ECONOMICS

   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. Course Outline 1. Nature and Scope of Econometrics 2. Statistical Concepts Normal distribution; chi-sq, t- and F-distributions; estimation of parameters; properties of estimators; testing of hypotheses: defining statistical hypotheses; distributions of test statistics; testing hypotheses related to population parameters; Type I and Type II errors; power of a test; tests for comparing parameters from two samples. 3. Simple Linear Regression Model: Two Variable Case Estimation of model by method of ordinary least squares; properties of estimators; goodness of fit; tests of hypotheses; scaling and units of measurement; confidence intervals; G...

  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. Course Outline 1. Public Economic Theory a. Fiscal functions: an overview. b. Public Goods: definition, models of efficient allocation, pure and impure public goods, free riding. c. Externalities: the problem and its solutions, taxes versus regulation, property rights, the Coase theorem. d. Taxation: its economic effects; dead weight loss and distortion, efficiency and equity co...

    Course Description This course develops a systematic exposition of models that try to explain the composition, direction, and consequences of international trade, and the determinants and effects of trade policy. It then builds on the models of open economy macroeconomics developed in courses 08 and 12, focusing on national policies as well as international monetary systems. It concludes with an analytical account of the causes and consequences of the rapid expansion of international financial flows in recent years. Although the course is based on abstract theoretical models, students will also be exposed to real-world examples and case studies. Course Outline 1. Introduction What is international economics about? An overview of world trade. 2. Theories of International Trade The Ricardian, specific factors, and Heckscher-Ohlin models; new trade theories; the international location of production; firms in the global economy — outsourcing and mult...

  Course Description This course deals with repeated games and games with incomplete information. Ideas related to asymmetric information among the interacting economic agents would be the main focus of this course. Students learn the concept of Bayesian and Perfect Bayesian equilibrium. The course ends with the application of game theory to analyse moral hazard, adverse selection and signalling problems. Course Outline 1. 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. 2. Simultaneous move games with incomplete information (Bayesian games) Strategies; Bayesian Nash equilibrium; auctions; other applications. 3. Extensive form games with imperfect information Strategies; beliefs and sequential equilibrium; applications. 4. Information economics Adverse selection; moral hazard; signalling g...

   Course Description This course investigates selected issues in comparative historical perspective over the 19th century and the first few decades of the 20th century. The course focuses on a set of countries, which followed clearly diverse trajectories and patterns of growth to achieve their industrial transition and compares the outcomes of these diverse trajectories on sectoral change, inter-sectoral relations, labour processes and industrial relations and also compares the role of the state in facilitating the respective trajectories. Course Outline 1. Introduction and Perspectives on Comparative Economic Development 2. An Overview of Economic Development of the countries selected for case studies 3. Agriculture Agrarian surplus and the role of the peasantry in economic development. 4. Industry The industrial revolution in Britain; Industrialisation in late industrialisers. 5. The Factory System and Making of the Industrial Worki...

   Course Description Employing perspectives from alternative schools of thought, this course explores the development of the structure and institutions of capitalist economies and their relationship to social and political forces. Students are expected to read some classic texts as well as more recent commentaries. Course Outline 1. Analysing Social Change in Historical Perspective The method of historical materialism; the transition from feudalism to capitalism; capitalism as a historical process – alternative perspectives. 2. Capitalism as an Evolving Economic System Basic features; accumulation and crisis; the modern corporation; monopoly capitalism alternative perspectives. 3. The State in Capitalism The state and the economy – contestation and mutual interdependence; the state as an arena of conflict; imperialism – the basic foundations. THIS SECTION COMPRISES PREVIOUS YEAR PAPERS OF POLITICAL ECONOMY. 2019-- (UNSOLVE...

Course Description This course introduces students to the economics of finance. Some of the basic models used to benchmark valuation of assets and derivatives are studied in detail; these include the CAPM, and the Binomial Option Pricing models. The course ends with a brief introduction to corporate finance. Course Outline 1. Investment Theory and Portfolio Analysis a. Deterministic cash-flow streams Basic theory of interest; discounting and present value; internal rate of return; evaluation criteria; fixed-income securities; bond prices and yields; interest rate sensitivity and duration; immunisation; the term structure of interest rates; yield curves; spot rates and forward rates. b. Single-period random cash flows Random asset returns; portfolios of assets; portfolio mean and variance; feasible combinations of mean and variance; mean-variance portfolio analysis: the Markowitz model and the two-fund theorem; risk-free assets and the one-fund theorem. c....

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. Course Outline 1. Money Concept, functions, measurement; theories of money supply determination. 2. Financial Institutions, Markets, Instruments and Financial Innovations a. Role of financial markets and institutions; problem of asymmetric information – adverse selection and moral hazard; financial crises. b. Money and capital markets: organization, structure and reforms in India; role of financial derivatives and other innovations. 3. Interest Rates Determination; sources of interest rate differentials; theories of term structure of inter...

Course Description This course focuses on economic causes of environmental problems. In particular, economic principles are applied to environmental questions and their management through various economic institutions, economic incentives and other instruments and policies. Economic implications of environmental policy are also addressed as well as valuation of environmental quality, quantification of environmental damages, tools for evaluation of environmental projects such as cost-benefit analysis and environmental impact assessments. Selected topics on international environmental problems are also discussed. Course Outline 1. Introduction What is environmental economics; review of microeconomics and welfare economics. 2. The Theory of Externalities Pareto optimality and market failure in the presence of externalities; property rights and the coase theorem. 3. The Design and Implementation of Environmental Policy Overview; pigouvian taxes and effluent f...

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. Course Outline 1. Demography and Development Demographic concepts; birth and death rates, age structure, fertility and mortality; demographic transitions during the process of development; gender bias in preferences and outcomes and evidence on unequal treatment within households; connections between income, mortality, fertility choices and human capital accumulation; migration. 2. Land, Labor and Credit Markets The dis...

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. Course Outline 1. Macroeconomic Policies and Their Impact Fiscal Policy; trade and investment policy; financial and monetary policies; labour regulation. 2. Policies and Performance in Agriculture Growth; productivity; agrarian structure and technology; capital formation; trade; pricing and procurement. 3. Policies and Performance in Industry Growth; productivity; diversification; small scale industries; public sector; competition policy; foreign investment. 4. Trends and Performance in Services THIS SECTION COMPRISES THE LAST 10 YEAR PAPERS OF INDIAN ECONOMY. 2020 (UNSOLVED ) 2019 2018 2017 2016 2015 ...