley., J.Shogren and B.White ( 2001) Introduction to Environmental Economics. 1st edition , Oxford:

Oxford University Press.

Opschoor (1999) Environmental Economics and development, Edward Elgar, London

R K Turner., D W Pearce and I Bateman. (1993) Environmental Economics: an Elementary Introduction. 1st

edition only. Baltimore: Johns Hopkins UP.

Sankar Ulaganathan (2001) Environmental Economics , Oxford University Press, Delhi.

Sengupta, Ramprasd (2001),Ecology and economics – An approach to sustainable development, Oxford

University Press, Delhi

T Tietenberg ( 2000) Environmental and Natural Resource Economics. 5th edition. Addison Wesley.

T Tietenberg( 1998) Environmental Economics and Policy. 2nd edition ,Addison Wesley.

SEMESTER V- OPTIONAL PAPER

INDIAN ECONOMY

Course objectives

To enable students to have an overview of the workings of the Indian economy.

To help them understand the changing trends in the Indian Economy

To understand the leading issues in India’s economic development.

MODULE I STRUCTURE OF THE INDIAN ECONOMY

India- a developing economy, features , Composition of National Income(3hrs)

Demographic profile: Trends in population growth- growth rate, density. age, sex,

size, composition (1 hr) Impact of a rising population on economic development(1 hr)

National Population Policy 2000 (2 hrs)

Employment in traditional and modern sector, Work force participation rate in India,

Analysis of the trend in occupational pattern – Estimates of unemployment in India,

Measures to reduce unemployment.(3 hrs)

Brief overview of the recent rural and urban poverty alleviation programmes - Swarna

jayanti Gram Swarozgar , Indira Awaas Yojana , Mahatma Gandhi National Rural

Employment Guarantee Act,Jawarharlal Nehru National Urban Renewal Mission

(2005) Swarna Jayanthi Shahari Rozgar Yojana (2009) (4hrs)

Regional inequalities- measures to reduce regional inequalities (1 hr)

[TOTAL: 15hrs]

MODULE II AGRICULTURE

Trends in agricultural production , causes for low agricultural production (2 hrs)

Agricultural Inputs- irrigation -defects , modern irrigation systems, watershed

development, dry land farming Research and development ,Plant bio-technology,

fertilisers ,pesticides (4 hrs)

Land reforms –need for Land reforms and appraisal of Land reforms in India (2hrs)

Animal husbandry, horticulture , floriculture , aqua culture (2 hrs)

Sources of agricultural finance, micro finance , rural infrastructure development fund-

NABARD (3hrs)

Agricultural marketing- defects, Agricultural prices Policy- procurement price and

minimum support price ,cold storage , processing of agricultural products (3 hrs)

Concept of food security, Food security in India ,Public Distribution System (2hrs)

WTO and Indian agriculture – market access , Domestic support , export subsidies

Intellectual property rights( 2hrs) [TOTAL: 20 hrs]

MODULE III INDUSTRY

Over view of the Industrial policies prior to 1991 ( 2hrs). Industrial Policy 1991- a

critical appraisal – Implications of the new Industrial policy- Strengthening of the

private sector , Liberalisation and Globalisation - Public-private partnership (4hrs)

Problems of public sector enterprises- disinvestment – BIFR –Present policy of the

government towards the public sector as per the National Common Minimum

Programme-Concept of Maharatna, Navratna and miniratna (4 hrs)

Concept of Sunrise industries . Performance of the following industries in India-

Textiles and garments Gems and Jewellery, Bio technology , Engineering and

automobile industry, (5hrs)

Small scale industries- problems, prospects and challenges.(3hrs) [TOTAL: 14 hrs]

MODULE IV INFRASTRUCTURE (PHYSICAL AND SOCIAL)

Sources of Power in India- conventional and non conventional-The energy crisis-

causes effects and remedies- Power sector reforms- Rajiv Gandhi Gram VIdyuth

Karun Yojana (2 hrs)

Telecom and Information Technology (1 hr)

Transport system- Road transport system in India – Growth of Indian Railways –

Water transport and Civil aviation (4 hrs)

Health sector- immunization, maternal and child health strategies, prevention of

communicable diseases- Health infrastructure , National Rural Health Mission (2hrs)

Education infrastructure – Primary , secondary and Higher education, Technical

education- Universal promotion of primary education, Sarvasiksha Abhiyan (2hrs)

[TOTAL: 11 hrs]

1) Alak G-Indian Economy, its nature and problems

2) Ruddar Datt and K.P.M. Sundharam -Indian Economy

3) DhingraI.C-The Indian Economy

4) Misra SK and V.K.Puri-The Indian Economy Its Development Experience

5) Uma Kapila-An overview of Indian Economics-volume I-IV

6) Agarwal A..N –Indian Economy :Problems of development and planning

7) Academic Foundation – Economic Development of India –Monthly updates.

8) RBI –Hand book of statistics on the Indian Economy.

9) India development report

10) NSSO –Reports and publications

11) Economic Survey

Semester VI

EC-60 - DEVELOPMENT ECONOMICS-COMPULSORY PAPER

Course Objectives:

To make students aware of the economic principles / theories that can be used to

understand various issues and policies of developing economies.

Study how resources, institutions, mechanisms are used for development.

Aims to analyze and understand the allocation, distribution and utilization of scarce

resources in the process of development.

Study transformation of developing countries.

Module I :Development economics- Concepts and issues related to economic

development (10)hours

Terminologies – Meaning of Development- values in development, Human Capabilities-

Meaning of Economic growth – Distinction between economic development and economic

growth.(2)

Measurement of development- -PCI, HDI, PQLI, GDI, Green GDP (2)

Characteristic features of developing nations( 2)- Factors facilitating development –

Economic and non economic factors –(2) Obstacles to development- vicious circle of poverty

– scarcity of capital – market imperfections.(2)

Module II: Resources for development (16 hrs)

Natural Resources and economic development (2) Human Resources- Human capital

formation- Capital (4) – Resources for Capital Formation- Domestic resources(Domestic

savings , taxation , deficit financing, profits from public sector enterprises) – Foreign Capital

(3)– Role of the Entrepreneur in economic development (1 )

Technology and development – Role of technology in economic development (2) Capital –

output ratio – incremental capital -output ratio – Factors determining Capital – output ratio

(2) Choice of techniques – Labour intensive techniques versus capital intensive

techniques.(2)

Module III: Poverty, economic inequality and development (6) hours Conceptual issues. Absolute and relative poverty, poverty line- vicious circle of poverty,

Inequality of income and wealth distribution; Lorenz Curve, Effects of inequality

Poverty Alleviation methods- redistribution, Sen’s capacity building.

Module IV: Theories of economic development and economic growth(21)hours Adam Smith ‘s contribution to the theory of development (3)

Karl Marx ‘s theory of development.(3)

Rosenstein – Rodan – Big Push theory (3)

Ragnar Nurkse –Balanced Growth (2)

Hirschman-Doctrine of Planned Unbalanced Growth(3)

Rostow’s Stages of Development (3)

Harrod-Domar- Theory of Capital Accumulation(4)

Module V: State and Development( 6) hours Role of the state in promoting economic development – Change in institutional framework ,

Agricultural development -Industrial development – infrastructure – removal of regional

disparities (2) State and planning, decentralised planning and people participation.(2)

Role of Monetary Policy and Fiscal Policy in Development. 2 hrs

Module VI: Case studies( To Be given as Assignment to the students)

A brief overview of emerging economies – Brazil, India , China , South Africa and Mexico

Reading List:

1. Ray ,Debraj .Development Economics., Princeton University Press. 1998(basic text).

2. Mikkelson,Britha.Methods for development work and research. Sage pub.1995.

3. Nawab Syed, Naqvi Haider .Development Economics – Nature and Significance..

Sage Publication, New Delhi. 2002.

4. Hunt Diana. Economic Theories of Development – An Analysis of Competing

Paradigm. Harvester Wheatsheaf, New York. 1989.

5. Kuotsai, Tom Liou Handbook of Economic Development. Edited. . Marcel Dekker

Inc. New York. 1988.

6. Meir Gerald, Stiglitz Joseph. Frontiers of Development Economics. Oxford

University Press and World Bank Institute. 2001.

7. Basu Kaushik.Analytical Development Economics., Oxford University Press, 1988.

8. Das Debendra K. Globalization and Development – Experiences and Challenges.

Deep and Deep Publication, New Delhi. 1999.

9. Baker ,Judy L Evaluating Impact of Development Projects on Poverty – A Handbook

for practitioners., World Bank Institute. 2000.

10. Banberger ,Michael. Integrating Quantitative and Qualitative Research in

Development Projects. World Bank, 2000.

11. Rabindra Bhattacharjee Ed,Environmental Economics – An Indian Perspective.

Oxford University Press. 2001.

12. Sengupta Ramprasad. Ecology and Economics., Oxford University Press. 2001.

13. World Bank Reports. Various Issues.

14. Human Development Report. Various Issues.

15. Asian Development report. Various Issues.

16. S.K Mishra and V.K Puri, Economics of Development and Planning, Himalaya

Publishing House.

17. Todaro,Micheal.Developing economies.

18. Higgins,Benjamin. economic development(principles,problemsand policies).

19. Meir,G.M,Baldwin.R.E.economic development

ST .JOSEPH’S COLLEGE (AUTONOMOUS) BANAGLORE 560027

SEMESTER VI-ECONOMICS OPTIONAL PAPER-EC.605-ENTREPRENEURSHIP AND BUSINESS DEVELOPMENT

Course Objectives: 1. To motivate students to venturing into entrepreneurship as an alternative career option.

2. To develop and equip students with the necessary knowledge, skill and attitudes for

pursuing Entrepreneurship

Course Content: 60 hours

Module I: Entrepreneurship- Concepts and Theories Entrepreneurship-definition, role of entrepreneurship in economic development; types

,entrepreneurship mind set ,skills required in entrepreneurship, intrapreneurship,

Schumpeter’s theory of innovation, Peter Drucker, Locus of control ,McClelland

achievement motivation(12 hours)

Module 2: Developing a Business Plan

Entrepreneurial process- -generating business ideas, identifying and evaluating business

opportunities, product evolution and innovation, developing business plan, new entry

strategy. The marketing plan -Market Analysis– market research for the new venture,

elements of marketing- mix- product, price, promotion and place, SWOT analysis. Marketing

strategy, growth. Ethics and social responsibility of entrepreneurs. (18 hours)

Module 3: The Organizational Plan

Types of companies- limited and unlimited; proprietary, partnership and corporation.

Formation of companies-documents –memorandum of association, articles of association,

prospectus. Designing the organization- Principles of management, building the management

team. Legal issues for entrepreneurs –patents, trade marks, copy rights, licensing, signing of

contract .(12 hours)

Module 4: The Financing Plan

Activities of a Business - Operating Activities, Investing Activities and Financing Activities.

Sources of New Venture Funding. Angel Investors, Venture Capitalists, Private Equity,

Public Equity, and Banks-5 C’s of lending. Preparing Financial Projections- Basic Financial

Concepts-–book keeping, financial accounting, cost in decision making- Break Even

Analysis, Ratio analysis (concepts) (12 hours)

Module 5: Net Working for Entrepreneurs Net working for entrepreneurs- Social net working, Role of Govt. Agencies in Promoting

Entrepreneurship, Small Industries Services Institutes, SIDBI, Khadi and Village Board and

Financial Institutions, self help groups, women entrepreneurs. (6hours)

BASIC TEXT BOOK

Hirsch. D Peters, Peters P Michael, and Shepherd A Dean (2007) Entrepreneurship, VI

Edition , Tata McGraw- Hill , Delhi.

READING LIST :

S. Moharana and Dr. C.R. Dash, yr Entrepreneurship Development Pub. RBSA

Publishers, Jaipur.

Khanna, S.S. (yr ) Entrepreneurial Development , S. Chand & Company Ltd., New Delhi.

C.B. Gupta ,N.P. Srinivasan, (1992).Entrepreneurial Development ,Publisher Sultan

Chand & Sons.

D.N. Mishra, (yr) Entrepreneur and Entrepreneurship Development and Planning In India,

Chugh Publication, Allahabad.

Bhide, Amar V(2000), The Origin And Evolution Of New Business, Oxford University

Press, New York.

Dollinger M.J. (2006), ‘Entrepreneurship Strategies and Resources’, 3rd Edition, Pearson

Education, New Delhi.

Desai, Vasant Dr. (2004) Management of Small Scale Enterprises New Delhi:

Himalaya Publishing House

SIDBI Report on Small Scale Industries Sector [Latest Edition]

Verma, J.C and Gurpal Singh, (2002), Small Business and Industry-A Handbook For

Entrepreneurs, Sage publications, New Delhi.

ST .JOSEPH’S COLLEGE (AUTONOMOUS)

SEMESTER VI- ECONOMICS OPTIONAL PAPER-ENTREPRENEURSHIP DEVELOPMENT

TOPICS FOR ASSIGNMENTS

Students can choose to do their assignment on any topic given below. They must register

the topic with the course facilitator. Assignments should be of 1500 words or less typed

on single side, 1 ½ spaced, Times New Roman, font size 12. Tables and graphs if used

are excluded from word limit. In all cases of interviews it is suggested to develop the

interview into a case study using the case study guide lines given.

1. Meet two entrepreneurs and discover the meaning of the term entrepreneurship from

them. Identify the factors that motivated them to start their own venture. What values,

skills and attitudes do you believe have contributed to their taking entrepreneurship as

career?

2. Meet two individuals who wanted to become entrepreneurs but did not do so. Ask

them why they first considered to become entrepreneurs and later why did they drop

their plans. What were the major obstacles they felt that stood in their way?

3. Using John Mullin’s seven domain tool, identify how the two entrepreneurs you are

interviewing have identified his/her business interest.

4. Generate business ideas especially in any of the fields like old age, destitute women,

slum dwellers, rural poor, working children, caring for the sick. You can choose other

field of interest as well. Develop any of the idea into a business plan.

5. Innovate any existing product or service and design a marketing plan for the product.

6. Find two examples of firms that pioneered a new product in a new market and were

able to achieve long run success based on that entry and two who were not pioneers

but eventually took over the pioneer as market leader .In your opinion why did this

happen .

7. Give two examples of firms that have used imitation as a way of reducing risk of their

entry. What aspect of risk did it want to reduce and was it successful in doing so.

8. Interview two entrepreneurs and discover how the entrepreneur has been able to strike

a balance between ethics and business needs.

9. Interview entrepreneurs to gain insight into the team working process in the business.

10. Make a study of the financing methods and the problems faced by two startup

entrepreneurs.

11. What volume of sales is required to reach break even for the following business. The

variable cost of producing one unit of the product is Rs 5, the fixed cost of plant and

labor is Rs 50, 00,000 and the selling price of a single product is Rs 50. How useful

will this financial plan be when it is based on the assumption of the future and we

know that we are not confident that these assumptions are not going to be 100 %

correct. Explain what can go wrong with such plans

12. Attempt to make a study of the various sources of funding in an established business.

13. Interview a business loan officer at a bank to determine the banks lending criteria for

small businesses and for new businesses. Do they use the 5 Cs for lending? Which of

the 5 Cs appear to be the most important?

14. Assume that you have been lucky and have been given a considerable fortune. You

now decide to become a business angel straight after graduation. How would you go

about setting up and running your business angel business. Be specific about

generating deal flow, selection criteria, the desired level of control and involvement

in the investee.

15. Find two examples of product/service advertising available in magazines / print/

recorded and explain how they fit in with the rest of the marketing mix and which

group of customers have been targeted.

16. How costly is it to put an advertisement in the local newspaper, in the business

telephone directory, on radio, on television and in magazines. What types of products

would benefit from each such advertising outlet mentioned .Why?

17. Using the internet obtain copies of two patents that are at least three years old. What

are the elements that are common and different across these patterns? Which one do

you believe will be a greater success?

18. Find information about two ventures that were failures and discuss the underlying

reasons for the failure in each case.

19. Identify the various Govt and local bodies that are involved in the setting up of an

enterprise in India. Explain the type of support they give to start up ventures.

20. Interview two men and two women entrepreneurs and find out whether they believe

that the tasks of being entrepreneur are different from their counterparts. What are the

advantages of being women / men entrepreneurs?

21. What are the world’s most famous trade marks? Use data to back up your answer.

22. Interview a self help group and study how they run their business.

SEMESTER VI- OPTIONALPAPER II

EC 606 : FINANCIAL ECONOMICS & MANAGEMENT

Objectives:

1) To help the students to understand & learn the working of capital markets.

2) To have knowledge of capital market and money market.

3) To help in financial decision making.

Module-I: Theoretical background to financial economics

Introduction-Definition of financial economics. (1 hr)

Theoretical background – Individual behaviour under Uncertainty: Choices involving

risk – The St. Petersburg paradox and Bernoulli’s hypothesis (3 hrs). Neumann –

Morgenstern method of constructing utility index under risky situations .(3hrs)

Attitude towards risks- Risk averter ,risk lover ,risk neutral.(3 hrs)

Friedman –Savage hypothesis.(3hrs)

Markowitz hypothesis .(2hrs) Total- 15 hrs

Module II- Asset pricing and valuation

Time value of money : present value , net present value and internal rate of return(6

hrs)

Law of one price and arbitrage (1 hr) Total – 7 hrs

Module-III Sources of finance

Basic concepts-Financial planning (2 hrs) –Capitalization ( 2hrs)-Financial analysis

(2 hrs) -Money market & capital Market. Primary (security) market and Secondary

market (3 hrs)-Cost of raising capital (2 hrs) -Investment bankers(1 hr)

Futures and options (1 hr)

Long term Finance-Shares, Concepts types-Preference shares-advantages, limitations-

(2 hrs) Equity shares-( 2 hrs) Debt Capital-Debentures-Mutual funds. (1 hr)

Total- 18 hrs

Module-IV: Indian capital market

Indian capital market-Constituents, Merchant banking activities-Recent trends in

capital market-Venture capital. (4 hrs)

Evolution of stock exchange- Role of SEBI. (2 hrs) Total 6 hrs

ModuleV: Capital structure-meaning, need & importance-(2 hrs) Optimum Capital structure-

Theories of capital structure-traditional theory (3 hrs), Modigliani-Miller theory-(2hrs)

Capital gearing,(2 hrs) capital structure and cost of capital (2 hrs).Portfolio management-

theories capital asset pricing model. (3hrs)

Total 14 hrs

REFERENCE BOOKS:

1) J.L.Farul-Portfolio management

2) Financial economics & management-Banerjee & Agarwal

3) Contemporary investment:security & portfolio-Douglas Hearth

4) Security analysis & portfolio management-Donald fisher.

5) Principles of Financial Economics, by Stephen F. LeRoy and JanWerner, Cambridge

University Press, First Edition.

6) Financial Theory and Corporate Policy, by Thomas E. Copeland, J.Fred Weston and

Kuldeep Shastri, Addison Wesley, Fourth Edition.

7) Empirical Corporate Finance (International Library of Critical Writings in Financial

Economics) by Michael J. Brennan

8) Zvi Bodie , Robert merton , David Cleaton - Financial economics (Pearson)

9) M.P.Narayanan , Vikram .K..Nanada-Finance for strategic decision making (Wiley

,India)