M.A. Part II Economics Syllabus

Gondwana University

Program Structure

The M.A. Part II Economics program is designed to provide an in-depth understanding of advanced economic concepts and their applications. This two-semester program includes both core and elective courses, allowing students to specialize in areas of interest while developing strong analytical and research skills.

Course Distribution

Type	Number of Courses	Credits
Core Courses	4	16
Elective Courses	2	8
Dissertation/Project	1	4
Total	7	28

Core Courses

Semester III

ECO-301: Advanced Microeconomics

• Consumer Theory: Revealed preference theory, duality in consumption, intertemporal choice, choice under uncertainty
• Producer Theory: Production functions, cost functions, factor markets, market structures under uncertainty
• General Equilibrium: Existence, uniqueness, stability of equilibrium, welfare economics
• Social Choice and Welfare: Arrow's impossibility theorem, social welfare functions, equality and efficiency
• Game Theory: Static and dynamic games of complete and incomplete information, Nash equilibrium, Bayesian games
• Information Economics: Adverse selection, moral hazard, signaling, screening

ECO-302: Advanced Macroeconomics

• Consumption and Investment Models: Life-cycle hypothesis, permanent income hypothesis, Tobin's q theory
• IS-LM Model and Extensions: Mundell-Fleming model, expectations and policy effectiveness
• Economic Growth Models: Solow model, Ramsey-Cass-Koopmans model, endogenous growth models
• Business Cycle Theory: Real business cycle models, New Keynesian models, coordination failures
• Unemployment and Inflation: Phillips curve, search models, efficiency wage models
• Open Economy Macroeconomics: Exchange rate determination, balance of payments, currency crises

ECO-303: Econometrics

• Linear Regression Model: OLS estimation, properties of estimators, hypothesis testing
• Violations of Classical Assumptions: Multicollinearity, heteroskedasticity, autocorrelation
• Stochastic Regressors: Instrumental variables, errors-in-variables, simultaneous equations
• Time Series Econometrics: Stationarity, unit roots, cointegration, ARIMA models
• Panel Data Models: Fixed effects, random effects, dynamic panel models
• Limited Dependent Variable Models: Logit, probit, tobit models

ECO-304: Mathematical Economics

• Linear Algebra: Vector spaces, matrices, eigenvalues and eigenvectors, quadratic forms
• Calculus of Several Variables: Partial derivatives, constrained optimization, envelope theorem
• Static Optimization: Kuhn-Tucker conditions, nonlinear programming, convexity and concavity
• Dynamic Optimization: Difference equations, differential equations, optimal control theory
• Natural Exponential and Logarithmic Functions: Economic applications, compound interest, growth models
• Game Theory Applications: Mathematical formulation of strategic interactions

Semester IV

ECO-401: Indian Economy

• Development Experience and Trends: Structural changes, sectoral growth, demographic transition
• Planning and Policy: Planning era, economic reforms, regulatory challenges
• Agriculture: Land reforms, agricultural development, food security, farm policies
• Industry: Industrial policy, liberalization, MSME sector, industrial development
• Services Sector: Growth patterns, challenges, policy framework for services
• External Sector: Trade policy, balance of payments, FDI, exchange rate management
• Public Finance: Fiscal policy, budgeting, taxation, public expenditure, subsidies
• Special Issues: Poverty, inequality, unemployment, regional disparities

Elective Courses (Choose Any Two)

ECO-405: Public Economics

• Public Goods: Theory of public goods, optimal provision, club goods
• Externalities: Types of externalities, internalization mechanisms, Coase theorem
• Government Expenditure: Structure, welfare effects, social cost-benefit analysis
• Taxation: Principles, incidence, efficiency and equity aspects, tax reforms
• Fiscal Federalism: Decentralization, fiscal transfers, center-state relations
• Local Government Finance: Municipal finance, rural local bodies, property taxation
• Budget and Fiscal Policy: Budgetary process, fiscal deficit and its implications

ECO-406: International Economics

• Classical and Neo-classical Trade Theories: Comparative advantage, factor proportions, terms of trade
• Modern Trade Theories: Economies of scale, imperfect competition, strategic trade policy
• Trade Policy: Tariffs, quotas, subsidies, trade agreements, protectionism vs. free trade
• Balance of Payments: Accounting framework, adjustment mechanisms, policies
• Exchange Rate Systems: Fixed vs. floating, currency unions, monetary policy and exchange rates
• International Monetary System: Evolution, international financial institutions, global financial crises
• Capital Flows: FDI vs. portfolio flows, foreign aid, debt crisis, sovereign debt

ECO-407: Development Economics

• Concepts and Measurement of Development: Development indicators, human development index, poverty and inequality measures
• Development Theories: Classical, neo-classical, structuralist, endogenous growth models
• Growth and Distribution: Structural transformation, dual economy models, poverty traps
• Sectoral Issues: Agriculture, industry, services and their roles in development
• Human Resources: Education and health in development, demographic transition, labor markets
• Development Planning: Planning models, indicative vs. directive planning, decentralization
• Sustainable Development: Environmental issues, sustainable development goals, green growth

ECO-408: Financial Economics

• Financial Markets and Instruments: Money, capital, and foreign exchange markets
• Financial Intermediation: Banking, non-banking financial institutions, role of Central Bank
• Interest Rate Determination: Classical, Keynesian, loanable funds theories, term structure
• Portfolio Theory: Risk and return, efficient frontier, CAPM, APT
• Valuation of Assets: Valuation of stocks, bonds, options, futures, and derivatives
• Corporate Finance: Capital structure, dividend policy, financial markets and corporate decision-making
• Financial Crises: Theories, empirical evidence, regulatory responses

ECO-409: Environmental and Resource Economics

• Environment-Development Interface: Sustainable development, environmental Kuznets curve
• Environmental Valuation: Contingent valuation, travel cost method, hedonic pricing
• Environmental Economics: Externalities, public goods, cost-benefit analysis
• Natural Resource Economics: Exhaustible and renewable resources, resource extraction models
• Environmental Economics of Pollution: Types and sources of pollution, abatement options
• Environmental Policy and Regulation: Market-based vs. command-and-control approaches
• Global Environmental Issues: Climate change, biodiversity loss, international agreements

ECO-410: Economics of Health and Education

• Health Economics: Concepts of health and healthcare, health production function
• Healthcare Systems: Models of healthcare delivery, public vs. private healthcare
• Health Insurance: Demand for insurance, moral hazard, adverse selection
• Economics of Education: Human capital theory, returns to education, education externalities
• Education Systems: Public vs. private education, financing of education, school choice
• Education and Labor Market: Education, earnings, and employment, signaling vs. human capital
• Policy Issues: Health and education reforms in developing countries, inequality in access

Dissertation/Project Work

Students are required to complete a dissertation or project under the guidance of a faculty member. This component enables students to apply research methods and analytical techniques to address economic issues in depth.

Recommended Readings

Advanced Microeconomics

• Varian, H.R. - Microeconomic Analysis
• Mas-Colell, A., Whinston, M.D., and Green, J.R. - Microeconomic Theory
• Tirole, J. - The Theory of Industrial Organization
• Kreps, D.M. - A Course in Microeconomic Theory
• Fudenberg, D. and Tirole, J. - Game Theory

Advanced Macroeconomics

• Blanchard, O. and Fischer, S. - Lectures on Macroeconomics
• Romer, D. - Advanced Macroeconomics
• Mankiw, N.G. and Romer, D. - New Keynesian Economics
• Barro, R.J. and Sala-i-Martin, X. - Economic Growth
• Obstfeld, M. and Rogoff, K. - Foundations of International Macroeconomics

Econometrics

• Gujarati, D.N. - Basic Econometrics
• Wooldridge, J.M. - Econometric Analysis of Cross Section and Panel Data
• Greene, W.H. - Econometric Analysis
• Hamilton, J.D. - Time Series Analysis
• Baltagi, B.H. - Econometric Analysis of Panel Data

Indian Economy

• Acharya, S. and Kumar, R. (eds.) - India's Economy: Some Issues and Answers
• Rakshit, M. (ed.) - Money and Finance in the Indian Economy
• Panagariya, A. - India: The Emerging Giant
• Bhalotra, A., Gomanee, K. and Prais, S. (eds.) - The Impact of Public Expenditure on Health and Education in India
• Rao, C.H.H. - Growth, Poverty Reduction and Inequality

Assessment and Evaluation

Internal Assessment

• Class participation and attendance (10%)
• Assignments and presentations (10%)
• Mid-semester examinations (20%)
• Term papers/projects (10%)

End-Semester Examination

• Written examination of 3 hours duration (50%)
• Paper consists of compulsory short answer questions
• Essay-type questions with internal choice
• Quantitative and analytical problem-solving questions

Suggested Preparation Strategy

1. Develop a study schedule allocating sufficient time for each subject
2. Read the recommended texts and supplement with additional academic papers
3. Practice mathematical derivations and economic modeling regularly
4. Form study groups to discuss complex concepts and solve problems
5. Make concise notes for quick revision before examinations
6. Attempt previous years' question papers to understand the examination pattern
7. Stay updated with contemporary economic issues and policy discourse
8. Enhance quantitative skills through regular practice using statistical software

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