Paper I
1. Advanced Microeconomics:
(a) Marshallian and Walrasian Approaches to Price Determination
(b) Alternative Distribution Theories: Ricardo, Kaldor, Kalecki
(c) Market Structures: Monopolistic Competition, Duopoly, Oligopoly
(d) Modern Welfare Criteria: Pareto, Hicks and Scitovsky, Arrow’s Impossibility Theorem, A.K. Sen’s Social Welfare Function
2. Advanced Macroeconomics:
Approaches to Employment, Income, and Interest Rate Determination:
- Classical, Keynesian (IS-LM Curve), Neo-classical Synthesis, and New Classical
- Theories of Interest Rate Determination and Interest Rate Structure
3. Money, Banking, and Finance:
(a) Demand for and Supply of Money:
- Money Multiplier, Quantity Theory of Money (Fisher, Pigou, and Friedman), and Keynes’ Theory on Demand for Money
- Goals and Instruments of Monetary Management in Closed and Open Economies
- Relationship Between the Central Bank and the Treasury
- Proposal for Ceiling on Growth Rate of Money
(b) Public Finance and its Role in Market Economy:
- In Stabilization of Supply, Allocation of Resources, and in Distribution and Development
- Sources of Government Revenue, Forms of Taxes and Subsidies, Their Incidence and Effects
- Limits to Taxation, Loans, Crowding-Out Effects, and Limits to Borrowings
- Public Expenditure and Its Effects
4. International Economics:
(a) Old and New Theories of International Trade:
- Comparative Advantage
- Terms of Trade and Offer Curve
- Product Cycle and Strategic Trade Theories
- Trade as an Engine of Growth and Theories of Underdevelopment in an Open Economy
(b) Forms of Protection:
- Tariff and Quota
(c) Balance of Payments Adjustments: Alternative Approaches:
- Price Versus Income, Income Adjustments Under Fixed Exchange Rates
- Theories of Policy Mix
- Exchange Rate Adjustments Under Capital Mobility
- Floating Rates and Their Implications for Developing Countries: Currency Boards
- Trade Policy and Developing Countries
- BOP Adjustments and Policy Coordination in Open Economy Macromodel
- Speculative Attacks
- Trade Blocks and Monetary Unions
- WTO: TRIMS, TRIPS, Domestic Measures, Different Rounds of WTO Talks
5. Growth and Development:
(a) Theories of Growth:
- Harrod’s Model
- Lewis Model of Development with Surplus Labour
- Balanced and Unbalanced Growth
- Human Capital and Economic Growth
- Research and Development and Economic Growth
(b) Process of Economic Development of Less Developed Countries:
- Myrdal and Kuznets on Economic Development and Structural Change
- Role of Agriculture in Economic Development of Less Developed Countries
(c) Economic Development and International Trade and Investment:
- Role of Multinationals
(d) Planning and Economic Development:
- Changing Role of Markets and Planning
- Private-Public Partnership
(e) Welfare Indicators and Measures of Growth:
- Human Development Indices
- The Basic Needs Approach
(f) Development and Environmental Sustainability:
- Renewable and Non-renewable Resources, Environmental Degradation
- Intergenerational Equity in Development
Paper II
Indian Economy in Pre-Independence Era:
Land System and its Changes, Commercialization of Agriculture, Drain Theory, Laissez-Faire Theory, and Critique
Manufacture and Transport:
- Jute, Cotton, Railways, Money and Credit
Indian Economy After Independence:
A. The Pre-Liberalization Era:
(i) Contribution of Vakil, Gadgil, and V.K.R.V. Rao
(ii) Agriculture:
- Land Reforms and Land Tenure System
- Green Revolution and Capital Formation in Agriculture
(iii) Industry:
- Trends in Composition and Growth
- Role of Public and Private Sector
- Small Scale and Cottage Industries
(iv) National and Per Capita Income:
- Patterns, Trends, Aggregate and Sectoral Composition and Changes Therein
(v) Broad Factors Determining National Income and Distribution:
- Measures of Poverty, Trends in Poverty, and Inequality
B. The Post-Liberalization Era:
(i) New Economic Reform and Agriculture:
- Agriculture and WTO, Food Processing, Subsidies, Agricultural Prices, and Public Distribution System
- Impact of Public Expenditure on Agricultural Growth
(ii) New Economic Policy and Industry:
- Strategy of Industrialization, Privatization, Disinvestments
- Role of Foreign Direct Investment and Multinationals
(iii) New Economic Policy and Trade:
- Intellectual Property Rights: Implications of TRIPS, TRIMS, GATS, and New EXIM Policy
(iv) New Exchange Rate Regime:
- Partial and Full Convertibility, Capital Account Convertibility
(v) New Economic Policy and Public Finance:
- Fiscal Responsibility Act, Twelfth Finance Commission, Fiscal Federalism, and Fiscal Consolidation
(vi) New Economic Policy and Monetary System:
- Role of RBI Under the New Regime
(vii) Planning:
- From Central Planning to Indicative Planning
- Relation Between Planning and Markets for Growth and Decentralized Planning: 73rd and 74th Constitutional Amendments
(viii) New Economic Policy and Employment:
- Employment and Poverty, Rural Wages, Employment Generation
- Poverty Alleviation Schemes, New Rural Employment Guarantee Scheme
