M.Sc. (Economics)

Master of Science in Economics

Duration: 2 Years
Level: Post Graduation
Type: Degree
Eligibility: Graduation

M.Sc. Economics or Master of Science in Economics is a postgraduate economics course. It is the social science which analyzes the production, distribution, and consumption of goods and services. The duration of M.Sc. (Economics) is mostly of two academic years but it may vary from institute to institute and may be on part time basis by certain institutes. The Master’s degree course is an important and valuable one that provides many job opportunities to the candidates after having passed it successfully. The syllabus for the course is divided into two semesters.

M.Sc. Economics Eligibility

  • The candidates should complete their B.Sc. degree under any registered University with Economics subject with 50% or above marks.
  • The admission criteria for this course may vary from place to place and in various colleges and Universities it conducts entrance exams plus interview for the admission of the students.

M.Sc. Economics Syllabus

The below mentioned syllabus is provided by the I.I.S. University, Jaipur with effect from 2011-12

Sem. I (Paper: I)

Sr. No.

Subjects of Study

 

I

Demand Analysis: Utility theory – Ordinal approach-Indifference curve (income and substitution effects, Slutsky theorem, compensated demand curve) and their applications; Revealed preference theory; Revision of demand theory by Hicks; Characteristics of goods approach (Lancaster); consumer’s choice involving risk (N-M hypothesis) – Friedman-Savage, Markowitz hypotheses; indirect utility functions (duality theory); Recent developments in demand analysis (pragmatic approach and linear expenditure systems); Inter-temporal consumption; Elementary theory of price formation – demand and supply equilibrium; Cobweb theorem; lagged adjustment in interrelated markets.

II

Theory of Production and Costs Production function – short period and long period; law of variable proportions and returns to scale; Isoquants – Least cost combination of inputs; Returns to factors; Economies of scale; Multi-product firm; Elasticity of substitution; Euler’s theorem; Technical progress and production function; Cobb-Douglas, CES, VES and Translog production functions and their properties; Empirical work on production functions; Traditional and modern theories of costs – Empirical evidence; Derivation of cost functions from production functions; derived demand for factors.

III

Price and Output Determination–Perfect competition and Monopoly]Marginal analysis as an approach to price and output determination: perfect competition–hort  run  and  long  run equilibrium of the firm and industry, price and  output  determination,  supply  curve; Monopoly–short   run   and   long   run equilibrium, price discrimination,  welfare aspects, monopoly control and regulation.

IV

Monopolistic Competition and Oligopoly Models Monopolistic competition – general and Chamberlin approaches to equilibrium, equilibrium of the firm and the group with product differentiation and selling costs, excess capacity under monopolistic and imperfect competition, criticism of monopolistic competition; Oligopoly – Non-collusive (Cournot, Bertrand, Edgeworth, Chamberlin, kinked demand curve and Stackelberg’s solution) and collusive (Cartels and mergers, price leadership and basing point price system) models; Price and output determination under monopsony and bilateral monopoly; Workable competition – Structure, conduct and performance norms – Concept of Contestable Market and global competition Baumol).

V

Alternative Theories of the Firm Critical  evaluation  of  marginal  analysis; Baumol’s   sales   revenue   maximization model; Williamson’s model of managerial discretion; Marris model of managerial enterprise;  Full  cost  pricing  rule;  Bain’s limit pricing theory and its recent developments    including Sylos-Labini’s model;  Behavioural  model  of  the  firm; Game theoretic models.

Sem. I (Paper II)

 

I

National Income Circular flow of income in two, three- and four-sector economy; National income aggregates – measurement and interrelationship; National income and welfare.

 

II

Classical Macro Economics Simple Classical model –equilibrium output and employment; Quantity Theory of Money; Classical theory of interest rate; policy implications of the Classical equilibrium model; Classical model with savings and investment.

 

III

The Keynesian System Equilibrium in the Product Market – The aggregate demand and aggregate supply approach, Savings- Investment approach; Changes in equilibrium income – the Multiplier; The Keynesian theory of interest rate and money demand.

 

IV

Consumption Function Keynes’ psychological law of consumption; short run and long run consumption function; Income consumption relationship – absolute income, relative income, life cycle and permanent Income hypothesis; consumption function puzzle; Kuznets’ consumption function and Kuznets’ findings.

 

V

Investment Function Components of investment; marginal efficiency of capital and investment; accelerator and investment behaviour.

Sem. I (Paper III)

 

I

Terminology, Concepts and tools Constants, variables, parameters,     intercepts Coefficients-Functions-inverse, general and specific  functions-Equations-Applications-Demand and supply functions-Cost and revenue functions- Consumption function-IS & LM functions- Multivariable functions-Market equilibrium.

II

Differential Calculus Rules of differentiation-slopes-linear and non linear functions-partial derivatives-higher order derivatives-Young’s Theorem-Constrained & unconstrained optimization- Lagrangian Multiplier- Interpretation-Use  of  derivatives  in  economics  – Maximization,  minimization, elasticities - Utility function – production function – revenue, cost and profit functions (simple problems).

III

Integration Concept-simple rules of integration-application to Consumer’s surplus & producer’s surplus-Costs & revenues.

IV

Matrices Fundamentals of linear algebra-matrix, solving equations-      Crammer’s rule-Uses-Input-output analysis.

 V

Linear  Programming Basic  Concepts, formulation  of  an  LP  problem-feasible,  basic  and  optimal solution graphic  and simplex  methods formulation  of  the  dual  of  a programme  and  its  interpretation Applications  of LP technique.

Sem. I (Paper IV)

 

I

Economic development  and its Determinants:-
•  Economic Growth & Economic Development
•  Characteristics of Developing Economies
•  Role of Economic & Non Economic Factors in Economic Development
•  Human Development: PQLI, Human Development Index, Gender Related Development Index, Gender Empowerment Measure & Human Poverty Index

II

Demographic Features & Infrastructure:-
•  Population Growth
•  Occupational Structure
•  Rural-Urban Migration
•  National Population policy (2000)
•  Energy
•  Social Infrastructure-Education and Health

III

Important Issues:-
•  Poverty
•  Inequality
•  Unemployment
•  Regional Imbalances
•  Parallel Economy

IV

Foreign Trade:-
•  Composition and Direction
•  Balance of Payments
•  Foreign Capital and Aid
•  Export Import policy
•  Foreign Trade policy

V

National Income, Planning  and Economic Reforms:-
•  National Income : Growth & Structure
•  Planning In India : Objectives, Strategy, Failures & Achievements
•  Tenth and Eleventh Five Year Plans
•  Economic Reforms

Sem. I (Paper V)

 

I

Introduction:-
•  Nature and scope of Public finance
•  Role of Government Changing Perspective
•  Role of the Government in a Capitalist, Mixed and Socialist Economy
•  Fiscal functions of the government : Allocation, Distribution & Stabilization
•  Government as an agent for Economic Planning  and Development
•  Private and Public sector : Cooperation or Competition
•  Private goods, Social goods & Merit goods

II

Public choice and rationale for public policy:-
• Market failure: Imperfections, Decreasing costs, externalities, Uncertainty
• Problems for allocating resources: Problems of preference revelation, voting systems, Arrows impossibility theorem, An economic theory of democracy, political-eco-bureaucracy, Rent seeking and directly Unproductive profit seeking (DUP) activities.
•  Allocation of resources: Provision of public goods, Voluntary exchange models, Impossibility of decentralized provision of public goods( Contributions of Samuelson and Musgrave)
•  Demand revealing schemes far public goods (Tie bout model), Theory of clubbed goods

III

Taxation I:-
•  Taxation: Meaning, canons, classification
•  Tax ratio, Buoyancy, Elasticity
•  Optimal Taxation, Excess Burden of Taxes, Tax Neutrality

 

•  Effects of Taxation, Trade off between Equity and Efficiency
•  Taxable Capacity : Meaning, Types, Measurement & Determinants

IV

Taxation II:-
• Double Taxation
• Incidence of Taxation
1.   Meaning & Distinction between Impact & Incidence
2.   Types & Theories of Tax Incidence
3.   Shifting of tax under different Cost conditions
4.   Shifting of tax under different market conditions (Perfect Competition & Monopoly)
5.   Forward & backward shifting
•  Principles of taxation: The Benefit approach, Ability to pay approach
•  Trends of Taxation in India

V

Public Expenditure:-
•  Public expenditure: Meaning, nature & classification
•  Wagners Law of Increasing State Activities
•  Wiseman Peacock Hypothesis
•  Pure Theory of Public Expenditure
•  Effects of Public expenditure
•  Trends of Public expenditure in India

Sem. I (Paper VI)

 

Objective: To create awareness regarding current trends, issues and research as related to various aspects of economics. Students will be assigned a topic in the beginning of the semester. They will be required to prepare and submit a project report on the same. A panel of external examiners will evaluate the same.

Sem. II (Paper I)

Unit 

Subjects of Study

 

I

Distribution Neo-classical approach – Marginal productivity theory; Product exhaustion theorem; Elasticity of technical substitution, technical progress and factor shares; Theory of distribution in imperfect product and factor markets; Macro theories of distribution – Ricardian, Marxian, Kalecki and Kaldor’s.

II

Welfare Economics Pigovian welfare economics; Pareto optimal conditions; Value judgement; Social welfare function; Compensation principle; Inability to obtain optimum welfare – Imperfections, market failure, decreasing costs, uncertainty and non-existent and incomplete markets; Theory of Second Best – Arrow’s impossibility theorem; Rawl’s theory of justice, equity- efficiency trade off.

III

General Equilibrium Partial and general equilibrium, Walrasian excess demand and input-output approaches to general equilibrium, existence, stability and uniqueness of equilibrium and general equilibrium, coalitions and monopolies; Production without consumption – one sector model, homogeneous functions, income distribution; Production without consumption – two sector model, relationship between relative commodity and factor prices (Stolper- Samuelson theorem), relationship between output mix and real factor prices, effect of changes in factor supply in closed economy (Rybczynski theorem), production and consumption – Introduction of contributions of Arrow and Debreu to General equilibrium analysis.

IV

Economics of Uncertainty Individual  behaviour  towards  risk,  expected utility  and  certainty  equivalence  approaches, risk  and  risk  aversion  –  sensitivity  analysis, gambling  and   insurance,   the  economics  of insurance, cost and risk, risk pooling and risk spreading, mean-variance analysis and portfolio selection,      optimal      consumption      under uncertainty.

V

Competitive  Firm under Uncertainty Factor  demand  under  price  uncertainty,  the economics  of  search  –  different  models,  the efficient  market  hypothesis, stochastic models of inventory demand; Market with incomplete information,  search  and  transaction  costs, the economics of information.

Sem. II (Paper II)

 

I

Neo Classical and Keynesian Synthesis The IS LM model; factors that affect the equilibrium income and interest rate; relative effectiveness of monetary and fiscal policies.

II

Macroeconomics in an open economy Mundell - Flemming model, imperfect capital mobility, perfect capital mobility.

III

Inflation  and unemployment Inflation –Unemployment trade off - The Phillips Curve; The natural rate of unemployment hypothesis and Adaptive expectation hypothesis; Relationship between short run and long run Phillips’ Curve; Sacrifice Ratio and Policy of disinflation.

IV

Business Cycles Theories of Kaldor, Samuelson and Hicks; Goodwin’s model; Control of business cycles –relative efficacy of monetary and fiscal policies.

V

New Classical Macroeconomics The Keynesian Theory and the New Classical (Lucas) critique; Rational Expectations Model and its policy implications; A critical evaluation of Rational Expectations Model.

Sem. II (Paper III)

 

I

Univariate Analysis Measures of central tendency, dispersion - standard deviation, coefficient of variation, Lorenz curve, Gini concentration ratio – Skewness (simple problems).

II

Regression Analysis Correlation, regression, simple, multiple, linear (simple problems) – OLS-assumptions-violation of assumptions - heteroscedasticity, autocorrelation and multicollinearity (concepts only). Interpretation of Co-efficient -Introduction to non-linear regression.

III

Probability and distributions
Elementary probability theory, concepts, binomial, Poisson and normal distribution.

IV

Sampling Distributions Sampling distribution, standard error-testing of hypothesis:
χ2, F- ANOVA, testing correlation and regression coefficients.

V

Index numbers and Time Series Uses, selection of number of items, base year price relatives-Fisher’s ideal index-Factor reversal test-Time reversal test- Chain index-Base shifting –conversion of current price data into constant price data- price index numbers in India – Components of time series - Moving averages-Straight line trend- Seasonal Index.

Sem. II (Paper IV)

 

I

Agricultural Sector I:-
•  Progress in Agriculture under the Five year Plans
•  Land Reforms
•  Green Revolution
•  New Green Revolution
•  Irrigation & Other Agricultural Inputs

II

Agricultural Sector II:-
•  Rural Credit in India
•  Agricultural Marketing & Warehousing
•  Agricultural Prices
•  Food Security in India

III

Industrial Sector I:-
•  Growth & Pattern of Industrialization
•  Industrial Policy 1956, 1977, 1980 & 1991
•  Public Sector Enterprises & their Performance
•  Small Scale Enterprises

IV

Industrial Sector II:-
•  Disinvestment of Public Enterprises
•  Privatization
•  Industrial Sickness in India
•  Labour Relations & Social Security

V    

Prices, Money & Banking:-
•  Analysis of Price Behaviour In India
•  Commercial Banking In India
•  Review of Monetary Policy of RBI
•  Money & Capital Markets in India
•  Working of SEBI in India                                                  

Sem. II (Paper V)

 

I

Public Debt:-
•  Classical View, Sources, Classification & Effects of Public Debt
•  Burden of Public Debt on Future Generation
•  Redemption of Public Debt
•  Public Debt Management: objectives & Principles
•  Trends of Public Debt in India

 

II

Fiscal Policy:-
•  Fiscal Policy: Meaning, Objectives & Instruments
•  Fiscal Policy for  stabilization: Automatic Stabilizers & Discretionary Stabilizers
•  Interdependence of Fiscal & Monetary policies
•  Fiscal Policy in a developing economy
•  Balanced budget multiplier

 

III

Deficit Financing:-
•  Deficit Financing: Objectives, Role, Effects & Limits
•  The budgetary process in India: Preparation, legislation and execution
•  Budgetary Deficits
•  Central Government deficits since 1990-91
•  Fiscal Crisis & Fiscal Sector Reforms in India

 

IV

Investment Evaluation:-
•  Criteria for Public Investment
•  Project Evaluation
•  Cost benefit Analysis: Meaning, Criteria & Limitations
•  Planning & Programme Budgeting system(PPBS)
•  Zero Base Budgeting, performance budgeting, outcome budgeting, gender budgeting

 

V

Federal Finance:-
•  Essential Features,  & Principles  of Federal Finance
•  The Rationale of Fiscal Federalism
•  Vertical & Horizontal Imbalance
•  Finance Commission & Planning Commission
•  Centre State Financial Relations in India

Sem. II (Paper VI)

 1

Objective:
To create awareness regarding current trends, issues and research as related to various aspects of economics. Students will be assigned a topic in the beginning of the semester. They will be required to prepare and submit a project report on the same. A panel of external examiners will evaluate the same.


M.Sc. Economics Colleges       

M.Sc. Economics Course Suitability

  • Students those who interested in Economics and have skills of problem-solving - extracting relevant information, drawing conclusions and making logical recommendations whilst considering the wider social and political influences are most suitable for this course.
  • Those who have analytical skills such as analysing research methods, methodologies, data, conclusions and recommendations, critically evaluating government policy and assessing performance against home and global economies are also good match for it.
  • Applicants having numeracy skills of handling complex data presented in a numerical form, using this data to draw conclusions and make recommendations as well as applying mathematical and statistical analysis methods to the data also have ability to pursue this course.

How is M.Sc. Economics Course Beneficial?

  • This degree course enables the candidates to go for various banking, investment and insurance jobs that cover a wide range of employers including investment and commercial banks, building societies, broking firms, independent financial advisers, insurance and reinsurance companies.
  • Candidates have also the option of going for higher degree programmes in respective subjects aiming to become teacher / lecturer both at school and college levels respectively.

M.Sc. Economics Job Types

  • Director, Health Economics
  • Market Access Manager
  • Quant Developer / Researcher - Investment Management
  • Financial Analyst
  • Lecturer and Professor
  • Business Development Manager
  • Economist 
  • Assistant Portfolio Manager - Systematic Trading
  • Senior Quantitative Analyst

Advance Courses M.Sc. Economics

After completing M.Sc. (Economics) you can become:
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