SCOPE

Bangalore

In collaboration with

Karnataka State Open University

Mysore, Karnataka 570006

Course Structure & Syllabus For MASTER OF ARTS (ECONOMICS) (M.A.ECONOMICS)

1

COURSE STRUCTURE
SECOND YEAR: (FINAL)
Code
MEC21 MEC22 MEC23 MEC24 MEC25

Course Title
Macro Economics Analysis Indian Economics Policy International Trade and Finance Economics of Demography Welfare Economics

Credits
7 7 7 7 7

SYLLABUS (FINAL YEAR)

MEC21: Macro Economic Analysis
BLOCK 1: UNIT 1: Nature and Significance of Macro Economics 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 1.11 1.12 Objectives Introduction Definition of Macro economics Macro economics goals Interdependence of Micro-Macro analysis Macro economic variables Scope of macro economics Importance of macro economics Limitations of macro economics Let us sum up Books for self study Questions for self-study

UNIT 2: National Income and Its Accounting 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 Objectives Introduction Definition of National Income Different Concepts of National Income Measurement of National Income Difficulties in the Measurement of National Income Importance of National Income Let us sum up Questions for self-study Books for self-study

BLOCK 2: UNIT 3: Classical Theory of Employment 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 Objectives Introduction Concept of full employment Classical theory of employment Assumption of the theory Criticisms of the theory Let us sum up Books for self-study Questions for self-study

UNIT 4: Says Law of Market 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 Objectives Introduction Says Law of Market Assumptions of Says Law Implications of Says Law Criticisms of Says Law Let us sum up Books for self-study Questions for self-study

BLOCK 3: UNIT 5: Effective Demand and Employment Determination 5.1 5.2 5.3 5.4 Objectives Introduction Meaning of effective demand Determinants of effective demand 5.4.1 Aggregate demand function 5.4.2 Aggregate supply function 5.5 5.6 5.7 5.8 Determination of effective demand Importance of effective demand Let us sum up Books for self study

5.9

Questions for self study

UNIT 6: Consumption Function 6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 6.9 6.10 6.11 6.12 Objectives Introduction Meaning of consumption function Keynes Psychological Law of Consumption Assumptions Implications Consumption income relationship Factors determining consumption function Measure to raise consumption function Let us sum up Books for self study Questions for self study

UNIT 7: Multiplier 7.1 7.2 7.3 7.4 7.5 7.6 7.7 7.8 7.9 7.10 7.11 Objectives Introduction Definition of Multiplier Marginal propensity to consume and multiplier Conditions for the operations of multiplier Leakages of multiplier Importance of multiplier Criticism of multiplier Let us sum up Books for self study Questions for self Study

UNIT 8: Investment function 8.1 8.2 8.3 8.4 Objectives Introduction Meaning of investment Types of investment 8.4.1 Gross and net investment 8.4.2 Replacement investment

8.4.3 Induced investment 8.4.4 Autonomous investment 8.5 Marginal efficiency of capital 8.5.1 Factors determining marginal efficiency of capital 8.5.2 Criticism of marginal efficiency of capital 8.6 8.7 8.8 8.9 8.10 Rate of interest Measures the stimulate investment Let us sum up Books for self study Questions for self study

BLOCK 4: UNIT 9: Supply of Money 9.1 9.2 9.3 9.4 9.5 9.6 9.7 9.8 9.9 9.10 9.11 Objectives Introduction Meaning of supply of money Components of money supply Approaches to measures of money supply Changes in the money supply Velocity of circulation of money Credit money and credit instruments Let us sum up Books for self study Questions for self study

UNIT 10: Demand for Money 10.1 10.2 10.3 Objectives Introduction Classical approach for demand for money-Fishers Equation of Exchange 10.3.1 Assumption of Fishers Equation 10.3.2 Criticisms of quantity theory of money 10.4 10.5 10.6 10.7 Cambridge Theory Difference between Fishers approach and Cambridge approach Superiority of cash balance approach Criticism of cash balance approach

10.8 10.9

Let us sum up Books for self study

10.10 Questions for self study UNIT 11: Keynes Theory of Demand for Money 11.1 11.2 11.3 Objectives Introduction Keynes Theory of Demand for Money 11.3.1 Transactive Motive 11.3.2 Precautionary Motive 11.3.3 Speculative Motive 11.4 11.5 11.6 11.7 Saving Investment Theory of Money Superiority of Saving Investment Theory Let us sum up Books for self study

UNIT 12: Post Keynesian Theories of Demand for Money 12.1 12.2 12.3 12.4 12.5 12.6 12.7 12.8 Objectives Introduction Boumols Inventory Approach Superiority of Boumols Approach Tobins Portfolio Approach Let us sum up Books for self study Questions for self study

UNIT 13: Milton Friedmans Wealth Theory Of Demand For Money 13.1 13.2 13.3 13.4 13.5 13.6 13.7 13.8 13.9 Objectives Introduction Milton Friedmans Theory Nature of Money Demand for money function Importance of Friedmans Theory Criticisms of Friedmans Theory Friedman and Keynes A Comparison Let us sum up

13.10 Books for self study 13.11 Questions for self study UNIT 14: Financial Intermediaries 14.1 14.2 14.3 14.4 14.5 14.6 Objectives Introduction Banks Central Banking Reserve Bank of India Non-Bank Financial Intermediaries (NBFls) 14.6.1 Function of NBFls 14.6.2 NBFls and commercial banks 14.6.3 Importance of NBFls 14.7 14.8 14.9 Let us sum up Books for self study Questions for self study

UNIT 15: Control of Money Supply 15.1 15.2 15.3 15.4 15.5 15.6 15.7 15.8 15.9 Objectives Introduction The concept of money supply Measures of money supply Determinants of money supply Control of money supply Let us sum up Books for self study Questions for self study

BLOCK 5: UNIT 16: Neo Classical Theory of Interest 16.0 16.1 16.2 Objectives Introduction Neo-classical Theory; - Interest and the Forces determining the Rate of Interest 16.2.1 Demand for Loanable Funds 16.2.2 Supply of Lonaable Funds

16.3 16.4 16.5 16.6 16.7 16.8 16.9

Determination of the Rate of Interest Diagrammatic Illustration Improvement over the Classical Theory Let us sum up Key words Books for Reference Questions for self study

UNIT 17: Keynesian Liquidity Preference Theory of Interest 17.0 17.1 17.2 Objectives Introduction Factor Determining the Rate of Interest 17.2.1 The Transactionary Motive and Precautionary Motive. 17.2.2 Speculative Motive 17.2.3 The Supply of Money 17.3 17.4 17.5 17.6 17.7 17.8 17.9 Determination of Rate of Interest Liquidity Trap Critical Evaluation Let us sum up Key words Books for Reference Questions for self study

UNIT 18: Modern Theory Of Interest 18.0 18.1 18.2 18.3 18.4 18.5 18.6 18.7 18.8 Objectives Introduction Hick Hansen synthesis Derivation of IS Curve Derivation of LM Curve Determination of the Equilibrium Rate of Interest Effects of Shift in the IS and LM Schedules Evaluation of Hicks-Hansen Synthesis Relative Effectiveness of Monetary and Fiscal Policies. 18.8.1 18.8.2 Impact of Fiscal Policy Reduction in Taxes

18.8.3 18.9

Impact of Monetary Policy

Elasticity of LM Cure and Relative Effectiveness of Monetary and Fical Policies 18.9.1 18.9.2 Kenesian Range of the LM Curve Classical Range of the LM Curve

18.10 Effectiveness of Fiscal Policy 18.10.1 In the Intermediate Range 18.10.2 In the Classical Range 18.11 Effectiveness of Monetary Policy 18.12 IS-LM Model and Wage Price Flexibility 18.13 Let us sum up 18.14 Key words 18.15 Books for Reference 18.16 Questions for self study BLOCK 6: UNIT 19: Business Cycle concept, Phases and Features 19.0 19.1 19.2 19.3 Objectives Introduction The concept of Business Cycle Phases of Business Cycle 19.3.1 Contraction and Depression 19.3.2 Revival 19.3.3 Expansion 19.3.4 Recession 19.4 Features of Business Cycle 19.4.1 Synchronic in Nature 19.4.2 Periodity 19.4.3 International in character 19.5 19.6 19.7 19.8 19.9 General pattern Characteristic Analysed by the American Economic Association Let us sum up Key words Books for Reference

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19.10 Questions for self study UNIT 20: Theories of Business Cycle Schumpeter and Kaldors Theories 20.0 20.1 20.2 Objectives Introduction Schumpeters Theory of Business Cycle 20.2.1 Invention and Innovation 20.2.2 Schumpeterian Model 20.2.3 Schumpeterian Hypothesis 20.2.4 Schumpeterian Hypothesis 20.2.5 Critical Evaluation 20.3 Kaldor Theory of Business Cycle 20.3.1 Kaldors Model 20.3.2 Saving and Investment and the level of Income 20.3.3 Saving and Investment and the stock of Capital 20.3.4 Business cycle and the Liner Saving and Investment Functions 20.3.5 Business cycle and the Non-Liner Saving and Investment Functions 20.4 20.5 20.6 20.7 Let us sum up Key words Books for Reference Questions for Self Study

UNIT 21: Samuelsons Theory of Business Cycle [Multiplier Accelerator Model] 21.0 21.1 21.2 21.3 21.4 21.5 21.6 21.7 21.8 21.9 Objectives Introduction Multiplier Accelerator interaction Samuelsons Model Five Types of cyclical Fluctuations Critical Appraisal of the model Let us sum up Key words Books for Reference Questions for Self study

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UNIT 22: Hicksian Theory of Business Cycle 22.0 22.1 22.2 22.3 22.4 Objectives Introduction Ingredients of Hincksian theory Assumptions of Hicksian theory Special Features of Hicksian theory 22.4.1 Ceiling and the Floor 22.4.2 Rising trend of the Cycle 22.5 Hicksian model 22.5.1 Upswing of the Business cycle 22.5.2 Downswing of the Business cycle 22.6 22.7 22.8 22.9 Critical Evaluation Let us sum up Key words Books for Reference

22.10 Questions for self study UNIT 23: Monetary Theories of Bunnies Cycle-Hayak and Hfawtreys Theories. 23.0 23.1 23.2 Objectives Introduction Monetary over invest Theory of Hayak 23.2.1 The Basis of Over investment Theory 23.2.2 Hayaks Theory in operation\ 23.2.3 The course of Recession 23.2.4 The course of Depression 23.2.5 Initiation for Revocery 23.2.6 Critical Evaluation 23.3 Howtreys Monetary Theory of Business cycle 23.3.1 Hawtreys Aruguments 23.3.2 Upswing and downswing of the cycle 23.3.3 Downswing of the Cycle 23.3.4 Depression and Credit Dead lock 23.3.5 Critical Evaluation 23.4 Let us sum up

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23.5 23.6 23.7

Key words Books for Reference Questions for self study.

UNIT 24A: Inflation And Deflation 24A.0 24A.1 24A.2 24A.3 Objectives Introduction The concept of Inflation Types of Inflation 24A.3.1 24A.3.2 24A.4 Three Strains of Inflation Anticipated and Unanticipated Inflation

The concept of Deflation 24A.4.1 Deflationary Gap

24A.5 24A.6 24A.7 24A.8 24A.9

Effect of Inflation and Deflation Let us sum up Key words Books for Reference Questions for self study

UNIT 25: Government Role Stabilizing Business Cycles 25.0 25.1 25.2 25.3 Objectives Introduction Nature and Objectives of Macroeconomic Policy Policy Instruments: Monetary Policy 25.3.1 Instruments of Monetary Policy Quantitative Instruments 25.3.2 Qualitative Instruments 25.4 25.5 25.6 25.7 25.8 25.9 Monetary Policy and Economic Growth Effectiveness of Monetary Policy in Controlling Recession and Inflation Time Lags in Policy Action. Policy Instrument Fiscal Policy Role of Fiscal Policy Automatic Fiscal Stabilizer

25.10 Discretionary Fiscal Policy 25.11 Effectiveness of Fiscal Policy in Controlling Inflation and Recession 25.12 Public Debt as a Device Stabilization

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25.13 Demand Side Fiscal Devices 25.14 Supply Side Fiscal Policy 25.15 Fiscal Policy and Economic Growth 25.16 Interaction of Monetary and Fiscal Devices 25.17 To Sum Up 25.18 Key words 25.19 Reference Books 25.20 Questions for self study BLOCK 7: UNIT 26: Macro Economics in an Open Economy Mundell Fleming Model 26.0 26.1 26.2 Objectives Introduction The Mundell Fleming Model Components of the Model. 26.2.1 The Model Keeping e constant. 26.2.2 The Model Keeping r constant. 26.3 Open economy Under the Floating Exchange Rate 26.3.1 Impact of Physical Policy 26.3.2 Impact of Monetary Policy 26.3.3 Impact of Trade Policy 26.4 Open Economy under Fixed Exchange Rate 26.4.1 Working of Fixed Exchange Rate System 26.4.2 Impact of Physical Policy 26.4.3 Impact of Monetary Policy 26.4.4 Impact of Trade Policy 26.5 26.6 26.7 26.8 26.9 Summary of the Model Should Exchange Rate be Floating or Fixed The European Monetary Union To sum up Key words

26.10 Books for Reference 26.11 Questions for Self Study

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UNIT 27: Exchange Rate 27.0 27.1 27.2 27.3 27.4 27.5 27.6 27.7 27.8 27.9 Objectives Introduction Major Exchange Rate Systems Flexible Exchange Rate System Fixed Exchange Rate System Humes Adjustment Mechanism The four-pronged Mechanism Adjustment with Fixed Exchange Rates Managed Exchange Rate Systems The Search for stable Exchange Rates 27.9.1 The Crisis of the European Monetary System 27.9.2 Speculative Attack 27.10 Towards a common Currency 27.11 To sum up 27.12 Key words 27.13 Books for Reference 27.14 Questions for Self Study UNIT 28: Monetary Approach To The Balance Of Payments 28.0 28.1 28.2 28.3 28.4 28.5 28.6 28.7 28.8 28.9 Objectives Introduction The Monetary Approach The Monetary Approach under Fixed Exchange Rates The Monetary Approach and Inflation in the World Exchange Rates The Monetary Approach under the Flexible Exchange rates To sum up Key words Books for Reference Questions for Self Study

UNIT 29: The New Classical Approach 29.0 29.1 29.2 Objectives Introduction Emergence of the New Classical Approach

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29.3

Rational Expectations meaning, formation and postulates 29.3.1 Postulates of Rational Expectations 29.3.2 Rational Expectations versus Adaptive Expectations

29.4

The Market Clearing Approach: The Lucas Supply Curve. 29.4.1 Neo-classical Labour Market Model (in Nutshell) 29.4.2 How expected price is determined 29.4.3 Policy Irrelevance

29.5 29.6 29.7 29.8 29.9

An Evaluation of the Rational Expectations Equilibrium Approach The New Classical Approach and the illusory Philips curve Real Business Cycles To sum up Key words

29.10 Books for Reference 29.11 Questions for Self Study UNIT 30: Policy Implications of New Classical Approach 30.0 30.1 30.2 Objectives Introduction Policy Implications of the New Classical Approach: policy Ineffectiveness 30.2.1 The Desirability of Fixed Rules 30.3 30.4 30.5 30.6 30.7 30.8 30.9 Monetarist Rule and The Lucas Rules State of debate A new synthesis To sum up Key words Books for Reference Questions for Self Study

MEC22: Indian Economics Analysis

BLOCK 1: Non Welfare Issues in Welfare Economics UNIT 1: Economic Development and its Determination 1.0 1.1 1.2 1.3 Objectives Introduction Concept of Economic Development Factors that determine Economic development 16

1.4 1.5

Natural resources Economic Factors 1.5.1 Capital Formation 1.5.2 Capital output Ration 1.5.3 Marketable Surplus of Agriculture

1.6

Non Economic Factors 1.6.1 Growth of Population 1.6.2 Technical-know-how and general Education 1.6.3 Political Freedom 1.6.4 Social Organisation 1.6.5 Corruption 1.6.6 Desire to Develop

1.7 1.8 1.9 1.10

Let us sum up For self study Books Questions

UNIT 2: Different Approaches to Economic Development and Its Measurement in India 2.0 2.1 2.2 2.3 2.4 2.5 2.6 2.7 Objectives Introduction Increase in Gross Domestic Product Rise in per capita product Equitable Distribution of Income & Wealth Development Indicators Income Index Non Income Index 2.7.1 Physical Quality of Life Index (P.Q.L.I) 2.7.2 Basic needs Approach 2.7.3 Human Development Index 2.7.4 Gender Related development Index. 2.8. 2.9 2.10 2.11 Let us sum up For self study Books Questions 17

UNIT 3: Features of Indian Economy 3.0 3.1 3.2 Objectives Introduction India as Under Development Economy 3.2.1 Low Per capita income 3.2.2 Low Quality of Life 3.2.3 Large Unutilsed Natural Resources 3.2.4 Predominance of Agriculture 3.2.5 Heavy population pressure 3.2.6 Prevalence of Chronic Unemployment 3.2.7 Capital Deficiency and low level technology 3.2.8 Poor quality of Human Resources 3.2.9 Poor Economic Organisation 3.3 3.4 3.5 3.6 3.7 3.8 3.9 India as dualistic Economy India as Mixed Economy India as Planned Economy Let us sum up For self study Books Questions

BLOCK 2: India Economy Policy UNIT 4: Natural Resources and Ecological Balance 4.0 4.1 4.2 4.3 4.4 4.5 Objectives Introduction Meaning of Natural Resources Types of Natural Resources Importance of Natural Resources Different Natural Resources 4.5.1 Land Resources 4.5.2 Forest Resources 4.5.3 Water Resources 4.5.4 Marine Resources 4.5.5 Mineral Resources

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4.6 4.7 4.8 4.9 4.10 4.11 4.12 4.13 4.14

Ecological Balance Ecological Imbalance Types of Environmental Pollution Environment Degradataion and causes of Environmental Pollution Measures of Environmental Protection Let us sum up For self study Books Questions

UNIT 5: Population and Economic Development in India 5.0 5.1 5.2 5.3 Objectives Introduction Size and growth of population in India. Causes for Rapid growth of Population 5.3.1 Causes for Decline in death Rate 5.3.2 Causes for High birth rate 5.4 5.5 5.6 5.7 Let us sum up For self study Books Questions

UNIT 6: Problems of Population in India 6.0 6.1 6.2 Objectives Introduction Difference problems of population growth and Economic Development 6.2.1 Population and growth of National and Per capita income 6.2.2 Population and Food supply. 6.2.3 Population and the Burden of unproductive consumers 6.2.4 Population and Unemployment 6.2.5 Population and the burden of Education, Medical care and Hosting. 6.2.6 Population and Capital Formation. 6.3 6.4 6.5 Population Policy Population policy in India Family planning under Five year plans in India.

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6.6 6.7 6.8 6.9 6.10 6.11 6.12 6.13

1976 National population policy. Family Planning programme after 1980. National population policy of 2000. Appraisal of population policy. Coercive methods The approach of Family Planning Let us sum up For self study I. Books II. Questions

UNIT 7: Human Resources Development in India 7.0 7.1 7.2 7.3 7.4 7.5 7.6 7.7 7.8 7.9 Objectives Introduction The concept Significance of Human Resources Social Infrastructure Education Public Health Manpower Planning Let us sum up For self study I. Books II. Questions UNIT 8: Infrastructure and Economic Development 8.0 8.1 8.2 8.3 8.4 8.5 8.6 8.7 Objectives Introduction Role Infrastructure in Economic Development Energy Commerce Electricity Transport Let us sum up

20

8.8

For self study I Books

II Questions BLOCK 3: UNIT 9: Planning Strategy and Its Achievement 9.0 9.1 9.2 9.3 9.4 9.5 9.6 9.7 9.8 9.9 Objectives Introduction The Concept of Planning Features of Planning in India Objectives of Planning in India Indias five year Plans Development strategy in Indian Planning Achievement and Failures of Planning Let us sum up For self study I Books

II Questions UNIT 10: Decentralised Planning 10.0 10.1 10.2 10.3 10.4 10.5 10.6 10.7 10.8 10.9 Objectives Introduction Features of decentralized Planning Characteristics of Decentralised planning Development of Grass roots organizations Panchayath Raj System Panchayath Raj in India Non- Government Organizations Assure Groups Let us sum up

10.10 For self study I Books

II Questions

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BLOCK 4: Agricultural Sector UNIT 11: Problems of Agricultural Sector 11.0 11.1 11.2 11.3 11.4 11.5 11.6 11.7 11.8 11.9 Objectives Introduction Features of Indian Agricultural Cropping pattern Problems of Indian Agricultural Productivity Land Reforms Technological Changes Agricultural Labour Let us sum up For self study I Books

II Questions UNIT 12: Agricultural Finance and Agricultural Marketing 12.0 12.1 12.2 12.3 Objectives Introduction Needs for Finance Sources of agricultural credit 12.3.1 Institutional Sources 12.3.2 Private Sources 12.4 12.5 12.6 12.7 12.8 12.9 Causes of Rural Indebtedness Consequences of Rural Indebtedness Remedies to the problem of Rural Indebtedness Agricultural marketing (Meaning & Importance) Essential of Good marketing Defects of Agricultural Marketing

12.10 Effects of Defective Marketing 12.11 Government measures for improvement 12.12 Let us sum up 12.13 For self study I Books

II Questions

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UNIT 13: Agricultural Policy for Sustained Agricultural Development 13.0 13.1 13.2 13.3 13.4 13.5 13.6 Objectives Introduction Concept of sustained agricultural development Pricing inputs Pricing output Agricultural price policy of the Government Food Security and public distribution policy 13.6.1 Public Distribution system 13.7 13.8 13.9 Investment trends in agricultural National Agricultural Policy Let us sum up

13.10 For self study I Books

II Questions BLOCK 5: UNIT 14: Industrial Sector in India 14.0 14.1 14.2 14.3 14.4 14.5 14.6 14.7 14.8 14.9 Objectives Introduction Industrialization concept Industrialization and economic Development Industries during British Period Industries under various plans First plan 1950 51 to 10th plan 2002 07 A Review of Industrial growth in India Trends and pattern of industrial development in India Major problems of industrial development in India Major problems of industrial development

14.10 Measures to solve the problems 14.11 Summary 14.12 Key Concepts 14.13 References 14.14 Check your progress

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UNIT 15: Industrial Policy in India 15.0 15.1 15.2 15.3 15.4 15.5 15.6 15.7 15.8 15.9 Objectives Introduction Concept of Industrial policy Need for industrial policy Evolution of Industrial policy during British period Industrial policy after Independence Industrial Policy Resolution 1948 Industries (Development and Regulation Act) 1951 Industries (Development and Regulation Act) 1956 Industries Policy Statements of 1973, 1977 and 1980

15.10 New Industrial Policy, 1991 15.10.1 Industrial licensing 15.10.2 Foreign Investment 15.10.3 Foreign Technology Agreement 15.10.4 Public Sector Policy 15.10.5 MRTP Act 15.11 An appraisal of new Industrial Policy 15.12 Industrial Policy under pre and post Liberalisation A comparative out look 15.13 New trends in Industrial Policy 15.14 Summary 15.15 Key Concepts 15.16 References 15.17 Check your progress UNIT 16: The Public Sector Enterprises in India 16.0 16.1 16.2 16.3 16.4 16.5 16.6 16.7 Objectives Introduction Concept of public enterprise Role and objectives of PSEs Orgin and growth of PSEs in India Organisational Forms of PSEs Performance of PSEs Problem of PSEs

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16.8 16.9

Remedial Measures Indian Public Sector under globalization period

16.10 Major Public Sector reform since 90s. 16.11 Reforms in corporative governance in PSEs 16.12 Summary 16.13 Key Concepts 16.14 References 16.15 Check your progress UNIT 17: Small Scale Industries in India 17.0 17.1 17.2 17.3 17.4 17.5 17.6 17.7 17.8 17.9 Objectives Introduction Small Scale Industry concept and its features Importance of SSIs Growth and performance of SSIs in India Small Scale industry policy An Assessment of the new policy Problems and prospects of SSIs Recommendations of Abid Hussain Committee Liberalisation and small Scale Sector

17.10 New Challenging facing SSI 17.11 WTO and SSIs 17.12 Summary 17.13 Key Concepts 17.14 References 17.15 Check your progress UNIT 18: Privatization and Disinvestment in India 18.0 18.1 18.2 18.3 18.4 18.5 18.6 Objectives Introduction Privatisation concept and objectives Need for privatization Methods of Privatization Major issues of Privatization Privatization in India

25

18.7 18.8 18.9

Evils of Privatization Disinvestment concept and objectives Methods of Disinvestment

18.10 Progress of Disinvestment 18.11 Strategis of Disinvestment 18.12 Critical issues in the Disinvestment 18.13 A critique of Disinvestment policy 18.14 MRTP Act 170 MRTP Amendments since 1990 18.15 Indian Private Sector under Liberalization 18.16 Summary 18.17 Key Concepts 18.18 References 18.19 Check your progress BLOCK 6: UNIT 19: Supply of Money in India 19.0 19.1 19.2 19.3 Objectives of the unit Introduction Indian currency system Money supply in India 19.3.1 Money supply: Four measures 19.3.2 Money supply measures and liquidity 19.3.3 Narrow money and broad money 19.3.4 Relative status of different money measures 19.4 Factors influencing money supply in India 19.4.1 Net bank credit to the Government 19.4.2 Bank credit to the commercial sector 19.4.3 Foreign exchange assets 19.4.4 Government's currency liabilities to the public 19.4.5 Non-monetary liabilities of the banking sector 19.5 Money supply in India: Trends and implications. 19.5.1 Rising money supply 19.5.2 Desirable and undesirable expansion 19.5.3 Trends during the I990s

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19.5.4 Important recent developments 19.6 19.7 19.8 19.9 Money supply and price behaviour in India Causes for price rise in India Impact of money supply on prices Money-price nexus

19.10 Anti-inflationary policy of the Government 19.11 Chakravarthy committee recommendations 19.12 Let us sum up 19.13 Key concepts 19.14 Self-assessment questions 19.15 Further Readings UNIT 20: Money Market and Capital Markets in India 20.0 20.1 20.2 20.3 20.4 20.5 Objectives Introduction Money Market: Meaning and Importance Nature of the Indian Money Market Trading in short tenn instruments Composition of the Indian Money Market 20.5.1 Unorganised sector of the Money Market 20.5.2 Organised sector of the Money Market 20.6 20.7 20.8 20.9 Characteristics of the Indian Money Market The Reform of the Indian Money Market Suggestions for Improvement of the Indian Money Market Indian Capital Market

20.10 Structure of the Capital Market 20.11 Role of Capital Market in India's Industrial Growth 20.12 Growth of Capital Market in India 20.12.1 Government Securities Market 20.12.2 The Corporate or Industrial Securities Market 20.12.3 Stock Exchange Market 20.12.4 National Stock Exchange of India 20.13 Factors contributing to the Growth of Capital Market in India 20.14 Problems of Indian Capital Market

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20.15 Capital Market Reforms 20.16 SEBI and Capital Market Development 20.17 Let us Sum Up 20.18 Key Concepts 20.19 Self-assessment Questions 20.20 Further Readings UNIT 21: Banking In India 21.0 21.1 21.2 Objectives Introduction Banking Developments in India 21.2.1 Nationalisation of banks 21.2.2 Progress in branch expansion 21.2.3 Progress in deposit mobilization 21.2.4 Mass banking 21.2.5 Priority to neglected sectors 21.2.6 Popularization of social banking 21.2.7 Diversification of functions 21.2.8 Public sector banks 21.2.9 Establishment of Regional Rural Banks 21.2.10 Establishment of foreign banks 21.3 21.4 21.5 Indian Banking: An evaluation. Banking Sector Reforms Recommendations of the I Narasirnham committee (1991) 21.5.1 Recommendations relating to functional autonomy and competition 21.5.2 Profitability related recommendations 21.5.3 Recommendations relating to market related interest 21.5.4 Recommendations on capital adequacy and bad debts 21.5.5 Recommendations on structure of banking system 21.5.6 Financial institutions, capital markets and new institutions. 21.6 21.7 21.8 21.9 Recommendations of the II Narasirnham Committee (1998) Implications of Banking Sector Reforms Monetary Policy of the Reserve Bank o fIndia Meaning and objectives

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21.10 Instruments of Monetary Policy 21.11 Monetary policy: A performance evaluation 21.11.1 Achievements 21.11.2 Failures 21.12 Let us Sum Up 21.13 Key concepts 21.14 Self-assessment questions 21.15 Further Readings. UNIT 22: Fiscal Policy I 22.0 22.1 22.2 22.3 22.4 Objectives Introduction Public expenditure in India Growth of Public expenditure in India Composition of public expenditure in India 22.4.1 Development expenditure 22.4.2 Non-development expenditure 22.5 22.6 22.7 22.8 22.9 Public expenditure management Expenditure Reforms Commission Tax and Tax Reforms in India Tax Revenue of the Central Government Tax Revenue of State Government

22.10 Taxation in India: Trends 22.11 Tax reforms since 1991 22.11.1 Recommendations of the Tax Reforms Committee 22.11.2 Major Recommendations of the Advisory Group on Tax Policy and Tax Administration for the Tenth Five Year Plan. 22.12 Deficit financing in India 22.13 Meaning 22.14 Rationale for Deficit Financing 22.15 Deficit Financing Under Various Plans 22.16 Evil consequences of Deficit Financing 22.17 Ways and Means of Advances 22.17.1 Features of WMA

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22.17.2 Implications of WMA 22.18 Public Debt in India 22.19 Debt obligations of the Central Government 22.20 Debt obligations of State Government 22.21 Role of Debt Finance in India 22.22 Public Debt: Problems and Issues 22.23 Liquidation of Public Debt 22.24 Let us sum up 22.25 Key Concepts 22.26 Self-assessment questions 22.27 Further Readings UNIT 23: Fiscal Policy - II 23.0 23.1 23.2 23.3 Objectives Introduction Objectives of Fiscal Policy in India Fiscal Policy and Growth Performance of the Economy. 23.3.1 Fiscal Policy and Resource Mobilisation 23.3.2 Fiscal Policy and Allocational Efficiency 23.3.3 Fiscal Policy and Fiscal Equilibrium 23.3.4 Fiscal Policy and Tax Structure 23.3.5 Fiscal Policy and Promoting Socially Desirable Activities. 23.3.6 Fiscal Policy and Market Oriented Development 23.3.7 Fiscal Policy and Equity 23.3.8 Fiscal Policy and Balanced Regional Development. 23.4 23.5 23.6 23.7 23.8 23.9 The Fiscal Imbalance and Crisis Fiscal Correction Remedial Measures Features of the New Fiscal Policy The New Fiscal Approach and Responsibility Fiscal Responsibility and Management Bill 23.9.1 Objectives of FRMB 23.10 Appraisal of the New Fiscal Policy 23.10.1 Positive Aspects of the Policy

30

23.10.2 Limitations of the Policy 23.11 Let us sum up 23.12 Key concepts 23.13 Self-assessment questions 23.14 Further Readings BLOCK 7: UNIT 24: Foreign Trade of India Structures Features Trends 24.0 24.1 24.2 24.3 24.4 24.5 24.6 24.7 24.8 24.9 Objectives Introduction Value of trade Indias trade Indias trade in relation to GDP and world trade Unit value index and volume index Trends in export value Explanation of export value Trends in import value Explanation of import trends

24.10 Structure of exports 24.11 Structure of imports 24.12 Direction of Indias trade 24.13 Features of Indias Trade 24.14 Summing up 24.15 Suggested Reading 24.16 Questions UNIT 25: Balance of Payment 25.0 25.1 25.2 25.3 Objectives Introduction Balance of payments-its meaning Trends in balance of payment 25.3.1 Trends in balance of trade 25.3.2 Trends in invisible and others 25.4 Causes for the deficit

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25.5

Capital Account: Financing the deficit 25.5.1 Financing deficit in the pre-reform period 25.5.2 Financing deficit in the post-reform period

25.6 25.7 25.8 25.9

Emerging issues in the balance of payments management Summing up Table 1, 2, 3 and 4 Suggested Reading

25.10 Questions UNIT 26: EXPORT AND IMPORT POLITICS 26.0 26.1 26.2 26.3 26.4 26.5 26.6 26.7 26.8 26.9 Objectives Introduction Foreign trade policy and economic development in India Import policy in the pre-reform period Brief evaluation of import Export policy in the pre-reform period Brief evaluation of export policy Import Export policy in the post reform period some general marks Main features of exim policy (Export Import policy) in the post-reform period Exim policy 2002-07

26.10 Brief evaluation of Post reform trade policy 26.11 Import Substitution and Export Promotion alternative trade strategies 26.11.1 Import substitution and export promotion concepts 26.11.2 Indias trade strategy 26.12 Concluding remarks on trade strategy 26.13 Foreign Exchange Management Act 26.13.1 A Brief Evaluation of FEMA 26.14 Summing up 26.15 Suggested Reading 26.16 Questions UNIT 27: Foreign Exchange Rate 27.0 27.1 Objectives Introduction

32

27.2 27.3 27.4 27.5 27.6 27.7 27.8 27.9

Exchange Rate what does it really mean? Exchange rate policy An Overview Exchange rate management during the pre-reform period Exchange rate Management its significance in the post reform period Exchange rate management major developments Brief evaluation Some unsettled issues Summing up

27.10 Suggested reading 27.11 Questions UNIT 28: Foreign Capital and MNCs 28.0 28.1 28.2 28.3 28.4 28.5 28.6 28.7 28.8 28.9 Objectives Introduction Role of Foreign Capital Indian Governments policy towards Foreign Capital Foreign Investment and Foreign technology some indicators Brief Evaluation Multinational Companies their features and growth MNCs and India Problems posed by Foreign capital and MNCs Summing up

28.10 Suggested reading 28.11 Questions UNIT 29: Rationale of Internal and External Reforms 29.0 29.1 29.2 29.3 Objectives Introduction Internal and External Reforms A conceptual framework Rationale for economic reforms 29.3.1 Roots of the crisis Macroeconomic imbalance 29.3.2 Weaknesses / Limitations of the heavy industry strategy 29.4 Components of economic reforms 29.4.1 Internal reforms An outline 29.4.2 External Reforms A brief

33

29.5 29.6 29.7 29.8 29.9

Implications of economic reforms Impact of economic reforms Summing up Suggested Reading Questions

UNIT 30: Globalization of Indian Economy 30.0 30.1 30.2 Objectives Introduction Globalization Conceptual clarity 30.2.1 Globalization Process in India 30.3 30.4 30.5 30.6 30.7 30.8 30.9 Globalization and Agriculture Globalization and Industry Globalization and foreign trade Globalization and Governance Globalization and Competition Globalization and safety nets Summing up

30.10 Suggested Reading 30.11 Questions

MEC23: International Trade and Finance

BLOCK 1: UNIT 1: Need for International Trade 1.0 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 Aims and Objectives Introduction Need or basis of International trade Internal trade or International trade Specialization and trade or Advantages of trade Effects on efficiency or disadvantages of trade Trade and economic development Summary Key words Check your progress Questions for Self Institutional exercises 34

1.11

Suggested Books

UNIT 2: Classical Theory of Int 2.0 2.1 2.2 Aims and Objectives Introduction Absolute advantages 2.2.1 2.3 Assumptions

Comparative cost theory of International trade 2.3.1 2.3.2 2.3.3 2.3.4 2.3.5 Introduction Comparative cost difference Assumptions Comparative cost advantage illustration Criticism

2.4

Opportunity cost 2.4.1 2.4.2 Introduction Opportunity cost and substitution curve

2.5 2.6 2.7 2.8 2.9

Empirical testing of the theory / Limitations Key words Summing Up Questions for Self Institutional exercises Suggested Books

UNIT 3: Classical Theory of International Trade Factor Price Equalization, Samuleson Theory 3.0 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 Aims and Objectives Introduction Factor Price Equalization Hypothesis meaning Assumptions A diagrammatic representation Critical evaluation of the theorem Summary Key words Suggested Books Model examination questions

35

UNIT 4: Hecksher Ohlin Theory of International Trade 4.0 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11 Aims and Objectives Introduction Assumptions Factor abundance Factor Price factor intensity reversal A diagrammatic representation of H- O theory Leontief method of testing Leontief paradox An evaluation / Limitations Summing up Key words Suggested Books Questions for self instruction exercises

UNIT 5: Kravis and Linders Theory of Trade 5.0 5.1 5.2 5.3 5.4 5.5 5.6 5.7 Aims and Objectives Introduction The availability approach Kravis Linders representative demand hypothesis overlapping demand An evaluation Key words Suggested Books Questions for self instruction exercises

UNIT 6: Rynczynski Theory 6.0 6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 Aims and Objectives Introduction Assumptions Rybczynski theory Policy implications of immiserising growth Causes of emergence and measurement of intra-industry trade and its impact on developing countries An evaluation Key words Suggested Books

36

6.9

Questions for self instruction exercises

BLOCK 2: Measurement of Gains UNIT 7: Gains from Trade I 7.0 7.1 7.2 Aims and Objectives Introduction Gains from Trade Meaning 7.2.1 Basis for Trade 7.2.2 Types of Gains from Trade 7.3 Factors determining gains from Trade 7.3.1 Difficulties in getting gains from International Trade 7.4 7.5 7.6 7.7 7.8 7.9 7.10 7.11 Gains from export and import Specialization and gains from the trade Conditions for gains from Trade Gains and Economic from Trade An Evaluation Suggested Books Questions for self-instruction exercises Key Words

UNIT 8: Gains from Trade II 8.0 8.1 8.2 8.3 8.4 8.5 8.6 8.7 8.8 8.9 Aims and Objectives Introduction Gains from trade in case of Big and small Countries Gains in the case of free Trade Vs no Trade Gains in the case of restricted trade and no Trade Disadvantage gain from trade An Evaluation Key Words Suggested Books Questions for self Instruction Exercise

UNIT 9: Terms of Trade 9.0 9.1 9.2 Aims and Objectives Introduction Meaning of Terms of Trade 37

9.3

Types of Terms of Trade 9.3.1 Commodity terms of trade (CTOT) 9.3.2 Factoral terms of Trade (FTOT) 9.3.3 Income terms of Trade (ITOF) 9.3.4 Current Account Terms of Trade

9.4

Factors affecting Terms of Trade 9.4.1 Reciprocal Demand 9.4.2 Changes in Factor Endowments 9.4.3 Changes in Technology 9.4.4 Changes in Growth 9.4.5 Tariffs

9.5 9.6 9.7 9.8 9.9 9.10 9.11 9.12

Different concepts of Terms of Trade Factors on whom terms of Trade depend Terms of Trade and Developing Economics Terms of Trade Estimation An Evaluation Keywords Suggested Books Questions for self instruction exercises

UNIT 10: Tariffs 10.0 10.1 10.2 10.3 10.4 10.5 106 10.7 10.8 Aims and Objectives Introduction Meaning of tariff Types of tariffs Effects of tariffs under partial and general equilibrium An evaluation Key words Suggested Books Questions for self-instruction exercises

UNIT 11: Optimum Tariffs and Welfare 11.0 11.1 11.2 Aims and Objective Introduction Optimum tariffs

38

11.3 11.4 11.5 11.6 11.7 11.8 11.9

Effects of tariff on income distribution Stapler and Samuelson theorem Tariff Welfare small nation model Tariff welfare-large nation model Tariff effects An evaluation Key words

11.10 Suggested Books 11.11 Questions for self-instruction exercises UNIT 12: Quotas 12.0 12.1 12.2 12.3 12.4 12.5 12.6 12.7 12.8 Aims and Objectives Meaning of Quotas Introduction Different types of Quotas Import and Export Quotas and their effects An Evaluation Key words Suggested Books Questions for self-instruction Exercises

UNIT 13: Tariffs Vs Quotas 13.0 13.1 13.2 13.3 13.4 13.5 13.6 13.7 13.8 13.9 Aims and Objectives Introduction The equivalence of Tariffs and Quotas Visible and invisible effects Tariff Vs Quotas Orderly Marketing agreements An evaluation Key words Suggested Books Questions for self-instruction exercises

UNIT 14: Non-Tariff Barriers 14.0 14.1 Aims and objectives Introduction

39

14.2 14.3 14.4 14.5 14.6 14.7

Subsidies Types of subsidies Dumping International price discrimination-Excess capacities Anit-dumping regulations Other non-tariff barriers 14.7.1 14.7.2 Government procurement policies Social regulations

14.8 14.9

Sea-transport-freight restrictions An evaluation

14.10 Key words 14.11 Suggested Books 14.12 Questions for self instruction exercises BLOCK 3: International Trade and Finance UNIT 15: Free Trade Policy 15.0 15.1 15.2 15.3 15.4 15.5 15.6 15.7 15.8 15.9 Aims and Objectives Introduction Concept of Free Trade Arguments in favour of free trade Case Against Free Trade Limitations An Evaluation Key words Questions for Self Institutional exercises Suggested Books

UNIT 16: TRADE PROTECTION POLICY 16.0 16.1 16.2 16.3 16.4 16.5 16.6 Aims and Objectives Introduction Meaning of Protection Arguments for and Against Protection Limitations An Evaluation Key words

40

16.7 16.8

Questions for Self Institutional exercises Suggested Books

BLOCK 4: UNIT 17: Meaning and Components of Balance of Payments 17.0 17.1 17.2 17.3 17.4 17.5 17.6 17.7 17.8 17.9 Objectives Introduction Balance of payments Meaning and Different concepts Components of Balance of Payments Current Account BOP and Capital Account BOP Statistical Discrepancy-Errors and Omissions Current Account Deficits Net Foreign Investment and Current Account Balance of Payments Impact of Capital Flows on Current Account Equilibrium and Disequilibrium of Balance of Payments

17.10 Summary 17.11 Keywords 17.12 Questions for self study 17.13 Books for study UNIT 18: Foreign Exchange Market and Foreign Exchange Rate 18.0 18.1 18.2 18.3 18.4 18.5 18.6 18.7 18.8 18.9 Objectives Introduction Meaning of Foreign Exchange Market Types of Foreign Exchange Market-Spot and Forward Markets Types of Exchange Rate Exchange Rate Determinants Trends In Foreign Exchange Summary Keywords Questions for Self Study

UNIT 19: Theories of Foreign Exchange Rate 19.0 19.1 19.2 Objectives Introduction Mint Parity Theory 41

19.3 19.4 19.5 19.6 19.7 19.8

Purchasing Power Parity Theory Balance of Payments Theory Summary Key words Questions for Self Study Books for Study

BLOCK 5: UNIT 20: Balance of Payments Adjustment 20.0 20.1 20.2 20.3 20.4 20.5 20.6 20.7 20.8 20.9 Objectives Introduction Balance of Payments Adjustment under Gold Standard Adjustment under Flexible and Fixed Exchange Rates Adjustment through Capital Market Adjustments through Income Changes Stimulation of Exports Summary Key Words Questions for Self Study

20.10 Books for Study UNIT 21: Exchange Rate Adjustment and Balance of Payments Mechanism 21.0 21.1 21.2 21.3 21.4 21.5 21.6 21.7 21.8 21.9 Objectives Introduction Effects of Exchange Rate on Production Costs and Prices Elasticity Approach The Marshall Lerner Mechanism Income Absorption Approach The Monetary Approach Direct Controls Devaluation Overvaluation Balance of Payments in Developing Countries

21.10 Summary 21.11 Keywords 21.12 Questions for self study

42

21.13 Books for Study UNIT 22: Balance Of Payments Policy: Internal and External Equilibrium 22.0 22.1 22.2 22.3 22.4 22.5 Objectives Introduction Expenditure Reducing Policy Expenditure Switching Policy Swan Model-Policy Measures Mundelein Model 22.5.1 Introduction 22.5.2 Internal and External Balance with Monetary and Fiscal Policies 22.5.3 Fixed and Flexible Exchange Rates and Perfect Capital Mobility 22.5.3 A Critical Review 22.6 22.7 22.8 22.9 Summary Keywords Questions for self study Books for self study

UNIT 23: Foreign Trade Multiplier 23.0 23.1 23.2 Objectives Introduction Foreign Trade Multiplier 23.2.1 Conceptual interpretation 23.2.2 Assumptions 23.2.2 Derivation 23.3 23.4 23.5 23.6 23.7 23.8 23.9 Foreign Repercussions Implications of the Foreign Trade Multiplier. Foreign Trade Multiplier and National Income Criticisms Fixed and Flexible Exchange Rate Practices in Developing Countries Summary Keywords

23.10 Questions for self study 23.11 Books for study

43

BLOCK 6: UNIT 24: Economic cooperation 24.0 24.1 24.2 24.3 24.4 Objectives Introduction Concepts of cooperation Benefits of Cooperation Types of cooperation / Integration 24.4.1 Free trade Areas 24.4.2 Common Market 24.4.3 Customs Unions 24.4.4 Economic Unions 24.5 Theory of Customs Unions 24.5.1 The Evolution and Its Variants 24.5.2 The Static Effects 24.5.3 The Dynamic Effects 24.6 24.7 24.8 24.9 Summary Keywords Questions for self study Books for Reference

UNIT 25: European Union (UE) and North American Free Trade Agreement (NAFTA) 25.0 25.1 25.2 25.3 25.4 25.5 25.6 25.7 25.8 Objectives Introduction European Common Market European Economic Union (EEU) North American Free Trade Agreement Summary Key Words Questions for self Study Books for reference

UNIT 26: Economic Cooperation among Developing Countries 26.0 26.1 Objectives Introduction

44

26.2 26.3 26.4 26.5 26.6 26.7 26.8 26.9

South Asian Agreement on Regional cooperation (SAARC) SAPTA ASEAN UNCTAD Problems in Developing Customs Unions in the Asian Region Summary Key words Questions for self study

26.10 Books for Reference UNIT 27: Multilateralism and WTO 27.0 27.1 27.2 27.3 27.4 27.5 27.6 27.7 27.8 Objectives Introduction World Trade Organization-Meaning and objectives Overall performance of the world Trade Organization (WTO) Regional Integration Vs. Multistaterelism Summary Keywords Key words Questions for self-study Books for Reference

UNIT 28: Foreign Trade and Multination 28.0 28.1 28.2 28.3 28.4 28.5 28.6 28.7 28.8 Objectives Introduction Defining MNCs or TNCs Role of Multinationals in Developing countries Merits and Demerits of MNCs Summary Keywords Questions for Self-Study Books for Reference

45

BLOCK 7: International Monetary System UNIT 29: World Bank 29.0 29.1 29.2 29.3 29.4 29.5 29.6 29.7 29.8 29.9 Objectives Introduction Objectives and Functions of the World Bank Resources World Bank And LDCs Limitations of the World Bank Operations Summary Key Words Questions for Self-Study Books for Reference

UNIT 30: International Monetary Found 30.0 30.1 30.2 30.3 30.4 30.5 30.6 30.7 30.8 30.9 Objectives Introduction Objectives and Functions Organizational structure and Resources SDRs/PAPER GOLD International Liquidity IMF and LDCs Summary Key Words Questions for Self-Study

30.10 Books for Reference

MEC24: Economics of Demography

BLOCK 1 & 2: UNIT 1: Nature and Scope of Economics of Demography 1.0 1.1 1.2 1.3 Objectives Introduction Definition of Demography Nature of Demography

46

1.4

Scope of Demography 1.4.1 Micro-Demography 1.4.2 Macro-Demography

1.5 1.6 1.7 1.8 1.9

Demography and other Disciplines Importance of Demography Let us sum up Key words Reference Books

UNIT 2: Theory of Demographic Transition 2.0 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 2.11 Objectives Introduction Meaning of Demographic Transition Different views on Demographic Transition Theory of Demographic Transition Notestein and Cowgills Theories of Demographic Transition Demographic Transition in the course of Economic Development. Zero Population Growth Critical Review of Demographic Transition Let us sum up Key words Reference Books

UNIT 3: Role of Population in Economic development 3.0 3.1 3.2 3.3 3.4 3.5 3.6 Objectives Introduction Role of Population as an accelerating factor Role of population as a retarding factor Let us sum up Key words Reference Books

UNIT 4: Malthus pessimistic theory of population 4.0 4.1 4.2 Objectives Introduction Malthus pessimistic theory

47

4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11 4.12

Assumption Central theme of the theory Check on population Importance of Malthusian theory Applications of Malthus theory Criticism Neo-Malthusian theory Let us sum up Key words Reference Books

UNIT 5: Optimistic Theories of Population Marxian Theory of Surplus Population 5.0 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 Objectives Introduction Marx and Malthusian views on Population Explanation of Marxs Theory His definition about development Karl Marxs theory of surplus Population Marxs socialist views about population Critical evaluation of Marxs Theory Let us sum up Key words Reference Books

UNIT 6: Population and Keynesian Thesis 6.0 6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 6.9 Objectives Introduction Keynes views and Malthusian Theory Keynes and Declining population The Neo Keynesian views Advantages of population growth Criticisms Let us sum up Key words Reference Books

48

UNIT 7: Canons Optimum Theory of Population 7.0 7.1 7.2 7.3 7.4 7.5 7.6 7.7 7.8 7.9 Objectives Introduction Definition of optimum population Assumptions Explanations of the Theory Superiority of optimum theory Criticisms Let us sum up Key words Reference Books

UNIT 8: Population and Economic Development of Less developed countries 8.0 8.1 8.2 8.3 8.4 8.5 8.6 8.7 Objectives Introduction Concept of Less- development and features of less-developed countries Effects of Population on economic Development in Less Developed Countries Control of Population Let us sum up Key words Reference Books

BLOCK 3 & 4: UNIT 9: Population Trends in the 20th Century Organisation 9.0 9.1 9.2 9.3 Objectives Introduction Population trends Population explosions Structure of Population in developed and less developed countries 9.3.1 Trends in Sex Composition. 9.3.2 Pattern of age composition 9.4 9.5 9.6 Let us sum up Key words Reference Books

49

UNIT 10: Demographic Effects of Population Structure 10.0 10.1 10.2 Objectives Introduction Effects of Sex and age structure 10.2.1 Sex- Structure and Population 10.2.2 Age Structure and Population 10.2.3 Ageing 10.3 10.4 10.5 Problems due to ageing Key words Reference Books

UNIT 11: Theories of Fertility 11.0 11.1 11.2 11.3 11.4 11.5 11.6 11.7 11.8 Objectives Introduction Meaning and importance of the study of Fertility Importance of the study of fertility Trends in Fertility Factors affecting Fertility Let us Sum Up Keywords Reference Books Check Your Progress UNIT 12: Biological Theories and Hypothesis of Fertility 12.0 12.1 12.2 Objectives Introduction Biological Theories of Fertility 12.2.1 The Density 12.2.2 The Diet Principle 12.2.3 Ginis Theory 12.2.4 Biological Theory of Spencer 12.2.5 Castros Theory of Protein Consumption 12.6 12.7 12.8 Let us Sum up Key words Reference Books

50

UNIT 13: Socio Cultural and Economic Theory 13.0 13.1 13.2 Objectives Introduction Social Theory of fertility 13.2.1 Social Capillarity Theory 13.2.2 Theory of Diffusion or Cultural Lag 13.2.3 Theory of Change and Response 13.3 Economic Theories of fertility 13.3.1 Libensteing Theory 13.3.2 Beckers Theory 13.3.3 Easterlins Frame work 13.3.4 Caldwells Wealth Flow Theory 13.4 13.5 13.6 13.7 13.8 Socio- Economic Theories Differential Fertility Let us Sum up Key words Reference Books

UNIT 14: The Stage Theory of Population 14.0 14.1 14.2 14.3 14.4 14.5 14.6 Objectives Introduction The Stage Theory of population Critique Let us Sum up Key words Reference Books

UNIT 15: Marriage 15.0 15.1 15.2 15.3 15.4 15.5 15.6 Objectives Introduction Concept of Marriage Analysis of Martial Status Trends in Age and Marriage Differential in Mean Age at Marriage Let us Sum up

51

15.7 15.8

Key words Reference Books

UNIT 16: Measurement of Fertility 16.0 16.1 16.2 16.3 16.4 16.5 16.6 Objectives Introduction Measurement of fertility Proximate determinants of fertility Let us Sum up Key words Reference Books

UNIT 17: Mortality 17.0 17.1 17.2 17.3 17.4 17.5 17.6 17.7 17.8 17.9 Objectives Introduction Meaning and Importance of the study of Mortality Measures of Mortality Trends in Mortality Mortality Differentials Factors of Morality Decline Let us Sum up Key words Reference Books

UNIT 18: Life Table 18.0 18.1 18.2 Objectives Introduction Construction and Uses of Life Table 18.2.1 Construction of Life Table 18.2.2 Uses of Life Table 18.3 18.4 Concept of Stable Population Methods of Population Projection 18.4.1 Algebraic Techniques 18.4.2 Component Projection Technique 18.5 18.6 Let us Sum up Key words

52

18.7

Reference Books

BLOCK 5 & 6: UNIT 19: Migration & Population Change 19.0 19.1 19.2 19.3 19.4 19.5 19.6 19.7 19.8 Objectives Introduction Kinds of migration Courses of migration Migration effects on population Factors affecting migration Obstacles in migration Key words Reference.

UNIT 20: Theories of Migration 20.0 20.1 20.2 20.3 20.4 20.5 20.6 20.7 20.8 20.9 Objectives Theory related to internal migration Urbanization United Nations Classification of urbanization Processor of Urbanization Measures of degree of urbanization Determinants of urbanization Determinants of Urbanization Distribution of rural urban population Let us Sum Up

20.10 Key words 20.11 Reference Books UNIT 21: Methods of Measuring, Migration, Lewis & Todaro Models Of Migration 21.0 21.1 21.2 21.3 21.4 21.5 Objectives Methods of Measuring internal migration Place of birth method Duration of residence method Place of last Residence Method Indirect measures for estimating Internal migration

53

21.6 21.7 21.8 21.9

Sources of finding international migration Lewis model of unlimited supply of labour Todaro model of migration Let us Sum Up

21.10 Key words 21.11 Reference Books UNIT 22: Population Changes & Environment Protection 22.0 22.1 22.2 22.3 22.4 22.5 22.6 22.7 22.8 22.9 Objectives Introduction Population Environment Analysis Demographic Background Population impacts on the environment Environmental impacts on population Critical Issues Types of population Population, development and Environment Let us Sum Up

22.10 Key words 22.11 Reference Books UNIT 23: Population & Education Problems Education Policy 23.0 23.1 23.2 23.3 23.4 23.5 23.6 23.7 23.8 23.9 Objectives Introduction Returns to education Impact to family size on the amount of education children receive Trends in the total and school age population. Trends in school enrollment and educational attainment Problems involved in education and policy aspect Let us Sum Up Key words Reference Books

UNIT 24: Man Power Economics and Man Power Supply 24.0 24.1 Objectives Introduction

54

24.2 24.3 24.4 24.5 24.6 24.7 24.8 24.9

Human Capital Cost-benefit Analysis Applied to education Manpower planning Manpower shortages Manpower surpluses Strategy for manpower planning Let us Sum Up Key words

24.10 Reference Books UNIT 25: Man Power Economics and Man Power Demand 25.0 25.1 25.2 25.3 25.4 25.5 25.6 25.7 25.8 25.9 Objectives Introduction The concept of Manpower Requirement Validity of Manpower forecasting Methods of Manpower forecasting Employers Estimate of future manpower requirement Method of International comparison Method of Manpower Population Ratios. Method of Extrapolation of fixed input output ratios The links between Manpower, Levels of output and education

25.10 The analysis of Manpower Demand 25.11 Let us Sum Up 25.12 Key words 25.13 Reference Books BLOCK 7: UNIT 26: Fertility and Mortality in India 26.0 26.1 26.2 26.3 26.4 Objectives Introduction Fertility Concept Historical Background Trends in fertility and its Measures 26.4.1 Birth Rates Birth rates in Rural urban areas, And education and fertility

55

26.4.2 Age Specific Birthrates 26.4.3 Differential fertility in India 26.5 26.6 26.7 26.8 26.9 Reasons for high fertility in India Measures to control high fertility Mortality Meaning Trends in and measures of Mortality in India Infant Mortality

26.10 Expectation of Life at Birth 26.11 Measures to control high mortality 26.12 Sterility in India 26.13 Population Policy in India 26.14 Let us Sum Up 26.15 Key words UNIT 27: Different Aspects of Demography In India 27.0 27.1 27.2 27.3 27.4 27.5 27.6 27.7 27.8 27.9 Objectives Introduction Different Aspects of Demography in India Density Sex Radio Religion wise population Literacy Let us Sum Up Key words Reference Books

UNIT 28: Foods and Nutrition Position in India 28.0 28.1 28.2 28.3 28.4 28.5 28.6 28.7 Objectives Introduction Importance of Food and Nutrition Position of food and Nutrition in India and their problems Factors that affect Food and Nutrition Public Distribution System and Food Security (PDS) PDS and Poverty Defects of PDS

56

28.8 28.9

Revised System Public Distribution Let us Sum Up

28.10 Key words 28.11 Reference Books 28.12 Check your progress UNIT 29: Study of Census in India 29.0 29.1 29.2 29.3 29.4 Objectives Introduction - Census Prior to 1971 Census of 1971 Census of 1981 Census of 1991 29.4.1 Defects of census Operation In India 29.4.2 Suggestions for Improvement 29.5 Census of 2001 29.5.1 Feature of Census of 2001 29.5.2 Results of Census of 2001 29.6 29.7 29.8 Let us Sum Up Key words Reference Books

UNIT 30: Trends in World Population 30.0 30.1 30.2 30.3 30.4 30.5 Objectives Introduction - Census Prior to 1971 Growth of World Population (100-1940) Recent trends in world population Causes for Rapid growth of world population Different Aspects of world population 30.5.1 Growth rate of world population 30.5.2 Crude Birth and Death Rates 30.5.3 Infant Mortality 30.5.4 Expectation of Life at Birth 30.5.5 Rural and Urban population 30.5.6 Density of population 30.5.7 Working Population

57

30.6 30.7 30.8 30.9

Distribution of world population Reasons for unequal distribution of world population Implication of uneven distribution of world population Different views of Global population 30.9.1 Recommendations of International Conference 30.9.2 US International Population Policy 30.9.3 Antalya Statement of on world population problem 30.9.4 AAASs Resolutions

30.10 Let us Sum Up 30.11 Key words 30.12 Reference Books

MEC25: Welfare Economics

BLOCK 1: UNIT 1: Nature and Scope of Economics I 1.0 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 1.11 1.12 Objectives Introduction Some definitions of welfare economics Nature of welfare Economics Subject matter Positive economics and welfare economics Defining Individual, general and social welfare General Welfare and social welfare Individual Welfare and social welfare Value Judgment in welfare Economics Let us Sum Up Some Questions Books.

UNIT 2: Nature and Scope of Economics II 2.0 2.1 2.2 2.3 2.4 Objectives Introduction Concept and evolution of welfare state Different functions of welfare state Allocation function 58

2.5 2.6 2.7 2.8 2.9 2.10 2.11 2.12 2.13 2.14 2.15

Distribution function Stabilization function Less Developed Economy State function Social Security schemes Social overheads Public Sector Enterprises Local Government and public participation Disadvantage of Public Sector enterprises Let us Sum Up Some Questions Some Books.

BLOCK 2: UNIT 3: Pre Pertain Welfare Economics (Classical of welfare Economics) 3.0 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 Objectives Introduction Classical Theory Welfare and classical value theory Economic Problem Classical Welfare Ideas Classical theory of Trade and Welfare Marginal Revolution and welfare Economics Two main lines of development Let us Sum Up Books Questions

UNIT 4: Bent Amite Approach to Aggregate Welfare 4.0 4.1 4.2 4.3 4.4 4.5 4.6 Objectives Introduction Happiness of Society Aim of the Government Limitations Institutional arrangements Let us Sum Up

59

4.7 4.8

Books Questions

UNIT 5: Individual Consumption 5.0 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 5.10 5.11 Objectives Introduction Utility Cardinal Utility Relation between Utility and Welfare Measurement of Utility Ordinal Measurement Monotic Transformation and Liner Transformation Assumptions Let us Sum Up Books Questions

UNIT 6: Income Distribution 6.0 6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 6.9 Objectives Introduction Real Income Lerners Views Futilitarians Views Marginal Utility of Money Distribution of Income Let us Sum Up Books Questions

UNIT 7: Marshalling Welfare Economic 7.0 7.1 7.2 7.3 7.4 7.5 Objectives Introduction Marshallian Welfare Economics Consumers Surplus Producers Surplus Doctrine of Maximum Satisfaction

60

7.6 7.7 7.8 7.9 7.10 7.11 7.12 7.13

Perfect Competition Tax-bounty analysis Implication of Tax bounty analysis Consumers Surplus and Welfare effect Tax- bounty analysis and Hicks Let us Sum Up Books Questions.

UNIT 8: Compensation Principle 8.0 8.1 8.2 8.3 8.4 8.5 8.6 8.7 8.8 8.9 Objectives Introduction New Welfare Economics Two Lines of Developments Assumptions Compensation Principle Utility Possibility Curve Criticisms Let us Sum Up Books Questions.

UNIT 9: Principle of Compensation Variation 9.0 9.1 9.2 9.3 9.4 9.5 9.6 9.7 9.8 9.9 9.10 Objectives Introduction Measurement of consumers surplus with indifference curve Consumers Surplus with diminishing marginal Utility of Money Comparison of Hicks and Marshallian Consumers surplus Hicks four concepts of consumers surplus Application of Consumers surplus Importance of Consumers surplus Let us Sum Up Books Questions.

61

UNIT 10: Scientific Socialism 10.0 10.1 10.2 10.3 10.4 10.5 10.6 10.7 10.8 10.9 Objectives Introduction Socialists View Limitations in free enterprise economy State Intervention Miser Hayek Robbins Views Democratic Socialism Let us Sum Up Books Questions.

BLOCK 3: UNIT 11: Pareto Optimality 11.0 11.1 11.2 11.3 11.4 Objectives Introduction Pareto Criterion Pareto Criterion and Utility possibility Curve Pareto Optimum and Marginal Conditions 11.4.1 Optimum Distribution of Products among consumers Efficiency of Exchange

11.4.2 Optimum allocation of factors: Efficiency in Production 11.4.3 Optimum Direction of Production: Efficiency in Product mix 11.4.4 Optimum Degree of Specialization 11.4.5 Optimum factor Product relationship 11.4.6 Allocation of time 11.4.7 Inter temporal optimum allocation of money assets 11.5 11.6 11.7 11.8 11.9 Second Order and total conditions Evaluation of Pareto Optimality Let Us Sum Up Books Questions

62

BLOCK 5: UNIT 15: Contribution of Scitovsky

15.0 15.1 15.2 15.3 15.4 15.5 Objectives Introduction Scitqvskys Paradox Scitovskys Double Criterion Of Welfare Criticisms Community Indifference Curves

15.5.1 Criticisms 15.5.2 Usefulness Of Community Indifference Curves

15.6 15.7 15.8 Let Us Sum Up Books Questions

UNIT 16: Contribution of Samuelson 16.0 16.1 16.2 16.3 16.4 16.5 16.6 16.7 16.8 16.9 Objectives Introduction Assumptions Samuelsons Conditions For Welfare Maximisation Pure Exchange Conditions Samuelson And Social Indifference Curves Samu Procedure Let Us Sum Up Books Questions

UNIT 17: Contribution of Bergson 17.0 17.1 17.2 17.3 17.4 17.5 Objectives Introduction Social Welfare Function and Value Judgement Individualistic Social Welfare Function Representation Of Bergson - Samuelson Welfare Function through social indifference curve Maximum Social Welfare; Point of Constrained Bliss

63

17.6

Critical Evaluation of Bergson and Samuelson 17.6.1 Limited practical Significance 17.6.2 Bias in social welfare function 17.6.3 Impossibility of constructing Social welfare function 17.6.4 Social welfare function is individualistic 17.6.5 Welfare depends on a number of variables 17.6.6 Welfare in terms of utility

17.7 17.8 17.9

Arrows Theory of Social Choice Arrows Condition of Social Choice Arrows Theory of Impossibility

17.10 Arrows Consequences. 17.11 Alternative Social Choice Theories 17.12 Let Us Sum Up 17.13 Books 17.14 Question BLOCK 6: UNIT 18: Pigouvian Welfare Economics 18.0 18.1 18.2 Objectives Introduction Main elements of Pigouvian Welfare Economics 18.2.1 The Pigouvian Concept of Economic Welfare 18.2.2 Two Basic Propositions 18.3 18.4 Non-Market Interdependence Externalities of production and Consumption 18.4.1 Externalities in Production 18.4.2 Externalities in Consumption 18.5 18.6 18.7 Summary Glossary Questions for Review

UNIT 19: External Economics and Diseconomies 19.0 19.1 Objectives Introduction

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19.2

Optimal resource allocation in a competitive market. 19.2.1 The competitive situation with no external economics or diseconomies

19.3

Competitive model with external economics and diseconomies 19.3.1 Beneficial Externalities of production 19.3.2 Detrimental externalities of production 19.3.3 Beneficial and deter mental externalities of consumption

19.4 19.5 19.6 19.7 19.8 19.9

Effects of externalities on allocation of resources Meads Analysis of external economics and diseconomies Unpaid factors Creation of atmosphere Summary For Further Reading

19.10 Review Questions UNIT 20: Welfare and Efficiency 20.0 20.1 20.2 20.3 20.4 Objectives Introduction Concept of welfare Criteria of social welfare Concept of Efficiency 20.4.1 Criteria of Efficiency 20.5 20.6 20.7 20.8 Summary Glossary Suggested Reading Review Questions

UNIT 21: Theoretical measure of Economic Welfare 21.0 21.1 21.2 Objectives Introduction Measures of economic Welfare 21.2.1 National income and per capita incomes as indicators of economic welfare 21.2.2 Measures of Economic Welfare (MEW) 21.2.3 Index of Sustainable economic Welfare (ISEW) 21.2.4 Index of Economic Well being 21.3 Earned income

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21.4 21.5 21.6 21.7 21.8 21.9

Taxes Intra family transfers Non-market activities and leisure times Summary Glossary Suggested Reading

21.10 Review Questions UNIT 22: The Empirical Measures of Economic Welfare 22.0 22.1 Objectives Introduction 22.1.1 Consumers Surplus as a measure 22.1.2 Pareto Principle 22.1.3 Compensation Principle 22.1.4 Aggregate surplus Measures 22.2 22.3 22.4 22.5 22.6 22.7 22.8 22.9 The Study of economic opportunity Standardizing by Family size Components of economic welfare Net worth Summary Glossary Suggested Reading Review Questions

UNIT 23: The distribution of economic Welfare 23.0 23.1 23.2 Objectives Introduction Presentation of Findings 23.2.1 Income Poverty 23.3 Country experience 23.3.1 Canada 1975-1994 23.3.2 Poland 23.3.3 Russia 23.3.4 India 23.4 Cash components of economic welfare

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23.5 23.6 23.7 23.8 23.9

Demographic characteristics and economic welfare Summary Glossary Suggested Reading Review Questions

UNIT 24: Increasing returns and Economic Progress 24.0 24.1 Objectives Introduction 24.1.1 Concept of economic progress 24.1.2 Concept of increasing returns 24.2 Why increasing returns operate 24.2.1 Internal economics 24.2.2 External economics 24.3 24.4 Buchanans increasing return Implications for economic progress/welfare 24.4.1 Productivity game 24.4.2 Taxes, subsidies and increasing returns 24.5 24.6 24.7 24.8 Summary Glossary Suggested Reading Review Questions

UNIT 25: Interdependent Utilities 25.0 25.1 25.2 Objectives Introduction Interdependent Utilities 25.2.1 A functional representation 25.2.2 Welfare economics and interdependent utility 25.2.3 Empirical studies Interdependence of Investment decisions

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BLOCK 7: Non Welfare Issues in welfare Economics UNIT 26: Optimum Tariff Structure 26.1 26.2 26.3 26.4 26.5 26.6 26.7 26.8 26.9 Objectives Introduction Meaning of tariff Effects of Tariff Optimum tariff Determination of optimum tariff Summing up Key words Suggesting Reading

26.10 Questions UNIT 27: Pricing Of Public Utility Undertakings 27.1 27.2 27.3 27.4 27.5 27.6 27.7 27.8 27.9 Objectives Introduction Meaning and nature of public Utility Undertakings Government Provision for Public utilities Objectives of Pricing Policy Principle of Pricing Summing up Key words Further Reading

UNIT 28: Utility Strategy and Social Decision Rules 28.1 28.2 28.3 28.4 28.5 28.6 28.7 Objectives Introduction Utility Strategy and Social Decision Rules Evaluation Summing up Key words Further Reading

UNIT 29: Conceptualizing Welfare Efficiency Relationship 29.1 29.2 Objectives Introduction

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29.3 29.4 29.5 29.6 29.7 29.8 29.9

Welfare Vs efficiency Issues Output taxation relationship Policy Implications of Output tax curve Taxation and Expenditure relation to aggregate demand Summing up Key words Further Reading

UNIT 30: Policy Implications Ad Future Directions 30.1 30.2 30.3 30.4 30.5 30.6 30.7 30.8 Objectives Significance of the welfare measure Welfare measure in future decision Calculating Economic Welfare for young families Benefits from the government programmed for the aged Summing up Key words Further Reading

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