M.Phil. (Economics)

Sem. I

Paper I (Selected Topics in Micro Economic Theory)

Units

Subjects of Study

I

Demand Analysis –Revision of demand theory by Hicks; Characteristics of goods approach; consumer’s choice involving risk; Indirect utility functions (duality theory); Recent developments in demand analysis (pragmatic approach and linear expenditure systems).

II

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 a 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.

III

General Equilibrium-Production without consumption-two sector model, the relationship between relative commodity and factor prices (Stolper-Samuelson theorem), the relationship between output mix and real factor prices, the effect of changes in factor supply in closed economy (Rybczynski theorem), production and consumption.

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, 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.

Paper II (Selected Topics in Macro-Economic Theory)

I

Comparative Statics in a Closed Economy:
(i) The IS-LM Model: The Interaction of the Real and Monetary Sectors: The Keynesion Version, the Neo-classical Version, Comparative Static Analysis: The Keynesian Model: The Neo-classical Model.
(ii) Relative efficiency of Fiscal and Monetary Policies in an IS-LM Model-The Crowding out Effect.
(iii) Unemployment and the Labour Market, the Neo-classical Labour Market Equilibrium, Keynesian Unemployment.

II

Supply of Money: Different approaches to the supply of money-Redcliffe committee approach, the approach of Gurley and Shaw, R.B.I’s. approach to the money supply.

III

Macro-economic Policy: Rational expectations and the theory of macroeconomic policy (Lucas, Sargent and Wallace), Mundell-Fleming model-Asset markets, expectations and exchange rates; Monetary approach to the balance of payments.

IV

Theory of Inflation-Structuralist theory of inflation; Phillips curve analysis-Short run and long-run Phillips curve; Samuelson and Solow-the natural rate of unemployment hypothesis, Tobin’s modified Phillips curve; Policies to control inflation.

V

Business Cycles-Theories of Schumpeter, Kaldor, Samuelson and Hicks model; Control of business cycles-relative efficacy of monetary and fiscal policies.

VI

New Classical Macroeconomics-The new classical critique of micro-foundations, the new classical approach; Policy implications of new classical approach-empirical evidence.

Sem. II

Paper III (Research Methodology)

I

Meaning and Significance of Social Research. Difficulties in Social Research. Difference between Social Research and Research in Physical Sciences, Scientific Methods.

II

Research design and research process

III

Formulation of a Research Proposal

IV

Data collection: Nature of data (primary & secondary data), Methods of primary data collection: observation, interview techniques and questioner, experimentation and surface and Questionnaire & Interview Methods of Collecting Primary Data.

V

Statistical Inference: Testing of Hypothesis, Concepts of Null and Alternative Hypothesis, Sampling Distribution and Standard Error, Confidence Interval and Level of Significance.

VI

Linear Regression Model – Estimation of parameters and tests of their significance

VII

Data Sources: C.S.O., National Sample Surveys, National Accounts Statistics, Indian Public Finance Statistics, R.B.I. publications, C.M.I.E. databases, Annual Survey of Industries, Census and other government publications, major International Data Sources.

VIII

Interpretation and Report Writing

Paper IV (Selected Issues in the Indian Economy)

I

India’s Economic Reforms.

II

Growth, Sectoral Composition, Poverty and Unemployment.

III

Agricultural Development: Technological change, Price Policy & Land Reforms.

IV

Industrial Development; its different phases.

V

Intellectual Property Rights TRIPs and their implications

VI

Foreign Trade, Trade Policies and Balance of Payments.

VII

Foreign Direct Investment

VIII

Fiscal Policy and Fiscal Reforms

IX

Indian financial system.