FYBA Economics
Term – I
Module - 1: Introduction [05 lectures]
Meaning and scope of Microeconomics – Ceteris Paribus Assumption
Concepts and Types of Equilibrium: Partial and General.
Module - 2: Consumer Behavior [15 lectures]
Utility: Cardinal and Ordinal Approaches – Indifference Curve: consumer’s equilibrium, Income, Price and Substitution Effects, Giffen’s Paradox - Revealed Preference Hypothesis - Elasticity of demand: Price, Income, Cross and Promotional - Consumer’s Surplus – Engel’s Curve
Module - 3 : Production and costs. [15 lectures]
Short run and Long run-Law of variable proportions - Isoquants, Iso-cost lines and producer’s equilibrium - Returns to Scale: Economies and Diseconomies of Scale - Cobb-Douglas Production Function
Module - 4: Cost and revenue [15 lectures]
Costs : Short – run and Long – run cost, Derivation of short run cost curves and their relationship - Derivation of long run average cost curves and its features
Revenue: Total revenue, average revenue and marginal revenue : relationship between AR and MR under different market structures; Relationship between AR, MR and Elasticity of demand
Term II
Module - 5: Theory of the Firm [10 lectures]
Objectives of the firms : Profit, Sales and Growth Maximization - Break even Analysis -
Pricing Methods in practices : Marginal Cost and Full Cost Approaches.
Module - 6: Perfect Competition [15 lectures]
Perfect Competition: Features; Short run Equilibrium of a firm and industry; Derivation of the supply curve of the firm and the industry; Long run Equilibrium of a firm and industry.
Module - 7: Monopoly [15 lectures]
Monopoly: Features, Short run equilibrium of the monopolist under different cost conditions and long run Equilibrium of the monopolist; Discriminating Monopoly,
Dumping – Comparison between Perfect Competition and Monopoly with reference to Output and Price.
Module - 8: Monopolistic Competition and Oligopoly [10 lectures]
Monopolistic Competition: Features, Equilibrium in the Short run and long run;
wastages under monopolistic competition – Features of Oligopoly.
SYBA : Indian economy
Term – I
Module - 1: Introduction [12 lectures]
- Indian economy in the pre-British period: Structure and organization of villages, towns, industries and handicrafts; economic consequences of the British Rule: The theory of drain – Pros and Cons; Case for protection of Indian industries
- Salient Features of Indian economy and structural changes in national income since independence; government measures to alleviate poverty and income inequality in India.
Module - 2: Agriculture [12 lectures]
Nature and importance; causes of low productivity; Land reforms; New agricultural Strategy and Green revolution; Rural credit; Agricultural Marketing; Agricultural price policy(including Food security).
Module - 3: Industry [12 lectures]
Industrial development since Independence; Overview of industrial policy resolution of 1948 and 1956 and New
Industrial Policy 1991
- Role and problems of small scale industries; Government policy towards small scale industry; Role and problems of public sector enterprises; the disinvestment policy.
Term II
Module - 4: Population and Labour Markets [12 lectures]
Features of India’s population, population policy; Features of Agricultural, Industrial and tertiary labour markets; Unemployment problem; Labour market segmentation; role of trade unions; Impact of liberalization on employment (Exit policy and Safety net for Labour); Industrial relations.
Module - 5: External Sector [12 lectures]
Analysis of trend in exports and imports; change in composition and direction of India’s Foreign trade; EXIM policy; India’s balance of payments position in recent years; Foreign exchange market; Exchange rate policy’ Convertibility; Foreign capital flow; WTO and India
Macro Economics:
Term– I
Module - 1: Introduction [12 lectures]
Distinction between Micro Economics and Macro Economics; Circular Flow of Economic activities; Concepts of national income aggregates: GNP, NNP, GDP, NDP; Per Capita Income, Personal income and Disposal Income; Methods of measurement of National Income. Price indices
Module - 2: Determination of Employment [12 lectures]
Say’s Law, Keynesian concepts of aggregate demand, Aggregate supply and effective Demand; Consumption Function and investment multiplier; Investment function; savings and investment: ex-ante and ex-post, Types of inflation: demand-pull and Cost-push inflation.
Module - 3: Money[12 lectures]
- Meaning and functions of money
- Supply of money; Constituents of money supply; Determinants of Reserve Money and Money supply; Velocity of Circulation of Money; Money Multiplier; Measures of Money supply in India (including Liquidity concepts).
- Demand for Money. Classical and Keynesian Approach
- Value for Money : Quality Theory of money:, Cash transaction and Cash Balances Versions; Friedman’s quantity theory of Money
Term II
Module - 4: Banking and financial markets [20 lectures]
Commercial Banks : Functions, multiple credit creation process; commercial banking developments in India since 1989.
Central Bank : Functions, objectives and instruments of monetary policy
Money market: Features of Indian money market; Instruments of money market
Capital Market : Primary Market and secondary market; Role of capital market in economic development; Securities and exchange board of India (SEBI)
Module - 5: Public Finance and Fiscal Policy
Nature and scope of public finance; Source of Public revenue; Canons of taxation; Direct and Indirect Taxes; Public expenditure: Revenue Expenditure and Capital expenditure; Public debt; Concepts of deficit; Federal finance in India (with respect to latest available report)
TYBA :
Advanced Economic Theory
Term– I
Module - 1 : Price and Oligopoly: (14 lectures)
Features of Oligopoly market, Cournet’s model, Kinked demand curve hypothesis, collusion: cartels and price leadership, Game theory: Nash equilibrium and prisoner’s dilemma.
Module - 2: Theory of Factor Pricing: ( 12 lectures)
Factor pricing in perfectly and imperfectly competitive markets, economic rent, wage determination under collective bargaining, bilateral Monopoly, loan able funds theory, risk uncertainty and profits.
Module - 3 : General Equilibrium and social welfare: (12 lectures)
Interdependence in the economy, general equilibrium and its existence, the pareto optimality criterion of social welfare, marginal conditions for a pareto optimal resource allocation, perfect competition and pareto optimality.
Module - 4 : Economics of Information: (12 lectures)
Economics of search: search costs, information failure and missing markets. Asymmetric information: the market for lemons. Adverse selection: insurance markets. Market signaling: the problem of moral hazard. The principle-agent problem. The efficiency wage theory.
Term II
Module - 1 : IS-LM Model: v (14 lectures)
Money market equilibrium: the LM curve, product market equilibrium: the IS curve; the IS and LM curves combined- Factor influencing equilibrium income and the interest rate: monetary influences: shift in the LM schedule- real influences: shift in the IS schedule; relative effectiveness of monetary and fiscal policy: policy effectiveness and the slope of the IS schedule- policy effectiveness and the slope of the LM schedule; derivation of the macroeconomic (aggregate) demand curve from the IS-LM schedules- aggregate supply and the Philip’s curve, determination of price level and aggregate output using AD and AS curves.
Module - 2 :Open Economy Macroeconomics: (12 lectures)
Fixed vs flexible exchange rate regime, determination of exchange rate in free markets. Mundell-Fleming model- the impossible trinity. The concept of real exchange rate, purchasing power parity theory. Disequilibrium in the balance of payments and balance of payments adjustments: devaluation, reduction, direct controls, currency crises.
Module - 3 : International Trade (12 lectures)
Classical theory of international trade, Haberler’s theory of opportunity cost; Heckscher-ohlin theory of trade; law of reciprocal demand and offer curves- equilibrium price in international trade; free trade versus protection in trade policy; tariffs and their effects.
Module - 4 : Public Economics (12lectures)
Market failures and role of the state, public goods, public expenditure theory; free rider problem, efficiency condition for public goods; Principles of taxation; horizontal and vertical equity, ability to pay and benefit approach, tax incidence, excess burden of taxation.
Growth and Development
Term – I
Module - 1 : Meaning of Development and Relevant Concepts: (12 lectures)
Distinction between growth and development, human development, human development index, gender development index, sen’s capabilities approach, environmental sustainability and development, market and state as agencies of development.
Module - 2 : Classical Theories of Development: (14 lectures)
Rostow’s stages of growth, Harrod-Domar growth model, structural change and Lewi’s model of unlimted supplies of lobour and Solow’s growth theory.
Module - 3 : Contemporary Model of Development and Under development:
(10 lectures)
Theories of endogenous growth with special reference to Romer’s model, underdevelopment as coordination failure, multiple equilibria, the big push theory and Lebenstence theory of critical minimum efforts.
Module - 4 : Poverty, Inequality and Development: (14 lectures)
Measurement of poverty- absolute and relative, head-count index and poverty gap indices, policy options for alleviation of poverty, measurement of income inequality, economic growth and inequality – Kuzent’s inverted U hypothesis, impact of inequality on
Term II
Module - 1 : Population and Human Resources: (14lectures)
Demographic transition causes of high fertility in developing countries- the microeconomic household theory of fertility, consequences of high fertility, approaches to population policy, contribution of education and health to economic growth and development, role of health in economic development.
Module - 2 : Urbanization and Informal sector: (12lectures)
Causes and effects of urbanization, Harris-Todaro model of rural-urban migration, migration and development, policies for the urban informal sector, women in the informal sector, the microfinance revolution.
Module - 3 : Agricultural Transformation and Rural Development: (10 lectures)
Role of agriculture in economic development, rural credit markets, organized and unorganized, policies for rural development, agriculture and the WTO.
Module - 4 : International Aspects of Development: (14 lectures)
Trade strategies for development; inward looking and outward looking, financing of balance of payments deficits, foreign direct investment and multinational corporations, foreign portfolio investments and developing countries, role of IMF and the World bank- stabilization and structural adjustment programmes.
Rural Economics
(Theory 80 marks and Project 20marks)
Module - 1 : Features of Rural Economics
Characteristics and composition of rural economy, linkages of farm and non-farm sectors, indicators of rural development, concepts of agri-preneurship and agribusiness, agriculture and allied activities- fisheries, horticulture and floriculture and forestry.
Module - 2 : Theoretical Perspectives:
Fei-Ranis model, Kuzent’s curve, Human development index, Human poverty index, spread and backwash effects, Theory of dualism, balanced and unbalanced growth.
Module - 3 : India’s Agricultural Economy
Role and importance of agriculture in economic development, trends in agricultural growth and productivity, agricultural instability and pricing policy, new agricultural strategy, sustainable agriculture, emerging trends in agricultural economy- dry land farming and biotechnology techniques.
Term II
Module - 4 : Rural Industrialization
Agro industries, Agro-based industries, food processing industries, Dairy, sugar and cotton textiles, Importance of district industrial sectors, configuration of Indian Industries, FICCI and small and medium enterprises.
Module - 5 : Rural Infrastructure
Importance of rural electrification, Irrigation, Transport and Communication, markets, education health and sanitation, provision of urban amenities in rural areas.
Module - 6 : Institutions for Rural Development
Co-operative movement, National cooperative development corporation, Role of NGOs, Regional Rural banks, NABARD, Micro finance and self-help groups.
Paper VII
Elementary mathematics and statistics for economic analysis
OR
Research methodology
OR
Economy of Maharashtra (in place of rural development)
Elementary mathematics and statistics for economic analysis
Term I
Module - 1 : Derivatives and their applications
Limits and continuity, Derivatives, High order derivatives, Increasing and decreasing functions, Concave, convex functions and inflexion point, Optimization of economic functions
Module - 2 : Multivariate functions
Functions of several variables and partial derivatives, Second order partial derivatives, Optimization of multi variable functions, Constrained optimization with lagrange multipliers, Total derivatives, Marginal productivity , income and cross-price elasticities of demand, Homogeneous production functions and returns to scale, Optimization of the Cobb-Douglas production function
Module - 3 : Integral calculus
Integration, Economic applications, Definite integral , Present value of cash flows, Consumers and producers surplus, Learning curve
Module - 4 : Linear algebra
Matrices and basic operations, Rank of a matrix, Inverse of a matrix, Cramers rule, Characteristics roots and vectors (eigen values and eigen vectors), Linear programming problem.
Term II
Module - 5 : Measures of central Tendency and Dispersion
Arithmetic mean median and mode, Concepts of range, quartile deviation, mean deviation, standard deviation coefficient variation, Commercial statistics : brokerage, commission and insurance
Module - 6 : Correlation and Regression
Karl Pearson’s correlation coefficient, Spearman’s correlation coefficient, Method of least squares and regression lines, Regression coefficients
Module - 7 : Index numbers and time series
Simple and composite index numbers, Construction and uses of index numbers, Lasperey’s Paasches, And Fischer’s index numbers, Cost of living index numbers – real income- wholesale price index number, Splicing of index numbers, Components of time series, Estimation and forecasting of trend by least squares method
Module - 8 : Elementary Probability Theory
Sample space and events, Mutually exclusive, exhaustive and complimentary events , Conditional probability, Theorems on addition and multiplication of probabilities, Problems on calculating probability, Binomial probability distribution, Normal distribution
Paper IX
(Theory of 80marks and project 20marks)
Corporate finance
OR
Environmental economics
OR
Computer applications to economic analysis
OR
Export management
OR
Entrepreneurship and small industries management
Corporate Finance
Term I
Module 1 : Introduction to corporate finance
Corporate finance : meaning, principles, objectives, tools and limitations Agency theory,Role and functions of a financial manager, Organization of financial functions, Corporate governance
Module 2 : Sources of Corporate finance
Raising funds by private and publily traded firms, Short and long term : equity and debentures, Internal and external sources: retained earnings, equity v/s debt financing, Banks and Institutional debt : Hybrid and lease financing
Module 3 : Dividend Policy
Dividends – meaning, types, process, determinants and policies, Relevance / Irrelevance of dividends, Low and high pay-out ratios, Alternatives to cash dividends : scrip dividends, stock repurchases and stock splits
Term II
Module 4 : Market for corporate securities
The capital market: meaning, role, types – primary and secondary, Features and importance : primary and secondary markets, Regulation of stock market : SEBI, Investor protection
Module 5 : Capital budgeting and investment decisions
Capital budgeting: meaning, scope, significance, process and limitations, Time value of money, Costs and benefits : basic principles, Methods of investment appraisal : pay back period(PBP), average rate of return(ARR), net present value(NPV) and internal rate of return(IRR) methods. Comparison between NPV and IRR
Module 6 : Financial statements and Ration analysis
Financial statements: basic concepts, contents and composition balance sheet and income statement.Ratio analysis: meaning, significance and types – liquidity, leverage, turnover, profitability and valuation
Paper VIII
International Economics: Theory and Policy
(in place of International Policy and Practice)
OR
Evolution of Economic ideas
(in place of History of Economic thought)
Evolution of Economic Ideas
Term I
Module 1 : Pre-Classical School
General outline of mercantilist theories – Physiocracy : Basic principles and policies : natural order, tableau economique.
Module 2 : Classical political economy
Origin of Classicism:
Adam Smith: Division of labor, Theory of value Economic development
David Ricardo : Theory of value, Theory of distribution, Doctrine of rent, Views on international Trade, Theory of economic development and Stationary state, Critique by sraffa
T.R.Malthus: Theory of population and Theory of Gluts - Criticism of Classicism
Karl Marx: Materiaslistic interpretation of history, Labor theory of value and surplus value . F.List – Historical Critics.
Module 3 : Reconstruction of Economic Science
Jevons, Menger, Walras, E.Bohm Bawerk, Wicksell, Fisher
Module 4 : Neo- Classical School
Marshall: Consumer Surplus, Tax bounty analysis, External Economies, Quasi-rent, Role of time element in value
Pigou: Welfare economics
Term II
Module 5 : American Economic thought
Institutionalism: Veblen – Theory of the leisure class – Commons –
Frank Knight : Theory of profit – risk and uncertainity
Module 6 : New Economics
Schumpeter : Vision of development and the demise of capitalism
Keynesianism : Principle of Effective demand, consumption function, multiplier, investment function, liquidity preference theory of interest , role of fiscal policy, uncertainty and role of expectations.
Module 7 : Post Keynesian Developments
Hayek – Supply side economics : Arthur laffer, Evans – Monetarism
Milton Friedman Don Patinkin – An overview of the new classical economics: Ratex JF Muth, Robert Lucas, Sargent and Wallace.
Module 8 : Nobel Prize winners in economics
Myrdal (1974), A.K.Sen (1998), Joseph Stiglitz (2001), Paul Krugman (2008)
International Economics : Theory and Policy
(In place of international policy and practice)
Term I
Module 1: International Trade theories
Importance of international economics, Benefits of foreign trade and foreign investment.
Comparative cost advantage theory including Taussig’s restatement, Misconceptions about comparative advantage: Pauper labor argument.
Factor endowments theory of international trade : H.O. theorem, Empirical evidence on H.O. model,Leontiff’s paradox.
Module 2 : International Factor Movements
Factors determining labor and capital mobility, International trends in labor mobility and migration, Wage convergence.
Trends in foreign investment: Aid, portfolio investment, FDI- Experience with MNCs.
Module 3 : Trade Policies
Free trade and Efficiency, Case for Protectionism, Strategies of trade and growth: import – substituting industrialization and export – orientated industrialization.
Trade liberalization under WTO, controversies in trade policies – with reference to labor standards, environment, issues under TRIPS and GATS.
Dispute settlement body of WTO.
Module 4 : Instruments of trade policy
Tariff : Meaning, implications/ effects and illustrations/ case studies (to be discussed in classroom),
theory of optimum tariff, theory of customs union : Trade creation and Trade diversion.
Non-Tariff barriers : Export subsidies, import quotas, voluntary export restraint, preferential trading agreement, commodity agreements : Meaning, effects, and case studies (to be discussed in classroom).
Term II
Module 5 : Balance of Payments
Structure of balance of payments, accounting principles in balance of payments (double entry system),fundamental balance of payments identity.
Balance of payments disequilibrium – causes and types.
Methods to reduce deficit in Balance of payments, effectiveness of devaluation: Marshall- Lerner Condition.
Module 6 : Foreign exchange market
Meaning and functions, Nature and participants, role of dealers.
Exchange rate theories : Balance of payment theory and purchasing power parity theory.
Spot and forward rates, exchange rate risks : causes and management. (forward rate agreement , swap and currency options).
Module 7 : International monetary systems
Overview of gold standard system, collapse of Bretton Woods system.
Fixed versus flexible exchange rate system, emergence of floating exchange rate system : meaning, role of central bank, question of monetary policy autonomy.
International liquidity and role of IMF.
Currency crisis: meaning and effects, East Asian currency crisis, exchange rate experience between oil shocks, 1973 – 1980, lessons of developing country crisis.
Module 8 : Economic integration and trade blocs
Meaning and benefits of economic integration, types of economic integration (free trade area, partial integration, custom union, common market and economic union).
Experience and evaluation of trade blocs: North American free trade area, South American free trade area, oil producing and exporting countries, European Union and South Asian Association for Regional cooperation (SAARC).
