MA Applied Economics Syllabus.

CDS Thiruvananthapuram MA Applied Economics - Syllabus
CENTRE FOR DEVELOPMENT STUDIES

Thiruvananthapuram
M A A p p l i e d E c o n o mi c s
Structure and Syllabus
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Contents
Introduction Course structure at a glance Course structure SYLLABUS 101 Microeconomics 102 Macroeconomics 103 Statistics 104 Mathematics for Economics 201 Growth and Development 202 - Econometrics 203 International Economics 204 Indian Economic Development 301 - Public Economics 302 - History of Economic Thought 303 - Topics in Applied Econometrics 304 Economics of Technology and Innovation 305 Population and Development 306 - Industrial Organisation 307 - Economic History of Modern India 402 - Environmental Economics 403 - Gender and Development 404 - Labour Economics 405 Law and Economics 406 Issues in Indian Agriculture 407 Issues in Indian Industry 408 - Political Economy, Development and Governance 409 Economics of Project Evaluation 6 7 9 10 13 16 19 20 23 27 29 32 33 34 37 48 50 55 56 58 60 61 64 Page 3 4 5
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INTRODUCTION The MA Programme in Applied Economics at CDS is designed to equip students with an understanding of how the economy works and to make sense of contemporary debates on policy issues. Guided by this objective, the Programme aims to impart analytical skills in economic theory and empirical methodology. The pedagogy delivers this by keeping the Indian and world economies in the background always. A balance between theory and application and the range of topics covered is the hallmark of this course. Fifteen taught courses are followed by a project course where the student learns by applying the theory and methods to an empirical issue of significance. The taught courses fall into one of the three broad groups: Economic theory, methodology and a variety of specialised courses dealing with application of economic theory to selected economic problems. With training in economic theory, tools and exposure to data sets - including surveys - students are well prepared for careers in academic research, teaching, consultancy services both in the governmental and nongovernmental organisations.
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M A A p p l i e d E c o n o mi c s :
Course structure at a glance
Number of courses Compulsory courses (including the Project) Optional courses (currently out of 15) Credits per course (one credit entails 10 contact hours) Number of semesters Number of weeks per semester Total credit requirement for the degree 16 9 7 4 4 14 64
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Course Structure
Credits Semester 1: 4 Compulsory courses 101 Microeconomics 102 Macroeconomics 103 Statistics 104 Mathematics for Economics Semester 2: 4 Compulsory Courses 201 Growth and Development 202 Econometrics 203 International Economics 204 Indian Economic Development Semester 3: Any 4 Optionals from the following 301 Public Economics 302 History of Economic Thought 303 Topics in Applied Econometrics 304 Economics of Technology and Innovation 305 Population and Development 306 Industrial Organization 307 Economic History of Modern India Semester 4: Project and 3 Optionals 401 Project Any three Optionals from the following 402 Environmental Economics 403 Gender and Development 404 Labour Economics 405 Law and Economics 406 Issues in Indian Agriculture 407 Issues in Indian Industry 408 - Political Economy, Development and Governance 409 - Economics of Project Evaluation 4 4 4 4 4 4 4 4 4
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SYLLABUS
C OURSE OUTLINE WITH R EADINGS
101: MICROECONOMICS
The objective of this course is to introduce students to the central concepts, theories and methods in microeconomics. As some of the students are likely to be from a non-economics background, the approach will be gradual, gaining in complexity as the course proceeds. Starting out with the essential topics of consumption and production theory, the instruction proceeds to familiarise students with the basic tools of game theory. The latter are applied to illuminate possible outcomes in the areas of oligopoly and industrial organisation. Advanced topics in microeconomics ranging from general equilibrium theory, moral hazard and adverse selection problems to externalities and market failure complete the course. COURSE OUTLINE: 1. Introduction Here basic principles of economic analysis and economic decision making are introduced particularly for the benefit of students from non-economics background. Chapter 1 of Frank (1997) and chapter 2 and 3 of Krugman and Wells (2005) are the useful references here. 2. Consumer Behaviour Decision making under certainty- Consumer Preferences and Axioms of Preferences - Utility maximization -Indirect utility function - Demand function - Important identities Roys identity - The slutsky equation - Properties of demand functions - Duality in consumption - Revealed preference - Homothetic utility functions - Aggregate demand - aggregation across consumers and goods - Consumer surplus - Uncertainty, expected utility and risk aversion. 3. Producer Behaviour Concept and measurement of input and output-Technology-Convex technology-Technical rate of substitution-Elasticity of substitution-Returns to scale-Homogenous and homothetic production functions-Profit maximization-Profit function and its properties-Derivation of supply and factor demand functions from profit function-Cost minimization-Factor demand functions-Cost function and its properties-Duality 4. Firm Behaviour Competitive markets: partial equilibrium. Monopolywelfare implications price discrimination and its welfare implications. 5. Game theory Extensive and normal form representation of games- Nash equilibrium (in pure and mixed strategies); definition and existence subgame perfection in dynamic games. Applications: strategic behaviour of firms in a market-Bertrand, Cournot and Stackleberg models- and entry deterrence. 6. Factor Markets Labour competitive firm and short run and long run demand for labour imperfect competition and demand for labour Capital financial capital and real capital demand for real capital- the relationship between rental rate and interest rate CAPM Model.
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7. General Equilibrium Theory Exchange- Production and Walrasian Equiblria 8. Information Economics The principal agent problem- monopoly and competitive solutions with full information monopoly and competitive solutions with imperfect information adverse selection the lemon market and adverse selection signalling and screening models optimal contract design in moral hazard applications. 9. Externalities and Market Failure Externalities - public good merit good- club good - Market Failure Second best problems. Suggested Readings: 1. Frank, Robert H. (1997) Microeconomics and Behaviour, The McGraw-Hill Companies, Inc. 2. Krugman, Paul. and Wells, Robin. (2005) Microeconomics, Worth Publishers. 3. Varian, H. R. (1992), Microeconomic Analysis Third Edition, W. W.Norton & Company, New York. 4. Dixit. Avinash., Skeath, Susan. And Reiley, David H. (2010) Games of Strategy 3rd Edition, Viva books New Delhi. 5. Mukherjee, A. (2002), An Introduction to General Equilibrium Analysis, Oxford University Press. 6. Osborne, Martin J. (2009) An Introduction to Game Theory, Oxford University Press.
102: MACROECONOMICS
The objective of the course is to equip the student with an understanding of the principal issues in macroeconomics, ranging from the determination of the level of output and inflation to the policy options available for influencing these variables. In the process the main currents in the subject, from the General Theory to the early monetarist critique and its culmination in the New Classical Macroeconomics are covered. In the spirit of a course in Applied Economics the Indian case will be explicitly referred to where relevant and an account of the recent macroeconomic history of the country provided. National income accounting: The measurement of national income the concept of value added; the essential macroeconomic identities; National Income statistics for India. The determination of output in a market economy: The principle of effective demand and the multiplier; the central role of investment; the foreigntrade multiplier. Employment: The possibility of an underemployment equilibrium; involuntary unemployment as market failure; prices, wages and unemployment; Keynesian Unemployment and Classical Unemployment. Money: The functions of money; money and uncertainty or what gives money its significance; Keynesian versus monetarist perspectives on money; the idea of an endogenous money stock; the role of monetary policy when the money supply is endogenous.
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Stabilisation policy: The Keynesian approach, the neo-classical synthesis and the monetarist critique; Friedman on the use of the Phillips Curve as an instrument of policy; the microfoundations of macroeconomics. The Rational Expectations Revolution: The idea of rational expectations; rational expectations as efficient forecasts; the Lucas Critique. The New Classical Macroeconomics. Dynamic Inconsistency and the Case for Rules. Inflation: The dynamics of inflation; inflation is always and every where a monetary phenomenon; a structuralist model of inflation for India. Budget Deficits and the Public Debt: Ricardian equivalence; the monetisation of the deficit and the public debt; crowding out or crowding in; instability and the Domar condition; Indias Public Debt Statistics. Macroeconomic policy in the open economy: The implication of alternative exchange rate regimes; the relation between inflation and the balance of payments; the Dutch Disease; macroeconomic policy in an open economy; the Mundell Flemming Model; stabilization of the open economy. The global financial crisis: Genesis and implications for the theory. Reading: Amit Bhaduri (1988): Macroeconomics, New Delhi: Macmillan. W. Carlin and D.Soskice (1990) Macroeconomics and the Wage Bargain, Oxford: OUP, Chapters 1-5, J. M. Keynes (1936): The General Theory of Employment, Interest and Money, New York: Harcourt, Brace & Jovanovich, selected chapters. M. Friedman (1968): The role of monetary policy, American Economic Review. N. Kaldor (1976): Inflation and recession in the world economy, Economic Journal. S. Sheffrin (1987): Rational Expectations, Cambridge: CUP. Phelps, E. (1990): Microeconomic Foundations of Employment and Inflation Theory, New York: Norton Phelps, E. (1990) Seven Schools of Macroeconomic Thought, Oxford: Clarendon. Fleming, J.M., "Domestic Financial Policies under Fixed and under Floating Exchange Rates," IMF Staff Papers, November 1962. J. Tobin (1980): Asset Accumulation and Economic Activity, Chicago: Chicago University Press. G. Akerlof and R. Shiller (2009): Animal Spirits; How human psychology drives the economy and why it matters, Princeton: PUP. C. Rangarajan (2004): Select Essays on the Indian Economy, vol. 1, New Delhi: Academic Publishers. Pulapre Balakrishnan (1991): Pricing and Inflation in India, New Delhi: OUP.
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103 : STATISTICS
This module covers the statistical foundations of data analysis including the statistical theory and its applications in social sciences. In particular, this module broadly covers the descriptive statistics, modern exploratory data analysis, theory of probability, standard statistical distributions, estimation and hypothesis testing, nonparametric tests and simple regression and logistic analysis. The specific objective of this module is as follows: To provide an understanding of the basic concepts and methods of Statistics, for application in data analysis. To get statistical skill required for the analysis of socioeconomic data. To provide hands-on training in data analysis (along with computer applications).
Emphasis is on application (including interpretation and analysis) rather than theoretical derivations. The idea is to impart training on how to make an argument with data. Course Outline: Describing and summarising univariate distributions: frequency table, histogram, distinguishing features, mean-based and order-based numerical summaries (descriptive statistics), visual techniques such as box plots, transformation. Introduction to probability, rules of probability, random variables and probability distributions, mean and variance of distributions, joint distribution and its characteristics, standard distributions and their properties, simple random sampling and sampling distributions; Law of large numbers; Central limit theorem. Estimation: Point and Interval estimation; Properties of estimators; Methods of estimation: least square method, method of moments and maximum likelihood. Tests of Significance: tests of mean and proportion, tests of difference in means and proportions, small sample and large sample tests, bootstrap and nonparametric Methods. Bivariate distributions: Contingency tables, joint and conditional distributions, odds-ratio, test of independence, Analysis of variance; Analysis of Covariance. Index Numbers. Introductory sampling methods and large scale sample surveys in India.
Teaching Methods: Classroom lectures, and computer workshops using. R and STATA for data analysis. Evaluations: Written examinations and Assignment/homework.
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Essential Readings
Hamilton, L. (2003) Statistics with STATA, Cengage. (Eight Edition)
Marsh, Catherine (2009) Exploring Data: An Introduction to Data Analysis for Social Scientists, Polity Press, UK, Second Edition
Mukherjee, C., White, H. & Wuyts, M., (1997) Econometrics and Data Analysis for Developing Countries, Routledge, London.
Recommended Readings
Clark, Megan J. and John A. Randal (2010) A First Course in Applied Statistics, 2nd edition. Pearson Education.
Hamilton, Lawrence C. (1990) Modern Data Analysis: A First Course in Applied Statistics, Brooks/Cole, California.
Lewis, Margaret (2011) Applied Statistics for Economists. Routledge.
Moore, D.S. and McCabe, G.P. (2003) Introduction to the Practice of Statistics, W.H. Freeman & Company, New York.
Ott, Lyman R and Longnecker, Michael (2008). An Introduction to Statistical Methods and Data Analysis, Sixth Edition, Brooks/Cole, USA.
Rohwer, Gotz (2012) Models in Statistical Social Research, Routledge.
Sweet, Stephen A and Karen Grace-Martin (2008). Data Analysis with SPSS: A First Course in Applied Statistics, 3rd Edition. Allyn & Bacon.
104 : MATHEMATICS FOR ECONOMICS

This is a course on the basic mathematical methods necessary for understanding the modern economics literature. Mathematics provides a logical, systematic framework within which quantitative relationships may be explored, and an objective picture of the reality may be generated. The deductive reasoning about social and economic phenomena naturally invites the use of mathematics. Among the social sciences, economics has been in a privileged position to respond
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to that invitation, since two of its central concepts, commodity and price, are quantified in a unique manner, as soon as units of measurement are chosen. Thus a thorough knowledge of mathematics is indispensable for understanding almost all fields of economics, both applied and theoretical. The goal of the course is to make students understand, assimilate and thus capable of using the mathematics required for studying economics at the masters level. This level of mathematics also represents a great fraction of what is required for studying applying economics at the doctoral level. As a way of showing the importance of mathematics in economics, all mathematical concepts studied in this part of the course will be illustrated with some applications to economics. Course description: The concepts underlying the three analytical spheres of economics, viz., statics, comparative statics and dynamics are adaptations from physics. The present course is intended to deal with some of the quantitative methods in these three spheres of economic analysis. It is structured in 42 hours of lectures and tutorials over 14 weeks of a semester. The details are given below: Introduction: Significance of Mathematics in Economics Static Analysis Real numbers; Set theory; Fuzzy set theory; Relations and functions; Economic equilibrium analysis Linear model: Matrix algebra: Matrix operations; Commutative, associative, distributive laws Transposes; Determinants; Nonsingularity; Laplace expansion; Matrix inversion; Cramers rule; Applications in Economics; Input-output model Comparative Statics The derivative; Limit; Continuity; differentiability; Rules of differentiation; Partial differentiation; Total differentials; Total derivatives; Implicit functions; Applications in Economics Optimization: First and second derivative tests; Exponential function: Derivatives; Logarithmic function: Derivatives; Applications in Economics Functions of two or more variables: Second order partial derivatives and total differentials Finding maximum/minimum: Unconstrained optimization; Quadratic forms; Characteristic roots; Concavity and convexity; Applications in Economics Constrained optimization: Classical Programming; Lagrange multiplier; Second order condition; Homogeneous functions; Homotheticity; Eulers theorem; Cobb-Douglas function; CES function; Translog Function; Applications in Economics
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Dynamics Rules of integration; Indefinite integrals; Definite integrals; Improper integrals; Applications in Economics; Domar Growth model First order difference equations; Dynamic stability of equilibrium; Applications in Economics: Cobweb model; Harrod model Second order difference equations; Applications in Economics: Samuelson trade cycle model Dynamic Optimization: Discrete Time and Continuous Time Mathematical programming and Game theory Linear Programming; Simplex method; Duality; Non-linear programming; Kuhn-Tucker conditions; Applications in Economics Game theory; The rectangular game as a linear program; duality
Class Format: Lecture/problem solving/discussion Economic theory, critical thinking and problem solving are stressed. Class format will include both individual and group problem solving. After completing the course, the student is expected to be better able to critically evaluate economic theories. They are expected to spend a considerable amount of class time interactively formulating and solving problems and building models. Small groups will often be utilized. They have to view the readings and the lectures as complements rather than substitutes.
Essential Readings Chiang, Alpha C. (2005) Fundamental Methods of Mathematical Economics, 4th edn, McGraw-Hill
Harrison, Michael and Patrick Waldron (2011) Mathematics for Economics and Finance. Routledge.
Melkumian, Arsen (2010) Mathematical Economics. Routledge.
Acemoglu, Daron. (2008) Introduction to Modern Economic Growth Princeton, NJ: Princeton University Press,
Allen, R. G. D. (1959) Mathematical Economics, Second edition, Macmillan. Allen, R.G.D. (1967) Macro-Economic Theory A Mathematical Treatment, Macmillan.
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Chiang, Alpha C. (1999) Elements of Dynamic Optimization. Long Grove, IL: Waveland Press. Dixit, A. K. (1976) Optimization in Economic Theory, Oxford University Press. Haeussler, E. F. and Paul, R. S. (1998) Introductory Mathematical Analysis, Prentice Hall. Henderson, J. M. and Quandt, R. E. (1980) Microeconomic Theory A Mathematical Approach, Third edition, McGraw-Hill. Kamien, Morton I., and Nancy L. Schwartz. (1991) Dynamic Optimization: The Calculus of Variations and Optimal Control in Economics and Management. 2nd ed. San Diego, CA: Elsevier Renshaw, Geoff (2008) Maths for Economics, 2nd edition. OUP. Silberberg, Eugene (1990) The Structure of Economics: A Mathematical Analysis, McGraw-Hill. Simon, Carl P. and Lawrence Blume (1994) Mathematics for Economists, Norton.
Stokey, Nancy L., and Robert E. Lucas, Jr., with Edward C. Prescott. (1989) Recursive Methods in Economic Dynamics. Cambridge, MA: Harvard University Press Sydsaeter, Knut; Peter Hammond, and Arne Strom (2012) Essential Mathematics for Economic Analysis 4th Edition. Pearson education.
Weber, J. E. (1982) Mathematical Analysis, Harper and Row. Yamane, Taro (1985) Mathematics for Economists, Second edition, Prentice Hall.
201: GROWTH AND DEVELOPMENT

Course Objective This course covers important theories on economic growth and selected issues in economic development. First part of this course covers growth models and second part covers some selected issues in economic development. The objective of the course is to familiarise the students with contemporary issues in economic growth and development. 1. Economic growth in the long run This presents the empirics of the long term growth performance of countries in the world. Data on per capita GDP and population growth of a number of countries over a very long time from Maddison (2007) may be used to motivate the students on the basic questions raised in this paper. Suggested Readings: Jones (2001), Galor (2010) 2. Economic Growth, Population and Demography Suggested Readings: Galor (2011), Galor and Weil (1999) and Galor and Weil (2000). 3. Solow model of economic growth Basic Solow model Technology and Solow model Income convergence and explaining differences in growth rates
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Suggested Readings: Jones (2001) 4. Growth models with consumer optimisation (Ramsey, Cass, Coopman Model) Suggested Readings: Barro and Sala-I-Martin (2004) 5. Economics of Knowledge (ideas) Concept of technology Characteristic of knowledge as a commodity and its economic implications. Suggested Readings: Jones (2001),Romer (1990) 6. Endogenous Growth Models Romer Model Grossman and Helpman model-trade and growth Input variety and growth Human capital and Growth-Lucas Model. Suggested Readings: Jones (2001), Grossman and Helpman (1991). 7. History, Expectation and Development Complementarities - increasing returns - issues of coordination balanced and unbalanced growth strategy -role of expectations - complementarities and technological progress - increasing returns and market entry and size of the market. Suggested Readings: Chapter 5 of Ray (1999) 8. Economic inequality and Growth Concept of inequality-economic inequality-inequality and income- inverted-U shape hypothesisinequality and saving-inequality and political redistribution -inequality and capital marketinequality, credit market and occupational choice-inequality and human capital formation. Suggested Readings: Chapters 6 and 7 of Ray (1999) 9. Rural urban interaction Structural approach of development- structure of rural and urban economy-formal and informal sectors - Rural and urban interaction - Lewis model -Rural-Urban migration - Harris and Todaro model. 10. Markets Related to Agriculture Land market-land and rental contracts - contracts and production incentives - land size and productivity-land reform. Labour market- Credit market - features of rural credit market interlinked trans-actions in rural markets - alternative credit policies - market for insurance. Suggested Readings: Chapter 11 to 15 of Ray (1999). 11 Poverty and under-nutrition Concept of Poverty - absolute and relative-temporary and chronic-measures of poverty functional impact of poverty - poverty traps - Poverty, credit and insurance - poverty, nutrition and labour market - poverty and household allocation of resources.
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Suggested Readings: Chapter 8 of Ray (1999) 12 Empirical Development Economics This module aim is to familiarise the students with the randomised trials in development economics. The module would cover the structure and methodology of randomised trails as well as discusses a number of papers which actually implemented field experiments in development economics. The paper also discusses the limitations of field experiments. Suggested Readings: Rodrik (2008) and Duflo, Kremer, and Glennerster (2007). Suggested Readings: 1. Barro, R. J., And X. Sala-I-Martin (2004): Economic Growth- Second Edition. Prentice Hall India Private Ltd, New Delhi. 2. Duflo, E., Kremer, M., And Glennerster, R. (2007): Using Randomisation in Development Economics Research: A Toolkit, in: Handbook of Development Economics - Vol 4, Elsevier-North Holland. 3. Galor, O. (2010): Economic growth in the very long run, in Economic growth, ed. by S. N. Durlauf, and L. E. Blume, pp. 5767. Palgrave Macmillan. 4. Galor, O. (2011): The demographic transition: Causes and consequences, Working Paper 17057, National Bureau of Economic Research. 5. Galor, O., AND D. N. Weil (1999): From Malthusian Stagnation to Modern Growth, American Economic Review (Papers and Proceedings), 89, 150154. 6. Galor, O. (2000): Population, Technology, and Growth: From Malthusian Stagnation to the Demographic Transition and beyond, American Economic Review, 90(4), 806828. 7. Grossman, G. M., AND E. Helpman (1991): Innovation and Growth in the Global Economy. MIT Press, Cambridge MA. 8. Jones, C. I. (2001): Introduction to Economic Growth (Second Edition). W.W.Norton & Company, New York. 9. Maddison, A. (2007): The World Economy (Two-in-One Edition): Volume 1 - A Millennial Perspective, Volume 2 - Historical Statistics. Academic Foundation, New Delhi. 10. 11. Ray, D. (1999): Development Economics, Oxford University Press, New Delhi. Rodrik, D. (2008): The New Development Economics: We shall Experiment, But How Shall We Learn?, Working Paper, Weatherhead Center for International Affairs, Harvard University, Romer, P. M. (1990): Endogenous Technological Change, Journal of Political Economy, 98(5), s71s102.
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202: ECONOMETRICS
Course Objectives: The aim of the course is to provide the students with the theoretical tools and practical experience necessary to do applied econometric research. This course places particular emphasis on estimation and interpretation of the standard linear regression model, and as such the lecture sessions will include a number of illustrations of empirical econometric studies and their possible re-estimation using the same data sets in workshop sessions. Course description: This course offers an introduction to the theory and application of econometric analysis. Students will also apply the techniques learned in this course using Stata/PcGive/E-views/R. The course is structured in 42 hours of lectures and tutorials over 14 weeks of a semester. The details are given below: The Simple (Two-Variable) Linear Regression Model Basic Concepts of Regression Analysis Assumptions of the Simple Regression Model The Method of Ordinary Least Squares (OLS): Estimation and Inference The Multiple Linear Regression Model The Classical Linear Regression Model (CLRM): Assumptions Ordinary Least Squares (OLS): Estimation and Inference Maximum Likelihood Estimation Functional forms and structural change; Growth rates Dummy Variable Regressors and Covariance Analysis Violations of Assumptions Non-Normality Multicollinearity Heteroskedasticity Autocorrelation Generalised Least Squares Endogeneity Generalised Method of Moments Specification Errors Further Topics in Regression Analysis Simultaneous Equations; Identification Problem; Estimation
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Class Format: Lecture/problem solving/discussion Economic theory, critical thinking and problem solving are stressed. Class format will include both individual and group problem solving. The students are expected to spend a considerable amount of class time interactively formulating and solving problems and building models. After completing the course, they are expected to be better able to critically evaluate economic theories. Assessment: Review questions and homework problems will be handed out for each section of the course. Knowledge of these review questions will be very helpful when taking the exams. Students are encouraged to work out answers to these questions and discuss them among themselves. Essential Readings
Dougherty, Christopher (2011) Introduction to Econometrics. Fourth Edition. OUP. Stock, James H., and Mark W. Watson (2006): Introduction to Econometrics, Second Edition, (Addison-Wesley Series in Economics).
Wooldridge, Jeffrey M. (2003): Introductory Econometrics: A Modern Approach, Second Edition, Thomson South Western, USA.
Angrist, Joshua D. and Jorn-Steffen Pischke ( 2008) : Mostly Harmless Econometrics: An Empiricists Companion, Princeton University Press, New Jersey, USA. Dielman, T.E. (2005): Applied Regression Analysis, India Edition, Thomason Brooks/Cole. Greene, William H. (2003): Econometric Analysis, 5th Edition, Pearson Education Inc.,New Jersey. Gujarati, D. N. and Sangeetha (2007): Basic Econometrics, 4th Edition, Tata McGraw-Hill Publishing Company Ltd., New Delhi. Hill, R. Carter, William E. Griffiths, and George G. Judge (1997): Undergraduate Econometrics, John Wiley & Sons, New York. Johnston, J. and John DiNardo, (1997): Econometric Methods, 4th Edition, McGraw-Hill Companies, Inc., London. Judge, G. et al. (1988): Introduction to the Theory and Practice of Econometrics, 2nd Edition, John Wiley & Sons, New York.
Kleiber C, and Zeileis A (2008). Applied Econometrics with R. Springer-Verlag, New York.
Kmenta, Jan (1986): Elements of Econometrics, Macmillan Publishing Company, New York. Lardaro, Leonard (1993): Applied Econometrics, HarperCollins College Publishers, New York.
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Maddala, G. (1977): Econometrics, McGraw Hill Kogakusha, Ltd., Tokyo. Mukherjee, Chandan, Howard White and Marc Wuyt (1998): Econometrics and Data Analysis for Developing Countries, Routledge, London. Nachane, D.M. (2006): Econometrics: Theoretical Foundations and Empirical Perspectives, Oxford University Press, New Delhi. Ramanathan, Ramu (2002): Introductory Econometrics with Applications, 5thedition, Thomson Asia Pte Ltd., Singapore. Studenmund, A.H. (2006): Using Econometrics: A Practical Guide, Pearson Addison Wesley, New York.
Vinod, Hrishikesh D. (2008). Hands-On Intermediate Econometrics Using R World Scientific Publishing Co., Singapore,
Data Sources & References:

Dandekar, V. M. (ed.) (1972): Database of the Indian Economy, Vol. II, Statistical Publishing Society, Calcutta. Government of India (1999): Guide to Official Statistics, 4th Edition, Central Statistical Organisation, New Delhi. Government of India (2010): National Accounts Statistics, Central Statistical Organisation, New Delhi. Government of India (2007): National Accounts Statistics: Sources and Methods, Central Statistical Organisation, New Delhi.
Krishna, K. L. (1997): Econometric Applications in India, OUP, New Delhi.

Minhas, B. S. (ed) (2002): National Income Accounts and Data Systems, Oxford University Press, New Delhi. Mukherjee, M. (1969): National Income of India: Trends & Structure, Statistical Publishing Society, Calcutta. Rao, C. R. (ed.) (1972): Database of the Indian Economy, Vol. I, Statistical Publishing Society, Calcutta. Roy Choudhury, Uma Dutta (1995): National Income Accounting, Macmillan, New Delhi Sivasubramanian, S. (2000) National Income of India in the 20th Century. OUP.
Relevant web sites:

www.rbi.org.in http://mospi.nic.in/mospi_nsso_rept_pubn.htm http://development.thinkingwithdata.com
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203: INTERNATIONAL ECONOMICS

The aim of this course is to provide students with a grounding in the principles of international economics so that they understand the world trade and payment system. The course covers the pure theory of trade and extensions thereof, customs union, and balance of payments adjustment policies under alternative exchange-rate regimes. Next open-economy macroeconomics, including the determination of the exchange rate, is discussed. The consequences of capital mobility are explored and the possibility of international macroeconomic policy coordination considered. Finally, political economy issues in trade are introduced. Introduction: Overview of International Economics Gains from Trade and Pattern of Trade International Trade Theory Comparative Advantage: The Ricardian Model, Empirical Testing of the Ricardian Model, Factor Endowments and the Heckscher-Ohlin Theory: Factor Price Equalization and Income Distribution, Empirical Testing on the H-O Model, The Gravity Model. Economies of Scale, Imperfect Competition and International Trade Monopolistic Competition and Trade, Significance of Intraindustry Trade Dumping and Economies of Dumping International Trade Policy Basic Tariff Analysis, Effects of a Tariff : Consumer and Producer Surplus, The Partial Equilibrium Analysis of Tariffs, The General Equilibrium Analysis of Tariffs, Other Instruments of Trade Policy. The Political Economy of Trade Policy Political Arguments for Free Trade: Free Trade and Efficiency, International Trade Agreements: A Brief History, the Uruguay Round, From the GATT to WTO Free Trade Areas versus Customs Union, Trade Creation and Trade Diversion Exchange Rates and Open-Economy Macroeconomics Foreign Exchange Markets and Equilibrium in the Foreign Exchange Market, Exchange Rate and Relative Prices, Interest Parity: The Basic Equilibrium Condition, Effects of Exchange Rates Changes on Expected Returns. Price Levels and the Exchange Rates in the Long Run The Law of One Price, Purchasing Power Parity, Absolute PPP and Relative PPP, Empirical Testing on PPP, Problems with PPP, The Fundamental Equation of the Monetary Approach. Balance of Payments, Foreign Exchange Market and Trade Elasticities Output and the Exchange Rates in the Short Run due to Changes in Monetary and Fiscal Policy, Macroeconomic Policies and the Current Account Dynamics: Effects of a Devaluation on the Trade Balance, The J Curve Hypothesis, Exchange Rate Pass-through and Inflation, The Marshall-Lerner Condition, Monetary Approaches to BOP, Expenditure-Switching and Expenditure Reducing Policies, Absorption Approach. International Macroeconomic Policy: The International Monetary Policy System, 1870-1973, International Macroeconomic Policy under Gold Standard, 1870-1914, The Bretton Wood System and the IMF
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Fixed Exchange Rates and Foreign Exchange Intervention, Central Bank Interventions and the Money Supply, Money Market Equilibrium under Fixed Exchange Rate, Stabilisation Policies with a Fixed Exchange Rate, Monetary Policy and Fiscal Policy, Managed Floating and Sterilized Intervention. Macro Economic Policy` Coordination Under Floating Exchange Rates The case of Floating Exchange Rate , Monetary Policy Autonomy , Exchange Rate as an Automatic Stabilizer, The Case against Floating Exchange Rate, Fiscal and Monetary Policy and the Degree of Capital Mobility under Fixed and Flexible Exchange Rate, Macroeconomic interdependence in a two country macroeconomic model, Potential gains from policy coordination, Dynamic games and the sustainability and reputation credibility of international cooperation. Speculative Attacks and Currency Crisis Proximate causes of recent financial crisis and comparison with previous crises. First generation speculative attack models, Second generation speculative attack models, Currency and banking crisis, Optimal reserve holdings. Essential Readings: Paul R. Krugman & Maurice Obstfeld, International Economics: Theory and Policy, Addison-Wesley, 1999. Salvatore, International Economics, Prentice Hall, 1998. Caves, Richard, Jeffrey Frankel and Ronald Jones, World Trade and Payments: An Introduction, Harper Collins, 1996. C. Paul Hallwood and Ronald MacDonald, International Money and Finance, Blackwell, 2000.
204: INDIAN ECONOMIC DEVELOPMENT

This course offers an analytical introduction to the main aspects of the Indian economic policy and performance in the post independence period. We examine Indian economic problems in the light of relevant economic theory (ies), and in a comparative perspective. The course is expected to enable the students to appreciate the evolution of the economy, its institutional framework, nuances in using statistical information for analysing public policy, and to get familiar with the issues for research. Topics: (number of lectures) 1. Indian economic growth, distribution and structural change: Comparative historical perspective (3) 2. Planning for economic development: Changing contours of state & market in India (2) 3. Poverty and inequality: Trends and policies (2) 4. Land, labour, agriculture and agrarian relations (2) 5. Industry, public sector and technology (2)
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6. Trade, investment and aid (external sector) (2) 7. Finance and development (3) 8. Monetary policy, and the transmission mechanism (2) 9. Public finance in Indian economy (3) 10. Health and education (2) 11. Evolution of economic reforms: (4) Readings 1. Indian economic growth, distribution & structural change: Comparative historical perspective R M Sundrum (1987)" Growth and Income Distribution in India, Sage. Isher Ahluwalia (1985): Industrial Growth in India: Stagnation since the Mid-sixties, OUP, Delhi. Joshi and Little (1994): India: Macroeconomics and Political Economy, OUP, 1994 T J Byres (1998) (edited): The Indian Economy: Major Debates since Independence, OUP, Delhi. R Nagaraj: Indian Economy Since 1980: Virtuous Growth or Polarisation?, EPW, 2000. S R Osmani: Is Income Equality Good for Growth? in Abu Abdullah and Azizur Rehman Khan edited State, Market and Development, OUP, 1996. 2. Planning for economic development: Changing contours of state and market in India P C Mahalanobis (1955): "The Approach of Operational Research to Planning in India, Sankhya, December. Bhagwati and Chakravarty (1969): "Contributions to Indian Economic Analysis", AER, (Supplement), September. Bhagwati, Jagdish and Padma Desai: India: Planning for Industrialisation, OECD, Sukhamoy Chakravarty (1987): Development Planning; The Indian Experience, Clarendon Press 3. Poverty and inequality:, Trends and policies Michael Lipton and Martin Ravallion (1987): "Poverty and Policy", HBDE Vol. 3B A Vaidyanathan (2000): Poverty and Development Policy, Kale Memorial Lecture, 2000. 4. Land, labour and agrarian relations J Mohana Rao (1998): "Distribution and Growth in Indian Agriculture", in Byres edited: The Indian Economy: Major Debates since Independence, OUP. A Vaidyanathan (1994): "Performance of Indian Agriculture since Independence", in Kaushik Basu edited, Agrarian Questions, OUP. Keith Griffith et al (2002): Poverty and the Distribution of Land, in V K Ramachandran and Madhura Swaminathan edited, Agrarian Studies, Tulika. 5. Industry, public sector and technology K L Krishna (2002): Industrial Growth and Diversification, in Uma Kapila Edited, Indian Economy since Independence, Academic Foundation, Delhi. R Nagaraj (2003): Industrial Policy and Performance: Which Way Now? EPW, Vol. 38, No. 35, August 30. ________ (2006): Public Sector Performance since 1950: A Fresh Look, Economic and Political Weekly, Vol. 41, No. 25, June 24-29, 2006. Deepak Nayyar (1994) (edited) Industrial Growth and Stagnation: The Debate in India, OUP
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6. Trade, investment and aid (external sector) World Development Report 1987 Manmohan Agarwal, "Trade and Development: A Review of Issues", in Dipak Banerjee edited, Economic Analysis and Policy, OUP, 1991. ____________ (1993): India in the World Economy, in Tapas Majumdar edited, Nature, Man and Indian Economy, OUP. R Nagaraj (2003): Foreign Direct Investment in India: Trends and Issues, EPW, Vol. 38, No. 17, April 26. 7. Finance and development World Development Report 1989 RBI (1995): Report of the Committee to Review the Working of the Monetary System (Chairman: Sukhamoy Chakravarty); chapters 1-5. Huw Dixon (1997): "Controversy: Finance and Development", Economic Journal, May. Anand Chandavarkar (199?): "Of Finance and Development: Neglected and Unsettled questions", World Development, 8. Monetary Policy, financial liberalization and and the transmission mechanism (2) 9. Public finance in Indian economy (3) 10. Health and Education 11. Evolution of economic reforms: (4) Vittorio Corbo and Stanley Fischer (1995): "Structural Adjustment, stabilisation and Policy Reform" HBDE, Vol. 3B. John Williamson: "Washington Consensus Revisited", in Louis Emmerij (Ed), Economic and Social Development into the 21st Century, Inter-American Development Bank, Washington D C. Amit Bhaduri and Deepak Nayyar (1994): The Intelligent Persons Guide to Liberalisation, Penguin India. Pranab Bardhan (1990): Symposium on the State and Economic Development, Journal of Economic Perspective, Vol. 4, and No. 3. __________ (2005): Nature of Opposition to Economic Reforms in India, Economic and Political Weekly, Vol. 40, No. 48, November 26December 2, 2005. J Mohan Rao and Amitava Dutt (2005): A Decade of Reforms: The Decade of the 1990s, in Lance Taylor edited, External Liberalisation in India, Post-Socialist Europe and Brazil, Oxford University Press, New York. Arvind Panagariya (2004): India in the 1980s, and the 1990s: Triumph of Reforms, IMF working paper, WP/04/43, Washington D C. Montek Ahluwalia (2002): "Economic Reforms Since 1991: Has Gradualism Worked? Journal of Economic Perspective, Vol. 16, No. 3, Summer. Pranab Bardhan (2005): Nature of Opposition to Economic Reforms in India, Economic and Political Weekly, November 26. Additional References: P C Mahalanobis (1955): "The Approach of Operational Research to Planning in India, Sankhya, December. Bhagwati, Jagdish and Padma Desai: India: Planning for Industrialisation, OECD, Isher Ahluwalia (1985): Industrial Growth in India: Stagnation since the Mid-sixties, OUP, Delhi. Sukhamoy Chakravarty (1987): Development Planning; The Indian Experience, Clarendon Press
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Pranab Bardhan (1984): The Political Economy of Development in India, OUP, Delhi. Jagdish Bhagwati (1991): India in Transition: Freeing the Economy, Clarendon, Delhi. T J Byres (1998) (edited): The Indian Economy: Major Debates since Independence, OUP, Delhi. P Patnaik (1995) (edited): Macroeconomics, OUP, Delhi. Deepak Nayyar (1994)(edited) Industrial Growth and Stagnation: The Debate in India, OUP R M Sundrum (1987)" Growth and Income Distribution in India, Sage. Joshi and Little (1994): India: Macroeconomics and Political Economy, OUP, 1994 Pranab Bardhan (1990): Symposium on the State and Economic Development, Journal of Economic Perspective, Vol. 4, and No. 3. Amit Bhaduri and Deepak Nayyar (1994): The Intelligent Persons Guide to Liberalisation, Penguin India. R Nagaraj (2006): Aspects of Indias Economic Growth and Reforms, Academic Foundation, Delhi.
301 : PUBLIC ECONOMICS

As an important course, the structure of the course has to be exhaustive and rigorous both in terms of theory and applied issues in public economics and public finance. Keeping this objective in mind, entire course has been divided into following broad topics: a. Role of State and Macroeconomic Perspective of Public Finance b. Theory of Taxation and Tax Policy Issues c. Public Expenditure Theory and Applied Issues d. Fiscal Federalism: Theory and Practice e. Fiscal Imbalance and Management of Public Debt f. Current Issues in Indian Public Finance With respect to topic (f), periodic revision of the course will be necessary to cover topics of contemporary relevance. a. Role of State and Macroeconomic Perspective of Public Finance 1. Role of Government: Issues related to market failure and government intervention, 2. Changing Role of State: Issues in Public Finance in a Globalizing World with special emphasis on global public goods 3. Macroeconomics of Public Finance: The Interaction between Fiscal and Monetary Policy and Fiscal Stabilization b. Theory of Taxation and Tax Policy Issues 1. Tax Incidence: The General and Partial Equilibrium Analysis 2. Shifting and Incidence of Taxes 3. Theory of Optimal Taxation 4. Environmental Externalities 5. Environmental Policy and Regulations 6. Pollution Taxes 7. Distributional Considerations in Public Finance 8. Issues Related to Tax Policy in Developing Countries 9. Indian Tax System: An Assessment 10. Practical Issues in Tax reform India 11. An Introduction to Value Added Tax 12. Value Added Tax : Design Issues and Options 13. Value Added Tax in Federal Set-up: Cross Country Experience 14. Value Added Tax and Federalism
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c. Public Expenditure Theory and Applied Issues 1. Pure Theory of Public Expenditure 2. Public Sector Pricing: Pricing of Public Utilities 3. The Median Voter Theorem: Basic Idea and Applications to Public Finance 4. Taxonomy and Growth of Public Expenditure in States 5. Public Expenditure Management & Control 6. Concepts, Measurement and Magnitude of Subsidies 7. Social Infrastructure and Financing Human Development d. Fiscal Federalism: Theory and Practice 1. Theory of Fiscal Federalism: The Decentralization Theorem 2. Fiscal Federalism: An Economic Approach 3. Economic Efficiency Issues in Multilevel Government 4. Assignment Issues in Multilevel Government 5. Theory of Intergovernmental Transfers 6. Issues of Indian Federalism and Intergovernmental Transfers in India 7. Issues in Fiscal Decentralization in India in the context of 73rd and 74th Constitutional Amendments e. Fiscal Imbalance and Management of Public Debt 1. Measurement and Macroeconomic Impact of Deficits: Alternative Paradigms 2. Fiscal deficit and Interest rate: Analytical and Empirical Issues 3. Trends in and financing pattern of deficits in India and its macroeconomic implications 4. Public Debt Burden and Intergenerational Equity 5. Issues Related to Public Debt Sustainability f. Current Issues in Indian Public Finance 1. Trends and Developments in Indian Fiscal Policy: Recent Experience 2. Fiscal Responsibility and Budget Management Act: An Evaluation 3. Pricing of Public Utilities and Non-Tax Revenues: Issues and Reforms 4. State Level Pension Reforms 5. Sub-National Fiscal Reforms in India: Recent Initiatives 6. Implications of the Recommendations of Finance Commission 7. Plan Financing and its Implications 8. Centrally Sponsored Schemes and the Implications for Federalism Reading List Books
1. Laffont, Jean-Jacques (1989): Fundamentals of Public Economics. Boston: MIT. 2. Auerbach, A., and M. Feldstein. Handbook of Public Economics Vol. 1 & 2. Amsterdam: North Holland, 1985 and 1987 3. Atkinson, A, and J. Stiglitz. Lectures in Public Economics. New York: McGraw Hill, 1980, 1987. 4. Alan Peacock (1979): The Economic Analysis of Governments, St Martin Press, New York. 5. Bagchi, A (2005): Readings in Public Finance, Oxford University Press, New Delhi. 6. Jha, Raghbendra Jha (1998), Modern Public Economics, Routledge, London.
Papers

James M. Buchanan (1965): An Economic Theory of Clubs, Economica, New Series, Vol. 32, No. 125. pp. 1-14. Feldstein, Martin (2001) The Transformation of Public Economics Research: 1970-2000, NBER website.
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Agno
Sandmo (1976): Optimal Taxation: An Introduction to Literature, Journal of Public Economics, 6, pp 37-54. Coase (1974): The Lighthouse in Economics, Journal of Law and Economics, Vol. 17, No. 2. (Oct., 1974), pp. 357-376 Samuelson, Paul A. (1955): "A Diagrammatic Exposition of the Theory of Public Expenditures." Review of Economics and Statistics (Nov.) Samuelson, Paul A. (1954): "The Pure Theory of Public Expenditure." Review of Economics and Statistics, 387-389. Berry, Steven T. and Joel Waldfogel (1999): "Public Radio in the U.S.: Does it Correct Market Failure of Cannibalize Commercial Stations?" NBER website or Journal of Public Economics 71, 189-211. Charles Tiebout (1956): "A Pure Theory of Local Expenditures." JPE 64, 416-424.
Additional Readings
Role of State and Macroeconomic Perspective of Public Finance Husted, T. and L. Kenny, 1997. The effect of the expansion of the voting franchise on the size of government. Journal of Political Economy 105, 54-82. Meltzer, A. and S. Richard, 1981. A rational theory of the size of government. Journal of Political Economy 89, 914-927. Mueller, D., 2003. Public Choice III. Cambridge University Press, Cambridge, Chapter 21. Theory of Taxation and Tax Policy Issues Agno Sandmo (1976): Optimal Taxation: An Introduction to Literature, Journal of Public Economics, 6, pp 37-54. Cnossen, Sijbren (1992): Key Questions in Considering a Value Added Tax for central and Eastern Europe Countries, IMF Staff Papers, Vol.39, No. 2, June pp. 211-55 Auerbach, A. and J. Hines, 2002. Taxation and economic efficiency. In: Handbook of Public Economics: vol. 3, A. Auerbach and M. Feldstein (eds), North-Holland, Amsterdam. Fullerton, D. and G. Metcalf, 2002. Tax incidence. In: Handbook of Public Economics: vol. 4, A. Auerbach and M. Feldstein (eds), North-Holland, Amsterdam. Harberger, A.C., 1962. The incidence of the corporation income tax. Journal of Political Economy 70(3), 215-240. Bernheim, D., 2002. Taxation of saving. In: Handbook of Public Economics: vol.3, A. Auerbach and M. Feldstein (eds), North-Holland, Amsterdam. Ramsey, F., 1927. A contribution to the theory of taxation. Economic Journal 37, 47-61 Mirrlees, J.A., 1971. An exploration in the theory of optimum income taxation. Review of Economic Studies 38(2), 175-208. Slemrod, J., 1990. Optimal taxation and optimal tax systems. Journal of Economic Perspectives 4(1), 157-178. Summers, L., 1981. Capital taxation and accumulation in a life cycle model. American Economic Review 71, 533-544. Atkinson, A. and J. Stiglitz, 1976. The design of tax structure: direct versus indirect taxation. Journal of Public Economics 6, 55-75. Boadway, R., M. Marchand and P. Pestieau, 1994. Towards a theory of the direct indirect tax mix. Journal of Public Economics 55, 71-88. Public Expenditure Theory and Applied Issues P. Samuelson. The Pure Theory of Public Expenditures, Review of Economics and Statistics, 954. P. Samuelson, Diagrammatic Exposition of a Theory of Public Expenditure, Review of Economics and Statistics, 1955. P. Samuelson, Aspects of Public Expenditure Theories, Review of Economics and Statistics, 1958. W. H. Oakland, Theory of public goods, in Handbook of Public Economics, Volume 2, 1987. J. Gruber, Public Goods Chapter 7 in Public Finance and Public Policy, Worth, 2007.
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Fiscal Federalism: Theory & Practice

# Oates W. E. (1972): Fiscal Federalism, New York: Hardcourt, Brace and Jovanovich. Oates, Wallace, (1999): An Essay on Fiscal Federalism, Journal of Economic Literature, Vol. XXXVII. Boadway, R., K. Cuff and M. Marchand, 2003. Equalization and the decentralization of revenueraising in a federation. Journal of Public Economic Theory 5(2), 201-228. Boadway, R. and F. Flatters, 1982. Efficiency and equalization payments in a federal system of government: a synthesis and extension of recent results. Canadian Journal of Economics 15(4), 613-633. Musgrave, R., 1999. Fiscal federalism. In: Public Finance and Public Choice.Two contrasting Visions of the State, J.M. Buchanan and R.A. Musgrave (eds), MIT Press, Cambridge, MA, 155-175. Tiebout, C., 1956. A pure theory of local expenditures. Journal of Political Economy 64(5), 416-424.
Fiscal Imbalance and Management of Public Debt

Barro, R. J (1974), Are Government Bonds Net Wealth?, Journal of Political Economy, 82 (6): 1095-1170 Blejer, M. and Adrienne, C. (1993): How to Measure the Fiscal Deficit, International Monetary Fund, Washington DC. Blejer, M. I. and Adrienne, C. (1991): Measurement of Fiscal Deficits: Analytical and Methodological Issues, Journal of Economic Literature, 29(4): 1644-78. Boskin, M. J. (1988): Concepts and Measures of Federal Deficits and Debt and Their Impact on Economic Activity, in Arrow, K.J and Boskin, M.J., (eds.) The Economics of Public Debt, St. Martin Press, New York. Buiter, W.H. (1990): Principles of Budgetary and Financial Policy, Harvester Wheatsheafhm, New York. Cebula, R. (1988): Federal Government Deficits and Interest rates: An Empirical Analysis of United States, 1955-1984, Public Finance, 43(3). 206-210 Cebula, R. (1997): Structural Budget Deficits and the Ex Ante Real Long Term Interest Rate: An Analysis of the Direction of Causality, Public Finance, 52(1): 36-49. Cebula, (1990):Federal Government Borrowing and Interest rates in United States: An Empirical Analysis Using IS-LM Framework, Economia Internationale, 43(2): 159-164 Correia, N, J and Stemitsiotis, L (1995): Budget Deficit and Interest Rates: Is There a Link? International Evidence Oxford Bulletin of Economics and Statistics; 57(4): 425-449 Diamond, P (1965): National Debt in a Neoclassical Growth Model, The American Economic Review, 55(5): 1126-50. Easterly, W., Rodriguez, A. and Schmidt-Hebbel, K. (eds.) (1994): Public Sector Deficits and Macroeconomic Performance, Oxford University Press for the World Bank, Oxford, New York. Gupta, K. L. (1992): Budget Deficits and Economic Activity in Asia, Routledge, London. Gupta, K. L. and Moazzami, B. (1996): Interest Rate and Budget Deficit: A Study of the Advanced Economies, Routledge Studies in Modern World Economies. Heller, P., Haas, Richard.; Mansur, Ahsan S.(1986): A Review of the Fiscal Impulse Measure, IMF Occasional Paper No 44. Tanzi, V and M I Blejer (1988): Public debt and fiscal policy in developing countries in Arrow, K. J. and Michael, J Boskin (eds.) The Economics of Public Debt, International Economic Association, Macmillan Press, London.
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Current Issues in Indian Public Finance

Bagchi, A. and Stern, N. (1994): Tax Policy and Planning in Developing Countries, Oxford University Press, New Delhi. Bagchi, A. and P. Chakraborty (2004): Towards a Rational System of Centre-State Revenue Transfers, Economic and Political Weekly, June 26, pp. 2737-2747. Bagchi, A (2005): Readings in Public Finance, Oxford University Press, New Delhi. Chakraborty, P (2005): Debt Swap in a Low Interest Rate Regime: Unequal Gains and Future Worries, Economic and Political Weekly, July Gulati, I S (1991), Reducing the Fiscal Deficit: Soft and Hard Options, Economic and Political Weekly, July 20. Gulati, I. S. (1994): Calculating the Fiscal Deficit: A Note on Certain Capital Receipts, Economic and Political Weekly, 29(21): 1297 Gulati, I. S. (1987): Centre-State Budgetary Transfers, Sameeksha Trust Little I. M. D. and Joshi, V. (1994) India: Macroeconomics and Political Economy, The World Bank, Washington DC. Mundle, S (1997): Public Finance Policy Issues for India, Oxford University Press, New Delhi NIPFP (1994): Reform of Domestic trade Taxes in India: Issues and Option, National Institute of Public Finance and Policy, New Delhi. Patnaik, P. (2001): On Fiscal Deficits and Real Interest Rates, Economic and Political Weekly, 1160-1163. Rakshit, M K (1994): Money and Public Finance Under Structural Adjustment: The Indian Experience, Economic and Political Weekly, 29(16-17): 923-937. Rakshit, M (2000): On Correcting Fiscal Imbalances in the Indian Economy - Some Perspectives, ICRA Bulletin. Reserve Bank of India (1985): Report of the Committee to Review the Working of Monetary System, Mumbai Rao, Kavita R (2004): Impact of VAT on Central and State Finances, Economic and Political Weekly, Vol.- XXXIX, No.-26, pp. 2773-2777. Rao, M G. (2003): Reform in Central Sales Tax in the Context of VAT, Economic and Political Weekly, Vol.- XXXVIII, No.-6, pp. 627-636.
302 : HISTORY OF ECONOMIC THOUGHT

This course surveys the main schools in the history of the development of economic thought, beginning with that in ancient civilizations. The course concludes with a consideration of the Epic recession and the recent financial crisis. Throughout the course, economic theories will be examined in the light of the interrelationships between theory, policies and conditions, including responses to the current financial and economic global crises. To increase the students understanding and appreciation of the development, progression, and regression of human understanding of how humans do and should act in the ordinary business of life. Beginning with ancient civilizations we will progress historically (as far as we are able) to the present day, taking a broad view of what constitutes economic thought, (e.g., a mixture of institutional, philosophical, policy-oriented, and purely theoretical) put into the general historical context of human affairs (political, religious, social, and scientific).
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Course Outline
I: Economic Thought Before Adam Smith

An Introduction to Epistemology, Methodology and the Philosophy of Science Economic Thought in Ancient Civilizations: China Economic Thought in Ancient Civilizations: India Economic Thought in Ancient Civilizations: The Hebrews and the Bible Economic Thought in Ancient Civilizations: Rome Early Christianity and Economic Thought The Middle Ages: Islamic Contributions Mercantilism and Cameralism The Natural Law-Natural Rights Tradition Cantillon, Turgot and the Physiocrats British Economics: Setting the Stage for Smith
II: Classical Theories of Value, Growth and Distribution Smith and Ricardo on the Theory of Value Later Subjectivist Theories of Value Classicalists on the Determinants of Economic Growth Classical Theories of Income Distribution III:

Classical Economics on Money, Banking, and Policy Classical Monetary Theory Classical Public Finance Says Law, Gluts, and Business Cycles Classical Economic Policy in Theory and Practice
IV: Marxist Economics: Classical Or Not? Marx and the Labour Theory of Value Marxs Theory of Money Marx on Distribution Marxs Theory of Capital Accumulation and Crises
V: Marginalists, Marshall, and Neoclassical Economics

Pre-Marginalism (French, German, and Italian contributions) The Marginal Revolution: Jevons, Menger, and Walras De-homogenized Alfred Marshall and Neo-Classicalism Capital Theory Wicksell, Fisher and the Development of the Quantity Theory Mises and Hayek: On Socialism and Business Cycles Schumpeter, Fisher, & Kalecki on Business Cycles
Keynes. Theory of Money, Investment, and Cycles
VI:

Keynes vs. Says Law and Classical Economics Keynes Theory of Investment Keynes on Money and Speculation Keynes on the Business Cycle
Neoclassical Synthesis and Monetarist Challenge
VII:

The Hicks-Hansen-Samuelson IS-LM Transformation Phillips Curve Debates Friedmans Fundamental Monetarist Propositions Critiques of Monetarism
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VIII:

Economic Thought at Historical Crossroads?
The Rise of Mathematics and Statistics in Economics Public Choice and Constitutional Economics Competition and Knowledge: Perfect, Imperfect and Rivalrous Rational Expectations, Real Business Cycles & Efficient Markets Hyman Minskys Financial Instability Hypothesis. Understanding Epic Recession and Financial Crisis, 2007-09
Assessment: Review questions and homework problems will be handed out for each section of the course. Knowledge of these review questions will be very helpful when taking the exams. Students are encouraged to work out answers to these questions and discuss them among themselves. Readings

Schumpeter, Joseph, 1954. History of Economic Analysis. Blaug, Mark, 1997. Economic Theory in Retrospect, Fifth Edition. Rothbard, Murray N., 1995. Economic Thought Before Adam Smith: An Austrian Perspective on the History of Economic Thought (Vol. I), and Classical Economics: An Austrian Perspective on the History of Economic Thought (Vol. II). Snowden, Brian, et.al. 1994. A Modern Guide to Macroeconomics: An Introduction to Competing Schools of Thought. Backhouse, Roger. 2004. The Ordinary Business of Life: A History of Economics from the Ancient World to the Twenty-First Century. Princeton University Press. Brue, Stanley L. 2000. The Evolution of Economic Thought. Thomson Learning, Canterbury, E. Ray. 2003. The Making of Economics. World Scientific. Coleman, William Oliver. 2002. Economics and Its Enemies: Two Centuries of Anti-Economics. Palgrave MacMillan. Ekelund, Robert. 1996. A History of Economic Theory & Readings in Economic Thought McGrawHill UK. Ekelund, Robert and Herbert, Robert. 1997. A History of Economic Theory and Method McGraw-Hill UK. Rasmus, Jack. 2010. Epic Recession: Prelude to Global Depression. Pluto Press.
303 : TOPICS IN APPLIED ECONOMETRICS

Course Objectives: This is an applied course in data analysis anchored on the theory and method of regression. The aim of the course is to provide the students with the theoretical tools and practical experience necessary to do applied econometric research. This course places particular emphasis on estimation and interpretation of the standard linear regression model, and as such the lecture sessions will include a number of illustrations of empirical econometric studies and their possible re-estimation using the same data sets in workshop sessions.
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Structure and Content The course will focus largely on the ideas and concepts in statistical theory and how to use them meaningfully (and innovatively) in evidence based argumentation. A first course in basic statistics and quantitative techniques will be presumed. The attention will be more on drawing upon the theoretical results to use them in practice. This is a theory-informed data-oriented course. Hands-on practice in data analysis will be provided using the statistical software Stata/SPSS/PcGive. Course Outline Multi-variate Analysis: Discriminant Analysis; Factor Analysis/Principal Component Analysis, Multi-Dimensional Scaling, Cluster Analysis. Models with Limited Dependent Variables: Binary choice models - linear probability model, probit, logit and tobit models: (b) Multi response models - multinomial logit and ordered probit models Systems of Equations: Seemingly unrelated regression (SUR) model Stationary Time Series: (a) Autocorrelations and Partial Autocorrelation Functions; (b) AR, MA, ARIMA models - identification, estimation, testing and forecasting; (c) ARCH/GARCH models; (d) ADL and VAR models Unit roots and Cointegration: (a) Unit roots and Units roots tests; (b) Engle-Granger and Johansen procedures Models for Panel Data: (a) Fixed Effects and Random Effects method; (b) Dynamic Panel Data models
Teaching Methods: Classroom lectures, and computer workshops using. PcGive, Eviews, Gretle and STATA for data analysis.
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Essential Readings
Baltagi, B. H. (2008) Econometric Analysis of Panel Data, 4th edition, John Wiley. Enders, Walter (2009), Applied Econometric Time Series, 3rd Edition, Wiley Everitt, Brian S and Dunn, Graham. 2001. Applied Multivariate Data Analysis. Second Edition. Arnold. Greene, W. (2008), Econometrics Analysis, Pearson
Cheng, Hsian (1986) Analysis of Panel Data, Cambridge University Press. Cryer JD and Chan KS (2008). Time Series Analysis: With Applications in R. 2nd edition. Springer-Verlag, New York. Dougherty, Christopher (2011) Introduction to Econometrics. Fourth Edition. OUP. Granger, C. W. J. (ed.) (2001) Essays in Econometrics: Collected Papers, Edited by Eric Ghyseis et al., Cambridge University Press. Granger, C. W. J. and Newbold, P. (1977) Forecasting Economic Time Series, Academic Press, New York. Hamilton J.D.(1994), Time Series Analysis, Princeton University Press Hendry, David F. (1995) Dynamic Econometrics, Oxford University Press. Maddala G. S. and Kim, In-Moo (1998) Unit Roots, Cointegration and Structural Change, Cambridge University Press. Makridakis, S., Wheelwright, S. C. and McGee, V. E. (1983) Forecasting Methods and Applications, Second edition, John Wiley & Sons. Manly, Bryan F. J. (2005) Multivariate Statistical Methods: A Primer, 3rd Edition, Chapman & Hall/CRC Press. Mills, Terrence C. (1990) Time Series Techniques for Economists, Cambridge University Press. Pfaff, Bernhard (2008). Analysis of Integrated and Cointegrated Time Series with R. 2nd edition. Springer-Verlag, New York. Verbeek, Marno. 2008. A Guide to Modern Econometrics. Third Edition. Wiley. Wooldridge J.M (2009): Introductory Econometrics: A Modern Approach, 4th Edition, Thomson South-Western.
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304 : ECONOMICS OF TECHNOLOGY AND INNOVATION

Course Objective:.
The course takes the students through an engagement with the varied literature dealing with concepts, measurement and analytical methods involved in understanding generation of innovation, its diffusion and the effects of this
diffusion in a typical developing country. After attending this course, the student is not only exposed to the theoretical developments in generation and diffusion of innovations but also its application.
Course Outline: 1. Introductory topics: Nature and importance of innovation- Invention-InnovationIncremental innovation- innovation in the context of developing countries- radical and disruptive innovations and user led innovations. Conceptualization of Innovation: Linear versus Chain-linked models Systemic perspective on Innovation: National System of Innovation- Empirical implementation- Meaning of national systems of innovation in the context of globalizationSectoral and Regional systems of Innovation: explanation of why one sector/region is more innovative than another one Measuring Innovation: Conventional vs new indicators- Composite measures of innovation Understanding the process of diffusion of innovations in an economy- Estimating the relationship between diffusion of innovation and economic growth in a nation: the concept of total factor productivity Policy instruments to stimulate generation of innovation and diffusion of innovations: Financial instruments (R&D tax incentives, Research Grants, Loans and Venture Capital )Non financial instruments (Supply of human resource in science and engineering, industrial standards and clustering) - Measuring the effectiveness of innovation policy instrument Market structure and Innovation: Empirical measurement and evidence across time and space Internal organization of firms and its effect on innovations: organizational culture and innovations International technology transfer: The market for disembodied technologies and issues related to technology transfer: channels of technology transfer; Relationship between technology imports and local technology generating efforts- Changes in international governance rules with respect to promotion of innovation: R&D subsidies, public procurement, and Potential and actual effects of TRIPS compliance of domestic patent regimes.
2. 3.
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10.
MNCs as a source of technology spillovers to local companies: Evidence from across countries and industries
11: Some emerging issues:

a. Effect of technological innovations on wages and inequality in incomes b. Below-the-radar (frugal) innovations-measuring and identifying it and policy instruments for promoting it: the increasing role of the organized sector in pro poor innovations. c. Technological development of India: Policies; India as an emerging high technology giant?
Essential Readings :

Greenhalgh, Christine and Mark Rogers (2010), Innovation, Intellectual Property, and Economic Growth, Princeton: Princeton University Press. Swann, Peter G M ( 2009), The Economics of Innovation, Cheltenham, UK and Northampton, MA, USA: Edward Elgar. Fagerberg, Jan, David Mowery and Richard Nelson (eds., 2004), The Oxford Handbook of Innovation, New York: Oxford University Press. Hall, Bronwyn and Nathan Rosenberg (eds., 2010) Handbook of the Economics of Innovation, Volumes I and II, Amsterdam: Elsevier.
305 : POPULATION AND DEVELOPMENT

A course on Population and Human Development will inform on the following: Divergent views on Population and Development: Theories, debates; Paradigm Shift in Concept and Definition of Development; Population and Development Linkage: challenges, trends and programmatic responses; and Socio-economic implications of Population growth: case studies from developing countries. Course Outline: Trends and patterns of World population Growth, Sources of population Data, Fertility and Nuptiality, Mobility and Mortality, Migration, Urbanization, Concepts of development, Measures of development, Development Theories, Divergent views on population & development, Human development and Millennium Development Goals, Population and Health, Population & Poverty, Population and Aging, Gender Issues and Development, Thoughts on development and environment, Use of Population Data in Development Planning.
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Essential Readings

Birdsall, N, A.C. Kelley and S.W. Sinding (eds.) 2001. Population Matters: Demographic Change, Economic Growth and Poverty in the Developing World, OUP. Birdsall, N. (1988) Analytical approaches to population growth, in H. Chenery & T. N. Srinivasan (eds.), Handbook of development economics, vol. 1 . Bloom, David, E at al. 2003. The Demographic Dividend: A new Perspective on the Economic Consequences of Population Change, Population Matters, Rand, USA. Caldwell, J and P. Caldwell (1986). Routes to low mortality in poor countries, Population and Development Review, 12. Cassen, R. (1994). Population and Development: Old debates and new conclusions, Washington, D.C. Overseas Development Council. Dasgupta, P. (1995) The population problem: Theory and evidence, Journal of economic literature 33, 1879-1902. Demeny, Paul and McNicoll, Geoffrey (1998). The Earthscan Reader in Population and Development, Earthscan Publications Ltd. UK. Dyson, Tim. 2001. A partial theory of world development: the neglected role of the demographic transition in the shaping of modern society, International Journal of Population Geography, 7, 67-90. Dyson, Tim, R.Cassen and Leela Visaria. (eds.) 2004. Twenty-First Century India: Population, Economy, Human Development and Environment, Oxford University Press, Harris, J.R and Michael P. Todaro (1970) Migration, Unemployment and Development: A TwoSector Analysis The American Economic Review, Vol. 60, No. 1. (1970), pp. 126-142.. Kelley, A.C. (1988) Economic consequences of population change in the Third World, Journal of economic literature 26. World Bank, World development report 1984: Population (1984). World Bank, Beyond economic growth Chapter III on World Population Growth (2000)
306 : INDUSTRIAL ORGANIZATION

The course provides a graduate level introduction to Industrial Organization. It is designed to provide a broad introduction to topics and industries that current researchers are studying as well as to expose students to a wide variety of techniques. It will start the process of preparing economics PhD students to conduct thesis research in the area, and may also be of interest to economics and related fields. The course presumes that students have a familiarity with micro theory, basic game theory and some econometrics.
1. Preliminaries

The SCP paradigm Relationship between a measure of concentration and measure of market power Additional cost concepts: Switching costs, Transaction costs. Asset specificity and holdup problems. Game theory normal and extensive form games. Nash equilibrium. Subgame-prefect equilibrium in extensive form games with perfect information. Price Discrimination: First, Second, Third Degree Durable Goods monopoly Bundling and Tying
2. Pricing Strategies

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3. Market structures

The Cournot model: First order and second order conditions. Conjectural variations and the coefficients of cooperation. Cournot competition with many firms. Bertrand competition with homogeneous products. The Stackelberg equilibrium reinterpreted as subgame-perfect equilibrium Strategic substitutes and complements. Strategic Commitments: Direct and Strategic effects; Commitments; Taxonomy of strategies; Flexibility and option value Horizontal and vertical product differentiation Bertrand competition with product differentiation Hotellings model Vertical product differentiation model
4. Product differentiation
5. Cartels and collusion

Explicit collusion; Size of cartel; Cheating in a cartel; Successful operation of a cartel How severe should punishment be? What characteristics should punishments have to deter cheating? Tacit Co-operation: Price leadership, Focal point pricing, Pre-announcing future price increases, Industry associations Cartel success and failure Bain: The three types of entry barriers Conditions of entry: the Dixit model The Limit Pricing Model - The Sylos Postulate The Limit Pricing Model Excess capacity creation, plant proliferation, product proliferation, reputation-building Predatory pricing Informative advertising and persuasive advertising. The Dorfman-Steiner model. Two possible extensions.
6. Entry Barriers
7. Advertising

8. Multi-market operations

Vertical Integration and vertical control Conglomerate diversification Related vs. Unrelated Diversification. Compatibility and standards Two-sided markets
9. Network externalities
10. Contracts and Incentives

Unobservable efforts. Incentive from ownership. Incentives and insurance. Internal labor markets. Efficiency wage theory.
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11. Innovation

R&D Creative destruction The incentive to innovate: The sunk cost effect; The replacement effect; The efficiency effect; Innovation competition Patent races Deterministic patent races Process innovation Two main aspects of a competition policy Why competition policy? Two main domains of antitrust law Per se violations and the Rule of reason Different Approaches to Regulation Some Issues in Competition Law International Harmonization of Competition Laws Competition Policy in Dynamic Markets
12. Competition Policy
Suggested Readings

David Besanko, David Dranove, Mark Shanley and S. Schaefer The Economics of Strategy. John Wiley (Student edition for India). Sen (ed.) Industrial Organization, New Delhi: Oxford University Press. R. Schmalensee and R. Willig (ed.) Handbook of Industrial Organization Vols. 1 & 2, Amsterdam: North Holland. Baumol, W., J. Panzer and R. Willig (1982): Contestable Markets and the Theory of Industry Structure, New York: Harcourt Brace Jovanovitch. Chamberlin, E. (1962): The Theory of Monopolistic Competition, Cambridge: Harvard University Press. Osborne, M. (2004): Introduction to Game Theory, New York: Oxford University Press. Tirole, J. (1988) The Theory of Industrial Organization. Cambridge, MA: MIT Press. Sylos-Labini, P., (1962), Oligopoly and Technical Progress (Harvard University Press, Cambridge, Mass). Williamson, O. (1975): Markets and Hierarchies: Analysis and Antitrust Implications, New York: The Free Press. Laffont, J.J. and J.Tirole (1993): A Theory of Incentives in Procurement and Regulation, MIT Press. Church, J. and R. Ware, 2000, Industrial Organization: A Strategic Approach, McGraw-Hill. Gibbons, R., Game Theory for Applied Economists. Princeton: Princeton University Press. Stephen Martin, Advanced Industrial Economics, Blackwell Publishers, 1993. Oz Shy, Industrial Organization: Theory and Applications, The MIT Press. Waldman, D.E. and E.J. Jensen, Industrial Organization: Theory and Practice, 2001, Pearson Education. Oz Shy, 1995, Industrial Organization: Theory and Applications, The MIT Press. Paul Milgrom and John Roberts, Economics, Organization and Management, 1992, Prentice-Hall International
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307 : ECONOMIC HISTORY OF MODERN INDIA

Generally, this course is intended to: a) Encourage students to view history as a social scientists irreplaceable laboratory ; allowing for the identification of irregularities, validation (or invalidation) of economic theories. b) Inculcate an understanding and appreciation of the essential complementarities between deductive reasoning (as used in mathematics and economic theory) and inductive reasoning (as used in history and other social sciences). Specifically, at the end of this course you will have some understanding of: a) the factors that have influenced the pace of long run economic growth in the Indian economy. b) key institutional, demographic, political, social, and cultural changes that have influenced the course of Indian economic development. c) the major debates and controversies in the study of the economic history of India Compulsory Readings: Douglass C. North, Institutions, Institutional Change, and Economic Performance. New York: Cambridge University Press, 1990. Kenneth Pomeranz, The Great Divergence: China, Europe, and the Making of the Modern World Economy, Princeton: The Princeton University Press, 2000 Jared Diamond, Guns, Germs, and Steel. New York: Norton, 1997. Angus Maddison, Contuours of the World Economy, 1-2030 A.D: Essays in Macroeconomic History Oxford: OUP, 2007. 1. Apologetics: Why Study Economic History? (One Lecture) Before we begin this course, this lecture details the value of econmic history to the economist. It allows us to question and engage with ceteris paribus in economics. Economics understands the operation of economic variables by isolating it, which is not the case in either historical or economic reality. o What does history offer to the economist? o Why is it necessary for economists to learn historical methods and how to incorporate historical data into models? Readings D. N. McCloskey, "Economics as an Historical Science," in William N. Parker, ed., Economic History and the Modern Economist. Oxford: Basil Blackwell, 1986. Brad deLong, Why Should Students of Economics Study Economic History?, YouTube Video at http://www.youtube.com/watch?v=eRcARH0B_2I Paul M. Hohenberg, Toward a More Useful Economic History, The Journal of Economic History 68,2(2008) Y. M. Brenner, Economic Theory without Economic History is Scholasticism and Economic History Without Theory is Blind, Journal of Income Distribution, 9(2000):1-3. Tirthankar Roy, Economic History of India: An Endangered Discipline, Economic and Political Weekly, 39, 2004, 3238-43.
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Andre Gunder Frank, Structuring a New Economic History, Economic and Political Weekly, (2004). Optional: Conversations with History: Economic History, with Robert William Fogel, University of California Television, http://www.uctv.tv/searchdetails.aspx?showID=9322.
1. Introduction: The Historical Method in the Study of Economic Change (One Lecture) Readings: P. Rosenau, Post-Modernism and the Social Sciences: Insights, Inroads and Intrusions (1991), Chapter 1: Into the Fray: Crisis, Continuity and Diversity, pp 1-24. D. Little, Interpretation Theory in his Varieties of Social Explanation (1991), pp68-87. Optional: Conversations with History: Historical Perspective on the Global Economic Crisis with Economic Historian Barry Eichengreen, UC Berekely, University of California Television, http://www.uctv.tv/search-details.aspx?showID=16055 1.Themes and Debates in World Economic History (Two Lectures) David Landes, Why are We So Rich and They So Poor?, American Economic Review, 80(2), 1990, pp. 1-13. Douglass North, Economic Performance through Time, American Economic Review, 84(3), 1994, pp. 359-368. Andre Gunder Frank, The Development of Underdevelopment, Monthly Review, 18(4), 1969. Joel Mokyr, The Intellectual Origins of Modern Economic Growth, Journal of Economic History, 65(3), 2005, 285-351. Douglass C. North, Institutions, Institutional Change, and Economic Performance. New York: Cambridge University Press, 1990. Joel Mokyr, The Lever of Riches. New York: Oxford, 1990, chapters 7 and 11. Kenneth Pomeranz, The Great Divergence: China, Europe, and the Making of the Modern World Economy, Princeton: The Princeton University Press, 2000 Jared Diamond, Guns, Germs, and Steel. New York: Norton, 1997. E. L. Jones, The European Miracle: Environments, Economies, and Geopolitics in the History of Europe and Asia, second edition. Cambridge: Cambridge University Press, chapters 1-3. Angus Maddison, "Explaining the Economic Performance of Nations, 1820-1989," in Angus Maddison, Explaining the Economic Performance of Nations (Hants, England: Edward Elgar Press, 1995), 91-132 Rondo Cameron and Larry Neal, A Concise Economic History of the World: From Paleolithic Times to the Present, 4th edition, Oxford: OUP, 2003. 1. Before the Event of Colonialism Ashin Dasgupta and M.N. Pearson (eds.) India and the Indian Ocean New Delhi: OUP, 1987, pp1-24. Sanjay Subramanyam, Explorations in Connected Histories (New Delhi: OUP, 2005) Frank Perlin, Proto-Industrialisation and Pre-Colonial South Asia, Past and Present 98(1983) Sanjay Subrahmanyam, "Connected Histories: Notes towards a Reconfiguration of Early Modern Eurasia," Modern Asian Studies, Vol. 31, No. 3, (Jul., 1997), pp. 735762
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2. Major Themes in the Economic History of India (1757-1947) i. The Impact of Colonialism on Development: Debates (One Lecture) Readings: Morris D. Morris, Towards a Reinterpretation of Nineteenth Century Indian Economic History, Journal of Economic History, 1963, 23(4), 606-18. Irfan Habib, Colonialisation of the Indian Economy 1757-1900, Social Scientist, 3(8), 1975, 23-53. B.R. Tomlinson, The Historical Roots of Indian Poverty: Issues in the Economic and Social History of Modern South Asia 1880-1960, Modern Asian Studies, 22(1), 1988, 123-40. ii. The eighteenth and early nineteenth Century Transition (2 Lectures) The eighteenth century saw two big processes of change unfold in South Asia: the break-up of the Mughal Empire into many regional states, and increasing role of the English East India Company in the economic, commercial, and political life of the subcontinent. The link between these big shifts in territorial power and economic prospects tends to be interpreted in different ways. What were the effects of the political change on institutions such as property rights? What were its effects on commercial development? Were there potentialities of capitalist development in Mughal India that were frustrated by the regime shift? Readings: Irfan Habib, Potentialities of Capitalistic Development in the Economy of Mughal India, The Journal of Economic History, 29, 1969, 32-78. Frank W. Ellis, In What Way, and to What Degree, Did the Mughal State Inhibit Smithian Growth in India in the Seventeenth Century?, London School of Economics
Working Paper available at http://eprints.lse.ac.uk/22477/1/wp14.pdf David Washbrook, India in the Early Modern World Economy: Modes of Production, Reproduction and Exchange, Journal of Global History, 2, 2007, 87-111. C. A. Bayly, State and Economy in India over Seven Hundred Years, Economic History Review, 38(4), 1985, 583-96. Binay Chaudhuri, Peasant History of Late Pre-colonial and Colonial India, Delhi: Pearson Longman, 2008, Chapter 3 (pages 49-107) On peasant property rights, selections from: Cambridge Economic History of India, vol. 2, chapters on agrarian relations Alan Smalley, The Colonial State and Agrarian Structure in Bengal, Journal of Contemporary Asia, 13(2), 1983, 176-197. iii. The eighteenth Century Transition: the Divergence Debate (2 Lectures) What is the divergence debate in the Indian context? What are the main points of difference between Parthasarathi and his critics? How can we connect the divergence discourse with the debate on the effects of colonialism on development?
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Readings: Pomeranz, Introduction R.C. Allen, India in the Great Divergence, in J.G. Williamson, T.J. Hatton, K.H. ORourke, A.M. Taylor, eds., The New Comparative Economic History: Essays in Honor of Jeffrey G. Williamson, Cambridge Mass.: M.I.T. Press, 2007, pp. 9-32 Prasannan Parthsarathi, Rethinking Wages and Competitiveness in the Eighteenth Century: Britain and South India. Past and Present, 158, 1999, pp. 79-109 S. Broadberry and B. Gupta, The Early Modern Great Divergence: Wages, Prices andEconomic Development in Europe and Asia, 1500-1800, Economic History Review, 59(1), 2006, pp. 2-31 Roman Studer, India and the Great Divergence: Assessing the Efficiency of Grain Markets in Eighteenth- and Nineteenth-Century India, Journal of Economic History, 68(2), 2008, pp. 393-437 Tirthankar Roy, Economic Conditions in Early Modern Bengal: A Contribution to the Divergence Debate, Journal of Economic History, 70(1), 2010, pp. 179-194. David Clingingsmith and Jeffrey G. Williamson, Deindustrialization in 18th and 19th century India: Mughal decline, climate shocks and British industrial ascent, Explorations in Economic History, 45(3), 2008, pp. 209-234. 3. Agriculture:
i. Commercialization (2 lectures) The nineteenth century saw closer integration of India with the world economy. Peasant exports increased substantially in the course of the nineteenth century, which the defenders of the Empire considered one of the major gains from colonialism and globalization. Many historians, however, hold that the gains were small and/or unequally shared. But they do not offer a single answer why this was so. In this section we take stock of the main drivers behind export expansion, such as property rights, railways, irrigation canals, and rural credit, and speculate on the inequality dimension. Who gained from export of agricultural commodities? Were there costs of this growth? Readings: Selected essays and the introduction from David Ludden, ed., Agricultural Production in Indian History, Delhi: Oxford University Press, 1994, KN Raj, N Bhattacharya, S Guha, S Padhi, eds., Essays on the Commercialization of Indian Agriculture, Delhi: Oxford University Press, 1985 Ian Derbyshire, Economic Change and the Railways in North India, 1860-1914, Modern Asian Studies, 21(3), 1987, 521-45. Imran Ali, Malign Growth? Agricultural Colonization and the Roots of Backwardness in the Punjab, Past and Present, 114, 1987, 110-32. M.B. McAlpin, Railroads, Prices, and Peasant Rationality: India 1860-1900, Journal of Economic History, 34(3), 1974, 662-84. David Washbrook, The Commercialisation of Agriculture in Colonial India: Production, Subsistence and Reproduction in the Dry South 1870-1930, Modern Asian Studies, 28(1), 1994, 129-64. Peter Harnetty, Cotton Exports and Indian Agriculture, 1861-1870, Economic History Review, 24(3), 1971, 414-29.
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ii. Peasant Revolts: Impacts and Effects (1 lecture) 4. The Artisan Industry (One Lecture) The default story of globalization in South Asia suggests that foreign trade destroyed a flourishing artisan industry in the region is this validated in view of recent research? What is the significance of de-industrialization in the early-nineteenth century for prospects of industrialization in the late-nineteenth? In one view, the import of English cotton textiles was a devastatingly negative economic force because it destroyed the handicrafts. Others have offered a more moderate and mixed view of the effect of import competition in textiles. What are the issues in this debate and is the revisionist argument convincing? Readings: Amiya Bagchi, De-industrialization in India in the Nineteenth Century: Some Theoretical Implications, Journal of Development Studies, 12, 1976, 13564. Douglas Haynes, Artisan Cloth-Producers and the Emergence of Powerloom manufacture in Western India, 1920-1950, Past and Present, 172, 2001, 170-98. Tirthankar Roy, Traditional Industry in the Economy of Colonial India, Cambridge; Cambridge University Press, 1999, introduction and Chapter 4 on handloom weaving.
5. Industry and Business in Colonial India (Two Lectures) The default story of globalization suggests that regions short of critical resources necessary for modern industry to develop skilled labour and capital would withdraw from industry and specialize in agriculture. Contradicting this prediction, colonial India experienced a robust form of factory industrialization. Unlike models of late industrialization, this episode relied too little too late on state aid. It was a market driven process until the interwar period. What were the key factors that worked for factory industry, and what obstacles were overcome? Readings: Morris D. Morris, Growth of Large-scale Industry to 1947, Cambridge Economic History of India, vol. 2. Rajat K. Ray, in Rajat Ray, ed., Entrepreneurship and Industry in India 1800-1947, Delhi: Oxford University Press, 1992, pp. 1-69. A.K. Bagchi, Colonialism and the Nature of Capitalist Enterprise in India, Economic and Political Weekly, 23(31), 1988, pp. PE38-PE50. Vinay Bahl, The Emergence of Large-scale Steel Industry in India under British Colonial Rule, 1880-1907, Indian Economic and Social History Review, 31(4), 1994, 413-460. A-M. Misra, Business Culture' and Entrepreneurship in British India, 1860-1950, Modern Asian Studies, 34(2), 2000, 333-48. B.R. Tomlinson, Colonial Firms and the Decline of Colonialism in Eastern India 1914-47, Modern Asian Studies, 15(3), 1981, 455-486. Morris D. Morris, South Asian Entrepreneurship and the Rashomon Effect, 1800-1947, Explorations in Economic History, 16, 1979, 341-361. The Creation and Emergence of New Commodities/Markets Jayeeta Sharma, British Science, Chinese Skill and Assam Tea: Making Empires Garden, Indian Economic and Social History Review, 2006 43(4):429-55. A.R. Venkatachalapathy, In those days there was no coffee: Coffee Drinking and Middle Class Culture in Late Colonial Tamil Nadu, IESHR, http://ier.sagepub.com/content/39/2-3/301.full.pdf
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6. People in Economic History i. The Demographic Experience (One Lecture) Readings: (incomplete) Massimo Livi-Bacci, A Concise History of World Population , 2001, Chapter 3, pp63-87. Leela Visaria and Pravin Visaria, Population, 1757-1947, in CEHI, 463-533. Tim Dyson, Indias PopulationThe Past, in Twenty-First Century India: Population, Economy, Human Development and the Environment eds. Tim Dyson, Robert Cassen and Leela Visaria, Oxford: OUP, 2004, pp15-32. Simon Commander, The mechanics of Demographic and Economic Growth in Uttar Pradesh: 1800-1900, in Indias Historical Demography: Studies on Famine, Disease and Society,London: Curzon Press, 1989.
ii. Migration and Indian Diasporas (One Lecture) Cheap and safe transportation and new economic opportunities saw merchants, bankers, and workers migrate to distant regions. At 1920, the total number of persons of Indian origin working in the tropical colonies, Mauritius, Guiana, Fiji, Trinidad, Jamaica, Natal, Malaysia, Ceylon, and East Africa, numbered two million. Most were wage-earners. A million more had been born outside their place of work, and engaged in manufacturing, mines, and plantations inside India. India was one of the axes in the formation of a global working class. Historical scholarship suggests that the prospect of economic rewards, while necessary, were never sufficient explanations for the decision to resettle, or to migrate from the farm to the factory. There were many other factors, such as community, coercion, networks, laws. Readings M.C. Madhavan, Indian Emigrants: Numbers, Characteristics, and Economic Impact, Population and Development Review, 11(3), 1985, 457-81. Arjan De Haan, Unsettled Settlers: Migrant Workers and Industrial Capitalism in Calcutta, Modern Asian Studies, 31(4), 1997, 919-49. Tirthankar Roy, Sardars, Jobbers, Kanganies: The Labour Contractor and Indian Economic History, Modern Asian Studies, 42(5), 2007, pp. 971-998. 7. Gender in Economic History (Two Lectures) Readings: Berg, Maxine. "What difference did women's work make to the industrial revolution." History Workshop 35 (1993): 22-44. Samita Sen, Will the land not be tilled?: Womens work in the rural economy and Away from Homes: Womens work in the Mills, in Women and Labour in Late Colonial India: The Bengal Jute Industry Cambridge: CUP, 1999, pp.54-142. Vijaya Ramaswamy, Aspects of Women and Work in Early South India, Indian Economic and Social History Review 26,1(1985):81-99.
8. Space in Economic History Why does space matter in economic history? The study of space allows us to study where and how things happen in relation to one another. It allows us to recreate landscapes and built environments and the interaction therein.
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i. The Environment (One Lecture) Readings: Amita Baviskar, Environmental History of India, in Different Types of History, ed. Bharati Ray, pp147-63. Mahesh Rangarajan, Environmental Histories of India: Of States, Landscapes and Ecologies, in The Environment and World History ed. Edmund Burke and Kenneth Pomeranz, (Berkeley: University of California Press, 2009(: 229-255. Madhav Gadgil and Ramachandra Guha, in This Fissured Land: An Ecological History of India, Berkeley: University of California Press, 1992, pp. 239-47 Richard H. Grove, Green Imperialism: Colonial Expansion, Tropical Island Edens and the Origins of Environmentalism, 1600-1860, Cambridge: CUP, 1998, pp.474-87. Richard H. Grove, Vinita Damodaran and Satpal Sangwan, Nature and the Orient: The Environmental History of South and South-East Asia Oxford: OUP, 1998.
ii. The Built Environment: Urbanisation and its Challenges (One Lecture) One of the most significant , and inevitable, spatial changes occuring in history is without doubt the process of urbanisation and the study of urbanisation and processes is particularly relevant in the Indian context. Cities present a particular set of social, economic and environmental challenges and problems. This section explores the establishment and growth of cities across the subcontinent in the long term and then considers how the colonial cities of Madras and Bombay emerged and grew; as well as assessing issues of urban management in the old city of Delhi in the nineteenth century. Readings: Howard Spodek. Studying the History of Urbanisation in India,Journal of Urban History (1980), 6:251-97. James Heitzman, Middle Towns to Middle Cities in South Asia, 1800-2007, Journal of Urban History (2008):35, 15-40. Susan Lewandowski, Merchants and Kingship: An Interpretation of Indian Urban History, Journal of Urban History (1985) o Case Studies: One of the below Michael Mann, Delhis Belly: On the Management of Water, Sewage and Excreta in a Changing Urban Environment during the Nineteenth Century, Studies in History, 23(2007):1-31. Ira Klein, Urban Development and Death: Bombay City, 1870-1914, Modern Asian Studies, 2008. Susan Lewandowski, Urban Growth and Municipal Development in the Colonial City of Madras, 1860-1900, The Journal of Asian Studies 34,2(1975) 9. Health and Well Being in Economic History i. Anthropometrics (One Lecture) Readings: John Komlos, On the Significance of Anthropometric History, in Stature, Living Standards and Economic Development, (Chicago: University of Chicago Press, 1994), pp.210-221. Richard H. Steckel, Heights and Human Welfare: Recent Developments and New Directions, Explorations in Economic History 46,1(2009), 1-23.
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Lance Brennan, John McDonald and Ralph Shlomowitz, Trends in the Economic Well Being of South Indians under British Rule: The Anthropometric Evidence, Explorations in Economic History 31 (1994):225-60. A. M. Guntupalli, J. Baten, The Development and Inequality of Heights in North, West and East India, 1915-44, Explorations in Economic History 43,4(2006), 578-608. ii. Health (One Lecture) Ira Klein, Death in India: 1871-1921, The Journal of Asian Studies, 1973. Sumit Guha, An Introduction: Health and Population in South AsiaFrom Earliest Times to the Present and Health and Environmental Sanitation in Twentieth Century India; in Health and Population in South Asia from the Earliest Times to the Present (Orient and Blackswan), pp1-24, 156-85. iii. Hunger/Famine (One Lecture) David Arnold, The Discovery of Malnutrition and Diet in Colonial India, Indian Economic and Social History Review, 31,1(1994):126. Visaria and Visaria, CEHI, pp476-8. R. C. Dutt, The Economic History of India, I: Under Early British Rule (London: Routledge, 1901), pp. David Arnold, Hunger in the Garden of Plenty: The Bengal Famine of 1770, Dreadfule Visitations, ed. Alessa Johns, pp. 81-113. Amartya Sen, The Great Bengal Famine and Entitlements and Deprivation , in Poverty and Famines: An Essay on Entitlement and Deprivation Oxford: OUP, pp.5486, 154-67 as well as Appendix D: Famine Mortality: A Case Study, 195-217.
10. Innovation and Technology in Economic History (One Lecture) Readings: Arun Kumar Biswas, Technology in History with Special Reference to Ancient and Medieval India, in Science, Technology, Imperialism and War, ed. Jyoti Bhusan Das Gupta, New Delhi, PSHC. David Arnold, Technologies of the Steam Age, in The New Cambridge History of India: Science, Technology and Medicine in Colonial India (Cambridge: Cambridge University Press, 2000). Daniel Headrick, The Railways of India, in The Tentacles of Progress: Technology Transfer in the Age of Imperialism OUP, 1988. Robert C. Allen, The Industrial Revolution in Miniature: The Spinning Jenny in Britain, France and India, Journal of Economic History 69(2009): 901-27. Tirthankar Roy, Acceptance of Innovations in Early Twentieth Century Indian Weaving, Economic History Review, 55(3), 2002, 507-32.
2. Themes and Debates in Indian Economic History This set of readings addresses the major debates and controversies in Indian economic history. Some of these debates concern questions of an empirical nature. What was the extent of economic growth in the nineteenth and twentieth centuries? Others ask interpretive questions. What was the effect of colonialism on potentials for long-term development? And related with this, there is a third question - how important were the effects of local factors and initial conditions upon these potentials? The readings apply various kinds of critical perspectives in assessing the legacies of the colonial era.
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Readings: Morris D. Morris, Towards a Reinterpretation of Nineteenth Century Indian Economic History, Journal of Economic History, 1963, 23(4), 606-18. Irfan Habib, Colonialisation of the Indian Economy 1757-1900, Social Scientist, 3(8), 1975, 23-53. B.R. Tomlinson, The Historical Roots of Indian Poverty: Issues in the Economic and Social History of Modern South Asia 1880-1960, Modern Asian Studies, 22(1), 1988, 123-40. Tirthankar Roy, Economic History of India: An Endangered Discipline, Economic and Political Weekly, 39, 2004, 3238-43. 3. The eighteenth and early nineteenth Century Transition The eighteenth century saw two big processes of change unfold in South Asia: the break-up of the Mughal Empire into many regional states, and increasing role of the English East India Company in the economic, commercial, and political life of the subcontinent. The link between these big shifts in territorial power and economic prospects tends to be interpreted in different ways. What were the effects of the political change on institutions such as property rights? What were its effects on commercial development? Were there potentialities of capitalist development in Mughal India that were frustrated by the regime shift?
Readings: Irfan Habib, Potentialities of Capitalistic Development in the Economy of Mughal India, The Journal of Economic History, 29, 1969, 32-78. Frank W. Ellis, In What Way, and to What Degree, Did the Mughal State Inhibit Smithian Growth in India in the Seventeenth Century?, London School of Economics Working Paper available at http://eprints.lse.ac.uk/22477/1/wp14.pdf David Washbrook, India in the Early Modern World Economy: Modes of Production, Reproduction and Exchange, Journal of Global History, 2, 2007, 87-111. C. A. Bayly, State and Economy in India over Seven Hundred Years, Economic History Review, 38(4), 1985, 583-96. Binay Chaudhuri, Peasant History of Late Pre-colonial and Colonial India, Delhi: Pearson Longman, 2008, Chapter 3 (pages 49-107) On peasant property rights, selections from: Cambridge Economic History of India, vol. 2, chapters on agrarian relations Alan Smalley, The Colonial State and Agrarian Structure in Bengal, Journal of Contemporary Asia, 13(2), 1983, 176-197. 4. The eighteenth Century Transition: the Divergence Debate This recent literature places Indian history in the context of rising inequality in the modern world. What is the divergence debate? What are the main points of difference between Parthasarathi and his critics? How can we connect the divergence discourse with the debate on the effects of colonialism on development? Readings: Kenneth Pomeranz, The Great Divergence: China, Europe, and the Making of the Modern World Economy, Princeton: The Princeton University Press, 2000, Introduction Prasannan Parthsarathi, Rethinking Wages and Competitiveness in the Eighteenth Century: Britain and South India. Past and Present, 158, 1999, pp. 79-109
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S. Broadberry and B. Gupta, The Early Modern Great Divergence: Wages, Prices and Economic Development in Europe and Asia, 1500-1800, Economic History Review, 59(1), 2006, pp. 2-31 R.C. Allen, India in the Great Divergence, in J.G. Williamson, T.J. Hatton, K.H. ORourke, A.M. Taylor, eds., The New Comparative Economic History: Essays in Honor of Jeffrey G. Williamson, Cambridge Mass.: M.I.T. Press, 2007, pp. 9-32 Roman Studer, India and the Great Divergence: Assessing the Efficiency of Grain Markets in Eighteenth- and Nineteenth-Century India, Journal of Economic History, 68(2), 2008, pp. 393-437 Tirthankar Roy, Economic Conditions in Early Modern Bengal: A Contribution to the Divergence Debate, Journal of Economic History, 70(1), 2010, pp. 179-194. David Clingingsmith and Jeffrey G. Williamson, Deindustrialization in 18th and 19th century India: Mughal decline, climate shocks and British industrial ascent, Explorations in Economic History, 45(3), 2008, pp. 209-234.
5. Commercialization of Agriculture The nineteenth century saw closer integration of India with the world economy. Peasant exports increased substantially in the course of the nineteenth century, which the defenders of the Empire considered one of the major gains from colonialism and globalization. Many historians, however, hold that the gains were small and/or unequally shared. But they do not offer a single answer why this was so. In this section we take stock of the main drivers behind export expansion, such as property rights, railways, irrigation canals, and rural credit, and speculate on the inequality dimension. Who gained from export of agricultural commodities? Were there costs of this growth? Readings: Selected essays and the introduction from David Ludden, ed., Agricultural Production in Indian History, Delhi: Oxford University Press, 1994 Sugata Bose, ed., Credit, Markets and the Agrarian Economy, Delhi: Oxford University Press, 1994 KN Raj, N Bhattacharya, S Guha, S Padhi, eds., Essays on the Commercialization of Indian Agriculture, Delhi: Oxford University Press, 1985 S. Bhattacharya et al, eds., The South Indian Economy. Agrarian Change, Industrial Structure, and State Policy c.1914-1947, Delhi: Oxford University Press, 1991. Ian Derbyshire, Economic Change and the Railways in North India, 1860-1914, Modern Asian Studies, 21(3), 1987, 521-45. Imran Ali, Malign Growth? Agricultural Colonization and the Roots of Backwardness in the Punjab, Past and Present, 114, 1987, 110-32. M.B. McAlpin, Railroads, Prices, and Peasant Rationality: India 1860-1900, Journal of Economic History, 34(3), 1974, 662-84. David Washbrook, The Commercialisation of Agriculture in Colonial India: Production, Subsistence and Reproduction in the Dry South 1870-1930, Modern Asian Studies, 28(1), 1994, 129-64. Peter Harnetty, Cotton Exports and Indian Agriculture, 1861-1870, Economic History Review, 24(3), 1971, 414-29. 6: De-industrialization and Revival Artisan Industry The default story of globalization in South Asia suggests that foreign trade destroyed a flourishing artisan industry in the region is this validated in view of recent research? What is the significance of de-industrialization in the early-nineteenth century for prospects of industrialization in the late-nineteenth? In one view, the import of English cotton textiles was a
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devastatingly negative economic force because it destroyed the handicrafts. Others have offered a more moderate and mixed view of the effect of import competition in textiles. What are the issues in this debate and is the revisionist argument convincing? Readings: Amiya Bagchi, De-industrialization in India in the Nineteenth Century: Some Theoretical Implications, Journal of Development Studies, 12, 1976, 13564. Douglas Haynes, Artisan Cloth-Producers and the Emergence of Powerloom Manufacture in Western India, 1920-1950, Past and Present, 172, 2001, 170-98. Tirthankar Roy, Traditional Industry in the Economy of Colonial India, Cambridge; Cambridge University Press, 1999, introduction and Chapter 4 on handloom weaving. Tirthankar Roy, Acceptance of Innovations in Early Twentieth Century Indian Weaving, Economic History Review, 55(3), 2002, 507-32. 7. Modern Industry The default story of globalization suggests that regions short of critical resources necessary for modern industry to develop skilled labour and capital would withdraw from industry and specialize in agriculture. Contradicting this prediction, colonial India experienced a robust form of factory industrialization. Unlike models of late industrialization, this episode relied too little too late on state aid. It was a market-driven process until the interwar period. What were the key factors that worked for factory industry, and what obstacles were overcome? Readings: Morris D. Morris, Growth of Large-scale Industry to 1947, Cambridge Economic History of India, vol. 2. Dwijendra Tripathi, The Oxford History of Indian Business, Delhi: Oxford University Press, 2004, concise version. Rajat K. Ray, in Rajat Ray, ed., Entrepreneurship and Industry in India 1800-1947, Delhi: Oxford University Press, 1992, pp. 1-69. A.K. Bagchi, Colonialism and the Nature of Capitalist Enterprise in India, Economic and Political Weekly, 23(31), 1988, pp. PE38-PE50. Vinay Bahl, The Emergence of Large-scale Steel Industry in India under British Colonial Rule, 1880-1907, Indian Economic and Social History Review, 31(4), 1994, 413-460 A-M. Misra, Business Culture' and Entrepreneurship in British India, 1860-1950, Modern Asian Studies, 34(2), 2000, 333-48. B.R. Tomlinson, Colonial Firms and the Decline of Colonialism in Eastern India 1914-47, Modern Asian Studies, 15(3), 1981, 455-486. Morris D. Morris, South Asian Entrepreneurship and the Rashomon Effect, 1800-1947, Explorations in Economic History, 16, 1979, 341-361. 8. Labour in Colonial Setting Cheap and safe transportation and new economic opportunities saw merchants, bankers, and workers migrate to distant regions. At 1920, the total number of persons of Indian origin working in the tropical colonies, Mauritius, Guiana, Fiji, Trinidad, Jamaica, Natal, Malaysia, Ceylon, and East Africa, numbered two million. Most were wage-earners. A million more had been born outside their place of work, and engaged in manufacturing, mines, and plantations inside India. India was one of the axes in the formation of a global working class. Historical scholarship suggests that the prospect of economic rewards, while necessary, were never sufficient explanations for the decision to resettle, or to migrate from the farm to the factory. There were many other factors, such as community, coercion, networks, laws.
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Readings Morris David Morris, The Recruitment of an Industrial Labor Force in India, with British and American Comparisons, Comparative Studies in Society and History, 2(3), 1960, 305-28. M.C. Madhavan, Indian Emigrants: Numbers, Characteristics, and Economic Impact, Population and Development Review, 11(3), 1985, 457-81. Arjan De Haan, Unsettled Settlers: Migrant Workers and Industrial Capitalism in Calcutta, Modern Asian Studies, 31(4), 1997, 919-49. Tirthankar Roy, Sardars, Jobbers, Kanganies: The Labour Contractor and Indian Economic History, Modern Asian Studies, 42(5), 2007, pp. 971-998. Conclusion This part of the course would be conducted as a seminar where the students are invited to make presentations suggesting ways of using history in order to understand the present patterns and pathways of economic change. Course Requirements Class attendance and active, informed class participation are required. To prepare for class one is expected to read the assigned readings. Active, informed class participation entails initiating and responding to discussion, asking and answering questions, listening thoughtfully to others and engaging them in class discussions.
402 : ENVIRONMENTAL ECONOMICS

The objective of the course is to introduce different aspects of the sub-discipline of environmental economics to the students of MA program. It is expected to enable students to understand the economics of the relationship between economic activities and environmental impacts. It builds on the knowledge of students in micro-economics and public economics. However it also touches upon some macro-issues like the incorporation of environmental impact in growth accounting and also concepts on sustainable development. The economic assessment of environmental impacts, and the economics of policies and institutions which have a bearing of environmental management are also covered in the course. 1.Need for Environmental Economics: Linking with Micro economics Externality Public goods Asymmetric Information Environmental problem as an Externality Environmental Conservation as a Public Good Correcting Market Failures: is Partial Correction better than nothing? 2.

Environment and Macroeconomics Assessing the impact of environmental damage on macroeconomic variables Environment and System of National accounts Concepts on Green National Income Definition on sustainable Development Weak notion of sustainability Strong Notion of Sustainability Practicing Sustainable Development
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3.Cost-Benefit Analysis and Environment Damage and Benefit Estimation: Background and Introduction Some objections to CB Analysis Benefit Routes- A Brief Review Demand shifts: Complementarity Cost Shifts: Averting, Replacing or Curing Expenditure Travel Cost and Its Relation to Environmental Quality Hedonic Pricing Direct Methods of Benefit Estimation 4.Policy Instruments Bases for judging among Instruments Static and dynamic efficiency Standards, Taxes, subsidies, Market Based Instruments Comparing Instruments: Other Considerations General Institutional Demands Other Dimensions of Judgment Liability Provisions The Provision of Information; Information disclosure 5.Monitoring and Enforcement Characteristics of Various M & E Settings Elements of a Monitoring and Enforcement System Economics of Monitoring and Enforcement Monitoring and Compliance as a Decision Under Uncertainty Citizens Actions Conclusions and Reminders 6.Economics of Natural Resources Optimal Extraction Non-renewable Resources Common Property Management Failure of Open access Management Possibilities of collective/Community Management Coordination problem/Infinitely Repeated Prisoners Dilemma, Folks Theorem Privatisation of the Natural Resources Readings

Nick Hanley, Jason F. Shogren and Ben White, Environmental Economics- In Theory and Practice, MacMillan Press Ltd.. Hampshire Russell, Clifford. S., Economics of Natural Resources and Environment, Oxford University Press, New York. David Pearce and Dominic Moran, The Economic Value of Biodiversity, Earth Scan Publications Ltd., London Ger Klaassen and Finn Forsund, Economic Instruments for Air Pollution Control, Kluwer Academic Publishers, Dordrecht Bojo Jan, Maler Karl Goran and Lena Unemo, Environment and Development: An Economic Approach, Kluwer Academic Publishers, Dordrecht Robert Dorfman and Nancy Dorfman, Economics of the Environment, Selected Reading III Edtn,. W.W Norton & Company, New York
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Supplementary

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Murty. M.N, Environment, Sustainable Development and Well-being, Oxford University Press, New Delhi Fisher, A.C, Environmental and Resource Economics, Edward Elgar Publishing Ltd, Aldershot Henk Folmer , H. Landis Gabel and Hans Opschoor, Principles of Environmental and Resource Economics, Edward Elgar, Aldershot Tom Tietenberg, Environmental and Natural Resource Economics, V Edtn., Addison-Wesley, Massachusetts Barbier, Edward B., The Economics of Environment and Development, Selected Essays, Edward Elgar, Cheltenham David Pearce, Economics and Environment- Essays on Ecological Economics and Sustainable Development, Edward Elgar, Cheltenham Tom Tietenberg, Environmental and Natural Resource Economics, IV Edition, HarperCollins Publishers, New York Ian Goldin and L. Alan Winters, The Economics of Sustainable Development, Cambridge University Press, New York
Kolstad Charles D. Environmental Economics. Oxford University Press. 2003. Sterner and Coria. Policy Instruments for Environmental and Resource Management, Francis and Taylor, 2011.
403: GENDER AND DEVELOPMENT

General Objectives The main objective of the course is to introduce the students to the use of gender as an analytical category in the context of development. The course seeks to equip students with an understanding of the major concepts that are used in the gender analysis of development. It seeks to provide a historical overview of gender and development as it emerged as a domain of knowledge with multiple and contentious theoretical underpinnings. Taking up some of the major development issues, the course seeks to demonstrate the methodological and empirical problems that gender analyses raises. In the context of development issues, it also seeks to provide an understanding of new conceptualizations and methodologies that gender analyses gives shape to. Module l: Module 2: Introduction to Gender and Development Key Concepts in Gender and Development The Household Power and Empowerment Feminisation and Flexibility Caring Labour Sex, Sexuality, Gender Caste, Class, Patriarchy, Age
Harding S (editor) (1987) Is there a feminist research method? In Feminism and Methodology, pp. 1 14. Bloomington, IN: Indiana University Press. Letherby G (2004a) Quoting and counting: An autobiographical response to Oakley. Sociology 38, 175189. Letherby G (2004b) Reply to Anne Oakley. Sociology 38, 193194. Oakley A (1981) Interviewing women: a contradiction in terms. In Doing Feminist Research, pp. 30 61 [H Roberts, editor].London: Routledge. Oakley A (1996) Gender methodology and peoples ways of knowing: some problems with feminism and the paradigm debate in social science. Sociology 32, 707732. Ramazanoglu C (2002) Feminist Methodology: Challenges and Choices. London: Sage. Stanley L & Wise S (1993) Breaking Out Again: Feminist Ontology and Epistemology, 2nd ed. London: Routledge.
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Chandra Mohanty, "Under Western Eyes: Feminist Scholarship and Colonial Discourses" in C. Mohanty, A. Russo and L. Torres (eds.) Third World Women and the Politics of Feminism, pp 51-80. Blau, F., M. Ferber and A. E. Winkler (1998) The Economics of Women, Men and Work, Prentice Hall, (3rd. edition), pp. 1-11. Folbre, N. (1986) Hearts and Spades: Paradigms of Household Economics, World Development, Vol. 14, No. 2, pp. 245-255. Beneria , L. (1995) Toward a Greater Integration of Gender into Economics, World Development, Vol.23, No.11, pp. 1839-1850. Elson, D. (1990) Male Bias in the Development Process: An Overview, in Diane Elson(ed) Male Bias in the Development Process, Manchester: Manchester University Press, pp. 1-15. Agarwal, B. (1997) Bargaining and Gender Relations: Within and Beyond the Household, Feminist Economics, spring, pp. 1-25. Floro, M. S. (2002) "A Gender Approach to the Collection and Use of Statistics on Homework", Paper Presented at the UNIFEM-ESCAP Workshop on Gender Approach to the Collection and Use of Statistics, Bangkok, September 19-21, 2002. Martha McDonald (1995), The empirical Challenges of Feminist Economics, in Out of the Margin (eds.) Edith Kiuper and Jolande Sap, Routledge. Kabeer, N. (1999) Resources, Agency Achievements: Reflections on the Measurement of Womens Empowerment, Development and Change 30.3: 435-464. Beneria, L. and M. Roldan. 1987. The Crossroads of Class and Gender. Chicago: University of Chicago Press. Williams, R. (1993) Race, Deconstruction, and the Emergent Agenda of Feminist Economic Theory, in Julie Nelson and M. Ferber (ed.) Beyond Economic Man: Feminist Theory and Economics, University of Chicago Press, pp. 144-153. Jean Carabine (1996). A Straight Playing Field or Queering the Pitch? Centering Sexuality in Social Policy . Feminist review 54, pp. 39-54. Susie Jolly (2000) Queering Development: Exploring the Links between Same-Sex Sexualities, Gender, and Development ,Gender and Development, Vol. 8, No. 1, [Globalization and Diversity], pp. 78-88. Linzi Manicom (2001) Globalising 'Gender' in: Or as: Governance? Questioning the Terms of Local Translations, Agenda, No. 48, Globalisation: Challenging Dominant Discourses, pp. 6-21 Frans J. Schuurman (2000) Paradigms Lost, Paradigms Regained? Development Studies in the Twenty-First Century, Third World Quarterly, Vol. 21, No. 1, pp. 7-20. Jan Nederveen Pieterse (2001) Development Theory: deconstructions/reconstructions, New Delhi, Sage Publications
Module 3: Gender and Development as a Field From Welfare to efficiency and critiques of efficiency Gender planning frameworks and tools Uncovering discrimination in India Towards Equality, Shramshakti Gender and national planning Womens role in the planned economy, Five year plans, and liberalization

Boserup, Ester. 1970. Womens role in economic development, New York: St Martins Press Irene Tinker. 1990. Persistent Inequalities: Women and world development, New York: Oxford University Press Kabeer Naila, 1995. Reversed realities: Gender hierarchies in development thought, New Delhi: Kali for women Wieringa, Saskia. 1998. Rethinking Gender Planning: A critical discussion of the use of the concept of Gender in Gender, Technology and Development, 2 (3).
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Committee on the Status of Women in India, 1970. Towards Equality: Report of the Committee. National commission on women in Self Employment: Shramshakti report 1987 Banerjee N. 1998. Whatever happened to the Dreams of modernity? The Nehruvian era and womens Position, Economic and Political weekly, 33 (17), WS 2- 7. John, Mary E. 1996. Gender and Development in India, Economic and Political weekly, 31 (47), pp 3071-77 C Jackson and R Pearson ed. 1998. Feminist Visions of Development, Routledge. Elson D and N Cagatay. 2000. The social content of macro economic policies, World Development, 28 (7), 1347 1374. Vasavi AR and C Kingfisher. 2003. Poor women as economic agents: the neoliberal state and gender in India and the US in Indian Journal of Gender Studies, Vol 10 (1), 124. Leela Kasturi, 2004. Introduction and excerpts from the report of the sub committee womens role in planned economy, National planning committee series 1947 in M Chaudhuri ed. Feminism in India, Delhi: Women Unlimited. Kapadia Karin ed. 2002. The violence of development: The politics of identity, gender and social inequalities in India, Kali for women. M Molyneux an S Razavi. 2006. Beijing Plus 10: An ambivalent record on gender justice, Occasional paper 15, UNRISD
Module 4: Womens work Methodological issues in measurement of womens work and contribution to income Labour market issues occupational segregation, wage disparity, housewifization, feminization, flexibility and casualization

Shahra Razavi ed. 2009. The gendered impacts of liberalization: Towards embedded liberalism? New York: Routledge (for UNRISD) I Ahmed 1994. Technology and Feminization of work, Economic and Political Weekly, vol 29 (18), WS 34 38. Maithreyi Krishnaraj. 1990. Womens work in the Indian census, Economic and Political Weekly, Vol 25 (48) pp 2663-72. Maria Mies. 1986. Indian women in subsistence and agricultural labour, New Delhi: Vistaar. Indira Hirway. 2002. Employment and unemployment situation in the 1990s How good is the NSS data? Economic and Political Weekly, Vol 37 (21), pp 2027-36. C. Kulshreshtha and Gulab Singh. 1996. Domestic Product by gender in the framework of the 1993 SNA, Economic and Political weekly, 31 (51), 3464-3334. Guy Standing. 1999. Global Feminisation through flexible labour A theme revisited, World Development, 27 (3). Jayati Ghosh. 2002. Globalisation, export oriented employment for women and social policy: A Case study of India, Social Scientist, Vol 30 (11 and 12), 17 60. T D Troung, S E Wieringa and A Chhachhi ed. 2006. Engendering Human Security: Feminist Perspectives, London: Zed Press Jain D and N Banerjee ed. 1985. Tyranny of the Household, New Delhi: Shakti Books Lindberg Anna. 2001. Class, Caste and Gender among Cashew workers in Kerala, Department of History, Lund University, Sweden Jain, D. 1996. Valuing Time, Economic and Political Weekly, Oct 26, Neetha N. 2006. Invisibility continues? Social Security and Unpaid women workers, Economic and Political Weekly, Vol XLI (32)
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Module 5: Gender and Well Being Defining well being Conceptualisation and measurement as if gender mattered Paths towards well being: case studies of public action and mainstreaming gender Links between womens well being and education Gender and health: Demographic Transition, Nutrition, Vulnerability to Violence and Conflict, Aspects of Sexual and Reproductive health

Mark McGillivray (Ed), Human Well-being: Concept and Measurement, Palgrave Macmillan: Basingstoke, 2007. S. Klasen 2006. UNDP's Gender-related Measures: Some Conceptual Problems and Possible Solutions , Journal of Human Development and Capabilities Vol 7 (2), pp. 243-74. Robin Jeffrey, Politics, Women and Wellbeing: How Kerala became a Model, New Delhi: OUP, 2003. Swapna Mukhopadhyay (ed.) The Enigma of the Kerala Woman: The Failed Promise of Literacy, New Delhi; Social Science Press, 2007. M. R Garofalo and M. Marra (2007) Work-Life Reconciliation Policies From Well-Being To Development: Rethinking EU Gender Mainstreaming. Unpublished.[http://mpra.ub.unimuenchen.de/9598/ ] Lombardo E, Meier P. 2006. Gender mainstreaming in the EU: Incorporating a feminist reading? European Journal of Womens Studies 13(2):151166. Jane Jenson 2008. Writing Women Out, Folding Gender In: The European Union "Modernises" Social Policy Social Politics Summer 2008; 15: 131 - 153. Judith Squires (2005) Is Mainstreaming Transformative? Theorizing Mainstreaming in the Context of Diversity and Deliberation, Social Politics, Fall 2005; 12: 366 - 388. Sylvia Walby 2005. Gender Mainstreaming: Productive Tensions in Theory and Practice Social Politics, Fall 2005; 12: 321 - 343. Diane Perrons 2005. Gender Mainstreaming and Gender Equality in the New (Market) Economy: An Analysis of Contradictions Social Politics, Fall 2005; 12: 389 - 411 Benschop YWM, Verloo M. 2006. Sisyphus sisters. Can gender mainstreaming escape the genderedness of organizations? Journal of Gender Studies 15(1):1934. Cecile Jackson (1998) Women and Poverty or Gender and Well-Being? Journal of International Affairs, Vol. 52. Susanne Schech and Mochamad Mustafa (2010) The Politics of Gender Mainstreaming Poverty Reduction: An Indonesian Case Study, Social Politics, Fall 2010. M A Oommen (2008) Microfinance and poverty alleviation: The case of Keralas Kudumbashree,
CSES WP #17. http://csesindia.org/admin/modules/cms/docs/publication/17.pdf
Kabeer, N. 2001. Conflicts over credit: re-evaluating the empowerment potential of loans to women in rural Bangladesh. World Development, vol 29, no.1 Albee, A.1996. Beyond banking for the poor: credit mechanisms and womens empowerment. Gender and Development, vol.4,no.3. Batliwala, S. 1993 The empowerment of women in South Asia: Concepts and Practices, New Delhi: Sage. Ed. Caroline Sweetman, Gender, Development and Health Oxford: OXFAM, 2001. Padmini Murhty and Clyde Lanford Smith Womens Global Health and Human Rights London: Jones and Bartlett, 2010. Arlette Campbell White, Thomas William Merrick, Abdo Yazbeck Reproductive Health: The Missing Millenium Development Goal:Poverty, Health and Development in a Changing World Washington: World Bank, 2006 G. Gordon and C. Kanstrup, Sexuality: The Missing Link in Womens Health, IDS Bulletin 23,1(1992) World Health Organisation, Sexual and Reproductive Health, Biennial Report, 2005-2006-2007, Geneva: WHO, 2008
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Ed. Gina M Wingood and Ralph J. DiClemente, Handbook of Womens Sexual and Reproductive Health, New York: Kluwer, 2003. Tessa Pollard and Susan Brin Hyatt, Sex, Gender and Health Cambridge: Cambridge University Press, 1999. Karen Oppenheim Mason, Gender and Demographic Change: What do We Know?, in The Continuing Demographic Transition ed. Jones, et al (Oxford: OUP, 1997), 158-83. Karen Oppenheim Mason and An-Margritt Jensen, Gender and Family Change in Industrialised Countries (Oxford: OUP, 1995) Kingsley Davis, 1945. The World Demographic Transition, Annales of the American Academy of Political and social science, Vol 237 Lesley Doyal. Gender Equity in Health: Debates and Dilemmas, in Gender Health and Healing: The Private-Public Divide. Ed. Bendelow et al (London: Routledge, 2002) Mohan Rao, The Unheard Scream: Reproductive Health and Womens Lives in India New Delhi: Zubaan and Panos, 2004 Female Genital Cutting: Clitoridectomy, Female Circumcision, Female Genital Mutilation or Rite of Passage, in Forsaken Females: The Global Brutalisation of Women, Andrea Parrot and Nina Cummings, Oxford: Rowan and Littlefield, 2006.
Module 6: Family, law and access to resources

Conceptualizing women property rights Role of family, state and markets The politics of land and gender Livelihoods - micro finance, environment
Agarwal Bina. 1994. A Field of ones own: Gender and Land Rights in India, Cambridge: Cambridge University Press Chowdhry, Prem. 1994. The Veiled women: Shifting gender equations in rural Haryana, 1880 1990, New Delhi: OUP. M Mukhopadhyay. 1998. Legally dispossessed. Gender, Identity and the process of law, Calcutta: Stree Publications Nitya Rao. 2008. Good women do not inherit land: Politics of land and gender in India, Social science press and Orient Blackswan. Kishwar, M. 1987. Toiling without rights: The Ho women of Singhbhum, Economic and Political Weekly, Vol 22 (3, 4, 5), 95 101, 149-55, 194-200. Razavi, S. 2009. Engendering the political economy of agrarian change, The Journal of Peasant Studies, Vol 36 (1), 197 - 226 Krishnaraj Maithreyi ed. 2007. Gender, Food Security and rural livelihoods, Kolkata: Stree. W Chung and M Dasgupta. 2007. The Decline of Son Preference in South Korea: the roles of development and public policy, Population and Development Review, Vol 33 (4), 757783. Mahmud, S. 2003. Actually how empowering is micro credit, Development and Change, vol 34 (4), 577 605 Kabeer, N. 2005. Is micro finance a magic bullet for womens empowerment? Economic and Political weekly, October 29. Green Cathy, S. Joekes and M Leach. 1998. Questionable Links: approaches to gender in environmental research and policy in Feminist Visions of Development
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404 : LABOUR ECONOMICS

At the end of the course the student should: - Have an empirical understanding of the Indian labour market; - be able to understand applications of formal theoretical models in labour economics to the Indian labour market; and - would be able to appreciate structural transformation of labour market in developing economies and learn theoretical models specific to labour markets in developing economies. It is assumed that the student has a basic grounding in Intermediate Micro and Macro Economics and Basic Econometrics The course is organized in terms of three lectures (four and half hours) per week initially. At the end of each module three sessions (four and half hours) would be spend on tutorials. Tutorials will focus on empirical applications of theoretical models discussed in the lecture sessions. Students would be assigned with home works, group exercises, classroom experiments; short field works etc as part of the tutorials of the course. Tutorials will also be used for homework solutions and clarification of lecture material. Module 1: Module 2: Module 3: Module 4: Module 5: Module 6: Module 7: Concepts, types and measurement of Labour Force, Workforce, participation rates, Employment, Unemployment, wages Individual and aggregate labour demand Individual and aggregate labour supply labour market equilibrium: Wages and productivity Human Capital: education and training Unions and labour market Features of Labour market in India
a. b. c. d. e. Unemployment and underemployment Labour Market Discrimination: caste and gender Labour market duality ( segmentations) urban and rural labour markets Income distribution, income inequality and poverty
Models 8:
Globalization and labour market in India a. Mobility: migration and turnover

b. Trade, technology, industrial organization and employment c. Labour market flexibility
Module 9:
Labour market and public policy in India

a. Public policies of employment generation b. Workers welfare programmes social security for workers
Basic reading

Ronald G. Ehrenberg and Robert Smith (2005) Modern Labour Economics, 5th Edition. New York: McGraw-Hill. Other handouts
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405 : LAW AND ECONOMICS

The main objectives of the course are the following: (a) to make the students understand the importance of law and legal process on the efficiency of economic activities/transactions; (b) to use the approach of economic analysis to assess the efficiency of specific laws and steps in legal process; (c) to critically understand the empirical literature on the relationship between economic growth and the status of legal institutions in developing countries. Though standard text books on `law economics' will be used for the course, case examples from the economic analysis of Indian laws and legal institutions will also be used for this purpose. 1. 2. An Introduction to Law And Economics Economic Analysis of Law An Economic Theory of Property

The Legal Concept of Property Bargaining Theory An Economic Theory of Property Enforcement of Property rights Protected? What can be Privately Owned? Owners rights with their Property Nature of Resources verses type of Property Rights Establishment and Verification of Property Rights Public and Private Property The Public Use of Private Property: Takings and Regulation Applications
3.An Economic Theory of Contract

Bargaining Theory: An Introduction to Contracts An Economic Theory of Contract Remedies as Incentives

a. Alternative Remedies b. Models of Remedies c. Investment in Performance and Reliance
Formation Defences and Performance Excuses a. Incompetence

b. Dire Constraints and Remote Risks
Applications
4.An Economic Theory of Tort Law

Defining Tort Law An Economic Theory of Tort Liability Understanding different concepts of damage Computing Damages Applications
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5.An Economic Theory of the Legal Process Why Sue? Exchange of Information Trial Appeals Judiciary Lawyers Profession 6.An Economic Theory of Crime and Punishment An Economic Theory of Crime and Punishment Crime in the United States Does Punishment Deter Crime Efficient Punishment The Death Penalty 7.An Introduction to Indian Law and Legal Institutions The Civil Law and the Common Law Traditions The History of Indian Legal Tradition Indian Judicial System Economics of Some Indian Laws a. Land Acquisition b. Contract c. Patent Protection Delays in Indian Legal System Weak Enforcement in India Citizens action and Judicial Activism Essential Readings:
Cooter, R. and T. Ulen (2004), Law and Economics, Boston: Pearson Addison Wesley
Supplementary Readings:

Melvin Aron Eisenberg, The Nature of the Common Law (1989), Harvard University Press, Cambridge Barzel Yoran, The Economics of Property Rights (1988), Cambridge University Press Eldin Aaron S and Stefan Reichelstein, Holdups Standard Breach Remedies and Optimal Investment, American Economic Association Hart Oliver, Firms, Contracts and Financial Structure (1995), Oxford University Press William Landes and Richard A. Posner, The Economic Structure of Tort Law (1987), Harvard University Press, Cambridge Steven Shavell, An Economic Analysis of Accident Law (1987), Harvard University Press, Cambridge Cooter Robert and Rubinfeld Daniel, Economic Analysis of Legal Disputs and their Resolution (1989), American Economic Association Landes William, An Economic Analysis of the Courts (1971), The University of Chicago Press, Chicago Gary S. Becker, Crime and Punishment: An Economic Approach (1968), National Bureau of Economic Research
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406 : ISSUES IN INDIAN AGRICULTURE

The intent of this course is to provide a deeper understanding of the Indian agricultural economy since independence. It will start with an overview of the performance of agriculture, followed by an analysis of the factors and determinants including, the role of the price, technology, organization and institutions. Some of the important topics that will be covered in the course are as follows: I. Performance of Agriculture since Independence: (1) (2) (3) (4) (5) (6) II. Agricultural growth in India since 1950-51 Planning for agricultural growth Changes in agrarian structure in India Agro-climatic conditions and agricultural pattern Analysis of agricultural growth and its component elements. Trends in agricultural diversification
Technological Change in Agriculture: (1) (2) (3) (4) (5) (6) Trends in irrigation development (water management) and its impact on agricultural productivity and stability Bio-physical technology and productivity growth Impact of agro- mechanical technology Technological change and distribution of gains Post harvest technology and Remote sensing in agriculture Issues in agricultural competitiveness
III. The Role of the Price Factor: (1) Price and supply response in Indian agriculture (2) Costs and returns to scale (3) Agricultural industry linkages (4) Terms of Trade (5) Agricultural subsidies, commodity prices and state intervention IV. Organizational Issues in Agriculture: (1) Inter-linked market and agricultural development (2) Land tenure (3) Rural labour market (4) Agricultural commodity and credit markets. V. The Institutional Issues: (1) Land reforms (2) Commercial banks and Co-operative credit (3) Agricultural research and extension (4) Public investment in agriculture and rural infrastructure. (5) Economic reforms and agriculture (6) Trade liberalization and its impact on agriculture.
VI. Market for Agricultural Commodities: (1) Changes in domestic demand and consumption (2) Issues with respect to marketed surplus, marketing channels, price spread, producers share in consumers rupee, value-chain, etc. (3) Exports of agricultural commodities.
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VII. The Livestock Sector: (1) Contribution of livestock to the national economy (2) Trends in livestock population, productivity and output and its determinants, technology and resource utilization (3) Role of institution in livestock development. VIII. The Fisheries Sector: (1) Trends in production, consumption and export of fish and fish products (2) Technological changes in marine and island fisheries and the tragedy of commons (3) Socio-economic conditions of fisher folk (4) Changes in institutional environment in the fisheries sector IX. Sustainable Agricultural Growth and Development: (1) Widening disparity between agriculture and non-agriculture (2) Reforming agriculture, constraints and scope (3) Impact of agricultural growth on the environment. (4) Climate change and agriculture. X. Rural Livelihoods and Agriculture: (1) Education, other socio-economic overheads and its effect on agriculture. (2) Public employment programmes, food security and other social welfare programmes on rural population. (3) Panchayati Raj and other rural institutions in agriculture and rural development. (4) Sustainable livelihoods and rural households.
Essential Readings:

Acharya, S.S and N.L. Agarwal. 2004. Agricultural Marketing in India, New Delhi: Oxford University Press. Bhalla, G.S. 2007. Indian Agriculture since Independence, National Book Trust, New Delhi, India. Bhalla, G.S. and Y.L. Alagh .1979. Performance of Indian Agriculture: A District-wise Study. Sterling Publishers Pvt. Ltd. New Delhi. Bhalla, G.S. and D.S. Tyagi. 1989. Patterns in Indian Agricultural Development: A District Level Study. Institute of Studies in Industrial Development, Narendra Niketan, Indraprastha Estate, New-Delhi- 110 002. Basu, K. 2005. Development, Markets and Institutions: Volume 1, New Delhi, Oxford University Press. Bardhan, P.1998. Theory of Agrarian Institutions, New York: Oxford University Press. Basu, K. 1997. Analytical Development Economics: The Less Developed Revisited, MIT Press, Massachusetts. Ellis, F. 2000. Rural Livelihoods and Diversity in Developing Countries, Oxford: Oxford University Press. Ellis, F and H.A. Freeman (ed.). 2005. Rural Livelihoods and Poverty Reduction Policies, Routledge, Milton Park, Oxon. Millennium Studies. 2004. State of the Indian farmer- A Millennium Study. Department of Agriculture and Cooperation, Ministry of Agriculture, Government of India; New Delhi, Different 27 Volumes. Narain, D and K.N. Raj (ed). 1988. Studies on Indian Agriculture, Calcutta, K.P. Bagchi and Cooperation. Raj, K.N. 1990. Organizational Issues in Indian Agriculture, Delhi: Oxford University Press. Rose, R.; C. Tanner and M.A. Bellamy (ed.). 1997. Issues in Agricultural Competitiveness: Markets and Policies, International Association of Agricultural Economists, Occasional paper 7, Dartmouth Publishing Company Ltd., England. Rudra, A. 1982. Indian Agricultural Economics, New Delhi, Allied. Vaidyanathan, A. 2010. Agricultural Growth in India: Role of Technology, Incentives and Institutions, New Delhi: Oxford University Press.
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Rao, C.H.H. 2005. Agriculture, Food Security, Poverty and Environment, New Delhi: Oxford University Press. Reddy, S.S.; P.R. Ram; T.V.N. Sastry and I.B. Devi. 2004. Agricultural Economics, New Delhi: Oxford University Press. Virmani, S.M.; J.C. Katyal; H.Eswaran and I.P. Abrol (ed). 1994. Stressed Ecosystem and Sustainable Agriculture, New Delhi: Oxford University Press. Apart from these essential readings, the current issues appeared in the journals of national as well as international importance- Indian Journal of Agricultural Economics, Economic and Political Weekly, Indian Journal of Labour Economics, American Journal of Agricultural Economics, Journal of development studies, Journal of Agrarian Change, etc.- are also suggested.
407 : ISSUES IN INDIAN INDUSTRY

The course will familiarise the participants with the importance of industrialization for growth and employment creation. It will introduce them to all the major issues with respect to Indias industrial sector while at the same time acquaint them with the major databases underlying these issues. The student will thus be equipped with the researchable issues, methods of analyzing data and drawing policy conclusions. List of topics: 1. Preliminary concepts: Firm, Industry, Manufacturing, Services, Extractive and Construction-the concept of value added 2. Evolution of the industrial sector-place assigned to industries in Indias five year plans 3. The policy support to industrialization over the years with a special emphasis on the New Industrial Policy Statement of 1991- Land as a constraint for industrialization- Conflicts 4. The growth performance of the industrial sector since independence- what we have learnt from the stagnation debate- performance of the industrial sector since liberalization 4.1: Understanding the database of the industrial sector: The Index of Industrial Production-Industrial Sector in the National Accounts Statistics- Annual Survey Industries- the Prowess Database of CMIE 5. Growth of private industrial entrepreneurship- indicators-state support- role of financeventure capital-incubators and other support mechanisms 6. The role assigned to public sector enterprises and the recent policy on privatizationevaluation of privatization efforts 7. The Small and Medium Scale Sector (SME)-definitional changes-Performance of the SME sector 8. Foreign Companies in the industrial sector-their share in total gross domestic investmentsPerformance of foreign companies-contribution of foreign companies to exports, technology and employment 9. Outward FDI from India-its magnitude-geographical and industry-wide distributionfinancing of outward FDI-Contribution of Outward FDI 10. Financing of industries-Internal vs External funds- Growth of the capital market 11. Relationship between the growth of industrialization and employment especially since economic liberalization 12. Energy intensity in Indian industries-trends over time-are the industries becoming energy efficient mover time?. 13. Green issues w.r.t industrialization- pollution control and monitoring instruments-effect of international governance rules.
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Readings

Bala, Subrahmanya, M H (2004), Small Industry and Globalisation Implications, Performance and Prospects, Economic and Political Weekly, Vol. 39, NO: 18 Goldar, B N (2010), Energy Intensity of Indian Manufacturing Firms: Effect of Energy Prices, Technology and Firm Characteristics, Delhi: Institute of Economic Growth, http://www.mse.ac.in/Frontier/m13%20Goldar%20A.pdf Lall, Sanjaya (1982): Developing Countries as Exporters of Technology, Macmillan, London. Lall, Sanjaya(1983): The Rise of Multinationals from the Third World, Third World Quarterly, Vol. 5, No. 3, July. Mani, Sunil and M. Vijayabaskar (1998), A Curmudgeon's Guide to Economic Reforms in India's Manufacturing Sector, Economic and Political Weekly, Vol. 33, No. 51 Morris, Sebastian (1987): Trends in Foreign Direct Investment from India (1950-1982), Economic and Political Weekly, Vol. 22, No. 46 and 47, November 14 and 21. Nagaraj, R (2003): Industrial Policy and Performance: Which Way Now?, Economic and Political Weekly, August 30-September 5, Vol. 38, No. 35. Nagaraj, R (2006), Public sector performance since 1950, Economic and Political Weekly, Vol. 41, No: 25. Nagaraj R (2006): Indian Investments Abroad: What Explains the Boom?, Economic and Political Weekly, Vol. 41, No. 46, November 18. National Council of Applied Economic Research (2010), FDI in India and its growth linkages, Delhi: National Council of Applied Economic Research. Nayyar, Deepak (1994) Industrial Growth and Stagnation: The Debate in India, editor, Bombay; Oxford University Press. Nayyar, Deepak (2008): Internationalisation of Firms from India: Investments, Mergers and Acquisitions, Oxford Economic Studies, Vol. 30, No. 1, March. Pushpangadan K and N Shanta (2009), The Dynamics of Competition: Understanding Indias manufacturing sector, New Delhi: Oxford University Press. Ramamurti, Ravi (2009): What have we leant about the emerging market MNEs?, in Ravi Ramamurti and Jitendra V Singh edited, Emerging Multinationals in Emerging Economies, New York: Cambridge University Press.
408: POLITICAL ECONOMY, DEVELOPMENT AND GOVERNANCE

It is well known that an effective government responding to the needs of the people is required not only for managing the economy well but also for the social and human development of the society. Public economics identifies the situations where non-market institutions and governance are required and how do `efficient governments mobilize and allocate resources. How do such well functioning institutions and governments come to exist? This is not addressed usually in public economics. This is the main focus of the proposed course. A political economy approach is used here, and the course is also used to introduce political economy to the students of MA Applied Economics. Political economy is broadly about the relationship between political and economic interests. This is a two-way relationship. Political power facilitates influence over the sharing of public resources and also on public policies that may have a bearing on private wealth. Economic status of individuals may determine their specific positions in politics. Political economy influences development in different ways. First of all, it creates the environment within which economic activities take place including governance. Structures of governance and economic environment impact the prospects for economic growth, and this can affect development. Beyond economic growth, the development also depends on how the resources (especially the public resources) are allocated within a society. Are there enough schools and healthcare centers
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provided by the government? Is there an adequate social security for those people who are unable to gain an income from labor market? The answers to such questions would determine the nature of social and human development in a society. Political economy plays an important role in taking decisions on these matters. There are different ways of analyzing political economy. First is the Classical political economy associated with people like Adam Smith. However Karl Marx had greater influence in reshaping classical political economy, and hence Marxism in its different forms has an impact on understanding of political economy today. Of late, neoclassical economics and new institutional economics have strengthened what is called `new political economy and this is being used widely to understand the economic and political transition of different countries toady. This course proposes to cover the following issues: 1. The need for non-market institutions - drawing lessons from public economics 2. Efficient and inefficient institutions 3. How do efficient institutions come to exist? 4. Institutions and Political Economy 5. What is political economy and the need to study it 6. Different traditions in political economy a. Classical Political Economy b. Marxist Political Economy c. New Political Economy 7. Political economy and Economic Growth i. Inequality and Economic Growth 8. Political economy and social/human development 9. Political economy and Governance i. Political Economy and Corruption 10. Political Transition in the development world a. Elite Capture b. Political Clientelism i. Competitive Populism c. Transition to Liberal democracy 11. Special Topics: a. Political economy and Economic/institutional reforms b. Political economy and local governance
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Indicative references for teaching Acemoglu, D., Johnson, S. and Robinson, J.A. (2000) The colonial Origins of Comparative Development: An Empirical Investigation, American Economic Review, 91(5), pp. 1369-1401 Auty, R. A. (200), Patterns of Rent Extraction and Development in Developing Countries: Implications for Governance, Economic Policy and Performance, in Mavrotas, G. and A. Shorrocks, Palgrave Macmillan UNU Wider, New York Bardhan (1989) The Economic Theory of Agrarian Institutions, Oxford: Oxford University Press. Alesina, A. and Rodrik, D., Distributive Politics and Economic Growth, Quarterly Journal of Economics, 109, 2, (1994), 465-90. Bardhan, P., Mitra, S. Mukherjee, D. and Sarkar, A. , Local Democracy and Clientelism: Implications for Political Stability in West Bengal, Economic and Political Weekly, (2009) 28 February Bardhan, P. and Mukherjee, D., Relative Capture of Local and Central Governments, CIDER working paper no. C99-109, (1999) Chatterjee, P., Politics of the Governed, New Delhi: Permanent Black, (2004) Diamon, L and M.F Plattner (1995) Economic Reform and Democracy, Baltimore: John Hopkins University Press Dixit, A., Governance Institutions and Economic Activity, American Economic Review 99, 1, (2009) , 5-24 Dreze, J and A. K. Sen (eds.), Indian Development: Selected Regional Perspectives, New Delhi: Oxford University Press, (1997) Gindle, M. S., Politics and Policy Implementation in the Third World, Princeton NJ: Princeton University Press, (1980) Migdal, J. S., A. Kohli, and V. Shue, State Power and Social Forces: Domination and Transformation in the Third World, Cambridge: Cambridge University Press (1994) North, D. (1990), Institutions, Institutional Change and Economic Performance, Cambridge: Cambridge University. Press Olson, M., 1993, Dictatorship, Democracy, and Development, American Political Science Review 87: 567-576 Prabhu, S. (2001) Economic Reform and Social sector Development: A study of Two Indian States, New Delhi: Sage Roland, G. (2000) Politics, Market and Firms, The MIT Press: Cambridge, Mass. Santhakumar, V. (2008) Analysing Social Opposition to Reforms, Sage, New Delhi Santhakumar, V. (2011) Economic Analysis of Institutions, Sage, New Delhi Shleifer, A. and Vishny, R., The Grabbing Hand; Cambridge, MA: Harvard University Press, (1998) Stein, B. and Subramanian, S., 1996 , Institutions and Economic Change in South Asia, Oxford: Oxford University Press.
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409: ECONOMICS OF PROJECT EVALUATION

Course Objectives: The aim of the course is to provide the students with the theoretical tools and practical experience necessary for the appraisal of investment projects. This course places particular emphasis on understanding the concepts h and the advantages and drawbacks of each of the main approaches used. The course will also familiarise the students with case studies which demonstrate the use of these techniques in practice. Course description: Planning & Analysis Overview: Phases of capital budgeting Levels of decision making. Resource Allocation Framework: Key criteria for allocation of resource elementary investment strategies portfolio planning tools strategic position and action evaluation aspects relating to conglomerate diversification interface between strategic planning and capital budgeting. Generation and screening of project ideas: Generation of ideas monitoring the environment regulatory framework for projects corporate appraisal preliminary screening project rating index sources of positive NPV qualities of a successful entrepreneur the porter model for estimation of profit potential of industries. Market and demand analysis: Situational analysis and specification of objectives collection of secondary information conduct of market survey characterization of the market demand forecasting market planning. Technical analysis: Study of material inputs and utilities manufacturing process and technology product mixes plant capacity location and site machinery and equipment structures and civil works project charts and layouts work schedule Financial Analysis: Estimation of cost of project and means of financing estimates of sales and production cost of production working capital requirement and its financing estimates of working results breakeven points projected cash flow statement projected balance sheet. Project cash flows: Basic principles of measurement of cash flows components of the cash flow streams viewing a project from different points of view definition of cash flows by financial institutions and planning commission biases in cash flow estimation. Appraisal criteria: Net Present Value benefit cost ratio internal rate of returns urgency payback period accounting rate of returns investment appraisal in practice. Analysis of Risk: Types and measure of risk simple estimation of risk sensitivity analysis scenario analysis Monte-Carlo simulation decision tree analysis selection of project risk analysis in practice. Special decision situations: Choice between mutually exclusive projects of unequal life optimal timing decision determination of economic life inter-relationships between investment and financing aspects inflation and capital budgeting. Analysis of firm and market risk: Portfolio theory and capital budgeting capital asset pricing model estimation of key factors CAPM and Capital budgeting. Social Cost Benefit Analysis(SCBA): Rationale for SCBA UNIDO approach to SCBA Little and Mirrlees approach to SCBA.
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Multiple projects and constraints: Constraints methods of ranking mathematical programming approach linear programming model Qualitative Analysis: Qualitative factors in capital budgeting strategic aspects strategic planning and financial analysis informational asymmetry and capital budgeting organizational considerations. Environmental appraisal of projects: types and dimensions of a project meaning and scope of environment Environment Environmental resources values environmental impact assessment and environmental impact statement. Project financing in India: Means of finance norms and policies of financial institutions SEBI guidelines Sample financing plans structure of financial institutions in India schemes of assistance term loans procedures project appraisal by financial institutions. Project Management: Forms of project organization project planning project control human aspects of project management prerequisites for successful project implementation. Network techniques for project management development of project network time estimation determination of critical path scheduling when resources are limit PERT and CPM models Network cost system (Only problems on resources allocation and resources leveling) Project review and administrative aspects: Initial review performance evaluation abandonment analysis administrative aspects of capital budgeting evaluating the capital budgeting system of an organization. Suggested Readings: Chandra, Prasanna. 2006 PROJECTS: Planning, Analysis, Financing, Implementation, and Review, 6th ed. Tata McGraw Hill. Cleland, David I., 1995 Project Management: Strategic, Design and Implementation, McGraw Hill, New Delhi. Dasgupta, Partha, Amartya Sen and Stephen Marglin, 1972. Guidelines for Project Evaluation, Oxford & IBH, New Delhi. Esty, Benjamin 2003 Modern Project Finance: A Casebook. John Wiley & Sons. Finnerty, John D. 2007 Project Financing: asset based financial engineering, 2nd ed John Wiley & sons. Ghattas, R.G. and Sandra L.McKee, 2003 Practical Project Management, Pearson Education, Delhi. Kasor, Shrutika 2003 Project Management, Sumit Enterprises, New Delhi, Mikkelsen, Britha 2005 Methods for Development Work and Research, Sage Publications, New Delhi. Moshin, M., 1977 Project Planning and Control, Vikas Publishing House, New Delhi. Pitale, R.L. 1987 : Project Appraisal Techniques, New Delhi, Oxford and IBH. Planning Commission Manual Project Appraisal: industries, Govt of India UNIDO, Guidelines for practical project appraisal
JUNE 28, 2012

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CENTRE FOR DEVELOPMENT STUDIES

CDS Thiruvananthapuram MA Applied Economics - Syllabus

CDS Thiruvananthapuram MA Applied Economics - Syllabus

CDS Thiruvananthapuram MA Applied Economics - Syllabus

CDS Thiruvananthapuram MA Applied Economics - Syllabus

CDS Thiruvananthapuram MA Applied Economics - Syllabus

CDS Thiruvananthapuram MA Applied Economics - Syllabus

CDS Thiruvananthapuram MA Applied Economics - Syllabus

CDS Thiruvananthapuram MA Applied Economics - Syllabus

CDS Thiruvananthapuram MA Applied Economics - Syllabus

Lewis, Margaret (2011) Applied Statistics for Economists. Routledge.

Rohwer, Gotz (2012) Models in Statistical Social Research, Routledge.

104 : MATHEMATICS FOR ECONOMICS

CDS Thiruvananthapuram MA Applied Economics - Syllabus

CDS Thiruvananthapuram MA Applied Economics - Syllabus

Melkumian, Arsen (2010) Mathematical Economics. Routledge.

CDS Thiruvananthapuram MA Applied Economics - Syllabus

201: GROWTH AND DEVELOPMENT

CDS Thiruvananthapuram MA Applied Economics - Syllabus

CDS Thiruvananthapuram MA Applied Economics - Syllabus

CDS Thiruvananthapuram MA Applied Economics - Syllabus

CDS Thiruvananthapuram MA Applied Economics - Syllabus

CDS Thiruvananthapuram MA Applied Economics - Syllabus

Data Sources & References:

Krishna, K. L. (1997): Econometric Applications in India, OUP, New Delhi.

Relevant web sites:

www.rbi.org.in http://mospi.nic.in/mospi_nsso_rept_pubn.htm http://development.thinkingwithdata.com

CDS Thiruvananthapuram MA Applied Economics - Syllabus

203: INTERNATIONAL ECONOMICS

CDS Thiruvananthapuram MA Applied Economics - Syllabus

204: INDIAN ECONOMIC DEVELOPMENT

CDS Thiruvananthapuram MA Applied Economics - Syllabus

CDS Thiruvananthapuram MA Applied Economics - Syllabus

CDS Thiruvananthapuram MA Applied Economics - Syllabus

301 : PUBLIC ECONOMICS

CDS Thiruvananthapuram MA Applied Economics - Syllabus

CDS Thiruvananthapuram MA Applied Economics - Syllabus

CDS Thiruvananthapuram MA Applied Economics - Syllabus

Fiscal Federalism: Theory & Practice

Fiscal Imbalance and Management of Public Debt

CDS Thiruvananthapuram MA Applied Economics - Syllabus

Current Issues in Indian Public Finance

302 : HISTORY OF ECONOMIC THOUGHT

CDS Thiruvananthapuram MA Applied Economics - Syllabus

CDS Thiruvananthapuram MA Applied Economics - Syllabus

Economic Thought at Historical Crossroads?

303 : TOPICS IN APPLIED ECONOMETRICS

CDS Thiruvananthapuram MA Applied Economics - Syllabus

CDS Thiruvananthapuram MA Applied Economics - Syllabus

CDS Thiruvananthapuram MA Applied Economics - Syllabus

304 : ECONOMICS OF TECHNOLOGY AND INNOVATION

CDS Thiruvananthapuram MA Applied Economics - Syllabus

11: Some emerging issues:

305 : POPULATION AND DEVELOPMENT

CDS Thiruvananthapuram MA Applied Economics - Syllabus

306 : INDUSTRIAL ORGANIZATION

CDS Thiruvananthapuram MA Applied Economics - Syllabus

5. Cartels and collusion

10. Contracts and Incentives

CDS Thiruvananthapuram MA Applied Economics - Syllabus

12. Competition Policy

CDS Thiruvananthapuram MA Applied Economics - Syllabus