syllabus for b.a./b.sc. (honours) economics under

Ravenshaw University, Economics Dept. UG Syllabus under CBCS

SYLLABUS FOR

B.A./B.Sc. (HONOURS) ECONOMICS

UNDER CHOICE BASED CREDIT SYSTEM (CBCS)

Effective from 2016-17

DEPARTMENT OF ECONOMICS

RAVENSHAW UNIVERSITY CUTTACK-753003


SYLLABUS FOR B.A./ B.Sc. (HONOURS) ECONOMICS UNDER CHOICE BASED CREDIT SYSTEM RAVENSHAW UNIVERSITY, CUTTACK

Course Structure for B.A./B.Sc. (Honours) Economics

There are a total of fourteen economics core courses that students are required to take across

six semesters. All the core courses are compulsory. In addition to core courses in economics, a

student of B.A./B.Sc (Honours) Economics will choose four Discipline Specific Elective

(DSE) Courses. The DSE Courses are offered in the fifth and sixth semesters and two such

courses will be selected by a student from a set of courses specified for each of these

semesters (Groups I and II in the attached table).

Ability Enhancement Courses (AEC), Skill Enhancement Courses and Generic Elective

(GE) Course

Besides the honours papers, students are also required to take The Ability Enhancement (AE)

Courses, Skill Enhancement Courses and Generic Elective (GE) Courses as offered by the

University.

Readings List: The nature of several of the courses is such that only selected readings can be

specified in advance. Reading lists will be updated and topic-wise readings will be specified at

regular intervals, ideally on an annual basis.


Scheme of UG Economics (Honours) Course Under Choice Based Credit System (CBCS)

Courses for Honours Students

Semester. Course Course Code

Title Remarks

I Core C101 Introductory Microeconomics

Compulsory C102 Mathematical Methods

for Economics-I Generic Elective

G101 - B.Sc (Hons) Students to choose any course from Mathematics, Statistics and Geography. B.A. (Hons) students to choose any course form Mathematics, Statistics, Geography, Political Science, Sociology, Psychology, History, Philosophy and Education

Ability Enhancement

AE101 Environmental Science Compulsory

II Core C203 Introductory Macroeconomics

Compulsory

C204 Mathematical Methods for Economics-II

Generic Elective

G202 - As per the course taken in the 1st Semester

Ability Enhancement

AE202 Communicative English

Compulsory

Skill Enhancement

SE201 MIL (Odia/Hindi/Alt. English)

Compulsory; the students will have to choose one of the courses

III Core C305 Intermediate Microeconomics- I

Compulsory C306 Intermediate

Macroeconomics-I C307 Statistical Methods

for Economics Generic Elective


Skill Enhancement

SE302 Computer / IT Compulsory

IV

Core C408 Intermediate Microeconomics- II

Compulsory

C409 Intermediate Macroeconomics-II

C410 Introductory Econometrics

Generic Elective


Skill SE403 Odisha Budget


Enhancement Tribal Economy of Odisha

Student has to choose one paper

V Core C511 Indian Economy I Compulsory C512 Development

Economics I Discipline Specific Elective

D501 A. Public Economics Students will have to choose any one of the two courses

B. Applied Econometrics

D502 A. Money and Financial Markets

Students will have to choose any one of the two courses

B. Game Theory Skill Enhancement

SE504 A. Odisha Economy Student has to choose one paper B. Tourism Industry

in Odisha VI Core C613 Indian Economy II Compulsory

D614 Development Economics II

Discipline Specific Elective

D603 A. International Economics

Students will have to choose any one of the three courses

B. Financial Economics C. Economics of Social Sector

D604 Project Compulsory


B: Generic Electives For students opting Economics as Generic Elective. The students of Economics shall

choose Generic Elective from the Other departments Semester Code Course Title Remarks

I G101 Introductory Microeconomics

For the students who will choose Economics as Generic Elective

II G202 Introductory Macroeconomics

For the students who will choose Economics as Generic Elective

III G303 A. Indian Economy I B. Money and Financial Markets


IV G404 A. Indian Economy II B. Public Finance



Mark Distribution of the mentioned papers is as follows: COURSE CREDIT MARKS

Core Course 14 x 6 = 84 14 x 100 =1400 Discipline Specific

Elective Course 4 x 6 = 24 4 x 100 = 400

Generic Elective Course

4 x 6 = 24 4 x 100 = 400

Ability Enhancement Course

2 x 2 = 4 2 x 50 = 100

Skill Enhancement Course

4 x 2 = 8 4 x 50 = 200

TOTAL 144 2500


Semester I B A./B.Sc. (Honours) Economics

C101: INTRODUCTORY MICROECONOMICS-I (6 Credits) Full marks: 100 (Mid Term-20 + End Term-80)

Course Description This course is designed to expose the students to the basic principles of microeconomic theory. The emphasis will be on thinking like an economist and the course will illustrate how microeconomic concepts can be applied to analyze real-life situations. Unit I. Exploring the subject matter of Economics Why study economics? Scope and method of economics; the economic problem: scarcity and choice; Opportunity Cost; PPF; the question of what to produce, how to produce and how to distribute output; economic systems; reading and working with graphs. Slope: nature and measurement.

Unit II. Supply and Demand: How Markets Work, Markets and Welfare Markets and competition; determinants of individual demand/supply; demand/supply schedule and demand/supply curve; market versus individual demand/supply; shifts in the demand/supply curve, demand and supply together; how prices allocate resources; elasticity and its application; Price rationing; taxes and the costs of taxation; consumer surplus; producer surplus and the efficiency of the markets.

Unit III. Household Behaviour and Consumer Choice The consumption decisions – Basis of Choice: Utility; Diminishing MU, budget constraint; consumption and income/price changes; description of preferences (representing preferences with indifference curves); properties of indifference curves; consumer‘s optimum choice; income and substitution effects;

Unit IV. The Firm Behaviour of profit maximizing firms and the production process; Production Functions with one variable factor of production, Production Functions with Two variables factor of production, short run costs and output decisions; costs and output in the long run.

Unit V. Market Structure Different forms of market : Perfect competition, Monopoly, oligopoly - meaning and features Labour and land markets - basic concepts (derived demand, productivity of an input, marginal productivity of labour, marginal revenue product); demand for labour; input demand curves; shifts in input demand curves; competitive labour markets; and labour markets and public policy.

Basic Reading List

1. Karl E. Case and Ray C. Fair, Principles of Economics, Pearson Education Inc., 8th

Edition, 2007.

Additional Reading List 1. N. Gregory Mankiw, Economics: Principles and Applications, India edition by South

Western, a part of Cengage Learning, Cengage Learning India Private Limited, 4th edition, 2007.

2. Joseph E. Stiglitz and Carl E. Walsh, Economics, W.W. Norton & Company, Inc., New York, International Student Edition, 4th Edition, 2007



C102: MATHEMATICAL METHODS FOR ECONOMICS I (6 Credits) Full marks: 100 (Mid Term-20 + End Term-80)

Course Description This is the first of a compulsory two-course sequence. The objective of this sequence is to transmit the body of basic mathematics that enables the study of economic theory at the undergraduate level, specifically the courses on microeconomic theory, macroeconomic theory, statistics and econometrics set out in this syllabus. In this course, particular economic models are not the ends, but the means for illustrating the method of applying mathematical techniques to economic theory in general. The level of sophistication at which the material is to be taught is indicated by the contents of the prescribed textbook.

Unit I. Preliminaries Logic and proof techniques; number systems, intervals; sets and set operations; Types of sets: Closed sets, bounded sets, convex set; Ordered pairs, Cartesian products, and relations. Unit II. Functions of one real variable Functions and their properties; Types of functions- polynomial, rational, exponential, logarithmic; Sequences and series: convergence, algebraic properties and applications; Limit of a function; Continuous functions: characterizations, properties with respect to various operations and applications; Unit III. Derivative for Functions of One Variable Differentiable functions: properties; derivative and slope of a curve, Rules of differentiation for a function with one independent variable; Application of derivatives; indeterminate forms and L’ Hopital’s Rule. Second and higher order derivatives. Applications to verify concavity and convexity. Necessary condition for unconstrained maxima and minima, second order conditions Unit IV. Integration of functions Indefinite integrals: Rules of integration; Techniques of integration- substitution rule, integration by parts and partial fraction. Definite integrals: Riemann integral- partition over an interval and Riemann Sum, integrability of a function, fundamental theorem of integral calculus, properties of definite integrals.

Unit V. Dynamic Methods Linear first order differential equations, linear second order differential equations. Linear first-order difference equations, linear second order difference equations. N.B. Trigonometric functions are excluded

Basic Reading List 1. Hoy, Michael, John Livernois, Chris Mckenna, Ray Rees and Thanasis Stengos, Mathematics for

Economics, PHI Learning 2. Sydsaeter Knut and Hammond Peter J. Mathematics for Economic Analysis. Pearson Educational

Asia Additional Reading List

1. Chiang Alpha C. and Wainwright Kevin, Fundamental Methods of Mathematical Economics, McGraw Hill

2. Simon, Carl P and Lawrence Blume, Mathematics for Economists, WW Norton


Semester I B A./B.Sc. Economics

Generic Elective Course G101: INTRODUCTORY MICROECONOMICS I (6 Credits)

Full marks: 100 (Mid Term-20 + End Term-80) Course Description This course is designed to expose the students to the basic principles of microeconomic theory. The emphasis will be on thinking like an economist and the course will illustrate how microeconomic concepts can be applied to analyze real-life situations. Unit I. Exploring the subject matter of Economics Why study economics? Scope and method of economics; the economic problem: scarcity and choice; Opportunity Cost; PPF; the question of what to produce, how to produce and how to distribute output; economic systems; reading and working with graphs. Slope: nature and measurement. Unit II. Supply and Demand: How Markets Work, Markets and Welfare Markets and competition; determinants of individual demand/supply; demand/supply schedule and demand/supply curve; market versus individual demand/supply; shifts in the demand/supply curve, demand and supply together; how prices allocate resources; elasticity and its application; Price rationing; taxes and the costs of taxation; consumer surplus; producer surplus and the efficiency of the markets.

Unit III. Household Behaviour and Consumer Choice The consumption decisions – Basis of Choice: Utility; Diminishing MU, budget constraint; consumption and income/price changes; description of preferences (representing preferences with indifference curves); properties of indifference curves; consumer‘s optimum choice; income and substitution effects; Unit IV. The Firm Behaviour of profit maximizing firms and the production process; Production Functions with one variable factor of production, Production Functions with Two variables factor of production, short run costs and output decisions; costs and output in the long run. Unit V. Market Structure Different forms of market : Perfect competition, Monopoly, oligopoly - meaning and features Labour and land markets - basic concepts (derived demand, productivity of an input, marginal productivity of labour, marginal revenue product); demand for labour; input demand curves; shifts in input demand curves; competitive labour markets; and labour markets and public policy.

Basic Reading List Karl E. Case and Ray C. Fair, Principles of Economics, Pearson Education Inc., 8

th Edition, 2007.

Additional Reading List N. Gregory Mankiw, Economics: Principles and Applications, India edition by South Western, a part of Cengage Learning, Cengage Learning India Private Limited, 4th edition, 2007.



Ability Enhancement Compulsory Course AE101: Environmental Science (2 Credits) Full Mark: 50 (End semester evaluation)

Unit I: Ecosystems

Ecosystem- Structure and function of ecosystem (Abiotic and Biotic factors); Energy flow in an ecosystem.

Environmental Problems: global warming and Climate change, ozone layer depletion. Deforestation, acid rain; impacts of environmental disturbances. Unit II: Natural Resources and Biodiversity

Energy resources: Renewable and non-renewable energy sources. Biodiversity patterns and global biodiversity hot spots, India as a mega-biodiversity nation; Endangered and endemic species of India, Threats to biodiversity, Conservation of biodiversity: In-situ and Ex-situ conservation of biodiversity.

Unit III: Environmental Pollution, Impact and Management

Environmental pollution: Air, water, soil and noise pollution, Nuclear hazards and human health risks, Solid waste management: Control measures of urban and industrial waste.

Environment Protection Act and International agreements: Montreal and Kyoto protocols and Convention on Biological Diversity (CBD).

Suggested Readings:

1. Carson, R. 2002. Silent Spring. Houghton Mifflin Harcourt. 2. Gadgil, M., & Guha, R. 1993. This Fissured Land: An Ecological History of India. Univ. of

California Press. 3. Gleeson, B. and Low, N. (eds.) 1999. Global Ethics and Environment, London, Routledge. 4. Gleick, P. H. 1993. Water in Crisis. Pacific Institute for Studies in Dev., Environment &

Security. Stockholm Env. Institute, Oxford Univ. Press. 5. Groom, Martha J., Gary K. Meffe, and Carl Ronald Carroll. Principles of Conservation

Biology. Sunderland: Sinauer Associates, 2006. 6. Grumbine, R. Edward, and Pandit, M.K. 2013. Threats from India’s Himalaya

dams. Science, 339: 36-37. 7. McCully, P. 1996. Rivers no more: the environmental effects of dams (pp. 29-64). Zed

Books. 8. McNeill, John R. 2000. Something New Under the Sun: An Environmental History of

the Twentieth Century. 9. Odum, E.P., Odum, H.T. & Andrews, J. 1971. Fundamentals of Ecology. Philadelphia:

Saunders. 10. Pepper, I.L., Gerba, C.P. & Brusseau, M.L. 2011. Environmental and Pollution Science.

Academic Press.


Semester II

B A./B.Sc. (Honours) Economics C203: INTRODUCTORY MACROECONOMICS (6 Credits)

Full marks: 100 (Mid Term-20 + End Term-80) Course Description This course aims to introduce the students to the basic concepts of Macroeconomics. Macroeconomics deals with the aggregate economy. This course discusses the preliminary concepts associated with the determination and measurement of aggregate macroeconomic variable like savings, investment, GDP, money and inflation. Unit I. Introduction to Macroeconomics and Basic Concepts Macro vs. Micro Economics; Why Study Macroeconomics? Limitations of Macroeconomics; Stock and Flow variables, Equilibrium and Disequilibrium, Partial and General Equilibrium Statics – Comparative Statics and Dynamics; Introduction to National Income, Concepts of GDP, GNP, NDP and NNP at market price and factor cost; Personal Income and Disposable personal Income; Real versus Nominal GDP, GDP Deflator.

Unit II. Measurement of Macroeconomic Variables Rules and approaches of Measurement of GDP (Income, expenditure, product and Value added approaches), Difficulties of Estimating National Income, Circular Flow of Income and expenditure in two, three, and four-sector economy. Measuring Inflation rate and Unemployment rate; National Income and Economic Welfare. Unit III. Money Evolution, Definitions and Functions of money; Value of Money, quantity theory of money- Cash Transactions, Keynesian and Friedman Approaches; Demand for Money – Classical, Neoclassical and Keynesian Approaches, The Keynesian Liquidity Trap and its Implications, Determination of money supply and demand; Measures of Money Supply in India. Unit IV. Inflation, Deflation, Depression and Stagflation Inflation- Meaning, Types, causes and Effects. Demand-pull and cost-push inflation; the cost of inflation and anti-Inflationary Measures; Deflation- Meaning, Causes, Costs and Anti-Deflationary Measurers, Depression and Stagflation; Inflation vs. Deflation

Unit V. Determination of National Income Classical systems-Say’s Law, Theory of Determination of Income and Employment. Keynesian systems- Simple Keynesian model of income determination; Aggregate Demand and Aggregate Supply, equilibrium aggregate output; Government participation in the economy- Fiscal policy at work; The Fiscal Multiplier effect, S imple IS-LM model

Basic Reading List 1. N. Gregory Mankiw (2010):Macroeconomics, 7th edition, Cengage Learning India Private

Limited, New Delhi 2. Karl E. Case and Ray C. Fair, Principles of Economics, Pearson Education Inc., 8

th

Edition, 2007 3. Suraj B Gupta (2006), Monetary Economics Institutions, Theory and Policy, S.Chand,

New Delhi Additional Reading List 1. Gardner Ackley, Macroeconomics: Theory and Practice, Macmillan publisher 2. Robert J. Gordon, Macroeconomics, Prentice-Hall India Limited, 2011 3. Robert J Barro, Macroeconomics, Prentice-Hall India Limited, 2011


Semester II B A./B.Sc. (Honours) Economics

C204: MATHEMATICAL METHODS FOR ECONOMICS II (6 Credits) Full marks: 100 (Mid Term-20 + End Term-80)

Course Description

This course is the second part of a compulsory two-course sequence. This part is to be taught in Semester II following the first part in Semester I. The objective of this sequence is to transmit the body of basic mathematics that enables the study of economic theory at the undergraduate level, specifically the courses on microeconomic theory, macroeconomic theory, statistics and econometrics set out in this Syllabus. In this course, particular economic models are not the ends, but the means for illustrating the method of applying mathematical techniques to economic theory in general. The level of sophistication at which the material is to be taught is indicated by the contents of the prescribed textbook.

Unit I. Linear Algebra (Matrices and Determinants) Systems of linear equations: properties of their solution sets; matrices-elementary operations- matrix addition, product, rank of a matrix, determinants and their properties, inverse of a matrix, application of Cramer’s rule for solution of a system of linear equations.

Unit II. Linear Algebra (Vector Operations) Vector spaces: algebraic and geometric properties, scalar products, basis of a vector space, orthogonality; linear transformations: properties, The Eigen value problem, spectral decomposition of a square matrix, Quadratic Forms- positive/negative definite, semi-definite and indefinite forms. Unit III. Derivatives of Functions of several variables Differentiable functions: characterizations, Partial differentiation techniques; second order partial derivatives, applications- demand and cost elasticity, cross and partial elasticity; the first order total differentials; Derivatives of implicit functions, the implicit function theorem; level curves and level sets- isoquants and the marginal rate of technical substitution, indifference curves and the marginal rate of substitution,

Concavity and convexity, quasi-concavity and quasi-convexity, homogeneous and homothetic functions, Euler’s theorem.

Unit IV. Multi-variable optimization-I Unconstrained optimization: geometric characterizations, characterizations using calculus- first order and second order conditions; applications- multiproduct monopoly, Cournot duopoly; constrained optimization with equality constraints: geometric characterizations, Lagrange characterization using calculus; applications-consumer’s equilibrium and producer’s equilibrium. Unit V. Multi-Variable Optimisation-II Linear Programming: Basic concepts, Graphic Solutions, Primal vs. Dual. Non-linear Programming: Kuhn-Tucker conditions, Application in utility maximisation problem. Basic Readings

1. Hoy, Michael, John Livernois, Chris Mckenna, Ray Rees and Thanasis Stengos, Mathematics for Economics, PHI Learning


2. Sydsaeter Knut and Hammond Peter J. Mathematics for Economic Analysis. Pearson Educational Asia

Additional Readings 1. Chiang Alpha C. and Wainwright Kevin, Fundamental Methods of Mathematical

Economics, McGraw Hill 2. Simon, Carl P and Lawrence Blume, Mathematics for Economists, WW Norton


Semester II B A./B.Sc. Economics

Generic Elective Course G202: INTRODUCTORY MACROECONOMICS (6 Credits)

Full marks: 100 (Mid Term-20 + End Term-80) Course Description This course aims to introduce the students to the basic concepts of Macroeconomics. Macroeconomics deals with the aggregate economy. This course discusses the preliminary concepts associated with the determination and measurement of aggregate macroeconomic variable like savings, investment, GDP, money and inflation. Unit I. Introduction to Macroeconomics and Basic Concepts Macro vs. Micro Economics; Why Study Macroeconomics? Limitations of Macroeconomics; Stock and Flow variables, Equilibrium and Disequilibrium, Partial and General Equilibrium Statics – Comparative Statics and Dynamics; Introduction to National Income, Concepts of GDP, GNP, NDP and NNP at market price and factor cost; Personal Income and Disposable personal Income; Real versus Nominal GDP, GDP Deflator.

Unit II. Measurement of Macroeconomic Variables

Rules and approaches of Measurement of GDP (Income, expenditure, product and Value added approaches), Difficulties of Estimating National Income, Circular Flow of Income and expenditure in two, three, and four-sector economy. Measuring Inflation rate and Unemployment rate; National Income and Economic Welfare. National income accounting for an open economy Unit III. Money Evolution, Definitions and Functions of money; Value of Money, quantity theory of money- Cash Transactions, Keynesian and Friedman Approaches; Demand for Money – Classical, Neoclassical and Keynesian Approaches, The Keynesian Liquidity Trap and its Implications, Determination of money supply and demand; Measures of Money Supply in India.

Unit IV. Inflation, Deflation, Depression and Stagflation Inflation- Meaning, Types, causes and Effects. Demand-pull and cost-push inflation; the cost of inflation and anti-Inflationary Measures; Deflation- Meaning, Causes, Costs and Anti-Deflationary Measurers, Depression and Stagflation; Inflation vs. Deflation

Unit V. Determination of National Income Classical systems-Say’s Law, Theory of Determination of Income and Employment. Keynesian systems- Simple Keynesian model of income determination; Aggregate Demand and Aggregate Supply, equilibrium aggregate output; Government participation in the economy- Fiscal policy at work; The Fiscal Multiplier effect, S imple IS-LM model

Basic Reading List 1. N. Gregory Mankiw (2010):Macroeconomics, 7th edition, Cengage Learning India

Private Limited, New Delhi 2. Suraj B Gupta (2006), Monetary Economics Institutions, Theory and Policy, S.Chand,

New Delhi 3. Gardner Ackley, Macroeconomics: Theory and Practice, Macmillan publisher.

Additional Reading List 1. Robert J. Gordon, Macroeconomics, Prentice-Hall India Limited, 2011

Robert J Barro, Macroeconomics, Prentice-Hall India Limited, 2011


Semester II B A./B.Sc. (Honours) Economics

Ability Enhancement Compulsory Course AE202: Communicative English (2 Credits)

Full Mark: 50 (End semester evaluation) This is a need based course. It aims to develop the communicative ability of the students in speaking, reading and writing skills. The course also aims to equip the students in use of grammar in meaningful contexts and express themselves in day to day life’s practical situations.

Unit I.

Basics of Communication:

The process of Communication; Language as a Tool of Communication; Levels of Communication, The Flow of Communication; Communication Networks; Barriers to Communication; Technology in Communication Verbal and Non-verbal Communication: Spoken and written; Formal and Informal Style; Use of bias free English

Unit II.

Principles and Practices of Writing. Grammar and Punctuation: Subject-Verb Agreement; Common Mistakes; Punctuation. Sentence Construction Unit III. Reading and Writing

Comprehension; Art of Condensation; Note making; Summarizing; Paragraph Writing; Writing a Review; Dialogue Writing


Semester II

B A./B.Sc. (Honours) Economics Skill Enhancement Compulsory Course

SE201: MIL(Odia/Hindi/Alternative English)(2 Credits) Full Mark: 50 (End semester evaluation)


HINDI

ALTERNATIVE ENGLISH

Unit I: Poetry: Shakespeare: Sonnet CXXX; William Blake: London; T S Eliot: Preludes; Thomas Hardy: The Darkling Thrush Wordsworth: It’s a Beauteous Evening Unit II: Short Story: Gabriel Garcia Marquez: Balthazar’s Marvellous Afternoon Amitav Ghosh: Ghost’s of Mrs Gandhi; Omprakash Valmiki: Jhootan Unit III: Essays: Virginia Woolf: Shakespeare’s Sister Chitra Banerjee Divakaruni: Indian Movie, New Jersey B. R. Ambedkar: Who are the Shudras? Prescribed Text: The Individual and Society: Essays Stories and Poems. New Delhi: Pearson, 2006


Semester III B A./B.Sc. (Honours) Economics

C305: INTERMEDIATE MICROECONOMICS-I (6 Credits) Full marks: 100 (Mid Term-20 + End Term-80)

Course Description The course is designed to provide a sound training in microeconomic theory to formally analyze the behaviour of individual agents. Since students are already familiar with the quantitative techniques in the previous semesters, mathematical tools are used to facilitate understanding of the basic concepts; this course looks at the behaviour of the consumer and the producer and also covers the behaviour of a competitive firm. Unit I. Consumer Theory I Preferences and Utility: Axioms of Rational Choice, Utility, Trades and Substitutions, Indifference Curves, Utility Functions for Specific Preferences, The Many-Good case; Utility Maximization and Choice: The Two-Good Case (Graphical Analysis), The n-Good Case, Indirect Utility Function, The Lump Sum Principle, Expenditure Minimization, Properties of Expenditure Function. Unit II. Consumer Theory II Income and Substitution Effects: Demand Functions, Changes in Income, Changes in a Good’s Price, The Individual’s Demand Curve, Compensated (Hicksian) Demand Curves and Functions, Demand Elasticities, Consumer Surplus; Demand Relationships among Goods: The Two-Good Case, Substitutes and Complements, Net (Hicksian) Substitutes and Complements, Substitutability with Many Goods, Composite Commodities, and Home Production, Attributes of Goods and Implicit Prices Unit III. Production Theory Marginal Productivity, Isoquant Maps and the Rate of Technical Substitution, Production with One Variable Input (labour) and with Two-Variable Inputs, Returns to Scale, Four Simple Production Functions (Linear, Fixed Proportions, Cobb-Douglas, CES), Technical Progress, many-input production functions. Unit IV. Cost Functions Definition of Costs, Cost Functions and its Properties, Shift in Cost Curves, the elasticity of substitution, Cost in the Short-Run and Long-Run, Long-Run versus Short-Run Cost Curves, the translog cost function, Production with Two Outputs – Economies of Scope. Unit V. Profit Maximization The Nature and Behaviour of Firms, Profit Maximization, Marginal Revenue, Short-Run Supply by Price-Taking Firm, Profit Functions and its Properties, Profit Maximization and Input Demand – Single-Input Case and Two-Input Case. Basic Reading List

1. H. R. Varian (2010): Intermediate Microeconomics: A Modern Approach, 8th Edition, W.W. Norton and Company/Affiliated East-West Press (India). The workbook by Varian and Bergstrom may be used for problems.

Additional Reading List 1. R. S. Pindyck, D. N. Rubinfeld and P. L. Meheta (2009): Microeconomics, 7th Edition,

Pearson, New Delhi. 2. C. Snyder and W. Nicholson (2012): Microeconomic Theory: Basic Principles and

Extensions, 11th Edition, Cengage Learning, Delhi, India.



C306: INTERMEDIATE MACROECONOMICS I (6 Credits) Full marks: 100 (Mid Term-20 + End Term-80)

Course Description This course introduces the students to formal modelling of a macro-economy in terms of analytical tools. It discusses various alternative theories of output and employment determination in a closed economy in the short run as well as medium run, and the role of policy in this context. It also introduces the students to various theoretical issues related to an open economy. Unit I Consumption function and theories Short run and long run consumption functions, APC, MPC, APS, MPS. Fundamental Psychological Law of Consumption; Implications of Keynesian Consumption Function; Factors Influencing Consumption Function; Measures to raise Consumption Function Theories of consumption–Absolute, relative, permanent and life cycle income hypotheses. Unit II Investment function and theories The decisions to invest- Autonomous and Induced investment, investment multiplier, MEC and MEI schedule. Profit and accelerator theories of investment. The rate of interest and the rate of investment, the role of finance beyond the interest rate. Unit III IS-LM Approach The interaction of the real and monetary sector of the economy. Derivation of IS-LM, The IS-LM model: Keynesian version, Goods and money market equilibrium, Elasticity and shifts of IS and LM schedules and their implications for Equilibrium, IS-LM model with government sector, The role and relative effectiveness of fiscal and monetary policy.

Unit IV Open Economy Models The international flows of capital and goods, saving and investment in an open economy, Exchange rates, policy influence on real exchange rates. Mundell-Fleming model, the small open economy under floating and fixed exchange rates. International financial markets. Open economy and policy measures- fiscal, monetary and trade policies. Unit V Inflation, Unemployment and Expectations and Business Cycle Inflation – Unemployment Trade off and Phillips curve, natural rate of unemployment hypothesis, the new microeconomics of the labour market, adaptive expectations and rational expectations. Meaning and characteristics of trade cycles; Hawtrey’s Monetary Theory, Hayek’s Over-investment theory. Basic Reading List 1. Shapiro, E. (1996), Macroeconomic Analysis, Galgotia Publications, New Delhi N. Gregory

Mankiw (2010): Macroeconomics, 7th edition, Cengage Learning India Private Limited, New Delhi

2. Levacic R and A Rebbman, Macroeconomics: An Introduction to Keynesian- Neoclassical controversies, Macmillan Publicaton, 2nd edition , 2003

3. N. Gregory Mankiw (2010):Macroeconomics, 7th edition, Cengage Learning India Private Limited, New Delhi

Additional Reading List 1. Richard T. Froyen (2005): Macroeconomics, 2nd Edition, Pearson Education Asia, New Delhi. 2. Robert J Barro, Macroeconomics, Prentice-Hall India Limited, 2011



C307: STATISTICAL METHODS FOR ECONOMICS (6 Credits) Full marks: 100 (Mid Term-20 + End Term-80)

Course Description This is a course on statistical methods for economics. It begins with some basic concepts and terminology that are fundamental to statistical analysis and inference. It then develops the notion of probability, followed by probability distributions of discrete and continuous random variables and of joint distributions. This is followed by a discussion on sampling techniques used to collect survey data. The course introduces the notion of sampling distributions that act as a bridge between probability theory and statistical inference. The semester concludes with some topics in statistical inference that include point and interval estimation. Unit I. Descriptive Statistics Arithmetic Mean, Median and Mode (for both Grouped and Ungrouped Data), Properties of Arithmetic Mean, Comparison of Mean Median and Mode; Geometric and Harmonic Mean, Range, Quartile Deviation, Mean Deviation and Standard Deviation, Properties of Standard Deviation, Comparison of Different Measures of Dispersion, Measures of Skewness and Kurtosis. The Concept of Moments. Unit II. Correlation and Regression Analysis Elementary Analysis of Linear Correlation: Covariance, Scatter Diagram, Karl Pearson’s Coefficient of Correlation–Properties and the Method of Calculation, Concept of Spearman’s Rank Correlation. The Concept of Regression, Regression Lines and their Estimation in a Bivariate series, Least Squares Method, The coefficient of determination (r2) and Standard Error of Estimate. Unit III. Elementary Probability Theory Probability: Concepts of Sample Space and Events, Probability of an Event, Approaches to Probability (Classical, Empirical and Axiomatic ), Addition and Multiplication Theorems; Conditional Probability and Independence of Events; Inverse Probability: Bayes theorem and its application. Unit IV. Random Variables and Probability Distributions Concept of a Random Variable, Discrete and Continuous Random Variable, Probability Mass Function, Probability Density Function, Mathematical Expectation and Its Properties. Theoretical Distributions: Binomial distribution- its properties, Poission distribution and its properties, Poission distribution as a limiting case of binomial distribution, normal distribution-its properties, Normal distribution as a limiting case of binomial distribution. Unit V. Sampling Principal steps in a sample survey; Errors in statistics: sampling vs. non-sampling errors, methods of sampling: simple and stratified random sampling, Selection of a simple random sample, Allocation of sample size in stratified sampling and STRS, Systematic sampling, Cluster and Multistage sampling, Quota sampling. Basic Reading List 1. Gupta, S.C. Fundamentals of Statistics, Himalaya Publishing House, Delhi Publications, New Delhi 2. Murray R. Speigel Theory & Problems of Statistics, Schaum’s Publishing Series. Additional Reading List


1. Mukyopadhyay P. Mathematical Statistics. Kolkata Publishing House. 2. Mood. A. M, Graybill, F A. and Boes D. C. Introduction to the Theory of Statistics, McGraw Hill. 3. Nagar and Das, Basic Statistics, OUP 4. Jay L. Devore, Probability and Statistics for Engineers, Cengage Learning, 2010. 5. John E. Freund, Mathematical Statistics, Prentice Hall, 1992. 6. Richard J. Larsen and Morris L. Marx, An Introduction to Mathematical Statistics and its

Applications, Prentice Hall, 2011. 7. William G. Cochran, Sampling Techniques, John Wiley, 2007.


Semester III B A./B.Sc. Economics

Generic Elective Course G303A: INDIAN ECONOMY-I (6 Credits) Full marks: 100 (Mid Term-20 + End Term-80)

Course Description Using appropriate analytical frameworks, this course reviews major trends in economic indicators and policy debates in India in the post-Independence period, with particular emphasis on paradigm shifts and turning points. Given the rapid changes taking place in India, the reading list will have to be updated annually. Unit I. Economic Development since Independence Major features of Indian Economy at independence and characteristics of economic underdevelopment of India (with reference to colonial rule of India); Trend in National Income and Percapita income; Sectoral composition (output and employment) - Primary, Secondary and Tertiary. Development under different policy regimes—goals, constraints, institutions and policy framework; Unit II Population and Human Development Broad demographic features — Population size and growth rates, Sex and age composition, occupational distribution. Density of population, Urbanisation and economic growth in India. Population growth as a factor of economic development, National Population Policy, Progress of human development in India. Development of education in India, health and family welfare and the development of health infrastructure. Unit III. Structural change of post independent Indian economy Growth, Distribution and Trends of national income, sectoral distribution. An assessment of performance—sustainability and regional contrasts; structural change, savings and investment. Trends, measurement and policies in poverty; Inequality-measurement, causes and effects, Unemployment-Types, Causes and Employment policies in India. Unit IV. Indian economy in post reform period Background of Indian Economic Reforms – New Economic Policy; Redefining India’s development strategy; Changing Role of State and Market Industrial Policy, Disinvestment policy and Privatization; Financial sector reforms including banking reform. UNIT-V External sector Composition and Direction of Foreign Trade. External sector reforms: Foreign Exchange market, Balance of Payments, reform, convertibility, export-import policy, foreign direct investment; Post-reform Agricultural Performance and its Crisis; Appraisal of Indian Economic Reform

Basic Reading List 1. Jean Dreze and Amartya Sen, Jean Dreze and Amartya Sen, 2013. An Uncertain Glory:

India and its Contradictions, Princeton University Press. 2. Pulapre Balakrishnan, 2007, The Recovery of India: Economic Growth in the Nehru


Era, Economic and Political Weekly, November. 3. Rakesh Mohan, 2008, ―Growth Record of Indian Economy: 1950-2008. A Story of

Sustained Savings and Investment, Economic and Political Weekly, May. 4. Uma Kapila,2010, India’s economic Development since 1947, Academic Foundation, 5. S.L. Shetty, 2007, ―India‘s Savings Performance since the Advent of Planning, in 6. Himanshu, 2010, Towards New Poverty Lines for India, Economic and Political

Weekly, January. 7. Mishra and Puri(2015)-Indian Economy, Kalyani Pub,New Delhi


Semester III B A./B.Sc. Economics

Generic Elective Course G303B: MONEY AND FINANCIAL MARKETS (6 Credits)

Full marks: 100 (Mid Term-20 + End Term-80)

Course Description This course exposes students to the theory and functioning of the monetary and financial Sectors of the economy. It highlights the organization, structure and role of financial markets and institutions. It also discusses interest rates, monetary management and Instruments of monetary control. Financial and banking sector reforms and monetary Policy with special reference to India are also covered. Unit I. Money Concept, functions, measurement; theories of money supply determination- Classical and Keynesian approaches to demand for money, Post-Keynesian approaches to demand for money — Patinkin and the Real Balance Effect; ; RBI approach to money supply; High powered money and money multiplier: Money supply in an open economy Unit II. Financial Institutions, Markets, Instruments and Financial Innovations Role of financial markets and institutions; problem of asymmetric information –adverse selection and moral hazard; financial crises.Structure of money market and capital market — Call money market. Treasury bill market, Commercial bill market including commercial paper and certificate of deposits,Government securities market, Primary and secondary market for securities. Unit III. Interest Rates Determination; sources of interest rate differentials; theories of term structure of interest rates- Expectation theory, liquidity premium theory ,segmented market theory; interest rates in India. Unit IV. Commercial Banking System Meaning and types; Functions of commercial banks; the process of credit creation and its limitations; Balance sheet and portfolio management, Indian banking system: Changing role and structure; banking sector reforms. Unit V. Central Banking and Monetary Policy Functions of a central bank; Quantitative and qualitative methods of credit control, monetary policy: objectives, indicators and instruments of monetary control, monetary management in an open economy, current monetary policy of India, liquidity adjustment facility (LAF), MSF, limitations of monetary policy. Basic Reading List 1. F. S. Mishkin and S. G. Eakins, Financial Markets and Institutions, Pearson Education, 6th

edition, 2009. 2. M. R. Baye and D. W. Jansen, Money, Banking and Financial Markets, AITBS,1996.

Additional Reading List 1. F. J. Fabozzi, F. Modigliani, F. J. Jones, M. G. Ferri, Foundations of Financial Markets and

Institutions, Pearson Education, 3rd edition, 2009. 2. Rakesh Mohan, Growth with Financial Stability- Central Banking in an Emerging Market,

Oxford University Press, 2011.


3. L. M. Bhole and J. Mahukud, Financial Institutions and Markets, Tata McGraw Hill, 5th edition, 2011.

4. M. Y. Khan, Indian Financial System, Tata McGraw Hill, 7th edition, 2011. 5. N. Jadhav, Monetary Policy, Financial Stability and Central Banking in India, Macmillan, 2006. 6. R.B.I. Bulletin, Annual Report and Report on Currency and Finance (latest).



Skill Enhancement Course SE302: Computer Science (2 Credits)

Full marks: 50 (End Term evaluation)

UNIT-I Introduction: Introduction to computer system, uses, types. Data Representation: Number systems and character representation, binary arithmetic. Human Computer Interface: Types of software, Operating system as user interface, utility programs. UNIT-II Devices: Input and output devices (with connections and practical demo), keyboard, mouse, joystick, scanner, OCR, OMR, bar code reader, web camera, monitor, printer, plotter. Memory: Primary, secondary, auxiliary memory, RAM, ROM, cache memory, hard disks, optical disks UNIT-III Computer Organisation and Architecture: C.P.U., registers, system bus, main memory unit, cache memory, Inside a computer, SMPS, Motherboard, Ports and Interfaces, expansion cards, ribbon cables, memory chips, processors.

Reference Books:

1. Goel, Computer Fundamentals, Pearson Education, 2010. 2. P. Aksoy, L. DeNardis, Introduction to Information Technology, Cengage Learning,

2006 3. P. K.Sinha, P. Sinha, Fundamentals of Computers, BPB Publishers, 2007.


Semester IV B A./B.Sc. (Honours) Economics

C408: Intermediate Micro Economics-II (6 Credits) Full marks: 100 (Mid Term-20 + End Term-80)

Course Description This course is a sequel to Intermediate Microeconomics I. The emphasis will be on giving conceptual clarity to the student coupled with the use of mathematical tools and reasoning. It covers general equilibrium and welfare, imperfect markets and topics under information economics.

Unit I. Competitive Market Market demand, timing of the supply response, price determination in short-run, shifts in supply and demand curves; long-run analysis: long-run supply curve, long-run elasticity of supply, comparative static analysis of long-run equilibrium, producer surplus in the long-run; economic efficiency and welfare analysis, price controls Unit II. General Equilibrium and Welfare Perfectly competitive price system, A simple framework of general equilibrium of two goods, comparative static analysis, general equilibrium and factor prices, existence of general equilibrium, Equilibrium and efficiency under pure exchange; the first theorem of welfare economics, distribution and the second theorem of welfare economics

Unit III. Monopoly Barriers to entry, profit maximisation, mark up pricing, monopoly and resource allocation-deadweight loss, price discrimination-first degree, second degree and third degree with examples, Bundling and two-part tariffs; Monopolistic competition-product differentiation

Unit IV. Oligopoly Short-run pricing and output decisions: Bertrand model, Cournot model, Stackelberg model, capacity constraints, product differentiation, tacit collusion and punishment strategies; longer-run decisions: investment, entry and exit, strategic entry deterrence, signalling, innovations. Unit V. Market Failure Asymmetric information: Complex contracts, principal-agent problem, hidden actions, owner-manager relationships, moral hazards, non-linear pricing, adverse selection, signalling, auctions; externalities and allocative inefficiency Basic Reading List

1. Hal R. Varian, Intermediate Microeconomics, a Modern Approach, 8th edition, W.W. Norton and Company/Affiliated East-West Press (India), 2010.The workbook by Varian and Bergstrom could be used for problems.

2. C. Snyder and W. Nicholson, Fundamentals of Microeconomics, Cengage Learning (India), 2010.

Additional Reading List 3. R. S. Pindyck, D. N. Rubinfeld and P. L. Meheta (2009): Microeconomics, 7th Edition,

Pearson, New Delhi.



C409: INTERMEDIATE MACROECONOMICS II (6 Credits) Full marks: 100 (Mid Term-20 + End Term-80)

Course Description This course is a sequel to Macroeconomics I. In this course, the students are introduced to the long run dynamic issues like growth and technical progress. It also provides the micro-foundations to the various aggregative concepts used in the previous course.

Unit I. Growth Models-I

Harrod-Domar model- instability of equilibrium, Joan Robinson and the Golden Rule of Capital Accumulation, Basic Solow Model and Kaldor growth models.

Unit II Growth Models-II Technological progress - embodied and disembodied technical progress, Hicks, Harrod and Solow. Elements of Endogenous Growth – the Rudimentary A-K Model. Unit III. Classical and Keynesian Macroeconomic Thought Keynes vs. the Classics – Aggregate Demand and Aggregate Supply, Underemployment Equilibrium and Wage Price Flexibility. Monetarists and Friedman’s Reformulation of Quantity Theory, Fiscal and Monetary Policy: Monetarists vs. Keynesians, Unit IV. New Classical and New Keynesian Macroeconomic Thought The new classical critique of micro foundations, the new classical approaches- the; Policy implications of new classical approach — empirical evidence. The New Classical View of Macroeconomics and the Keynesian Countercritique. The New Keynesian Economics with reference to the Basic Features of Real Business Cycle Models, the Sticky Price Model.

Unit V. Macroeconomic Policy The Goals of Macroeconomic Policy and of Policymakers, the Budget and Automatic Fiscal Stabilisers, the Crowding –Out hypothesis and the Crowding – in controversy. Government debt and Ricardian equivalence. Meaning, Scope and Objectives of Monetary Policy, the monetary policy making process , the Transmission Mechanism of Monetary Policy, Rules vs. Discretion in Monetary Policy, Implications of Targeting a monetary aggregates and the Interest Rate. Limits to Monetary Policy

Basic Reading List

1. Barro J Robert and Sala- i-Martin , Economic Growth,the MIT Press 2. Levacic R and A Rebbman, Macroeconomics: An Introduction to Keynesian

Neoclassical controversies, Macmillan Publicaton, 2nd edition , 2003 3. Richard T. Froyen (2005): Macroeconomics, 2nd Edition, Pearson Education Asia, New

Delhi. Additional reading List 1. N. Gregory Mankiw (2010): Macroeconomics, 7th edition, Cengage Learning India

Private Limited, New Delhi 2. Shapiro, E. (1996), Macroeconomic Analysis, Galgotia Publications, New Delhi



C410: INTRODUCTORY ECONOMETRICS (6 Credits) Full marks: 100 (Mid Term-20 + End Term-80)

Course Description This course provides a comprehensive introduction to basic econometric concepts and techniques. It covers statistical concepts of hypothesis testing, estimation and diagnostic testing of simple and multiple regression models. The course also covers the consequences of and tests for misspecification of regression models. Unit I. Elements of Statistical Inference

Concepts of population, samples, parameter and statistic; Estimation theory: Point Estimation- small sample properties, asymptotic properties, Interval Estimation, Estimation of population parameters using Least-Squares and Maximum Likelihood methods.

Testing of hypotheses:Null vs Alternative hypothesis, Simple and Composite hypotheses, Procedure for testing of hypotheses; Type I and Type II errors; power of a test; level of significance, Confidence Interval, confidence limits, Degrees of freedom.

Unit II. Simple Linear Regression Models

Two-variable linear regression model, Assumptions under CLRM, OLS method of estimation, Importance of stochastic error term, Properties of an estimator, Variance and covariance of the OLS estimator, Gauss-Markov theorem.

Unit III. Multiple Regression Models

k-variable linear regression model, Least squares estimators, Properties , R2 and Adjusted R2,ANOVA .

Unit IV. Regression with Dummy Variables

Dummy independent variables-dummy variable trap, Structural change Model, Interaction effects, Seasonal analysis of time series, Piecewise linear regressions.

Unit V. Violations of Classical Assumptions

Multicollinearity: Sources, Consequences, Detection and Remedies; Heteroscedasticity- tests, consequences, detection and solution; Autocorrelation-sources, consequences, detection and remedial measures.

Basic Reading List 1. Gujarati D. N. Basic Econometrics. McGraw Hill, New Delhi. 2. Johnston J. Econometrics Methods, McGraw Hill

Additional Reading List 1. Kmenta J. Elements of Econometrics. University of Michigan Press 2. Maddala G. S. Econometrics Methods and Application. E. Elgar Pub 3. Richard J. Larsen and Morris L. Marx, An Introduction to Mathematical Statistics and its

Applications, Prentice Hall, 2011. 4. D. N. Gujarati and D.C. Porter, Essentials of Econometrics, McGraw Hill, 4th edition,

International Edition, 2009.


Semester IV B A./B.Sc. Economics

Generic Elective Course G404A: INDIAN ECONOMY-II (6 Credits) Full marks: 100 (Mid Term-20 + End Term-80)

Course Description This course examines sector-specific polices and their impact in shaping trends in key economic indicators in India. It highlights major policy debates and evaluates the Indian empirical evidence. Given the rapid changes taking place in the country, the reading list will have to be updated annually. Unit I. Indian Public finance Indian tax system, public expenditure, public debt, deficit and subsidies in the Indian economy. Centre-state financial relation. Macroeconomic stabilization: trade, fiscal, investment and monetary policy issues and their impact. Unit II. Policies and Performance in Agriculture Growth Pre-Independent and post-independent agrarian structure, Agriculture growth and productivity. Sustainable agricultural growth-concepts and constraints. Institutional set-up of land system and land reforms, Green Revolution and technological changes. Capital formation in agriculture; Food security, Agricultural pricing, Food Procurement and Public Distribution System. Unit-III Policies and Performance in Industry Structure and composition of Industry– issues of concentration, large vs small industry– industrial location. Small scale reservation policy. Trends and patterns of industrial growth.cottage industries; performance of public sector, privatization, industrial sickness, Land acquisition, SEZ and industrialisation foreign investment and competition policy, Industrial Policy, 1956 and 1991.Trends and performance in the development of service sector.

Unit- IV Resource mobilization and Planning in India

Evolution of economic planning in India; Economic Planning - Rationale, Features and Objectives; Strategy of Planning, dynamics of five year plans in India; Broad achievements and failures; Current Five Year Plan- Objectives, allocation, strategy and targets.

Unit V Odisha economy-An overview A macro glance at Odisha economy; social sector in Odisha- Education, Health, and Nutrition. Odisha Economy in relation to India and major states in recent decades, major issues in agriculture, forest and water resources, mining, industry and service Sector. Basic Reading List

1. Shankar Acharya, 2010, ―Macroeconomic Performance and Policies 2000-8, in Shankar Acharya and Rakesh Mohan, editors, India’s Economy: Performances and Challenges: Development and Participation, Oxford University Press.

2. Rakesh Mohan, 2010, ―India‘s Financial Sector and Monetary Policy Reforms,ǁ in Shankar Acharya and Rakesh Mohan, editors, India’s Economy: Performances and Challenges: Development and Participation, Oxford University Press.

3. Pulapre Balakrishnan, Ramesh Golait and Pankaj Kumar, 2008, ―Agricultural Growth in India Since 1991, RBI DEAP Study no. 27.


4. B.N. Goldar and S.C. Aggarwal, 2005, ―Trade Liberalisation and Price-Cost Margin in Indian Industries, The Developing Economics, September.

5. Mishra and Puri(2015)-Indian Economy,Kalyani Pub,New Delhi 6. Odisha Economic Surveys various issues 7. Odisha Development Reports various issues


Semester IV B A./B.Sc. Economics

Generic Elective Course G404B: PUBLIC ECONOMICS (6 Credits) Full marks: 100 (Mid Term-20 + End Term-80)

Course Description

Public economics is the study of government policy from the points of view of economic efficiency and equity. The paper deals with the nature of government intervention and its implications for allocation, distribution and stabilization. Inherently, this study involves a formal analysis of government taxation and expenditures. The subject encompasses a host of topics including public goods, market failures and externalities. The paper is divided into two sections, one dealing with the theory of public economics and the other with the Indian public finances.

UNIT I. Public Finance and Public Goods Meaning and scope of public finance, public finance vs. private finance, fiscal functions- allocation, distribution and stabilisation role of government, public goods - pure and partial public goods, private goods and merit goods, characteristics of public goods, rationale of public provision of public goods, free rider problem, voluntary exchange theory and Samuelson’s theory of public goods.

UNIT II. Externalities and Govt Policies Definition and types of externalities, Externalities and efficiency, Internalisation of externalities: corrective taxes and subsidies, Coase Theorem, significance of Coase theorem, application of Coase theorem and pollution rights UNIT III. Public Revenue Tax and non tax revenue, direct and indirect taxes, effects of tax on production, distribution and economic activities. Principles of taxation – Benefit theory, Ability to pay theory, Burden of taxation: Neutrality in taxation, shifting and incidence of taxation, allocative and equity aspect of taxation

Unit IV. Indian Public Finance-I Features of Indian tax system, tax revenues of the central and state governments, direct and indirect taxes levied by the state and centre, changing tax structure of India, Tax reforms since 1991: Chelliah Committee, Kelkar Committee reports, DTC,VAT and GST

Unit V. Indian Public Finance-II Budgetary trend in India, trend of receipts and expenditures of Central Govt., Types of deficits: budgetary deficit, fiscal deficit, revenue deficit and primary deficit, Public debt: problems and issues, Fiscal federalism in India: Transfer of resources from centre to state-trends and techniques, an evaluation of finance commission awards and federal financing, suggestions to improve the federal finance relation in India Basic Readings

1. Musgrave, R.A, The Theory of Public Finance, McGraw Hill 2. Atkinson and Stiglitz. Lectures on Public Economics, 3. Ghosh Ambar and Ghosh Chandana Economics of the Public Sector, PHI

Additional Readings 1. Herber B. P. Modern Public Finance 2. Due, John F and Friedlander, Government Finance. 3. Goode R. Government Finance in Developing Countries. Tata McGraw Hill.



Skill Enhancement Course SE403A: Odisha Budget (2 Credits)

Full Mark 50 (End Semester Evaluation)

Unit I. Basic Concepts

Basic concepts of budget, components of budget, classification of expenditures- revenue and capital expenditures, plan and non-plan; sources of receipts- revenue and capital receipts, tax and non-tax revenues, direct and indirect taxes. Types of deficits: budgetary deficit, fiscal deficit, revenue deficit and primary deficit.

Unit II. The Budget-making Exercise in Odisha: Pre-budget consultation, Role of legislatures in Budget Preparation, Budget cycle, Budget institutions, Critical issues in Budget Making in Odisha, Technicalities of Budget, Glimpse of some important Budget Documents, Advocating for a Participatory Budgeting, Role of media and civil society organisations in Participatory Budgeting, factors impeding the participatory budgeting.

Unit III. Analysis of the Recent Odisha Budget Annual Financial Statement, Demand for grants, Agricultural Budget, Statement of Odisha budget as per FRBM Act, trends and patterns of expenditure management, Public debt management, Developmental implications of the recent budget.

Basic Readings 1. Rosen Harvey, Public Finance. McGraw Hill 2. Budget Training Module for the Civil Society Organizations, CYSD,

http://www.obac.in/Training%20module%20on%20State%20Budget%20and%20Its%20Process.pdf 3. The recent Odisha Budget,

http://www.odisha.gov.in/finance/Budget.asp?GL=Budget&PL=1&TL=1 Additional Readings

1. Due, John F and Friedlander, Government Finance. 2. Atkinson and Stiglitz, Lectures on Public Economics,

http://www.obac.in/Training module on State Budget and Its Process.pdf

http://www.odisha.gov.in/finance/Budget.asp?GL=Budget&PL=1&TL=1



Skill Enhancement Course SE403B: TRIBAL ECONOMY OF ODISHA (2 Credits)


Unit–I: Understanding Tribes and Tribal Economy: Concept and definition of tribes in Indian Context , Geographical distribution of Tribes in India and Odisha; Scheduled Areas: constitutional provisions; Tribal Economy: Characteristics of Tribal Economies, Hunting-gathering economy, Shifting Cultivation, Plain land cultivations, mining and wage labour, Animal Husbandry and other avenues of Livelihood. Land Alienation and Agrarian Issues, Illiteracy and Exploitation Forests and Tribal Economy – Forest Right Act, 2006; Animal Husbandry and other avenues of livelihood; Tribal Markets – Traditional and Modern; Poverty and Indebtedness, Bonded Labour and Land alienation; Trends of Economic Exploitation; Development induced Displacement and Rehabilitation: Policy and issues; Changing Nature of Tribal Economy, Economic Transformation and its impact on tribal Society.

Unit–II: Socio-cultural Development: Relevance of Socio-cultural dimension in development; Education and Literacy – Trends, Issues and Initiatives; Health, Sanitation and food security – Indigenous and emerging practices, hunger and malnutrition of tribals; Relevance of Dynamics of Tribal Culture Problems in Development Folklore, Dormitory, System, Religious Practices and Festivals; Important socio-cultural Institutions and development birth rites, death rites and marriage practices; Promotion of Dance, music, arts and crafts of tribals.

Unit–III: Planning and Development Interventions: Tribal Development during Five Year Plans – SMPT Block, TD Block, Tribal Development Agency, Sub-Plan Approach, MADA, and Cluster Approach – PTGs and Micro Projects. Relevance of different Approaches to Tribal Development – Nehru, Elwin. Three tier Panchayatiraj System – 73rd Amendment and PESA Act; Emerging Development Initiatives – Role of NGOs, Women Empowerment through Micro Finance and SHGs – Liquor Free Movement; Obstacles to the Tribal Development. Reading List

1. Behera, K.K. (2003) : Organization and Management of Tribal Markets, Independent Publishing Company, New-Delhi.

2. Gomango, Giridhar (1992) : Constitutional provisions for Scheduled Castes and Scheduled Tribes, Himalaya Publishing House, Bombay.

3. Govt. of Orissa (1975): Sub-Plans for Tribal Regions of Orissa, 1974-75 (Draft), Bhubaneswar.

4. Govt. of Orissa (1994): Tribal Education in Orissa in the context of Education for all by 2000 AD, Bhubaneswar.

5. Govt. of Orissa (1997): Report on the Annual Administration of Scheduled Areas in Orissa for 1995-96. Welfare Department, Govt. of Orissa.

6. Mohapatro, P.C. (1987) : Economic Development of Tribal India. Ashish Publishing House, New Delhi.

7. Padhy S.C. (1997) : Tribals of South Orissa Problems and Prospects, B.U. 8. Patel, M.L. (Ed) (1972) : Agro-Economic problems of Tribal India. Progress Publishers,

Bhopal. 9. Sahu, N.C. (1986) : Economics of Forest Resources: Problems and Policies in a regional

economy. B.R. Publishing corporation, New Delhi. 10. Sharma, B.D. (1984) : Planning for Tribal Development. Prachi Prakashan, New Delhi.


Semester V B A./B.Sc. (Honours) Economics

C511: INDIAN ECONOMY-I (6 Credits) Full marks: 100 (Mid Term-20 + End Term-80)

Course Description Using appropriate analytical frameworks, this course reviews major trends in economic indicators and policy debates in India in the post-Independence period, with particular emphasis on paradigm shifts and turning points. Given the rapid changes taking place in India, the reading list will have to be updated annually. Unit I. Economic Development since Independence Major features of Indian Economy at independence and characteristics of economic underdevelopment of India (with reference to colonial rule of India); Trend in National Income and Percapita income; Sectoral composition (output and employment) - Primary, Secondary and Tertiary. Development under different policy regimes—goals, constraints, institutions and policy framework; Unit II. Population and Human Development Broad demographic features — Population size and growth rates, Sex and age composition, occupational distribution. Density of population, Urbanisation and economic growth in India. Population growth as a factor of economic development, National Population Policy, Progress of human development in India. Development of education in India, health and family welfare and the development of health infrastructure. Unit III. Structural change of post independent Indian economy Growth, Distribution and trends of national income, sectoral distribution. An assessment of performance—sustainability and regional contrasts; structural change, savings and investment. Trends, measurement and policies in poverty; Inequality-measurement, causes and effects, Unemployment-types, causes and employment policies in India. Unit IV. Indian economy in post reform period Background of Indian Economic Reforms – New Economic Policy; Redefining India’s development strategy; Changing role of state and market, Industrial Policy, Disinvestment policy and privatization; Financial sector reforms including banking reform. UNIT-V External sector Composition and direction of Foreign Trade. External sector reforms: Foreign Exchange market, Balance of Payments, reform, convertibility, export-import policy, foreign direct investment; Post-reform agricultural performance and its crisis; Appraisal of Indian Economic reform. Basic Reading List 1. Jean Dreze and Amartya Sen, Jean Dreze and Amartya Sen, 2013. An Uncertain Glory:

India and its Contradictions, Princeton University Press. 2. Pulapre Balakrishnan, 2007, The Recovery of India: Economic Growth in the Nehru Era,

Economic and Political Weekly, November.


3. Rakesh Mohan, 2008, ―Growth Record of Indian Economy: 1950-2008. A Story of Sustained Savings and Investment, Economic and Political Weekly, May.

4. Uma Kapila,2010, India’s economic Development since 1947, Academic Foundation, 5. Himanshu, 2010, Towards New Poverty Lines for India, Economic and Political Weekly,

January. 6. Mishra and Puri (2015)-Indian Economy, Kalyani ,New Delhi



C512: DEVELOPMENT ECONOMICS-I (6 Credits) Full marks: 100 (Mid Term-20 + End Term-80)

Course Description This is the first part of a two-part course on economic development. The course begins with a discussion of alternative conceptions of development and their justification. It then proceeds to aggregate models of growth and cross-national comparisons of the growth experience that can help evaluate these models. The axiomatic basis for inequality measurement is used to develop measures of inequality and connections between growth and inequality are explored. The course ends by linking political institutions to growth and inequality by discussing the role of the state in economic development and the informational and incentive problems that affect state governance.

Unit I. Conceptions of Development Economic growth and development, Factors affecting economic development, Obstacles to economic development, Indicators of economic development - National income, Per capita income; Basic needs approach, PQLI, HDI, GDI, Capital formation and economic development. Alternative measures of development, documenting the international variation in these measures, comparing development trajectories across nations and within them.

Unit II. Theories of Economic Development Classical theory (Smith, Ricardo, Malthus), Marxian- theory of Social change, immutable laws, Crisis in capitalism, Schumpeterian theory of capitalist development, Rostow’s stages of economic growth

Unit III. Poverty and Inequality: Definitions, Measures and Mechanisms Understanding Prosperity and Poverty: Geography, Institutions, and the Reversal of Fortune, Measuring Poverty, Inequality axioms; a comparison of commonly used inequality measures; connections between inequality and development; poverty measurement; characteristics of the poor; mechanisms that generate poverty traps and path dependence of growth processes

Unit IV. Approaches to Economic Development Partial theories of growth and development: Vicious circle of Poverty, Circular causation, Theory of unlimited supply and labour, big push, balanced growth, unbalanced growth, critical minimum effort, Dualism-Technical.

Unit V. Political Institutions and the Functioning of the State Public Goods and Economic Development, State ownership and regulation, government failures, Corruption and Development, Developmental Plan ; The allocation of resources, alternative institutional trajectories and their relationship with economic performance.

Basic Reading List: Debraj Ray (2009): Development Economics, Oxford University Press. Partha Dasgupta (2007): Economics, A Very Short Introduction, Oxford University Press. Abhijit Banerjee, Roland Benabou and DilipMookerjee (2006): Understanding Poverty, Oxford University Press.

Additional Reading List


Daron Acemoglu and James Robinson (2006): Economic Origins of Dictatorship and Democracy, Cambridge University Press. Robert Putnam (1994): Making Democracy Work: Civic Traditions in Modern Italy, Princeton University Press. Amartya Sen (2000): Development as Freedom, OUP



Discipline Specific Elective D501A: PUBLIC ECONOMICS (6 Credits) Full marks: 100 (Mid Term-20 + End Term-80)

Course Description Public economics is the study of government policy from the points of view of economic efficiency and equity. The paper deals with the nature of government intervention and its implications for allocation, distribution and stabilization. Inherently, this study involves a formal analysis of government taxation and expenditures. The subject encompasses a host of topics including public goods, market failures and externalities. The paper is divided into two sections, one dealing with the theory of public economics and the other with the Indian public finances.

UNIT I. Public Finance and Public Goods Meaning and scope of public finance, public finance vs. private finance, fiscal functions- allocation, distribution and stabilisation role of government, public goods - pure and partial public goods, private goods and merit goods, characteristics of public goods, rationale of public provision of public goods, free rider problem, voluntary exchange theory and Samuelson’s theory of public goods.

UNIT II. Externalities and Govt. Policies Definition and types of externalities, Externalities and efficiency, Internalisation of externalities: corrective taxes and subsidies, Coase Theorem, significance of Coase theorem, application of Coase theorem and pollution rights UNIT III. Public Revenue Tax and non tax revenue, direct and indirect taxes, effects of tax on production, distribution and economic activities. Principles of taxation – Benefit theory, Ability to pay theory, Burden of taxation: Neutrality in taxation, shifting and incidence of taxation, allocative and equity aspect of taxation

Unit IV. Indian Public Finance-I Features of Indian tax system, tax revenues of the central and state governments, direct and indirect taxes levied by the state and centre, changing tax structure of India, Tax reforms since 1991: Chelliah Committee, Kelkar Committee reports, DTC,VAT and GST

Unit V. Indian Public Finance-II Budgetary trend in India, trend of receipts and expenditures of Central Govt., Types of deficits: budgetary deficit, fiscal deficit, revenue deficit and primary deficit, Public debt: problems and issues, Fiscal federalism in India: Transfer of resources from centre to state-trends and techniques, an evaluation of finance commission awards and federal financing, suggestions to improve the federal finance relation in India Basic Readings

4. Musgrave, R.A, The Theory of Public Finance, McGraw Hill 5. Atkinson and Stiglitz. Lectures on Public Economics, 6. Ghosh Ambar and Ghosh Chandana Economics of the Public Sector, PHI

Additional Readings 2. Herber B. P. Modern Public Finance


3. Due, John F and Friedlander, Government Finance. 4. Goode R. Government Finance in Developing Countries. Tata McGraw Hill. 5. Houghton J. M. The Public Finance: Selected Reading, Penguin 6. Mathew T. Economics of Public Expenditure, Vora



Discipline Specific Elective D501B: APPLIED ECONOMETRICS (6 Credits)

Full marks: 100 (Mid Term-20 + End Term-80) Course Description The aim of this course is to provide a foundation in applied econometric analysis and develop skills required for empirical research in economics. Topics include specification and selection of regression models, dynamic econometric models, advanced methods in regression analysis .Since the emphasis is on application of methods, this course requires understanding of econometric software and computing skills. Unit I. Empirical Econometric Research and Specification Model Selection Criteria, The nature and sources of data for empirical economic analysis, Measurement scales of variables, Normality Assumption, Hypothesis formulation and inference about the parameter , Role of Lags in Regression, Importance of Stochastic error term, Error Specification Bias. Unit II. Advanced Topics in Regression Analysis Distributed lag models- Koyck’s geometric lag, Almon’s polynomial lag, Adaptive expectation models, Partial adjustment Model and Nerlove Hypothesis, Permanent Income Hypothesis, Autoregressive models- estimation by using instrumental variables, Detecting autocorrelation in autoregressive models- Durbin’s h test. Unit III. Simultaneous Equation Models Structural Equation and Reduced form Equation, Simultaneous equation bias and inconsistency of OLS estimators, Identification- Exact and Over Identification, rank and order conditions of Identification, Estimation- Recursive system, ILS, 2SLS, and 3SLS methods. Unit IV. Panel data Methods Use of Panel Data, Sources and types of panel data, Simple panel data methods, Two period panel data analysis, Advanced panel data methods- Fixed effects model, Random effects model.

Unit V. Introduction to Econometric Software Package Calculating average growth rates, compound growth rates, correlation, and descriptive statistics using Microsoft Excel, OLS regression, Multiple Regression, Autocorrelation, drawing histogram, bar diagram and line diagram using E-views and STATA. Basic Reading List:

1. Gujarati D. N. (1995), Basic Econometrics (2nd Edition) McGraw Hill, New Delhi 2. An Introduction to Applied Econometrics- a time series approach: Kerry Patterson,

Palgrave Houndmills, Basingstoke, Hampshire and New York. Additional Reading List

1. Jack Johnston and John Dinardo, Econometric Methods, McGraw-Hill International Editions, Singapore, 1997

2. Jeffrey M. Wooldridge, Econometrics, CENGAGE learning, India Edition, 2009 3. Damodar Gujarati, Econometrics by Example, Palgrave Macmillan, 2011.

4. Brooks Chris (2nd edition), 2008, Introductory Econometrics for finance, Cambridge University press

5. Walter Enders, Applied Econometric Time Series, Wiley India (P) Ltd, New Delhi 2004


Semester V B A./B.Sc. (Honours) Economics Discipline Specific Elective

D502A: MONEY AND FINANCIAL MARKETS (6 Credits) Full marks: 100 (Mid Term-20 + End Term-80)

Course Description This course exposes students to the theory and functioning of the monetary and financial Sectors of the economy. It highlights the organization, structure and role of financial markets and institutions. It also discusses interest rates, monetary management and Instruments of monetary control. Financial and banking sector reforms and monetary Policy with special reference to India are also covered. Unit I. Money Concept, functions, measurement; theories of money supply determination- Classical and Keynesian approaches to demand for money, Post-Keynesian approaches to demand for money — Patinkin and the Real Balance Effect; ; RBI approach to money supply; High powered money and money multiplier: Money supply in an open economy. Unit II. Financial Institutions, Markets, Instruments and Financial Innovations Role of financial markets and institutions; problem of asymmetric information –adverse selection and moral hazard; financial crises.Structure of money market and capital market — Call money market. Treasury bill market, Commercial bill market including commercial paper and certificate of deposits,Government securities market, Primary and secondary market for securities. Unit III. Interest Rates Determination; sources of interest rate differentials; theories of term structure of interest rates- Expectation theory, liquidity premium theory ,segmented market theory; interest rates in India. Unit IV. Commercial Banking System Meaning and types; Functions of commercial banks; the process of credit creation and its limitations; Balance sheet and portfolio management, Indian banking system: Changing role and structure; banking sector reforms. Unit V. Central Banking and Monetary Policy Functions of a central bank; Quantitative and qualitative methods of credit control, monetary policy: objectives, indicators and instruments of monetary control, monetary management in an open economy, current monetary policy of India, liquidity adjustment facility (LAF), MSF, limitations of monetary policy. Basic Reading List 1. F. S. Mishkin and S. G. Eakins, Financial Markets and Institutions, Pearson Education, 6th

edition, 2009. 2. M. R. Baye and D. W. Jansen, Money, Banking and Financial Markets, AITBS,1996. Additional Reading List 1. F. J. Fabozzi, F. Modigliani, F. J. Jones, M. G. Ferri, Foundations of Financial Markets and

Institutions, Pearson Education, 3rd edition, 2009. 2. Rakesh Mohan, Growth with Financial Stability- Central Banking in an Emerging Market,

Oxford University Press, 2011.


3. L. M. Bhole and J. Mahukud, Financial Institutions and Markets, Tata McGraw Hill, 5th edition, 2011.

4. M. Y. Khan, Indian Financial System, Tata McGraw Hill, 7th edition, 2011. 5. N. Jadhav, Monetary Policy, Financial Stability and Central Banking in India, Macmillan, 2006. 6. R.B.I. Bulletin, Annual Report and Report on Currency and Finance (latest).


Semester V B A./B.Sc. (Honours) Economics Discipline Specific Elective

D502B: GAME THEORY (6 Credits) Full marks: 100 (Mid Term-20 + End Term-80)

Course Description Game theory is an integral part of modern economic analysis. This paper introduces the students to elementary game theory under complete information. This course introduces the basic concepts of game theory in a way that allows students to use them in solving simple problems. The course will deal with the solution concepts for normal form and extensive form games along with a variety of economic applications. Unit I. Normal form games Concepts, importance and application of game theory. Types of game, the pay of matrix of a game, two person zero sum and constant – sum game, pure strategy and saddle point solutions, dominant and dominated strategies, concept of Nash equilibrium, method of dominance and mixed strategies.

UNIT II. Application of Normal form of Game Cournot Duopoly model. Bertrand model, The Commons Problem, Prisoner Dillema, Natural Monopoly and Bankruptcy laws. Unit III. Extensive form games with perfect information The game tree; strategies; subgame perfection; backward induction in finite games; Commitment; bargaining. Unit IV. Repeated Games Finitely repeated games and backward induction; infinitely repeated games; history dependent strategies; one-step deviation property; the repeated prisoners‘ dilemma; idea of folk theorem.

Unit V. Games with incomplete information

Simultaneous move games with incomplete information (Bayesian games). Strategies; Bayesian Nash equilibrium; auctions; other applications Extensive form games with imperfect information

Basic Reading List 1. Martin J. Osborne, An Introduction to Game Theory, Oxford University Press, New

Delhi, 2004. 2. Prajit K Dutta, Strategies and Games: Theory and Practice, MIT Press



Skill Enhancement Course SE504A: ODISHA ECONOMY (2 Credits) Full Mark 50 (End Semester Evaluation)

UNIT-I: Agriculture and Industrial Sector:

Odisha economy-A macro glance, Agriculture Sector: Land use pattern, production and

productivity of major crops, cropping intensity, input use, irrigation, production and

availability of livestock, fisheries resources, forest and environment, Issues in Agriculture,

Recent State agricultural policy.

Industrial sector- Manufacturing: Large Scale Industries, MSME, Handicrafts and Cottage

Industries, export of industrial products, state industrial policy resolution. Major state level

institutions; Mining and Quarrying: Deposits, Production and Exports of Minerals.

UNIT II Service Sector and Infrastructure:

Service Sector: Institutional Finance, Construction, Tourism, Trade, Hotel and Restaurant

Industry, Policies for Promotion of Tourism and Hospitality Industry; Infrastructure: Power,

Transport, Mail and Telecommunication, Science and Technology.

UNIT III Human development and Social Sector

Human development and poverty: Poverty: Dimensions, trends and incidence, Literacy

Levels, Health Conditions, Regional Disparity and Development Approach for Odisha;

Social Sector: Education, Health and Family Welfare, Water Supply and Sanitation, Welfare

Programmes, Women's Development and Welfare, Welfare of Scheduled Castes and

Scheduled Tribes.

Reading List

1. Economic Survey (Annual), Planning and Coordination Department, Directorate of

Economics and Statistics, Government of Odisha.

2. Orissa Development Report, Planning Commission

3. Orissa Human Development Report, UNDP

4. Handbook on Odisha Economy (eds) S C. Panda, P. B. Nayak and P. Pattnaik. Oxford

University Press, New Delhi.



Skill Enhancement Course SE504B: TOURISM INDUSTRY IN ODISHA (2 Credits)


Unit I: Basics of Tourism

Tourism, The relationship between leisure, recreation and tourism, Classification of tourism

in terms of destination visited – International tourism and domestic tourism, Purpose of Visit

– Cultural tourism, Business Tourism, VFR, Pilgrimage tourism, Sustainable and Eco-

tourism- Definition of Eco tourism, Benefits and Importance of Eco tourism, Definition and

bodies promoting sustainable tourism, Principles of Sustainable tourism, Difference between

Mass and Green Tourism.

Unit II: Barriers to the growth of tourism in Odisha

Factors existing at the destination: terrorism, & political and social environment, Factors

barring a potential tourist from travelling : time, cost, and social barriers. Domestic tourism-

Definition and Significance of Domestic tourism, Difference between the domestic tourist

and International tourist, Positive and Negative impacts of tourism- Economic Impacts,

Socio-culture Impacts, Environmental impacts.

Unit III: Hospitality, Transportation Facilities and Tourism Product of Odisha

Types of Hotels, Leading Hotel chains, Budget Hotels, Heritage Hotels; Transportation

Sector: Roadways, National and State Highways, Express Highways, Railways, Airways:

Domestic Airlines operating in Odisha, Waterways.

Tourism Product of Odisha: Natural Resources: Wildlife Sanctuaries, National Parks and

Natural Reserves in Odisha, Popular Tourist Resorts, Hill Stations: Beaches and Islands,

waterfall, Pilgrimage Destinations, Monuments, Historical Monuments, Handicrafts, Cuisines.

Basic Readings:

1. Charles R. Goeldner, J. R. Brent Ritchie: Tourism: Principles, Practices, Philosophies,

12th Edition, September 2011, 2012, Wiley publications.

2. Weaver David, Laura lawton: Tourism Management 5th edition, Wiley Publications

Weaver David : Eco-tourism, 2nd edition, Wiley Publications.

Additional Readings:

1. Ahmad, Aizaz: General Geography of India, NCERT, New Delhi

2. Goh Cheong Long: An Economics Atlas of India

http://as.wiley.com/WileyCDA/Section/id-302477.html?query=Charles+R.+Goeldner

http://as.wiley.com/WileyCDA/Section/id-302477.html?query=J.+R.+Brent+Ritchie


Semester VI B A./B.Sc. (Honours) Economics

C613: INDIAN ECONOMY-II (6 Credits) Full marks: 100 (Mid Term-20 + End Term-80)

Course Description This course examines sector-specific polices and their impact in shaping trends in key economic indicators in India. It highlights major policy debates and evaluates the Indian empirical evidence. Given the rapid changes taking place in the country, the reading list will have to be updated annually. Unit I. Indian Public finance Indian tax system, public expenditure, public debt, deficit and subsidies in the Indian economy. Centre-state financial relation. Macroeconomic stabilization: trade, fiscal, investment and monetary policy issues and their impact. Unit II. Policies and Performance in Agriculture Growth Pre-Independent and post-independent agrarian structure, Agriculture growth and productivity. Sustainable agricultural growth-concepts and constraints. Institutional set-up of land system and land reforms, Green Revolution and technological changes. Capital formation in agriculture; Food security, Agricultural pricing, Food Procurement and Public Distribution System. Unit-III Policies and Performance in Industry Structure and composition of Industry– issues of concentration, large vs small industry– industrial location. Small scale reservation policy. Trends and patterns of industrial growth.cottage industries; performance of public sector, privatization, industrial sickness, Land acquisition, SEZ and industrialisation foreign investment and competition policy, Industrial Policy, 1956 and 1991.Trends and performance in the development of service sector. Unit- IV Resource mobilization and Planning in India

Evolution of economic planning in India; Economic Planning - Rationale, Features and Objectives; Strategy of Planning, dynamics of five year plans in India; Broad achievements and failures; Current Five Year Plan- Objectives, allocation, strategy and targets.

Unit V Odisha economy-An overview A macro glance at Odisha economy; social sector in Odisha- Education, Health, and Nutrition. Odisha Economy in relation to India and major states in recent decades, major issues in agriculture, forest and water resources, mining, industry and service Sector. Basic Reading List

1. Shankar Acharya, 2010, ―Macroeconomic Performance and Policies 2000-8, in Shankar Acharya and Rakesh Mohan, editors, India’s Economy: Performances and Challenges: Development and Participation, Oxford University Press.

2. Rakesh Mohan, 2010, ―India‘s Financial Sector and Monetary Policy Reforms,ǁ in Shankar Acharya and Rakesh Mohan, editors, India’s Economy: Performances and Challenges:


Development and Participation, Oxford University Press. 3. Pulapre Balakrishnan, Ramesh Golait and Pankaj Kumar, 2008, ―Agricultural Growth in India

Since 1991, RBI DEAP Study no. 27. 4. B.N. Goldar and S.C. Aggarwal, 2005, ―Trade Liberalisation and Price-Cost Margin in Indian

Industries, The Developing Economics, September. 5. Mishra and Puri(2015)-Indian Economy,Kalyani Pub,New Delhi 6. Odisha Economic Surveys various issues 7. Odisha Development Reports various issues



C614: DEVELOPMENT ECONOMICS-II (6 Credits) Full marks: 100 (Mid Term-20 + End Term-80)

Course Description This is the second module of the economic development sequence. It begins with basic demographic concepts and their evolution during the process of development. The structure of markets and contracts is linked to the particular problems of enforcement experienced in poor countries. The governance of communities and organizations is studied and this is then linked to questions of sustainable growth. The course ends with reflections on the role of globalization and increased international dependence on the process of development.

Unit I. Population and Development Demographic concepts: birth and death rates, age structure; theory of demographic transitions during the process of development; Facts about world’s population; the optimum population. R o l e o f p o p u l a t i o n i n e c o n o m i c d e v e lo p m e n t . Unit II. Land, Labor and Credit Markets The distribution of land ownership; land reform and its effects on productivity; nutrition and labor productivity; informational problems and credit; microfinance; inter- linkages between rural factor markets. Unit III. Choice of Techniques The choice of technology; Appropriate technology and employment in LDCs; The capital intensity of techniques in developing countries;; Issues of good governance. Project Appraisal- Cost Benefit Analysis.

Unit IV. Environment and Sustainable Development Environment- Economy linkage; Environment as a necessity and luxury; Population-environment linkage. Allocation problem; Market failure for environmental goods; environment as a public good, Common Property Resources, Property right approach to environmental problem-. Prevention, control and abatement of pollution. Concept and indicators of sustainable development; environmental externalities and state regulation of the environment; economic activity and climate change.

Unit V. International aspects of Economic Development International trade as an engine of growth; Static and dynamic gains from trade; Prebisch, Singer and Myrdal theses vs. free trade; Export-led growth; Tariffs and effective protection; WTO and developing countries. External resources; FDI; Aid vs. Trade.

Basic Reading List: 1. Debraj Ray (2009): Development Economics, Oxford University Press. 2. Partha Dasgupta (2007): Economics, A Very Short Introduction, Oxford University

Press. 3. Abhijit Banerjee, Roland Benabou and DilipMookerjee (2006): Understanding

Poverty, Oxford University Press. Additional Reading List

1. Daron Acemoglu and James Robinson (2006): Economic Origins of Dictatorship and Democracy, Cambridge University Press.

2. Robert Putnam (1994): Making Democracy Work: Civic Traditions in Modern Italy, Princeton University Press.

3. Amartya Sen (2000): Development as Freedom, OUP.



Discipline Specific Elective D603A: INTERNATIONAL ECONOMICS (6 Credits)

Full marks: 100 (Mid Term-20 + End Term-80) Unit I. Introduction and Theories of International Trade

Importance of the study of International Economics; Inter-regional and international trade; Theories of absolute advantage, comparative advantage and opportunity cost; Factor Endowments and Heckscher-Ohlin theory of trade — its main features, assumptions and limitations, Empirical studies - Leontief Paradox, Rybzynski effect, Factor price equalization and Stolper-Samuelson Theorem. The Specific factors model

Unit II. New Theories of International Trade:

Gains from trade, Doctrine of reciprocal demand — its importance and limitations in the theory of trade. Intra-Industry Trade, Imperfect Competition and Increasing Returns to Scale as determinants of Trade and gains from trade, Effect of changes in tastes, per capita income and technology on Trade and gains from trade, Kravis Theory of Availability, Linder’s theory, Posner’s Imitation Gap theory, Vernon’s Product Cycle Theory, Kenen’s theory of Human capital

Unit III. International Trade Policy

Free trade versus Protection, Trade restrictions: Tariff. Partial Equilibrium analysis of Tariff, Theories of Tariff structure, Import Quotas and other Non-tariff barriers, Economic Integration: Customs Union and Free Trade Areas, WTO and India.

Unit IV. Exchange Rate

Concept and Types of Exchange Rate (bilateral vs trade-weighted exchange rate, cross exchange rate, spot, forward, futures), Demand for and Supply of foreign exchange, Exchange Rate Determination: Trade or Elasticity Approach, Purchasing-Power Parity Theory, The Monetary Model to Exchange Rates, Fixed versus Flexible exchange rate.

Unit V. Balance of Payments

Concepts and components of balance of trade and balance of payments; Equilibrium and disequilibrium in balance of payments; Consequences of disequilibrium in balance of payments; Various measures to correct deficit in the balance of payments; International Monetary System, IBRD, IMF, international monetary systems; financial globalization and financial crises.

Basic Reading List: 1. Dominick Salvatore, International Economics: Trade and Finance, John Wiley

International Student Edition, 10th edition, 2011 2. Paul Krugman, Maurice Obstfeld, and Marc Melitz, International Economics: Theory and

Policy, Addison-Wesley (Pearson Education Indian Edition), 9th edition, 2012.



Discipline Specific Elective D603B: FINANCIAL ECONOMICS (6 Credits) Full marks: 100 (Mid Term-20 + End Term-80)

Unit I. Investment Theory and Structure of Interest rates Introduction to financial economics, Time Value of Money: Future Value, Present Value, Future value of an annuity, Present value of annuity, Present rate of perpetuity. Investment Criteria: Net Present Value, Benefit Cost Ratio, Internal Rate of Return, Modified Internal Rate of Return. Unit II. Valuation of Bonds and Securities Fundamentals of Valuation of Securities: Valuation of Bonds and Stocks; Bond Yield, Yield to Maturity. Equity Valuation: Dividend Discount Model, The P/E Ratio Approach; Irrelevance of Dividends: Modigliani and Miller Hypothesis. UNIT III. Risk and Return Types of risk, Historical returns and Risk, computing historical returns, average annual returns, variance of returns, Measurement of Risk and Return of an asset, Measurement of Risk and Return of a Portfolio, Determinants of Beta, Risk-Return trade off. UNIT IV. Cost of Capital and Capital Asset Pricing Model The Cost of Capital: Debt and equity; Cost of Debt, Cost of Preference Capital and Equity Capital. The capital market line; the capital asset pricing model; the beta of an asset and of a portfolio; security market line; use of the CAPM model in investment analysis and as a pricing formula. UNIT V. Derivative Markets An introduction to financial derivatives: Types and uses of derivatives; Forward Contracts: determination of forward prices, Futures Contract: theories of future prices- the cost of carry model, the expectation model, capital asset pricing model. Relation between Spot and Future Prices, forward vs future contract, Hedging in Futures; Options: types, value of an option, the Pay-Offs from Buying and Selling of Options; the Put Call Parity Theorem; Binomial option pricing model (BOPM) and Black-Scholes option pricing model. Basic Reading List 1. L. M. Bhole and J. Mahukud, Financial Institutions and Markets, Tata McGraw Hill, 5th edition,

2011. 2. Hull, John C., Options, Futures and Other Derivatives, Pearson Education, 6th edition,

2005. Additional Reading List 1. David G. Luenberger, Investment Science, Oxford University Press, USA, 1997. 2. Thomas E. Copeland, J. Fred Weston and Kuldeep Shastri, Financial Theory and

Corporate Policy, Prentice Hall, 4th edition, 2003. 3. Richard A. Brealey and Stewart C. Myers, Principles of Corporate Finance, McGraw-

Hill, 7th edition, 2002. 4. Stephen A. Ross, Randolph W. Westerfield and Bradford D. Jordan, Fundamentals of

Corporate Finance. McGraw-Hill, 7th edition, 2005.


Semester VI

B A./B.Sc. (Honours) Economics Discipline Specific Elective

D603C: ECONOMICS OF SOCIAL SECTOR (6 Credits) Full marks: 100 (Mid Term-20 + End Term-80)

Course Description This course provides a microeconomic framework to analyze, among other things, individual choice in the demand for health and education, government intervention and aspects of inequity and discrimination in both sectors. It also gives an overview of health and education in India. Unit I. Role of Health and Education in Human Development Health and education outcomes and their relationship with macroeconomic performance. Importance in poverty alleviation, Social Development and Deprivation. Human Development and Deprivation - different indices and their components: Human Development : evolution and conceptual foundation – methodology for building the Human Development Index (HDI)- other related measures: Human Poverty Index (HPA), Gender Related Development Index (GDI), Gender Empowerment Measure (GEM) associated problems of measurement, components of different development indices: outcome indices and , process indices Unit II. Economics of Education and Health Determinants of demand for education, Costs and benefits of education. Determinants of Health , microeconomic Foundations of Health Economics, Demand for health; uncertainty and health insurance market; Health outcomes; health systems. Unit III. Evaluation of Health Programs World health organisation: function and standards. Economic dimensions of health care; cost effectiveness and cost-benefit analysis; burden of disease. Health financing, alternative insurance mechanisms; market failure and rationale for public intervention; equity and inequality. Unit IV. Education : Investment on human Capital. Investment in Human Capital, Rate of return to education: private and social; quality of education; signaling or human capital; theories of discrimination; gender and caste discrimination in India. Unit V Education and Health Sector in India: an over view Literacy rates, school participation, school quality measures. Education policies, Health planning and policy in India. Social security measures. Appraisal of health care financing Health planning and policy in India. Basic Reading List

1. William, Jack, Principles of Health Economics for Developing Countries, World Bank Institute Development Studies, 1999

2. World Development Report, Investing in Health, The World Bank, 1993


3. McMahon, W.W.(1998): ‘Education and Growth in East Asia’, Economics of Education Review, 17(2)

4. Human Development Reports, Technical Notes: UNDP-various issues Additional Reading List

1. Ronald G., Ehrenberg and Robert S., Smith, Modern Labor Economics: Theory and Public Policy, Addison Wesley, 2005.

2. Hurd, Michael and Arie Kapteyn.(2003): ‘Health, Wealth and the Role of Institutions’, The Journal of Human Resources, 38(2)



Discipline Specific Elective D604: PROJECT (6 Credits)
