Econ Syllabus PDF

SYLLABUS FOR
B.A./B.Sc. (HONOURS) ECONOMICS

UNDER CHOICE BASED CREDIT SYSTEM (CBCS)
Effective from 2016-17
DEPARTMENT OF ECONOMICS
RAVENSHAW UNIVERSITY
CUTTACK-753003
Ravenshaw University, Economics Dept. UG Syllabus under CBCS

SYLLABUS FOR B.A./ B.Sc. (HONOURS) ECONOMICS
UNDER CHOICE BASED CREDIT SYSTEM
RAVENSHAW UNIVERSITY, CUTTACK
Course Structure for B.A./B.Sc. (Honours) Economics

There are a total of fourteen economics core courses that students are required to take across
six semesters. All the core courses are compulsory. In addition to core courses in economics, a
student of B.A./B.Sc (Honours) Economics will choose four Discipline Specific Elective
(DSE) Courses. The DSE Courses are offered in the fifth and sixth semesters and two such
courses will be selected by a student from a set of courses specified for each of these
semesters (Groups I and II in the attached table).
Ability Enhancement Courses (AEC), Skill Enhancement Courses and Generic Elective
(GE) Course
Besides the honours papers, students are also required to take The Ability Enhancement (AE)
Courses, Skill Enhancement Courses and Generic Elective (GE) Courses as offered by the
University.
Readings List: The nature of several of the courses is such that only selected readings can be
specified in advance. Reading lists will be updated and topic-wise readings will be specified at
regular intervals, ideally on an annual basis.

Scheme of UG Economics (Honours) Course
Under Choice Based Credit System (CBCS)
Courses for Honours Students
Semester. Course Course Title Remarks
Code
I Core C101 Introductory
Microeconomics
C102 Mathematical Methods Compulsory
for Economics-I
Generic G101 - B.Sc (Hons) Students to choose
Elective any course from Mathematics,
Statistics and Geography.
B.A. (Hons) students to choose

any course form Mathematics,
Statistics, Geography, Political
Science, Sociology, Psychology,
History, Philosophy and
Education
Ability AE101 Environmental Science Compulsory

Enhancement
II Core C203 Introductory Compulsory
Macroeconomics
C204 Mathematical Methods
for Economics-II
Generic G202 - As per the course taken in the
Elective 1st Semester
Ability AE202 Communicative Compulsory
Enhancement English
Skill SE201 MIL (Odia/Hindi/Alt. Compulsory; the students will
Enhancement English) have to choose one of the courses
III Core C305 Intermediate
Microeconomics- I
C306 Intermediate Compulsory
Macroeconomics-I
C307 Statistical Methods
for Economics
Skill SE302 Computer / IT Compulsory
Enhancement
IV Core C408 Intermediate
Microeconomics- II Compulsory
C409 Intermediate
Macroeconomics-II
C410 Introductory
Econometrics
Skill SE403 Odisha Budget

Enhancement Tribal Economy of Student has to choose one paper
Odisha
V Core C511 Indian Economy I
C512 Development Compulsory
Economics I
Discipline D501 A. Public Economics
Specific B. Applied Students will have to choose any
Elective one of the two courses
Econometrics
D502 A. Money and Students will have to choose any
Financial Markets one of the two courses
B. Game Theory
Skill SE504 A. Odisha Economy
Enhancement B. Tourism Industry Student has to choose one paper
in Odisha
VI Core C613 Indian Economy II Compulsory
D614 Development
Economics II
Discipline D603 A. International Students will have to choose any
Specific Economics one of the three courses
Elective
B. Financial
Economics
C. Economics of
Social Sector
D604 Project Compulsory

B: Generic Electives
For students opting Economics as Generic Elective. The students of Economics shall
choose Generic Elective from the Other departments
Semester Code Course Title Remarks
I G101 Introductory For the students who will choose Economics as
Microeconomics Generic Elective
II G202 Introductory For the students who will choose Economics as
Macroeconomics Generic Elective
III G303 A. Indian Economy I Students will have to choose any one of the two
B. Money and courses
Financial Markets
IV G404 A. Indian Economy II Students will have to choose any one of the two
B. Public Finance courses

Mark Distribution of the mentioned papers is as follows:
COURSE CREDIT MARKS
Core Course 14 x 6 = 84 14 x 100 =1400
Discipline Specific 4 x 6 = 24 4 x 100 = 400
Elective Course
Generic Elective 4 x 6 = 24 4 x 100 = 400
Course
Ability Enhancement 2x2=4 2 x 50 = 100
Course
Skill Enhancement 4x2=8 4 x 50 = 200
Course
TOTAL 144 2500

Semester I
B A./B.Sc. (Honours) Economics
C101: INTRODUCTORY MICROECONOMICS-I (6 Credits)
Full marks: 100 (Mid Term-20 + End Term-80)
Course Description
This course is designed to expose the students to the basic principles of microeconomic
theory. The emphasis will be on thinking like an economist and the course will illustrate how
microeconomic concepts can be applied to analyze real-life situations.
Unit I. Exploring the subject matter of Economics

Why study economics? Scope and method of economics; the economic problem: scarcity
and choice; Opportunity Cost; PPF; the question of what to produce, how to produce and
how to distribute output; economic systems; reading and working with graphs. Slope: nature
and measurement.
Unit II. Supply and Demand: How Markets Work, Markets and Welfare
Markets and competition; determinants of individual demand/supply; demand/supply
schedule and demand/supply curve; market versus individual demand/supply; shifts in the
demand/supply curve, demand and supply together; how prices allocate resources; elasticity
and its application; Price rationing; taxes and the costs of taxation; consumer surplus;
producer surplus and the efficiency of the markets.
Unit III. Household Behaviour and Consumer Choice

The consumption decisions – Basis of Choice: Utility; Diminishing MU, budget constraint;
consumption and income/price changes; description of preferences (representing preferences
with indifference curves); properties of indifference curves; consumer‘s optimum choice;
income and substitution effects;
Unit IV. The Firm

Behaviour of profit maximizing firms and the production process; Production Functions
with one variable factor of production, Production Functions with Two variables factor of
production, short run costs and output decisions; costs and output in the long run.
Unit V. Market Structure

Different forms of market : Perfect competition, Monopoly, oligopoly - meaning and features
Labour and land markets - basic concepts (derived demand, productivity of an input,
marginal productivity of labour, marginal revenue product); demand for labour; input demand
curves; shifts in input demand curves; competitive labour markets; and labour markets and
public policy.
Basic Reading List
th
1. Karl E. Case and Ray C. Fair, Principles of Economics, Pearson Education Inc., 8
Edition, 2007.
Additional Reading List
1. N. Gregory Mankiw, Economics: Principles and Applications, India edition by South
Western, a part of Cengage Learning, Cengage Learning India Private Limited, 4th
edition, 2007.
2. Joseph E. Stiglitz and Carl E. Walsh,thEconomics, W.W. Norton & Company, Inc., New
York, International Student Edition, 4 Edition, 2007

Semester I
C102: MATHEMATICAL METHODS FOR ECONOMICS I (6 Credits)
Course Description
This is the first of a compulsory two-course sequence. The objective of this sequence is to
transmit the body of basic mathematics that enables the study of economic theory at the
undergraduate level, specifically the courses on microeconomic theory, macroeconomic
theory, statistics and econometrics set out in this syllabus. In this course, particular economic
models are not the ends, but the means for illustrating the method of applying mathematical
techniques to economic theory in general. The level of sophistication at which the material is
to be taught is indicated by the contents of the prescribed textbook.
Unit I. Preliminaries
Logic and proof techniques; number systems, intervals; sets and set operations; Types of sets:
Closed sets, bounded sets, convex set; Ordered pairs, Cartesian products, and relations.
Unit II. Functions of one real variable

Functions and their properties; Types of functions- polynomial, rational, exponential,
logarithmic; Sequences and series: convergence, algebraic properties and applications; Limit
of a function; Continuous functions: characterizations, properties with respect to various
operations and applications;
Unit III. Derivative for Functions of One Variable
Differentiable functions: properties; derivative and slope of a curve, Rules of differentiation
for a function with one independent variable; Application of derivatives; indeterminate
forms and L’ Hopital’s Rule.
Second and higher order derivatives. Applications to verify concavity and convexity.
Necessary condition for unconstrained maxima and minima, second order conditions
Unit IV. Integration of functions
Indefinite integrals: Rules of integration; Techniques of integration- substitution rule,
integration by parts and partial fraction.
Definite integrals: Riemann integral- partition over an interval and Riemann Sum,
integrability of a function, fundamental theorem of integral calculus, properties of definite
integrals.
Unit V. Dynamic Methods
Linear first order differential equations, linear second order differential equations. Linear first-
order difference equations, linear second order difference equations.
N.B. Trigonometric functions are excluded
Basic Reading List
1. Hoy, Michael, John Livernois, Chris Mckenna, Ray Rees and Thanasis Stengos, Mathematics for
Economics, PHI Learning
2. Sydsaeter Knut and Hammond Peter J. Mathematics for Economic Analysis. Pearson Educational
Asia
1. Chiang Alpha C. and Wainwright Kevin, Fundamental Methods of Mathematical
Economics, McGraw Hill
2. Simon, Carl P and Lawrence Blume, Mathematics for Economists, WW Norton

Semester I
B A./B.Sc. Economics
Generic Elective Course
G101: INTRODUCTORY MICROECONOMICS I (6 Credits)
Course Description
This course is designed to expose the students to the basic principles of microeconomic
theory. The emphasis will be on thinking like an economist and the course will illustrate how
microeconomic concepts can be applied to analyze real-life situations.
Unit I. Exploring the subject matter of Economics

Why study economics? Scope and method of economics; the economic problem: scarcity
and choice; Opportunity Cost; PPF; the question of what to produce, how to produce and
how to distribute output; economic systems; reading and working with graphs. Slope: nature
and measurement.
Unit II. Supply and Demand: How Markets Work, Markets and Welfare
Markets and competition; determinants of individual demand/supply; demand/supply
schedule and demand/supply curve; market versus individual demand/supply; shifts in the
demand/supply curve, demand and supply together; how prices allocate resources; elasticity
and its application; Price rationing; taxes and the costs of taxation; consumer surplus;
producer surplus and the efficiency of the markets.
Unit III. Household Behaviour and Consumer Choice

The consumption decisions – Basis of Choice: Utility; Diminishing MU, budget constraint;
consumption and income/price changes; description of preferences (representing preferences
with indifference curves); properties of indifference curves; consumer‘s optimum choice;
income and substitution effects;
Unit IV. The Firm

Behaviour of profit maximizing firms and the production process; Production Functions
with one variable factor of production, Production Functions with Two variables factor of
production, short run costs and output decisions; costs and output in the long run.
Unit V. Market Structure

Different forms of market : Perfect competition, Monopoly, oligopoly - meaning and features
Labour and land markets - basic concepts (derived demand, productivity of an input,
marginal productivity of labour, marginal revenue product); demand for labour; input demand
curves; shifts in input demand curves; competitive labour markets; and labour markets and
public policy.
Basic Reading List
th
Karl E. Case and Ray C. Fair, Principles of Economics, Pearson Education Inc., 8 Edition, 2007.
N. Gregory Mankiw, Economics: Principles and Applications, India edition by South Western, a part
th
of Cengage Learning, Cengage Learning India Private Limited, 4 edition, 2007.

Semester I
Ability Enhancement Compulsory Course
AE101: Environmental Science (2 Credits)
Full Mark: 50 (End semester evaluation)
Unit I: Ecosystems
Ecosystem- Structure and function of ecosystem (Abiotic and Biotic factors); Energy flow in
an ecosystem.
Environmental Problems: global warming and Climate change, ozone layer depletion.
Deforestation, acid rain; impacts of environmental disturbances.
Unit II: Natural Resources and Biodiversity

Energy resources: Renewable and non-renewable energy sources. Biodiversity patterns and
global biodiversity hot spots, India as a mega-biodiversity nation; Endangered and endemic
species of India, Threats to biodiversity, Conservation of biodiversity: In-situ and Ex-
situ conservation of biodiversity.
Unit III: Environmental Pollution, Impact and Management
Environmental pollution: Air, water, soil and noise pollution, Nuclear hazards and human
health risks, Solid waste management: Control measures of urban and industrial waste.
Environment Protection Act and International agreements: Montreal and Kyoto protocols and
Convention on Biological Diversity (CBD).
Suggested Readings:
1. Carson, R. 2002. Silent Spring. Houghton Mifflin Harcourt.
2. Gadgil, M., & Guha, R. 1993. This Fissured Land: An Ecological History of India. Univ. of
California Press.
3. Gleeson, B. and Low, N. (eds.) 1999. Global Ethics and Environment, London, Routledge.
4. Gleick, P. H. 1993. Water in Crisis. Pacific Institute for Studies in Dev., Environment &
Security. Stockholm Env. Institute, Oxford Univ. Press.
5. Groom, Martha J., Gary K. Meffe, and Carl Ronald Carroll. Principles of Conservation
Biology. Sunderland: Sinauer Associates, 2006.
6. Grumbine, R. Edward, and Pandit, M.K. 2013. Threats from India’s Himalaya
dams. Science, 339: 36-37.
7. McCully, P. 1996. Rivers no more: the environmental effects of dams (pp. 29-64). Zed
Books.
8. McNeill, John R. 2000. Something New Under the Sun: An Environmental History of
the Twentieth Century.
9. Odum, E.P., Odum, H.T. & Andrews, J. 1971. Fundamentals of Ecology. Philadelphia:
Saunders.
10. Pepper, I.L., Gerba, C.P. & Brusseau, M.L. 2011. Environmental and Pollution Science.
Academic Press.

Semester II
C203: INTRODUCTORY MACROECONOMICS (6 Credits)
Course Description
This course aims to introduce the students to the basic concepts of Macroeconomics.
Macroeconomics deals with the aggregate economy. This course discusses the preliminary
concepts associated with the determination and measurement of aggregate macroeconomic
variable like savings, investment, GDP, money and inflation.
Unit I. Introduction to Macroeconomics and Basic Concepts

Macro vs. Micro Economics; Why Study Macroeconomics? Limitations of Macroeconomics;
Stock and Flow variables, Equilibrium and Disequilibrium, Partial and General Equilibrium
Statics – Comparative Statics and Dynamics; Introduction to National Income, Concepts of
GDP, GNP, NDP and NNP at market price and factor cost; Personal Income and Disposable
personal Income; Real versus Nominal GDP, GDP Deflator.
Unit II. Measurement of Macroeconomic Variables
Rules and approaches of Measurement of GDP (Income, expenditure, product and Value
added approaches), Difficulties of Estimating National Income, Circular Flow of Income and
expenditure in two, three, and four-sector economy. Measuring Inflation rate and
Unemployment rate; National Income and Economic Welfare.
Unit III. Money

Evolution, Definitions and Functions of money; Value of Money, quantity theory of
money- Cash Transactions, Keynesian and Friedman Approaches; Demand for Money –
Classical, Neoclassical and Keynesian Approaches, The Keynesian Liquidity Trap and its
Implications, Determination of money supply and demand; Measures of Money Supply in
India.
Unit IV. Inflation, Deflation, Depression and Stagflation

Inflation- Meaning, Types, causes and Effects. Demand-pull and cost-push inflation; the cost
of inflation and anti-Inflationary Measures; Deflation- Meaning, Causes, Costs and Anti-
Deflationary Measurers, Depression and Stagflation; Inflation vs. Deflation
Unit V. Determination of National Income
Classical systems-Say’s Law, Theory of Determination of Income and Employment.
Keynesian systems- Simple Keynesian model of income determination; Aggregate Demand
and Aggregate Supply, equilibrium aggregate output; Government participation in the
economy- Fiscal policy at work; The Fiscal Multiplier effect, S imp le IS-LM model
Basic Reading List
1. N. Gregory Mankiw (2010):Macroeconomics, 7th edition, Cengage Learning India Private
Limited, New Delhi
th
2. Karl E. Case and Ray C. Fair, Principles of Economics, Pearson Education Inc., 8
Edition, 2007
3. Suraj B Gupta (2006), Monetary Economics Institutions, Theory and Policy, S.Chand,
New Delhi
1. Gardner Ackley, Macroeconomics: Theory and Practice, Macmillan publisher
2. Robert J. Gordon, Macroeconomics, Prentice-Hall India Limited, 2011
3. Robert J Barro, Macroeconomics, Prentice-Hall India Limited, 2011
Semester II
C204: MATHEMATICAL METHODS FOR ECONOMICS II (6 Credits)
Course Description
This course is the second part of a compulsory two-course sequence. This part is to be taught
in Semester II following the first part in Semester I. The objective of this sequence is to
transmit the body of basic mathematics that enables the study of economic theory at the
undergraduate level, specifically the courses on microeconomic theory, macroeconomic
theory, statistics and econometrics set out in this Syllabus. In this course, particular economic
models are not the ends, but the means for illustrating the method of applying mathematical
techniques to economic theory in general. The level of sophistication at which the material is
to be taught is indicated by the contents of the prescribed textbook.
Unit I. Linear Algebra (Matrices and Determinants)
Systems of linear equations: properties of their solution sets; matrices-elementary operations-
matrix addition, product, rank of a matrix, determinants and their properties, inverse of a
matrix, application of Cramer’s rule for solution of a system of linear equations.
Unit II. Linear Algebra (Vector Operations)
Vector spaces: algebraic and geometric properties, scalar products, basis of a vector space,
orthogonality; linear transformations: properties, The Eigen value problem, spectral
decomposition of a square matrix, Quadratic Forms- positive/negative definite, semi-definite
and indefinite forms.
Unit III. Derivatives of Functions of several variables

Differentiable functions: characterizations, Partial differentiation techniques; second order
partial derivatives, applications- demand and cost elasticity, cross and partial elasticity; the
first order total differentials; Derivatives of implicit functions, the implicit function theorem;
level curves and level sets- isoquants and the marginal rate of technical substitution,
indifference curves and the marginal rate of substitution,
Concavity and convexity, quasi-concavity and quasi-convexity, homogeneous and homothetic

functions, Euler’s theorem.
Unit IV. Multi-variable optimization-I

Unconstrained optimization: geometric characterizations, characterizations using calculus-
first order and second order conditions; applications- multiproduct monopoly, Cournot
duopoly; constrained optimization with equality constraints: geometric characterizations,
Lagrange characterization using calculus; applications-consumer’s equilibrium and
producer’s equilibrium.
Unit V. Multi-Variable Optimisation-II

Linear Programming: Basic concepts, Graphic Solutions, Primal vs. Dual. Non-linear
Programming: Kuhn-Tucker conditions, Application in utility maximisation problem.
Basic Readings
1. Hoy, Michael, John Livernois, Chris Mckenna, Ray Rees and Thanasis Stengos,
Mathematics for Economics, PHI Learning

2. Sydsaeter Knut and Hammond Peter J. Mathematics for Economic Analysis. Pearson
Educational Asia
Additional Readings
1. Chiang Alpha C. and Wainwright Kevin, Fundamental Methods of Mathematical
Economics, McGraw Hill
2. Simon, Carl P and Lawrence Blume, Mathematics for Economists, WW Norton

Semester II
G202: INTRODUCTORY MACROECONOMICS (6 Credits)
Course Description
This course aims to introduce the students to the basic concepts of Macroeconomics.
Macroeconomics deals with the aggregate economy. This course discusses the preliminary
concepts associated with the determination and measurement of aggregate macroeconomic
variable like savings, investment, GDP, money and inflation.
Unit I. Introduction to Macroeconomics and Basic Concepts

Macro vs. Micro Economics; Why Study Macroeconomics? Limitations of Macroeconomics;
Stock and Flow variables, Equilibrium and Disequilibrium, Partial and General Equilibrium
Statics – Comparative Statics and Dynamics; Introduction to National Income, Concepts of
GDP, GNP, NDP and NNP at market price and factor cost; Personal Income and Disposable
personal Income; Real versus Nominal GDP, GDP Deflator.
Unit II. Measurement of Macroeconomic Variables

Rules and approaches of Measurement of GDP (Income, expenditure, product and Value
added approaches), Difficulties of Estimating National Income, Circular Flow of Income and
expenditure in two, three, and four-sector economy. Measuring Inflation rate and
Unemployment rate; National Income and Economic Welfare. National income accounting
for an open economy
Unit III. Money

Evolution, Definitions and Functions of money; Value of Money, quantity theory of
money- Cash Transactions, Keynesian and Friedman Approaches; Demand for Money –
Classical, Neoclassical and Keynesian Approaches, The Keynesian Liquidity Trap and its
Implications, Determination of money supply and demand; Measures of Money Supply in
India.
Unit IV. Inflation, Deflation, Depression and Stagflation

Inflation- Meaning, Types, causes and Effects. Demand-pull and cost-push inflation; the cost
of inflation and anti-Inflationary Measures; Deflation- Meaning, Causes, Costs and Anti-
Deflationary Measurers, Depression and Stagflation; Inflation vs. Deflation
Unit V. Determination of National Income
Classical systems-Say’s Law, Theory of Determination of Income and Employment.
Keynesian systems- Simple Keynesian model of income determination; Aggregate Demand
and Aggregate Supply, equilibrium aggregate output; Government participation in the
economy- Fiscal policy at work; The Fiscal Multiplier effect, S imp le IS-LM model
Basic Reading List
1. N. Gregory Mankiw (2010):Macroeconomics, 7th edition, Cengage Learning India
Private Limited, New Delhi
2. Suraj B Gupta (2006), Monetary Economics Institutions, Theory and Policy, S.Chand,
New Delhi
3. Gardner Ackley, Macroeconomics: Theory and Practice, Macmillan publisher.
1. Robert J. Gordon, Macroeconomics, Prentice-Hall India Limited, 2011
Robert J Barro, Macroeconomics, Prentice-Hall India Limited, 2011

Semester II
Ability Enhancement Compulsory Course
AE202: Communicative English (2 Credits)
This is a need based course. It aims to develop the communicative ability of the students in
speaking, reading and writing skills. The course also aims to equip the students in use of
grammar in meaningful contexts and express themselves in day to day life’s practical
situations.
Unit I.
Basics of Communication:
The process of Communication; Language as a Tool of Communication; Levels of

Communication, The Flow of Communication; Communication Networks; Barriers to
Communication; Technology in Communication
Verbal and Non-verbal Communication: Spoken and written; Formal and Informal Style; Use
of bias free English
Unit II.
Principles and Practices of Writing.

Grammar and Punctuation: Subject-Verb Agreement; Common Mistakes; Punctuation.
Sentence Construction
Unit III.
Reading and Writing
Comprehension; Art of Condensation; Note making; Summarizing; Paragraph Writing;

Writing a Review; Dialogue Writing

Semester II
Skill Enhancement Compulsory Course
SE201: MIL(Odia/Hindi/Alternative English)(2 Credits)

HINDI
ALTERNATIVE ENGLISH
Unit I:
Poetry: Shakespeare: Sonnet CXXX; William Blake: London;
T S Eliot: Preludes; Thomas Hardy: The Darkling Thrush
Wordsworth: It’s a Beauteous Evening
Unit II:
Short Story: Gabriel Garcia Marquez: Balthazar’s Marvellous Afternoon
Amitav Ghosh: Ghost’s of Mrs Gandhi; Omprakash Valmiki: Jhootan
Unit III:
Essays: Virginia Woolf: Shakespeare’s Sister
Chitra Banerjee Divakaruni: Indian Movie, New Jersey
B. R. Ambedkar: Who are the Shudras?
Prescribed Text: The Individual and Society: Essays Stories and Poems. New Delhi: Pearson,
2006

Semester III
C305: INTERMEDIATE MICROECONOMICS-I (6 Credits)
Course Description
The course is designed to provide a sound training in microeconomic theory to formally
analyze the behaviour of individual agents. Since students are already familiar with the
quantitative techniques in the previous semesters, mathematical tools are used to facilitate
understanding of the basic concepts; this course looks at the behaviour of the consumer and
the producer and also covers the behaviour of a competitive firm.
Unit I. Consumer Theory I

Preferences and Utility: Axioms of Rational Choice, Utility, Trades and Substitutions,
Indifference Curves, Utility Functions for Specific Preferences, The Many-Good case; Utility
Maximization and Choice: The Two-Good Case (Graphical Analysis), The n-Good Case,
Indirect Utility Function, The Lump Sum Principle, Expenditure Minimization, Properties of
Expenditure Function.
Unit II. Consumer Theory II

Income and Substitution Effects: Demand Functions, Changes in Income, Changes in a
Good’s Price, The Individual’s Demand Curve, Compensated (Hicksian) Demand Curves and
Functions, Demand Elasticities, Consumer Surplus; Demand Relationships among Goods:
The Two-Good Case, Substitutes and Complements, Net (Hicksian) Substitutes and
Complements, Substitutability with Many Goods, Composite Commodities, and Home
Production, Attributes of Goods and Implicit Prices
Unit III. Production Theory

Marginal Productivity, Isoquant Maps and the Rate of Technical Substitution, Production with
One Variable Input (labour) and with Two-Variable Inputs, Returns to Scale, Four Simple
Production Functions (Linear, Fixed Proportions, Cobb-Douglas, CES), Technical Progress,
many-input production functions.
Unit IV. Cost Functions

Definition of Costs, Cost Functions and its Properties, Shift in Cost Curves, the elasticity of
substitution, Cost in the Short-Run and Long-Run, Long-Run versus Short-Run Cost Curves,
the translog cost function, Production with Two Outputs – Economies of Scope.
Unit V. Profit Maximization

The Nature and Behaviour of Firms, Profit Maximization, Marginal Revenue, Short-Run
Supply by Price-Taking Firm, Profit Functions and its Properties, Profit Maximization and
Input Demand – Single-Input Case and Two-Input Case.
Basic Reading List

1. H. R. Varian (2010): Intermediate Microeconomics: A Modern Approach, 8th Edition,
W.W. Norton and Company/Affiliated East-West Press (India). The workbook by
Varian and Bergstrom may be used for problems.
1. R. S. Pindyck, D. N. Rubinfeld and P. L. Meheta (2009): Microeconomics, 7th Edition,
Pearson, New Delhi.
2. C. Snyder and W. Nicholson (2012): Microeconomic Theory: Basic Principles and
Extensions, 11th Edition, Cengage Learning, Delhi, India.
Semester III
C306: INTERMEDIATE MACROECONOMICS I (6 Credits)
Course Description
This course introduces the students to formal modelling of a macro-economy in terms of
analytical tools. It discusses various alternative theories of output and employment
determination in a closed economy in the short run as well as medium run, and the role of
policy in this context. It also introduces the students to various theoretical issues related to an
open economy.
Unit I Consumption function and theories

Short run and long run consumption functions, APC, MPC, APS, MPS. Fundamental
Psychological Law of Consumption; Implications of Keynesian Consumption Function;
Factors Influencing Consumption Function; Measures to raise Consumption Function
Theories of consumption–Absolute, relative, permanent and life cycle income hypotheses.
Unit II Investment function and theories

The decisions to invest- Autonomous and Induced investment, investment multiplier, MEC
and MEI schedule. Profit and accelerator theories of investment. The rate of interest and the
rate of investment, the role of finance beyond the interest rate.
Unit III IS-LM Approach

The interaction of the real and monetary sector of the economy. Derivation of IS-LM, The IS-
LM model: Keynesian version, Goods and money market equilibrium, Elasticity and shifts of
IS and LM schedules and their implications for Equilibrium, IS-LM model with government
sector, The role and relative effectiveness of fiscal and monetary policy.
Unit IV Open Economy Models

The international flows of capital and goods, saving and investment in an open economy,
Exchange rates, policy influence on real exchange rates. Mundell-Fleming model, the small
open economy under floating and fixed exchange rates. International financial markets. Open
economy and policy measures- fiscal, monetary and trade policies.
Unit V Inflation, Unemployment and Expectations and Business Cycle

Inflation – Unemployment Trade off and Phillips curve, natural rate of unemployment
hypothesis, the new microeconomics of the labour market, adaptive expectations and rational
expectations. Meaning and characteristics of trade cycles; Hawtrey’s Monetary Theory,
Hayek’s Over-investment theory.
Basic Reading List

1. Shapiro, E. (1996), Macroeconomic Analysis, Galgotia Publications, New Delhi N. Gregory
Mankiw (2010): Macroeconomics, 7th edition, Cengage Learning India Private Limited, New
Delhi
2. Levacic R and A Rebbman, Macroeconomics: An Introduction to Keynesian- Neoclassical
controversies, Macmillan Publicaton, 2nd edition , 2003
3. N. Gregory Mankiw (2010):Macroeconomics, 7th edition, Cengage Learning India Private
Limited, New Delhi
1. Richard T. Froyen (2005): Macroeconomics, 2nd Edition, Pearson Education Asia, New Delhi.
2. Robert J Barro, Macroeconomics, Prentice-Hall India Limited, 2011
Semester III
C307: STATISTICAL METHODS FOR ECONOMICS (6 Credits)
Course Description
This is a course on statistical methods for economics. It begins with some basic concepts and
terminology that are fundamental to statistical analysis and inference. It then develops the
notion of probability, followed by probability distributions of discrete and continuous random
variables and of joint distributions. This is followed by a discussion on sampling techniques
used to collect survey data. The course introduces the notion of sampling distributions that act
as a bridge between probability theory and statistical inference. The semester concludes with
some topics in statistical inference that include point and interval estimation.
Unit I. Descriptive Statistics

Arithmetic Mean, Median and Mode (for both Grouped and Ungrouped Data), Properties of
Arithmetic Mean, Comparison of Mean Median and Mode; Geometric and Harmonic Mean,
Range, Quartile Deviation, Mean Deviation and Standard Deviation, Properties of Standard
Deviation, Comparison of Different Measures of Dispersion, Measures of Skewness and
Kurtosis. The Concept of Moments.
Unit II. Correlation and Regression Analysis

Elementary Analysis of Linear Correlation: Covariance, Scatter Diagram, Karl Pearson’s
Coefficient of Correlation–Properties and the Method of Calculation, Concept of Spearman’s
Rank Correlation. The Concept of Regression, Regression Lines and their Estimation in a
Bivariate series, Least Squares Method, The coefficient of determination (r2) and Standard
Error of Estimate.
Unit III. Elementary Probability Theory

Probability: Concepts of Sample Space and Events, Probability of an Event, Approaches to
Probability (Classical, Empirical and Axiomatic ), Addition and Multiplication Theorems;
Conditional Probability and Independence of Events; Inverse Probability: Bayes theorem and
its application.
Unit IV. Random Variables and Probability Distributions

Concept of a Random Variable, Discrete and Continuous Random Variable, Probability Mass
Function, Probability Density Function, Mathematical Expectation and Its Properties.
Theoretical Distributions: Binomial distribution- its properties, Poission distribution and its
properties, Poission distribution as a limiting case of binomial distribution, normal
distribution-its properties, Normal distribution as a limiting case of binomial distribution.
Unit V. Sampling
Principal steps in a sample survey; Errors in statistics: sampling vs. non-sampling errors,
methods of sampling: simple and stratified random sampling, Selection of a simple random
sample, Allocation of sample size in stratified sampling and STRS, Systematic sampling,
Cluster and Multistage sampling, Quota sampling.
Basic Reading List
1. Gupta, S.C. Fundamentals of Statistics, Himalaya Publishing House, Delhi Publications, New Delhi
2. Murray R. Speigel Theory & Problems of Statistics, Schaum’s Publishing Series.
1. Mukyopadhyay P. Mathematical Statistics. Kolkata Publishing House.
2. Mood. A. M, Graybill, F A. and Boes D. C. Introduction to the Theory of Statistics, McGraw Hill.
3. Nagar and Das, Basic Statistics, OUP
4. Jay L. Devore, Probability and Statistics for Engineers, Cengage Learning, 2010.
5. John E. Freund, Mathematical Statistics, Prentice Hall, 1992.
6. Richard J. Larsen and Morris L. Marx, An Introduction to Mathematical Statistics and its
Applications, Prentice Hall, 2011.
7. William G. Cochran, Sampling Techniques, John Wiley, 2007.

Semester III
G303A: INDIAN ECONOMY-I (6 Credits)
Course Description
Using appropriate analytical frameworks, this course reviews major trends in economic
indicators and policy debates in India in the post-Independence period, with particular
emphasis on paradigm shifts and turning points. Given the rapid changes taking place in
India, the reading list will have to be updated annually.
Unit I. Economic Development since Independence

Major features of Indian Economy at independence and characteristics of economic
underdevelopment of India (with reference to colonial rule of India); Trend in National
Income and Percapita income; Sectoral composition (output and employment) - Primary,
Secondary and Tertiary. Development under different policy regimes—goals, constraints,
institutions and policy framework;
Unit II Population and Human Development

Broad demographic features — Population size and growth rates, Sex and age composition,
occupational distribution. Density of population, Urbanisation and economic growth in India.
Population growth as a factor of economic development, National Population Policy, Progress
of human development in India. Development of education in India, health and family welfare
and the development of health infrastructure.
Unit III. Structural change of post independent Indian economy

Growth, Distribution and Trends of national income, sectoral distribution. An assessment of
performance—sustainability and regional contrasts; structural change, savings and
investment. Trends, measurement and policies in poverty; Inequality-measurement, causes
and effects, Unemployment-Types, Causes and Employment policies in India.
Unit IV. Indian economy in post reform period

Background of Indian Economic Reforms – New Economic Policy; Redefining India’s
development strategy; Changing Role of State and Market Industrial Policy,
Disinvestment policy and Privatization; Financial sector reforms including banking
reform.
UNIT-V External sector

Composition and Direction of Foreign Trade. External sector reforms: Foreign Exchange
market, Balance of Payments, reform, convertibility, export-import policy, foreign direct
investment; Post-reform Agricultural Performance and its Crisis; Appraisal of Indian
Economic Reform
Basic Reading List
1. Jean Dreze and Amartya Sen, Jean Dreze and Amartya Sen, 2013. An Uncertain Glory:
India and its Contradictions, Princeton University Press.
2. Pulapre Balakrishnan, 2007, The Recovery of India: Economic Growth in the Nehru
Era, Economic and Political Weekly, November.
3. Rakesh Mohan, 2008, ―Growth Record of Indian Economy: 1950-2008. A Story of
Sustained Savings and Investment, Economic and Political Weekly, May.
4. Uma Kapila,2010, India’s economic Development since 1947, Academic Foundation,
5. S.L. Shetty, 2007, ―India‘s Savings Performance since the Advent of Planning, in
6. Himanshu, 2010, Towards New Poverty Lines for India, Economic and Political
Weekly, January.
7. Mishra and Puri(2015)-Indian Economy, Kalyani Pub,New Delhi

Semester III
G303B: MONEY AND FINANCIAL MARKETS (6 Credits)
Course Description
This course exposes students to the theory and functioning of the monetary and financial
Sectors of the economy. It highlights the organization, structure and role of financial markets
and institutions. It also discusses interest rates, monetary management and Instruments of
monetary control. Financial and banking sector reforms and monetary Policy with special
reference to India are also covered.
Unit I. Money
Concept, functions, measurement; theories of money supply determination- Classical and
Keynesian approaches to demand for money, Post-Keynesian approaches to demand for
money — Patinkin and the Real Balance Effect; ; RBI approach to money supply; High
powered money and money multiplier: Money supply in an open economy
Unit II. Financial Institutions, Markets, Instruments and Financial Innovations

Role of financial markets and institutions; problem of asymmetric information –adverse
selection and moral hazard; financial crises.Structure of money market and capital market —
Call money market. Treasury bill market, Commercial bill market including commercial paper
and certificate of deposits,Government securities market, Primary and secondary market for
securities.
Unit III. Interest Rates

Determination; sources of interest rate differentials; theories of term structure of interest rates-
Expectation theory, liquidity premium theory ,segmented market theory; interest rates in
India.
Unit IV. Commercial Banking System

Meaning and types; Functions of commercial banks; the process of credit creation and its
limitations; Balance sheet and portfolio management, Indian banking system: Changing role
and structure; banking sector reforms.
Unit V. Central Banking and Monetary Policy

Functions of a central bank; Quantitative and qualitative methods of credit control, monetary
policy: objectives, indicators and instruments of monetary control, monetary management in
an open economy, current monetary policy of India, liquidity adjustment facility (LAF), MSF,
limitations of monetary policy.
Basic Reading List
1. F. S. Mishkin and S. G. Eakins, Financial Markets and Institutions, Pearson Education, 6th
edition, 2009.
2. M. R. Baye and D. W. Jansen, Money, Banking and Financial Markets, AITBS,1996.
1. F. J. Fabozzi, F. Modigliani, F. J. Jones, M. G. Ferri, Foundations of Financial Markets and
Institutions, Pearson Education, 3rd edition, 2009.
2. Rakesh Mohan, Growth with Financial Stability- Central Banking in an Emerging Market,
Oxford University Press, 2011.

3. L. M. Bhole and J. Mahukud, Financial Institutions and Markets, Tata McGraw Hill, 5th
edition, 2011.
4. M. Y. Khan, Indian Financial System, Tata McGraw Hill, 7th edition, 2011.
5. N. Jadhav, Monetary Policy, Financial Stability and Central Banking in India, Macmillan, 2006.
6. R.B.I. Bulletin, Annual Report and Report on Currency and Finance (latest).

Semester III
Skill Enhancement Course
SE302: Computer Science (2 Credits)
Full marks: 50 (End Term evaluation)
UNIT-I
Introduction: Introduction to computer system, uses, types. Data Representation: Number
systems and character representation, binary arithmetic. Human Computer Interface: Types of
software, Operating system as user interface, utility programs.
UNIT-II
Devices: Input and output devices (with connections and practical demo), keyboard, mouse,
joystick, scanner, OCR, OMR, bar code reader, web camera, monitor, printer, plotter.
Memory: Primary, secondary, auxiliary memory, RAM, ROM, cache memory, hard disks,
optical disks
UNIT-III
Computer Organisation and Architecture: C.P.U., registers, system bus, main memory unit,
cache memory, Inside a computer, SMPS, Motherboard, Ports and Interfaces, expansion
cards, ribbon cables, memory chips, processors.
Reference Books:
1. Goel, Computer Fundamentals, Pearson Education, 2010.

2. P. Aksoy, L. DeNardis, Introduction to Information Technology, Cengage Learning,
2006
3. P. K.Sinha, P. Sinha, Fundamentals of Computers, BPB Publishers, 2007.

Semester IV
C408: Intermediate Micro Economics-II (6 Credits)
Course Description
This course is a sequel to Intermediate Microeconomics I. The emphasis will be on giving
conceptual clarity to the student coupled with the use of mathematical tools and reasoning.
It covers general equilibrium and welfare, imperfect markets and topics under information
economics.
Unit I. Competitive Market

Market demand, timing of the supply response, price determination in short-run, shifts in
supply and demand curves; long-run analysis: long-run supply curve, long-run elasticity of
supply, comparative static analysis of long-run equilibrium, producer surplus in the long-run;
economic efficiency and welfare analysis, price controls
Unit II. General Equilibrium and Welfare

Perfectly competitive price system, A simple framework of general equilibrium of two goods,
comparative static analysis, general equilibrium and factor prices, existence of general
equilibrium, Equilibrium and efficiency under pure exchange; the first theorem of welfare
economics, distribution and the second theorem of welfare economics
Unit III. Monopoly
Barriers to entry, profit maximisation, mark up pricing, monopoly and resource allocation-
deadweight loss, price discrimination-first degree, second degree and third degree with
examples, Bundling and two-part tariffs; Monopolistic competition-product differentiation
Unit IV. Oligopoly

Short-run pricing and output decisions: Bertrand model, Cournot model, Stackelberg model,
capacity constraints, product differentiation, tacit collusion and punishment strategies; longer-
run decisions: investment, entry and exit, strategic entry deterrence, signalling, innovations.
Unit V. Market Failure

Asymmetric information: Complex contracts, principal-agent problem, hidden actions, owner-
manager relationships, moral hazards, non-linear pricing, adverse selection, signalling,
auctions; externalities and allocative inefficiency
Basic Reading List

1. Hal R. Varian, Intermediate Microeconomics, a Modern Approach, 8th edition, W.W.
Norton and Company/Affiliated East-West Press (India), 2010.The workbook by Varian
and Bergstrom could be used for problems.
2. C. Snyder and W. Nicholson, Fundamentals of Microeconomics, Cengage Learning
(India), 2010.
3. R. S. Pindyck, D. N. Rubinfeld and P. L. Meheta (2009): Microeconomics, 7th Edition,
Pearson, New Delhi.

Semester IV
C409: INTERMEDIATE MACROECONOMICS II (6 Credits)
Course Description
This course is a sequel to Macroeconomics I. In this course, the students are introduced to the
long run dynamic issues like growth and technical progress. It also provides the micro-
foundations to the various aggregative concepts used in the previous course.
Unit I. Growth Models-I
Harrod-Domar model- instability of equilibrium, Joan Robinson and the Golden Rule of
Capital Accumulation, Basic Solow Model and Kaldor growth models.
Unit II Growth Models-II
Technological progress - embodied and disembodied technical progress, Hicks, Harrod and
Solow. Elements of Endogenous Growth – the Rudimentary A-K Model.
Unit III. Classical and Keynesian Macroeconomic Thought

Keynes vs. the Classics – Aggregate Demand and Aggregate Supply, Underemployment
Equilibrium and Wage Price Flexibility. Monetarists and Friedman’s Reformulation of
Quantity Theory, Fiscal and Monetary Policy: Monetarists vs. Keynesians,
Unit IV. New Classical and New Keynesian Macroeconomic Thought

The new classical critique of micro foundations, the new classical approaches- the; Policy
implications of new classical approach — empirical evidence. The New Classical View of
Macroeconomics and the Keynesian Countercritique. The New Keynesian Economics with
reference to the Basic Features of Real Business Cycle Models, the Sticky Price Model.
Unit V. Macroeconomic Policy

The Goals of Macroeconomic Policy and of Policymakers, the Budget and Automatic Fiscal
Stabilisers, the Crowding –Out hypothesis and the Crowding – in controversy. Government
debt and Ricardian equivalence. Meaning, Scope and Objectives of Monetary Policy, the
monetary policy making process , the Transmission Mechanism of Monetary Policy, Rules vs.
Discretion in Monetary Policy, Implications of Targeting a monetary aggregates and the
Interest Rate. Limits to Monetary Policy
Basic Reading List

1. Barro J Robert and Sala- i-Martin , Economic Growth,the MIT Press
2. Levacic R and A Rebbman, Macroeconomics: An Introduction to Keynesian
Neoclassical controversies, Macmillan Publicaton, 2nd edition , 2003
3. Richard T. Froyen (2005): Macroeconomics, 2nd Edition, Pearson Education Asia, New
Delhi.
Additional reading List
1. N. Gregory Mankiw (2010): Macroeconomics, 7th edition, Cengage Learning India
Private Limited, New Delhi
2. Shapiro, E. (1996), Macroeconomic Analysis, Galgotia Publications, New Delhi

Semester IV
C410: INTRODUCTORY ECONOMETRICS (6 Credits)
Course Description
This course provides a comprehensive introduction to basic econometric concepts and
techniques. It covers statistical concepts of hypothesis testing, estimation and diagnostic
testing of simple and multiple regression models. The course also covers the consequences of
and tests for misspecification of regression models.
Unit I. Elements of Statistical Inference
Concepts of population, samples, parameter and statistic; Estimation theory: Point Estimation-
small sample properties, asymptotic properties, Interval Estimation, Estimation of population
parameters using Least-Squares and Maximum Likelihood methods.
Testing of hypotheses:Null vs Alternative hypothesis, Simple and Composite hypotheses,
Procedure for testing of hypotheses; Type I and Type II errors; power of a test; level of
significance, Confidence Interval, confidence limits, Degrees of freedom.
Unit II. Simple Linear Regression Models

Two-variable linear regression model, Assumptions under CLRM, OLS method of estimation,
Importance of stochastic error term, Properties of an estimator, Variance and covariance of the
OLS estimator, Gauss-Markov theorem.
Unit III. Multiple Regression Models

k-variable linear regression model, Least squares estimators, Properties , R2 and Adjusted
R2,ANOVA .
Unit IV. Regression with Dummy Variables

Dummy independent variables-dummy variable trap, Structural change Model, Interaction
effects, Seasonal analysis of time series, Piecewise linear regressions.
Unit V. Violations of Classical Assumptions
Multicollinearity: Sources, Consequences, Detection and Remedies; Heteroscedasticity- tests,
consequences, detection and solution; Autocorrelation-sources, consequences, detection and
remedial measures.
Basic Reading List
1. Gujarati D. N. Basic Econometrics. McGraw Hill, New Delhi.
2. Johnston J. Econometrics Methods, McGraw Hill
1. Kmenta J. Elements of Econometrics. University of Michigan Press
2. Maddala G. S. Econometrics Methods and Application. E. Elgar Pub
3. Richard J. Larsen and Morris L. Marx, An Introduction to Mathematical Statistics and its
Applications, Prentice Hall, 2011.
4. D. N. Gujarati and D.C. Porter, Essentials of Econometrics, McGraw Hill, 4th edition,
International Edition, 2009.

Semester IV
G404A: INDIAN ECONOMY-II (6 Credits)
Course Description
This course examines sector-specific polices and their impact in shaping trends in key
economic indicators in India. It highlights major policy debates and evaluates the Indian
empirical evidence. Given the rapid changes taking place in the country, the reading list will
have to be updated annually.
Unit I. Indian Public finance

Indian tax system, public expenditure, public debt, deficit and subsidies in the Indian economy.
Centre-state financial relation. Macroeconomic stabilization: trade, fiscal, investment and monetary
policy issues and their impact.
Unit II. Policies and Performance in Agriculture Growth

Pre-Independent and post-independent agrarian structure, Agriculture growth and
productivity. Sustainable agricultural growth-concepts and constraints. Institutional set-up of land
system and land reforms, Green Revolution and technological changes. Capital formation in
agriculture; Food security, Agricultural pricing, Food Procurement and Public Distribution
System.
Unit-III Policies and Performance in Industry

Structure and composition of Industry– issues of concentration, large vs small industry– industrial
location. Small scale reservation policy. Trends and patterns of industrial growth.cottage industries;
performance of public sector, privatization, industrial sickness, Land acquisition, SEZ and
industrialisation foreign investment and competition policy, Industrial Policy, 1956 and
1991.Trends and performance in the development of service sector.
Unit- IV Resource mobilization and Planning in India

Evolution of economic planning in India; Economic Planning - Rationale, Features and
Objectives; Strategy of Planning, dynamics of five year plans in India; Broad achievements
and failures; Current Five Year Plan- Objectives, allocation, strategy and targets.
Unit V Odisha economy-An overview

A macro glance at Odisha economy; social sector in Odisha- Education, Health, and Nutrition.
Odisha Economy in relation to India and major states in recent decades, major issues in agriculture,
forest and water resources, mining, industry and service Sector.
Basic Reading List
1. Shankar Acharya, 2010, ―Macroeconomic Performance and Policies 2000-8, in Shankar

Acharya and Rakesh Mohan, editors, India’s Economy: Performances and Challenges:
Development and Participation, Oxford University Press.
2. Rakesh Mohan, 2010, ―India‘s Financial Sector and Monetary Policy Reforms,ǁ in Shankar
3. Pulapre Balakrishnan, Ramesh Golait and Pankaj Kumar, 2008, ―Agricultural Growth in
India Since 1991, RBI DEAP Study no. 27.
4. B.N. Goldar and S.C. Aggarwal, 2005, ―Trade Liberalisation and Price-Cost Margin in Indian
Industries, The Developing Economics, September.
5. Mishra and Puri(2015)-Indian Economy,Kalyani Pub,New Delhi
6. Odisha Economic Surveys various issues
7. Odisha Development Reports various issues

Semester IV
G404B: PUBLIC ECONOMICS (6 Credits)
Course Description
Public economics is the study of government policy from the points of view of economic
efficiency and equity. The paper deals with the nature of government intervention and its
implications for allocation, distribution and stabilization. Inherently, this study involves a
formal analysis of government taxation and expenditures. The subject encompasses a host of
topics including public goods, market failures and externalities. The paper is divided into two
sections, one dealing with the theory of public economics and the other with the Indian public
finances.
UNIT I. Public Finance and Public Goods

Meaning and scope of public finance, public finance vs. private finance, fiscal functions-
allocation, distribution and stabilisation role of government, public goods - pure and partial
public goods, private goods and merit goods, characteristics of public goods, rationale of
public provision of public goods, free rider problem, voluntary exchange theory and
Samuelson’s theory of public goods.
UNIT II. Externalities and Govt Policies

Definition and types of externalities, Externalities and efficiency, Internalisation of
externalities: corrective taxes and subsidies, Coase Theorem, significance of Coase theorem,
application of Coase theorem and pollution rights
UNIT III. Public Revenue

Tax and non tax revenue, direct and indirect taxes, effects of tax on production, distribution
and economic activities. Principles of taxation – Benefit theory, Ability to pay theory, Burden
of taxation: Neutrality in taxation, shifting and incidence of taxation, allocative and equity
aspect of taxation
Unit IV. Indian Public Finance-I

Features of Indian tax system, tax revenues of the central and state governments, direct and
indirect taxes levied by the state and centre, changing tax structure of India, Tax reforms since
1991: Chelliah Committee, Kelkar Committee reports, DTC,VAT and GST
Unit V. Indian Public Finance-II

Budgetary trend in India, trend of receipts and expenditures of Central Govt., Types of
deficits: budgetary deficit, fiscal deficit, revenue deficit and primary deficit, Public debt:
problems and issues, Fiscal federalism in India: Transfer of resources from centre to state-
trends and techniques, an evaluation of finance commission awards and federal financing,
suggestions to improve the federal finance relation in India
Basic Readings
1. Musgrave, R.A, The Theory of Public Finance, McGraw Hill
2. Atkinson and Stiglitz. Lectures on Public Economics,
3. Ghosh Ambar and Ghosh Chandana Economics of the Public Sector, PHI
Additional Readings
1. Herber B. P. Modern Public Finance
2. Due, John F and Friedlander, Government Finance.
3. Goode R. Government Finance in Developing Countries. Tata McGraw Hill.
Semester IV
SE403A: Odisha Budget (2 Credits)
Full Mark 50 (End Semester Evaluation)
Unit I. Basic Concepts

Basic concepts of budget, components of budget, classification of expenditures- revenue and
capital expenditures, plan and non-plan; sources of receipts- revenue and capital receipts, tax
and non-tax revenues, direct and indirect taxes. Types of deficits: budgetary deficit, fiscal
deficit, revenue deficit and primary deficit.
Unit II. The Budget-making Exercise in Odisha:

Pre-budget consultation, Role of legislatures in Budget Preparation, Budget cycle, Budget
institutions, Critical issues in Budget Making in Odisha, Technicalities of Budget, Glimpse of
some important Budget Documents, Advocating for a Participatory Budgeting, Role of media
and civil society organisations in Participatory Budgeting, factors impeding the participatory
budgeting.
Unit III. Analysis of the Recent Odisha Budget

Annual Financial Statement, Demand for grants, Agricultural Budget, Statement of Odisha
budget as per FRBM Act, trends and patterns of expenditure management, Public debt
management, Developmental implications of the recent budget.
Basic Readings
1. Rosen Harvey, Public Finance. McGraw Hill
2. Budget Training Module for the Civil Society Organizations, CYSD,
http://www.obac.in/Training%20module%20on%20State%20Budget%20and%20Its%20Process.pdf
3. The recent Odisha Budget,
http://www.odisha.gov.in/finance/Budget.asp?GL=Budget&PL=1&TL=1
Additional Readings
2. Atkinson and Stiglitz, Lectures on Public Economics,

Semester IV
SE403B: TRIBAL ECONOMY OF ODISHA (2 Credits)
Unit–I: Understanding Tribes and Tribal Economy:

Concept and definition of tribes in Indian Context , Geographical distribution of Tribes in
India and Odisha; Scheduled Areas: constitutional provisions; Tribal Economy:
Characteristics of Tribal Economies, Hunting-gathering economy, Shifting Cultivation, Plain
land cultivations, mining and wage labour, Animal Husbandry and other avenues of
Livelihood. Land Alienation and Agrarian Issues, Illiteracy and Exploitation
Forests and Tribal Economy – Forest Right Act, 2006; Animal Husbandry and other avenues
of livelihood; Tribal Markets – Traditional and Modern; Poverty and Indebtedness, Bonded
Labour and Land alienation; Trends of Economic Exploitation; Development induced
Displacement and Rehabilitation: Policy and issues; Changing Nature of Tribal Economy,
Economic Transformation and its impact on tribal Society.
Unit–II: Socio-cultural Development: Relevance of Socio-cultural dimension in
development; Education and Literacy – Trends, Issues and Initiatives; Health, Sanitation and
food security – Indigenous and emerging practices, hunger and malnutrition of tribals;
Relevance of Dynamics of Tribal Culture Problems in Development Folklore, Dormitory,
System, Religious Practices and Festivals; Important socio-cultural Institutions and
development birth rites, death rites and marriage practices; Promotion of Dance, music, arts
and crafts of tribals.
Unit–III: Planning and Development Interventions: Tribal Development during Five Year
Plans – SMPT Block, TD Block, Tribal Development Agency, Sub-Plan Approach, MADA,
and Cluster Approach – PTGs and Micro Projects. Relevance of different Approaches to
Tribal Development – Nehru, Elwin. Three tier Panchayatiraj System – 73rd Amendment and
PESA Act; Emerging Development Initiatives – Role of NGOs, Women Empowerment
through Micro Finance and SHGs – Liquor Free Movement; Obstacles to the Tribal
Development.
Reading List
1. Behera, K.K. (2003) : Organization and Management of Tribal Markets, Independent
Publishing Company, New-Delhi.
2. Gomango, Giridhar (1992) : Constitutional provisions for Scheduled Castes and Scheduled
Tribes, Himalaya Publishing House, Bombay.
3. Govt. of Orissa (1975): Sub-Plans for Tribal Regions of Orissa, 1974-75 (Draft),
Bhubaneswar.
4. Govt. of Orissa (1994): Tribal Education in Orissa in the context of Education for all by 2000
AD, Bhubaneswar.
5. Govt. of Orissa (1997): Report on the Annual Administration of Scheduled Areas in Orissa for
1995-96. Welfare Department, Govt. of Orissa.
6. Mohapatro, P.C. (1987) : Economic Development of Tribal India. Ashish Publishing House,
New Delhi.
7. Padhy S.C. (1997) : Tribals of South Orissa Problems and Prospects, B.U.
8. Patel, M.L. (Ed) (1972) : Agro-Economic problems of Tribal India. Progress Publishers,
Bhopal.
9. Sahu, N.C. (1986) : Economics of Forest Resources: Problems and Policies in a regional
economy. B.R. Publishing corporation, New Delhi.
10. Sharma, B.D. (1984) : Planning for Tribal Development. Prachi Prakashan, New Delhi.

Semester V
C511: INDIAN ECONOMY-I (6 Credits)
Course Description
Using appropriate analytical frameworks, this course reviews major trends in economic
indicators and policy debates in India in the post-Independence period, with particular
emphasis on paradigm shifts and turning points. Given the rapid changes taking place in
India, the reading list will have to be updated annually.
Unit I. Economic Development since Independence

Major features of Indian Economy at independence and characteristics of economic
underdevelopment of India (with reference to colonial rule of India); Trend in National
Income and Percapita income; Sectoral composition (output and employment) - Primary,
Secondary and Tertiary. Development under different policy regimes—goals, constraints,
institutions and policy framework;
Unit II. Population and Human Development

Broad demographic features — Population size and growth rates, Sex and age composition,
occupational distribution. Density of population, Urbanisation and economic growth in India.
Population growth as a factor of economic development, National Population Policy, Progress
of human development in India. Development of education in India, health and family welfare
and the development of health infrastructure.
Unit III. Structural change of post independent Indian economy

Growth, Distribution and trends of national income, sectoral distribution. An assessment of
performance—sustainability and regional contrasts; structural change, savings and
investment. Trends, measurement and policies in poverty; Inequality-measurement, causes
and effects, Unemployment-types, causes and employment policies in India.
Unit IV. Indian economy in post reform period

Background of Indian Economic Reforms – New Economic Policy; Redefining India’s
development strategy; Changing role of state and market, Industrial Policy,
Disinvestment policy and privatization; Financial sector reforms including banking
reform.
UNIT-V External sector

Composition and direction of Foreign Trade. External sector reforms: Foreign Exchange
market, Balance of Payments, reform, convertibility, export-import policy, foreign direct
investment; Post-reform agricultural performance and its crisis; Appraisal of Indian Economic
reform.
Basic Reading List
1. Jean Dreze and Amartya Sen, Jean Dreze and Amartya Sen, 2013. An Uncertain Glory:
India and its Contradictions, Princeton University Press.
2. Pulapre Balakrishnan, 2007, The Recovery of India: Economic Growth in the Nehru Era,
Economic and Political Weekly, November.

3. Rakesh Mohan, 2008, ―Growth Record of Indian Economy: 1950-2008. A Story of
Sustained Savings and Investment, Economic and Political Weekly, May.
4. Uma Kapila,2010, India’s economic Development since 1947, Academic Foundation,
5. Himanshu, 2010, Towards New Poverty Lines for India, Economic and Political Weekly,
January.
6. Mishra and Puri (2015)-Indian Economy, Kalyani ,New Delhi

Semester V
C512: DEVELOPMENT ECONOMICS-I (6 Credits)
Course Description
This is the first part of a two-part course on economic development. The course begins
with a discussion of alternative conceptions of development and their justification.
It then proceeds to aggregate models of growth and cross-national comparisons of
the growth experience that can help evaluate these models. The axiomatic basis for
inequality measurement is used to develop measures of inequality and connections
between growth and inequality are explored. The course ends by linking political
institutions to growth and inequality by discussing the role of the state in economic
development and the informational and incentive problems that affect state governance.
Unit I. Conceptions of Development

Economic growth and development, Factors affecting economic development, Obstacles
to economic development, Indicators of economic development - National income, Per
capita income; Basic needs approach, PQLI, HDI, GDI, Capital formation and economic
development. Alternative measures of development, documenting the international
variation in these measures, comparing development trajectories across nations and within
them.
Unit II. Theories of Economic Development

Classical theory (Smith, Ricardo, Malthus), Marxian- theory of Social change, immutable
laws, Crisis in capitalism, Schumpeterian theory of capitalist development, Rostow’s
stages of economic growth
Unit III. Poverty and Inequality: Definitions, Measures and Mechanisms

Understanding Prosperity and Poverty: Geography, Institutions, and the Reversal of
Fortune, Measuring Poverty, Inequality axioms; a comparison of commonly used
inequality measures; connections between inequality and development; poverty
measurement; characteristics of the poor; mechanisms that generate poverty traps and path
dependence of growth processes
Unit IV. Approaches to Economic Development

Partial theories of growth and development: Vicious circle of Poverty, Circular causation,
Theory of unlimited supply and labour, big push, balanced growth, unbalanced growth,
critical minimum effort, Dualism-Technical.
Unit V. Political Institutions and the Functioning of the State

Public Goods and Economic Development, State ownership and regulation, government
failures, Corruption and Development, Developmental Plan ; The allocation of resources,
alternative institutional trajectories and their relationship with economic performance.
Basic Reading List:

Debraj Ray (2009): Development Economics, Oxford University Press.
Partha Dasgupta (2007): Economics, A Very Short Introduction, Oxford University Press.
Abhijit Banerjee, Roland Benabou and DilipMookerjee (2006): Understanding Poverty,
Oxford University Press.

Daron Acemoglu and James Robinson (2006): Economic Origins of Dictatorship and
Democracy, Cambridge University Press.
Robert Putnam (1994): Making Democracy Work: Civic Traditions in Modern Italy,
Princeton University Press.
Amartya Sen (2000): Development as Freedom, OUP

Semester V
Discipline Specific Elective
D501A: PUBLIC ECONOMICS (6 Credits)
Course Description
Public economics is the study of government policy from the points of view of economic
efficiency and equity. The paper deals with the nature of government intervention and its
implications for allocation, distribution and stabilization. Inherently, this study involves a
formal analysis of government taxation and expenditures. The subject encompasses a host of
topics including public goods, market failures and externalities. The paper is divided into two
sections, one dealing with the theory of public economics and the other with the Indian public
finances.
UNIT I. Public Finance and Public Goods

Meaning and scope of public finance, public finance vs. private finance, fiscal functions-
allocation, distribution and stabilisation role of government, public goods - pure and partial
public goods, private goods and merit goods, characteristics of public goods, rationale of
public provision of public goods, free rider problem, voluntary exchange theory and
Samuelson’s theory of public goods.
UNIT II. Externalities and Govt. Policies

Definition and types of externalities, Externalities and efficiency, Internalisation of
externalities: corrective taxes and subsidies, Coase Theorem, significance of Coase theorem,
application of Coase theorem and pollution rights
UNIT III. Public Revenue

Tax and non tax revenue, direct and indirect taxes, effects of tax on production, distribution
and economic activities. Principles of taxation – Benefit theory, Ability to pay theory, Burden
of taxation: Neutrality in taxation, shifting and incidence of taxation, allocative and equity
aspect of taxation
Unit IV. Indian Public Finance-I

Features of Indian tax system, tax revenues of the central and state governments, direct and
indirect taxes levied by the state and centre, changing tax structure of India, Tax reforms since
1991: Chelliah Committee, Kelkar Committee reports, DTC,VAT and GST
Unit V. Indian Public Finance-II

Budgetary trend in India, trend of receipts and expenditures of Central Govt., Types of
deficits: budgetary deficit, fiscal deficit, revenue deficit and primary deficit, Public debt:
problems and issues, Fiscal federalism in India: Transfer of resources from centre to state-
trends and techniques, an evaluation of finance commission awards and federal financing,
suggestions to improve the federal finance relation in India
Basic Readings
4. Musgrave, R.A, The Theory of Public Finance, McGraw Hill
5. Atkinson and Stiglitz. Lectures on Public Economics,
6. Ghosh Ambar and Ghosh Chandana Economics of the Public Sector, PHI
Additional Readings
2. Herber B. P. Modern Public Finance
4. Goode R. Government Finance in Developing Countries. Tata McGraw Hill.
5. Houghton J. M. The Public Finance: Selected Reading, Penguin
6. Mathew T. Economics of Public Expenditure, Vora

Semester V
D501B: APPLIED ECONOMETRICS (6 Credits)
Course Description
The aim of this course is to provide a foundation in applied econometric analysis and develop
skills required for empirical research in economics. Topics include specification and selection
of regression models, dynamic econometric models, advanced methods in regression analysis
.Since the emphasis is on application of methods, this course requires understanding of
econometric software and computing skills.
Unit I. Empirical Econometric Research and Specification

Model Selection Criteria, The nature and sources of data for empirical economic analysis,
Measurement scales of variables, Normality Assumption, Hypothesis formulation and
inference about the parameter , Role of Lags in Regression, Importance of Stochastic error
term, Error Specification Bias.
Unit II. Advanced Topics in Regression Analysis

Distributed lag models- Koyck’s geometric lag, Almon’s polynomial lag, Adaptive
expectation models, Partial adjustment Model and Nerlove Hypothesis, Permanent Income
Hypothesis, Autoregressive models- estimation by using instrumental variables, Detecting
autocorrelation in autoregressive models- Durbin’s h test.
Unit III. Simultaneous Equation Models

Structural Equation and Reduced form Equation, Simultaneous equation bias and
inconsistency of OLS estimators, Identification- Exact and Over Identification, rank and order
conditions of Identification, Estimation- Recursive system, ILS, 2SLS, and 3SLS methods.
Unit IV. Panel data Methods
Use of Panel Data, Sources and types of panel data, Simple panel data methods, Two period
panel data analysis, Advanced panel data methods- Fixed effects model, Random effects
model.
Unit V. Introduction to Econometric Software Package
Calculating average growth rates, compound growth rates, correlation, and descriptive
statistics using Microsoft Excel, OLS regression, Multiple Regression, Autocorrelation,
drawing histogram, bar diagram and line diagram using E-views and STATA.
Basic Reading List:

1. Gujarati D. N. (1995), Basic Econometrics (2nd Edition) McGraw Hill, New Delhi
2. An Introduction to Applied Econometrics- a time series approach: Kerry Patterson,
Palgrave Houndmills, Basingstoke, Hampshire and New York.
1. Jack Johnston and John Dinardo, Econometric Methods, McGraw-Hill International
Editions, Singapore, 1997
2. Jeffrey M. Wooldridge, Econometrics, CENGAGE learning, India Edition, 2009
3. Damodar Gujarati, Econometrics by Example, Palgrave Macmillan, 2011.
4. Brooks Chris (2nd edition), 2008, Introductory Econometrics for finance, Cambridge
University press
5. Walter Enders, Applied Econometric Time Series, Wiley India (P) Ltd, New Delhi
2004

Semester V
D502A: MONEY AND FINANCIAL MARKETS (6 Credits)
Course Description
This course exposes students to the theory and functioning of the monetary and financial
Sectors of the economy. It highlights the organization, structure and role of financial markets
and institutions. It also discusses interest rates, monetary management and Instruments of
monetary control. Financial and banking sector reforms and monetary Policy with special
reference to India are also covered.
Unit I. Money
Concept, functions, measurement; theories of money supply determination- Classical and
Keynesian approaches to demand for money, Post-Keynesian approaches to demand for
money — Patinkin and the Real Balance Effect; ; RBI approach to money supply; High
powered money and money multiplier: Money supply in an open economy.
Unit II. Financial Institutions, Markets, Instruments and Financial Innovations

Role of financial markets and institutions; problem of asymmetric information –adverse
selection and moral hazard; financial crises.Structure of money market and capital market —
Call money market. Treasury bill market, Commercial bill market including commercial paper
and certificate of deposits,Government securities market, Primary and secondary market for
securities.
Unit III. Interest Rates

Determination; sources of interest rate differentials; theories of term structure of interest rates-
Expectation theory, liquidity premium theory ,segmented market theory; interest rates in
India.
Unit IV. Commercial Banking System

Meaning and types; Functions of commercial banks; the process of credit creation and its
limitations; Balance sheet and portfolio management, Indian banking system: Changing role
and structure; banking sector reforms.
Unit V. Central Banking and Monetary Policy

Functions of a central bank; Quantitative and qualitative methods of credit control, monetary
policy: objectives, indicators and instruments of monetary control, monetary management in
an open economy, current monetary policy of India, liquidity adjustment facility (LAF), MSF,
limitations of monetary policy.
Basic Reading List
1. F. S. Mishkin and S. G. Eakins, Financial Markets and Institutions, Pearson Education, 6th
edition, 2009.
2. M. R. Baye and D. W. Jansen, Money, Banking and Financial Markets, AITBS,1996.
1. F. J. Fabozzi, F. Modigliani, F. J. Jones, M. G. Ferri, Foundations of Financial Markets and
Institutions, Pearson Education, 3rd edition, 2009.
2. Rakesh Mohan, Growth with Financial Stability- Central Banking in an Emerging Market,
Oxford University Press, 2011.

3. L. M. Bhole and J. Mahukud, Financial Institutions and Markets, Tata McGraw Hill, 5th edition,
2011.
4. M. Y. Khan, Indian Financial System, Tata McGraw Hill, 7th edition, 2011.
5. N. Jadhav, Monetary Policy, Financial Stability and Central Banking in India, Macmillan, 2006.
6. R.B.I. Bulletin, Annual Report and Report on Currency and Finance (latest).

Semester V
D502B: GAME THEORY (6 Credits)
Course Description
Game theory is an integral part of modern economic analysis. This paper introduces the
students to elementary game theory under complete information. This course introduces the
basic concepts of game theory in a way that allows students to use them in solving simple
problems. The course will deal with the solution concepts for normal form and extensive form
games along with a variety of economic applications.
Unit I. Normal form games

Concepts, importance and application of game theory. Types of game, the pay of matrix of a
game, two person zero sum and constant – sum game, pure strategy and saddle point
solutions, dominant and dominated strategies, concept of Nash equilibrium, method of
dominance and mixed strategies.
UNIT II. Application of Normal form of Game

Cournot Duopoly model. Bertrand model, The Commons Problem, Prisoner Dillema, Natural
Monopoly and Bankruptcy laws.
Unit III. Extensive form games with perfect information

The game tree; strategies; subgame perfection; backward induction in finite games;
Commitment; bargaining.
Unit IV. Repeated Games

Finitely repeated games and backward induction; infinitely repeated games; history dependent
strategies; one-step deviation property; the repeated prisoners‘ dilemma; idea of folk theorem.
Unit V. Games with incomplete information
Simultaneous move games with incomplete information (Bayesian games). Strategies;

Bayesian Nash equilibrium; auctions; other applications Extensive form games with imperfect
information
Basic Reading List

1. Martin J. Osborne, An Introduction to Game Theory, Oxford University Press, New
Delhi, 2004.
2. Prajit K Dutta, Strategies and Games: Theory and Practice, MIT Press

Semester V
SE504A: ODISHA ECONOMY (2 Credits)
UNIT-I: Agriculture and Industrial Sector:

Odisha economy-A macro glance, Agriculture Sector: Land use pattern, production and
productivity of major crops, cropping intensity, input use, irrigation, production and
availability of livestock, fisheries resources, forest and environment, Issues in Agriculture,
Recent State agricultural policy.
Industrial sector- Manufacturing: Large Scale Industries, MSME, Handicrafts and Cottage
Industries, export of industrial products, state industrial policy resolution. Major state level
institutions; Mining and Quarrying: Deposits, Production and Exports of Minerals.
UNIT II Service Sector and Infrastructure:

Service Sector: Institutional Finance, Construction, Tourism, Trade, Hotel and Restaurant
Industry, Policies for Promotion of Tourism and Hospitality Industry; Infrastructure: Power,
Transport, Mail and Telecommunication, Science and Technology.
UNIT III Human development and Social Sector

Human development and poverty: Poverty: Dimensions, trends and incidence, Literacy
Levels, Health Conditions, Regional Disparity and Development Approach for Odisha;
Social Sector: Education, Health and Family Welfare, Water Supply and Sanitation, Welfare
Programmes, Women's Development and Welfare, Welfare of Scheduled Castes and
Scheduled Tribes.
Reading List
1. Economic Survey (Annual), Planning and Coordination Department, Directorate of
Economics and Statistics, Government of Odisha.
2. Orissa Development Report, Planning Commission
3. Orissa Human Development Report, UNDP
4. Handbook on Odisha Economy (eds) S C. Panda, P. B. Nayak and P. Pattnaik. Oxford
University Press, New Delhi.

Semester V
SE504B: TOURISM INDUSTRY IN ODISHA (2 Credits)
Unit I: Basics of Tourism

Tourism, The relationship between leisure, recreation and tourism, Classification of tourism
in terms of destination visited – International tourism and domestic tourism, Purpose of Visit
– Cultural tourism, Business Tourism, VFR, Pilgrimage tourism, Sustainable and Eco-
tourism- Definition of Eco tourism, Benefits and Importance of Eco tourism, Definition and
bodies promoting sustainable tourism, Principles of Sustainable tourism, Difference between
Mass and Green Tourism.
Unit II: Barriers to the growth of tourism in Odisha

Factors existing at the destination: terrorism, & political and social environment, Factors
barring a potential tourist from travelling : time, cost, and social barriers. Domestic tourism-
Definition and Significance of Domestic tourism, Difference between the domestic tourist
and International tourist, Positive and Negative impacts of tourism- Economic Impacts,
Socio-culture Impacts, Environmental impacts.
Unit III: Hospitality, Transportation Facilities and Tourism Product of Odisha

Types of Hotels, Leading Hotel chains, Budget Hotels, Heritage Hotels; Transportation
Sector: Roadways, National and State Highways, Express Highways, Railways, Airways:
Domestic Airlines operating in Odisha, Waterways.
Tourism Product of Odisha: Natural Resources: Wildlife Sanctuaries, National Parks and
Natural Reserves in Odisha, Popular Tourist Resorts, Hill Stations: Beaches and Islands,
waterfall, Pilgrimage Destinations, Monuments, Historical Monuments, Handicrafts, Cuisines.
Basic Readings:
1. Charles R. Goeldner, J. R. Brent Ritchie: Tourism: Principles, Practices, Philosophies,
12th Edition, September 2011, 2012, Wiley publications.
2. Weaver David, Laura lawton: Tourism Management 5th edition, Wiley Publications
Weaver David : Eco-tourism, 2nd edition, Wiley Publications.
Additional Readings:
1. Ahmad, Aizaz: General Geography of India, NCERT, New Delhi
2. Goh Cheong Long: An Economics Atlas of India

Semester VI
C613: INDIAN ECONOMY-II (6 Credits)
Course Description
This course examines sector-specific polices and their impact in shaping trends in key
economic indicators in India. It highlights major policy debates and evaluates the Indian
empirical evidence. Given the rapid changes taking place in the country, the reading list will
have to be updated annually.
Unit I. Indian Public finance

Indian tax system, public expenditure, public debt, deficit and subsidies in the Indian economy.
Centre-state financial relation. Macroeconomic stabilization: trade, fiscal, investment and monetary
policy issues and their impact.
Unit II. Policies and Performance in Agriculture Growth

Pre-Independent and post-independent agrarian structure, Agriculture growth and
productivity. Sustainable agricultural growth-concepts and constraints. Institutional set-up of
land system and land reforms, Green Revolution and technological changes. Capital formation
in agriculture; Food security, Agricultural pricing, Food Procurement and Public Distribution
System.
Unit-III Policies and Performance in Industry

Structure and composition of Industry– issues of concentration, large vs small industry–
industrial location. Small scale reservation policy. Trends and patterns of industrial
growth.cottage industries; performance of public sector, privatization, industrial sickness,
Land acquisition, SEZ and industrialisation foreign investment and competition policy,
Industrial Policy, 1956 and 1991.Trends and performance in the development of service
sector.
Unit- IV Resource mobilization and Planning in India
Evolution of economic planning in India; Economic Planning - Rationale, Features and
Objectives; Strategy of Planning, dynamics of five year plans in India; Broad achievements
and failures; Current Five Year Plan- Objectives, allocation, strategy and targets.
Unit V Odisha economy-An overview

A macro glance at Odisha economy; social sector in Odisha- Education, Health, and Nutrition. Odisha
Economy in relation to India and major states in recent decades, major issues in agriculture, forest and
water resources, mining, industry and service Sector.
Basic Reading List
1. Shankar Acharya, 2010, ―Macroeconomic Performance and Policies 2000-8, in Shankar

2. Rakesh Mohan, 2010, ―India‘s Financial Sector and Monetary Policy Reforms,ǁ in Shankar
3. Pulapre Balakrishnan, Ramesh Golait and Pankaj Kumar, 2008, ―Agricultural Growth in India
Since 1991, RBI DEAP Study no. 27.
4. B.N. Goldar and S.C. Aggarwal, 2005, ―Trade Liberalisation and Price-Cost Margin in Indian
Industries, The Developing Economics, September.
5. Mishra and Puri(2015)-Indian Economy,Kalyani Pub,New Delhi
6. Odisha Economic Surveys various issues
7. Odisha Development Reports various issues

Semester VI
C614: DEVELOPMENT ECONOMICS-II (6 Credits)
Course Description
This is the second module of the economic development sequence. It begins with basic
demographic concepts and their evolution during the process of development. The structure
of markets and contracts is linked to the particular problems of enforcement experienced in
poor countries. The governance of communities and organizations is studied and this is
then linked to questions of sustainable growth. The course ends with reflections on the role
of globalization and increased international dependence on the process of development.
Unit I. Population and Development

Demographic concepts: birth and death rates, age structure; theory of demographic transitions
during the process of development; Facts about world’s population; the optimum
population. R o l e o f p o p u l a t i o n i n e c o n o m i c d e v e l o p m e n t .
Unit II. Land, Labor and Credit Markets

The distribution of land ownership; land reform and its effects on productivity;
nutrition and labor productivity; informational problems and credit; microfinance; inter-
linkages between rural factor markets.
Unit III. Choice of Techniques
The choice of technology; Appropriate technology and employment in LDCs; The capital
intensity of techniques in developing countries;; Issues of good governance. Project
Appraisal- Cost Benefit Analysis.
Unit IV. Environment and Sustainable Development
Environment- Economy linkage; Environment as a necessity and luxury; Population-
environment linkage. Allocation problem; Market failure for environmental goods;
environment as a public good, Common Property Resources, Property right approach to
environmental problem-. Prevention, control and abatement of pollution. Concept and
indicators of sustainable development; environmental externalities and state regulation of the
environment; economic activity and climate change.
Unit V. International aspects of Economic Development
International trade as an engine of growth; Static and dynamic gains from trade; Prebisch,
Singer and Myrdal theses vs. free trade; Export-led growth; Tariffs and effective protection;
WTO and developing countries. External resources; FDI; Aid vs. Trade.
Basic Reading List:
1. Debraj Ray (2009): Development Economics, Oxford University Press.
2. Partha Dasgupta (2007): Economics, A Very Short Introduction, Oxford University
Press.
3. Abhijit Banerjee, Roland Benabou and DilipMookerjee (2006): Understanding
Poverty, Oxford University Press.
1. Daron Acemoglu and James Robinson (2006): Economic Origins of Dictatorship and
Democracy, Cambridge University Press.
2. Robert Putnam (1994): Making Democracy Work: Civic Traditions in Modern Italy,
Princeton University Press.
3. Amartya Sen (2000): Development as Freedom, OUP.
Semester VI
D603A: INTERNATIONAL ECONOMICS (6 Credits)
Unit I. Introduction and Theories of International Trade
Importance of the study of International Economics; Inter-regional and international trade;

Theories of absolute advantage, comparative advantage and opportunity cost; Factor
Endowments and Heckscher-Ohlin theory of trade — its main features, assumptions and
limitations, Empirical studies - Leontief Paradox, Rybzynski effect, Factor price equalization
and Stolper-Samuelson Theorem. The Specific factors model
Unit II. New Theories of International Trade:

Gains from trade, Doctrine of reciprocal demand — its importance and limitations in the
theory of trade. Intra-Industry Trade, Imperfect Competition and Increasing Returns to Scale
as determinants of Trade and gains from trade, Effect of changes in tastes, per capita income
and technology on Trade and gains from trade, Kravis Theory of Availability, Linder’s theory,
Posner’s Imitation Gap theory, Vernon’s Product Cycle Theory, Kenen’s theory of Human
capital
Unit III. International Trade Policy

Free trade versus Protection, Trade restrictions: Tariff. Partial Equilibrium analysis of Tariff,
Theories of Tariff structure, Import Quotas and other Non-tariff barriers, Economic
Integration: Customs Union and Free Trade Areas, WTO and India.
Unit IV. Exchange Rate

Concept and Types of Exchange Rate (bilateral vs trade-weighted exchange rate, cross
exchange rate, spot, forward, futures), Demand for and Supply of foreign exchange, Exchange
Rate Determination: Trade or Elasticity Approach, Purchasing-Power Parity Theory, The
Monetary Model to Exchange Rates, Fixed versus Flexible exchange rate.
Unit V. Balance of Payments

Concepts and components of balance of trade and balance of payments; Equilibrium and
disequilibrium in balance of payments; Consequences of disequilibrium in balance of
payments; Various measures to correct deficit in the balance of payments; International
Monetary System, IBRD, IMF, international monetary systems; financial globalization and
financial crises.
Basic Reading List:

1. Dominick Salvatore, International Economics: Trade and Finance, John Wiley
International Student Edition, 10th edition, 2011
2. Paul Krugman, Maurice Obstfeld, and Marc Melitz, International Economics: Theory and
Policy, Addison-Wesley (Pearson Education Indian Edition), 9th edition, 2012.

Semester VI
D603B: FINANCIAL ECONOMICS (6 Credits)
Unit I. Investment Theory and Structure of Interest rates

Introduction to financial economics, Time Value of Money: Future Value, Present Value,
Future value of an annuity, Present value of annuity, Present rate of perpetuity. Investment
Criteria: Net Present Value, Benefit Cost Ratio, Internal Rate of Return, Modified Internal
Rate of Return.
Unit II. Valuation of Bonds and Securities

Fundamentals of Valuation of Securities: Valuation of Bonds and Stocks; Bond Yield, Yield
to Maturity. Equity Valuation: Dividend Discount Model, The P/E Ratio Approach;
Irrelevance of Dividends: Modigliani and Miller Hypothesis.
UNIT III. Risk and Return

Types of risk, Historical returns and Risk, computing historical returns, average annual
returns, variance of returns, Measurement of Risk and Return of an asset, Measurement of
Risk and Return of a Portfolio, Determinants of Beta, Risk-Return trade off.
UNIT IV. Cost of Capital and Capital Asset Pricing Model

The Cost of Capital: Debt and equity; Cost of Debt, Cost of Preference Capital and Equity
Capital. The capital market line; the capital asset pricing model; the beta of an asset and of a
portfolio; security market line; use of the CAPM model in investment analysis and as a
pricing formula.
UNIT V. Derivative Markets

An introduction to financial derivatives: Types and uses of derivatives; Forward Contracts:
determination of forward prices, Futures Contract: theories of future prices- the cost of carry
model, the expectation model, capital asset pricing model. Relation between Spot and Future
Prices, forward vs future contract, Hedging in Futures; Options: types, value of an option, the
Pay-Offs from Buying and Selling of Options; the Put Call Parity Theorem; Binomial option
pricing model (BOPM) and Black-Scholes option pricing model.
Basic Reading List
1. L. M. Bhole and J. Mahukud, Financial Institutions and Markets, Tata McGraw Hill, 5th edition,
2011.
th
2. Hull, John C., Options, Futures and Other Derivatives, Pearson Education, 6 edition,
2005.
1. David G. Luenberger, Investment Science, Oxford University Press, USA, 1997.
2. Thomas E. Copeland, J. Fred Weston and Kuldeep Shastri, Financial Theory and
Corporate Policy, Prentice Hall, 4th edition, 2003.
3. Richard A. Brealey and Stewart C. Myers, Principles of Corporate Finance, McGraw-
Hill, 7th edition, 2002.
4. Stephen A. Ross, Randolph W. Westerfield and Bradford D. Jordan, Fundamentals of
Corporate Finance. McGraw-Hill, 7th edition, 2005.

Semester VI
D603C: ECONOMICS OF SOCIAL SECTOR (6 Credits)
Course Description
This course provides a microeconomic framework to analyze, among other things, individual
choice in the demand for health and education, government intervention and aspects of
inequity and discrimination in both sectors. It also gives an overview of health and education
in India.
Unit I. Role of Health and Education in Human Development

Health and education outcomes and their relationship with macroeconomic performance.
Importance in poverty alleviation, Social Development and Deprivation. Human Development
and Deprivation - different indices and their components: Human Development : evolution
and conceptual foundation – methodology for building the Human Development Index (HDI)-
other related measures: Human Poverty Index (HPA), Gender Related Development Index
(GDI), Gender Empowerment Measure (GEM) associated problems of measurement,
components of different development indices: outcome indices and , process indices
Unit II. Economics of Education and Health

Determinants of demand for education, Costs and benefits of education. Determinants of
Health , microeconomic Foundations of Health Economics, Demand for health; uncertainty
and health insurance market; Health outcomes; health systems.
Unit III. Evaluation of Health Programs

World health organisation: function and standards. Economic dimensions of health care; cost
effectiveness and cost-benefit analysis; burden of disease. Health financing, alternative
insurance mechanisms; market failure and rationale for public intervention; equity and
inequality.
Unit IV. Education : Investment on human Capital.

Investment in Human Capital, Rate of return to education: private and social; quality of
education; signaling or human capital; theories of discrimination; gender and caste
discrimination in India.
Unit V Education and Health Sector in India: an over view

Literacy rates, school participation, school quality measures. Education policies, Health
planning and policy in India. Social security measures. Appraisal of health care financing
Health planning and policy in India.
Basic Reading List
1. William, Jack, Principles of Health Economics for Developing Countries, World Bank
Institute Development Studies, 1999
2. World Development Report, Investing in Health, The World Bank, 1993

3. McMahon, W.W.(1998): ‘Education and Growth in East Asia’, Economics of Education
Review, 17(2)
4. Human Development Reports, Technical Notes: UNDP-various issues
1. Ronald G., Ehrenberg and Robert S., Smith, Modern Labor Economics: Theory and Public
Policy, Addison Wesley, 2005.
2. Hurd, Michael and Arie Kapteyn.(2003): ‘Health, Wealth and the Role of Institutions’, The
Journal of Human Resources, 38(2)

Semester VI
D604: PROJECT (6 Credits)

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SYLLABUS FOR

B.A./B.Sc. (HONOURS) ECONOMICS

Effective from 2016-17

Ravenshaw University, Economics Dept. UG Syllabus under CBCS

Course Structure for B.A./B.Sc. (Honours) Economics

Ravenshaw University, Economics Dept. UG Syllabus under CBCS

B.A. (Hons) students to choose

Ability AE101 Environmental Science Compulsory

Ravenshaw University, Economics Dept. UG Syllabus under CBCS

Ravenshaw University, Economics Dept. UG Syllabus under CBCS

Ravenshaw University, Economics Dept. UG Syllabus under CBCS

Ravenshaw University, Economics Dept. UG Syllabus under CBCS

Unit I. Exploring the subject matter of Economics

Unit III. Household Behaviour and Consumer Choice

Unit IV. The Firm

Unit V. Market Structure

Ravenshaw University, Economics Dept. UG Syllabus under CBCS

Unit II. Functions of one real variable

Ravenshaw University, Economics Dept. UG Syllabus under CBCS

Unit I. Exploring the subject matter of Economics

Unit III. Household Behaviour and Consumer Choice

Unit IV. The Firm

Unit V. Market Structure

Ravenshaw University, Economics Dept. UG Syllabus under CBCS

Unit II: Natural Resources and Biodiversity

Unit III: Environmental Pollution, Impact and Management

Ravenshaw University, Economics Dept. UG Syllabus under CBCS

Unit I. Introduction to Macroeconomics and Basic Concepts

Unit III. Money

Unit IV. Inflation, Deflation, Depression and Stagflation

Unit III. Derivatives of Functions of several variables

Concavity and convexity, quasi-concavity and quasi-convexity, homogeneous and homothetic

Unit IV. Multi-variable optimization-I

Unit V. Multi-Variable Optimisation-II

Ravenshaw University, Economics Dept. UG Syllabus under CBCS

Ravenshaw University, Economics Dept. UG Syllabus under CBCS

Unit I. Introduction to Macroeconomics and Basic Concepts

Unit II. Measurement of Macroeconomic Variables

Unit III. Money

Unit IV. Inflation, Deflation, Depression and Stagflation

Ravenshaw University, Economics Dept. UG Syllabus under CBCS

The process of Communication; Language as a Tool of Communication; Levels of

Principles and Practices of Writing.

Comprehension; Art of Condensation; Note making; Summarizing; Paragraph Writing;

Ravenshaw University, Economics Dept. UG Syllabus under CBCS

Ravenshaw University, Economics Dept. UG Syllabus under CBCS

Ravenshaw University, Economics Dept. UG Syllabus under CBCS

Unit I. Consumer Theory I

Unit II. Consumer Theory II

Unit III. Production Theory

Unit IV. Cost Functions

Unit V. Profit Maximization

Basic Reading List

Unit I Consumption function and theories

Unit II Investment function and theories

Unit III IS-LM Approach

Unit IV Open Economy Models

Unit V Inflation, Unemployment and Expectations and Business Cycle

Basic Reading List

Unit I. Descriptive Statistics

Unit II. Correlation and Regression Analysis

Unit III. Elementary Probability Theory

Unit IV. Random Variables and Probability Distributions