Syllabus contents

ETHICS AND ECONOMICS

Unit-1 Teaching Hours:20

Economic behaviour and moral sentiments

Importance of ethics in economics; Outcomes of ethical analysis; Duties, rules and virtues; Economic
behaviour: Self-interest and rational behaviour- Adam Smith and self-interest

Unit-2 Teaching Hours:20

Economic judgments and Moral Philosophy

Interpersonal comparisons of utility; Welfare and efficiency; Pareto efficiency and cost benefit
analysis; well-being and agency; Achievements, freedoms and rights; Self-interest and welfare
economics

Unit-3 Teaching Hours:20

Select topics in Ethics and Economics

Moral limits to markets; Well-being, agency and freedom; Economic justice: process and outcomes;
Economic justice: equal opportunity; Ethical pluralism in Economics

Text Books And Reference Books:

1. Jonathan B. Wight. Ethics in Economics: An Introduction to Moral Frameworks, CA: Stanford

University Press, 2015

2. AmartyaSen, On Ethics and Economics, Australia: Blackwell, 1987

CIA 1, 3 : Article review and exams

OPERATIONS RESEARCH
Unit-1

Teaching Hours:4

Introduction to OR

Brief history- stages of development- definitions, features, Methodology of OR, OR tools.

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Unit-2

Teaching Hours:12

Linear Programming

Fundamentals of L P models - Graphic solutions of LP models – feasible solutions- infeasible

solutions- unbounded solutions- Maximization of Objective Functions - Minimization of Objective
Functions - Simplex Method with two variables- Simplex Method with more than two variables,
Special cases in the Simplex methods, Duality in linear programming, Economic interpretation of
dual variables and dual constraints, Selected LP applications, LPP solutions with Excel Solver.

Unit-3

Teaching Hours:10

Transportation Problems

Transportation algorithm- Basic feasible solution of TP- North West Corner Rule- Least Cost method-
Vogel’s Approximation Method – Optimality test- Stepping Stone method – Modi method - Problems,
Special cases in the transportation problems-Degeneracy, unique & multiple optimal, unbalanced
transportation problem.

Unit-4

Teaching Hours:5

Assignment Model

Statement of the problem, Hungarian Assignment - Problems – Optimality tests- problems -

Maximization assignment problem - crew assignment problems

Unit-5

Teaching Hours:10

Net Work Models

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Net work models - CPM - PERT - Determination of Earliest Expected and Latest Allowable Times -
Determination of Critical path – PERT Cost- Scheduling of a project- Application of PERT- Critical Path
Method- Problems

Unit-6

Teaching Hours:5

Waiting Line Models

Structure of Queuing models – Parameters of Queue disciplines – Problems - Waiting Line models

Unit-7

Teaching Hours:7

Inventory Management Models

Basic Features of inventory decisions- EOQ Models – Problems – how to order – Wen to order -
Quantity Discounts- EPQ models – Dynamic Inventory Models – problems - ABC Analysis

Unit-8

Teaching Hours:7

Game Theory

Basic concepts-definition- managerial applications- two-person’s zero-sum games, maxi-min, mini-

max strategies, Nash Equilibrium, rule of dominance, mixed strategies, Max-min, Min-Max strategy,
Nash equilibrium, Dominant strategy rules, Mixed strategy, problem-solving, practical application.

Text Books And Reference Books:

ND Vohra, Quantitative Techniques in Management, McGraw Hill, 4th Edition, New Delhi.

Taha, H. A. (2017), Operations Research-An Introduction, 10th Edition, Pearson Education Limited.
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Indian Economy
Unit-1

Teaching Hours:5

India in a global economy since 1950s

India in a global Economy. Its features and emerging issues of development. Comparison of India
with other major economies in the world.

Unit-2

Teaching Hours:15

Economic crises in Post independent era and reforms

Growth and development under different policy regimes—goals, constraints, institutions and policy
framework. Dilemma of development: agriculture Vs Industry,Food Crisis: Food crisis during sixties,
green revolution and government intervention in food grain market with special reference to
agricultural price, PDS and priority sector lending, Poverty alleviation: Public intervention for poverty
alleviation, Economic crises during Eighties: external debt crisis, fiscal imbalance, balances of
payment problems and inflation. , New Economic Policy and Continual reform initiatives.

Unit-3

Teaching Hours:20

Sectoral reforms and Challenges

Fiscal and Monetary Policy Approaches, Fiscal Federalism, Tax Reforms, Central Government
Finances, Financial Sector Reforms, Money and Capital Market. Current Status of Agriculture Input
Pricing , Subsidies and Land Reforms, Industrial Policy and Development after 1991, Public Sector
Under-Takings (PSUs), Privatization and Disinvestment, Reviving agricultural and economic growth,
Sustainable development challenges, External sector, Balance of payments—trend and composition;
currency convertibility and exchange rate movements; Exim policy and WTO related issues; portfolio
investment and foreign direct investment

Unit-4

Teaching Hours:10

Population and Human Development

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Demographic trends and issues; education; health and malnutrition. Growth and social sector
developments, Migration, Poverty, inequality and unemployment. Labour laws and labour markets,
and infrastructure needs.

Unit-5

Teaching Hours:10

Contemporary development Challenges

Institutions, Development Concept, State and Market, • Panchayati Raj Institutions – (PRIs) Non-
Government Organizations (NGOs), • Sustainable Development, Fiscal Federalism, Financing of
Infrastructure Development, Education Sector

Text Books And Reference Books:

Uma Kapila Edited, (29th Edition) Indian Economy since Independence, Academic Foundation, Delhi,

Bardhan. P.K. (9th Edition), the Political Economy of Development in India, Oxford University Press,
New Delhi – 1999.

EPW (ed) (2018) Quarter Century of Liberalisation in India, 2018

Advanced Econometrics
Unit-1

Stationarity Univariate Models

Stochastic processes - Properties of stochastic process. Time series as a discrete stochastic process–
Stationarity- Characteristics of stochastic component of time series (mean, auto-covariation and
autocorrelation functions). Lag operator- Unit root tests - Deterministic and stochastic trend models,
Test for stationarity-ACF, PACF, -Augmented Dickey Fuller test – Phillips-Perron Test-Estimation and
testing, Forecasting-B-J methodology.

Unit-2

Teaching Hours:10

Simultaneous Equation Models

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Dynamic simultaneous equations models- Granger causality test - Vector Auto Regressive (VAR)
Models-Impulse Response Function (IRF)-Variance Decomposition Analysis, Forecasting with VAR, -
Structural Vector Auto Regressive (SVAR) models– Estimation and Diagnostic Checking.

Unit-3

Teaching Hours:12

Non-Stationary Multivariate Models

Spurious regression- Cointegration- Granger representation theorem -Vector error correction models
(VECMs)- Structural VAR models with Cointegration - Testing for Cointegration – Engle and Granger
(1987) and Johansen and Juselius (1990) - Estimating the Cointegration rank- Estimating
Cointegration vectors.

Unit-4

Teaching Hours:12

Conditional Variance Models

Volatility Clustering- Leverage Effects- Modelling Volatility- Autoregressive Conditional

Heteroscedasticity (ARCH) Model- Generalised Autoregressive Conditional Heteroscedasticity
(GARCH) Model - Extensions to GARCH-Exponential GARCH and Threshold GARCH models.

Unit-5

Teaching Hours:14

Panel Data Models

Introduction to Panel Data - Types of panels- Balanced and Unbalanced Panel Data-Benefits and
drawbacks of longitudinal data. Basic models, -The Constant Coefficient Model, The Fixed effect
model or Least-Squares Dummy Variable (LSDV) Regression Model, The restricted F test, One-Way
and Two-Way Fixed Effects Models, Within group and first difference estimators, Random effects
Model-Estimation and testing- Fixed vs Random Effects Model -Hausman specification test, Breusch-
Pagan test.

Text Books And Reference Books:

1. Kerry Patterson, An Introduction to Applied Econometrics: A Time Series Approach. Palgrave

Macmillan, 2000.
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2. Walter Enders, Applied Econometric Time Series. New York: John Wiley & Sons, Inc., 1995.

3. Chris Brooks, Introductory Econometrics to Finance - Cambridge University Press, 2002

4. B. H. Baltagi, Econometric Analysis of Panel Data, 4th ed., John Wiley, New York, 2008.

5. Damodar N Gujarati and D C Porter (2009) Basic Econometrics, McGraw Hill Publication, 5th
edition.
6. Bhaumik, S.K. (2015) Principles of Econometrics: A Modern Approach Using EViews, Oxford
University Press.

Growth and Development

Unit-1
Teaching Hours:12
Theories of Growth and Development

a) Economic Growth Theories

Neoclassical economic theory: Slow-Swan growth model and its extension; Ramsey growth model;
Empirics of neoclassical theory: Conditional and unconditional convergence; Endogenous growth
theory: AK model; Romer model with knowledge spillovers and increasing returns to scale; Uzawa-
Lucas model with human capital
Endogenous growth theory: Models with endogenous technological change, R&D based growth
theory; Empirics of endogenous growth theory and technological change

b) Contemporary Theories of Economic Development

Dualistic development and structuralism – Lewis model, Chenery model; The balanced-growth
Nurske model; Hirschman’s unbalanced growth model with backward and forward linkages

c) New frontiers in Theories of Economic Development

The imperfect information paradigm (Stiglitz); the new institutional economic paradigm (Williamson);
the international dependence models.

Unit-2
Teaching Hours:9
Poverty, Risk and Inequality

Measurement of development and poverty- vulnerability and of chronic and inter-temporal poverty;
concepts of welfare and well-being – contrast to Sen’s approach; microeconomic approaches on how
economic processes lead to poverty increases or poverty reduction: poverty traps - the theory and
evidence - credit market failures, risk, social norms and attitudes, and spatial externalities.

Unit-3
Teaching Hours:9
Financial Flows to Developing Countries

The determinants of private capital flows (FDI, bank lending, bonds and equity); and the institutional
and policy issues arising from their impact on macroeconomic stability and growth; the positive
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economics of aid (from whom, to whom and with what effects) and the normative economics of aid
(how to allocate and deliver aid better); the relationships between these two sorts of financial flows.

Unit-4
Teaching Hours:8
Rural Development

Land (tenancy, shareholding, and property rights); Labour (labour markets, shadow wages, wage
determination); Migration (equilibrium models, causes and consequences, risk); Credit and micro-
finance (credit rationing, household credit, lending to the poor).

Unit-5
Teaching Hours:9
Industrial Policy and Technological Upgrading

Industrialization, economic growth and the industrial policy debate; The experience of the East Asian
NICs: lessons and debates; Transfer of technology and role of multinational companies;
Industrialisation and catch-up in the emerging economies: the BRICS and beyond; Opportunities and
constraints for industrial policy in the 21st century: internal and external dimensions.

Unit-6
Teaching Hours:9
Openness and Development

The impact of trade and foreign investment on growth, inequality and poverty; variation in impact
among countries with differing factor endowments and institutions; policy and non-policy barriers to
external economic linkages; criteria and constraints in choice of external (and related internal)
economic policies; industrial policy; market access, international and private rules governing trade;
and regional integration.

Unit-7
Teaching Hours:4
Education and Development through Community Participation

The concept of service/experiential Learning; A study of the causes, consequences and risk
associated with migration for the rural illiterates; A study of the household finances of the rural
Bangalore – lending to the rural poor, rural indebtedness, role of micro-finance.

Text Books And Reference Books:

Todaro, M.P. and S.C. Smith (2003) Economic Development, Pearson Education.
Thirlwall, A.P. (2003) Growth and Development with Special Reference to Developing Economies,
Palgrave.
Ray, D. (1998) Development Economics, OUP.

BEHAVIOURAL ECONOMICS

Unit-1
Teaching Hours:10
Introduction to Behavioral Economics
 Syllabus contents
Nature of Behavioral economics -Methodological approach: Theory and evidence -Origins of
behavioral economics- Neo-classical and behavioral approaches to studying economics- Relationship
with other disciplines- Application: Case studies on Loss aversion, Money Illusion, Altruism.

Unit-2
Teaching Hours:20
Foundations of Behavioral Economics

Values, Preferences and Choices: The standard model- Axioms, assumptions and definitions- Decision
making under risk and uncertainty: Prospect theory- Reference points- Loss Aversion- Shape of utility
function- Decision weighting- Heuristics and Biases-Application: Case studies on Endowment Effect
and Loss Aversion.

Mental accounting: Nature and components of mental accounting- Framing and editing- Budgeting
and fungibility- Choice bracketing and dynamics-Policy implications- Libertarian paternalism and
choice architecture- Nudges- Application

Unit-3
Teaching Hours:15
Intertemporal Choice

The Discounted Utility Model: Origin and features of Discounted Utility Model (DUM)- Methodology-
Anomalies in DUM- Alternative Intertemporal Choice Models: Time preference- Time inconsistent
preferences- Hyperbolic discounting

Unit-4
Teaching Hours:15
Behavioral game theory

Nature of behavioral game theory- Mixed strategies- Bargaining- Iterated games- Signaling- Learning-
Application: Case studies on Market entry in Monopoly and Impasses in bargaining and self-serving
bias.

Text Books And Reference Books:

Nick Wilkinson and Matthias Hales, An Introduction to Behavioral Economics, 2nd Edition, Palgrave
Macmillan 2012