COURSE - I

RESEARCH METHODOLOGY AND STATISTICAL TECHNIQUES

Total Credit: 04 Subject Code:
LTPC 4 0 0 4
Preamble
The course is designed to create academic researchers as well as professionals who are capable of
conducting policy analysis, relating to National and Global economic and development issues from
quantitative and inter-disciplinary perspectives. While an interdisciplinary approach is encouraged,
the programme lays somewhat larger emphasis on economics to provide an integrated framework
within which various development issues can be addressed.

Objectives:
1. To train the research scholars to use the techniques of statistical analysis, which are
commonly applied to understand and analyze economic problems.
2. To learn robust statistical and econometrics tools and techniques for research analysis.

Module I: Research Methods (10 L)

Social Research – Nature, Scope, Uses and Major steps – Pure, Applied and Action Research –
Scientific Method: Theory and Facts – Formulation of a Research problem – Hypothesis: Types,
Sources and Characteristics of a good hypothesis.

Module II: Research Design (12 L)

Need and Types of Research Design – Exploratory, Descriptive, Diagnostic and Experimental
Design – Sampling Design: Probability Sampling, Simple Random, Systematic, Stratified and
Multistage or Cluster Sampling, Non Probability Sampling – Purposive, Judgment, Quota and
convenience sampling – Data Collection – Primary and Secondary methods – Observation,
Document, Case Study and Survey – Schedule and Questionnaire – Construction and Requisites of
a Good Questionnaire – Mechanics of Thesis writing – Format of a Research Report – Footnotes
and Reference.

Module III: Descriptive Statistical (12 L)

Presentation of data – Editing, coding and tabulating data – Diagrammatic and Graphic
representation of data – Processing data – Averages: Mean, Median, Mode and Weighted average –
Merits and Demerits – Dispersion: Range, Standard deviation, Co-efficient of variation and Gini
Ratio – Skewness, Pearson‘s and Bowley‘s coefficient of skewness.

Module IV: Statistical Methods (14 L)

Correlation – Simple, Partial and Multiple – Pearson‘s coefficient of correlation and Rank
correlation – Regression: Simple, Linear and non-linear regression – Multiple regression – Probit
model and Logit model – Time Series Analysis – Components and Uses – Methods of estimation
trend and seasonal variation – Scaling techniques – Types – Reliability and validity – doctometry –
Statistical Packages in Computer – Interpretation of SPSS Package output relevant for Multivariate
analysis Logit model.
Module V: Statistical Inference (12 L)
Steps in testing of hypothesis – Large sample Z – Test – Uses and Simple problems – ‗t‘ Test:
Assumptions, Properties and Applications and Simple problems – ‗F‘ Test Assumptions, Properties
and Applications and Simple problems, Chi-square [χ2] Test: Assumptions, Properties and
applications and non parametric tests – ‗U‘ test and ‗H‘ test.

References:

Basic Reading list:

1. Elhance, D.N.(2000), Fundamentals of Statistics, Allahabad; Kitab Mahal.
2. S.P. Gupta (2001), Statistical Methods, S. Chand and Co., New Delhi.
3. Kothari, C.R (1998), Research Methodology, Wiley Eastern Ltd., New Delhi.
4. Wilkision and Bhandarkar (1991), Methodology and techniques of social Research, Himalaya
Publishing House, Bombay.
Additional Reading List:

1. Eari Babbie (1975), Practice of Social Research, Wadsworth Publishers, New York.
2. Ferber and Verdoon (1962), Research Methods in Economics and Business, Macmillan,
New York.
3. Goode and Halt (1987), Methods in Social Research, MoCraw Hill, London.
4. Kurein, C.T. (1973), Research Methods in Economics, Madras Sangam Publisher.
5. Moser, C.A. and Kolton, C (1980) Survey Educational Methods in Social investigation,
investigation, Heinemann Educational Books, London.
6. Sonachalam, K.S. (1978), Research methodology in Social Science, Kadayam, Tamilnadu.
7. Shanmugasundaram, V. (1974), Papers on the Methodology of Research in Social Sciences,
University of Madras, Chennai.
8. Sitaram Pillai (1989), Basic Statistic, Progressive Publishers, Chennai.
 COURSE - II
BASIC CONCEPTS AND THEORIES IN ECONOMICS
Total Credit: 04 Subject Code:
LTPC 4 0 0 4
Preamble

The objective of this course is the make the students aware of the fundamentals of economics and
also the contemporary issues of social and water Irrigation in India. This course will help the student
in deciding their area of research interest.

Objectives:

1. To learn basic concepts and theories of economics will gain the importance because of
sustained interest of the developing countries in uplifting their economic condition by
restructuring their economies to greater diversity, efficiency and equity in consonance with
their priorities.

Unit I Basic Economics (12 L)

Demand and Supply, Concept of Elasticity, Movement along the curve versus shift of the curve -
Basic Utility Theory, Indifference Curves- Production Function, Average Cost, Marginal Cost,
Short run, Long run cost curves- Perfect Competition and Monopoly- National Income (GDP,
GNP) and multipliers, inflation, price index number.

Unit II Micro Economics (12 L)

Consumer Behaviour - Production and Costs - Markets – Perfect Competition, Monopoly,
Monopolistic Competition, Oligopoly - Theory of Distribution/ Theory of Factor Market.

Unit III Macro Economics (12 L)

National Income Accounting Methods - Classical Model, Keynesian Model, IS-LM Model, Fiscal
and Monetary Policies - Solow Growth Model - Inflation, Index Numbers - Exchange Rate
Systems - Balance of Payments Account - Keynesian Multipliers in an Open Economy - Structural
Reforms - Indian Money Market and RBI‘s Monetary Policy.

Unit IV Social Issues (12 L)

Discrimination, the market, statistical discrimination, minimum wage, gender discrimination,
exclusion - Income inequality and poverty, causes of income inequality and poverty (inflation)
income distribution over time, the official poverty rate - Unemployment, measurement, types and
cost of unemployment, interpreting the unemployment rate, social security - Governance and
Corruption.

Unit V Water Irrigation and Pricing (12 L)

Irrigation development in post-independence India - Interlinking of rivers - Water shed
development - Impact of irrigation development in agriculture- Ground water market - Efficiency
and equity in water use - Political economy of water pricing.
References:

Unit I Suggested readings

 Mankiw G N. Principles of Macroeconomics. 6th ed. South Western, 2012.

 Robert S Pindyck & Daniel L Rubinfeld. Microeconomics. 7 th ed. Dorling Kindersley (RS),
2008.

Unit II Suggested readings

 Hal R. Varian. Microeconomic Analysis. 3rd ed. Tata Mcgraw Hill Education Private Limited,
2005.
 Anna Koutsoyiannis. Modern Microeconomics. 2nd ed. Macmillan India Limited.

Unit III Suggested readings

 Rudiger Dornbusch & Stanley Fischer. Macroeconomics 6th ed. Tata Mcgraw Hill Education
Private Limited, 2005.
 William H. Branson. Macroeconomic Theory & Policy 3rd ed. East-West Press, 2005.

Unit IV Suggested readings

 Pissarides, C A, Equilibrium Unemployment Theory, MIT Press 2000.
 Menger, Carl (1976), Principles of Economics, New York University Edition
 Marshall, Alfred (1890), Principles of Economics: An Introductory Volume
 Mankiw, N Gregory (2009), Principles of Economics, 6th edition, South Western Cengage
Learning, USA.

Unit V Suggested readings

 Vaidyanathan A. (2006) ―India‘s water resources – Contemporary issues on irrigation‖,
Oxford University press, New Delhi.
 Vaidyanathan A. (2013) Water resources of India, Oxford University Press.
 Ariel Dinar and Ashok Subramanian ―Water Pricing Experiences – An International
Perspective‖ World Bank, Washington, D.C.
 Hellergers P.J.G.J. and Perry C.J (2004) ―Water as an Economic Good in Irrigated
Agriculture: Theory and Practice‖ The Hague, Agricultural Economics Research Institute.
 Subranmanian Asok, VijayJaganathan N. and Ruth Merinzen Dick ―User Organizations for
sustainable water services‖ World Bank technical paper no. 354, The Worl Bank,
Washingion D.C.
 Bhattarai, M A Narayanamoorthy and Randolf Barker (2006) ―Direct and Total Benefits of
irrigation in India and Its Implications to Irrigation Financing and Cost Recovery‖,
International Association of Agricultural Economists, Australia.
 COURSE – III (Optional Papers)
1. AGRICULTURE AND RURAL DEVELOPMENT
Total Credit: 04 Subject Code:
LTPC 4 0 0 4
Preamble

The place of agriculture and rural economics in the overall economic literature is unique in the
context of the Indian economy. The development programmes in India are centered around the
rural area. The paper is intended to highlight the working and significance of the rural economy
along with the institutional involvement in implementing the government programmes. Agriculture,
allied sectors, the non-farm sector and Co-operative movement is the thrust area of the paper.

Objectives:

1. To enable the learners to know about preparation of plan and management of agricultural
and rural development
2. To acquaint the learners with the different strategies adopted by the Government of India
for enabling financial resources for agriculture and rural development.

Unit I Agriculture and Economic Development (12 L)

Nature and scope of agricultural and rural economics; Traditional agriculture and its modernization;
Role of agriculture in economic development; Interdependence between agriculture and industry —
some empirical evidence; Agricultural development, poverty and environment. Land Reforms and
Land Policy

Unit II Agricultural Growth in India (12 L)

Recent trends in agricultural growth in India; Inter-regional variations in growth of output and
productivity; Cropping pattern shifts; Supply of inputs — Irrigation, power, seed and fertilizers;
Pricing of inputs and role of subsidies; Role of Public investment and capital formation in Indian
agriculture; Agricultural and non agricultural pricing policies in India. Food security issue and Public
distribution system, Recent initiative for second green revaluation, Globalization of Indian economy
and problems and prospects of Indian agriculture; Impact of World Trade Organization on Indian
agriculture.

Unit III Agricultural Transformation and Rural Economy (12 L)

Role of agriculture in rural economic development, rural credit markets, Micro Finance in India:
Microfinance and rural development, SHGs-Bank Linkage Programmes and emerging scenario of
Microfinance regulation in India, Causes and effects of rural urbanization Migration, Harris-Todaro
model of rural-urban migration, Agricultural wages in India; Non-agricultural rural employment-
Trends and determinants.

Unit IV Diversification of Rural Economy (12 L)

Diversification of Agriculture-Dairy Farming, Horticulture, Floriculture, Fishery, and Farm
Forestry; Rural Industrialisation- Importance, Programmes, Progress and Problems of Small- Scale
and Cottage Industries and Remedial Measures. Rural social infrastructure: issues and problems in
Educational and Health infrastructure; Housing and Sanitation; Drinking Water Supply; Rural
Transport and Communication; Rural Electrification.
Unit V Agricultural Finance (12 L)
Need for Agricultural Finance – Non-institutional sources of Agricultural Finance: Money Lenders-
Traders commission Agency – Land Lords – Institutional Sources of Agricultural Finance:
Cooperative Banks, Commercial Banks, NABARD, RRBs.

Reading List:

1. Biradar, R.R.(2008): Rural Non-Agricultural Employment in India: An Analysis of Its

Determinants and Impact on Poverty and Inequality, Concept Publishing Company, New
Delhi
2. Chadha, G. K. and A. N. Sharma (Eds) (1997): Growth, Employment and Poverty: Change
and Continuity in Rural India, D K Publishers, New Delhi.
3. Chambers, R. (1983): Rural Development: Putting the Last First, Longman, Harlow.
4. Dandekar, V.M. and N. Rath (1971): Poverty in India, GIPE, Pune.
5. Dantwala, M. L. (1973): Poverty in India: Then and Now, 1870-1970, Macmillan, Bombay.
6. Dantwala, M. L. and Others (Ed) (1986): Indian Agricultural Development since
Independence: A Collection of Essays, Oxford and IBH Publishing Co.Pvt. LTd. New
Delhi.
7. Gupta. K .R. (Ed) (2003): Rural Development in India, Atlantic Publishers and Distributors,
New Delhi.
8. Jain, Gopal Lal (1997): Rural Development, Mangal Deep Publications, Jaipur,.
9. Singh, Katar (1986): Rural Development: Principles, Polices and Management, Sage
Publications, New Delhi, (Second Edition).
10. Karalay, G. N. (2005): Integrated Approach to Rural Development: Polices, Programmes
and Strategies, Concept Publishing Company, New Delhi
11. Maheshwari, S. R. (1985): Rural Development in India, Sage, Publications New Delhi.
12. Satya Sundaram, I. (1997): Rural Development, Himalaya Publishing House, Delhi.
13. Mehta, Shiv R. (1984): Rural Development Polices and Programmes, Sage Publications, New
Delhi.
14. Srinivasan, T. N. and P. K. Bardhan (Eds) (1974): Poverty and Income Distribution in India,
Statistical Publishing Society, Calcutta.
15. Tyagi, B. P. (1998): Agricultural Economics and Rural Development, Jai Prakash Math and
Co., Meerut.
16. Visaria, P. and R. Basant Ed) (1994): Non-Agricultural Employment in India: Trends and
Prospects, Sage Publications, New Delhi.
 2. ECONOMICS OF INFRASTRUCTURE AND DEVELOPMENT
Total Credit: 04 Subject Code:
LTPC 4 0 0 4
Preamble

The important role infrastructure plays in a country‘s development need not be reiterated. In case of
developing countries, lack of adequate infrastructure has been held as a major obstacle to growth.
Of the various categories of infrastructure, the category of social overhead capital has gained
particular prominence. The contents of the paper ‗Economics of Infrastructure‘ exposes the student
wholly to issues involved in development of infrastructure in developing countries like India.

Objectives:

1. To study the role of infrastructure plays in a country‘s development need not be reiterated.
2. To expose the students wholly the lack of adequate infrastructure has been held as a major
obstacle to growth in developing countries like India.

I Infrastructure and Economic Development – Concepts (12 L)

Definition, Meaning, Classification of infrastructure (Social and Economic Infrastructure);
Infrastructure and economic development — Infrastructure as a public good; Special characteristics
of public utilities. The peak-load, Off-Load Problem, Dual Principle Controversy; Economies of
scale of Joint supply; Marginal Cost Pricing vs. other methods of pricing in public utilities; Cross-
subsidization — free prices, equity and efficiency. Urban and Rural Infrastructure schemes in India
– PURA; Spatial aspects of development and linkages with infrastructure.

II Physical Infrastructure – I (Energy, Electricity, Gas and water Supply) (14 L)

Primacy of Energy in the Process of Economic Development. Factors Determining Demand for
Energy; Effects of Energy Shortages. Energy Conservation. Renewable and Non-conventional
Sources of Energy. Energy Modelling. The Search for an Optimal Energy Policy in the Indian
Context- Electricity, Gas and Water Supply: Bulk Supply and Pricing of Electricity. The Relative
Economics of Thermal, Hydel and Nuclear Power Plants. The Case for a National Power Grid.
Financing Water Utilities. Urban and Rural Water Supply. The Exploitation of Natural Gas. Pricing
Problem.

III Physical Infrastructure – II (Transport & Communication) (14 L)

Significance of Transport Infrastructure; Factors affecting Transport Network – Growth and
Present status of Transport System in India; Impact of Transport Development on location of
economic activities; Transport Sector Reforms in India Postal and Telegraph. Telecommunication
and Information Technology; Major issues in IT – Growth and present status of IT industry in
India; Implications for Regional Development

IV Social and Tourism Infrastructure (10 L)

Growth and present status of Social Infrastructure – Education, Health, Housing and Banking &
Insurance; Impact of Social Infrastructure on Human and Economic Development, and
development of social services in Indian plans-tourism and economic development - role of state in
promoting tourism - tourism planning - infrastructural requirements for marketing tourism.
V Infrastructure Demand & Financing (10 L)
Demand Simulation for Infrastructure; Financing Needs; Infrastructure Financing in Plan Period;
Infrastructure Financing in Recent Times; Privatization of Infrastructure and PPP Models;
Implications for Infrastructural Development.

References:

1. Baru, R.V. (1998), Private Health Care in India : Social Characteristics and Trends, Sage
Publications, New Delhi.
2. Becker, G.S. (1974), Human Capital (2nd Edition), National Bureau of Economic Research,
New York.
3. Berman, P. and M.E. Khan (1993), Paying for India‘s Health Care, Sage Publications, New
Delhi.
4. Centre for Monitoring Indian Economy (1996), India : Energy Sector, CMIE, Mumbai.
5. Crew, M.A. and P.R. Kleindorfer (1979), Public Utility Economics, Macmillan, London.
6. Indian Council of Social Sciences Research (ICSSR) (1976), Economics of Infrastructure
Vol. VI, New Delhi.
7. McMohan, W.W. (1999), Education and Development : Measuring the Social Benefits,
Oxford University Press, Oxford.
8. National Council of Applied Economic Research (NCAER) (1996), India Infrastructure
Report : Policy Implications for Growth and Welfare, NCAER, New Delhi.
9. Parikh, J. (Ed.) (1997), Energy Models for 2000 and Beyond, Tata McGraw-Hill, New Delhi.
10. Parikh, K.S. (Ed.) (1997), India Development Report 1997, Oxford, New Delhi.
11. Parikh, K.S. (Ed.) (1999), India Development Report — 1999-2000, Oxford, New Delhi.

3. ENVIRONMENTAL AND RESOURCE ECONOMICS

Total Credit: 04 Subject Code:
LTPC 4 0 0 4
Preamble

Due to the speedy growth of industries and population there is an increasing demand for the
environmental resources. The free goods in the nature have now become the priced goods in the
economy. The various types of pollutions have created the problems to the human beings as well as
the biosphere. The quality of environmental resources is being fastly deteriorated. This paper would
enable the students to know about the relationship between environment and economy, global
Issues relating to environmental problems, policies and protection.

Objectives:

1. To learn the environmental degradation can very badly affect all living things coupled with
human beings in particular and it should be resorted to achieve sustainable development.
2. To undertake research pertaining to economic aspects of environment and development.
Unit I Introduction to Environmental Economics (12 L)

Basic concepts of Environmental Economics, Economy-Environment interaction, Market failure,

Property rights, Open access resources, Collective action, Environment and development trade-off,
Environmental Kuznet‘s curve.

Unit II Economics of Exhaustible and Renewable Resources (14 L)

Basic concepts - Hotelling's rule, Solow-Harwick's rule, Market structure and optimal extraction
policy, Uncertainty and the rate of resource extraction, Resource scarcity; Economic models of
forestry and fisheries, Economics of biodiversity.

Unit III Environmental Valuation (10 L)

Market and non-market valuation; Physical linkage methods; Revealed and stated preference
methods, Hicksian equivalence, Exposure to the type of models.

Unit IV Environmental Policy (10 L)

Command and control versus market mechanisms; Uncertainty and instrument choice, Regulatory
compliance and enforcement, Eco-taxes and other fiscal measures.

Unit V Global Environmental Issues (14 L)

Trans-boundary pollution, economics of global warming, Climate change negotiations, Kyoto

protocol, Impact of trade on environment and environment on trade, Porter's hypothesis, Pollution
havens hypothesis.

Suggested Readings

1. Kolstad, C., Environmental Economics, Oxford University Press, 2000.

2. Baumol, W.J, and W.E. Oates, The Theory of Environmental Policy, Cambridge University
Press, 1988.
3. Freeman, A. M., The Measurement of Environmental and Resource Values, 2nd Edition,
Resources for the Future, 2003.
4. Hanley, N., J.F. Shogren, and B. White, Environmental Economics: In Theory and Practice,
Macmillan India Ltd., 1997.
 4. FINANCIAL ECONOMICS
Total Credit: 04 Subject Code:
LTPC 4 0 0 4
Preamble

The positive and significant role of finance in the process of growth and development has been very
well recognized in the literature and indeed has become more important during the last two decades
as the financial systems of different countries have become integrated in the process of
globalization. India is no exception and has taken far reaching measures since 1991 in this direction.
This paper focuses on the financial system and its relationship with the financial markets both at the
national and international levels.

Objectives:

1. To develop an understanding of the basic principles of financial economics and also to

improve student‘s analytical skills and ability to solve financial market problems.
2. To learn in-depth concepts financial system and its relationship with the financial markets
both at the national and international levels.

Unit I Introduction (10 L)

Nature and Scope of Financial Economics; Basic financial concepts, Economics of capital
Budgeting; Investment Criteria, Estimation of project Cash Flows, Risk Analysis.

Unit II Financial System (14 L)

Financial System-Meaning, constituents, functions and importance of financial system; Indian
Banking System: Banking structure in India, Structure and functions of commercial banks;
Functions of Central bank, Monetary policy and Central bank; Money market: Introduction,
Treasury bills, Commercial paper, Certificates of deposit; Call money market, Money market mutual
funds; Capital market: Primary market-shares and debentures-Types and their issuance; Secondary
market- Stock exchange - Stock market indices, Methods of trading; Reforms in the Indian stock
market; Role of SEBI, Debt market: Introduction; Private corporate debt market, Government
securities market; Capital asset pricing model; Arbitrage pricing theory; Stock market efficiency.

Unit III Security Analysis (14 L)

Price-value interaction model- Buy-sell decision rules, information traders and liquidity traders,
Samuelson‘s continuous equilibrium, Passive and Aggressive trading. Risk and Return: Expected
return and variances-portfolios systematic and unsystematic risk-diversification and portfolio risk
Mean- Variance Criterion -systematic risk and beta-efficient frontier characteristic lines- optimum
portfolio -capital asset pricing model, arbitrage pricing theory, Valuation: Bond valuation-equity
valuation.

Unit IV Systems of Financial Markets (10 L)

Spot Markets – Contingent Claims Markets – Arrow Securities – Ordinary Securities Markets –
Incomplete Markets – Financial Markets and Financial Intermediaries.

Unit V Firms and Financial Markets (12 L)

Firms and Stock Market Equilibrium – Separation of Ownership and Control – Financial Structure
of the Firm – Insurance Markets – Debt Contracts – Credit Rationing.
Suggested Readings:

1. Bhole, L M, Financial Institutions and Markets: Structure, Growth and Innovations, Fourth
Edition, Tata McGraw-Hill Publishing Co., New Delhi, 2004.
2. Brealey, R. and S. Myers, Principles of Corporate Finance, Fifth edition, New York, McGraw
Hill, 1997.
3. Copeland, T. E. and J. F. Weston, Financial Theory and Corporate Policy, Addison Wesley,
1992.
4. Elton, E.J and M.J. Gruber, Modern Portfolio Theory & Investment Analysis, Fourth
edition, John Wiley & Sons 1991.
5. Houthakker, H.S. and P.J. Williamson, Economics of Financial Markets, Oxford University
Press, 1996.
6. Khan, M Y, Indian Financial System, Seventh edition, Tata McGraw-Hill Publishing Co.,
New Delhi, 2009.
7. Copeland T.E., J. F. Weston and K. Shastri (2005): Financial Theory and Corporate Policy,
Fourth Edition, Pearson Addison-Wesley USA.
8. Cuthbertson, K, (1996): Quantitative Financial Economics: Stocks, Bonds and Foreign
Exchange, John Wiley and Sons, USA
9. Eichberger J. and I.R. Harper (1997): Financial Economics, Oxford University Press, New
York.
10. Tuckman, B. (1995), Fixed Income Securities – Tools for Today‘s Markets, Wiley Frontiers
in Finance.
11. Zvi Bodie, Alex Kane and Alan J. Marcus, Investments, 8th edition, ISBN: 0-07- 338237-X,
McGraw-Hill.

5. GENDER ECONOMICS
Total Credit: 04 Subject Code:
LTPC 4 0 0 4
Preamble

Gender biases in societal practices and development policies have resulted in persistent gender
inequalities. It is increasingly being realized that mitigating such inequalities and enhancing women‘s
capabilities and entitlements are crucial to the overall development of the country. This course
―Economics of Gender and Development‖ would provide students an understanding of the nature
of the economic role of women and their contribution to the national economy on the basis of a
scientific and non-sexist analysis. The modules incorporated in this course provide an analysis of
issues at the theoretical level and also with regard to specificity of issues prevailing in the Indian
context.

Objectives:

1. To understand the nature of the economic role of women and their contribution to the
national economy on the basis of women-social nexus analysis.
2. To analyze the various modules related to gender and development, especially with reference
to India.
Unit I Introduction and Review (10 L)

Families and households, Importance and concepts of women studies — Women in patriarchal and
matriarchal societies and structures, patrilineal and matrilineal systems and relevance to present day
society in India, Gender bias in the theories of value, distribution, and population, Women in the
economic history , Race, class, and the economics of gender , The economics of gay identity
D'Emilio

Unit II Demography (10 L)

Demography of female population: Age structure, mortality rates, and sex ratio — Causes of
declining sex ratios and fertility rates in LDCs and particularly India — Theories and measurement
of fertility and its control; Women and their access to nutrition, health, education, and social and
community resources, and their impact on female mortality and fertility, economic status, and in
work participation rate.

Unit III Women in Decision Making (12 L)

Factors affecting decision making by women; property rights, access to and control over economic
resources, assets; Power of decision making at household, class, community level; Economic status
of women and its effect on work-participation rate, income level, health, and education in
developing countries and India; Role of kinship in allocating domestic and social resources.

Unit IV Gender and the Economics of the Labor Market (14 L)

Labour force participation patterns, Labour force participation and family structure Factors affecting
female entry in labour market; Supply and demand for female labour in developed and developing
countries, particularly India; Studies of female work participation in agriculture, non-agricultural
rural activities, informal sector, cottage and small-scale industries, organized industry, and services
sector; Discrimination : Labour market biases and gender discrimination Compensating Differentials
: Wage differentials in female activities; Determinants of wage differentials; gender, education, skill,
productivity, efficiency, opportunity; Structures of wages across regions and economic sectors.
Feminisation of the economic sector, Human Capital,

Unit V Social Security and Social Protection for Women (14 L)

Social security of women: entitlements, ensuring economic independence and risk coverage, access
to credit and insurance markets; Role of voluntary organizations, self-help groups in providing social
security; effectiveness of collective bargaining; Review of legislation for women‘s entitlements,
protection of property rights, social security — Schemes for safety net for women; Need for female
labour unions; affirmative action for women and improvement in their economic and social status-
Gender and development indices; Mainstreaming gender into development policies; Gender
planning techniques; Gender sensitive governance; Paradigm shifts from women‘s wellbeing to
women‘s empowerment; Democratic decentralization (panchayats) and women‘s empowerment in
India, Gender Budgeting.
Suggested Books and Readings

Books:

 Blau, Francine, Marianne Ferber and Anne Winkler 1998. The Economics of Men,Women
and Work (Englewood Cliffs, NJ: Prentice Hall, Third Edition). (BFW)
 Boserup E. (1970), Women‘s Role in Economic Development, George Allen and Unwin,
London.
 Desai, N. and M.K. Raj. (Eds.) (1979), Women and Society in India, Research Centre for
Women Studies, SNDT University, Bombay.
 Government of India (1974), Towards Equality — Report of the Committee on the Status
of Women in India, Department of Social Welfare, Ministry of Education and Social
Welfare,New Delhi.
 Hoffman, Saul D. and Susan L. Averett 2004. Women and the Economy: Family, Work and
Pay (Addison-Wesley-Longman). (HA)
 Krishnaraj, M., R.M. Sudarshan and A. Shariff (1999), Gender, Population and
Development,Oxford University Press, New Delhi.
 Jacobsen, Joyce P.. 1998. The Economics of Gender, 2nd edition, New York: Blackwell.
 Jacobsen, Joyce. 1998. The Economics of Gender (Cambridge: Blackwell, 2nd Edition).(On
reserve at Odegaard).
 Stack, Carol B. 1974. All Our Kin: Strategies For Survival in a Black Community. New York,
NY: Harper & Row.
 Seth, M. (2000), Women and Development : The Indian Experience, Sage Publications, New
Delhi. Economics 179
 Srinivasan K. and A. Shroff (1998), India : Towards Population and Development
Goals,Oxford University Press, New Delhi.
 Venkateswaran, S. (1995), Environment, Development and the Gender Gap, Sage
Publications, New Delhi.
 Wazir, R. (2000), The Gender Gap in Basic Education : NGOs as Change Agents, Sage
Publications, New Delhi.

Readings:

 D'Emilio, John. 1993. "Capitalism and Gay Identity," reprinted in The Lesbian and Gay
Studies Reader, Henry Abelove, et. al., eds., New York: Routledge.
 Ehrenreich, Barbara and Deirdre English. 1973. "Women and the Rise of the American
Medical Profession," reprinted in Wendy McElroy, ed., Freedom, Feminism, and the State,
2nd edition, New York: Holmes and Meier, 1991.
 Hochschild, Arlie Russel. 1989. The Second Shift, New York: Avon, chapter 4.
 McKenzie, Richard and Gordon Tullock. 1975. The New World of Economics, Homewood,
IL: Richard Irwin, chapter 9.
 Rhoads, Steven E.. 1993. Incomparable Worth: Pay Equity Meets the Market, Cambridge:
Cambridge University Press, chapter 2.
  Robinson, John P. and Melissa A. Milkie. 1998. "Back to Basics: Trends in and Role
Determinants of Women's Attitudes Toward Housework," Journal of Marriage and the
Family 60, February: 205-18.
 Segalen, Martine. 1996. "The Industrial Revolution: From Proletariat to Bourgeoisie," in
Andre Barguiere, et. al., eds, Sarah Hamburg Tenison, trans., A History of the Family vol. 2,
Cambdrige, MA: MIT Press.
 Walker, Deborah. 1995. "Feminism and Economics: Legislation or Markets?" in Rita J.
Simon, ed., Neither Victim nor Enemy, Lanham, MD: Women's Freedom Network and
University Press of America.

Videos:

 1900 House (selected episodes). Shown on the campus network

6. HEALTH ECONOMICS
Total Credit: 04 Subject Code:
LTPC 4 0 0 4
Preamble

Health status of the population forms a major variable in measuring the Human Development
Index. Health infrastructure provisions both public and private sector assumes significance in the
overall health policy of a country. The present paper analyses the national health scene, correlation
of health output and input indicators with level of economic development. Resource allocation in
the health sector both public and private sector, evaluation of benefits and costs of health services,
financing of health services and role of government and institutions also is examined.

Objectives:

1. To enable the learners to understand of the interplay between demographic processes and
economic development.
2. To acquaint the learners to gain a sound command over the basic tenets of demography as
well as key demographic issues and illustrations in India‘s context.

Unit I Introduction to Health Economics (12 L)

Defining Health Economics. Importance of Health Economics – Essential Features. Basic concepts
of health economics: Health, Health Care, Birth rate, Fertility rate, Death rate, IMR, CMR, MMR,
Morbidity rate (Acute and Chronic), Disability Adjusted Life Year (DALY), Quality Adjusted Life
Year (QUALY), Sex Ratio.

Unit II Demand for Health and Health Care (12 L)

Welfare economics of medical care, production of health, demand for health and health care, equity,
efficiency and the need, link between development and health, investing in health for economic
development.
Unit III Health Production Function (12 L)

Nature of production function, different types of production function and their applications,
national and international perspective, distributional inequities in opportunity and commercialization
of medical and para-medical education, cost escalation in the health care system, easy access and
availability to appropriate technology, need for regulation and control

Unit IV Health Care Incentives, Costing and Financing (12 L)

Goals of health care provision and financing, competitive health insurance and risk adjustment,
Demand and supply of health insurance, asymmetric information and agency, costing of health care
market insurance, self-insurance and protection, employment based insurance, health insurance in
India, , public-private partnership and the role of state

Unit V Measuring Health Status and Health Care in India (12 L)

Measurement of health state utilities, QALYs and its alternatives- different approaches of valuing
health, multi-attribute utility instruments and their development - Various health indicators and its
recent trend, health care expenditures, target of health care and achievements, different options for
financing healthcare, taxation, user fees, health insurance, role of urban and rural local bodies, role
of WHO, economic impact of HIV/AIDS in India and gender issues.

Suggested Readings

1. CII-Mckinsey Report, Healthcare in India: The Road Ahead, 2004.

2. Culyer, A. J. and J.P. Newhouse (eds.), Handbook of Health Economics, Volume 1 A & 1 B,
NorthHolland, 2000.
3. Folland, S., A.C. Goodman and M. Stano, Economics of Health and Health Care, Fifth
edition, Pearson Prentice Hall, 2006.
4. Pradhan, B.K. and R Sundar, Gender Impact of HIV and AIDS in India, United Nations
Development Programme, 2006.
5. Pradhan, B.K. and R Sundar, Socio-economic impact of HIV AIDS in India, United Nations
Development Programme, 2006.
6. Reports of WHO.
7. Zweifel, P., Health Economics, Oxford University Press, 1997.
 7. INTERNATIONAL ECONOMICS AND POLICY
Total Credit: 04 Subject Code:
LTPC 4 0 0 4

Preamble

International Economics and Economic Policy focuses on contributions that are relevant to
economic policy, emphasizing both theoretical and empirical papers. In particular, the course
focuses on comparative economic policy; international political economy, including international
organizations and policy cooperation; monetary and real/technological dynamics in open
economies; globalization and regional integration; trade; migration; international investment; internet
commerce; and regulation.

Objectives:

1. To enable the students to understand to analyze various issues pertaining to India‘s

International Trade and Policies for economic development.
2. To learn the student about the International monetary systems and its reforms.

Unit I Theory of International Trade (12 L)

Mercantilist theory, Classical and Neo-classical (Adam Smith, Ricardo, J.S.Mill,H-O Model,
Haberler), Theory of Opportunity Cost, New construction of Ricardian Theory, New Trade
Theories (Vernon, Posner, Cannon) Technological dynamics, Factor intensity Reversal, Leontief
Paradox, Stopler Samuelson theorem, Theory of Change in Factor Endowment, Factor Equalization
Theorem, Specific Factor Model, Immisirizing Growth, Theory of Custom Union, Gains From
Trade, Inter and Intra Industry Trade Model, Free trade better than no trade, Restricted trade better
than no trade and free trade

Unit II External Trade Policy (12 L)

Exim policy, ECGC, Export Promotion Councils, DGFT, Incoterm, Tariff and Non-Tariff Barriers,
Terms of trade, Protection, New Economic Policy

Unit III Theory of International Finance (12 L)

Prices in the open economy: purchasing power parity, Financial markets in the open economy,
Open economy macroeconomics, exchange rate determination: Flexible prices: the monetary Model,
Fixed prices: the Mundell-Fleming model, Coordination of Fiscal and Monetary policy under fixed
and flexible exchange rate, Asset Market Model, Exchange rate dynamics, Expectations, Balance of
Payment and adjustment Mechanisms, Foreign Trade Multiplier and repercussion effect.
Unit IV International Monetary System (12 L)

International Monetary system, Euro currency, Euro dollar, Dollarization, SDR, China and reserve
currency issues. Optimum currency areas and monetary union, Recent Financial crisis Regional
Trade Agreement, Economic Integration in North America, The European Union: Many Markets
into One, ASEAN, Trade and Policy Reform in Latin America, Emerging Economies, BRICS and
the world economy,

Unit V International Financial Architecture (12 L)

IMF, World Bank, WTO, GATT, UNCTAD, Reforming the international institutional architecture

Suggested Reading:

 Pugel, T.A. (2008), International Economics, 13th Edition, Tata Mcgraw hill publishing Co,
New Delhi.
 Bhagwati, J. N., A. Panagariya and T.N.Srinivasan(1998), Lectures on International Trade,
OUP,NewDelhi, Second Edition.
 Krugman, P.A. and M Obstfeld (2003), International Economics: Theory and Policy,Sixth
Ed.
 Salvatore Dominick (2010), International economics, 8th edition, Wiley Publication, New
Delhi, ISBN: 978-81- 265-1413-7
 Laurence Copeland (May, 2008), Exchange Rates and International Finance 5th Edition
Paperback, ISBN13: 9780273710271
 Leontief, W. W. (1953). "Domestic Production and Foreign Trade: The American Capital
Position Re-examined". Proceedings American Philosophical Society 97: 332–349.
 Leamer, E.E. (1980). "The Leontief Paradox Reconsidered". Journal of Political Economy
88: 495– 503.
 Y. Shiozawa (2007) A New Construction of Ricardian Trade Theory: A Many-country,
Manycommodity with Intermediate Goods and Choice of Techniques, Evolutionary and
Institutional Economics Review, 3(2): 141-187.
 Jones, Ronald W. 1961 Comparative Advantage and the theory of Tariffs; A Multi-Country,
Multi-commodity Model, Review of Economic Studies, 28(3): 161-175.
 R. Dornbusch; S. Fischer; P. A. Samuelson 1977 Comparative Advantage, Trade, and
Payments in a Ricardian Model with a Continuum of Goods, The American Economic
Review, 67(5): 823-839.
 Shiozawa, Y. 2007 A New Construction of Ricardian Trade Theory—A Many-country,
Manycommodity Case with Intermediate Goods and Choice of Production Techniques—,
Evolutionary and Institutional Economics Review 3(2): 141-187.
 Shiozawa, Y. 2007 A New Construction of Ricardian Trade Theory—A Many-country,
Manycommodity Case with Intermediate Goods and Choice of Production Techniques—,
Evolutionary and Institutional Economics Review 3(2): 141-187.
 Chipman, J. (1965) ―A Survey of the Theory of International Trade, Part I: The Classical
Theory,‖ Econometrica 33: 477–519.
 Balassa, B. (1963) ―An Empirical Demonstration of Classical Comparative Cost Theory,‖
Review of Economics and Statistics 45: 231–8.
 Haberler, Gottfried (1936) The Theory of International Trade, New York: Macmillan, ch.
12.
 Heller, H. Robert (1968) International Trade, Theory and Empirical Evidence, Englewood
Cliffs, NJ: Prentice Hall, ch. 4.
 Rybczynski, T. M. (1955) ―Factor Endowments and Relative Commodity Prices,‖
Economica 22: 336–41; reprinted in R. Caves and H. Johnson (eds) (1968) Readings in
International Economics, Homewood, IL: Irwin.
 Samuelson, P.A. (1949) ―International Factor-Price Equalization Once Again,‖ Economic
Journal 59: 181–97.
 Stolper, W. and Samuelson, P.A. (1941) ―Protection and Real Wages,‖ Review of Economic
Studies 9: 58–73.
 Vernon, R. (1966) ―International Investment and International Trade in the Product Cycle,‖
Quarterly Journal of Economics 80:190–207.
 Balassa, B. (1975) ―Trade Creation and Diversion in the European Common Market,‖
European Economic Integration. Amsterdam: North-Holland.
 Brown, A., Deardorff, A., and Stern, R. (1992) ―North American Integration,‖ Economic
Journal 102: 1507–1518.
 Frankel, J.(1997) Regional Trading Blocs in the World Economic System, Washington, DC:
Institute for International Economics.
 Hufbauer, G. and Schott, J. (1993) NAFTA: An Assessment, Washington, DC: Institute for
International Economics.
 Staiger, Robert (1995) ―International Rules and Institutions for Trade Policy,‖ in G.
Grossman and K. Rogoff
 Jackson, John (1997) The World Trading System, Law and Policy of International Economic
Relations, 2nd edn, Cambridge, MA: MIT Press.
 Amiti, M. and Freund, C. (2007) ―An Anatomy of China‘s Export Growth,‖ Paper prepared
for Global Implications of China‘s Trade, Investment and Growth Conference, IMF
Research Department.
 Balassa, B. (1971) The Structure of Protection in Developing Countries, Baltimore: Johns
Hopkins University Press.
 Havrylyshyn, O. (1990) ―Trade Policy and Productivity Gains in Developing Countries,‖
World Bank Research Observer, 1–24.
 8. PUBLIC ECONOMICS AND POLICY
Total Credit: 04 Subject Code:
LTPC 4 0 0 4
Preamble

Role and functions of the Government in an economy have been changing with the passage of time.
The term ‗Public Finance‘ has traditionally been applied to the package of those policies and
operations which involve the use of tax and expenditure measures. This course covers the rationale
for government provision of goods in a market economy and the effects of taxes on economic
efficiency. We will also contrast the traditional public finance view of the role of government with
the public choice school of thought. The primary emphasis is on expenditures and taxes at the
federal level. As a part of the broader fiscal restructuring plan of the central and state governments
in India, reforms have been initiated with particular emphasis on radical reforms in indirect taxes
both in terms of tax policy reforms like base broadening, elimination of tax concessions and
reduction in the number of tax rates and rationalization of tax structures, as well as tax
administrative reforms like modernization of tax administration and extensive use of IT.

Objectives:

1. To enable the students to understand about the fiscal institutions, tax structure and its
distribution, public policy and other several issues related to public economics.
2. To help the students to understand the nature, structure and functioning of the public
economics, especially with reference to India.

Unit I Introduction (12 L)

Public Finance – Definition and Scope; Public and Private finance. The Role of the Government in
a changing perspective, Fiscal Functions of the Government, Co-ordination among these functions.

Unit II Welfare Foundations of Public Economics (12 L)

Distinction between Private and Public Goods, Pareto Optimality, Theory of Second best, Market
Failure, Optimal provision of Public Goods, Free Rider Problem. The Pure Theory of Public Goods
by Samuelson.

Unit III Public Expenditure (12 L)

Growth and Structural changes in public expenditure, Wagner‘s Law, Peacock and Wiseman‘s
hypothesis, Public Choice in Determining the Level of Public expenditure, Public expenditure on
health, education and subsidies in India, Criteria for Expenditure Evaluation - Valuation of Benefit
and Cost, Choice of Discount rate.

Unit IV Principles of Taxation (12 L)

Principle of Fiscal Neutrality, Excess Burden, Principle of Equity, Benefit Principle, Bowen and
Lindhal Models, Ability to pay Principle.(7) Tax policy and administration Reform in indirect tax
structure of India: MODVAT, CENVAT, Value Added Tax (VAT), Issue of taxation of services in
India, Goods and Service Tax (GST), Problem of Tax Evasion and Parallel Economy.
Unit V Issues on Federal Finance in India (12 L)
Devolution Criteria, Division of fiscal powers between the centre and states and local bodies,
problems of inter-jurisdictional spillovers and issues of tax harmonisation, Report of latest Finance
Commission.

Suggested Readings:

 Richard A. Musgrave (1989), Public Finance in Theory and Practice McGraw Hill Book
Company, New York.
 M. Govinda Rao and Tapas Sen (1998) : Financial Federalism in India, McMillan, Delhi.
 Arun Kumar (1998) : Black Economy in India, Penguin Books, New Delhi.
 Buchaman J.M. (1970), The Public Finances, Richard D.Irwin, Homewood.
 Hemlata Rao (2006) Fiscal Federalism –Issues and Policies, New Countury Publications,
New Delhi.
 Atkinson A.B. and J.E. Siglitz (1980). Lectures on Public Economics, Tata MacGraw Hill,
New Delhi.
 Comes R. and T.Sandler (1986) The theory of Externalities, Public Goods and Club Goods,
Cambridge University Press, Cambridge.
 Alan, A. Tait, (1972): The Value Added Tax, McGraw- Hill Publications.
 National Institute of Public Finance and Policy, (1989): The Operation of MODVAT,
NIPFP, New Delhi.

9. REGIONAL ECONOMIC ANALYSIS

Total Credit: 04 Subject Code:
LTPC 4 0 0 4
Preamble

It is being increasingly recognized that market forces do not result automatically in regionally
balanced development of economics. For effective and meaningful intervention to pull up
economically and socially the less developed regions, it is necessary to understand the dynamics of
regional development. This paper attempts to teach to the students the dynamics of regional
development right from the meaning and concepts related to regional development to a broad
overview of the techniques of regional analysis.

Objectives:

1. To enable the students to understand the basic concepts of regional importance of economic
development
2. To enable the students to cope up regional coastal resources and management for
sustainable economic development.
Unit I Basics of Regional Economics (12 L)

Need for study of Regional Economics, Definition of a region, Different types of regions,
Differences between region and a nation; Regional income, Problems of estimation, Indicators of
regional development, Social, Economic and Political factors in regional growth.

Unit II Regional Allocation of resources (12 L)

Balanced regional development; Cumulative Causation Models, Regional linkage-spread and

backwash effects; Regional Convergence and divergence theories, Regional Polarisation, regional
Economic Multiplier. The basis of interregional trade, Regional trade and factor price equalization,
Regional trade and factor migration, issues and challenges in regional trade

Unit III Transport costs and location (12 L)

Location and regional growth, Transportation and regional growth, the role of cities in regional
development, Thunen‘s, Weber‘s theory of location; Locational and weight triangles; Locational
interdependence. Locational – Views of Christaller, Losch, Perroux, Florance, Hoover, Polander and
Isaxd – Dynamic theory of regions. Hotelling Prinicple

Unit IV Regional Development in India (12 L)

Socio-Economic Regional imbalance in India; Regional planning; Rural urban inequality; Role of
Planning commission and finance commission in regional development, Trends in Regional
Disparities in Income & Consumption, Sectoral Income and Employment Pattern across regions,
Spatial Concentration of Industries in Liberalised Regime, Trends in regional agro production and
productivity, Regional Distribution of Infrastructure, Trends in regional disparities in Infrastructure.
Key issues in regional development of Rajasthan.

Unit V Coastal Resource and Environment (12 L)

Issues in Coastal Zone Management in India – Impact of Globalisation in Coastal Zone - Impact of
Megacities in Coastal Zone – Coastal Disasters - Coastal Erosion - Coastal Disaster Planning and
Management - Tourism Issues - Coastal Zone Regulations in India – CRZ Classification - Coastal
Resource Management in Tamil Nadu – Issues – Gulf of Mannar and Bio diversity and Its
Conservation - Coral Reef Management Issues in Gulf of Mannar – and Role of Government,
NGOs and Communities

Selected Readings:

 Adelman, I. and C.T. Morris (1973) – Economic Growth and Social Equity in Developing
Countries, Stanford, USA
 Ahluwalia, M. (1976) – ―Inequality, Poverty, and Development‖, Journal of Development
Economics, Vol. 6
 Anand, S. and R. Kanbur (1993) – ―The Kuznets Process and the Inequality-Development
Relationship‖, Journal of Development Economics, Vol. 40
 Anand, S. and R. Kanbur (1993a) – ―Inequality and Development: A Critique‖, Journal of
Development Economics, Vol. 41
 Hoover, Edgar M., An Introduction to Regional Economics. New York. Alfred A. Knopf,
2nd edition.
 Isard, Welter, (1976), Methods of Regional Analysis, The M.I.T. Press Massachusetts and
London, England, Chaps, 4,6,7,9 & 11.
 Kuznets, S. (1955) – ―Economic Growth and Economic Inequality, American Economic
Review, Vol. 45, Kuznets, S. (1963) – ―Quantitative Aspects of Economic Growth of
Nations: VIII, Distribution of Income by Size‖, Economic Development and Cultural
Change, Vol. 12.
 Mathur, Ashok (2000), National and Regional Growth Performance in the Indian Economy,
in Reform and Employment, New Delhi, IAMR and Concept Publishers.
 Needleman,L., (ed.), 1968), Regional Economics, Penguin Books Ltd., Part-II, Cha. 4.
 Parioff, Harvey et. al., Regions, Resources and Economic Growth. University of Nebraska
Press, Lincoin USA. Part II, pp.55-104.
 Richardson, Harry W., (1976): Regional Economics, Weidenfold and Nicoloson, London,
Chaps. 1 to 5,7,9 & 13.
 Shand, Ric and S. Bhide (2000), ―Sources of Economic Growth: Regional Dimensions of
Reforms,‖ Economic and Political Weekly, Vol. 35, No. 42, October 14.
 Smith, David, (1971), Industrial Location: An Economic Geography Analysis, Hohn Wiley,
New York.
 Donald Robadue, Jr. (Ed.) Eight years in Ecuador The Road to Integrated Coastal
Management –Coastal Resources Centre University of Rhode Island, USA, 1995.
 Richard B. Pollnac and Brian R. Crawford, Discovering Factors that Influence the Success of
Community –Based Marine Protected Areas in the Visayas, Philippines,
 Coastal Resources Center, University of Rhode Island, USA,2000.
 Gordon W. Thayer et al., Science – Based Restoration Monitoring of Coastal Habitats, USA
Department of Commerce NOAA, USA,2003.
 Richard K. Wallace and Kristen M. Fletcher, Understanding Fisheries Management, Auburn
University and the University of Mississippi, USA, 1996.
 Stephen Olsen, Donald D. Robadue, Jr., Luis Arriaga , Atacames Special Area Management
Plan ,Atacames-Sua-Muisne, CRC,URI, USA,1993.
 10. INDUSTRIAL DEVELOPMENT
Total Credit: 04 Subject Code:
LTPC 4 0 0 4
Preamble

It is being increasingly recognized that market forces do not result automatically in regionally
balanced development of economics. For effective and meaningful intervention to pull up
economically and socially the less developed regions, it is necessary to understand the dynamics of
regional development. This paper attempts to teach to the students the dynamics of regional
development right from the meaning and concepts related to regional development to a broad
overview of the techniques of regional analysis.

Objectives:

1. To enable the learners to understand in the contemporary world with globalization and
liberalization more and more attention is being given to industry.
2. To acquire knowledge among the students on the basic issues such as productivity,
efficiency, capacity utilization and debates involved in the industrial development of India.

Unit I Theory of the Firm (10 L)

Undifferentiated Products - Cournot, Stackelberg, Dominant firm model, Bertrand-Heterogeneous
products - Chamberlin‗s small and large number case-Kinked demand curve theory - Bain‗s limit
pricing - Sales and growth maximization hypothesis - Managerial theories of the firm - Game
theoretical models.

Unit II Investment Decisions (10 L)

Conventional and modern methods - Risk and uncertainty - Sensitivity analysis - Financial
statements and ratio analysis - Inflation accounting - Project appraisal methods – Industrial finance-
Sources of finance - Capital structure - Incentive, signaling and control arguments - Separation of
ownership and control.

Unit III Vertically Related Markets and Competition Policy (12 L)

Successive and mutually related market power - Monopoly, variable proportions and price
discrimination - Monopsony and backward integration - Uncertainty - Diversification, rationing and
cost economics and asset specificity - Internal hierarchies Hierarchies as information systems -
Incentive structures and internal labour markets - Supervision in hierarchies - Competition policy:
Need and requirements - Mergers and acquisitions - Coordination with other policies.

Unit IV Product market Differentiation and Imperfect Information (14 L)

Lancastrian and Hotelling approaches – representative consumer approach and Chamberlin‗s model
of diversity of tastes - The address approach -Competition in address-Free entry-Pure profit and
non-uniqueness in free entry equilibriumproduct diversity and multi address firms - Bargains and
rip-offs - Theory of sales - Quality and reputations-Product varietyImperfect discrimination and
price dispersions -Advertising - Dorfman Steiner condition - Lemons and information asymmetries.
Unit V Technical Change, Market Structure and Indian Industry (14 L)
The Economics of patents - Adoption and diffusion of innovations - Innovations and rivalry :
Kamien and Schwartz - Measures of concentration - Concentration ratio - Hirschman - Herfindahl
index - Entropy measure - Structure conduct performance paradigm - Contestable markets - Fixed
costs, Sunk costs and contestability - Stackelberg - Spence – Dixit model- Industrial growth in India:
Trends and prospects – Public enterprises; efficiency, productivity and performance constrains-
Small scale industries : definition, role, policy issues and performance - Capacity utilization -
Industrial sickness and Exit policy - Concept of competitiveness - Nominal protection-coefficients
(NPC) and effective rate of protection (ERP) – Total-factor productivity - Technology transfer -
Pricing policies-Administered pricing and LRMC based tariffs – Industrial location policy in India;
regional imbalance - Globalization and competition - Privatization.

Selected Readings:

 Ahluwalia, I. J. (1985), Industrial Growth in India – Stagnation since Mid-sixties, Oxford

University Press, New Delhi.
 Ahluwalia, I. J. (1991), Productivity and Growth in Indian Manufacturing, Oxford University
Press, New Delhi.
 Desai, A. V. (1994), ―Factors Underlying the Slow Growth of Indian Industry‖, in Indian
Growth and Stagnation - The Debate in India Ex. Deepak Nayyar, Oxford University Press.
 Ferguson, Paul R. and Glenys J. Ferguson, (1994), Industrial Economics - Issues and
Perspectives, Macmillan, London.
 Shepher, William G. (1985), The Economics of industrial Organisation, Prentice - Hall, Inc,
Englewood Cliffs, N. J.
 Staley, E & Morse R. (1965), Modern Small Industry for Developing Countries, McGraw
Hill Book Company.
 Vepa R. K. (1988), Modern Small Industry in India, Sage Publications.
 Srivastava, M.P. (1987), Problems of Accountability of Public Enterprises in India, Uppal
Publishing House, New Delhi.
 Mohanty, Binode (1991), Ed. Economic Development Perspectives, Vol. 3, public
Enterprises and Performance, Common Wealth Publishers, New Delhi.
 Jyotsna and Narayan B. (1990), ―Performance Appraisal of PEs in India: A Conceptual
Approach‖, in Public Enterprises in India - Principles and Performance, Ed. Srivastave
V.K.L., Chug Publications, Allahabad

***