REVISED SYLLABUS

for

M. A. in Analytical and
Applied Economics

Admission Batch 2023-24 onwards

Choice Based Credit System

(Passed in the BoS Meeting dated 23 February 203)

Utkal University, Vani Vihar,

Bhubaneswar, Odisha, India

Page 1 of 34
Page 2 of 34
The department of Analytical and Applied Economics offers two programs at post-
graduate level. Those are (i) MA in A & A Economics and (ii) Ph.D in A & A Economics
/ Economics.

Master of Arts in Analytical and Applied Economics

Eligibility: Bachelor’s degree in 10+2+3 with Economics Honours / Major or other

equivalent modes
Intake Capacity: 88
Selection criteria: Career score and performance in common entrance test.

Program Description and Objectives:

The Master program in A & A Economics was initiated in 1963 as an effort to provide
Economics education to students of Odisha aspiring for a career in economics and public
policy. Currently, the program operates in a Choice Based Credit System (CBCS) mode of
102 credits spread out in four semesters. The course composition includes analytical
courses termed as Hard-Core Economics courses such as Microeconomics,
Macroeconomics, Quantitative Methods, Public Economics, Indian Economy and Basic
Econometrics. These courses are designed to provide a core understanding of the subject.
There are also applied courses termed as Core Electives and Allied Electives which are
designed to enrich understanding on application of economics in various fields influencing
economic and social life of human beings. A detailed description of these courses is given
in the detailed syllabus. In order to make the course more interdisciplinary and to respect
the spirit of choice based system of education, there are also courses called free electives
offered to any student of the university irrespective of their discipline. These courses
include International Finance, Computer Application in Economics, Environmental
Impact Assessment, and Entrepreneurship and Economic Development. The courses are
revised in regular intervals to incorporate new knowledge in economic sciences and their
application. In order to promote research aptitude and orientation, which can help our
students in their higher studies in economics, the programme also includes a five credit
course that requires students to undertake a guided research work and write a dissertation
reporting their findings.

Expected Outcomes of the MA Program

The students who successfully complete the program are expected to have
(1) Exposure to social realities through study tours, data collection through fieldwork
and regular interaction with experts in student seminars.
(2) Exposure to computational packages like Stata, R and SPSS which are widely used
for data analysis in industry.
(3) Better employability through skill building in quantitative research, computational
packages, add-on courses and compulsory Internship program introduced in 2021.
(4) Better writing skills through their engagement in dissertation writing, term papers
and concurrent evaluation activities.

Page 3 of 34
Page 4 of 34
 Course Structure for MA in A & A Economics
SEMESTER I
Paper Code Nature of Paper Paper Name Credit
HCE101 Microeconomics I 05
HCE102 Hard Core Macroeconomics I 05
HCE103 Quantitative Methods I 05
HCE104 Public Economics 05
HCE105 Indian Economy 05

SEMESTER II
Paper Code Nature of Paper Paper Name Credit
HCE201 Microeconomics II 05
HCE202 Hard Core Macroeconomics II 05
HCE203 Quantitative Methods II 05
HCE204 Economics of Growth and 05
Development
CEE201 Core Elective Core Elective I 05
Summer Internship: 02
Minimum of one month duration (Compulsory)

SEMESTER III
Paper Code Nature of Paper Paper Name Credit
HCE301 Hard Core Basic Econometrics 05
CEE301/302 Core Elective Core Elective II 05
AEE301 Allied Elective Allied Elective I 05
FEE301 Free Elective Free Elective I 05
FEE302 Free Elective II 05

SEMESTER IV
Paper Code Nature of Paper Paper Name Credit
CEE401 Core Elective Core Elective III 05
CEE402 Core Elective IV 05
AEE401 Allied Elective Allied Elective II 05
AEE402 Allied Elective III 05
AEE403 Allied Elective IV 05
Total Credit 102

Page 5 of 34
 Available Electives and Allied: Semester-wise
Semester II
Core Electives
1. Economics of Education
2. Monetary Management in an Open Economy
3. Labour Economics

Semester III
Core Electives,
1. International Economics
2. Industrial Economics

Allied Electives,
1. Agricultural Economics
2. Financial Programming
3. History of Economic Thought
4. Managerial Economics

Free Electives
1. International Finance
2. Computational Economics
3. Health Economics
4. Environmental Impact Assessment
5. Entrepreneurship and Economic Development

Semester IV
Core Electives
1. Economics of Environment
2. Dissertation
3. Rural Economics
4. Demography

Allied Electives
1. Financial Institutions and Market
2. Mathematical Economics
3. Advanced Econometrics
4. Economics of Gender and Development
5. Financial Inclusion and Economic Development
6. Economics of Discrimination
7. Financial Economics

Proposed Allied Department

1. Commerce
2. Management
3. PM&IR
4. Statistics
5. Sociology
6. Anthropology
7. Mathematics
8. Psychology

Page 6 of 34
 Semester I
Paper HCE101
Microeconomic Analysis I
Course Objectives
1. To have a theoretical understanding of consumer behavior and decision-making
2. To get acquainted with recent advances in microeconomic theory and acquire the skills to apply the
theoretical knowledge in research
3. To learn about theory of demand, Utility Functions - types and properties; Consumers’ choice
involving risk and uncertainty; Production function – types and properties; Theories of Cost and
general equilibrium theory – An overview.

Course Outcomes:
On successful completion of this course students will be able to:
1. have an understanding of the basic reasoning of Economics and understand the consumption;
production and cost concepts in an analytical way;
2. apply mathematical tools and techniques to study behavior of economic agents;
3. understand the basic principles of General equilibrium theory

Module I
Theory of demand, Utility function Ordinary and Compensated Demand Functions,
Lexicographic Ordering, Slutsky Theorem, Revealed Preference Theory.
Module II
Consumers’ choice involving Risk and Uncertainty: N – M Utility Function, Utility –
Expenditure duality, Indirect Utility function, Inter-temporal consumption, Consumer’s
surplus.
Module III
The production function, Elasticity of substitution, C-D and CES Production function and
their properties, Multiproduct firm and it’s equilibrium.
Module IV
Theories of cost and pricing: various types of short-run and long-run costs; full cost,
average cost and Marginal cost pricing theories. Limit pricing theory of Bain
Module V
Partial and General Equilibrium – Walrarian System, Excess Demand Approach,
Existence, Stability and Uniqueness of equilibrium

Basic Reading List

1. Henderson, J. M. & Quandt, R.E. (1980), Micro Economic Theory – A
Mathematical Approach, Mc Graw Hill Co.
2. Varian, H. R. (1992), Micro Economic Analysis, WW Norton & Co., New York.
3. Gravelle, H & Rees, R (1992) Micro Economics, Pearson Education U.K.
4. Snyder, C & Nicholson, W (2008), Fundamentals of Micro Economics, Cengage
learning, New Delhi.
5. Maddala, G.S. & Miller, E (2004), Micro Economics: Theory and Application,
Tata Mc Graw Hill, New Delhi.

Page 7 of 34
 Paper HCE102
Macroeconomic Analysis I

Learning Objectives:
1. To analyse and establish the functional relationship between economy level/aggregates.
2. To have a proper understanding of macroeconomic theoretical structure
3. To educate the students on different terms and concepts in macroeconomics like national
income accounting, Circular flows, consumption function, investment function, supply
and demand for money etc

Learning Outcomes:
On successful completion of this course students will be able to:
1. Apply the subject knowledge in understanding the working of the economy as well as the
macroeconomic issues and policies.
2. Understand systemic facts and theoretical developments

Module I
Circular Flow of Income in two, three and four sector economy; National Income and
different forms of national income accounts –social accounting, input-output accounting,
flow of funds accounting and balance of payments accounting.

Module II
Theory of Income determination: Classical and Keynes, consumption function, Keynes’
psychological law – implications of the law; short-run and long-run consumption function;
empirical evidence on consumption function; income-consumption relationship – absolute
income, relative income, life cycle and permanent income hypotheses.

Module III
Investment behavior, Marginal efficiency of capital and investment – long run and short
run; the accelerator and investment behavior – impact of inflation; Influence of policy
measures on investment.

Module IV
Financial intermediation – a mechanistic model of bank deposit determination; A
behavioral model of money supply determination, a demand determined money supply
process; RBI approach to money supply; money supply and open economy; control of
money supply.

Module V
Classical approach to demand for money–Quantity theory approach, Fisher’s equation,
Cambridge quantity theory, Keynes’s liquidity preference approach, Derivation of LM
curve. Post-Keynesian approaches to demand for money–Patinkin and the Real Balance
Effect. Approaches of Baumol and Tobin; Friedman and the modern quantity theory.

Basic Reading List:

1. Macro Economics - An Introduction to Keynesian-Neo-Classical Controversies: R.
Levacic and A Rebmann.
2. Macroeconomics: Dorn Busch, Fisher
3. Macroeconomics: Theory and Policies: Richard, T. Froyen
4. Macroeconomics Analysis: E. Shapiro
5. Macroeconomics: N.G. Manikiw

Page 8 of 34
 Paper HCE103
Quantitative Methods I
Course Objectives
1. To train the students to use the techniques of mathematical and statistical analysis, which are
commonly applied to understand and analyze economic problems
2. To emphasize the mathematical methods rather than learning mathematics itself, which are usually
used for understanding economic concepts
3. To learn about the classical techniques involving functions and calculus
4. To gain knowledge about the elements of Game Theory as applicable to real life economic
analysis.

Course Outcome
On completion of this course, a student should be able to
1. express relationship between economic variables mathematically, analyze, optimize and interpret
them;
2. use appropriate techniques to solve problems with calculus and linear algebra.
3. understand the basics of Game theory to resolve economic issues.

Module I
Functions: Types of functions, Limit, Continuity and derivates- Rules of differentiation:
Revenue, Cost demand and Supply functions; Elasticities, Multivariable functions –
Production functions; Partial derivatives; Total differential; Total derivatives; Jacobian
and functional dependence.
Module II
Matrix – Types of matrices, Algebra of matrices- Transposition, Inversion, Rank of a
matrix; Determinants – their properties; Solution of a system of equations; Vector space
and linear independence of vectors; Eigen values and eigen vectors; Introduction to Input
– output Analysis.
Module III
Quadratic forms; Optimization – Hessian and constrained optimization – bordered
hessian- Economic applications; Linear programming – Graphical solution to a linear
programming
Module IV
Integration – Rules of integration; Application to consumer’s surplus and producer’s
surplus; growth rates; Difference equations – Solution of first and second order difference
equations; Domar’s growth model and Lagged market equilibrium models; Differential
equations – Solution to first order linear differential equation, Dynamics of market price;
Non-linear differential equation of first order & first degree.
Module V
Game theory - Concept of Game, Types of Game, Two-persons-zero sum game, Nash
Equilibrium, Prisoner’s dilemma. Maximin - minimax principle; Saddle point solution,
Dominant Strategy, Mixed Strategies; Graphical solution of 2 x n and m x 2 Games

Basic Reading List

1. Chiang, A. C. (1986): Fundamental Methods of Mathematical Economics,
McGraw Hill.
2. Gupta, S. C. (1993): Fundamental Methods of Applied Statistics, S. Chand &
Sons.
3. Speigel, M. R. (1992): Theory & Problems of Statistics, McGraw Hill Book Co
4. Yamane, Taro (1975): Mathematics for Economists, Prentice Hall of India, New
Delhi.
5. Mukherji & Guha (2011): Mathematical Methods & Economic Theory, Oxford
University Press

Page 9 of 34
 Paper HCE104
Public Economics
Course Objectives:
1. To provide the students with thorough analytical understanding to analyze public goods,
externalities, market failures; economics of government expenditure, taxation and public
borrowing;
2. To critically analyze fiscal policies/finance and its implication in Indian Economy.

Course Outcomes
On successful completion of this course, the students will be able to
1. have conceptual clarity on the theories of public goods, public expenditure, public revenue and
public borrowing
2. apply the principles of public economics in analyzing various government policies

Module I: Role of Government

Role of government and fiscal functions-Allocation, Distribution and Stabilization
branch; Private goods, public goods and merit goods; Externalities, Market failure and
public goods, Private and public mechanism for allocating resources; Problems for
allocating resources. Arrow’s impossibility theorem; Theory of club goods, Tiebout
model
Module II Public Revenue
Sources and classification of public revenue- tax and non-tax revenue, direct and
indirect taxes, effects of tax on production, distribution and economic activities;
Principles of tax equity– Benefit principle of taxation, Ability to pay principle,
Efficiency of taxation- Excess burden and deadweight loss, Incidence of taxation-
incidence under perfect competition- partial and general equilibrium analysis,
incidence under monopoly.
Module III Public Expenditure
Growth of public expenditure, Wagner’s law of increasing state activities; Wiseman–
Peacock hypothesis; effects of public expenditure on production, distribution and
economic activities; public sector pricing policy-average cost and marginal cost
pricing, Criteria for public investment- Social cost benefit analysis
Module IV Public Debt and Budget
Sources of public borrowing, effects of public debt, burden of public debt- classical,
Ricardian and others, shifting of debt burden, intergenerational shifting, methods of debt
redemption; Budget: Basic concepts, balanced vs. unbalanced budget, budgetary deficits
and their limitations, budget as an instrument of Economic policy
Module V: Fiscal federalism
Principles of multi-unit finance; Fiscal federalism in India- Vertical and horizontal
fiscal imbalances, corrective measures; Constitutional provisions; Finance
Commission, Devolution of resources and grants; Resource transfer from Union to
States – Criteria for transfer of resources; Theory of Grants- matching vs non matching
grant, general vs earmarked grants

Basic Reading List

1. Cullis, J. & Jones, P. (2009): Public Finance and Public Choice. Oxford
University Press.
2. Musgrave, R. A. & Musgrave, P. B. (2004): Public Finance in Theory and
Practice. Fifth edition, TATA McGraw-Hill
3. Herber, B. P. (1967): Modern Public Finance. Richard D. Irwin, Homewood.
4. Stiglitz, J. E (2000) Economics of the Public Sector. W W Norton
5. Rangarajan, C. and D. K. Srivastava (2011) ‘Federalism and Fiscal Transfers in
India’. Oxford University Press, New Delhi.

Page 10 of 34
 Paper HCE105
Indian Economy
Course Objectives
1. To critically understand the economic growth trajectory, economic policies, and institutional
reforms of modern India
2. To understand four major economics challenges of Indian Economy, i.e. Poverty, Inequality,
Unemployment and inflation
3. To have an in-depth analysis of the sectoral contributions of agriculture, industry and service sector
in India
4. To examine the operation and implementation of fiscal and monetary policy in India

Course Outcomes
On successful completion of this course students will be able to:
1. have a clear picture of the economic growth trajectory, economic policies, and institutional reforms
in India;
2. understand four major economics challenges of Indian Economy, i.e. Poverty, Inequality,
Unemployment and inflation;
3. have an in-depth analysis of the sectoral contributions of agriculture, industry and service sector in
India and
4. understand the nitty-gritty of fiscal and monetary policy.

Module I: Growth and Economic Reforms I

Phase I (1951–65)-Takeoff under a Liberal Regime: era of liberal trade and foreign investment
policies, a restrictive industrial policy regime, agriculture; Phase II (1965–81)-Socialism Strikes
with a Vengeance: the political context, the crisis and failed liberalization episode, strangulation of
industry, foreign trade, factor market regulation-land and labour, nationalization of banks,
agriculture, insurance, savings and investment
Module II: Growth and Economic Reforms I
Phase III (1981–88) - Liberalization by Stealth: Political Context, Deregulation of Industry, Trade
Liberalization, and other Reforms; Phase III (1988 onwards) - Triumph of Liberalization: Political
Context, Shifting of Consensus, Growth and BOP Crisis, New Industrial Policy, Trade
Liberalization
Module III: Major Economic Problems
Poverty: estimations – old and new method, phase I and II – good intentions but poor
performance, phase III and IV – liberalizing reforms and significant decline in poverty,
expenditure growth - the NAS and NSS, farmers suicide; Inequality: forms, inequality at national
level, regional inequality, urban – rural inequality; Unemployment: measurement, trends and
patterns, rural and urban, gender aspect of unemployment, jobless growth, green jobs and growth;
Inflation: trend and pattern, inflation and growth debate, sources of inflationary pressure, food
price inflation
Module IV: Sectoral Growth in India
Agricultural Sector: performance, food security, input market, public investment in agriculture,
agriculture and environment; Secondary Sector: output and employment pattern, productivity,
privatization, regional aspects; Tertiary Sector: what explains rapid service growth, is it
sustainable, Education – infrastructure and outcome, Health – infrastructure and outcome
Module V: Fiscal and Monetary Policies in India
Fiscal Policy of India: fiscal consolidation in India, tax reform, FRBM Act 2003; Monetary
Policy: role of financial sector in economic growth, financial sector reform, money and banking in
pre- and post-1991, capital market

Basic Reading List

1. Panagariya, Arvind (2008): India: The Emerging Giant, Oxford University Press, New
York
2. Acharya, S. and Mohan, R. (Eds.) (2010): India’s Economy: Performance and Challenges,
Oxford University Press, New Delhi.
3. Ahluwalia, I. J. and Little, I. M. D. (Eds.) (1998): India’s Economic Reforms and
Development: Essays for Manmohan Singh, Oxford University Press, New Delhi.
4. Rakshit, M. (2009): Macroeconomics of Post-reform India, Oxford University Press, New
Delhi

Page 11 of 34
 Semester II
Paper HCE201
Microeconomic Analysis II

Course Objectives:
1. To impart theoretical knowledge on decision making under market imperfections
2. To impart theoretical knowledge on distribution.

Course Outcomes:
After completing the course, the students are expected to have;
1. Deeper knowledge on decision making under different market imperfections including oligopoly.
2. Deeper knowledge about the broad paradigm of neo-classical economics.
3. Deeper knowledge about distributional and welfare aspects of economic activities.

Module I
Price and output determination under Monopoly; Price discrimination and dumping
aspects, Bilateral monopoly. Monopolistic competition – product differentiation, Selling
costs and excess capacity – effects of free entry and price competition.
Module II
Non-collusive oligopoly models: Cournot, Bertrand, Stackelberg, Sweezy, Chamberlin,
Collusive oligopoly models: Cartels, price leadership and basing point price systems.
Module III
Critical evaluation of marginal Analysis: Baumol’s sales Revenue maximization,
Williamson’s model of managerial discretion, Marris model of managerial enterprise.
Module IV
Neo-classical Approach, Product exhaustion theorem, Euler’s theorem, distribution
theories in imperfect product and Factor markets.
Module V
Pareto optimal conditions; B-S Social welfare function, Compensation criteria, optimum
welfare under market imperfections and externality.

Basic Reading List

1. Henderson, J. M. & Quandt, R.E. (1980): Micro Economic Theory – A
Mathematical Approach, McGraw Hill Co.
2. Mankiw, (2006): Principles of Micro Economics, Cengage Learning India, New
Delhi
3. Landsburg, S. E. (2008), Pricing, Cengage Learning India, New Delhi
4. Baumol, W. J. (1977): Economic Theory & Operation Analysis, Prentice – Hall of
India, New Delhi.
5. Bilas, R. A. (1985): Micro Economic Theory, McGraw Hill Publishers.

Page 12 of 34
 Paper HCE202
Macroeconomic Analysis II

Learning Objectives:
1. To make the students understand the different terms and concepts in macroeconomics like
Money market and real market, inflation in developing countries, causes of occurrence of
business cycle in a market economy and ways to control them.
2. To expose the students to open economy macroeconomics and the dynamics there in.

Learning Outcomes:
On successful completion of this course students will be able to:
1. Apply the subject knowledge in understanding the macroeconomic dynamics both in a
closed and an open economy.
2. Understand the functioning of a market economy and the ways and means to keep such an
economy functioning properly.

Module I
Keynesian views on interest. The IS-LM model; Change in general Equilibrium: a change
in investment, a change in the money supply, Extension of IS-LM model with government
sector (government spending, taxation); Relative effectiveness of monetary and fiscal
policies; Extension of IS-LM models with flexible wage and flexible prices, Wage-Price
flexible with Pigou Effect and other effects.
Module II
Trade Cycle and its different phases; Theories of Trade cycle: Schumpeter, Kaldor,
Samuelson, Hicks, Goodwin’s model of Trade Cycle, Control of business cycle.
Module III
Classical, Keynesian and Monetarist approaches to inflation’ Structuralist theory of
inflation; Philips curve analysis – short run and long run Philips curve; the natural rate of
unemployment hypothesis; Solow and Tobin’s modified Philips curve.
Module IV
The new classical critique of micro foundations, the new classical approach; Policy
implications of new classical approach – empirical evidence
Module V
The open Economy Macro Economics: International Monetary System- Exchange Rate
and market for foreign exchange; Current exchange rate system; Experience with floating
exchange rates. Monetary and Fiscal Policy in the Open Economy - The Mundell-Fleming
Model; Monetary and Fiscal Policy under Imperfect and Perfect Capital Mobility- Under
fixed and Flexible Exchange Rate.

Basic Reading List

1. Macro Economics - An Introduction to Keynesian-Neo-Classical Controversies: R.
Levacic and A Rebmann.
2. Macroeconomics: Dorn Busch, Fisher
3. Macroeconomics: Theory and Policies: Richard, T. Froyen
4. Macroeconomics Analysis: E. Shapiro
5. Macroeconomics: N.G. Manikiw

Page 13 of 34
 Paper HCE203
Quantitative Methods II
Course Objectives
1. To train the students to use the techniques of probability theory and statistical analysis, which are
commonly applied to understand and analyze economic problems
2. To deals with simple tools and techniques, which will help in sampling theory and designs, data
collection, analysis, theory of estimation and hypothesis testing
3. To initiates the correlation analysis - simple, multiple and partial, and regression analysis - linear
and non-linear.
Course Outcomes
On completion of this course, a student should be able to
1. have fair idea about probability theory which forms the foundation of inferential statistics;
2. understand theoretical distributions and their significance;
3. understand sampling and sampling designs, theory of estimation and hypothesis testing procedure
and
4. fit a linear and some commonly used non-linear curves.

Module I
Deterministic and non-deterministic experiments; Sample space; Addition rule and
complementation rule, Conditional probability, Multiplication rule, Independence of
events; Bayes theorem and problems; Random variable and its probability distribution,
probability mass function and probability density function, expectation and variance of a
random variable, laws of expectation and variance.
Module II
Theoretical probability distributions: Binomial, Poisson and Normal probability
distributions and their properties; Normal approximation to Binomial; Joint, marginal and
conditional probability distributions, independence of random variables, covariance,
results on expectation and variance.
Module III
Basic concepts of sampling, random and non-random sampling; simple random sampling,
stratified random sampling and p.p.s. sampling; concept of an estimator and its sampling
distribution; desirable properties of an estimator.
Module IV
Interval estimation; statistical hypotheses- null and alternative; Type I and Type II errors;
power of a test, confidence intervals and hypothesis testing based on z, t, x2 (chi-square)
and F-distributions.
Module V
Correlation and regression analysis; correlation coefficient and its properties, rank
correlation co-efficient, concept of least squares and the lines of regression; standard error
of estimates; partial and multiple correlation and regression (applications only)’ methods
of estimation of non-linear equations: parabolic, exponential, modified exponential,
Gompertz and logistic relationships

Basic Reading List

1. Chiang, A. C. (1986): Fundamental Methods of Mathematical Economics”,
McGraw Hill.
2. Gupta, S. C. (1993): Fundamental Methods of Applied Statistics, S. Chand &
Sons.
3. Speigel, M.R. (1992): Theory & Problems of Statistics, McGraw Hill Book Co
4. Yamane, Taro (1975): Mathematics for Economists, Prentice Hall of India, New
Delhi.
5. Mukherji & Guha (2011): Mathematical Methods & Economic Theory, Oxford
University Press.

Page 14 of 34
 Paper HCE 204
Economics of Growth and Development

Course Objectives:
1. To learn neoclassical growth models of Solow; Meade; Robinson; Kaldor and Pasinetti
2. To discuss about Cambridge criticism over measurement of capital
3. To understand the importance of endogenous growth theories which highlight on human capital as
an essential component for a country like India
4. To analyse the investment decisions through investment criterion along with its merits and demerits

Course Outcomes:
On completion of this course, a student should be able to
1. to gain knowledge about recent developments in growth and development, and in particular
dynamic growth theories focusing, among other issues, on labor market distortions, pollution and
the cost benefit of projects to be undertaken.

Module I
Theories of Economic Growth: Neo-Classical Growth Models of Solow and Meade; Mrs.
Joan Robinson’s Growth Model; Cambridge Criticism of Neo-Classical Analysis of
Growth – Controversy on the Measurement of Capital.
Module II
Growth Models of Kaldor and Pasinetti; Technological Progress – Embodied and
Disembodied; Hicks- Harrod Neutrality Approach.
Module III
Production Function Approach to Economic Growth; Total Factor Productivity; Growth
Accounting; Transitional Dynamics; Convergence Hypothesis; Golden Rule of Capital
Accumulation.
Module IV
Endogenous Growth, Intellectual Capital, Role of Learning, Education and Research,
Optimal Savings and Ramsay Model, Two Sector Growth Model of Ujawa
Module V
Need for Investment Criteria in Developing Countries, Alternative Investment Criteria;
Cost – Benefit Analysis, Shadow Prices, Project Evaluation and UNIDO Guidelines

Basic Reading List

1. Todaro, M. P. (1994): Economic Development, Longman Publishing, New
York.
2. Acemoglu, D. (1995): Introduction to Modern Economic Growth, Princeton
University Press.
3. Jones, C. I. (2001): Introduction to Economic Growth, W. W. Norton &
Company, New York.
4. Thirwal, A.P. (2003): Growth and Development: With special reference to
Developing Economies, Palgrave MacMillan, New York.
5. Jones, H. G. (1984): Economic Growth, V. N. Reinhold Company, Ltd.
England.
6. Barro, R. J. & Sala – I – Martin, X. (2004): Economic Growth, PHI, New
Delhi.
7. Vanden – Burg, H. (2001): Economic Growth and Development, Mc Graw
Hill, New York.

Page 15 of 34
 Paper CEE201
Economics of Education

Course Objectives:
1. To study the role of economics in evaluating education and education policy
2. To familiarize with educational problems in the context of economic concepts, theories and
techniques
3. To develop an understanding of planning, financing and cost of education
4. To find the link between the educational system and economic development
5. To apply standard economic theories to understand how individuals make education choices
6. To explain and predict education markets and their inefficiencies

Course Outcomes:
On successful completion of the course, students will be able to:
1. understanding of key concepts, issues, theories and models relating to economics of education,
along with empirical evidence on and policy implications of those theories and models and a deeper
understanding of recent research activity;
2. understand methods used by economists to evaluate education policies;
3. understand and Model the Education Production Function;
4. define the return to education and understand its empirical estimates;
5. research and investigative skills such as problem framing and solving and the ability to assemble
and evaluate complex evidence and arguments.

Module I: Economics of Education and Demand for Education

Economics of Education: definition, methods, evidence and policy, Classical Economists and
Education; The demand for education: Education as creation of minimal capabilities, Education as
investment in human capital, The role of individual talent, Imperfect financial markets and the
indivisibility of human capital investment
Module II: Supply of Education
The supply of education: Human capital formation, Class formation and peer effects, Integration
or segregation, Class size, Resource effectiveness, Resource efficiency, Efficiency versus equity
Module III: Educational Financing
Education financing: Demand for education when agents differ in abilities and family incomes,
Collective choice over public or private schooling, Growth and inequality under public and private
schooling, Education financing and school stratification, School voucher as a solution, Subsidizing
or lending; Financing Education in India
Module IV: Production of Education
Education Production Function: concept, estimation, role in policy analysis; Costs of Education:
direct and indirect; Wastage and Stagnation; Benefits of Education: types, measurement; Returns
to Education: Productivity of human capital, Effort-enhancing preferences, Education as a signal
or as a screening device, On-the-job training, Measuring the return on education, Estimating the
return on education
Module V: Educational Planning
Educational planning and economic growth – Cost- benefit analysis; production function models;
education and economic growth: dimensions, sources, contributions. Manpower requirements
approach programming and input-output models. Economics of educational planning in
developing countries with reference to India.

Basic Reading List

1. Checchi, D. (2005): The Economics of Education, Cambridge University Press, New York
2. Psacharopoulos, G. (1987): Economics of Education: Research and Studies, Pergamon
Books Ltd, Oxford
3. Lovenheim, M. & Turner, S. (2018): Economics of Education, Worth Publishers, New
York

Page 16 of 34
 Paper CEE202
Monetary Management in an Open Economy

Course Objectives
1. To establish a link between theory and practice as regards central banking.
2. To provide global best practices on modern central banking.
3. To focus on live cases regarding the implementation of monetary policy in India and
abroad.

Course Outcomes
1. To take the students beyond the textbooks.
2. Improve employability.
3. Increase skill to undertake empirical research on macroeconomics and monetary
management.

Module I: Open Economy Concepts: Treatment of external sector in national

accounts; Balance of payments compilation/adjustments; Foreign exchange market
(bilateral, NEER, REER), exchange rate regimes - covered and uncovered interest rate
parity conditions.

Module 2: Frameworks of Monetary Policy: Monetary targeting; Interest rate

targeting; Inflation targeting in India and abroad.

Module 3: Operating procedure of monetary policy: Institutional arrangements;

Liquidity management; Choice of instruments; Communication policy.

Module 4: Monetary Policy Transmission/Coordination: Channels of monetary policy

transmission; Case studies on the relative effectiveness of alternative channels; Central
bank independence; Areas of coordination; Impact of coordination failure.

Module 5: Monetary Policy Challenges in an Open Economy: Impossible Trinity;

Current/Capital account convertibility; Drivers of capital flows; Exchange market
pressures; Rule-based monetary and fiscal policies; Integrated policy framework for
an open economy; Financial stability.

Basic Readings:
1. Handbook of Monetary Economics, edited by Benjamin M. Friedman and
Michael Woodford,Elsevier, North-Holland, selected topics.
2. Brian Snowdon and Howard R. Vane, (2005). Modern Macroeconomics: Its
Origin, Development and Current State, Edward Elgar Publishing Limited.
3. Critique of the New Consensus Macroeconomics and Implications for India,
(2018) Dr. Dillip M. Nachane, Springer (India) Pvt. Ltd.
4. Report of the Expert Committee to Revise and Strengthen the Monetary Policy
Framework (Chairman: Urjit R. Patel) (January 2014), Reserve Bank of India,
Mumbai
5. Clarida, Gali, and Gertler (1999), ‘The Science of Monetary Policy: A New
KeynesianPerspective’, Journal of Economic Literature, 37, 1661-1707.
6. Hammond, G. (2012), State-of-the-art inflation targeting, CCBS Handbook
No. 29, Bank ofEngland, ISSN: 1756-7270, available online.
7. Barro, Robert J., (1995). Inflation and Economic Growth, NBER Working
Paper No. 5326,October.

Page 17 of 34
 Paper INT201
Summer Internship
Minimum of one month duration (Compulsory)

In its efforts to increase the exposure of the Master degree students of the
department to social realities and to expose them to the realities of the labour market, the
Department of Analytical and Applied Economics proposes an ‘Academic Internship’ as
an integral part of the MA programme. The Internship Certificate will carry 02 (two
credits) for successful completion of a mandatory one-month internship in any
organization engaged in commodity production or service sector. Students are expected to
complete the tenure of internship during the summer vacation after completing their 2nd
Semester course. The necessary skills acquired by students before they can undertake the
internship are be analytical comprehension on micro and macroeconomic problems, basic
mathematical and statistical tools taught in the QT-1 and QT-2 papers, and a paper on
Research Methods and Computing. The basic features of the internship are as below.
• Students with approval from their mentors may start identifying suitable
organisations/institutions and initiate communication with them during
their second semester in the MA Programme.
• The department shall also take adequate steps to create awareness among
potential employers about the internship programme.
• Students can undertake internship in any organisation registered through
Companies Act, Societies Act, government agencies, educational
institutions, professional association of academic bodies, media houses,
banking sector, PRIs and so on.
• At the end of the internship, students need to submit a joining report and
completion certificate verified and acknowledged by the head of the
institution/organization where internship is carried out.

Page 18 of 34
 Semester III
Paper HCE301
Basic Econometrics

Course Objectives
1. To introduce the relevant econometric theory and explaining the theory with examples
2. To understand Classical Linear Regression Models and regression diagnostics
3. To develop an intuitive understanding of the material that will allow these econometric tools to be
utilized effectively and creatively.

Course Outcomes
On successful completion of this Course, students will be able to:
1. learn various basic econometric methods, estimation methods and related econometric theories
2. apply these methods to data or econometric modeling techniques.

Module I
Meaning and scope of econometrics; Two variable linear regression model – its
assumptions, estimation of parameters and properties of estimators; Gauss Markov
Theorem, Coefficient of determination; Analysis of Variance of two variable LRM.
Module II
K – Variable LRM: Estimation of parameters, properties of estimators, Gauss – Markov
theorem; Testing of significance of single co-efficient, Subset of Coefficients: ANOVA;
Adjusted coefficient of determination.
Module III
Prediction in two – variable and K – Variable LRM; Multicollinearity - Nature, detection,
consequences and remedy. Specification Errors and Measurement errors.
Module IV
Heteroscedasticity - Meaning, Consequences, detection and remedy; Generalized Least
square and weighted least square estimation; Auto-correlation: Meaning, Detection,
Consequences and remedy.
Module V
Dummy variable models: Estimation; Testing the structural stability of regression models;
Interaction effects; Seasonal analysis; Piecewise Linear regression

Basic Reading List:

1. Johnston (1991): Econometric Methods, Mc Graw Hill Book Co
2. Koutsoyiarnis, A. (1992): Introduction to Econometrics, OUP
3. Dougherty, C. (1992): Introduction to Econometrics, OUP.
4. Kmenta, J. (1997): Elements of Econometrics, University of Michigan Press
5. Gujarati, D & Sangeetha (2007): Basic Econometrics, Mc Graw Hill Book Co.

Page 19 of 34
 Paper CEE301
International Economics
Course Objectives:
The objectives of this course are to provide the students with thorough analytical understanding of
1. the theories of international trade, gains from trade and its distribution;
2. effects of trade policy and regional trading blocs;
3. BOPs and its adjustments.
Course Outcomes
On successful completion of this course, the students will be able to
1. analyse and apply the trade theories and theories of tariff; apply and analyze the different policies
for BOPs adjustments of developing countries like India
2. comment critically on and participate in current debates on international economic policy.

Module I: Pure Theories of International Trade

Introduction to the International Economics, Trade Based on Absolute Advantage,
Comparative Advantage and Opportunity Costs, Modern Trade Theories: Heckscher-
Ohlin theory of trade. Factor Price Equalization theory, Stolper-Samuelson Theory,
Empirical test of the H-O model: The Leontief paradox, the gains from trade
Module II: New Theories of International Trade:
The Specific factors model, economies of scale, Imperfect Competition and
international trade, Intra-Industry Trade, Effect of changes in tastes, per capita income
and technology on Trade. Kravis Theory of Availability, Trade based on dynamic
technological changes: Technological Gap theory and Product Life Cycle theory
Module III: Economic Growth and International trade
Growth of factors of production: The Rybczynski theorem, Effect of growth on trade,
Economic growth and trade in small country and in large country case, Technical
Progress and International trade, trade as an engine of growth, the immeserising
growth.
Module IV: The Theory of Interventions
Tariffs: Partial and General Equilibrium analysis, Effective Rate of Protection and
optimum tariff, Non-tariff trade barriers: Import Quotas, Voluntary Export restraints,
Export subsidies; Economic Integration: the Customs Union
Module V: Balance of Payments and its adjustments
The Balance of Payments: components of balance of payments; Equilibrium and
disequilibrium, deficit and surplus in the balance of payments, balance of payments
adjustments: Automatic process, expenditure–reducing, expenditure-switching policies
and direct controls, Elasticity estimates and the J-curve, Policies for achieving internal
and external equilibrium
Basic Reading List
1. Chacholiades, M. (1990), The Pure Theory of International Trade, McGraw Hill.
2. Krugman P. R., Obstfeld Maurice and Melitz. International Economics, Pearson Education
3. Batra, R. N. (1975), The Pure Theory of International Trade under Uncertainty, The
Macmillan Press.
4. Bhagwati, J. (Ed.) (1981), International Trade: Selected Readings, Cambridge University
Press.
5. Dana, M.S. (2000), International Economics: Study, Guide and Work Book, Routledge
Publishers.
6. Dunn, R. M. and Mutti, J. H. (2000), International Economics, Routledge Publishers, London.
7. Gandolfo Giancarlo, International Trade Theory and Policy, Springer.
8. Haberler, G. (1937), The Theory of International Trade, Macmillan & Co.
9. Heller, H. R. (1968), International Monetary Economics, Prentice-Hall of India.
10. Kenen, P. B. (1989). The International Economy, Prentice-Hall of India Pvt. Ltd.
11. Kindleberger, C.P. (1977). International Economics, D.B. Taraporevala Sons & Co.
12. Meade, J. E. (1952). A Geometry of International Trade, George Allen and Unwin.
13. Neihans, J. (1984). International Monetary Economics, John Hopkins University Press.
14. Roy, P. N. (1986). International Trade: Theory and Practice, Wiley Eastern.
15. Salvatore, D. (1997). International Economics, Prentice Hall
16. Sodersten, BO (1991). International Economics, The Macmillan Press.
Page 20 of 34
 Paper AEE301
Agricultural Economics

Course Objectives:
1. To impart knowledge on applications of economic theories in agricultural sector,
2. To make students understand the linkage between agriculture and other sectors of the economy.
3. To impart knowledge on new developments in the policy paradigms related to agricultural sector.

Course Outcomes:
After completing the course, the students are expected to have;
1. Deeper knowledge on different theories related to economic development and the agricultural
sector.
2. Increased interest to undertake research activities related to aspects of agricultural sector in India
and Odisha.

Module I
General Models of agricultural development: Frontier model, Conservation model, Urban-
industrial Impact model, Diffusion model, High payoff input model.
Module II
Schultz model of Agricultural Development, Mellor Theory of Agricultural development,
Boserup model of Agricultural development, Lewis & Ranis- Fei Model. Types of
farming & Farm organization
Module III
Agricultural production and productivity – measures of farm efficiency Production
function analysis – Factor use and resource substitution, Size of farms and productivity –
theoretical and empirical issues. Tenancy & share cropping – Efficiency & equity issues.
Module IV
Labour supply in agriculture & inter-locking of factor markets, Agricultural wage:
Determinants & implications, marginalization of rural labour, Role of technology in
agriculture – technical efficiency and labour absorption. Agriculture and environment –
Sustainability issues in agriculture
Module V
Agriculture price policy – objectives, product price & factor price – issue of subsidies in
agriculture, terms of trade between agricultural and industry – implications and Indian
experiences.
Agricultural marketing and measures to improve efficiency in agricultural marketing in
India.
Instability in agriculture - Price instability & cob-web model.
Agricultural Credit Risk & uncertainty in farming and crop insurance – Indian experience.

Basic Reading List

1. Bhaduri, A. (1984): The Economic Structure of Backward Agriculture,
Macmillan, Delhi.
2. Gulati. A. and T. Kelly (1999): Trade Liberalization and Indian Agriculture,
Oxford University Press, New Delhi.
3. Rao. C. H. Hanumanatha (1975): Agricultural Growth, Rural Poverty and
Environmental Degradation in India, oxford University Press, New Delhi.

Page 21 of 34
 Paper AEE301
Financial Programming

Course Objectives
1. Diagnosis of macroeconomic imbalances in an economy.
2. One-year projection of macroeconomic variables - a baseline scenario.
3. Identify economic vulnerabilities and prepare an intersectoral adjustment mechanism
through coordinated adjustment policies.
4. Provide a medium-term policy framework beyond one year.

Course Outcomes
1. Students will understand how macroeconomic policies interact.
2. Improve forecasting ability and employability.
3. Encourage students to undertake empirical research on public policies.

Module 1: Introduction to Financial Programming: Interrelations among macroeconomic

accounts; - Real, External, Government, Monetary and Financial sectors; Overview of
quantitative analysis and forecasting methods.

Module 2: Real/Fiscal sectors and inflation: Forecasting of GDP from the supply side
and forecasting inflation; Analysis and forecasting of basic fiscal accounts - revenues,
expenditures, financing fiscal deficit and debt sustainability. Case studies and
assignments.

Module 3: Balance of payments: Analysis and forecasting of trade, current, capital, and
financial accounts; Trade flows and exchange rate; International investment position;
Current account sustainability norms and exchange rate misalignment; Assessing a
country’s external position- Reserve adequacy and external sustainability.

Module 4: Monetary sector: Analysis and forecasting of monetary aggregates and

depository institutions’ balance sheets; Monetary liabilities and money demand functions;
Basics of monetary instruments and policy, inflation targeting and central bank liquidity
operations; Credit aggregates and their linkages with other sectors.

Module 5: Macro-financial linkages: Analytics of macro-financial linkages; Identifying

financial soundness and systemic risks; Preserving financial stability using
macroprudential policy; Medium-term framework for macroeconomic stability.

Basic Readings:
1. Mussa, M. and M. Savastano, 1999. "The IMF Approach to Economic
Stabilization," NBER Macroeconomics Annual, (Cambridge, Mass: MIT Press).
2. IMF Institute, 2013. Financial Programming and Policies, Part I and II.
3. Frenkel, Jacob A. and Mohsin S. Khan, 1990. Adjustment Policies and Economic
Development, American Journal of Agricultural Economics, Aug., Vol. 72, No. 3,
pp. 815-820.
4. Easterly, William, 2002. Centre for Global Development, Working Paper No.9.
5. Polak, Jacques, 1998. The IMF monetary model at 40. Economic Modelling, Vol.
15, pp. 395-410.
6. Khan, Mohsin S., and Malcolm D. Knight, 1985. Fund-Supported Adjustment
Programs and Economic Growth. Washington DC: IMF Occas. Pap. No. 41, Nov.
19.

Page 22 of 34
 Paper FEE301
International Finance
Learning Objectives:
1. To educate the students on different terms and concepts in international finance like exchange rate
and interest rate determination and forecasting, different forms of derivatives and its uses, different
financial risk in international market,
2. To enhance the skill of the student to understand the activities in international market.
Learning Outcomes:
On successful completion of this Course, students will be able to:
1. appreciate the functioning of the international financial markets and its management and the
determination of different exchange rates.
2. understand the way the foreign exchange market and the derivatives markets and the capital
markets function using futues, options and swaps

Module I
The International Finance: International Business and its modes, Nature, scope and
Importance of International Finance; International Financial Markets and Instruments,
Exchange rate mechanism: Exchange rate quotes, Nominal, real and effective exchange rates,
factors influencing exchange rates, exchange rate determination in spot and forward market.
Module II
Market for foreign exchange and derivatives: Spot and forward market; Forward Market:
Features, Arbitrage, Hedging and Speculation, Futures Market: Features, Hedging and
Speculation, Options Market: Features, Hedging and Speculation, Currency swap and interest
swap.
Module III
Exchange rate determination: Mint Parity theory, Purchasing Power Parity, Monetary Models
of Exchange Rate Determination; the Portfolio Balance Model. International Investment
decision: FDI: theories, cost and benefits of FDI and strategy, capital budgeting: Evaluation
criteria and computation of the cash flow, political risk: meaning and forms, evaluation and
management of political risk, international portfolio investment: benefits, problems and
modes.
Module IV
Foreign Exchange Exposure and its management: Exchange rate forecasting: need and
techniques, Foreign Exchange Exposure: transaction, real operating and translation,
Management of Foreign Exchange Exposure: need, hedging of transaction and real operating
exposure;
Module V
Management of short-term funds: working capital policy; managing cash and near cash assets,
management of receivables and management of inventory. Financing foreign trade: Foreign
trade documentation, modes of payment in international trade, methods of trade financing

Basic Reading List

1. Apte, P.G. (1995): International Finance Management, Tata McGraw-Hill
Publishing. Co. Ltd, New Delhi.
2. Levi, M.D. (1990): International Finance, McGraw-Hill Publishing Company.
3. Levi, M.D. (1996): International Finance, McGraw-Hill, Inc, New Delhi.
4. Kevin, S. (2009): Fundamentals of International Financial Management” PHI,
Learning Pvt. Ltd, New Delhi.
5. Click, R. W. & Coval, J. D. (): The Theory and Practice of International Financial
Management” Pearson Education.
6. Avadhani, V.A. (): International Financial Management” Himalayan Publishing
House.
7. Pibeam, K. (1998): International Financial, McMillan Press Ltd. London.
8. Shapiro, A.C. (1995): Multinational Financial Management, Prentice. Hall of India
Pvt. Ltd.

Page 23 of 34
 Paper FEE302
Computational Economics

Course Objectives:
1. To teach different aspects and steps involved in undertaking a research work in social sciences.
2. To enable the students for using computers for data analysis and thesis writing.
3. To build capacity of the students on using two popular computational packages such as SPSS and
STATA widely used in industry.

Course Outcomes
On successful completion of this Course, students will have:
1. increased ability to observe social realities with the lens of a researcher.
2. increased number of students opting for dissertation in the fourth semester.
3. increased employability of students in research organisations and corporate sector.

This paper is designed to impart the skills related to data analysis and carrying out
independent research activities. The course has potential to enhance the employability of
students passing out from the department of Analytical and Applied Economics, Utkal
University.

The performance of students in the entire course including Module I will be evaluated
through practical mode.

Module I: Fundamentals of Research and Academic Ethics

Writing a research proposal, Key elements
Review of literature: meaning, objectives, types, sources, stages and precautions. Exercise
on wiring a review of literature.
Academic writing, the APA style sheet
Ethical Guidelines for Social Sciences Research in Health adopted by GoI; Plagiarism:
Meaning and types; Why do people plagiarized? How to avoid it?

Module 2: Data Analysis through SPSS

Basics of SPSS, Descriptive Statistics in SPSS, Graphs and Charts in SPSS, Regression
Analysis using SPSS

Module 3: Data Analysis through STATA

Basics of STATA, Descriptive Statistics in STATA, Graphs and Charts in STATA,
Regression Analysis using STATA

Module 4: Data Analysis through EViews

Basics of Eviews, Descriptive Statistics in Eviews, Graphs and Charts in Eviews,
Regression Analysis using Eviews

Module 5: Open Source Softwires for Data analysis (R-Statistics or GRETL)

Basics of R-Statistics/GRETL, Descriptive Statistics in R-Statistics/GRETL, Graphs and
Charts in in R Statistics/GRETL, Regression Analysis using R Statistics/GRETL

Page 24 of 34
 Paper FEE303
Health Economics

Course Objectives
1. To introduce relevant theory of microeconomics and demonstrate its applicability to health care
issues
1. To outline key principles of health economics including efficiency and equity
2. To provides a foundation for and rationale for performing economic evaluation

Course Outcomes:
On successful completion of the course, students will be able to:
1. gain knowledge of the key analytical reasoning and tools of health economics and their normative
foundations and ethical implications; basic economic theories and models of regulation applied to
health care providers as hospitals and long-term care organizations and the health-related
behavioral determinants and an overview of some recent policies aimed at improving the
populations’ lifestyles
2. use economic models to understand behaviors of actors in the health care sector, do analyses of
needs for health care services, make analyses of efficiency and quality of health care organizations,
find and utilize relevant data sources describing and use relevant econometric models for the
analysis of the economic agents’ behaviour
3. attain competence to apply economic concepts and models to the fields of demand for health,
demand for health services, demand for health insurance, provision of health insurance and
provision of health care; competence to describe, analyse and critically address economic aspects
of health care organizations

Module I: Introduction to Health Economics

Health Economics: Definition and Relevance; Health and healthcare; Healthcare as an
economic good; Wants, demands and needs; Economic Methods and Health Economics;
Does Economics apply to health and healthcare; Why health economics?
Module II: The Demand for and Supply of Health and Healthcare
Demand for Health and healthcare: concept, a theoretical and empirical investigation,
determinants; Socioeconomic Disparities in Health; Demand for Insurance and Moral
Hazards; Supply of health and health care: concept, determinants
Module III: Health Production and Development
Health Production: concept and estimation; Health and Development: theory and
evidences
Module IV: Measurement of Health and Health Status
Introduction; Patient Reported; Patient Centeredness; Health Outcomes; Health Summary
Measures; Health Technology Assessment
Module V: Overview of India’s Health Sector
Features of Indian Health Sector; Health Care System in India: history, structure,
programs, infrastructure, health information system; Public Health in India; Financing
Healthcare in India; Health Sector Reform in India

Basic Reading List:

1. Jay Bhattacharya, J., Hyde, T., Tu, P. (2014): Health Economics, Palgrave
Macmillan, UK
2. Krabbe, P. F. M. (2017): The Measurement of Health and Health Status, Elsevier
Inc, London

Page 25 of 34
 SEMESTER IV
Paper CEE401
Economics of Environment
Course Objectives:
The objectives of this course are to provide the students with thorough analytical understanding in the
1. application of economic theories for environmental issues; global environmental externalities and
climatic change
2. valuation of environmental goods; economics natural resources.

Course Outcomes
On successful completion of the course, students will be able to:
1. apply economic principles for applied environmental issues
2. select and apply appropriate economic techniques to solve environmental problems and measure
value of environmental goods.

Module 1: The Theory of Externalities

Pareto optimality and competitive equilibrium; public goods and externalities, public
goods and bads, efficient provision of public goods and bads, pricing of public goods
and bads; Environmental externalities-Pigouvian taxes and subsidies, property rights
and externalities, Coase’s bargaining solution and collective action.
Module 2: The Economics Pollution
Pollution charges and abatement costs, Marketable pollution permits, The theory of
marketable permits, The advantages of marketable permits, Types of permit system,
Permit trading in practice. Tradable pollution permits vs international carbon tax.
Informal regulation and the new model of pollution control. Environmental institutions
and grass root movements; Cooperative Solution to Common Property resources.
Module 3: Measurement of Environmental Values
The concept of total economic value: Use values; Option values and non-use values;
Monetary Valuation techniques – use of market prices, The Hedonic pricing approach,
The contingent valuation method, the travel cost methods; the non-monetary valuation
techniques;
Module 4: Natural Resource Economics
A resource taxonomy, theories of optimal use of exhaustible and renewable resources;
Environmental Kuznet Curve and its critique. Environment and development, The
concept of sustainable development; strong and weak sustainability; the concept of
green GDP
Module 5: Environment Regulation and Policies
Mechanism for environment regulation in India; environmental laws and their
implementation; Policy instruments for controlling water and air pollution and forestry
policy; People’s participation in the management of common and forest lands. The
institutions of joint forest management and the joint protected area management; social
forestry-rationale and benefits

Basic Reading List

1. Kolstad, C. D. (2010): Environmental Economics. OUP.
2. Bhatacharya, R. (2001): Environmental Economics: An Indian Perspective.
OUP
3. Samuelson, P. A. (1995): Diagrammatic Exposition of a Theory of Public
Expenditure. The Review of Economics and Statistics, 37(4): 350-356.
4. Bator, F. M. (1958): The Anatomy of Market Failure, The Quarterly Journal
of Economics, 72(3): 351-379.
5. Buchanan, J. M. & Stubblebine, C. W. (1962): Externality, Economics. New
Series, 29(116), November, 371-384.
6. Mishan, J. E. (1971): The Postwar Literature on Externalities: An
Interpretative Essay, Journal of Economic Literature, 9(1): 1-28.
Page 26 of 34
 7. Baumol, W. J. & Oates, W. E. (1988). The Theory of Environmental Policy,
Second Edition, Cambridge University Press, Cambridge.
8. Coase, R. H. (1960): The Problem of Social Cost, Journal of Law and
Economics, 3: 1-44.
9. Markandya, A. & Richardson, J. (ed.) (2005): Environmental Economics,
Earthscan Publications, London.
10. Ostrom, E. (1997): Governing the Commons: The Evolution of Institutions for
Collective Action, Cambridge University, Cambridge.
11. Shiva, V. et. Al. (1997): The Enclosure and Recovery of the Commons.
Research Foundation for Science, Technology and Ecology, New Delhi.
12. Grossman, G. M. & Krueger, A. B. (1994): Economic Growth and the
Environment, NBER Working paper 4634.
13. Baland, J. & Platteau, J. (1996): Halting Degradation of Natural Resources: Is
there a Role for Rural Communities? Published by Food and Agriculture
Organization of the United Nations
14. Dasgupta, P. & Maler, K. (1997): The Environment and Emerging
Development Issues. Clarendon Press

Paper CEE402
Dissertation

Presentation: 50 Marks and Hardcopy of Dissertation: 50 Marks

Page 27 of 34
 Paper CEE 403
Rural Economics
Course Objectives:
The objectives of this course are to provide the students with thorough analytical understanding of the
1. basic concepts, elements, determinants and theories of rural development
2. policies and strategies for rural development

Course Outcomes
On successful completion of the course, students will be able to:
1. explain and analyse the concepts of rural development
2. critically comment on and participate in current debates on rural development issues in India.

Module I: Concepts and Rural Economy of India

Concepts of rural development; Basic elements of rural development; Need for rural
development; Dilemmas in rural development; Size and structure of rural economy of
India; Characteristics of rural sector of India; Role of agricultural and non-agricultural
sub-sectors in rural economy of India; Challenges and opportunities.
Module II: Paradigms and Determinants of Rural Development
Paradigms of rural development-Theory of Modernization, Theory of Dependency,
Theory of World-Systems, Theory of Globalization, Myrdal’s thesis of ‘spread and
backwash’ effects, Gandhian model of rural development; Determinants of rural
development- output, natural resources, human resources, capital, technology.
Module III: Policies and Strategies for Rural Development
Freedom, control and public policy; Need for and goals of rural development policy;
Hierarchy of policy goals; Globalization and rural development; Sustainable development
strategy for rural development; Policy instruments of rural development.
Module IV: Rural Development Programs in India
Equity-oriented programs; Growth-oriented Programs; Poverty and unemployment
eradication Programs; Social welfare-oriented programs, Infrastructure Development
Programs
Module V: Planning and Organizing for Rural Development
Planning for rural development- functions of planning, decentralization of planning,
micro-level planning, block- and district-level planning; Organizing for rural
development- government organizations, Panchayati Raj Institutions, cooperatives,
voluntary organizations/NGOs, corporations; World Bank and rural development;
Financing rural development- sources, issues, challenges.

Basic Reading List

1. Katar Singh (2009): Rural Development Principles, Policies and Management,
Sage Publication India, New Delhi.
2. Vasant Desai (2015): Rural Development in India, HPH, Bombay.
3. Hunter, G., Bunting, A. H. and Bottrall, A. (1978): Policy and Practice in Rural
Development, English Language Book Society, London.
4. Vasant Desai (1986): Rural Development Programs and Strategies, HPH, Bombay.
5. Vasant Desai (1988): Rural Development Experiments in Rural Development,
HPH, Bombay.
6. Vasant Desai (1988): Rural Development Rural Development through the Plans,
HPH, Bombay.
7. Chambers, R. (1985): Rural Development: Putting the Last First, Longman,
London.

Page 28 of 34
 Paper AEE401
Financial Institutions and Market

Learning Objectives:
1. To educate the students on different terms and concepts in financial institutions and market like
commercial and central bank, monetary policy, money and capital market.
2. To enhance the understanding of the students about organisation, operation and growth of financial
systems.

Learning Outcomes:
On successful completion of this Course, students will be able to:
1. understand the financial system: its structure and functions and equilibrium.
2. understand the way the different rates of interests are determined.
3. appreciate the functioning and importance of different banking and non-banking financial
institutions and their role in a developing economy.
4. explain the role and structure of money and capital markets

Module I
The structure of the financial system- Functions of the financial sector-Indicators of
financial development-Equilibrium in Financial Markets, Financial System and Economic
Development. The Concept of Risk and Return - its type, Risk and financial assets, Risk
and return on assets, Risk-Return trade off-Valuation of Securities.
Module II
Theories of interest rate determination-Level of interest rates-Long period and short
period rates- Term Structure of Interest rates: Administered interest rates- Appropriate
interest rate policy. Development banks- role and functions, Merchant banking; financial
sector reforms in India.
Module III
Functions of Central Bank- the aims and objectives of the monetary policy in developing
countries-Instruments and effectiveness of monetary policy. Proliferation of banking -
Credit creation and its control; Balance Sheet Analysis, Profitability and efficiency of
banks. Role of commercial banks in money market.
Module IV
Role and structure of money market and capital market, Primary and secondary market for
securities. SEBI; its impact on the working of capital market in India; Non-banking
financial institutions- Their growth and impact on India’s economic development.
Module V
Non-Banking Financial Companies: concept and role in financial market-Regulation and
functions of leasing, Hire purchase and Housing Finance Companies-Venture Capital
Companies. Insurance Sector: Objectives, functions, changing role, IRDA and its role and
functions in financial markets.

Basic Reading List

1. Khan, M. Y. (): Indian Financial System, Tata McGraw Hill, New Delhi.
2. Bhole, L. M. (): Financial institutions and Market, Tata McGraw hill, New
Delhi.
3. Gorden & Natrajan (): Financial Market and institutions, Himalaya Publishing
house.
4. Gupta, S. B. (): Monetary Economics.
5. Mishkin, F. S. & Eakins S. G (): Financial Market and institutions, PE, New
Delhi.

Page 29 of 34
 Paper AEE 402
Mathematical Economics
Course Objectives:
1. To impart skills in using mathematics as a language of communication and expression for
economic analysis.
2. To build capacity of students for applying different mathematical tools such as game theory,
linear/non-linear programming and general equilibrium models in economics research.

Course Outcomes:
On successful completion of this Course, students will be able to:
1. increased use of quantitative and mathematical tools in research activities
2. increased employability of students in organisations engaged in economic research.

Module I
Utility Function – Direct and Indirect, Roy’s Identity, N-M Utility Function. Concept of
elasticities, separable and additive utility function, homogeneous and homothetic utility
function, Linear Expenditure system, Index Number.
Module II
CES and VES Production Function, Shephard’s Lemma, Input demand function, Adding
up theorem, Technical progress through Production function, Empirical uses of production
function analysis.
Module III
Single market equilibrium – Marshallian and Walrasian equilibrium condition, lagged
market equilibrium, multimarket equilibrium General equilibrium system of walras and
Debreu, Stability of the conditions of equilibrium.
Module IV
Linear Programming – Primal and dual problems, Duality Theorems, Simplex method and
Revised simplex method; parametric linear programming ; Linear Fractional
programming; Non Liner Programming & Khun – Tucker Condition (KTC )
Module V
Dominance property; Arithmetic method for nxn Games; General solution of mxn
rectangular games, co-operative & non-cooperative games

Basic Reading List

1. Silberberg, E & Suen, W (2001): The Structure of Economics: A Mathematical
Approach, Mc Graw Hill Co., New York.
2. Chiang, A. C. & Wainwright, K (2005): Fundamental Methods of Mathematical
Economics, Mc Graw Hilll Co., New York.
3. Sydsaeter, K & Hammond, P. J (1995): Mathematics for Economic Analysis,
Pearson Education.
4. Kundu K. B. (1971): Welfare Economics; An Introductory Analysis, Nababharat
Publishers, Kolkata.

Page 30 of 34
 Paper AEE 403
Advanced Econometrics
Course Objectives
1. To provide a basic understanding of limited dependent variable models, Simultaneous Equation
Models and Time series Econometric Models
2. To introduce the relevant econometric theory and explaining the theory with examples
3. To develop an intuitive understanding of the material that will allow these econometric tools to be
utilized effectively and creatively.

Course Outcomes
On successful completion of this Course, students will be able to:
1. learn various advanced econometric methods, estimation methods and related econometric theories
2. apply these methods to data or econometric modeling techniques
3. use software packages to estimate econometric models, interpret econometric estimates and analyze
the results.

Module I
Dummy dependent variable models: Estimation using LPM, Logit, Probit and Tobit
models; Multivariate normal Probability distribution – its properties; Hotelling T
distribution.
Module II
Autoregressive and distributed lag models – Koyek’s model, Partial Adjustment model,
Adaptive expectation model; Instrumental Variables; Almon’s approach to distributed lag
models; Causality test – Granger test, Sim test.
Module III
Simultaneous equations models – Introduction and examples; the simultaneous equation
bias and inconsistency of OLS estimators; The Identification problem – Rules of
identification – Order and rank conditions; Methods of estimation of Simultaneous
equation model – Recursive method, ILS,2SLS. System method of estimation of
Simultaneous equation models – 3SLS.
Module IV
Multivariate Analysis: Discriminant Analysis, Principal Component Analysis, Factor
Analysis, Cluster analysis. Panel data techniques – Fixed effect model, Random effect
model, Random Coefficient model.
Module V
Time Series Econometrics – Stationariy, Tests of Stationarity, Unit root, Spurious
regression and co-integration, Dickey Fuller test, Engle – Granger test, Random walk
model; Forecasting with ARIMA model, Box- Jenkins methodology, Vector auto
regression, Problems with VAR modeling – Applications.

Basic Reading List:

1. Johnston (1991): Econometric Methods, Mc Graw Hill Book Co
2. Koutsoyiannis, A, (1992): Introduction to Econometrics, OUP
3. Dougherty, C. (1992): Introduction to Econometrics, OUP.
4. Kmenta, J (1997): Elements of Econometrics, University of Michigan Press
5. Gujarati, D & Sangeetha (2007): Basic Econometrics, McGraw Hill Book Co.

Page 31 of 34
 Paper AEE 404
Economics of Gender and Development
Course Objectives
1. To provide a critical overview of economic theories, methods and economic policy-debates from a
gender perspective.
2. To cover major debates in gender economics relevant to developed and developing countries.
3. To analyse orthodox economic theory and provides students with a gender-critique.
4. To explore alternative feminist economic theory and apply these different theoretical
understandings to concrete examples in the real world.

Course Outcomes
On successful completion of the course, a student should be able to demonstrate the ability to:
1. demonstrate a general understanding of the theoretical debates surrounding the construction of
gender and gender relations in the discipline of economics;
2. critically examine and assess mainstream and heterodox economic theories and policies from a
gender perspective;
3. evaluate the ways in which current economic realities in developed and developing countries have
different effects on men and women; and
4. identify the connections between feminist economic theory and feminist economic reality in
developed and developing countries.

Module I
Gender and Development-Concepts, Patriarchy, Caste, Kinship and implications on
gender, Gender in mainstream Economics- WID, WAD and GAD approach in
development- Basic Needs and Capability Approach. HDI, GDI and GEM, Empowerment
of women: concept and implications.
Module II
Demography and female population- Age structure and sex ratio, Mortality and fertility
rates and declining sex ratio with special reference to India. Gender in ownership and
access to resources, intra household distribution and decision making; Property rights and
land rights for women and implications, Historical trends, land reforms and current
provisions; Women and environment: WED and Eco feminism, Climate change, women
and sustainable development
Module III
Women and work - concepts and valuation: visible and invisible, productive and
unproductive, paid and unpaid work; Economic participation of women in pre-industrial
and industrial societies. Women in labour market-supply and demand for female labour,
female work participation developing countries with special reference to India,
agricultural and non-agricultural activities. Women in formal and informal sector; Gender
wage differential- Theories of wage discrimination and differentials and use of time- use
survey
Module IV
Gender Issues in Poverty - Women and poverty, feminization of poverty, Inclusive growth
and development, Gender inequalities: Access to education, health and other public
services; Social security and Insurance, entitlements and social justice; Women and access
to finance: Micro finance and self-help groups; Women empowerment – concept and
indicators; Development, Migration and women, Technology and women: ownership,
access and implications on gender inequality
Module V
Globalization and Gender in Neo Liberal economics, Smart Economics and Women in
Development Institution framework - engendering development, Women and
macroeconomic policies, Decentralization of governance and empowerment of women in
India; Gender budgeting with special reference to India

Page 32 of 34
Basic Reading List
1. Boserup, E ( 1970): Women’s Role in Economic Development, George Allen and
Unwin, London
2. Seth, M. (2000): Women and Development: the Indian Experience, Sage
Publications, New Delhi.
3. Venkateswaran, S. (1995): Environment, Development and Gender Gap, Sage
Publications, New Delhi.
4. Kabeer, N. (1994): Reversed Realities: Gender Hierarchies in Development
Thought, Kali for Women, New Delhi.
5. Nussbaum, M. (2000): Capability Approach and Human Development,
Cambridge University Press.
6. Mies, M. (1998): Patriarchy and Accumulation on a World Scale: Women in the
International Division of labour, Zed Book, London.
7. Agnihotri, S. B. (2000): Sex ratio in Indian Population: A Fresh Exploration,
Sage Publications, New Delhi.
8. Agarwal, B. (1994): A Field of One’s Own: Gender and Land Rights in South
Asia, Cambridge University Press
9. Sen, A. K. (1990): Gender and Cooperative Conflicts, in Tinker (Ed) ‘Persistent
Inequalities: Women and World Development’, Oxford University Press, New
York.
10. Amsden, A. H. (Ed.) (1980): The Economics of Women and Work, Penguin
Publications.
11. ILO (1998): Women’s Participation in the Economic Activity of Asian Countries,
Geneva.
12. Papola, T. S. and A. N. Sharma (Eds.) (1999): Gender and Employment in India,
Vikas Publishing House, New Delhi.
13. Schultz, T. P. (1988): Education Investments and Returns, in Chenry, H. B. and
T. N. Srinivasan, Handbook of Development Economies North Hollnad, New
York.
14. Ahmed. I. (Ed.) (1985): Technology and Rural Women: Conceptual and
Empirical Issues, George Allen and Unwin, London.
15. Jhabwala, R. and R. K. Subramanya (Eds) (2000): The Unorganized Sector:
Work Security and Social protection, Sage Publications, New Delhi.
16. Narasimhan, S. (1999): Empowering Women: An Alternative Strategy from
Rural India, Sage Publications, New Delhi.
17. Purushothaman, S. (1998): The Empowerment of Women in India: Grassroots
Women’s Network and the State, Sage Publications, New Delhi.
18. Jacobs, Jerry, A. (1995): Gender Inequality at Work, Sage Publications

Page 33 of 34
 Paper AEE 405
Financial Inclusion and Economic Development
Course Objectives:
The objectives of this course are to provide the students with thorough understanding of
1. financial inclusion and exclusion, relation between financial inclusion and economic development
2. role of financial institutions, micro finance and micro insurance in financial inclusion.

Course Outcomes
On successful completion of this course, the students will be able to
1. learn and analyse the dimensions of financial inclusion, the progress of financial inclusion in India
2. analyse the complexities associated with financial inclusion in India.

Module I: Financial Inclusion and Inclusive Growth

Inclusive Growth: Concept, Relevance and Salient Features. A Theoretical Model for
Inclusive Economic Growth in India, Challenges and prospects of inclusive growth in
India. Financial Inclusion: Concepts, Rationale; Financial exclusion, financial inclusion in
India
Module II: Strategy for financial Inclusion
Strategies to extend financial services to vulnerable groups, Measurement of the progress
of financial inclusion, Financial inclusion Index, Determinants of financial inclusion,
Economics of financial inclusion.
Module III: Institutions and Financial Inclusion
Role of Banking System in Financial Inclusion, Financial Inclusion and Social
Banking, Regional Rural Banks, Cooperative Credit Institutions, Reserve bank of
India, Government in financial inclusion, Technology Applications in Banking Sector.
Module IV: Rural Credit and Micro Finance
Rural Credit, Demand and Supply Side Analysis, Institutional Mechanism in India,
Government Policies for Promoting Rural Credit, Micro Finance: Institutions and
Mechanisms, Credit to SHGs, Growth, Prospectus and Challenges, Policy Measures;
Farm and Non-farm credit
Module V: Insurance
Moral Hazard and Adverse Selection Problem in Insurance Market; Benefits and Costs
of Insurance, Micro insurance, The Moral Foundations of Universal Health Insurance,
Evolution of Insurance Market in India. Reforms in Indian Insurance Market

Basic Reading List

1. Karmarkar, K. G., Banerjee, G. D. & Mohapatra, N. P. (2011): Towards
Financial Inclusion in India, Sage Publication
2. Desai, V. (2005): Rural Development in India, Himalaya Publishing House
3. Rohtagi (2010) Rural Banking & Overdues Management, Cyber Tech
Publications
4. Patnaik, U. C. & Mishra, R. N. (1999): Rural Banking in India, Anmol
Publications
5. Bhatnagar, A. (2008): Rural Micro finance & Microenterprise, Concept
Publishing Co.
6. Sohani, A. K. (2009): Financial Inclusion: Perspectives and Country
Experiences, ICFAI
7. Sujatha, B. (2007): Financial Inclusion: Concepts and Strategies, ICFAI
8. Kocchar, S., Chakrabarty, K. C. & Rangarajan, C. (): Speeding Financial
Inclusion, Academic Foundation
9. Sundaram, I. S. (2015): Rural Development, Himalaya Publishing House

Page 34 of 34