Master's of Economics Syllabus

Program Overview

MA in Economics under the semester system is a two-year programme consisting of four semesters. Students go through various compulsory papers pertaining to the core courses and can choose specialized courses from a wide variety of optional papers. The first two semesters consist of compulsory papers, whereas students have the opportunity to choose among specialized courses during the third and fourth semesters.

The MA Economics programme at Tribhuvan University is designed to provide students with a comprehensive theoretical and practical knowledge of economic theories, methodologies, and policies. The curriculum intends to equip students with skills for comprehending core and contemporary knowledge of economics, including microeconomics, macroeconomics, economic development and planning, public economics, monetary economics, financial economics, Nepalese economics, and various specialized areas. It also emphasizes the development of quantitative skills — particularly in mathematics, statistics, research methodology, and econometrics — enabling application of analytical techniques to real-world economic research and policy analysis.

By the end of the course, students should be able to understand the analytical tools of economics and apply them in formulating and analyzing economic models, theories, and policies, and to conduct research in economics.

Admission Criteria

Students holding a Bachelor's degree in Economics, or any subject recognized by Tribhuvan University, with at least 150 marks or eight credits in economics, mathematics, statistics, or econometrics (either in one of these subjects or a mix of them), are eligible to sit the entrance examination. Only students who pass the entrance examination are eligible for admission into the MA in Economics programme.

Duration and Semester System

The programme lasts two years, divided into four semesters, each around 16 weeks. During these weeks, students attend classes and engage in study-related activities designed to facilitate learning and academic progress. There is an examination at the end of each semester.

Evaluation Criteria

Examination Scheme	Marks
Internal Assessment	40
External Assessment	60
Total	100

Internal evaluation includes a written examination, term paper writing, presentation/participation, and attendance. Marks for internal evaluation are allocated as follows:

Component	Marks
Pre-board examination	20
Term paper / case study	10
Presentation / participation / evaluation by teacher	5
Attendance	5

Students must pass all subjects in the internal assessment to be eligible to sit the final examination, as per the rules of the semester system of the Faculty of Humanities and Social Sciences, Tribhuvan University.

The pre-board examination is conducted one month prior to the final examination. Students are required to submit their term papers/case studies mid-way through the session, with guidelines provided by the class teacher.

The Dean's Office conducts the 60 percent external evaluation based on the final written examination. Evaluation of practicum courses, however, is carried out by the respective department and campus.

Model Questions for the Final Examination

A total of eight questions are asked in the final examination of each paper.

• Group A — three long-answer questions; students must attempt any two for 30 marks.
• Group B — five questions; students must attempt any three for 30 marks.

Course Structure

Cr = Credit

Semester I

Code	Subject	Cr
Econ 501	Microeconomics I	3
Econ 502	Macroeconomics I	3
Econ 503	Mathematics for Economics	3
Econ 504	Economic Development and Planning I	3
Econ 505	History of Economic Thought	3
	Total Credit	15

Semester II

Code	Subject	Cr
Econ 551	Microeconomics II	3
Econ 552	Macroeconomics II	3
Econ 553	Statistics for Economics	3
Econ 554	Economic Development and Planning II	3
Econ 555	General Equilibrium and Welfare Economics	3
	Total Credit	15

Semester III

Code	Subject	Cr
Econ 601	Monetary Economics	3
Econ 602	Public Economics I	3
Econ 603	Basic Econometrics	3
Econ 604	Research Methodology	3
	Option (any one of):	3
Econ 605-1	Mathematical Economics
Econ 605-2	Environmental Economics
Econ 605-3	Managerial Economics
Econ 605-4	Energy Economics
Econ 605-5	Demography and Health Economics
Econ 605-6	Economics of Agriculture Development
	Total Credit	15

Semester IV

Code	Subject	Cr
Econ 651	Financial Economics	3
Econ 652	Public Economics II	3
Econ 653	Nepalese Economy	3
Econ 654	Thesis	6
	Optional (any one of):	3
Econ 655-1	Advanced Econometrics
Econ 655-2	Natural Resource Economics
Econ 655-3	International Trade and Finance
Econ 655-4	Energy Policy and Financing
Econ 655-5	Economics of Human Resource Development
Econ 655-6	Economics of Tourism
	Total Credit	18

Grand Total: 63 credits

Econ 501 — Microeconomics I

Semester I · Credit Hours 3 · Full Marks 100 · Pass Marks 50 · Lecture Hours 48

Course Objective: This course is designed to provide students with a foundation in the core concepts and methods of microeconomics, strengthening their research skills and overall understanding of microeconomic problems. At the end of the course, students should be able to understand microeconomic theories and issues, develop microeconomic models, and analyze them with appropriate techniques.

Unit I: Methodology in Economics (6 Hours)

Definition and significance of methodology in economics; philosophical foundation of economic methodology: positivism, rationalism, empiricism, constructivism; methods of economic analysis: deductive, inductive and hypothetico-deductive, static, comparative static and dynamic.

Unit II: Scientific Approach in Economics (6 Hours)

Concept, principles & relevance of scientific method in economics; economics as science; role of assumptions in economics and relevance of assumption in scientific study; falsifiability in economics; models in economics — definition, importance, types (economic and econometric), and choice between models; general features of economic models.

Unit III: Consumer Behaviour and Theory of Demand (12 Hours)

Consumer preferences, utility function and its types; budget constraints, consumer's equilibrium, price effect, income effect and substitution effect; derivation of ordinary and compensated demand curves; indirect utility function; expenditure function; consumption duality; revealed preference theory; Lancaster's theory of demand; linear expenditure system (LES).

Unit IV: Theory of Production (12 Hours)

Concept of production function; production technology and their properties (homogeneous, homothetic, linear, Cobb-Douglas, CES, Leontief); producer's equilibrium (least cost combination of input, output maximization, profit maximization); derivation of cost function from production function; cost curves; empirical estimation of cost.

Unit V: Market Theories (12 Hours)

Price and output determination in perfectly competitive market, monopoly; price discrimination under monopoly, multi-plant monopolist; monopolistic competition in short-run and long-run; Chamberlin's model of monopolistic competition, peak load pricing, transfer pricing, dumping; policy implications in the market: tax, subsidy, price and quantity rationing.

References

• Blaug, M. (1992). The methodology of economics: Or, how economists explain. Cambridge University Press.
• Cowell, F. (2006). Microeconomics: Principles and analysis. Oxford University Press.
• Friedman, M. (1953). Essays in positive economics. University of Chicago Press.
• Gravell, H. & Rees, R. (2004). Microeconomics (3rd ed.). Pearson.
• Koutsoyiannis, A. (1979). Modern microeconomics (2nd ed.). Macmillan.
• Mas-Colell, A., Whinston, M. D., & Green, J. (1995). Microeconomic theory. Oxford University Press.
• Nicholson, W. (2005). Microeconomic theory: Basic principles and extensions (9th ed.). Thomson.
• Salvatore, D. (2009). Principle of microeconomics (5th ed.). Oxford University Press.
• Varian, H. R. (2009). Microeconomic analysis (3rd ed.). Viva Books.

Econ 502 — Macroeconomics I

Semester I · Credit Hours 3 · Full Marks 100 · Pass Marks 50 · Lecture Hours 48

Course Objective: The objective of this course is to provide advanced knowledge on macroeconomic analysis. Upon completion, students will be able to understand analytical tools and apply them in formulating and analyzing economic models, theories, and policies.

Unit I: Introduction (4 Hours)

Introduction to macroeconomics; economic performance — output, output gap, unemployment, inflation, exchange rate, budget deficit, trade deficit, interest rate, instability of output, stock and flow variables; macroeconomic policy goals.

Unit II: National Income Accounting (10 Hours)

Key concepts of national income accounting; measurement of national income: expenditure approach, income approach, and value-added approach; sector accounting — household sector, business sector, government sector, and rest-of-world sector, and consolidated national account; national income accounting practices in Nepal; limitations.

Unit III: Classical Macroeconomics: Money, Price and Interest (6 Hours)

Classical theory of employment and output; Say's law of markets; quantity theory; theory of interest; complete classical system; applicability and limitations.

Unit IV: Basic Keynesian Model (6 Hours)

Basic Keynesian model of two, three, and four sector economy; multiplier analysis in two, three, and four sector economy (derivation, interpretation, and application).

Unit V: Keynesian System with Money, Income, and Interest (8 Hours)

Money in the Keynesian system; goods market equilibrium — the IS curve, factors affecting the slope and position of the IS curve; money market equilibrium — the LM curve, factors affecting the slope and position of the LM curve; system equilibrium with IS and LM curves; policy effects.

Unit VI: Keynesian System with Aggregate Demand and Aggregate Supply (8 Hours)

Derivation of the aggregate demand curve; derivation of the aggregate supply curve; effect of change in money supply and government expenditure on interest rate, price, output, and employment under rigid money wage; effects of shifts in the aggregate supply curve.

Unit VII: Consumption Demand (6 Hours)

Short-run and long-run consumption function; relative income hypothesis, permanent income hypothesis, and life-cycle hypothesis.

References

• Branson, W. H. (1983). Macroeconomic theories and policy (2nd ed.). All India Book Seller.
• Central Bureau of Statistics. (2007). Manual in national income accounts. National Planning Commission.
• Dornbush, R. & Fischer, S. (1987). Macroeconomics (4th ed.). McGraw Hill.
• Dornbush, R., Fischer, S., & Startz, R. (2012). Macroeconomics (10th ed.). McGraw Hill.
• Froyen, R. T. (2003). Macroeconomics: Theories and policies (7th ed.). Pearson Education.
• Froyen, R. T. (2016). Macroeconomics: Theories and policies (10th ed.). Pearson Education.
• Levacic, R. (1978). Macroeconomics. Macmillan.
• Ott, D. J., Ott, F. A., & Yoo, J. G. (1975). Macroeconomic theory. Kogakusa, McGraw Hill.
• Shapiro, E. (Various editions). Macroeconomic analysis. Galgotia Publication Pvt. Ltd.

Econ 503 — Mathematics for Economics

Semester I · Credit Hours 3 · Full Marks 100 · Pass Marks 50 · Lecture Hours 48

Course Objectives: This course aims to equip students with foundational mathematical tools for economic analysis, including real analysis, optimization, linear programming, optimal control theory, and differential and difference equations. Students will gain the skills to understand number systems, sequences, and series; formulate and solve optimization problems using constrained and unconstrained techniques; develop and solve linear programming problems; analyze continuous-time and discrete-time economic models using differential and difference equations; and conduct stability analysis for dynamic systems.

Unit I: Real Analysis (4 Hours)

Sets and functions; number systems and properties of ℝⁿ; sequences and series; limits and continuity.

Unit II: Optimization (12 Hours)

Concepts of differentiation and integration; unconstrained optimization; constrained optimization using Lagrange multipliers; convexity and optimization; Kuhn-Tucker conditions; economic applications — maximization of profit functions, utility maximization, cost minimization.

Unit III: Differential Equations (9 Hours)

First-order differential equations with constant coefficient and constant term; first-order differential equations with variable coefficient and variable term; second-order differential equations with constant coefficient and constant term; second-order differential equations with constant coefficient and variable term; stability analysis of dynamic systems; economic applications — economic growth models, differential models for investment and savings.

Unit IV: Difference Equations (9 Hours)

First-order difference equation with constant coefficient and constant term; first-order difference equation with constant coefficient and variable term; second-order difference equations with constant coefficient and constant term; second-order difference equations with constant coefficient and variable term; stability analysis of dynamic systems; economic applications — analyzing business cycle models, models of population growth, economic stability.

Unit V: Optimal Control Theory (6 Hours)

Introduction to control theory; the Hamiltonian and Pontryagin's maximum principle; economic applications — optimal investment, consumption, and production planning in a dynamic context.

Unit VI: Linear Programming (7 Hours)

Formulation of linear programming problems; the simplex method; duality theory and economic applications; economic applications — resource allocation, optimization in production and distribution models.

References

• Chiang, A. C. (1967). Fundamental methods of mathematical economics. McGraw-Hill. (4th ed. 2005, with Wainwright, K.)
• Chiang, A. C. (1992). Elements of dynamic optimization. McGraw-Hill / Waveland Press.
• Simon, C. P., & Blume, L. (1994). Mathematics for economists. W.W. Norton & Company.
• Hoy, M., Livernois, J., McKenna, C., Rees, R., & Stengos, T. (2011). Mathematics for Economics (3rd ed.). MIT Press.
• Bartle, R. G., & Sherbert, D. R. (2011). Introduction to real analysis (4th ed.). Wiley.
• Bazaraa, M. S., Jarvis, J. J., & Sherali, H. D. (2010). Linear programming and network flows (4th ed.). Wiley.
• Bronson, R., & Costa, G. (2013). Differential equations. McGraw-Hill.
• Edwards, C. H., & Penney, D. E. (2020). Differential equations and boundary value problems: Computing and modeling (6th ed.). Pearson.
• Elaydi, S. (2005). An introduction to difference equations (3rd ed.). Springer.
• Gandolfo, G. (2009). Economic dynamics (4th ed.). Springer.
• Hillier, F. S., & Lieberman, G. J. (2020). Introduction to operations research (11th ed.). McGraw-Hill.
• Kamien, M. I., & Schwartz, N. L. (2012). Dynamic optimization: The calculus of variations and optimal control in economics and management (2nd ed.). Dover Publications.
• Léonard, D., & Van Long, N. (1992). Optimal control theory and static optimization in economics. Cambridge University Press.
• Luenberger, D. G., & Ye, Y. (2015). Linear and nonlinear programming (4th ed.). Springer.
• Rudin, W. (1976). Principles of mathematical analysis (3rd ed.). McGraw-Hill.
• Seierstad, A., & Sydsæter, K. (1987). Optimal control theory with economic applications. Elsevier Science.
• Sundaram, R. K. (1996). A first course in optimization theory. Cambridge University Press.
• Sydsæter, K., Hammond, P., Seierstad, A., & Strøm, A. (2008). Further mathematics for economic analysis. Pearson.

Econ 504 — Economic Development and Planning I

Semester I · Credit Hours 3 · Full Marks 100 · Pass Marks 50 · Lecture Hours 48

Course Objective: This course offers advanced studies with an application perspective on development and planning, with a special focus on perspectives on development, theories of development, poverty, inequality, unemployment, current development issues, and planning.

Unit I: Perspectives on Development (10 Hours)

Meaning of economic growth and development; alternative concepts of development; income-based and capability-based approach of development; new development paradigm; sustainable development; new structural economics: a framework for rethinking development; thinking big and thinking small.

Unit II: Theories and Strategies of Development (10 Hours)

Classical theory; structural change model: Lewis two-sector model, Harris-Todaro model, balanced and unbalanced growth models; dependency and world system theory; Schultz approach of agricultural growth and development and critical minimum effort theory.

Unit III: Contemporary Development Issues (10 Hours)

Climate change and environmental sustainability; technological change and digital divide; gender and development; demographic shift and dividend; conflict, peace, and development; black economy; impacts of liberalization, globalization, and privatization.

Unit IV: Poverty, Inequality and Unemployment (8 Hours)

Poverty and inequality: measurement (monetary and non-monetary); types, measurement, and consequences of unemployment; assessment of policies geared towards poverty reduction, unemployment, and inequality; role of the state in policy reform.

Unit V: Development Planning (10 Hours)

Concept and rationale of planning; planning in socialist, capitalist, and mixed economies; periodic and perspective plans; local development planning; regional development planning; project planning; growth pole and growth center in planning; planning in a federal system.

References

• Alkire, S., Roche, J. M., Ballon, P., Foster, J., Santos, M. E., & Seth, S. (2015). Multidimensional poverty measurement and analysis. Oxford University Press.
• Banerjee, A. V., & Duflo, E. (2011). Poor economics: Rethinking poverty and the ways to end it. Public Affairs.
• Basu, K. (2002). Analytical development economics. OUP.
• Brück, T., Justino, P., & Martin-Shields, C. P. (2017). Conflict and development: Recent research advances and future agendas (WIDER Working Paper 2017/178).
• Chang, H. (2003). Globalization, economic development and role of the state. Zed Books.
• Chaubey, P. K. (1995). Poverty measurement: Issues, approaches, and indices. New Age International.
• Cohen, J., & Easterly, W. (2009). What works in development? Thinking big and thinking small. Brookings Institution Press.
• Dale, R. (2004). Development planning. Zed Books.
• Dallor, D., & Paul, C. (2001). Globalization, growth and poverty: Building an inclusive world economy. The World Bank, OUP.
• Das, G., Ajit, K., & Pearce, D. W. (1978). Cost-benefit analysis: Theory and practice. ELBS/Macmillan.
• Hayami, Y. (1997). Development economics. OUP.
• Lin, J. Y. (2012). New structural economics: A framework for rethinking development and policy. World Bank.
• Little, I. M. D., & Mirrless, J. A. (1974). Project appraisal and planning for developing countries. Heinemann.
• Meier, G. M., & Rauch, J. E. (2000). Leading issues in economic development. OUP.
• Potts, D. (2005). Project planning and analysis for development. VIVA Books.
• Ray, D. (2003). Development economics. OUP.
• Sen, A. K. (1992). Inequality reexamined. OUP.
• Stiglitz, J. E. (2002). Globalization and its discontents. Penguin Books.
• Subramanian, S. (2000). Measurement of inequality and poverty. OUP.
• World Bank. (2011). World Development Report: Conflict, security and development. The World Bank.
• Thirlwall, A. P. (1999). Growth and development (6th ed.). Macmillan.
• Todaro, M. P., & Smith, S. C. (2004). Economic development. Pearson Education.
• UNIDO. (1972). Guidelines for project evaluation (Project Formulation and Evaluation Series No. 2).
• World Bank. (2002). Globalization, growth, and poverty: Building an inclusive world economy. Oxford University Press.
• World Development Reports of various years.

Econ 505 — History of Economic Thought

Semester I · Credit Hours 3 · Full Marks 100 · Pass Marks 50 · Lecture Hours 48

Course Objectives: To make students familiar with the evolution of economic ideas, schools of thought, factors influencing the development of economic ideas, and their relevance in their respective eras.

Unit I: Introduction to Oriental and Occidental Economic Thought (10 Hours)

Oriental economic thought — Buddhism: right to live, help and cooperation, consumption and well-being, optimum use of earning, moderation, critical evaluation; Hinduism: wealth creation, social capital, trusteeship and cooperation, critical evaluation; Koutilya's Arthasastra: saptanga theory, economic power (agriculture and trade), state governance, happiness of people, economic diplomacy, and critical evaluation; Confucianism: seeking continuity, resources, source of economic motivation, importance of work, principal economic institutions, wealth distribution, critical evaluation.

Hebrew economic thought: price, interest, wages, agriculture, property, trade, taxes, labor, and Sabbath (holidays/leisure). Roman economic thought: agriculture, life of people, investment, price. Greek economic thought — Plato: division of labor, social classes, value of money, interests; Aristotle: slavery system, value in use and value in exchange, money, private property; Xenophon: division of labor, management of the domestic economy, development of nation, population, and prosperity.

Unit II: Pre-classical Economic Ideas (5 Hours)

Physiocrats: principles; economic ideas — natural order, net products, circular flow of wealth, taxation, trade. Mercantilism: principles; economic ideas — plenty or power, foreign trade, money, price and interest, wages and employment, critical evaluation.

Unit III: Classical Economic Ideas (8 Hours)

Adam Smith: division of labour, theory of value and distribution, economic growth and international trade, public debt and taxation. David Ricardo: theory of distribution, theory of growth, theory of value, theory of international trade. J. S. Mill: philosophy and economic policy, the principle of political economy, theory of growth.

Unit IV: Socialistic Economic Thought (8 Hours)

Review of socialist ideas before Karl Marx: contributions of Saint Simon, Sismondi, Robert Owen, Charles Fourier, Louis Blanc, Pierre Joseph Proudhon. Karl Marx: philosophy, labour theory of value, theory of price, theory of development, business cycle; critical evaluation of Marxist economic ideas.

Unit V: Post-classical Economic Thought (10 Hours)

Neo-classical economics: overview, Jevons, Walras, Menger, Wickseed, Marshall, Clark. Institutional economics — Thorsten Veblen: economic ideas, the theory of the leisure class, critical evaluation. Welfare economics — John A. Hobson: ideas of economic welfare; Arthur Cecil Pigou: idea of economic welfare. New economics — J. M. Keynes: theory of income and employment, theory of economic development.

Unit VI: Economic Thought of Nepal (7 Hours)

Ancient economic thought: Kirat and Lichhavi period — agriculture as an economic foundation, cooperation. Medieval economic thought: Malla period — agriculture and trade. Modern economic thought: Dibya Upades of P. N. Shah, closed economy of Rana rule, planned economy in the Panchayat period, planned and liberal economy in the present context.

References

• Ghosh, B. N. & Ghosh, R. (2010). Concise history of economic thought. Himalaya Publishing House.
• Rist, C., & Gide, C. (2022). A history of economic doctrines from the time of the physiocrats to the present day. DigiCat.
• Haney, L. H. (1997). History of economic thought. Surjeet Publication.
• Paul, R. R. (2011). History of economic thought. Kalyani Publishers.
• Roll, E. (1988). History of economic thought. Oxford University Press.
• Schumpeter, J. A. (1954). History of economic analysis. Oxford University Press.
• Vaish, M. C. (1998). History of economic thought. S. Chand and Company.
• Chang, J. L. (1987). History of Chinese economic thought: Overview and recent works. History of Political Economy, 19, 481-502.
• Poznanski, K. (2015). Confucian economics: The world at work. World Review of Political Economy, 6(2), 208-251.

Econ 551 — Microeconomics II

Semester II · Credit Hours 3 · Full Marks 100 · Pass Marks 50 · Lecture Hours 48

Course Objective: This course strengthens research skills and understanding of microeconomic problems beyond Microeconomics I, developing microeconomic models and analyzing them with appropriate techniques.

Unit I: Game Theory (8 Hours)

Concept of game theory; elements of a game — player, strategies, payoffs; rules of a game — simultaneous move, sequential move; types of games — zero-sum game, non-zero-sum game; dominant strategy and Nash equilibrium; mixed strategies and equilibrium; the Prisoner's Dilemma; application of game theory in economics.

Unit II: Oligopoly Market (10 Hours)

Non-collusive and collusive models. Non-collusive: Cournot, Bertrand, Stackelberg, Chamberlin, Edgeworth, Sweezy (kinked demand curve model). Collusive: cartel and price leadership. Policy implications in oligopoly markets.

Unit III: Managerial Theories of the Firm (10 Hours)

Baumol's theory of sales revenue maximization; Williamson's model of managerial discretion; Marris model of growth rate maximization; behavioral model of Cyert and March; Bain's limit pricing model.

Unit IV: Pricing of Factor of Production (10 Hours)

Marginal productivity theory; product exhaustion theorem; factor pricing in imperfect markets — monopoly factor market, monopsony factor market, bilateral monopoly, monopolistic product and perfectly elastic supply of factor, provision of trade unions in the labor market; subsistence and standard-of-living theories of wage rate; pricing of fixed factor — determination of rent and quasi-rent.

Unit V: Economics of Information and Uncertainty (10 Hours)

Properties of information; the value of information; moral hazard; adverse selection; information and insurance; principal-agent model; risk and uncertainty in consumption — expected value, the von Neumann-Morgenstern theorem, risk aversion; the Allais paradox and the Ellsberg paradox; gambling and insurance; the Friedman-Savage hypothesis.

References

• Cowell, F. (2006). Microeconomics: Principles and analysis. Oxford.
• Gravell, H., & Rees, R. (2004). Microeconomics (3rd ed.). Pearson.
• Henderson, J. M., & Quandt, R. E. (2003). Microeconomic theory: A mathematical approach (3rd ed.). Tata McGraw-Hill.
• Koutsoyiannis, A. (1979). Modern microeconomics (2nd ed.). Macmillan.
• Maddala, G. S., & Miller, E. (2004). Microeconomics (2nd ed.). Tata McGraw-Hill.
• Mas-Colell, A., Whinston, M. D., & Green, J. (1995). Microeconomic theory. Oxford University Press.
• Nicholson, W. (2005). Microeconomic theory: Basic principles and extensions (9th ed.). Thomson.
• Salvatore, D. (2009). Principle of microeconomics (5th ed.). Oxford University Press.
• Varian, H. R. (2009). Microeconomic analysis (3rd ed.). Viva Books.

Econ 552 — Macroeconomics II

Semester II · Credit Hours 3 · Full Marks 100 · Pass Marks 50 · Lecture Hours 48

Course Objective: This course provides advanced knowledge on macroeconomic analysis of various schools, enabling students to apply analytical tools in formulating and analyzing economic models, theories, and policies.

Unit I: Investment Demand (5 Hours)

Basic concepts; accelerator theory; Jorgensen's theory; factors affecting investment demand.

Unit II: Open Economy — Mundell-Fleming Model (6 Hours)

Derivation of the balance-of-payment curve (BP); open economy equilibrium; monetary policy under a fixed exchange rate regime; fiscal policy under a fixed rate regime; monetary policy under a flexible exchange rate regime; fiscal policy under a flexible exchange rate regime (IS, LM, and BP approach).

Unit III: Monetarist Approach (6 Hours)

Monetarist propositions; monetarist divergence from the Keynesian position; price and output determination; monetary and fiscal policy.

Unit IV: Recent Development in Macroeconomics (8 Hours)

New classical macroeconomics — rational expectations, price/output/employment determination; real business cycle theory; new Keynesian macroeconomics.

Unit V: Growth Theories (11 Hours)

Basic concepts; Harrod model; Domar model; comparison of Harrod and Domar models; Solow growth model — steady-state equilibrium, stability of equilibrium, golden rule of capital accumulation, transitional dynamics, convergence proposition, policy implications; endogenous growth models — basic features, implications of endogenous technological change.

Unit VI: Business Cycles Theories (6 Hours)

Kaldor model, Samuelson model, and Hicks model.

Unit VII: Macroeconomic Stabilization (6 Hours)

Concepts; economic disturbances; econometric models for policy making; lags in the effects of monetary and fiscal policies; activist policy; rules vs. discretion; the financial crisis of 2007.

References

• Barro, R. J., & Martin, X. J. (2004). Economic growth. MIT Press.
• Branson, W. H. (1983). Macroeconomic theories and policy (2nd ed.). All India Book Seller.
• Dornbush, R., & Fischer, S. (1987). Macroeconomics (4th ed.). McGraw Hill.
• Froyen, R. T. (2003). Macroeconomics: Theories and policies (7th ed.). Pearson Education.
• Gordon, R. J. (1990). What is new Keynesian economics? Journal of Economic Literature, 27, 1115-1171.
• Hicks, J. R. (1950). A contribution to the theory of the trade cycle. Oxford.
• Kaldor, N. A. (1940). Model of the trade cycle. The Economic Journal, 50(197), 78-92.
• Kaldor, N. A. (1957). A model of economic growth. The Economic Journal, 67(268), 591-624.
• Levacic, R. (1978). Macroeconomics. Macmillan.
• Ott, D. J., Ott, F. A., & Yoo, J. G. (1975). Macroeconomic theory. Kogakusa, McGraw Hill.
• Sen, A. K. (Ed.). (1960). Growth economics. Penguin Books.
• Shapiro, E. (Various editions). Macroeconomic analysis. Galgotia Publication Pvt. Ltd.
• Surrey, M. J. C. (Ed.). Readings in macroeconomics. Oxford.

Econ 553 — Statistics for Economics

Semester II · Credit Hours 3 · Full Marks 100 · Pass Marks 50 · Lecture Hours 48

Course Objectives: This course equips students with advanced statistical tools and techniques necessary for economic analysis and research — understanding and applying statistical methods relevant to economics, interpreting and analyzing economic data, conducting hypothesis testing and regression analysis, and using statistical software to analyze and present data effectively.

Unit I: Probability Theory and Distributions (8 Hours)

Fundamental concepts — definitions, rules, conditional probability, and Bayes' theorem; random variables — types and mathematical expectations; discrete probability distributions — binomial, Poisson, and applications in economics; continuous probability distributions — normal, exponential, and their economic applications.

Unit II: Sampling (8 Hours)

Concept of population and sample; importance of sampling in economic research; types of sampling methods — probability sampling (simple random, stratified, systematic, cluster, multi-stage) and non-probability sampling (convenience, judgment, quota, snowball); sampling distribution — mean, proportion, and the Central Limit Theorem; standard error; determination of sample size; applications of sampling in economic surveys and data collection.

Unit III: Estimation (8 Hours)

Concepts of population parameter and sample statistic; types of estimation — point estimation and interval estimation (confidence intervals for population mean, proportion, and variance); methods of estimation — method of moments, ordinary least squares, maximum likelihood; properties of estimators for small and large samples; applications of estimation in economics.

Unit IV: Hypothesis Testing (8 Hours)

Fundamentals of hypothesis formulation; errors in testing — Type I and Type II errors, power of the test; parametric tests — Z-test, t-test, and F-test; non-parametric tests — chi-square test and applications.

Unit V: Correlation Analysis (6 Hours)

Concept and types of correlation and scatter plots; Pearson's and Spearman's correlation coefficients; significance test of the correlation coefficient; partial and multiple correlation analysis; application of correlation in economic data.

Unit VI: Regression Analysis (10 Hours)

Introduction to regression analysis — simple and multiple regression models; assumptions of the Classical Linear Regression Model (CLRM); estimation of regression parameters using Ordinary Least Squares (OLS); interpretation of regression coefficients; goodness of fit (R² and adjusted R²) and the ANOVA table.

References

• Freund, J. E., & Miller, M. (2004). Freund's mathematical statistics: With applications. Pearson Education.
• Gujarati, D. N., & Porter, D. C. (2009). Basic econometrics. McGraw Hill.
• Gupta, S. C., & Kapoor, V. K. (2021). Fundamentals of mathematical statistics. Sultan Chand & Sons.
• Hogg, R. V., McKean, J., & Craig, A. T. (2020). Introduction to mathematical statistics. Pearson Education.
• Mood, A. M., Graybill, F. A., & Boes, D. C. (2017). Introduction to the theory of statistics. McGraw Hill.
• Spiegal, M. R., Srinivasan, R. A., & Schiller, J. J. (2000). Schaum's outline of theory and problems of probability and statistics. Erianga.

Econ 554 — Economic Development and Planning II

Semester II · Credit Hours 3 · Full Marks 100 · Pass Marks 50 · Lecture Hours 48

Course Objectives: This course offers advanced studies with an application perspective on development and planning, focusing on factors affecting development, tools and techniques of planning, reshaping the economy, development financing, and economic cooperation.

Unit I: Factors Affecting Development (10 Hours)

Capital formation; human resource development; natural resources, technology, and development; values, institutions, and civil society; experience, constraints, and prospects of development in the Asian context.

Unit II: Tools and Technique of Planning (12 Hours)

Estimation and use of the capital-output ratio; stages and components of project appraisal; cost-benefit analysis; closed and open input-output model — introduction, structure, components, and solution; SAM and SAM multiplier.

Unit III: Reshaping the Economy (10 Hours)

Implications of the global trading system on developing countries; governance and globalization in the context of LDCs; safety nets; corporate social responsibility; special economic zones and their impact; fiscal federalism.

Unit IV: Financing Development (8 Hours)

Private sector and NGOs; government revenue; foreign aid; foreign investment; remittance; green finance and climate bonds; blended finance; public debt and debt crisis.

Unit V: Regional Economic Cooperation and International Organization (8 Hours)

SAARC, ASEAN, BIMSTEC — concept, structure, and working modality; WTO, SAFTA, World Bank (WB), IMF, ADB — structure and function.

References

• Agrawal, A. (2012). Social and economic impact of SEZ in India. OUP.
• Ahluwallia, I. J., & John, W. (2003). The South Asian experience with growth. OUP.
• Anand, S., & Sen, A. (1995). Gender inequality and human development: Theories and measurement. Background papers for the Human Development Report.
• Bagchi, A. K., & D'costa, A. P. (2012). Transformation and development: The political economy of transition in India and China. Oxford.
• Basu, K. (2002). Analytical development economics. OUP.
• Blakely, E. J., & Bradshaw, T. K. (2003). Planning local economic development: Theory and practice (3rd ed.). Vistar Publication.
• Chandna, R. C. (2004). Regional planning and development. Kalyani Publishers.
• Chang, Ha-J. (2003). Globalization, economic development and role of the state. Zed Books.
• Cherni, J., Daley, B., Dorward, A., Guendel, S., Macartney, J., & Urban, F. (2015). Climate change and development. University of London.
• Damodaran, A. (2010). Encircling the seamless India: Climate change and the global commons. OUP.
• Ghani, E. (Ed.). (2011). Reshaping tomorrow: Is South Asia ready for the big leap? OUP.
• Hayami, Y., & Godo, Y. (2005). Development economics (3rd ed.). OUP.
• Kohli, H. (Ed.). (2011). Asian 2050: Realizing the Asian century. SAGE.
• Lamy, P. (2006). Globalization and global governance.
• Meier, G. M., & Rauch, J. E. (2000). Leading issues in economic development (8th ed.). OUP.
• Nuna, S. (1990). Women and development. National Institute of Educational Planning and Administration.
• Potts, D. (2005). Project planning and analysis for development. VIVA Books.
• Rangarajan, C., & Srivastava, D. K. (2011). Federalism and fiscal transfers in India. OUP.
• Ray, D. (2003). Development economics. OUP.
• Reidar, D. (2004). Development planning. Academic Foundation.
• Rustogi, P. (2003). Gender biases and discrimination against women: What do different indicators say? UNIFEM.
• Smith, G. (2001). Globalization and governance. Annual meeting of the Trilateral Commission, London.
• Stephen, H., & Rao, M. G. (Eds.). (2013). Federal reform strategies. OUP.
• World Bank. (Various years). Annual World Bank conference on development economics / World development reports.
• Thirlwall, A. P. (1999). Growth and development (6th ed.). Macmillan.
• Todaro, M. P., & Smith, S. C. (2013). Economic development (10th ed.). Pearson Education.
• Utting, P., & Clapp, J. (2008). Corporate accountability and sustainable development. OUP.
• Waltz, K. N. (1999). Globalization and governance. Columbia University.
• World Bank. (2010). World Development Report: Development and climate change.

Econ 555 — General Equilibrium and Welfare Economics

Semester II · Credit Hours 3 · Full Marks 100 · Pass Marks 50 · Lecture Hours 48

Course Objectives: This course provides a foundation in general equilibrium and welfare economics, strengthening research skills and understanding of economic problems, and enabling students to develop and analyze microeconomic models with appropriate techniques.

Unit I: Introduction to General Equilibrium (5 Hours)

Concept of circular flow and interdependence of the economy; partial vs. general equilibrium — scope and limitations; existence, uniqueness, and stability of equilibria; excess demand approach to general equilibrium analysis.

Unit II: General Equilibrium of Production and Exchange (12 Hours)

Concept of the Edgeworth box, Pareto efficiency and improvement; efficiency in production, consumption, and product-mix; graphical treatment of the 2×2×2 model of general equilibrium — pure exchange, two-commodity exchange, production & exchange; Walrasian general equilibrium model; general equilibrium and allocation of resources; prices of commodities and factors in the general equilibrium model under perfect competition.

Unit III: Welfare Economics (15 Hours)

Concept of welfare economics; criteria for social welfare — GNP criterion, cardinalist criterion, Bentham's criterion; Pareto optimality — efficiency of distribution of commodities among consumers, efficiency of allocation of factors among firms, efficiency of composition of output; Kaldor-Hicks compensation principle; Scitovsky paradox; Bergson criterion — social welfare function, properties and limitations; maximization of social welfare; determination of the social-welfare-maximizing output-mix, commodity distribution, and resource allocation; welfare maximization and perfect competition; theory of the second best; Arrow's impossibility theorem; Rawls's theory of social justice.

Unit IV: Externalities and Public Goods (8 Hours)

Concept of externalities — production and consumption externalities; externalities and allocative inefficiencies; partial equilibrium model of externalities; solutions to negative externalities — Pigovian tax, Coase theorem; attributes of public goods; optimum provision of public goods; private provision of public goods and inefficiency.

Unit V: Theories of Distribution and Welfare Implications (8 Hours)

Relationship between distribution and social welfare; distribution theories — Ricardo's theory, Kalecki's theory, Kaldor's theory, Marxian theory; policy implications of the distribution theories.

References

• Ahuja, H. L. (2017). Advanced economic theory. S. Chand Publishing.
• Cowell, F. (2006). Microeconomics: Principles and analysis. Oxford University Press.
• Gravell, H., & Rees, R. (2004). Microeconomics (3rd ed.). Pearson.
• Koutsoyiannis, A. (1979). Modern microeconomics (2nd ed.). Macmillan.
• Mas-Colell, A., Whinston, M. D., & Green, J. (1995). Microeconomic theory. Oxford University Press.
• Moore, J. C. (2007). General equilibrium and welfare economics: An introduction. Springer.
• Nicholson, W., & Snyder, C. (2017). Microeconomic theory: Basic principles and extensions (12th ed.). Narela.
• Salvatore, D. (2009). Principle of microeconomics (5th ed.). Oxford University Press.
• Starr, R. M. (2011). General equilibrium theory: An introduction (2nd ed.). Cambridge University Press.
• Varian, H. R. (2009). Microeconomic analysis (3rd ed.). Viva Books.