university of kalyani economics - Nagar College [PDF]

UNIVERSITY OF KALYANI REVISED SYLLABUS FOR THREE YEARS B.A./B.Sc. DEGREE COURSE (HONOURS) IN

ECONOMICS According to the New Examination Pattern Part – I, Part- II & Part- III

WITH EFFECT FROM THE SESSION 2010 - 2011

UNIVERSITY OF KALYANI KALYANI, NADIA COUNCIL FOR UNDER GRADUATE STUDIES PROCEEDINGS OF THE 21 ST MEETING OF THE (PREVIOUS) COUNCIL FOR UG STUDIES HELD ON 13/09/2005

Revised Structure and Distribution of Marks for Bachelor of Arts Degree Course w.e.f. Academic Sessio n 2005-2006 BACHELOR OF ARTS (GENERAL) Compulsory English : One half paper : 50 Marks Modern Indian Language : One half paper : 50 Marks Environmental Studies

: One full paper *: 100 Marks*

Elective Subjects : Three : Four full papers : 3x4x100 each = 1200 Marks

AGGREGATE MARKS

:

1400

BACHELOR OF ARTS (HONOURS) Compulsory English : One half paper : 50 Marks Modern Indian Language : One half paper : 50 Marks Environmental Studies

: O ne full paper*: 100 Marks*

PART-I

PART-II

PART-III

– – –

– – –

3x2x100 Marks = 600 Marks

3x1x100 Marks = 300 Marks

500 Marks

600 Marks

300 Marks

PART-I

PART-II

PART-III

50 Marks 50 Marks

-

-

100 Marks*

-

-

2x2x100 Marks =400 Marks

-

2 x 100 Marks = 200 Marks

4 x 100 Marks = 400 Marks

600 Marks

400 Marks

50 Marks 50 Marks 100 Marks* 3x1x100 Marks = 300 Marks

Elective Subjects : Two : Three full papers : 2x3x100 each = 600 Marks

2x1x100 Marks =200 Marks

One Honours Subject : Eight full Papers : 8x 100 Marks = 800 Marks

2x 100 Marks = 200 Marks

AGGREGATE MARKS

*

:

1600

With effect from the session 2009 -2010.

600 Marks

University of Kalyani Revised Syllabus of Economics (Honours Course) (w.e.f. the session 2010-2011) C o n t en t

Distribution of Marks

(Page-H-1)

Part-I Paper-I Paper-II

Group-AGroup-BGroup-AGroup-B-

Micro Economics Macro Economics Statistics Mathematical Economics

(Page-H-2) (Page-H-3) (Page-H-5) (Page -H-6)

Part-II Paper- III

Paper- IV

Group-AGroup-BGroup-AGroup-B-

Micro Economics Macro Economics Advanced Statistical Methods Computer Application in Economics

(Page-H-8) (Page-H-10) (Page-H-12) (Page-H-14)

Part-III Paper- V Paper- VI Paper- VII Paper- VIII

International Economics Group-A- Public Finance Group-B- Economics of Finance Group-A- Development Theories Group-B- Rural Development and Entrepreneurial Economics Indian Economics

(Page-H-16) (Page -H-17) (Page-H-19) (Page-H-19) (Page-H-21) (Page-H- 23)

University of Kalyani

Honours Course in Economics

Economics (Hons.) Paper wise subject and marks distribution PART-I: PAPER-I: ECONOMIC THEORY-I A. MICROECONOMICS -50 Marks B. MACROECONOMICS -50 Marks PAPER-II: QUANTITATIVE TECHNIQUES A. STATISTICS -50 Marks B. MATHEMATICAL ECONOMICS -50 Marks PART-II: PAPER-III: ECONOMIC THEORY-II A. MICROECONOMICS -50 Marks B. MACROECONOMICS -50 Marks PAPER-IV: A. ADVANCED STATISTICAL METHODS -50 Marks B. COMPUTER APPLICATION IN ECONOMICS -50 Marks PART-III: PAPER-V: INTERNATIONAL ECONOMICS (100 Marks) PAPER-VI: PUBLIC FINANCE AND ECONOMICS OF FINANCE A. PUBLIC FINANCE -50 Marks B. ECONOMICS OF FINANCE -50 Marks PAPER-VII: DEVELOPMENT ECONOMICS A. DEVELOPMENT THEORIES B. RURAL DEVELOPMENT AND ECONOMICS PAPER-VIII: INDIAN ECONOMICS

H-1

-50 Marks ENTREPRENEURIAL -50 Marks -100 Marks

University of Kalyani

Honours Course in Economics

PART-I Paper I:

Economic Theory I

(Full Marks 100)

Group –A: Microeconomics

(50 Marks)

Unit 1: Markets and Prices: (a) Introduction to Microeconomic Theory – Positive versus Normative Analysis (b) Markets and Prices: definition, extent (c) Supply and Demand – market mechanism – market equilibrium – elasticities of supply and demand – market equilibrium – short run versus long run (d) Understanding the effects of changing market conditions (comparative statics) (e) Effects of government intervention – price control Classes 10 Unit 2: Theory of Consumer Behaviour (a) The budget constraint – properties of budget set – change of budget line – taxes, subsidies and rationing (b) Consumer preferences – assumptions about preferences – indifference curves – perfect substitutes, perfect compliments – the marginal rate of substitution (MRS) (c) Cardinal utility – constructing a utility function – some examples of utility function – Marginal Utility (MU) – MU and MRS (d) Optimal choice – consumer demand – price changes and income changes – normal versus inferior goods – Engel curves – income effect and substitution effect and Giffen good (e) Price Consumption Curve and the demand curve – Slutsky decomposition – ordinary versus compensated demand curve (f) Elasticity of demand – direct effect, cross effect, substitutes and compliments (g) Consumer surplus – compensating variation and equivalent variation Classes 30 Unit 3: Production, Cost and Theory of Firms : (a) Technology of production – production function (b) Properties of production function with one variable input – average product and marginal product (c) Law of Diminishing Marginal Returns (d) Iso-quants, input flexibility, diminishing rate of factor substitution (e) Iso-cost curves (f) Optimizing behaviour of the firm (g) Long-run and the short-run – returns to scale

H-2

University of Kalyani

Honours Course in Economics

(h) Cobb-Douglas Production, CES Production Function (i) Measuring cost: Economic cost versus accounting cost, op portunity cost, sunk cost, fixed cost, variable cost (j) Long-run versus short-run costs (k) Economies of scale – short run and long run Classes 20 Unit 4: Analyses of Market Structures: (a) Perfect Competition – assumptions – price taking behaviour (Demand curve of an individual firm) (b) Supply schedule – very short period, short period and long period (c) Equilibrium of an individual firm (d) Long run industry supply curves – constant, increasing and decreasing cost industry (e) Efficiency of competitive market – consumer and producer surplus effects of tax and subsidy, price control References: 1. R. S. Pindyck and D.L. Rubenfeld, Microeconomics, Pearson Education 2. Ferguson and Gould, Microeconomic Theory, 3. H.R. Varian, Intermediate Microeconomics, EWP

(50 Marks)

Group –B: Macroeconomics Unit 1: Introduction to Macroeconomic Theory (a) (b) (c) (d)

Economy as a circular flow between firm sector and household sector – Firm, Household and Government Basic Macroeconomic Variables - Configurations of Aggregate Output, Employment, Interest and P rice Level Fundamental Macroeconomic Problems – unemployment, inflation Fluctuation of output – rate of growth – high unemployment, hyper -inflation, depression and stagflation Classes 5

Unit 2: Concepts of Income and Output (a) (b) (c) (d) (e) (f) (g) (h) (i)

Gross National Product (G.N.P) Gross Domestic Product (G.D.P) Net National Product (NNP) Personal Income (PI) Relation between GNP, GDP, NNP and PI Nominal and Real GNP GNP Deflator Methods of Measurement of GNP – Measuring Gross Value of GNP – Factor Share Method, Expenditure Method, Value Addition Method Foreign or External Sector Classes 10 H-3

University of Kalyani

Hono urs Course in Economics

Unit 3: Introduction to Income Determination (a) (b) (c) (d) (e) (f) (g) (h) (i) (j)

Aggregate Demand – Components – Consumption, Investment, Government Expenditure and Net Exports Consumption Function – Consumtion and Savings Aggregate Demand and Autonomous Spending Equilibrium Output – Keynesian Cross Diagram Multiplier Stability of Equilibrium Output Paradox of Thrift Government Sector – Government Budget – The Balanced Budget Multiplier Taxes as a function of income Multiplier and changes in tax rate Classes 10

Unit 4: Money, Interest and Income (a) (b) (c) (d) (e)

The Goods Market – Consumption Demand – Investment Demand Planned Investment and Interest Rate Goods’ Market Equilibrium – IS Curve Derivation of IS Curve Slope, position off of the IS Curve – Excess Supply and Excess Demand in Commodity and Asset Market (f) Wealth Budget Constraint – Nominal and Real Form – The Demand For Real Balance (g) Supply of Money and Money Market Equilibrium – LM Curve (h) Slope and Positions off the LM Curve (i) Equilibrium in goods and asset market (j) Changes in Equilibrium levels of income and interest rate (k) Adjustment towards equilibriums – Comparative Statics and Dynamics in a Formal Model (l) Monetary Policy – Transmission Mechanism (m)Liquidity Trap – Interest inelasticity (n) Fiscal Policy and Crowding Out Classes 20 Unit 5: Output, Price and Employment (a) (b) (c) (d) (e) (f)

Supply of Output – Aggregate Production Function Aggregate Demand for Labour – Keynes’ Relative Wage Hypothesis Downward Inflexibility of Wage Aggregate Supply Function – Relation Between Aggregate Supply and Price Aggregate Demand Function – Derivation of Aggregate Demand Curve Shifts in Aggregate Demand and Supply Curve Monetary and Fiscal Policy H-4

University of Kalyani

(g) (h) (i)

Honours Course in Economics

Determination of Aggregate Output, Employment, Rate of Interest and Price Comparison of Keynesian and Classical Position – Aggregate Supply and Demand in Classical Theory Neutrality of Money – Classical Dichotomy – Effects of Monetary and Fiscal Policy in Classical Framework Classes 25

References: 1) 2) 3) 4) 5) 6)

Mankiw, Macroeconomics Dornbush and Fisher, Macroeconomic Theory Froyen, Macroeconomic Theory Branson, Macroeconomic Theory and Policy RGD Allen, Macroeconomic Theory G. Ackley, Macroeconomics

PAPER-II: QUANTITATIVE TECHNIQUES

(Full Marks 100)

This syllabus has been designed to give an idea to the undergraduate students of Economics Honours Course about the application of quantitative tec hniques to economic problems.

Module No.

Group-A: STATISTICS : Marks 50

1. Preliminaries

Definition and meanings of Statistics, Role of Statistics in 8 Economics. Statistical Data -Primary and Secondary Data – Time Series data, Cross – Section data and Pooled data. Variable (discrete and continuous) and Attribute. Population -SampleParameter-Statistic. Methods of collection of Data . TabulationFrequency Distribution - Cumulative frequency distribution (more than and less than Type). Graphical presentation of dataLine diagram, Bar diagram, Histogram, Frequency Curve, Ogives & Pie diagram.

2. Characteristics of Univariate Frequency Distribution

Measures of Central Tendency- Mean (A.M, G.M, H.M), 15 Median, & Mode. Measures of dispersion - Range-Mean Deviation- Quartile deviation -Standard Deviation-Coefficient of Variation. Measures of inequality (income or Asset) -Lorenz curve-Gini Coefficient. Concept of Moments – Raw & Centraltheir relations. Measures of Skewness and Kurtosis.

3.Characteristics of Bivariate Frequency Distribution

Correlation: Bivariate Table-Scattered diagram. Linear 12 Correlation Coefficient (Karl Pearson) -calculation for grouped and ungrouped data-properties-uses-limitations. Spearman’s Rank Correlation Coefficient (without t ie) – Kendall’s Rank Correlation Coefficient. Regression: Two variable linear regression analysis – Least Squares Method - interpretation of regression coefficients relationship between correlation coefficient and regression coefficients. H-5

Classes

University of Kalyani

Honours Course in Economics

4. Time Series

Importance of time series analysis in economics - Components – Determination of Regular Trend (Fitting Straight line trend & exponential growth equation) and Seasonal Variation (Moving Average Method)- Forecasts.

5. Index Numbers

Purpose and uses of index number. Concept- price relative- 8 quantity relative- value relative. Laspeyer’s - Paasche’s and Fisher’s indices. Fixed base and Chain base index -base change. Concept and Uses of Consumer Price Index (CPI), Wholesale Price Index (WPI) & Producer Price Index (PPI). Problems in the construction and limitations of index n umbers. Tests for ideal index number.

7

References 1. Goon, A.M., M.K. Gupta and B. Dasgupta (2002). Fundamentals of Statistics, Vol.I & Vol. II, The World Press Ltd., Calcutta. 2. Nagar, A.L. and R.K. Das (1997). Basic Statistics, Oxford University Press, Bombay. 3. Croxton, F., D. Crowden and S. Klein (1973). Applied General Statistics, Prentice Hall of India, New Delhi. 4. Kendall, M.G. et al. The Advanced Theory of Statistics , Vol.I, II, III Griffin (latest edition). 5.Gupta, S.C. and V.K. Kapoor (1993). Fundamentals of Applied Statistics, S. Chand & Sons, New Delhi. 6. Boven, E. and N. Starr. (1985), Basic Statistics for Business and Economics- Mc Graw Hill (International). 7. Yule, G. and M. Kendall, Introduction to the Theory of Statistics. 8. Economic Survey, Govt. of India, 2004 -05 (for compilation and uses of different indices). Additional References:

1. N. G. Das - Statistical Methods- Vol. I & II 2. J. Sarkhel and S. K. Dutta –An Insight into Statistics, Vol.I & II

Group-B: Mathematical Economics

(50 Marks)

Module No.

Descriptions

1. Basic Concepts with Economic illustrations

Role of Mathematics in Economics Analysis, Concepts of Variables, Constants, and Parameters, A.P. and G.P., The real number system Functions, Types of function – Straight Line, rectangular hyperbola, parabolic, circular, exponential and logarithmic and their geometrical representations, Slope of the Line, Inverse function, Homogeneous function, Homothetic function, Equations and identities, inequalities, Systems of Equations. H-6

No. of Classes 10

University of Kalyani

Honours Course in Economics

2. Calculus and its applications

One and Several (but emphasis should be on two ) variable 25 functions. Differential Calculus: Concepts of first and second order derivatives, rules of derivatives-addition, subtraction, product and division, and derivatives of functions ; Concepts of partial derivatives Maxima and Minima: unconstrained optimization, necessary and sufficient conditions for local optima, notions of concavity and convexity of functions, points of inflexion. C onstrained optimization (equality constraints) -the method of Lagrange multipliers, interpretation of the necessary conditions and of the Lagrange multiplier, sufficient conditions -the Bordered Hessian. Elasticities. Economic examples -Equilibrium of a firm and consumer. Interrelationships among total, marginal and average costs and revenues. Integral Calculus : Rules of Integration, Methods of Integration, Integration by parts and Definite integrals - area under curves. Economic examples- measures of consumer surplus, present discounted values calculation and elements of investment analysis. Difference and Differential Equations: Nature, Solution of First Order Equations-homogeneous and non-homogeneous. Economic examples- Cobweb and other simple Dynamic Models .

3. Linear Algebra & Input-Output System

Various types of Matrices and Matrix operations. Determinants. 15 Inverse of a Matrix. Rank of Matrix, Crammer’s Rule. Solution of simultaneous Equations (upto 3 variables), Basic concepts of Linear Programming Problems (LPP)- Solutions -Graphical method, Duality. Input-Output Analysis. (Static open models only)

References: 1. Alpha C. Chiang: Fundamental Methods of Mathematical Economics (3rd edition) McGraw-Hill (1984). 2. Knut Sydsaeter and Peter J. Hammond :Mathematics for Economic Analysis (Pearson Education) (2003). 3. Carl Simon and Lawrence Blume: Mathematics for Economics, Norton (1994). 4. H. Scott Bierman and Luis Fernandez: Game Theory with Economic Applications (2 nd edition) Pearson Education (2003). 5. R.G.D. Allen: Mathematical Analysis for Economists , Mc Millan, London (1980). 6. G. Archibald and R. Lipsey: An Introduction to Mathematical Treatment of Economics. AITBS (1987).

H-7

University of Kalyani

Honours Course in Economics

Additional References:

1. A. Henderson and R. Quandt – Microeconomic Theory, McGraw Hill, International Edition. 2. H. Gravelle & R. Rees- Microeconomics (2 nd edition), Pearson Education, Low Price Edition (2004). 3. Hal R. Varian- Itermediate Microeconomics : A Modern Approach, fourth edition, (EWP), W. W. Norton. 4. W. H. Branson – Macro-economic Theory and Poligy. AITBS. 5. Taro Yamane: Mathematics for Economists, Prentice Hall of India, New Delhi (1975). 6. B.C. Mehta and G.M.K. Madnani: Mathematics for Economics, Sultan chand and Sons, N. Delhi (1992). 7. Badal Mukherji and V. Pandit – Mathematical Methods for Economic Analysis, Allied Publishers, Second edition (1989). Jaydeb Sarkhel and Anindya Bhukta: An Introduction to Mathematical Techniques for Economic Analysis, Book Syndicate, Kolkata.

PART - II Paper III: Economic Theory II

(Full Marks 100)

Group –A: Microeconomics

(50 Marks)

Unit 1: Monopoly (a) (b) (c) (d) (e) (f) (g) (h) (i)

Average Revenue and Marginal Revenue Monopolist’s output decision The effect of tax on monopoly output and price Multiplant Monopolist Price discrimination – First and Second Degree - Two part tariff – Third Degree Monopoly Power – Mark-up Pricing Social cost of monopoly Dead-weight loss Natural Monopoly Classes 10

Unit 2: Monopolistic Competition (a) (b) (c) (d) (e)

Monopolistic Competition and Differentiated Products Concepts of Industry and Group Product Differentiation and Demand Curve Equilibrium of the firm – short and long run Competition and Economic Efficiency Classes 10 H-8

University of Kalyani

Honours Course in Economics

Unit 3: Oligopoly (a) (b) (c)

Competition among the firms – strategic interactions and conjectural variations Alternative models of oligopolistic behaviour – Cournot, Bertrand and Stackelberg, Sweezy Collusion

Unit 4: Market of Inputs (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) (l)

Competitive Factor Markets Demand for inputs (one and several factors) Market demand curve Supply of input to a firm Market Supply of Inputs Equilibrium in a competitive factor markets Marginal Productivity Theory of Distribution Homogeneous Production Function and Adding Up Result Economic Rent Factor markets with monopoly power Monopsony power Bilateral Monopoly Classes 10

Unit 5: General Equilibrium and Welfare Economics (a) (b) (c) (d) (e) (f) (g) (h) (i) (j)

Interdependence in the economy 2 persons 2 goods Pure Exchange Model – Edgeworth Box Diagram Contract Curve Existence of Equilibrium – offer curve Walras’ Law General Equilibrium with production – 2 good 2 factor case Contract curve Production Possibility Frontier Pareto optimality Externalities in consumption and productio n – market failure Classes 20

Unit 6: Markets with Asymmetric Information (a) (b) (c) (d)

Quality Uncertainty and market failure Problems of Adverse Selection of Risk and Moral Hazard Adverse Selection and signaling mechanism (Job Market Signaling) Moral Hazard and Incentive Designing (Managerial Incentives in an Integrated Firm) Classes 10 H-9

University of Kalyani

Honours Course in Economi cs

References: R. S. Pindyck and D.L. Rubenfeld, Microeconomics, Pearson Education Ferguson and Gould, Microeconomic Theory, H.R. Varian, Intermediate Microeconomics, EWP

Group –B: Macroeconomics

(50 Marks)

Unit 1: Behaviourial Foundations of Ag gregate Models: Consumption Function (a) (b) (c) (d) (e) (f) (g) (h) (i)

Consumption Function Keynesian Absolute Income Hypothesis Linear Form of Keynesian Consumption Function Stability of Marginal Propensity to consume Short and Long run Consumption Function Estimates Relative Income Hypothesis Permanent Income Hypothesis Life Cycle Hypothesis Empirical Evidence

Classes 10 Unit 2: Behaviourial Foundations of Aggregate Models: Investment Function (a) (b) (c) (d) (e) (f) (g) (h)

Some Basic Concepts Capital and Investment Gross and Net Investment Autonomous and Induced Inv estment The Investment Decision The Net Present Value (NPV) Method Neo-classical Theory of Investment Keynesian Theory – Marginal Efficiency of Capital – Difficulties with the concept of marginal efficiency of capital Classes 10

Unit 3: Behaviourial Foundations of Aggregate Models: Money Demand Function (a) (b) (c) (d) (e) (f)

Definition of Money Function of Money Demand for Money Components of Demand for Money – Keynesian Theory of Transaction, Precautionary and Speculative Demand for Money Baumol-Tobin Approach to the Transac tion Demand for Money Tobin’s Theory of Demand for Money as an Asset Classes 10 H-10

University of Kalyani

Honours Course i n Economics

Unit 4: Money, Banking and Finance (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) (l) (m)

Supply of Money High-Powered Money Money Multiplier Commercial Banking Principles Central Bank and Technique of Monetary Control Money, Banking and Capital Market in India Money Market Reserve Bank and Money Supply Commercial Banking in India Non-bank Financial Intermediaries in India Banking Sector Reform Capital Market in India Capital Market Reform Classes 20

Unit 5: Inflation and Unemployment: (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) Unit 6: (a) (b) (c) (d)

Inflation – Measures, types and effects Classical Theory of Inflation – Quantity Theory of Money and Inflation Keynesian Theory of Inflation Concept of Inflationary Gap Unemployment and Inflation – Stagflation Demand pull and Cost push inflation – interaction between demand pull and cost push inflation Measures of controlling inflation Unemployment – Natural Rate of Unemployment Philips Curve and NAIRU Short and Long Run Philips Curve Classes 10 Growth of Output and Cyclical Fluctuation: Trend of output growth – Sources of Growth in Real Income Growth Theories – Harrod-Domar Model Accelerator Theory of Investment Samuelson’s Multiplier Accelerator Model Classes 10

References: 1) Mankiw, Macroeconomics 2) Dornbush and Fisher, Macroeconomic Theory 3) Froyen, Macroeconomic Theory 4) Branson, Macroeconomic Theory and Polic y 5) RGD Allen, Macroeconomic Theory 6) G. Ackley, Macroeconomics 7) S.B.Gupta – Monetary Economics 8) L.N. Bhole – Financial Markets and Institutions in India H-11

University of Kalyani

Honours Course in Economics

Paper IV: Advanced Statistical Methods and Public Finance (Full Marks 100) PAPER IV: GROUP A ADVANCED STATISTICAL METHODS – 50

Module No. 1. Probability and Probability Distributions

2 Theory Sampling

No. of Classes

Probabilty: Concept of Sets-Random experiment-Sample Space and 14 events- probability of an event; addition and multiplication theorems; conditional probability and independence of events. Bayes theorem. Probability Distributions: Random variables (discrete & continuous) Mathematical expectation - mean and variance of a random variable. Probability mass function, Probability density function. Probability distribution-Joint, Marginal and Conditional Distributions, Independence of random variables, Binomial, Poisson and Normal (characteristics and uses). Definition and uses of Standard Normal -tChi square & F distributions.

of Sampling vs. complete enumeration, Methods of sampling,. 4 Simple Random Sampling (SRS) – SRSWR & SRSWOR, Concept of Stratified Random Sample, Practical methods of drawing a random sampling.

3. Statistical Inference

Estimation: Sampling distribution of a statistic; sampling error and 15 standard error of a statistic with special reference to the mean; Methods of estimation (OLS & MLE) -Point and interval estimation of parameters; properties of an estimator - unbiasedness, minimum variance, efficiency and consistency. Testing of Hypothesis: Concept of null and alternative hypothesis simple and composite hypothesis, Type I and Type II errors – meaning of level of significance and power of the test, one tail and two tail test –confidence interval for a single mean and variance under normality. Chi-square test for goodness of fit.

4.Introduction to Econometrics

Definition, Scope and Goals of Econometrics - Simple Linear (2 15 Variable) Regression Model and its assumptions - significance of the stochastic disturbance term-Method of Ordinary Least Squares Derivation of the normal equations, standard error of regression coefficients- the Coefficient of Determination - Simple tests of hypothesis on regression coefficients -economic interpretations of regression results.

H-12

University of Kalyani

Honours Course in Economics

5. Vital Concept of vital events-fertility, mortality & morbidity. Data 12 sources. Rate of vital event – Measurement of mortality (Crude Statistics death rate (CDR), Specific death rate (SDR), Standardized death rate (STDR), Infant Mortality Rate (IMR) -Neo-natal & Post-natal. Life Table – description, construction & uses. Measurement of fertility – Crude birth rate (CBR), General fertility rate (GFR), Age Specific fertility rate (ASFR), Total fertility rate (TFR). Measurement of population growth – Crude rate of natural increase, Vital index, Gross reproduction rate (GRR), Net reproduction rate (NRR). References. 1. Chou, Y. (1975). Statistical Analysis, Holt, Reinhart, Winston, New York. 2. Cramer, H. (1970). Mathematical Methods of Statistics , Princeton 3. Croxton, F., D. Crowden and S. Klein (1973). Applied General Statistics, Prentice Hall of India, New Delhi. 4. Gujarati, D.- Basic Econometrics, Mc Graw Hill (latest edition). 5. Goon, A.M., M.K. Gupta and B. Dasgupta -Fundamentals of Statistics, Vol.I & Vol. II, The World Press Ltd., Calcut ta. 6. Gupta, S.C. and V.K. Kapoor - Fundamentals of Applied Statistics , S. Chand & Sons,New Delhi. 7. Hoel, P.G. (1968). Introduction to Mathematical Statistics , Wiley & Sons. 8. P.H. Karmel and M. Polasek, Applied Statistics for Economists (4th edition), Pitman, Australia. 9. Kendall, M.G. et al. The Advanced Theory of Statistics , Vol.I, II, III Griffin (latest edition). 10. Medhi, J. (1992). Statistical Methods: An Introductory Text , Wiley Eastern Ltd., New Delhi. 11. Nagar, A.L. and R.K. Das (1 993). Basic Statistics, Oxford University Press, New Delhi. 12. Hoel, Port and Stone – Introduction to Probability Theory. 13. Rao, C.R. (1965). Linear Statistical Inference , Wiley & Sons. 14. M. M. Murthy – Sampling Theory and Methods. 15. Hogg and Craig – Introduction to Mathematical Statistics 16. A.M. Mathai and P. N. Rathie – Probability and Statistics, Macmillan. 17. Allen Webster, Applied Statistics for Business and Economics , (3rd edition), McGraw Hill, International Edition 1998. 18. Allen, R.G.D., Statistics for Economists, Hutchinson University, Library, 1951. 19. Fisher, R. A. Statistical Methods for Research Workers, Oliver & Boyd, 1954 H-13

University of Kalyani

Honours Course in Economics

20. J. F. Kenny and E. S. Keeping, Mathematics of Statistics, Part I & II, D. van Nostrand Co. Inc., 1956. 21. Raj D., The design of Sample survey, Mc Graw - Hill, 1972. 22. Benjamine, B., Health and Vital statistics, G. Allen & Unwin, 1968. 23. Cox, P. R., Demography, Cambridge Univ. press, 1970. 24. Chatterjee, P.K., Health Studies: Some concepts and Measures, 2003. 25. Pearl, R., Introduction to Medical Biometry a nd Statistics, Saunders, 1940. 26. Hogg and Tanis, Probability and Statistical Inference. 27. John Freund – Mathematical Statistics, prentice Hall. 28. N. G. Das - Statistical Methods- Vol. I & II 29.. J. Sarkhel and S. K. Dutta –An Insight into Statistics, Vol.I & II . 30. P.H. Karmel and M. Polasek, Applied Statistics for Economists (4th edition), Pitman, Australia. 31. M.R. Spiegel (2 nd edition), Theory and Problems of Statistics , Schaum Series.

Group B:

Computer Application in Economics

(50 Marks)

Paper

Computer Applications in Economics

Unit 1:

General Introduction: [The students shall make themselves aware of the meaning of the term and obtain only working knowledge on the following] a) Disk Operating Computer System Configuration: the CPU and its ROM and RAM, Input-Output Devices, Information Storage Devices, and the Motherboard assembling these components – communication ports Com and USB b) Information System: the binary numbers – data measurement in bits and bytes; Data type – numeric, alpha numeric, and string variables, ASCII and hexadecimal codes. c) File Management System: Files Folders (Directory), and Structure of File Management – File name and File extension – path and pathname. Usual types of file – com, exe, bat, bin, dll, txt, nt, and other application specific files. d) Basic of Computer Operation – creation, saving and deletion of files and folders; taking softcopy and hard copy.

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University of Kalyani

Honours Course in Economics

e) Types of Programming Language and Computer Programs: DOS Programs, Utility Programs, Standardized Application Programs. Operating System Configuration with the application programs –the System Registry and initialization. f) System Maintenance: Disk Clean up, Disk De -fragmentation, Registry Clean-up, Disk Formatting and taking Back -up, System Recovery Tools. Unit 2:

Working with Application Programs for Standard Office Procedures: a) Text Editor, Data Processing Spreadsheets, Database management, and Presentation (The student shall learn the operations through hands -on training followed by practical tests)

Unit 3:

Working with Statistical Anal ysis Software: a) Graphical Analysis – plotting bar diagram, pie -chart, time-series, various statistical estimation and testing of correlations, regressions ( The student shall learn the operations through hands -on training followed by practical tests)

Unit 4:

Project Work: a) The student shall require formulate and work independently [forming among themselves groups of maximum 3 students, to be intimated to the instructor] on a primary survey /secondary data based empirical investigation project using statist ical software, and submit the project report within 15 days after the part II examination. The project report should contain its appropriate title, objective and scope, hypotheses, methodology, results obtained and the conclusions, along with the questionnaire designed and the tabulation sheets prepared in the appendix.

Examination Evaluation – Practical Tests 25 marks and Project -work 25 marks i)

Written Test of 25 marks which will comprise of 15 marks theoretical questions and 10 marks for problem solving on the computer.

ii)

The Instructor and/or the Head of the Department shall evaluate the Project Report (25 marks). The marks given to a project report shall be awarded to each of the student in the group which prepared the report.

H-15

University of Kalyani

Paper V:

PART - III International Economics

Honours Course in Economics

(Full Marks 100)

Unit 1: International Trade Theory: (a) (b) (c) (d) (e) (f) (g) (h) (i)

Basis for International Trade Gains from Trade Absolute and Comparative Cost Advantage Theory of Trade Factor Endowments and Trade – Heckscher-Ohlin Model Rybczynski’s Theorem Factor Price Equlaization Theorem Stolper Samuelson Theorem Leontief Paradox Metzler’s Paradox Classes 20

Unit 2: Trade Policy: (a) (b) (c) (d) (e)

Instruments of Trade Policy Tariff and protection in a single country Cost- benefit analysis of tariff Other instruments – Export Subsidy and Import Quota Optimum tariff Classes 10

Unit 3: International Monetary Economics (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k)

National income accounting in an open economy Balance of payments Foreign trade Multiplier Repercussion effects in a two country framework Foreign Exchange Market Models of Exchange Rate Determination and Trade Balance Devaluation Marshall-Lerner Condition J-Curve Income effects of devaluation Elasticity and Absorption Approach of Devaluation Classes 20

Unit 4: International Monetary System and Institu tions: (a) International system of payments – fixed vs. flexible regime (b) Evolution of international monetary system – Gold Standard, Gold Exchange Standard, Bretton Woods System, Current Flexible Rate Regime (c) International Financial Institutions – IMF and World Bank (d) International Trade Institution – World Trade Organization (WTO) Classes 25 H-16

University of Kalyani

Honours Course in Economics

Unit 5: India’s Trade Experience and Pol icy: (a) (b) (c) (d)

Composition of India’s Trade – export, import and balance of payment Trade during the colonial period India’s trade policy since independence Trade liberalization Classes 15

References: 1) 2) 3) 4) 5) 6) 7)

B. Soderstein and G. Reed, International Economics Krugman and Obstfeld, International Economics Peter Kenen, The International Economy M. Chacoliades, International Economics Mishra and Puri, Indian Economy Sunanda Sen, Trade and Dependence, Sage Bimal Jalan, Indian Economy

Paper VI: Public Finance and Economics of Finance Group A: Unit 1:

Public Finance

(50 Marks)

Nature and Scope of Public Finance a) b) c) d)

Unit 2:

(Full Marks 100)

Meaning and scope of Public Finance Distinction between Private and Public Finance Public goods vs. Private goods Economic Role of the Govt.: Allocation, Distribution and Stabilization Function

Role of Govt. further Considered a) Market failure b) Causes and need for Govt. intervention c) Optimum provision of Public goods: Lindahl-Johanen approach, Samuelsonian approach.

Unit 3:

Taxation 1) a) b) c) d)

Source of Public Revenue Taxation-meaning and classification of taxes Characteristics of good tax -structure Major trends in tax revenue of the Central Govt. in Indi a. H-17

University of Kalyani

Honours Course in Economics

2) a) Principles of taxation: Benefit Approach -Lindahl’s voluntary exchange principle. b) Ability to pay approach – Subjective index of Ability – Sacrifice Principles c) Objective indices of ability d) Tax formulae under various Concepts of equal sacrifice.

Unit 4:

Taxation further Considered a) Incidence of taxation (partial equilibrium analysis) – its determinants b) Effects of unit and ad-valorem taxes on out put and prices (under Perfect Competition and Monopoly) c) Effects of taxes on Savings d) Work-effort & Investment

Unit 5:

Public Expenditure a) Meaning b) Classification and principle of public expenditure c) Trends and causes of growth in public expenditure in India

Unit 6:

Public Debt and Financial Administration a) b) c) d) e) f)

Unit 7:

Sources of Public borrowing Effects of public debt Methods of debt redemption Growth of public debt in India Public budget : Economic and Functional Classification of the budget Preparation and passing of budget in India

Types of Taxes a) Direct and Indirect taxes b) Advantages and limitation of these taxes (brief analysis) c) Trends of Direct and Indirect taxe s in India during the Plan period.

References: 1) Musgrave R.A. and P.B. Musgrave, Public Finance in Theory and Practice, McGraw Hill, Kogakusha, Tokyo. 2) Houghton, E.W. (Ed.), Public Finance, Penguin, Baltimore 3) Jha, R. (1998), Modern Public Economics, Routled ge, London 4) Mithani, D.M., Modern Public Finance, Himalaya Publishing House, Mumbai 5) Due, J.F., Government Finance, Irwin, Homewood 6) Reserve Bank of India, Report on Currency and Finance 7) Dalton, Public Finance H-18

University of Kalyani

Honours Course in Economics

Group B:

Economics of Finance

Unit 1:

a) Introduction to various forms of business organization – economic advantages and disadvantages of the different forms Classes 5 a) Introduction to first generation financial commodities (negotiable instruments) – bill of exchange, promissory notes, securities and bonds and debentures, shares, and the nature, function and creation of them in course of the economic activities in the real sector. Classes 10 a) Transaction price of a negotiable instruments bearing future sum – discounting technique to obtain the present value. b) Role of the risk factor and the market rate of the interest in determining the rate of discount. Classes 10 a) Pricing of securities in capital markets – estimating risk and return of individual shares and risk and return of a portfolio of securities b) The capital market risk-return relation and capital asset pricing. Classes 10

Unit 2:

Unit 3:

Unit 4:

Unit 5:

Unit 6:

Unit 7:

(50 Marks)

a) Corporate Financial Statements – the basic structure of balance sheet and profit & loss accounts b) Ratio analysis of financial statements. c) Capital Structure and leverage d) Short-term and Long-term corporate financing alternatives e) Working capital Management Classes 15 a) Evolution of the second generation financia l commodities – introduction to major types of derivatives and mechanism of derivative trading, types of traders Classes 10 a) Introduction to financial investment funds and investment process b) Various types of investment funds and inst itutional investors (Private Equity Fund, Mutual Fund, Hedge Fund, Pension Fund etc.) and securitization process. Classes 10

Paper VII: Economics of Development

(Full Marks 100)

Group A:

Development Theory

(50 Marks)

Unit 1:

a) Meaning of Development – Distinction between growth and development – alternative concepts of economic development: income based approach and capability based approach. b) Broad features of underdevelopment. c) Development experiences of less developed countries in the recent past. Classes 5 H-19

University of Kalyani

Unit 2:

Honours Course in Economics

a)

Stages of Development and Structural Change i. Sector thesis of Fisher and Clark ii. Rostow’s Stages of Growth iii. Industrialization and growth. Classes 7

Unit 3:

a) b) c) d) e)

Population growth and economic develop ment Population growth and the quality of life Facts about world population Theory of demographic transition – the concept of optimum population – The trap models and their criticisms (Model of Nelson & Leibenstein) Classes 8

Unit 4:

a) b) c) d) e) f)

Unit 5:

a) b) c) d)

Unit 6:

Social Sector and Development

a) b) c) d) e) f) g) h) i) j) k) l)

Problems of labour surplus economy Lewis model and its criticism Nurkse’s idea of disguised saving potential Concept of labour surplus (disguised unemployment) Sen’s model Labour migration. Classes 8 Development Strategy Balanced vs. unbalanced growth Importance of agriculture and industry in economic Development Choice of technique in a labour surplus economy. Classes 7

HDI Education, Health And Nutrition Education and Health as joint investm ents on human capital for development Role of human capital on economic development - Evidence from cross-country data Improving health and education Why income alone is not sufficient? Economic impact of education Nature of schooling in developing countri es Health systems and development – measurement and distribution Disease burden Health, nutrition and productivity Investing in health Classes 10

H-20

University of Kalyani

Unit 7:

Honours Course in Economics

Gender and Development

a) b) c) d) e) f) g)

Gender issues and development Women’s education in developing countries – an overview Women in the labour force Women, poverty and development in the Third World Women in developing countries – missing women Grameen Bank – performance and sustainability Empowerment of women Classes 5

Unit 8:

Environment and Development

a) b) c) d)

Environment and Economy interface Sustainable Development Concept of Green GDP Population, poverty and environment Classes 5

References: 1. 2. 3. 4. 5. 6.

A.P. Thirwal, Growth and Development Todaro and Smith, Economic Development Meier and Rauch, Leading Issues in Economic Development Hayami and Godo, Development Economics H. Myint, Economics of Developing Countries Dreze and Sen, Economic Development and Social Opportuinity

Group B:

Rural Development and Entrepreneurial Economics

Unit 1:

Rural development versus agricultural development : a. b. c.

Unit 2: a) b) c) d) e)

(50 Marks)

Decentralised Planning and parti cipatory approach to rural development and role of NGOs Non Agrarian activities and integrated rural development Rural industrialization Credit and Self-help Groups Credit needs for rural non-farm sector Constraints of micro enterprises in rural areas Need for SHG formation Concept of micro credit Self-help groups in India H-21

University of Kalyani

Unit 3: a) b) c) d)

Entrepreneurship Concepts and basic characteristics of entrepreneurship Function and types of entrepreneurs Role of entrepreneurship in economic development Rural entrepreneurship – meaning, need and problems

Units 4: a) b) c) d) Unit 5: a) b) c) Unit 6: a) b) c) d) e) Unit 7: a) b) c) d) e) Unit 8: a) b) c) d) e)

Honours Course in Economics

Theories of Entrepreneurship Motivation theories Maslow’s need hierarchy theory Mclleand’s Acquired Needs Theory Motivating Factors Project Meaning of project Project Report, contents and formulation Importance of balance sheet, cash flow statement and bre ak even point Financial Planning Concept of financial planning Sources of finance Capital structure and its determinants Concept of shares and debentures Venture capital Institutional Support Institutional support to enterprises Small Industries Development Organisation (SIDO) State Small Industries Development Corporation District Industrial Centres Industrial Estates Growth Strategies Growth strategies in small business Expansion and diversification Joint venture Merger Subcontracting H-22

University of Kalyani

Honours Course in Economics

References: 1) Entrepreneurial Development, S.S. Khanka, S . Chand and Company 2) Entrepreneur: Talent, Temperament and Techinque, Bill Bolton and John Thompson, Butterworth and Heinenmann 3) Dynamics of Socio-economic Development, Adam Szirmai, CUP. 4) India: Economic Development and Social Opportunity, Dreze and Sen, OUP 5) Rural Credit and Self-Help Groups, K.G. Karmakar, Sage Publications, New Delhi 6) Rural Industrialization – Development Trajectory in India, S.Sau, Farma KLM

Paper VIII: Indian Economic Problems

(Full Marks 100)

Unit 1:

Historical Background of the Present Indian Economy Performance of the Indian Economy during the British Period Land tenure System and Impact on Indian Agriculture

Unit 2:

Structural Changes in the Indian Economy

Unit 3:

Agrarian Economy and Food a) Importance of Agriculture and Its Growth b) Food Production and Consumption c) New Economic Policy, Commercialisation of Agriculture, WTO and Food Security

Unit 4:

Industrial Economy a) Importance of Industrialisation b) Growth of Industrial Production and Structural Changes in the Indian Industrial Economy c) New Economic Policy, Foreign Direct Investment and Issues of Industrialisation

Unit 5:

Infrastructure a) Road, Air and Water Transport b) Communications c) Irrigation d) Power e) Problems of Infrastructural Development

Unit 6:

International Trade and Balance of Payments a) Structure and Direction of Foreign Trade b) Problems of Balance of Payments c) Issues in EXIM Policy d) Trade Sector Reforms

Unit 7:

National Income, Savings and Capital Formation a) Trend and Structural Changes b) Trend of Saving c) Pattern of Capital Formation H-23

University of Kalyani

Honours Course in Economics

Unit 8:

Poverty in India a) Measure b) Trend and Pattern c) Factors influencing Poverty d) Poverty Alleviation Measures

Unit 9:

Inequality in India a) Measure b) Trend and Pattern

Unit 10:

Employment and Unemployment in India a) Pattern b) Trend

Unit 11:

Planning in India a) Rationale b) Objectives c) Outcome

Unit 12:

Money, Banking and Finance in India a) Trend and Structure b) Financial Sector Reforms c) Review of Monetary Policy d) Specialised Financial Institutions

Unit 13:

Public Finance in India a) Centre-State Financial Relations b) Central and State Government Finances c) Parallel Economy d) Fiscal Sector Reforms

References: 1) Lucas, R.E.B. and G.S. Papanek, The Indian Economy: Recent Development and Future Prospects 2) Jalan,B., The Indian Economy 3) Mishra and Puri, Indian Economics 4) Agarwal, Indian Economics 5) Dutta and Sundaram, Indian Economic s.

H-24