THE UNIVERSITY OF BURDWAN
DEPARTMENT OF ECONOMICS
Syllabus for MA/MSc in Economics
Session 2007-08 onwards
The Department of Economics, University of Burdwan, in view of the changing needs of time and
situation, has decided to modify and update the Examination Structure and Syllabus at the PostGraduate level. The required modification aims to satisfy the needs of the students intending to appear
in NET Examination and also those preparing for jobs in Academic and Corporate fields in a
competitive world. The salient features of the proposed changes are as follows.

We now propose to have a Semester system of Studies, in lieu of the present Annual TwoPart system.

There shall be 4 semesters of 250 marks each, totaling to 1000 marks.

In all there shall be 14 Compulsory Papers of 50 marks each and 3 Optional Papers of 100
marks each, divided into Two halves of 50 marks each (to be chosen from 6 optional papers).
Thus, a student will need to study 20 halves of 50 marks each, of which 14 halves are from
Compulsory papers, and 6 halves are from Optional papers.

The Structure of the course will be as follows:
First Semester:
Second Semester:
5 Compulsory Papers of 50 marks each;
3 Compulsory Papers of 50 marks each and 1 Optional Paper of
100 marks (2 halves of 50 marks each);
Third Semester:
3 Compulsory Papers of 50 marks each and 1 Optional Paper of
100 marks (2 halves of 50 marks each);
Fourth Semester:
3 Compulsory Papers of 50 marks each and 1 Optional Paper of
100 marks (2 halves of 50 marks each);
The details of the papers are given later

The syllabus of the compulsory papers are in line with the UGC model curriculum with minor
changes to suit present circumstances and keeping in mind the current Under-Graduate
(Honours) syllabus in Economics of our University.
In view of the National Academic Calendar and the general practice of allowing students to repeat
papers in which they have not done well, the schedule of the semesters will be as follows:
Semester
I
Class Days
(including Recess)
16 Aug – 05 Jan
(Net 16 weeks class)
Study Leave
Examination
Semester Break
Results
06 Jan – 20 Jan
21 Jan – 02 Feb
3 Feb – 15 Feb
02 Mar
II
16 Feb – 12 July
13 July – 20 July 21 July – 31 July 01 Aug – 07 Aug
(Net 16 weeks class)
31 Aug
III
08 Aug – 24 Dec
(Net 16 weeks class)
19 Jan – 26 Jan
18 Feb
IV
27 Jan – 23 June
24 June – 08 July 09 July – 19 July
(Net 17 weeks class)
–
19 Aug
25 Dec – 08 Jan
09 Jan – 18 Jan
* Note: Non-congruent semester schedule is required to allow unsuccessful students to repeat 1 st
semester papers when they are in 3rd semester and 2nd semester papers when they are in
4th semester.
1
SYNOPSIS OF THE SYLLABUS
Semester
Courses
Optional Papers
I





Microeconomics-I (ECN 101)
Macroeconomics-I (ECN 102)
Statistics (ECN 103)
Mathematical Economics (ECN 104)
Indian Economic Problems (ECN 105)
II




Microeconomics-II (ECN 201)
Macroeconomics-II (ECN 202)
Econometrics (ECN 203)
Optional-I (2 Halves)
Optional-I - Any One from
 Industrial Organisation and Game Theory-I & II (ECN
204A & ECN 205A)
 Demography-I & II (ECN 204B & ECN 205B)
III




Development Economics (ECN 301)
Environmental Economics (ECN 302)
Basic Financial Economics (ECN 303)
Optional-II (2 Halves)
Optional-II - Any One from
 Econometrics-I & II (ECN 304A & ECN 305A)
 Agricultural Economics-I & II (ECN 304B & ECN
305B)
IV
 International Economics (ECN 401)
 Growth & Planning (ECN 402)
 Computer Applications and SurveyProject (ECN 403)
 Optional-III (2 Halves)
Optional-III - Any One from
 Financial Economics-I & II (ECN 404A & ECN 405A)
 Economics of Resource, Environment and Energy-I &
II (ECN 404B & ECN 405B)
The syllabus has been finalized for the papers in the first and second semesters only. Syllabus
for papers in third and fourth semesters will be finalized in due course of time, before
commencement of 2008-09 academic session.
2
DETAILED SYLLABUS
Semester - I
MICROECONOMICS – I (ECN 101)
Full Marks: 50
Lecture Hours: 70
1. Preference Relations:

(18 Lectures)
Axioms of Consumer’s choice, Indifference Curve, Utility function, Utility
maximization, Interior and corner solution, Ordinary and compensated demand
function, Indirect Utility function, Roy’s identity, Expenditure function. Properties
Shephard’s lemma, Additively separable utility function, Quasi-linear utility function.
2. Production function:

(18 Lectures)
Specification of technology, Input requirement set, Properties of technology –
Monotonic, Convex and regular; CD, CES and Leontieff technology. Returns to scale
and scale elasticity, Elasticity of factor substitution, Homogenous and Homothetic
production function, and case of multiple products.
3. Models:

(16 Lectures)
Cost minimization model, Derived demand for inputs, properties of cost function,
Shephard’s lemma. Profit Maximisation – Factor demand and Output supply function,
properties of profit function, Hotelling’s lemma; Duality in production
4. Markets:

(18 Lectures)
Perfect Competition; Profit maximization, Derivation of SS curves under external
economies, tax and welfare implications; Monopoly, welfare and output, Quality
choice, Monopsony; Oligopoly Models – Cournot, Bertrand, Stackelberg and
Collusive Oligopoly.
References
Arrow, K. and F. Hahn (1971), General Competitive Analysis, Holder-Day, San Francisco.
Arrow, K. J (1971): Essays in the Theory of Risk Bearing, Chicago: Malkham.
Chipman, J. (1965): "The Nature and Meaning of Equilibrium in Economic Theory" in H. Townsend.
"Price Theory", Penguin.
De Costa, G.C.(1980) Production, Prices and Distribution, Tata McGraw Hill, New Delhi.
Gravell H. and R. Reese (1992), Microeconomics, Longman, London (2nd Edition)
Hilderbrand, W and A. Kirman (1976): Introduction to Equilibrium Analysis, Northern Holland.
Hirshleifer J and J riley (1992): Analysis of Uncertainty and Intonation, Cambridge University Press.
3
Koutsoyiannis, A. (1979) Modern Microeconomics and
Kreps, David M. (l990) A. Course in Microeconomic Theory, Princeton University Press.
Layard, P.R.G. and A W. Walters (1978) Microeconomic Theory. McGraw Hill, New York.
Mass-Colell, A., M. Whinston and J. Green (1995); Microeconomic Theory, Oxford University Press,
New Delhi.
Mukherjee, Anjan (1990):
Walrasian and Non-Walrasian Equilibria, Oxford University, Press,
Oxford.
Sen, A. (1999) Microeconomics; Theory and Applications, Oxford University Press, New Delhi.
Tirole, J. (1988), Theory of Industrial Organization, MIT Press.
Varian, H (2000) Microeconomic Analysis. W.W. Norton, New York
4
MACROECONOMICS – I (ECN 102)
Full Marks: 50
Lecture Hours: 70
1.
Revision of Basic Ideas
 Deriving the Aggregate Demand Curve from the IS-LM Model.
(8 Lectures)

Deriving the Aggregate Supply Curve from the Labour Market.

Supply Side Economics

Putting Aggregate Demand and Aggregate Supply together - The Three-sector Macro
Model.
2.
Unemployment
(6 Lectures)
 The Natural Rate – Types of Unemployment – Full Employment – Costs of
Unemployment
3.
Wage-Unemployment-Inflation Trade-off
(12 Lectures)
 Theories of Inflation – A Brief Review; Demand-pull, Cost-push, Monetary, and
Structural Inflation; Stagflation; Costs of Inflation; Inflation-Proofing the economy.

Why are Wages sticky; The Phillips curve; Lipsey's theoretical rationale behind its
existence; Role of Expectations; Expectations Augmented Phillips Curve; Supply Shocks;
Political Business Cycle Theory
4.
The Supply of Money
(10 Lectures)
 A Mechanistic model of bank deposit determination - RBI approach to money supply the concept of High-powered Money (H) and the H-theory of Money-supply
determination - The money multiplier;
5.

A Behavioural approach of money supply determination – Bank as a Firm

A demand determined money supply process;

Budget deficits and Money supply in an open economy; Control of Money Supply.
Macroeconomic Policies
(10 Lectures)
 Lags in Policy Effects; Expectations and Uncertainty; Activist Policy; Discretionary vs
Rules based Policy; Tools of Fiscal & Monetary Policies; Relative Effectiveness of FP
and MP in a developing country; Policy Mix
6.
Open Economy Macroeconomics
 Balance of Payments; Exchange Rates; Capital Mobility;

(14 Lectures)
The Small Open Economy under Floating and Fixed Exchange Rates - The MundellFlemming Model; Effectiveness of Fiscal, Monetary and Trade policies; Interest Rate
Differentials; The Mundell-Fleming model with changing price level.

The Large Open Economy – A short Run Model - effects of fiscal policy and monetary
policy on the key variables

Export-multiplier and Investment-multiplier in the case of an open economy (Two
country model).
5
7.

Current Debates in Macroeconomics
Imperfect Information and Aggregate Supply;

Random Walk of GDP;

New Keynesian Model of Sticky Prices
(10 Lectures)
References
Ackley, G. (1978) – Macroeconomics: Theory and Policy; (Macmillan)
Branson, W. (1989) – Macroeconomic Theory and Policy; (3rd Ed, Harper & Row)
Dornbush, R. and S. Fischer (2004) – Macroeconomics (9th Ed, Tata-McGraw Hill)).
Jha, R. (1991)– Contemporary Macroeconomic Theory and Policy; (Wiley Eastern)
Levacic, R and A. Rebman (1986) – Macroeconomics; (2nd Ed, Macmillan).
Mankiw, N. Gregory (2000) – Macroeconomics (4th Ed, Macmillan-Worth))
Mankiw, N.G. and D. Romer (eds.) (1991) – New Keynesian Economics; (MIT, Cambridge)
Rakshit, M. (1998), Studies in the Macroeconomics of Developing Countries; (OUP)
6
STATISTICS (ECN 103)
Full Marks: 50
Lecture Hours: 70
1. Probability Theory:

(10 Lectures)
Revision of basic ideas on probability; Theorem of total probability, Matching
problems, Bayes’ theorem – two events, n events, future event; Law of large numbers
– Chebychev’s inequality, weak law of large numbers, Bernoulli’s theorem.
2. Discrete theoretical distributions:

(15 Lectures)
Binomial, Poisson, Negative Binomial, Hypergeometric: For each distribution –
Probability model, mean variance, skewness, Kurtosis, Other important properties
and applications.
3. Continuous theoretical distribution:

(15 Lectures)
Exponential, Normal, Lognormal, Gamma: For each distribution – Probability model,
mean, variance, Skewness, Kurtosis, other important properties, applications.
4. Sampling:

(12 Lectures)
Basic principles of sample survey, different steps in a large scale sample survey,
randomness and bias, Technique of Random sampling, SRSWR and SRSWOR,
Stratified random sampling Variance function, optimum allocation of sample size.
5. Sampling distributions:

(8 Lectures)
Standard normal, chi square, Student’s t, F: For each distribution-- Form of variate
with example, p.d.f, properties (without derivation), uses.
6. Interpolation:

(10 Lectures)
Finite difference; E and Δ operator and their properties, Newton’s backward, forward
and divided difference interpolation formulae, Lagrange formula.
References
Chou, Y. (1975) Statistical Analysis, Holt, Reinhart and Winston, New York,
Croxton, Crowden and Klein (1971) Applied General Statistics Prentice Hall of India, New Delhi.
Goon, A. M., M. K. Gupta and B. Dasgupta (1993) Fundamentals of Statistics, Vols l & 2, WPL
Gupta, S. C. (1993) Fundamentals of Applied Statistics, S. Chand & Sons, New Delhi.
Hogg. R. V. and A. T. Craig (1970) Introduction to Mathematical Statistics (3rd Edition)
Millar, J. (1996) Statistics for Advanced Level, Cambridge University Press, Cambridge.
Nagar, A. L. and R. K. Das (1993) Basic Statistics, Oxford University Press, New Delhi.
Spiegel, M. R. (1992) Theory and Problems of Statistics, McGraw Hill Book Co. London.
Sukhatme, P.V. and B.V. Sukhatme (1970) Sampling Theory of Survey with Applications, Ioa State
University Press . Ames
7
MATHEMATICAL ECONOMICS (ECN 104)
Full Marks: 50
Lecture Hours: 70
1. Optimisation

(15 Lectures)
Static Optimisation: Global/Local; Unconstrained optimization (single variable case) –
First Derivative Test, Second Derivative Test, (Unconstrained optimization) – Multivariable case; Constrained Multi-variable case; Constrained Multi-variable optimization
with Equality Constraints Application of Matrices and determinants; - Lagrange
Multipliers Method; Envelope Theorem; Applications.

Optimal Control Methods: Pontryagin optimization principles – Continuous Model,
Discrete Model; Phase Diagram Approach to continuous Time Control Models;
Applications.
2. Linear Programming

(15 Lectures)
Standard and Canonical Form of LP Problem; Theory of Simplex Method; Simplex
Algorithm – Maximisation Case, Minimisation case; Exceptional Situations in LP
Solution; Duality Theorems; Primal-Dual Relationship; Economic Interpretation of
Duality; Dual Simplex Method; Applications.
3. Sensitivity Analysis

(8 Lectures)
Changes in coefficients of variables in the objective function (C), changes in Right Hand
Side Constants of Constraints (b), changes in Input – Output Coefficients, Addition of
New Constraint; Applications.
4. Transportation

(12 Lectures)
Basic concepts Transportation Tableau, Mathematical Model, Theorems, Initial Basic
Feasible Solution – North-west Corner Rule, Least Cost Method, Vogel’s Approximation
Method, Optimum Solution - ‘u-v’ (MODI) Method, Rationality of u-v’ method, Loop
Formation and Reallocation; Exceptional Cases of Transportation Problem –
Maximisation problem, Prohibited Route, Alternative optima, unbalanced problem,
Degeneracy in Transportation Problem.
5. Non-linear Programming

(10 Lectures)
Kuhn- Tucker Conditions, Graphical Solution, Economic Interpretation of Kuhn – Tucker
Conditions, constraint Qualification, Kuhn-Tucker Sufficiency Theorem; Applications.
6. Game Theory

(10 Lectures)
General Idea – Strategies, Players, Pay-off; Non-zero Sum Game – Some Simple
Examples; Nash Equilibrium – Cournot, Bertrand; Mixed Strategies; Point Concept
of Dominance, Simultaneous Move Game; LP Formulation of Game.
8
References
Allen, R. G. D. (1974) Mathematical Analysis for Economists, Macmillan Press and ELBS. London
Baumol, W. J. (1984) Economic Theory and Operations Analysis, Prentice Hall, Englewood Cliffs,
New Jersey.
Chiang, A. C. (1986) Fundamental Methods of Mathematical Economics, McGraw Hill, New York.
Chiang, A. C. Dynamic Optimization
Dixit, A.K. Optimization in Economic Theory, Oxford University Press, 1989.
Gravell and Reese Microeconomic Theory
Hadley, G. (1962) Linear Programming, Addison Wesley, Publishing Co. Massachusetts.
Kothari, C. R. (1992) An introduction to Operations Research, Vikas Publishing House, New Delhi.
Lancaster, K Mathematical Economics , 1975.
Mustafi, C. K. (1992) Operations Research Methods and Practice. Wiley Eastern, New Delhi.
Silberberg, E. The Structure of Economics
Vygodsku, G. S. (1971) Mathematical Handbook (Higher Mathematics) Mir Publishers, Moscow.
9
INDIAN ECONOMICS (ECN 105)
Full Marks: 50
Lecture Hours: 70
1.
Planning:
(10 Lectures)
 Indication planning Vs Imperative planning overview of strategy of India’s
development plans. Objectives of recent plans, financing the plans, center-State
financial relations.
2.
Agricultural Sector:

(10 Lectures)
Trends in Agricultural production and productivity, Issues in Indian agricultural
policy, agricultural price policy, agricultural taxation, Food Security, Public
distribution system in India, Agriculture and W.T.O.
3.
Industrial Sector:

(10 Lectures)
Trends in Industrial production and productivity, Role of small-scale industries in
Economic development, Development of entrepreneurship in India.
4.
Economic Reforms:

5.
(10 Lectures)
A brief Review and an appraisal. Globalization and its impact in India.
Foreign Sector:

(10 Lectures)
India’s foreign trade – Value, composition and Direction, India’s BOP problem,
Foreign capital and foreign aid.
6.
Structural Changes and Growth:

(10 Lectures)
Occupational structure and economic development – growing importance of the
tertiary sector, an analysis of trend during 1951-2000.
7.
Specific Problems:

(10 Lectures)
Unemployment, Poverty and Inequality; Importance of self-help group and microcredit.
References
Ahluwalia. I.J. and I M D Little (Eds.) (1999) India's Economic Reforms and Development (Essays
in honour of Manmohan Singh), Oxford University Press, New Delhi.
Bardhan, P.K. (9th Edition) (1999) The Political Economy of Development in India, Oxford
University Press, New Delhi.
Bawa, R.S. and P.S. Raikhy (Ed.) (1997) Structural Changes in Indian Economy, Guru Nanak Dev
University Press, Amritsar
Bhaduri, Amit and Deepak Nayyar - Intelligent person’s guide to Liberalisation.
10
Brahmananda, P.R. and V.R. Panchmukhi (Eds.) (200l), Development Experience in the Indian
Economy Inter State Perspectives, Bookwell, Delhi.
Byres, T.J. (Ed.) (1998) The Indian Economy Major Debates Since Independence Oxford University
Press, New Delhi.
Chakravarty, S. (1987) Development Planning; The Indian Experience, Oxford University Press, New
Delhi.
Dantwala, M.L. (1996) Dilemmas of Growth; The Indian Experience, Sage Publication New Delhi.
Datt, R. (Ed.) (200l) Second Generation Economic Reforms in India, Deep & Deep Publications, New
Delhi.
Dutt, R and KPS Sundaram – Indian Economics (Latest Edition)
Government of India, Economic survey (Annual), Ministry of Finance, New Delhi.
Jain A K (1986) Economic planning in India, Ashish Publishing House, New Delhi.
Jalan B. (1992) The Indian Economy - Problems and Prospects. Viking, New Delhi,
Jalan, B (1996) India's Economic Policy - Preparing for the Twenty First Century, Viking, New Delhi.
Joshi, V, and I M D Little (1999) India: Macro Economics and Political Economy, 1964-1991, Oxford
University Press, New Delhi.
Misra and Puri – Indian Economics (Latest Edition)
Morris, Sebastian – Growth and Transformation of Small Firms in India, OUP
Parikh, K.S. (1999) India Development Report-1999-2000, Oxford University Press, New Delhi.
Reserve Bank of India, Report on Currency and Finance(Annual)
Sandesara, J C (1992) Industrial Policy and Planning,1947-1991 Tendencies, Interpretations and
issues, Sage Publications, New Delhi.
Sen, R.K. and B. Chatterjee (200l) Indian Economy Agenda for 21st Century (Essays in honour of
Prof. P.R. Brahmananda), Deep & Deep Publications, New Delhi.
11
DETAILED SYLLABUS
Semester - II
Compulsory Papers
MICROECONOMICS – II (ECN 201)
Full Marks: 50
Lecture Hours: 70
1. Economics of Uncertainty:
(14 Lectures)
 Distinction between risk and uncertainty-Individuals behaviour towards risk- Contingent
Consumption- Von-Neumann –Morgenstern expected utility function- Propertiesuniqueness of the expected utility function – positive affine transformation-consumer’s
equilibrium under uncertainty- utility function and the measures of risk –aversionexample Gambling and Insurance -Risk Aversion- Arrow-Pratt measures of risk aversionabsolute and relative measures- - Convexity of Indifference curves and the shape of VonNeumann-Morgenstern utility function-Allocation of wealth to risky asset-output decision
under uncertainty.
2. Asymmetric Information:
(12 Lectures)
 Economics of Information- Imperfect Information-the market for Lemons-Akerlof’s
Model- Adverse Selection- Moral Hazard- Signaling- the Principal-Agent Model.
3. Exchange Under Uncertainty:
(10 Lectures)
 Risky Asset- Mean-Variance Utility-Measuring risk-equilibrium in a market for risky
asset -Risk Spreading-The Arrow –Lind Theorem- Risk-Pooling and Diversification.
4. Managerial Economics:
(12 Lectures)
 Limit Pricing- Bain’s Model- Managerial Theories of the Firm-Baumol’s theory of Sales
Maximization- Morris’s Model of the Managerial Enterprise-Williamson’s Model of
Managerial discretion-Behaviourial theory of the Firm-Cyert and March.
5.
General Equilibrium:
(12 Lectures)
 Walrasion General Equilibrium- a Pure Exchange Model- An aggregate Excess
demand function- Walras Law- composite commodity theorem-existence of a general
equilibrium- Mechanism for attaining Walrasion general equilibrium-Tatonnment
process- Uniqueness and stability of General equilibrium –Perfect and imperfect
stability.
6. Welfare Economics:
(10 Lectures)
 Social Welfare Functions-The Pareto conditions-Pure Exchange –Pure Production-the
Classical Theorem of Welfare Economics- Public Good and Pareto Optimality-The
Theory of the second Best-Arrow’s Social Welfare function-General Possibility theoremCompensation Principle-Kaldor-Hicks-Scitovsky.
12
References
Hall and Varian: Microeconomic Analysis
Hall and Varian: Intermediate Microeconomics
Silberberg and Suen: The structure of Economics-a mathematical analysis
Maddala and Miller: Microeconomics-Theory and Applications
Kreps: A course in Microeconomic Theory
Baumal: Economic theory and Operational Analysis
Koutsoyannis: Modern Microeconomics
Henderson and Quandt: Microeconomic Theory
13
MACROECONOMICS – II (ECN 202)
Full Marks: 50
Lecture Hours: 70
1. Real Business Cycle Theory
(10 Lectures)
(1.1) Some Facts about Economic Fluctuations.
(1.2) Theories of Fluctuations.
(1.3) A Baseline Real Business Cycle Model.
(1.4) Household Behaviour.
(1.5) A Special Case of the Model and its Solution.
(1.6) Productivity Shocks, Consumption and Capital Accumulation.
(1.7) Output and Employment Fluctuations.
(1.8) Unemployment, Heterogeneity, Shocks and Imperfect Information.
2. Consumption
(10 Lectures)
(2.1) Consumption under Certainty: (a) Fisher’s Model of Inter-temporal Optimization.
(b) The Life Cycle Hypothesis. (c) Permanent Income Hypothesis and (d)
Relative Income Hypothesis.
(2.2) Consumption under Uncertainty: The Random Walk Hypothesis.
(2.3) The Interest Rate and Saving
(2.4) Consumption and Risky Assets.
3. Investment
(10 Lectures)
(3.1) Investment and the Cost of Capital
(3.2) Neo-classical Theory of Investment: Jorgenson’s Model.
(3.3) Flexible Accelerator Model: Eisner and Strotz Model.
(3.4) A Model of Investment with Adjustment Costs.
(3.5) Tobin’s q Model: Analysing the Model. (b) Implications.
(3.6) The Effects of Uncertainty.
(3.7) Financial Market Imperfections.
4. Consumption and Investment: Basic Infinite Horizon Model (10 Lectures)
(4.1) The Ramsey Problem: The Keynes Ramsey Rule.
(4.2) The Decentralized Economy.
(4.3) The Government in the Decentralized Economy.
(4.4) Overlapping Generations Model: (a) Two-Period Lives. (b) Social Security and
Capital Accumulation. (c) A Model of Perpetual Youth. (d) Fiscal Policy: Debt
and Deficit Financing.
5. Money
(10 Lectures)
(5.1) Regressive Expectation Hypothesis.
(5.2) Portfolio Balance Approach.
(5.3) A General Equilibrium Baumol-Tobin Model.
(5.4) The Overlapping Generation Model with Money.
(5.5) Real Effects of Open Market Operations
(5.6) Money in the Utility Function.
(5.7) Money: Inside and Outside.
(5.8) Seigniorage and Inflation.
(5.9) Sirdrauski Model.
(5.10) Dynamics of Hyper-inflation.
14
6. Rational Expectation Model
(6.1) Some Basic Issues.
(6.2) Lucas Supply Function.
(6.3) Okun’s Law and Phillips Curve.
(6.4) A Complete Rational Expectations Macro Model.
7. Unemployment
(7.1) A Generic Efficiency-Wage Model.
(7.2) A More General Model.
(7.3) Shapiro-Stiglitz Model.
(7.4) Model of Implicit Contracts.
(7.5) Insider-Outsider Models.
(7.6) Hysteresis.
(7.7) Search and Matching Models.
(10 Lectures)
(10 Lectures)
References
Ackley (1961) - Macroeconomic Theory
Allen (1968) - Macroeconomic Theory
Baumol (1952) - Economic Dynamics
Baumol (1952) - Quarterly Journal of Economics
Baumol (1977) - Economic Theory and Operations Analysis
Begg (1982) - The Rational Expectations Revolution.
Dorfman, Samuelson and Solow (1958) - Linear Programming and Economic Analysis
Duesenberry (1949) - Income, Saving and the Theory of consumer Behavior.
Flemming (1973) - Oxford Economic Papers.
Friedman (1956) in Studies in the Quantity Theory of Money, (ed.), Friedman
Friedman (1957) - A Theory of the Consumption function.
Friend and Kravis (1957) - American Economic review
Hansen (1953) A Guide to Keynes.
Hart (1947), Article in "The New Economics" (ed). Harris.
Hicks (1950), A Contribution to the Theory of Trade Cycles.
Hirshleifer (1956), Quarterly Journal of Economics.
Jha, J. (1999), Contemporary Macroeconomic Theory and Policy, New Age International, New Delhi.
Jhonson Bruce F. (1971), Household Behaviour.
Jhonson Harry G. (1964), Money Trade and Economic Growth.
Jhonson Harry G. (1978) Selected Essays in Monetary Economics
Junankar (1972) Investment
Keynes (1936) The General Theory of Employment, Interest and Money.
Laidler, D.F.W. (1977), Demand for Money: Theory and Evidence, Dum-Don Valley, New York.
Leijonhufvud, A. (1968), On Keynesian Economics and Economics of Keynes, OUP, London.
Lerner (1946), Economics of Control.
15
Levacic, R. and A. Rebman (1986), Macro Economics : An Introduction to Keynesian and NeoClassical Controversies, Macmillan, London.
Mankiw, N.G. and D. Romer (ed.) (1991), New Keynesian Economics, (2 volumes), MIT Press,
Cambridge.
Mathews (1959), The Trade Cycle
Modigliani and Ando (1954) in Post-Keynesian Economics, (ed.) Kurihara
Patnaik, P. Macroeconomics.
Samuelson (1939), Review of Economics and Statistics
Samuelson and Nordhaus (1985), Economics
Schneider (1962), Money, Income and Employment.
Shackle (1949), Expectations in Economics
Sheffrin, S.M.(1996), Rational Expectations, Cambridge University Press, Cambridge.
Taylor, L. (1983), Structuralist Macroeconomics, Basic Book, New Longman
Tobin (1951), in Money, Trade and Economic Growth: Essays in Honor of Jhon H. Williams.
Tobin (1958), Review of Economic Studies,
Turvey (1961) Interest rates and Asset Prices.
16
ECONOMETRICS (ECN 203)
Full Marks: 50
Lecture Hours: 70
1.
Estimation
(10 Lectures)

Point Estimation – Desirable Properties of Point Estimator; Methods of Estimation – OLS,
Maximum Likelihood and their Properties; Cramer-Rao Inequality.

Interval Estimation – Interval Estimators of Population Mean, Population Variance, and
Population Proportion.
2.
Testing of Hypothesis
(10 Lectures)

Neyman-Pearson Theory of Testing of Hypothesis – Type I & Type II Errors and Power of
Test.

Simple Parametric Tests based on τ, t, χ2 and F Distributions – Small Sample Tests, Large
Sample Tests

3.
Analysis of Variance (Fixed Models) – One-way Classified Data; Two-way Classified Data.
Classical Linear Regression Model
(15 Lectures)

Two-variable and
K-variable CLRM – Assumptions, Estimation (using OLS & ML
Method), Properties of Estimators, ANOVA in CLRM, Inference Analysis, Prediction,
Applications.
4.
Violation of the OLS Assumptions
(15 Lectures)

Heteroscedasticity – Meaning, Problems created by its Presence,Testing for its presence,
Estimating Methods in its Presence.

Autocorrelation – Meaning, Problems created by its Presence, Testing for its presence
Estimating Methods in its Presence.

Multicollinearity – Meaning, Problems created by its presence, Testing for its Presence,
Estimating Methods in its Presence.
5.
Regression with Qualitative Regressors
(10 Lectures)

Dummy Independent Variables – When to use; Classification system; Dummy Variable
Trap; Interpretation of estimated coefficients; Class-effect and Interaction-effect;
Applications
6.
Dynamic Econometric Model/Regression with Lagged Variables (10 Lectures)

Sources of Lagged Variables; Consequences of applying direct OLS in Distributive Lag
models; Polynomial Distributed Lag models; Geometric Lag models; Auto-Regressive
Lag models; Applications under different situations

Estimation and Stability of a Dynamic equation; Forecasting using Dynamic Models
17
References
Chou, Y. (1975) Statistical Analysis, Holt, Reinhart and Winston, New York
Croxton, Crowden and Klein (1971) Applied General Statistics Prentice Hall of India, New Delhi.
Goon, A. M., M. K. Gupta and B. Dasgupta (1993) Fundamentals of Statistics, Vols l & 2, The
World Press Ltd. Calcutta.
Gujarati D. Basic Econometrics, 4th ed, Mc Graw Hill, New Delhi.
Gupta, S. C. (1993) Fundamentals of Applied Statistics, S. Chand & Sons, New Delhi.
Hogg. R. V. and A. T. Craig (1970) Introduction to Mathematical Statistics (3rd Edition)
Johnston and Dinardo (1998), Econometric Methods, Mc Graw Hill.
Maddala (1997), Econometrics, Mc Graw Hill, N.Y.
Millar, J. (1996) Statistics for Advanced Level, Cambridge University Press, Cambridge.
Nagar, A. L. and R. K. Das (1993) Basic Statistics, Oxford University Press, New Delhi.
Spiegel, M. R. (1992) Theory and Problems of Statistics, McGraw Hill Book Co. London.
Sukhatme, P.V. and B.V. Sukhatme (1970) Sampling Theory of Survey with Applications, Ioa State
University Press, Ames
18
Optional Papers
1.
INDUSTRIAL ORGANISATION & GAME THEORY – I (ECN 204A)
Full Marks: 50
Lecture Hours: 70
Economics and Game Theory
(10 Lectures)

Situations of Strategic interdependence in interpersonal interactions : Economic
examples: Games and Information ; What is Game Theory About – A brief History of
its emergence- Concept of zero sum game- maxmin – minmax solution,; Broad outline
of Applications: Economics, Political Science, Biology-Ecology, Social Philosophy;
Classes of Games.
2.
Static Games of Complete Information

(15 Lectures)
Normal (Strategic) form representation of non-zero sum games: Iterated elimination of
strictly dominated strategies- concept of Nash equilibrium- Examples of pure Strategy
equilibria: Non existence of pure strategy equilibria; IERSDS, rationalizability and
correlated equilibrium Prisoners’ Dilemma-Multiple Nash Equilibria; Cournot model of
duopoly – final offer arbitration, the problem of the commons- mixed strategies.
3.
Dynamic form representation of games

(15 Lectures)
Extensive Form Games; multistage Games; Extensive Form, Multistage Games with
observed actions - Commitments; Strategies and Equilibria in Extensive Form games
concept of backward induction - Stackelberg game - wages and employment in a
unionised firm. Two stage game of complete but imperfect information – concept of
sub-game; concept of information set; Sub game perfect Nash equilibrium - three
period bargaining game - two stage repeated games; Repeated games with observed
actions Infinitely repeated games – concept of trigger strategy- folk theorem
4.
Static game of incomplete information

(15 Lectures)
Cournot competition under asymmetric information.- normal form representation of
static Bayesian games, concept of static Bayesian Nash equilibrium- battle of the sexes
game in the framework of static game with incomplete information.
5.
Dynamic game with incomplete information

(15 Lectures)
Concept of sequential Rationality, concept of perfect Bayesian equilibrium.
References
Ken Binmore - Fun and Games
Kreps, D. - Game Theory: A Non echnical Introduction
Gibbons : - Game Theory
Fudenberg, D., and J. Tirole, - Game Theory
Oz Shy - Industrial Organization.
19
Optional Papers
INDUSTRIAL ORGANISATION & GAME THEORY – II (ECN 205A)
Full Marks: 50
Lecture Hours: 70
1.
2.
3.
4.
5.
6.
7.
8.
9.
Structure, Conduct, and Performance Paradigm
(8 Lectures)
Cournot Models
(8 Lectures)

Cournot market structure in n seller game; Cournot market structure with heterogeneous
firms
Bertrand model
(8 Lectures)

Price game with differentiated product
Monopoly
(8 Lectuers)

Durable goods monopoly: concept of renting and selling

Natural monopoly

Discriminating monopoly: first degree, second degree and third degree type
Price Regulation
(8 Lectuers)

Concept of price regulation; multi-product pricing, Auman – Shapley pricing, Ramsey
pricing, concept of two part tariff
Location models
(8 Lectures)
Concentration, Merger and Entry deterrence
(8 Lectures)
Advertising
(8 Lectures)

Concept of Advertising, Dorman-Steiner condition, Advertising and Market Structure
Market structure, Innovation and Technology Diffusion
(6 Lectures)
References
Fudenberg, D., and J. Tirole, - Game Theory
Oz Shy - Industrial Organization
Mukherjee, Dilip (ed): Indian Industry: Policies & Performances
Chakraborty, Satya: Issues in Industrial Economics
20
Optional Papers
DEMOGRAPHY – I (ECN 204B)
Full Marks: 50
Lecture Hours: 70
1.
Basic Concepts
(12 Lecturers)
 Meaning, Significance, Importance and Scope of the Study of Demography

Measures of Population changes – Arithmetic, Geometric, Logistic measures;

Population Distribution - Lorenz Curve and Gini concentration ratio

Statistical tools - Measures of Central tendency, Dispersion, Correlation, Bivariate and
Multivariate Regression Analysis, Tests of significance, Application to Demographic
data.
2.
Theories of Population
(12 Lecturers)
 Pre-Malthusian thinking on Population Growth and Development; Malthusian Theory
of Population; Neo-Malthusianism theories; Marxian Position; Theory of Optimum
population; Theory of Demographic Transition; Household’s utility Maximization
theory of Leibenstein; Labour Absorption in Agriculture and Technological Change –
the Boserup Model.
3.
Fertility and Reproduction
 Definition, Concepts and Need to study Fertility;

(12 Lecturers)
Approaches to measure Fertility - Cohort Fertility and Period fertility; Crude Birth
Rate; General Fertility Rate; Age Specific Fertility Rate; Total Fertility Rate; Measures
of Reproduction – Gross Reproduction Rate; Net Reproduction Rate; Simple problems
with these ratios.

Determinants of Fertility – Socio-economic Factors affecting Fertility; Sociological and
Economic Theories associated with Decline in Fertility in Developed and Less
Developed Countries.
4.
Mortality
(12 Lecturers)
 Crude Death Rates; Age-specific Death Rates; Direct and Indirect Standardization of
Rates; Mortality at Birth; Infant Mortality Rate- Different approaches to estimating
Infant Mortality Rate- Sex and Age pattern of Mortality; Levels and Trends in Death
Rates in More and Less Developed Countries; Factors responsible for Decline in
Mortality in Recent past;
5.
Life Tables
(12 Lecturers)
 Life Tables – Meaning, Significance, Structure and Components;

Construction of Abridged Life Tables from Death Registration and Census Data;
Construction of Abridged Life Tables – Reed-Merrell Method; Greville’s Method;
Chiang’s Method; Simple problems.
21
6.
Nuptiality
(10 Lecturers)
 Concepts and Basic Measures of Nuptiality; Estimation of the Single Mean age at
Marriage Levels and Trends in age at Marriage in India; Widowhood Measures;
Divorce Rates
References
Agarwala, S. N., India’s Population Problems, Tata - Mcgraw Hill, New Delhi.
Barcley, G W., Techniques of Population Analysis
Becker, G. S., An Economic Analysis of Fertility in Demographic and Economic Change in
Developed Countries, A Report of NBER, Princeton University Press, Princeton, 1960.
Bhende and Kanitkar, Principles of Population Studies, Himalaya Publishing House, Delhi, 2003.
Bogue, D J., Principles of Demography
Boserup, Easter (1981) Population and Technological Change (University of Chicago Press), pp.3-28.
Easterlin, R. A., An Economic Framework for Fertility Analysis Studies in Family Planning, 1975.
Goon, Gupta & Dasgupta, Fundamental Statistics (Vol-II)
Hayami and Godo: Development Economics
Kapoor, V K, Fundamental of Applied Statistics.
Leibenstein, An Interpretation of the Economic Theory of Fertility, Promising Path or Blind Alley,
The Journal of Economic Literature, XII (2), 1974.
Leibenstein, Economic Backwardness and Economic Growth, Wiley, New York, 1957.
Pathak, J.B and F. Ram: Techniques of Demographic Analysis, Himalaya Publishing House
Saxena, P. C. and Talwar P. P. (Eds.), Recent Advances in the Techniques of Demographic Analysis,
Himalayan Publishers, Bombay, 1988.
Shryock, H., The Methods and Materials of Demography.
Sinha V.C and E. Zacharia: Elements of Demograpnhy
Srinivasan, K., Basic Demographic Techniques and Applications, Sage Publications, New Delhi,
1992.
United Nations Publications, The Determinants and Consequences of population Trends (Series
No.50)
22
Optional Papers
DEMOGRAPHY – II (ECN 205B)
Full Marks: 50
Lecture Hours: 70
1.
Trends in Population and Population Policy
(10 Lectures)
 Recent Trends in World Population - Population trends in India - Concept of the Stable
Population and Stationary Population;

Major demographic features of India’s population – Spatial, Age, Sex, Occupational
Structure of Indian Population; Birth rate, Death rate, Life Expectancy & Infant
Mortality; Trends & Patterns;

Evaluation of family welfare programmes in India - National Population Policies Manpower Planning in India.
2.
Population Projection
(10 Lectures)
 National Projection of Total Population and Age-Sex composition – Mathematical
Methods and Cohort-Component Methods; Methods of National & Sub-National
Projection of Population; Projection of the Economically Active Population
3.
Population and Economic Development
(10 Lectures)
 From Population to Development – Growth Impact; Population and Environment;
Population and Innovation; Markets and Inputs; Population Pressure and Human
Development Issues; Health-Nutrition-Productivity Linkage

From Development to Population – Income, Education, Culture and Fertility;
Household Choice Models
4.
Migration
 Importance of Migration in the study of population;

(10 Lectures)
Internal Migration – Concepts, Determinants and Consequences; Measures of Internal
Migration;

International Migration – Types, Determinants and consequences;

Migration Models – Push-pull Hypothesis, Ravensteins Law of Migration; Todaro’s
Model of Rural-Urban Migration.
5.
Urbanization
(10 Lectures)
 Components of Urban Population Growth; Forces of Urbanization in the Developed and
Developing Countries and the Over-Urbanization Phenomenon;

Trends in Urbanization in India - Measurements of Urban Population Growth;
Urbanization and Urban Structure; Urbanization and Environment.
6.
Ageing
(10 Lectures)
 Age Structure of Population; Age Pyramids and Projections; Individual Ageing and
Population Ageing; Economic and Social Implications of Ageing;
23
7.
Advanced Quantitative Techniques in Demography
(10 Lectures)
 Multivariate Statistical analysis - Discriminant analysis; Factor Analysis; Principal
Component Analysis; Path Analysis; Cluster Analysis; Application of these tools to
Demographic Data
References
Axel Borsch-Supan (2005) “The Impact of Global Aging on Labor, Product and Capital Markets”.
Bjorn Lomborg (2001) The Skeptical Environmentalist: Measuring the Real State of the World (CUP)
Bogue, D.J. (1971), Principles of Demography, John Wiley, New York.
Bose, A. (1996), India’s Basic Demographic Statistics, B.R. Publishing Corporation, New Delhi
Chiang Choubey, P.K. (2000), Population Policy in India, Kanishka Publications, New Delhi.
Coale, A. J. and E. M. Hoover, Population Growth and Economic Development in Low Income
Countries, Oxford University Press.
Dutt, Ruddar and Sundram, K.P.M., Indian Economy
Garrett Hardin (1968) “The Tragedy of the Commons” Science (December) 1243-1248.
Gopalan, C. (1991), "Population Problem: Need for a total views EPW. Vol. 26,September 14, 1991.
James Smith and Barry Edmonston, eds The New Americans: Economic, Demographic and Fiscal
Effects of Immigration (National Academy Press).
Malthus, Thomas (1798), An Essay on the Principle of Population (first edition), Chapters 1-2.
National Research Council (2001) “Our Aging World”, Chapter 2 of Preparing for an Aging World:
The Case for Cross- National Research (National Academy Press, Washington D.C.), pp.3047, 61-65.
Novell, C. (1988), Methods and Models in Demography, Bellhaven Press,London.
Pathak, J.B and F. Ram: Techniques of Demographic Analysis, Himalaya Publishing House
Paul Ehrlich and Ann Ehrlich (1990) The Population Explosion (Simon and Schuster, New York)
pp.9-45.
Ronald Lee (2001) "Immigration: Consequences for Fiscal Developments in the Receiving
Population," in International Encyclopedia of the Social Sciences Neil J. Smelser and Paul B.
Baltes, eds., (Elsevier, Oxford)
Ronald Lee (2003) “The Demographic Transition: Three Centuries of Fundamental Change,” Journal
of Economic Perspectives v. 17, n. 4, Fall 2003, pp.167-190.
Saxena, P.C and P.P Talwar(edi) 1988 : Recent Advances in the Techniques for Demographic
Analysis, Himalaya Publishing House
Sinha, V.C and E. Zacharia : Elements of Demography
Srinivasan, K. (1998), Basic Demographic Techniques and Applications, Sage, New Delhi
24
Srinivasan, K. and A. Shariff (1998), India: Towards Population and Demographic Goals, Oxford
University Press, New Delhi
Sudarshan and A. Shariff (1999), Gender Population and Development, Oxford University Press, New
Delhi.
Visaria, V. (1985), "Infant Mortality in Indian : Level Trends and Determinants" Economic and
Political Weekly, Vol.20,No.32, August 10, 1985.
25