PAPER- FIRST

1. Advanced Micro Economics :

(a) Marshallian and Varrasiam Approaches to Price
(b) Alternative Distribution Theories; Ricardo, Kaldor,
(c) Markets Structure : Monopolistic Competition,
Duopoly, Oligopoly.
(d) Modern Welfare Criteria : Pareto Hicks and Scitovsky,
Arrow’s Impossibility Theorem, A. K. Sen’s Social
Welfare Function.
2. Advance Macro Economics :
Approaches to Employment Income and Interest Rate
determination : Classical, Keynes (IS)-LM) curve,
Neo-classical synthesis and New classical, Theories
of Interest Rate determination and Interest Rate
3. Money-Banking and Finance :
(a) Demand for and Supply of Money : Money Multiplier
Quantity Theory of Money (Fisher, Pique and
Friedman) and Keyne’s Theory on Demand for
Money, Goals and Instruments of Monetary
Management in Closed and Open Economies.
Relation between the Central Bank and the Treasury.
Proposal for ceiling on growth rate of money.
(b) Public Finance and its Role in market Economy : In
stabilisation of supply, allocative, of resources and
in distribution and development. Sources of
Government revenue, forms of Taxes and Subsidies,
their incidence and effects. Limits to taxation, loans,
crowding-out effects and limits to borrowings. Public
expenditure and its effects.
4. International Economics :
(a) Old and New theories of International Trade.
(i) Comparative advantage,
(ii) Terms of Trade and Offer Curve.
(iii) Product Cycle and Strategic Trade Theories.
(iv) Trade as an engine of growth and theories of
underdevelopment in an open economy.
(b) Forms of Protection : Tariff and quota.
(c) Balance of Payments Adjustment : Alternative
(i) Price versus income, income adjustments
under fixed exchange rates.
(ii) Theories of Policy Mix.
(iii) Exchange rate adjustments under capital
(iv) Floating Rates and their Implications for
Developing Countries : Currency Boards.
(v) Trade Policy and Developing Countries.
(vi) BOP, adjustments and Policy Coordination in
open economy macromodel.
(vii) Speculative attacks.
(viii) Trade Blocks and Monetary Unions.
(ix) WTO : TRIMS, TRIPS, Domestic Measures,
Different Rounds of WTO talks.
5. Growth and Development :
(a) (i) Theories of growth : Harrod’s model;
(ii) Lewis model of development with surplus labour.
(iii) Balanced Unbalanced Growth.
(iv) Human Capitals and Economic Growth.
(v) Research and Development and Economic Growth.
(b) Process of Economic Development of less developed
courtries : Myrdal and Kuzments on economic
development and structural change : Role of Agriculture
in Economic Development of less developed countries.
(c) Economic Development and International Trade and
Investment, Role of Multinationals.
(d) Planning and Economic Development : changing role of
Markets and Planning, Private-Public Partnership.
(e) Welfare indicators and measures of growth—Human
Development Indices. The basic needs approach.
(f) Development and Environmental Sustainability—
Renewable and Non-renewable Resources,
Environmental Degradation, Intergenerational equity


Indian Economics in Post-Independence Era :
Land System and its changes, Commercialization of
agriculture Drain theory, Laissez faire theory and critique.
Manufacture and Transport : Jute, Cotton, Railways, Money
and Credit.
Indian Economy after Independence :
A. The Pre-Liberalization Era :
(i) Contribution of Vakil, Gadgil and V.K.R.V. Rao.
(ii) Agricultrure : Land Reforms and land tenure system,
Green Revolution and capital formation in agriculture.
(iii) Industry Trends in composition and growth, Role of
public and private sector, small scale and cottage
(iv) National and Per capita income : Patterns, trends,
aggregate and sectoral composition and changes therein. (v) Broad factors determining National Income and
distribution, Measures of poverty, Trends in poverty
and inequality.
B. The Post-Liberalization Era :
(i) New Economic Reform and Agriculture : Agriculture
and WTO, Food processing, subsidies, Agricultural
prices and public distribution system, Impact of public
expenditure on agricultural growth.
(ii) New Economic Policy and Industry : Strategy of
industrialization, Privatization, Disinvestments, Role
of foreign direct investment and multinationals.
(iii) New Economic Policy and Trade : Intellectual
property rights : Implications of TRIPS, TRIMS, GATS
and new EXIM policy.
(iv) New Exchange Rate Regime : Partial and full
convertibility, Capital account convertibility.
(v) New Economic Policy and Public Finance : Fiscal
Responsibility Act, Twelfth Finance Commission and
Fiscal Federalism and Fiscal Consolidation.
(vi) New Economic Policy and Monetary System. Role
of RBI under the new regime.
(vii) Planning : From central Planning to indivative
planning, Relation between planning and markets
for growth and decentralized planning : 73rd and 74th
Constitutional amendments.
(viii) New Economic Policy and Employment : Employment
and poverty, Rural wages, Employment Generation,
Poverty alleviation schemes, New Rural, Employment
Guarantee Scheme.