Appendix-B

INDIAN INSTITUTE OF TECHNOLOGY ROORKEE

NAME OF DEPT. /CENTRE: Humanities and Social Sciences

1. Subject Code: HSN - 502 Course Title: Microeconomics I

2. Contact Hours: L: 3 T: 1 P: 0

3. Examination Duration (Hrs): Theory : 3 Practical : 0

4. Relative Weightage: CWS : 25 PRS : 0 MTE : 25 ETE : 50 PRE : 0

5. Credits: 4 6. Semester: Autumn 7.Subject Area: PCC

8. Pre-requisite: Nil

9. Objective: To provide an understanding of consumer and producer behavior, concept of

markets and competition, and tools of comparative statics and their application
to price theory.

10. Details of Course:

S. No. Contents Contact

hours
1 Consumer Behaviour: 6
Theories of consumer behavior, preference orderings, demand,
duality theory, revealedpreference& aggregate demand
2 Producer Behaviour: 8
Technology and production sets, costs and production functions
(for competitive firm),cost minimization, profit maximization &
duality theoryonce more, aggregate supply
3 Competitive Market: 8
Equilibrium in a competitive market, stability and comparative
static properties, general equilibrium and Pareto optimality -
fundamental theorems of welfare economics, externalities and
market failures
4 Imperfect Markets: 6
Imperfect competition and market structure, bilateral monopoly,
single product monopoly, discriminating monopoly, durable goods
monopoly, recycling, leasing versus selling & the Coase
conjecture; Monopsony and monopolistic market structure
5 Game Theory with Applications to Oligopoly Theory: 8
Game Theory: Extensive and normal form representation of
games, Nash equilibrium (in pure and mixed strategies), definition
and existence; subgame perfection in dynamic games.
Applications: strategic behaviour of firms in a market (Bertrand,
 Cournot and Stackelberg models) and entry deterrence.
6 Markets for Inputs: 6
Price and employment of inputs, the firm’s demand curve-one
variable input and several variable inputs, market demand curve
and supply curve, equilibrium price and employment of an input,
rent, imperfectly competitive output markets
Total 42

11. Suggested Books:

S. No. Name of Books/Author/Publisher Year of

Publication/
Reprint
1 Hal R. Varian, Microeconomic Analysis, W. W. Norton & 2010
Company, 3rdEdition
2 Andreu Mas-colell, Michael D. Whinston and Jerry R. Green 2012
John, Microeconomic Theory, Oxford University
Press, 1st Edition
3 Geoffrey Alexander Jehle and Philip J. Reny, Advanced 2011
Microeconomic Theory, Financial Times Prentice Hall, 3rd
Revised Edition
4 Hal R. Varian, Intermediate Microeconomics with Calculus, 2014
W. W. Norton & Company, International Student Edition
5 H. Gravelle and R. Rees, Microeconomics, Pearson India, 2007
3rd Edition
6 E. Mansfield and G. Yohe, Microeconomics, Viva-Norton, 2010
11th Edition
 INDIAN INSTITUTE OF TECHNOLOGY ROORKEE

NAME OF DEPT. /CENTRE: Humanities and Social Sciences

1. Subject Code: HSN - 503 Course Title: Macroeconomics I

2. Contact Hours: L: 3 T: 1 P: 0

3. Examination Duration (Hrs): Theory : 3 Practical : 0

4. Relative Weightage: CWS : 25 PRS : 0 MTE : 25 ETE : 50 PRE : 0

5. Credits: 4 6. Semester: Autumn 7.Subject Area: PCC

8. Pre-requisite: Nil

9. Objective: To impart knowledge of working of the whole economy: the determination

of income, output, employment, savings, interest rates, inflation and
macroeconomic policies.

10. Details of Course:

S. No. Contents Contact

hours
1 Introduction: 2
Macroeconomic concepts and issues
2 National Income Accounting: 7
National income accounting structure, key concepts,
measurements and difficulties, and circular flow of income- for
closed and open economy; GNP and welfare, Inter-temporal and
international comparisons of national income, Social accounting
and its significance, Green GDP, Beyond GDP
3 Income and Employment Theory: 6
Aggregate Demand and aggregate supply; Schools in
Macroeconomics: Classical to Neo-Keynesian, Multiplier and
accelerator principles; Equilibrium in the product, labour and
money markets
4 IS-LM Model: 5
Adjustment towards equilibrium, multiplier analysis, role of
government in terms of monetary and fiscal policy
5 Consumption and Saving: 7
Consumption under certainty- Life-Cycle and Permanent Income
Hypothesis; Consumption under uncertainty-The Modern
Approach, Random Walk Hypothesis; Consumption and Risky
Asset; Beyond the Permanent Income Hypothesis
 6 Inflation and Unemployment: 8
Inflation- theories, measurement, causes, effects and social
costs; Unemployment, the demand for and the supply of labour,
Wage rigidity; Inflation-unemployment trade-off, Phillips curve,
inflation targeting, Seignorage and Inflation Problems, Non-
accelerating inflation rate of unemployment, Inflationary
expectations- Adaptive and rational expectations hypothesis
7 Investment Theories: 7
Keynesian, Post-Keynesian, Neo-Keynesian (Jorgenson
approach), Lags in investment function

Total 42

11. Suggested Books :

S. No. Name of Books/Author/Publisher Year of

Publication/
Reprint
1 Gregory Mankiw, Macroeconomics, Macmillan, 8th Edition 2013
2 Bernanke B.S., Olekalns, N. and H. R. Frank, Principles of 2014
Macroeconomics, McGraw-Hill, 4th Edition
3 Errol D’Souza, Macro Economics, Pearson Education, 2012
Pearson, 2nd Edition.

4 Richard T. Froyen, Macroeconomics: Theories and Policies, 2014

Pearson Education, Pearson, 10th Edition.
 INDIAN INSTITUTE OF TECHNOLOGY ROORKEE

NAME OF DEPT. /CENTRE: Humanities and Social Sciences

1. Subject Code: HSN - 504 Course Title: Mathematics for Economists

2. Contact Hours: L: 2 T: 1 P: 0

3. Examination Duration (Hrs): Theory : 2 Practical : 0

4. Relative Weightage: CWS : 25 PRS : 0 MTE : 25 ETE : 50 PRE : 0

5. Credits: 3 6. Semester: Autumn 7.Subject Area: PCC

8. Pre-requisite: Nil

9. Objective: To introduce the mathematical tools and techniques necessary for

understanding economic theories and their real-life applications.

10. Details of Course:

S. No. Contents Contact

hours
1. Introduction to Mathematical Economics: 2
Economic models; Review of fundamental concepts- Real
number system, sets, relations and functions
2. Linear Models and Matrix Algebra: 6
Solving univariate and Multivariate Systems of Linear Equations,
Basic matrix operations, Determinant; Applications to analysis of
Markets and National Income Accounting
3. Use of Differentiation in Economic Analysis: 5
Partial & Total Derivatives; Tests of continuity and monotonicity of
a function; Average and Marginal concepts; Elasticity
4. Optimization and Equilibrium: 5
Maxima and minima; Unconstrained optimization techniques;
Constrained optimization techniques - Lagrange Multiplier
Method; Application to consumer behavior, production and costs.
5. Integral Calculus and Dynamic Analysis: 5
First and higher order ordinary differential equations;
Simultaneous differential equations-Dynamic Input-output
models; Integral calculus application to welfare analysis
6. Mathematical Programming: 5
Simple linear programming models; Duality Theorem; Non-Linear
Programming
Total 28
 11. Suggested Books :

S. No. Name of Books/Author/Publisher Year of

Publication/
Reprint
1. Alpha C Chiang & Kevin Wainwright, Fundamental 2013
Methods of Mathematical Economics, McGraw Hill
Education, 4th Edition
2. Carl P. Simon, Mathematics for Economists, Viva Books 2010
3. Sydsaeter, K., Hammond, P. J. and Strom, A., Essential 2012
Mathematics for Economic Analysis, Pearson, 4th
Edition
4. Sydsaeter, K., Hammond, P. J. and Strom, A., Further 2008
Mathematics for Economic Analysis, Pearson, 2nd
Edition
 INDIAN INSTITUTE OF TECHNOLOGY ROORKEE

NAME OF DEPT. /CENTRE: Humanities and Social Sciences

1. Subject Code: HSN - 505 Course Title: Development Economics

2. Contact Hours: L: 3 T: 1 P: 0

3. Examination Duration (Hrs): Theory : 3 Practical : 0

4. Relative Weightage: CWS : 25 PRS: 0 MTE : 25 ETE : 50 PRE : 0

5. Credits: 4 6. Semester: Autumn 7.Subject Area: PCC

8. Pre-requisite: Nil

9. Objective: To impart knowledge of various development theories, strategies and issues.

10. Details of Course:

S. No. Contents Contact
Hours
1 Introduction: 4
Basic concepts of growth and development, inclusive growth,
change in the meaning of development over a period of time,
socio-economic development indicators
2 Growth, Poverty and Inequality: 6
Uni- and multi-dimensional concepts of poverty, poverty
indicators, poverty and vulnerability, inequality and development;
Inverted-U Hypothesis; Measurement of inequality (Lorenz curve,
Gini coefficient, Theil index); Inequality axioms
3 Theories of Economic Growth: 7
Classical, Keynesian, post-Keynesian, Neo-Keynesian and Neo-
Classical
4 Strategies of Economic Development: 6
The Big Push theory of industrialization; the Rostow’s Theory of
Stages of Growth; the Balanced versus Unbalanced Growth
theories; Economic Dualism.
5 Institutions and Economic Development: 7
Types of institutions- Formal and informal, government, private
and non-governmental; Property rights, legal systems, rule of law;
Contribution of institutions to economic growth and efficiency;
Role of civil societies in economic development, The rights-based
approach to development; social capital and development
6 Population and Economic Development: 6
Role of population growth in the development process,
Population growth and living standards, Low Level Equilibrium
trap; Demographic dividend; Migration and development
7 Structural Adjustment and Development: 6
 The fall of the centrally planned economies; State versus Market;
Effects of Structural Adjustment on economic growth; Structural
adjustment and stabilization policies of IMF and World Bank
Total 42

11. Suggested Books:

S. No. Author (s)/Title/ Publisher Year of

Publication/
Reprint

1 A.P. Thirlwall, Growth and Development, Palgrave Macmillan, 2006

8th Edition
2 Michael P. Todaro and Stephen C. Smith, Economic 2011
Development, Prentice Hall, 11th Edition
3 K. Staudt, Managing Development, Sage Publications 1991

4 Subrata Ghatak, Introduction to Development Economics, 2003

Routledge, 4th Edition
5 Ray, Debraj, Development Economics, Princeton University 1998
Press
6 Word Development Reports, World Bank Annual
 INDIAN INSTITUTE OF TECHNOLOGY ROORKEE

NAME OF DEPT. /CENTRE: Humanities and Social Sciences

1. Subject Code: HSN - 506 Course Title: Money, Banking, and Financial
Markets

2. Contact Hours: L: 2 T: 1 P: 0

3. Examination Duration (Hrs): Theory : 2 Practical :0

4. Relative Weightage: CWS : 25 PRS : 0 MTE : 25 ETE : 50 PRE :0

5. Credits: 3 6. Semester: Autumn 7.Subject Area: PCC

8. Pre-requisite: Nil

9. Objective: To provide knowledge of economic principles that underlies the role of money
in the economy: the operation of banks and other financial institutions and
the impact of credit and monetary policies on the economy.

10. Details of Course:

S. No. Contents Contact

hours
1 Introduction: 2
Understanding ‘money’- Functions, Evolution and Measures of
Money; Overview of financial system and markets
2 Demand for and Supply of Money: 5
Money Demand function- Classical and Keynesian approaches to
money demand, Quantity theory of money, Keynes’ liquidity
preference theory; Neutrality of money; Friedman’s modern
quantity theory of money, Baumol-Tobin Model; Money in IS-LM
framework
3 Structure of Interest Rates: 5
Behaviour and term structure of interest rates, Changes in
Equilibrium Interest rate, Yield curve and Theories on Term
Structure of Interest rates- Expectations Theory, Segmented
Market, Liquidity Premium
4 Money and Capital Markets: 7
Instruments, targets and functions, Banking Industry- structure,
role and performance; NBFIs and NBFCs; Development Financial
institutions, Financial reforms and policies
5 Advanced Topics in Banking Finance: 3
Market micro-structure, Role of regulation and incentives,
International standards
6 Central Banking and Monetary Policy: 6
Role and functions of Central Bank; Credit policy, Monetary
 policy- tools, strategy and effects, Policy rules vs. discretion,
Optimal monetary policy
Total 28

11. Suggested Books :

S. No. Name of Books/Author/Publisher Year of

Publication/
Reprint
1 Frederic S. Mishkin, Economics of Money, Banking, and 2012
Financial Markets, Prentice Hall, 10th Edition.
2 Carl E.Walsh, Monetary Theory and Policy, MIT Press, 3rd 2010
Edition.
3 Bennett T. McCallum, Monetary Economics: Theory and 1989
Policy, Macmillan, Facsimile Edition
4 L M Bhole, and Jitendra Mahakud, Financial Institutions and 2009
Markets, Tata McGraw-Hill Education, 5th Edition
5 Annual Reports, Reserve Bank of India Annual
 INDIAN INSTITUTE OF TECHNOLOGY ROORKEE

NAME OF DEPT. /CENTRE: Humanities and Social Sciences

1. Subject Code: HSN - 507 Course Title: Microeconomics II

2. Contact Hours: L: 3 T: 1 P: 0

3. Examination Duration (Hrs): Theory : 3 Practical : 0

4. Relative Weightage: CWS : 25 PRS : 0 MTE : 25 ETE : 50 PRE : 0

5. Credits: 4 6. Semester: Spring 7.Subject Area: PCC

8. Pre-requisite: Elementary knowledge of mathematics and intermediate microeconomics.

9. Objective: To develop understanding on decision making under uncertainty, advance

game theory, role of information in economic analysis and current topics in
microeconomic theory.

10. Details of Course

:
S. No. Contents Contact
hours
1 Decision-making under Uncertainty: 8
Decision making under risk, decision making under uncertainty,
attitudes towards risk - applications of theories to understand
lotteries and gambling, stochastic dominance, expected utility
theorem, critiques of expected utility theory, measurement of risk
aversion.
2 Game Theory under Incomplete Information: 8
Static and Dynamic Games of Incomplete information - Concepts
and applications
Principal agent models - Hidden action and hidden information
3 Information Economics: 9
Market Failure under adverse selection, signaling models,
screening models (will address price discrimination by a
monopolist when buyer type is “private” information), optimal
contact design in a moral hazard (hidden action model),
applications
4 Special Topics 1: 9
(i) Mechanism design with money and without money
(ii) Applications: Spectrum auctions, coal auctions, school
choice, kidney exchange, etc.

5 Special Topics 2: 8
(i) Network economics
(ii) Law and Economics
 Total 42

11. Suggested Books:

S. No. Name of Books/Author/Publisher Year of

Publication/
Reprint
1 Hal R. Varian, Microeconomic Analysis, W. W. Norton & 2010
Company, 3rd Edition
2 James Bergin, Microeconomic theory: A concise course, 2005
Oxford University Press, 1st Edition
3 Martin J Osborne, An Introduction to Game Theory, Oxford 2003
University Press
4 Nicholas Barr, Economics of the Welfare State, Oxford 2012
th
University Press, 5 Edition
5 Sanjeev Goyal, Connections: An Introduction to the 2009
Economics of Networks, Princeton University Press,
6 Robert D. Cooter and Thomas S. Ulen, Law and Economics, 2011
th
Addison-Wesley, New York, 6 Edition
 INDIAN INSTITUTE OF TECHNOLOGY ROORKEE

NAME OF DEPT. /CENTRE: Humanities and Social Sciences

1. Subject Code: HSN - 508 Course Title: Macroeconomics II

2. Contact Hours: L: 3 T: 1 P: 0

3. Examination Duration (Hrs): Theory: 3 Practical : 0

4. Relative Weightage: CWS : 25 PRS : 0 MTE : 25 ETE : 50 PRE : 0

5. Credits: 4 6. Semester: Spring 7.Subject Area: PCC

8. Pre-requisite: Basic understanding of macroeconomics

9. Objective: To provide knowledge to analyze and develop theories and models

describing macroeconomic dynamics.

10. Details of Course:

S. No. Contents Contact

hours
1 Dynamic General Equilibrium Model: 7
Consumption and savings optimization-households and firms, the
Ramsey model, the Diamond model, Intergenerational issues and
simple neo-classical general equilibrium model
2 Growth in Dynamic General Equilibrium: 9
Growth theories- assumptions, the dynamics of the model and
impacts, Solow model, Speed of Convergence, Role of Human
Capital, Empirical Issues; The golden rule of accumulation;
Endogenous Growth Theory: AK model; Learning by Doing,
Further Extensions
3 Real Business Cycles: 9
Concept of economic fluctuations, Real business cycle approach-
RBC model, household behavior and the special case of the
model, Evaluation and accounting for Business cycle fluctuations,
implications
4 Micro Foundations in Macroeconomics: 8
Lucas critique, Stagger price adjustments - Caplin-Spulber model,
Neo-Keynesian Economics, Coordination failure models, real
non-Walrasian theories
5 Macroeconomics and Open Economy Aspects: 9
Market for foreign exchange, devaluation and depreciation, real
and nominal exchange rate, factors affecting exchange rate,
Mundell-Fleming model, fixed versus floating exchange rate, price
adjustment, role of fiscal and monetary policies under alternative
exchange rate regimes, purchasing power parity concept
 Total 42

11. Suggested Books:

S. No. Name of Books/Author/Publisher Year of

Publication/
Reprint
1 David Romer, Advanced Macroeconomics, McGraw Hill, 4th 2011
Edition
2 Ragbhendra Jha, Macroeconomics for Developing Countries, 2003
Routledge, 2nd Edition
3 Olivier Blanchard, and David R. Johnson , Macroeconomics, 2012
Pearson; 6th Edition
4 Sala-I-Martin Xavier Barro Robert J., Economic Growth, The 2003
MIT Press; 2nd Edition
 INDIAN INSTITUTE OF TECHNOLOGY ROORKEE

NAME OF DEPT. /CENTRE: Humanities and Social Sciences

1. Subject Code: HSN - 509 Course Title: Basic Econometrics

2. Contact Hours: L: 3 T: 1 P: 0

3. Examination Duration (Hrs): Theory : 3 Practical : 0

4. Relative Weightage: CWS : 25 PRS : 0 MTE : 25 ETE : 50 PRE : 0

5. Credits: 4 6. Semester: Spring 7.Subject Area: PCC

8. Pre-requisite: Basic knowledge of Mathematics

9. Objective: To provide knowledge of basic econometric tools and techniques useful for
economic analysis.

10. Details of Course:

S. No. Contents Contact

hours
1 Introduction: 2
Nature and meaning of econometrics, structure of economic data,
approaches to econometric model building
2 Basic Statistical Concepts: 8
Sample and sample space, Random variables and Probability
distributions and their properties; Tests of hypothesis; Estimation
techniques
3 Simple and Multiple Linear Regression Models: 9
Formulation, Estimation and Evaluation-Model with one and k
Independent Variables, Assumptions of CLRM, estimation
methods (OLS and ML methods), marginal effects, point and
interval estimates, Gauss-Markov theorem (BLUE), Test of
hypotheses - individual coefficients, testing model parameters
4 Functional Forms and Model Specification: 7
Regression models with quadratic effects, log-transformation and
non-linear equations; Test of restrictions imposed on the
relationship of more parameters-Chow test, Wald test, LR test,
Ramsay’s RESET, Bera-Jarque test of normality of errors,
Hausman specification test
5 Violations in CLRM: 10
Heteroskedasticity, Multicollinearity and Autocorrelation-
consequences, detection and remedies; specification error,
omitted variables, errors in measurement; Aitken theorem and
GLS method
6 Dummy Variables: 6
 Meaning and Uses of Dummy Variables; Dummy Variable Trap;
Interaction effects; Tests for structural stability: The dummy
variable approach and Chow test for structural stability
Total 42

11. Suggested Books:

S. No. Name of Books/Author/Publisher Year of

Publication/
Reprint
1 Damodar Gujarati, and Dawn Porter, Basic Econometrics, 2011
McGraw Hill, 5th Edition
2 J.M. Wooldridge, Introductory Econometrics: A Modern 2014
Approach, Cengage, 2nd Edition
3 J.H. Stock and M.W. Watson, Introduction to Econometrics, 2010
Addison Wesley, 3rd Edition
4 J.B. Angrist and J.Pischke, Mostly Harmless Econometrics, 2009
Princeton University Press, 1st Edition
5 William H. Greene, Econometric Analysis, Prentice Hall, 7th 2011
Edition.
6 A. Colin Cameron and Pravin K. Trivedi, 2010
Microeconometrics using Stata, Stata Press, 2nd Edition
 INDIAN INSTITUTE OF TECHNOLOGY ROORKEE
NAME OF DEPT. /CENTRE: Humanities and Social Sciences
1. Subject Code: HSN - 510 Course Title: International Economics
2. Contact Hours: L: 3 T: 1 P: 0
3. Examination Duration (Hrs): Theory : 3 Practical : 0
4. Relative Weightage: CWS : 25 PRS : 0 MTE : 25 ETE : 50 PRE : 0
5. Credits: 4 6. Semester: Spring 7.Subject Area: PCC
8. Pre-requisite: Nil
9. Objective: To develop understanding of international trade theories, strategies and
policies in local and global context.

10. Details of Course:

S. No. Contents Contact
hours
1 An Overview of the World Economy 3
Causes of Trade and Gains From Trade, Trade and Growth,
Trade and Environment
2 Theories of International Trade I: 7
The Ricardian Model and Comparative Advantage; Factor
Endowments and Pattern of Trade and Specialization (The
Heckscher-Ohlin Model), Factor Price Equalization
3 Theories of International Trade II: 8
New Approaches to Trade Theory, The Distribution of Income
and Adjustments, Empirical testing of the Inter-Industry trade and
Technological progress in Inter-Industry Trade
4 International Trade Policy: 8
The Partial Equilibrium Analysis of Trade Policy, The General
Equilibrium Analysis of Trade Policy, Instruments of Trade Policy:
Tariffs, Quotas, Most Favoured Nation and Other Policy
Instruments
5 Strategic Trade Policy: 8
Strategic tariff interaction, Dumping and anti-dumping measures,
The theory of Custom Unions, WTO and international trade,
GATT, Trade Creation and Trade Diversion
6 The Balance of Payments and Determinants of Exchange 8
Rates:
Balance of Payments, Determination of Exchange Rate:
Purchasing Power Parity, Demand for and Supply of Foreign
Exchange and other theories; IMF & International monetary
arrangements
Total 42
 11. Suggested Books:

S. No. Name of Books/Author/Publisher Year of

Publication/
Reprint
1 Paul R. Krugman and Maurice Obstfeld, International 2008
th
Economics: Theory and Policy, Pearson Education, 8 Edition
2 Dominick Salvatore, International Economics: Trade and 2012
th
Finance, Wiley, 10 Edition
3 Jagdish N. Bhagwati, Arvind Panagariya and T N. Srinivasan, 1998
Lectures on International Trade, The MIT Press
4 Bo Sodersten and Geoffrey Reed, International Economics, 1994
rd
Palgrave Macmillan, 3 Edition
5 Robert C. Feenstra, Advanced International Trade: Theory 2015
and Evidence, Princeton University Press, 2nd Edition

 
 INDIAN INSTITUTE OF TECHNOLOGY ROORKEE
NAME OF DEPT. /CENTRE: Humanities and Social Sciences

1. Subject Code: HSN - 511 Course Title: Environmental Economics

2. Contact Hours: L: 3 T: 1 P: 0

3. Examination Duration (Hrs.): Theory : 3 Practical : 0

4. Relative Weightage: CWS : 25 PRS : 0 MTE : 25 ETE : 50 PRE: 0

5. Credits: 4 6.Semester: Spring 7. Subject Area: PCC

8. Pre-requisite: Nil

9. Objective: To enrich the understanding of various issues related to the economy

and environment and basic theories of environmental economics with
greater emphasis on their application.

10. Details of Course:

S. Particulars Contact
No. Hours
1. Introduction:
Basic concepts and tools; scope and relevance; difference among
environmental economics, ecological economics and natural resource 5
economics; collective choices: Harden thesis of tragedy of commons,
Prisoners’ dilemma game and Olson concept of collective actions
2. Environment and Development
Poverty, environment, and economic growth; Environmental Kuznets
7
Curve and its empirical evidences; Ecosystem services and
development; Ecological footprints
3. Efficiency, Market and Market Failure:
Concept of efficiency, Pareto optimality, efficiency and competitive
markets, efficiency in exchange of goods and bads, consumer and
8
producer surplus; Market Failure: public and private bads, rivalry and
excludability, externalities, market and optimum provision of public
goods and bads, methods to correct market failure; Pigovian Fees
4. Property Rights:
The rights of polluter and the victim, The Coase theorem and its policy 4
significance
5. Environmental Valuation and Cost Benefit Analysis:
Environmental values, Consumer demand for environmental goods,
10
welfare effects of a price change, Methods of environmental valuation:
revealed and stated preference methods (Hedonic, Household
 Production function, travel cost, and Contingent valuation methods);
Issues in estimation of costs and benefits, pollution cost, benefits from
controlling pollution, efficiency in pollution control, limitations of cost-
benefit analysis
6. Environmental Regulations and Policy:
Rationale for regulations, basic regulatory instruments, issues and
effects of environmental regulations; The Kyoto Protocol, CDM and 8
Carbon Credits ; Environmental Regulatory Framework and
Environmental Policy in India
Total 42

11. Suggested Books:

Sr. Name of Books/Authors Year of

No. Publication/
Reprint
1 Charles D. Kolstad, Environmental Economics, Oxford university
2006
Press, First Indian Edition, New Delhi.
2 Tom Tietenberg, Environmental and Natural Resource Economics,
2006
Addison Wesley Longman, Inc., 7th Edition
3 Steven C. Hackett, Environmental and Natural Resources
Economics: Theory, Policy, and the Sustainable Society, 2010
Routledge, 4th Edition
4 Nick Hanley, Introduction to Environmental Economics, Oxford
2013
University Press, 2nd Edition
5 Daniel W. Bromley, Handbook of Environmental Economics,
1995
Blackwell Publishing, 1st Edition
6 Report of Ministry of Environment and Forests, Government of
Annual
India, New Delhi
 INDIAN INSTITUTE OF TECHNOLOGY ROORKEE

NAME OF DEPT. /CENTRE: Humanities and Social Sciences

1. Subject Code: HSN - 512 Course Title: Advanced Econometrics

2. Contact Hours: L: 3 T: 1 P: 0

3. Examination Duration (Hrs): Theory : 3 Practical : 0

4. Relative Weightage: CWS : 25 PRS : 0 MTE : 25 ETE : 50 PRE : 0

5. Credits: 4 6. Semester: Autumn 7.Subject Area: PCC

8. Pre-requisite: Knowledge of Basic Econometric Methods

9. Objective: To provide knowledge of advanced econometric techniques with statistical

software applications.

10. Details of Course:

S. No. Contents Contact
hours
1 Qualitative and Limited Dependent Models: 7
Linear probability model(LPM)- estimation and limitations, Logit
and Probit models, Censored and truncated regression, MLE
estimation-Tobit model, Applications
2 Simultaneous Equation Systems: 11
Structural and reduced form models, simultaneous equation bias,
identification problem and estimation methods- 2SLS, 3SLS and
LIML; SUR procedure; Problem of Endogeneity- causes and
solution; Instrumental Variables estimation; GMM- estimation and
testing for overidentification
3 Dynamic Econometric Models: 8
Autoregressive and Distributed lag (ADL) relationships-
specification and problems in OLS estimation, Koyck’s and
Almon’s approach to DLM, partial adjustment and adaptive
expectations method, Exogeneity tests, Wu-Hausman test
4 Time Series Analysis: 9
Stationary and non-stationary time series, unit root tests; Concept of
cointegration, two-variable model – Engle-Granger method and
ECM; system of equations – vector autoregression (VAR),
Johansen procedure, VECM, Granger causality
5 Analysis of Panel Data: Balanced vs. unbalanced panel, Fixed 7
effects model, random effects model, fixed vs. random effects- Wu
Hausman test, dynamic panel model
Total 42
 11. Suggested Books:

S.No. Name of Books/Author/Publisher Year of

Publication/
Reprint
1 Greene, W.H., Econometric Analysis, Pearson, 7th Edition 2012
2 Verbeek, M., Guide to Modern Econometrics, Wiley, 3rd 2008
Edition
3 A. Colin Cameron and Pravin K. Trivedi, Microeconometrics 2010
using Stata, Stata Press, 2nd Edition
4 Badi H. Baltagi, Econometric analysis of Panel Data, Wiley, 5th 2013
Edition
5 Walter Enders, Applied Econometric Time Series, Wiley, 3rd 2013
Edition