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Department of Economics Delhi School of Economics

Minutes of the Meeting

Subject: B.A. (Hons.) Economics


Dates of meetings: 22 April and 5 May 2008

Chairperson: Prof. Aditya Bhattacharjea (DSE)

The following teachers were present:

1.    Saumyajit Bhattacharya, K.M.C2.                                      Nalini Nayak, PGDAV3.                                      Divya Misra, LSR4.                                      Vijaya Rajni, CVS5.                                      Nandini Dutta, Miranda House6.                                      Dipavali Debroy, SGGSCC7.                                      A. Sunil Dharan, Moti Lai Nehru college (M)8.                                      Harish Dhawan, RLA(Eve.)9.                                      Kulwinder Kaur, SGTB Khasla College10.                               Bijoyata Yonzon, JDMC11.                               Uma, Lakshmi Bai College (Adhoc)12.                               Meena gupta, Daulat Ram College13.                               Niti Bhutani, Hindu College14.                               Anusha Nath, St. Stephen's (Adhoc)15.                               Mamta Datt, Shivaji college16.                               Sapna Kaul, Kalindi College.(Adhoc)17.                               Shailaja S. Thakur, S.v. College18.                               T.M. Thomas, Deshbandhu College19.                               Rakesh Ranjan, SRCC(Adhoc)20.                               Avinash K. Jha, SRCC21.                               Shilpy Nagalia, Shyam lal (Eve.), (Adhoc)22.                               A. Vijay Kumar, Ramjas College23.                               Vandana Tulsyan, Dyal Singh24.                               Jayesh Adeshra, Shaheed Bhagat Singh College25.                               Anjali Khurana, Hansraj College (Adhoc)

         The following readings from last year's list are being dropped: 12 (Lazonick), 13 (Hirst and Zeitlin), 19 (Patnaik). It was also agreed to drop Reading 11 (Hart), but as no satisfactory alternative was found, it may be retained for one more year.         New readings by Amin, Bottomore, O'Connor and Tonkiss (as given in the list below) are to be introduced.         A set of the new readings may be collected from the photocopy shop at the DSE.         Pattern of examination remains unchanged: The question paper will consist of one compulsory question (12 marks) with internal choice, which may be set on any of the topics, and four optional questions (13 marks each), out of which students should be required to attempt two.         In order for teachers to share their experiences, suggestions and problems during the course of the academic year, a new e-group for this course has been created. Mr Harish Dhawan of RLA College (evening) has kindly agreed to coordinate the group. All members of the old group have been migrated to the new group, and others who attended the meetings should have received an e-mail invitation to join. Those teachers teaching the course who have not received the invitation, or who could not attend the meeting, and desire to join the e-group, should send an e-mail to Mr Dhawan at

dhawan harish@vahoo.com giving their college affiliation.

Revised reading list

1.               J. Gurley (1978): "The Materialist Conception of History" , Ch.2.1 in R. Edwards, M.Reich and T. Weisskopf (ed.) , The Capitalist System (2nd edition), and editorial comment in 3rd edition (1986) pp. 7-10, Prentice Hall.2.       O. Lange, Political Economy, vol 1, Chapters 1 and 2.3.       E.K. Hunt (2004), History of Economic Thought, M.E. Sharpe (Indian edn, Shilpi Publications), Chapter 1.4.       Irfan Habib (1995): "Capitalism in History", Social Scientist, Vol. 23, No. 7/9 (Jul. - Sep., 1995), pp. 15-31.

5.              R.L. Heilbroner (1987), "Capitalism", in The New Palgrave Dictionary of Modem Economics, Macmillan. Also reprinted as Chapter 2 in Behind the Veil of Economics by R.L. Heilbroner (1988), W.W.Norton.6.              P. Sweezy (1942), The Theory of Capitalist Development, chapters 2, 4, 5, 6, 8 and 10.7.      T. Bottomore et al (eds.), The Dictionary of Marxist Thought, OUP (1983) (Indian edition, Maya Blackwell, 2000). Entries on "Class" by Bottomore,* and on "Economic Crises" and "Falling Rate of Profit" by A. Shaikh.8.              *T. Bottomore (1985), Theories of Modern Capitalism, Allen & Unwin. Chapters on Weber and Schumpeter.9.      J. Schumpeter (1942), Capitalism, Socialism and Democracy, George Allen and Unwin (1976 edition), Chapters 6, 7 and 8.10.   P. Baran (1957), The Political Economy of Growth, Chapter 3, (Pelican edition, 1973).

ll.O. Hart (1995), "Corporate Governance: Some Theory and Implications", Economic Journal, May 1995.

12.       Fran Tonkiss (2006), Contemporary Economic Sociology: Globalisation, Production, Inequality (Routledge India 2008 reprint), chapters 4 (Fordism and After), 6* (Class) and 7* (Inequality).13.       Ash Amin (ed) (1994), Post-Fordism: A Reader, Blackwell, chapters 2 (Elam) and 8* (Jessop).14.       M. Kalecki (1943), "Political Aspects of Full Employment", in E.K. Hunt and J.G. Schwarz (eds.) A Critique of Economic Theory (Also in Kalecki, Selected Essays on the Dynamics of the Capitalist Economy , Cambridge University Press, 1971 ).15.  R. Heilbroner, "The Role of the State", ch.4 in The Nature and Logic of Capitalism (excluding section 1).16.       S. Hymer, "The Multinational Corporation and the Law of Uneven Development", in H. Radice (ed.) International Firms and Modern Imperialism (also in J. Bhagwati (ed.) Economics and the World Order from the 1970s to the 1990s)

17.       R. Kiely (1998), "Transnational Companies, Global Capital, and the Third World", in Kiely and Marfleet (eds), Globalization and the Third World (also in R.Kozul - Wright and R.Rowthorn (ed.), Transnational Corporations and the Nation State, Macmillan).18.       Prabhat Patnaik (2006), "Lenin's Theory of Imperialism Today'Yin K.S. Jomo (ed.) The Long Twentieth Century: The Great Divergence: Hegemony, Uneven Development and Global Inequality, OUP.19.       *0'Connor, James (1970), "The Meaning of Economic Imperialism," in Robert Rhodes,

ed., Imperialism and Underdevelopment, New York: Monthly Review Press (pages 101 to 111).

Readings marked with a * are primarily for teachers. They can be considered for students from the following academic year (2009-10).

As a rough guide, the following is the topic-wise list of readings. However, students should be made aware that several of the readings cut across topics, and their interconnections should be recognized. Also, it may be advisable to teach Topic 3 immediately after Topic 1.

Topic                                                                                      Readings

1             Analysing Social Change in Historical Perspective            1, 22             Capitalism as an Economic System                                  5-83             The Transition from Feudalism to Capitalism                     3,44             The Evolving Structure of Capitalism                                9-155             Capitalism in a Global Context                                         16-19


Subject: B.A.(Hons.) Economics

Paper No. 09,   Development Theory &    Experience

Date of Meeting: April 23, 2008.

Convenor: Prof. Rohini Somanathan

The following members were present:

1.   M. Padma Suresh, S.V. College2.                          Santana Surendran, SBCC3.                          Anindita Roy Saha, LP. College4.                          Puja Saxena, Hindu College5.                          Shirin Akhter, Zakir Hussain College6.                          Isha Chawla, Lakshmi Bai College7.                          Rajni Singh, J & M College8.                          Asmita Kabra, Ramjas College9.                          Kamlesh Aggarwal, SPM College10.                   Nirmal Ahluwalia, Janki Devi Mahavidyalaya11.                   Gursharan Rastogi, R.L.A (Evening)12.                   Vineeta Sharma, K.M.C.13.                   Deepti Tandon, D.C.A.C.14.                   Neha Gupta, SRCC15.                   Rramilla, S.L.College (E)16.                   Ajay Gupta, S.L.College (E)17.                   Indranil Chowdhury, P.g.D,.a,.V. (M)18.                   Ravinder Jha, Miranda House,19.                   Alka Budhiraja, Miranda House20.                   Sonal Mandal, K.N.College21.                   Shashi Chopra, Dyal Singh College22.                   Dolly Menon, LSR College23.                   Rekha Sharma, GGSCollege of Commerce24.                   Ajad Singh, MLN College '25.                   Reetika Rana, Shivaji College

Purpose: To share experiences from teaching the new readings during the academic year 2007-2008, make appropriate changes and discuss any changes to be made in the structure of the exam.

On the basis of comments received, some changes in the reading list have been made. These are listed below. As regards the examination, the number of questions will remain the same as last year. In addition to Chapters 6 and 8, numerical questions on Chapters 3 and 14 will be admissible.

The following changes in the reading list are to be made:

Tables 5,8, 9 of the HDR, 2006 are included to add data on demography, child and maternal health and global health.

Partha Dasgupta, An Inquiry into Well-Being and Destitution, Clarendon, 1993, chapter 4, section 4.1 has been deleted from the reading list.

Amartya Sen, "Poverty as Capability Deprivation", Chapter 4 in Development as Freedom, OUP 2000 is introduced in place of "Social Justice and the Distribution of Income" by Amartya Sen.

Dani Rodrik, "Fifty Years of Growth (and lack thereof): An Interpretation". This is Chapter 1 of the book "One Economics, Many Recipes: Globalization, Institutions and Economic Growth'' is to be included in Section 1 on Growth and Development. It is also to be used in the discussion on the State and the Market and in place of Robert Barro's reading on the Determinants of Economic Growth.

Many of those present felt it would be desirable to find alternative readings on Globalization. The last chapter of Joseph Stiglitz's book, Globalization and Its Discontents and the article Globalization and Its Challenges by Stanley Fischer are to be read instead of Kaushik Basu's article.

In the section on Credit Markets, Robert Townsend's article has been replaced by Rural Credit in 20' Century India: Overview of History and Perspectives, Economic and Political Weekly, April 14, 2007.

In addition, for the section on State and the Market, teachers may consult Chapter 8 of the textbook Development Economics: From the Poverty to the Wealth of Nations by Hayami and Godo. This is NOT required reading and for this year should be used as a teacher's reference if necessary. The issue of whether or not to incorporate it into the course will be taken at next year's meeting.

All new readings will be available in the RTL library, the Photostat shop in the DSE premises and in cases where electronic copies are available, these will be circulated via email to those present at the meeting.

We also briefly discussed the ILLL programme launched by Delhi University under which course material for all economics courses would be prepared. This would be a good opportunity to review and supplement the readings in this course.


List of Readings, 2008-2009


   Debraj Ray, Development Economics, (DE) Princeton University Press, 1998.   Partha Dasgupa, Economics: A Very Short Introduction, (AVSI), Oxford University Press, 2007.   Abhijit Banerjee, Roland Benabou and Dilip Mookerjee ed. Understanding Poverty (UP), OUP, 2006.

Readings by Topic

1 Growth and Development

Development and Underdevelopment

   AVSI, pages 1-29: Characteristics of Development   DE, chapter 2: Some historical explanations for differences in development indicators.   Human Development Report, 2006: Country Rankings (Tables 1, 5,8, 9, 14, 15 and 21), Calculating the Human Development Index (page 394), definitions of statistical terms (pages 404-410)   Dani Rodrik (2004:), "Fifty Years of Growth (and lack thereof): An Interpretation". Chapter 1 of One Economics, Many Recipes: Globalization, Institutions and Economic Growth

Poverty and Inequality

   DE, chapter 6, chapter 7 and chapter 8 on poverty measures and correlates (8.1,8.2, 8.3 and appendix for FGT measures)   Angus Deaton," Measuring Poverty", chapter 1 in UP (on defining poverty lines)   Amartya Sen, "Poverty as Capability Deprivation,"chapter 4 in Development as Freedom, OUP, 2000.    Thomas Piketty, "The Kuznet's Curve, Yesterday and Tomorrow ", UP, chapter 4.

State and the Market

   AVSI, Chapters 2 (Trust), 3 (Communities) and 4 (Markets) (pages 30-89)   Thomas C. Schelling, Micromotives and Macrobehavior, chapter 1,   Mancur Olson, Jr. "Big Bills Left on the Sidewalk: Why Some Nations are Rich, and Others Poor", Journal of Economic Perspectives, volume 10, number 2, pages 3-24, 1996.   Albert O. Hrschman, Rival Views of Market Society and Other Essays, chapter 1 : "A Dissenter's Confession: The Strategy of Economic

Development Revisited "and chapter 3: "Linkages in Economic Development"

Jean Jacques Laffont, "Corruption and Development", chapter 11 in UP

2 Resources

Captial and Technical Progress

  DE, chapter 3 (growth models) Labor and Employment Issues  Population Growth and Economic Development: DE Ch 9  Christopher Udry," Child Labor", chapter 16 in UP  DE Ch 10, the Lewis Model and the Harris-Todaro model (only sections 10.2 and 10.3 and excluding 10.3.5)  Robert Bates (2000), "Ethnicity and Development in Africa: A Reappraisal", American Economic Review, Papers and Proceedings, 90(2), pages 131-134.

Land and the Rural Economy

  Overview of Rural Markets DE, chapter 11. (markets in agriculture),  Land Markets: DE, chapter 12 (12.1, 12.2 and 12.3).  Labor Markets: DE, (excluding 13.5)  Credit Markets: DE, chapter 14  Mihir Shah, Rangu Rao and P.S. Vijay Shankar, "Rural Credit in 20th Century India: Overview of History and Perspectives", Economic and Political Weekly, April 14, 2007.

The Environment and Sustainable Development

  AVSI, Chapter 7: Sustainable Economic Development  Sterner, T, (2007) "Policy Instruments to Deal With Climate Change", Global Environmental Studies, No 2, pp 129-139, Sophia University, Tokyo.  N.S. Jodha, "Common Property Resources and Rural Poor in Dry Regions of India ", EPW, 27:1169.  An Inconvenient Truth directed by Davis Guggenheim (available on DVD).

3 Globalization and Development

  Joseph Stiglitz (2002) "The Way Ahead ", chapter 9 in Globalization and Its Discontents, Norton.  Stanley Fischer (2003) "Globalization and its Challenges ", American Economic Review, Papers and Proceedings, 93(2), pp 1-30.  Pranab Bardhan, "The Global Economy and the Poor,", chapter 7 in UP

Trade Policy Debate

   DE, chapter 16 (sections 16.2 and 16.3 on comparative advantage)   Sukhamoy Chakravarty, "Trade and Development: Some Basic Issues" chapter 4 in Selected Economic Writings of Sukhamoy Chakravarty, Oxford, 1993.




Minutes of the Meeting

Subject: B.A. (Hons) Economics,

Paper No. 10:   Indian Agriculture and Industry

Date of Meeting:  24th April, 2008

Chairman: Prof. Sunil Kanwar, Department of Economics, University of Delhi

Members present:

1.                                       Pawan Kumar, Ramjas2.                   Dr. Kanta Batra, SPM College3.                   Anita Mathur, SRCC4.                   N. Kalithasammal, S.V. College5.                   Sarita Mishra, Motilal Nehru College6.                   Dr. Anuradha Anand, Janaki Devi Mahavidyalaya7.                   Mansi Sachdeva, Kalindi College8.                   Bibek Rajak, Dyal Singh College9.                   Kartikeya Kohli, R.L.A. College (E)10.               C.K. Srivastava, Shyam Lai College (E) (a)     It was decided that the topics in this course would not be altered for the first 3 years, i.e. in academic 2008-09 and 2009-10 they would remain the same as for the previous academic year. (See below for the full course outline.)(b)     Equal weights would be placed on the 'agriculture' and 'industry' portions.(c)             There was no need to include 'International Trade in Agriculture' in topic 4 of Part I, because this would be covered in topic 5 of Part I.(d)     The reading 'Maitreesh Ghatak, in K. Basu, 2007' (part I), should be dropped.(e)             Some felt that the readings by A. Vaidyanathan and M. Rakshit (in the Agriculture portion) were repetitive in that they are covered in a second-year compulsory course. However, the consensus was that these readings be retained, and taught more rigorously in this course.(f)                 As in the previous year, the 'additional readings' are not optional, but may require the instructor's intervention to make them accessible to the students.(g)     Three concerns were raised - (i) The readings do not provide data up till the current period; (ii) appropriate readings were not available for some of the sub-topics, e.g. for 'technology policy' (topic 4, part I) and 'infrastructure'   (topic  4,  part  II);  and   (iii)  alternative  readings  were

necessary to replace Amit Bhaduri's reading (in the Agriculture portion) and Rakesh Mohan's reading (in the Industry portion).

Note: The chairperson emailed pdf copies of 1 0 new readings to the members, to address the issues raised in point (f) above. However, due to virtual non-response no follow-up action was possible. In the event, the course outline for the next academic year is as below.

COURSE OUTLINE Indian Agriculture and Industry


1.    Agricultural Performance since Independence

Output and productivity growth; regional and crop perspectives, growth and   instability

2.   The Policy Environment

Agricultural price policy and subsidies; the public distribution system

3.      Resource Use Efficiency Fertilizer; Water; Other inputs4.      Current Issues in Indian Agriculture (selected topics) Sustainable agriculture growth - concepts and constraints; Prospects for dry-land agriculture; International trade in agriculture; technology policy; market infrastructure; crop insurance5.      Agriculture Exports

Quantitative Restrictions (QRs) and Non Tariff Barriers, WTO and subsidies in Developed Countries, Management of shortages and surpluses


1.              Maitreesh Ghatak (2007), Land Reforms, in Kaushik Basu (ed) The Oxford Companion to Economics in India, pp. 328-332.2.      T.C. A., Anant (2006), Institutional Reforms for Agriculture Growth in N. A. Majumdar and Uma Kapila (ed)., Indian Agriculture in the New Millennium, Changing Perceptions and Development Policy, vol. 2, Academic Foundation3.      Apoorva Oza (2007), Irrigation Achievements and Challenges, Part 1 of Chapter 7: Irrigation and Water Resources in India Infrastructure Report 2007: Rural Infrastructure, 3i (http://www.3inetwork.org/reports/reportsl .shtml)4.      A. Vaidyanathan (2007), Irrigation in Kaushik Basu (ed) The Oxford Companion to Economics in India, pp. 316-320.5.      A. Vaidyanathan.(2007), Water in Kaushik Basu (ed) The Oxford Companion to Economics in India, pp. 553-557.6.      Mihir Rakshit (2002), Food Policy in India: Some Longer Term Issues, Money and Finance, ICRA Bulletin, Apr-Sept

7.      V S Vyas and Surjit Singh (2006), Crop Insurance in India: Scope for Improvement, EPW, Nov. 48.      Ramesh Chand (2006), Agriculture Markets in India: Implications for Competition, chapter 1 1 in Pradeep S. Mehta (ed.). A Functional Competition Policy for India, Academic Foundation.9.      V.M. Rao and P.D. Jeromi (2000), Modernising Indian Agriculture: Priority Tasks and Critical Policy, Study no.21, DRG, RBI (excluding sections 1.3-1.6).

Additional readings:

1 0. Amit Bhaduri (2006), Productivity and Production Relations: The Case of Indian Agriculture, in Amit Bhaduri, Employment and Development, Oxford University Press.


1.   Overview of Industrial Scene in India

Trends, in growth and productivity; Competitiveness and changes in policy regimes

2.       Issues Relating to the Composition of the Indian Industry Small vs. large industry; Public vs. private sector, with emphasis on: performance of public sector, privatization; Dynamics of the Industrial Sector: growth and sickness3.       Trends in Industrial Regulation and Control

Pricing in public and private sectors, employment growth in the industrial sector

4.       Policy Issues and Future Prospects Infrastructure; Technology5.       Issues of Management Limiting market abuses; FDI / FI Is6.       Financing of Industry

Ownership and Efficiency, Equity Markets


1.         Aditya Bhattacharjea, Anti Trust Law, in Kaushik Basu (ed) The Oxford Companion to Economics in India, pp. 18-19, OUP.2.    S Charkravarthy (2006), Evolution of Competition Policy and Law in India, chapter 2 in Pradeep S. Mehta (ed.). A Functional Competition Policy For India, Academic Foundation.3.    Rakesh Mohan (2003), SSI Policy in India: A Critical Evaluation in A.O. Krueger (ed.), Economic Policy Reforms and the Indian Economy, Univ. of Chicago Press.4.    K.V. Ramaswamy (2006), State of Competition in the Indian Manufacturing Industry, Chapter 12 in Pradeep S. Mehta (ed.). A Functional Competition Policy for India, Academic Foundation.5.    PulinTi. Nayak, Privatization, in Kaushik Basu (ed) The Oxford Companion to Economics in India, pp. 426-430.

6.    R. Nagaraj (2003), Industrial Policy and Performance since 1980, EPW, Aug.30-Sep.77.    R. Nagaraj (2003), FDI in India in the 1990s, EPW, Apr. 26.

8.  Manish Agarwai (2006), Mergers and Acquisitions in India: Implications
for -Competition,
chapter 4 in Pradeep S. Mehta (ed). A Functional
Competition Policy for India, Academic Foundation.

Additional readings: 1 0. Bishwanath Goldar (2004), Indian Manufacturing: Productivity Trends

in Pre- and Post-Reform Periods, Nov. 20, EPW. 1 1. Manoj Pant and Manoranjan Pattanayak (2005), Does Openness

Promote Competition? A Case Study of Indian Manufacturing, EPW,

Sept. 24. 12. Aditya Bhattacharjea (2006), Labour Market Regulation and Industrial

Performance in India, A Critical Review of the Empirical Evidence, CDE,

Working Paper No.141

Department of Economics Delhi School of Economics

Subject: B.A.(Hons.) Economics


Date of the Meeting: 24th April, 2008

Chairperson." Prof. B.L. Pandit

The following teachers were present:

1.Hema   KapurHansraj.
2.Anjani KochakLSR
3.Dr Mahendra PaulDayal Singh
4.Dr.Lokendra KumawatRamjas
5.Mamta      DuttShivaji
6.Dr Ashis Taru DebCVS
7.Dr Ashok   sarinRLA(E)
8.DrAnand MittalHansraj
9.Priti MendirattaIP
10.Boroth Roy ChoudhurySVC
11.Dr Anand MittalHansraj
12.Meera MalhanDCAC
13.Nalini NarulaJDM
14.Malini SharmaDR
15.Jayashree SahooLSR

A sub committee of the following teachers was formed to revise the topic-wise reading list.

1.    Dr Ashok Kumar2.                                      Anjani Kochak3.                                      Manisha Vats4.                                      Hema Kapur.


5.          Anurag Malhotra

St Stephens

6.                                      Dr Ashis Taru Deb                    CVS7.                                      Dr.Lokendra Kumawat.            Ramjas

Three meetings of the sub committee were held on first, fifth and ninth of May, 2008 and the following changes in the reading list were agreed upon.


TOPIC I       Money in the Financial System

Money and its Functions - Functions of Money, Money as a Special Asset, How money is established.

Lewis and Mizen —   Monetary    Economics ,ch.l.2,1.3

Types of Money , The Conceptual Approach             Baye    and Jansen ch.l

The Financial System - Financial Markets, Financial Instruments and Money The Financial System, Money Markets, Capital Markets, Financial Deepening

Fabbozzi et al, ch 1.
Mishkin and   Eakins, pp. 23-28.
          Money Supply Analysis

High powered money

N. Jadhav,   Ch.2 section 2.1(pp. 18-25), section 2.3(pp. no 37-46).

Annexure 2.1

The Theory of Money Supply, Money Multiplier       Baye and Jansen Ch. 14

Monetary Aggregates, Financial Innovations, Linkage between Financial Innovations and concepts of Monetary Aggregates.

RBI Report on Money Supply (1998 ) Report of Third Working Group Or, RBI Bulletin Supplement June 1998

Central Bank Functions, Central Bank's Balance Sheet

Jadhav Sec 11.2,

Y.V. Reddy Ch. 7

TOPIC III            Analysis of Interest Rates

Interest Rates in India, Policy Rates, T-Bill Rates, Repo/Reverse Repo Rates, Call Money Rates, Theories of the Term Structure of Interest Rates Determination of interest rates, The Yield Curve

Jadhav pages 72-76.

Baye and Jansen ch. 10

TOPIC IV               Financial Markets

The Banking System, Adverse Selection and Moral Hazard

Baye and Jansen Ch. 5 (pp. 153-161), Ch 6(pp.l85-195),ch 7


Mishkin and Eakins, ch 15. The Bond Market, Debt Instruments, Debt Valuation

Baye and Jansen Ch. 8( pp. 239-51),ch 9.

Equity Markets, Organization and Structure, The Foreign Exchange Market, Recent   Developments

N Jadhav, ch. 12 and 13.

Derivatives (No Swaps)

Mishkin and Eakins, ch 25,(excluding pp. 640, 641, and 652-654)

TOPIC V             Monetary Policy

Instruments of Monetary Policy, Goals, Targets and Indicators of Monetary Policy

N. Jadhav, chapter 6 (6.1, 6.2)(pp. 116-128)

Monetary Policy Lags                                       Baye and Jansen Ch. 19,

TOPIC VI       Monetary Management in an Open Economy

International Capital Markets,Portfolio Diversification,The International Monetary System

Monetary Policy in India's Open Economy.

RBI Bulletin, July 2007." Capital account, Liberalization and Conduct of Monetary Policy: The Indian Experience." Rakesh Mohan.(pp. 1129-1153)

Jadhav, Ch. 5, section 5.4(pp. 110-111), Ch 9. section 9.1 and 9.2

Maurice D. Levi, International Finance, Ch. 18(excluding pp. 447-450)

Monetary and Credit Policy Operations- Annual Report of the RBI, 2007

ch. 3

Suggested Readings:

Mishkin,F.S. and Eakins, S.G. (5th Edn) Financial Markets .+ Institutions Pearson Education

Fabbozi, Modigliani, Jones and Ferri.( 3   edn)   Foundations of Financial Markets and Institutions. Pearson Education.

Narendra Jadhav (2006) Monetary Policy, Financial Stability and Central Banking. Macmillan

Baye and Jansen (1996) Money, Banking and Financial Markets, AITBS.

Y.V. Reddy,(2000) Monetary and Financial Sector Reforms in India) UBSPD.

Maurice D. Levi International Finance, 3rd edition. Mcgraw Hill.

M. K. Lewis and P.D. Mizen (2000) Monetary Economics 1st Edition Oxford.




Minutes of the Meeting

Subject: B.A. (Hons.) Economics Paper NO. 12, Public Economics Date of Meeting: 25/04/2008 Convenor:Prof. Pulin B. Nayak

The following members were attended the meetin:

1.    Surajit Deb, RLA (Eve.)2.                                 Makhou Gangmei, ARSD College (Adhoc)3.                                 Marjorie Fernandes, JDMC4.                                 Archi Bhatia, Ramjas College5.                                 Rashmi Mittal, DSC(M)6.                                 Rashmi Chaudhary, Kalindi College (Adhoc)7.                                 Pushpa Banal, Maitreyi8.                                 Daisy Sales, JMC9.                                 Uma, LBC, (Adhoc)10.                          Supriti Mishra, Shyam Lai College (Adhoc)11.                          Ujjayini Roy, Hindu College,(Adhoc)12.                          Sarita Mishra, Moti Lai Nehru College13.                          Manjit Kaur, SPM College14.                          Iti Tripathi, Shivaji College15.                          Meena Gupta, Daulat Ram16.                          Manjushree Mukherjee, LSR College (Re.Emp.)17.                          Alka Budhiraja, Miranda House

Revised Reading List Part I: THEORY #

1.1         Fiscal Functions: An Overview

R.A. Musgrave and P.B. Musgrave, Public Finance in Theory & Practice, 5th edition, Chapter 1.

1.2        Tools of Normative Analysis: Pareto Efficiency, Equity and the Social
Welfare Function; Market Failure

1.  Harvey Rosen (2005), Public Finance, Chapter 3 (pp 33 to 46): For teachers.2.             Joseph E. Stiglitz, Economics of the Public Sector, 3'  Edition, Chapter

Public Goods:  Definition,  Models  of Efficient Allocation,  Pure  and Impure Public Goods, Free Riding

1.              John Cullis and Philip Jones (1998),    Public Finance and Public Choice, Chapter 3 (Sections: 3.1 to 3.5.2).2.              Joseph E. Stiglitz, Economics of the Public Sector, 3"  Edition, Chapter 6 (excluding Appendix).

Externalities: The Problem and its Solutions, Taxes versus Regulation,

Property Rights, the Coase Theorem

Harvey Rosen (2005), Public Finance, Chapter 5.

Taxation:   Its  Economic  Effects;  Dead  Weight  Loss   and  Distortion, Efficiency and Equity Considerations, Tax Incidence, Optimal Taxation.

1.              R. Musgrave, Theory of Public Finance (1957), chapter 4, section C (pp. 73-86).2.      R.A. Musgrave and P.B. Musgrave, Public Finance in Theory & Practice 5th edition, Chapter 13.3.              Joseph E. Stiglitz, Economics of the Public Sector, 31  Edition, Chapter 18 (pp 482 to 510), 19, 20 (pp 550 to 562).

Fiscal Federalism, the Economic Basis of Decentralization Harvey Rosen (2005), Public Finance, Chapter 20.


India's Fiscal System

Parthasarathi Shome (2002), India's Fiscal Matters, Chapter 1

Tax System: Structure and Reform

1.   M. Govinda Rao (2005), "Tax System Reform in India: Achievements and    Challenges Ahead, Journal of Asian Economics, Vol. 16, Issue

6, pp 993 to 1011. 2    Mahesh Purohit (2007), Value Added Tax: Experiences of India and

Other Countries, Chapters 1 and 4 pp (56 to 61 and 66 to 72).

3.               Amareh Bagchi (2006), "Towards GST: Choices and Trade Offs", Economic and Political Weekly, April 8, pp 1314 to 1317.4.       Amaresh Bagchi, "State VATs in Operation: Promises and Problems," ICRA Bulletin, Money and Finance (Jan—June 2005), pp 29-44.5.               M. Govinda Rao, "Taxing Services: Issues and Strategy," Economic and Political Weekly, October 20, 2001, pp 3999-4006.

Public Expenditure: Trends and Issues; Subsidies in India

1. Ranjit Kumar Pattnaik, Dhritidyuti Bose, Indranil Bhattacharyya and Jai Chander: Public Expenditure and Emerging Fiscal Policy Scenario in India, Conference Proceedings of Banca d Italia workshop on Public Expenditure, available at www. Bancaditalia.it.

2.       D.K.Srivastava, C.Bhujanga Rao, P. Chakraborty and
T.S.Rangamannar, Budgetary Subsidies in India: Subsidising Social and
Economic Services. National Institute of Public Finance and Policy,
March 2003. Chapters 1, 2, and 5. Available at Planning Commission

3.  GOI [2004]: Central Government Subsidies in India, Report prepared
with NIPFP assistance, Ministry of Finance, December 2004, Government
of India.

II. 1.3   Budget, Deficits and Public Debt

1.               M.M. Sury (1990), Government Budgeting in India, Chapter 4.2.       Report of the Twelfth Finance Commission. Chapter 3, pp 29 to 41.3.       C. Rangarajan and D.K. Srivastava, "Fiscal Deficit and Government Debt: Implications for Growth and Stabilization" Economic and Political Weekly, July2, 2005, pp 2919-2933 (excluding Sections 4, 5 and 6).

II.2      Fiscal Federalism in India

1.   M. Govinda Rao (2005), "Changing Contours of Federal Fiscal
Arrangements in India", Amaresh Bagchi (ed),
"Readings in Public

2.   Report of the Twelfth Finance Commission, Chapters 2 and 16.3.   K. Hajra et al (2008): Issues before the Thirteenth Finance Commission: Correction of Horizontal and Vertical Imbalance, Economic and Political Weekly, March 22-April 4, 2008, pp 89-95.

#  All examples and case studies pertaining to the U.S economy to be de-

*  For latest development trends, refer to Govt, of India, Ministry of Finance,
Economic Survey (latest), Chapterl and 2. Available at: http://indiabudget.nic.in.

Note on Examination Pattern:

Part I: Weightage 60%. Two questions out of four of 12 marks each. Part II: Weightage 40%. Two questions out of four of 7 marks each.

Department of Economics Delhi School of Economics

Minutes of meeting

Subject: B.A. (Hons.) Economics


Date of Meeting: 25 April 2008.

Convenor: Professor Ashwini Deshpande

The following members were present:

1.    Aruna Saluja, Maitreyi College,2.                                      Ritu Khanna, Daulat Ram3.                                      Suman Jain, Lakshmi Bai College4.                                      Mansi Sachdeva, Kalindi5.                                      Sheela Bajaj, Delhi College of Arts and Commerce6.                                      Saumyajit Bhattacharya, Kirori Mai College7.                                      Harpreet Kaur Narang, SGTB Khalsa College 1.  There was a view expressed that given the complexity of topics and the possible popularity of this optional course, this should be considered as a 100 marks course in future course revisions.2.              The guidelines for the final exam question paper were discussed. Since the final exam will be for 38 marks, it was felt that the students should be asked to answer three questions of 12, 13 and 13 marks each. The paper should be divided into two parts. Part A should have 3 questions for 12 marks each, out of which the students are expected to answer 1. These questions should interlink topics (not just readings within a topic, but also across). Part B should have 6 questions of 13 marks each, out of which the students should be asked to answer 2. The questions in part B should interlink readings within a topic.3.              Given that mid-term exams are held when roughly about the half the course is completed, it would not be possible for the mid-term exam to mirror the exact pattern for the final exam. Thus, teachers should use their individual discretion and judgement to set mid-terms and there need not be a set pattern for mid-terms common to all colleges.

4.   Minor changes were made in the reading list. The final reading list is attached.

I.          Perspectives on Comparative Economic Development: (a)Features of

and trends in Modern Economic Growth -- a brief discussion of Kuznets' findings (b) Gerschenkron's hypothesis of Economic Development in Historical Perspective


1.               Simon Kuznets (1966), Modern Economic Growth: Rate, Structure & Spread, Yale University Press, Chs 1 and 10.2.       A. Gerschenkron (1969), Economic Backwardness in Historical Perspective, Harvard University Press, Ch.l

(Background readings for teachers:

Angus Maddison (1991), Dynamic Forces in Capitalist Development, A Long-Run Comparative View, Oxford University Press, Chs. 3 and 4, to be considered for next year.

P.K.O'Brien (1986), 'Do we have a Typology for the Study of European Industrialization in the XlXth Century?', Journal of European Economic History, XV, 3, pp.291-333.

II.        An overview of economic development of the countries selected for case studies — Britain, Germany, U.S.A., Japan and USSR.


1.        E.J. Hobsbawm (1968), Industry and Empire: An Economic History of Britain since 1750. Weidenfeld & Nicholson, Chs.l2.   Floud and McCloskey (ed) (1981), Economic History of Britain Since 1700, Cambridge University Press, (2nd ed) Ch. 1.


Paul R Gregory and Robert C. Stuart (1986), Soviet Economic Structure and Performance, Harper & Row (3rd ed) Chs. 1 and 5

(Reading for teachers: Dobb. M (1995) Soviet Economic Development Since 1917. Universal Book Stall. New Delhi. Chs. 1 and 3)


Gustav Stolper, Karl Hauser, Knut Borchardt, (1967), (translated by Toni Stolper) The German Economy, 1870 to the Present, Harcourt Brace & World Inc. Chs. 1

and 2


Richard A. Easterlin, Davis and Parker (1972) American Economic Growth: An economist's History of the United States. Harper & Row, Ch.2.


T. Nakamura (1983) Economic Growth in Pre-War Japan, Tr. by Robert A Feldman, Yale University Press, Ch. 1 (Overview of Growth)

III.  Changes in the structure of agriculture and economic development —
Britain, Japan and U.S.S.R.


Peter Mathias (1983), The First Industrial Nation, An Economic History of Britain, 1700-1914. 2nd edn, Methuen Chs.3, 12


Y Hayami (1975), A Century of Agricultural Growth in Pre-War Japan: Its

Relevance to Asian Development. University of Minnesota Press, Chs. 1 and 3.


Dobb. M (1995) Soviet Economic Development Since 1917 Universal Book Stall. New Delhi. Ch. 9, 10, 11, 12. (Chs 10, 11 and 12 will be used both for agriculture and industry).

IV.  Role and pattern of industrialisation in Britain, Japan and U.S.S.R.


Peter Mathias (1983), The First Industrial Nation, An Economic History of Britain, 1700-1914. 2nd edn, Methuen Chs.5, 15

E.J. Hobsbawm (1968), Industry and Empire: An Economic History of Britain since 1750. Weidenfeld & Nicholson, Chs. 2, 3 & 6.


T. Nakamura (1983) Economic Growth in Pre-War Japan, Tr. by Robert A Feldman, Yale University Press, Chs. 2, 3, 5 and 6.


Dobb. M (1995) Soviet Economic Development Since 1917 Universal Book Stall. New Delhi. Ch.8, 10, 11 and 12 (will be used both for agriculture and industry) Paul R Gregory and Robert C. Stuart (1986), Soviet Economic Structure and Performance, Harper & Row (3rd ed) Ch. 4

V. Labour markets and labour processes - Britain and Japan


E.J. Hobsbawm (1984), World of Labour: Further studies in the history of labour.

London Weidenfeld & Nicholson, Ch. 11

(Background reading for teachers: Ch 16 of Hobsbawm's "Labouring Men")


Okochi, Karsh and Levine (1965), Workers and Employees in Japan, The Japanese Employment relations system, University of Tokyo, Ch.13

IV. Financial institutions and economic development in Germany, U.S.A and Japan


Timothy W. Guinnane (2002) ' Delegated Monitors, Large and Small: Germany's banking System, 1800 -1914' Journal of Economic Literature, Vol. XL (March 2002), pp.73-124.


Richard A. Easterlin, Davis and Parker (1972) American Economic Growth: An

economist's History of the United States. Harper & Row Chs. 9,10


T. Nakamura (1983) Economic Growth in Pre-War Japan, Tr. by Robert A Feldman, Yale University Press, Ch. 7.

Masahiko Aoki and Hugh Patrick (eds) The Japanese Main Bank System, pp. 35-49. (Background reading for teachers: ibid, pp. 3-35)

VII. Foreign trade and economic development -- Britain, Japan and USA.

E.J. Hobsbawm (1968), Industry and Empire: An Economic History of Britain since 1750. Weidenfeld & Nicholson, Ch.7

Peter Mathias (1983), The First Industrial Nation, An Economic History of Britain, 1700-1914. 2nd edn, Methuen. Chs.4 (pp 76-96), 11.


W.W. Lockwood (1966), Economic Development of Japan, Expanded edition, Princeton University Press, Ch.6, 7.


Richard A. Easterlin, Davis and Parker (1972) American Economic Growth: An economist's History of the United States. Harper & Row Ch. 14

VIII.    Role   of   the   State   in   economic   development   (regulatory   and
developmental role) — Japan, USA, Britain and USSR.



Richard A. Easterlin, Davis and Parker (1972) American Economic Growth: An

economist's History of the United States. Harper & Row Ch. 17

Hughes and Cain (1994) American Economic History, 4th Ed., HarperCollins

College Publishers, Ch. 7. (Chapters 18, 21 & 27 from this book should be

background readings for teachers)


Chalmers Johnson (1982), MITI and the Japanese Miracle:   The Growth of Industrial Policy 1925-1975, Stanford University Press, Chs.1,9. W.W. Lockwood (1966), Economic Development of Japan, Expanded edition, Princeton University Press, Ch.10.


Paul R Gregory and Robert C. Stuart (1986), Soviet Economic Structure and Performance, Harper & Row (3rd ed) Ch. 7

Dobb. M (1995) Soviet Economic Development Since 1917, Universal Book Stall. New Delhi. Ch 14


E.J. Hobsbawm (1968), Industry and Empire: An Economic History of Britain since 1750. Weidenfeld & Nicholson, Chs.12



Subject: B.A. (Hons) Economics,

Paper No. 14 - Introductory Econometrics

Date of Meeting: 28th April, 2008

Chairperson: Prof. Pami Dua, Department of Economics,

The following members were present:


1.    Roopali Goyanka, I.P.College2.                                Gurpinder Kaur, S.B.S.college3.                                Pooja Sharma, Daulat Ram College4.                                Surabhi Badhwar, Shyam Lai (Eve.)5.                                Hena Oak, Miranda House6.                                Shilpa Chaudhary, JDMC7.                                Priyanka Bhatia, SRCC8.                                Shailu Singh, Hansraj College9.                                Dorothy Roy Choudhary, S.V.College(Adhoc)10.                        Gita Golani, S.P.M.College11.                        Vandana Tulsyan, Dyal Singh College12.                        A.S.Lamba, Deshbandhu College (M)13.                        Deepika Goel, R.L.A. (Eve.)14.                        Renu Bansal, S.R.C.C.15.                        Smruti Ranjan Behra, SLC(Adhoc)16.                        Indu Choudhary, Kalindi College17.                        Azad Singh, Moti Lai Nehru College

A meeting of teachers teaching this course in various colleges was held with a view to achieve the following aims:

-   To examine how the teachers are proceeding with the teaching of this new course-   To discuss how students are responding to,the course -          To specifically identify sections of the reading list, which are proving to be strenuous for the students-          To examine the problems faced by teachers and students in the first year of proceeding of this course.

After extensive deliberations, following decisions were taken:

1. The following book can be used as a reference text by teachers only,
students are not required to refer to this:

D. N. Gujarati, Basic Econometrics (4th Edition), Tata McGraw-Hill
Edition, 2004.                                                                               S

2. Marks allocation in the final exam question paper should be as foliows:

Maximum Marks: 38                                                        I        *

¦ j

Topics 1, 2: 10 marks Topics 3, 4, 5, 6: 28 marks

3. It was felt that coverage of 'Review of Statistics' in the core text is not
sufficient; most teachers are supplementing the core text with some
statistics textbook. Considering that students did a course in "Statistical
Methods for Economics" in their first year, it was agreed that the core
text of this course (Webster) should be used as supplement. This would

impart uniformity across colleges regarding the extent to which statistics


needs to be taught to students.

4.  A sub-committee was formed to see if some new additions

could be made to the course to make the reading materia] more

comprehensive. The following members were part of the


Ms. Deepika Goel, Ram Lai Anand (Eve.) College

Dr. Roopali Goyanka, IP College

Ms. Surbhi Badhwar, Shyam Lai (Eve.) College

Ms. Priyanka Bhatia, SRCC College

5. The sub-committee submitted the Topic-wise Reading list as follows:

i) Core Text: D. N. Gujarati, Essentials of Econometrics, 3rd Edition

ii) *Allen L. Webster, Applied Statistics for Business and Economics,

3rd Edition, McGraw-Hill, few sections for 'Review of Statistics .

iii)Christopher Dougherty, Introduction to Econometrics, 3rd edition, Indian edition, OUP. (The book is easily available at a nominal price.)

1.Nature and scope of EconometricsGujarati: Ch 1 
2.Review of Statisticsi)         Descriptive statistics:(a)                            the univariate case,(b)                the bivariate case
ii)        Random Variables and
Probability distributions iii)        Estimation ofparameters, Testing of hypotheses
I Gujarati: Ch 2,Ch3,Ch 4, Ch 5Dougherty:Ch on Review (excluding Asymptotic properties & Simulation i.e. pp 29-35, & Appendix R.2)1.  Few sections from
Vvebster* to
supplement the
core text:
?          5. 2, 5. 8?          6.1-6.4?          7.1-7.3,7.7?          8.1-8.6?          9. 2, 9. 62.  Chi square and t
distributions: Proofs
of mean and
variance not to be
3.Classical Linear Regression Model: Two Variable Case i)      Descriptive Aspects ii)     Properties of Least Squares estimates; tests of hypotheses and confidence intervals; Gauss - Markov Theorem iii)     ForecastingV,Gujarati: Ch 6,Ch7 Dougherty:Ch1,Ch2 (excluding 2.4 & 2.6)1.  Discussion on
Partial Correlation
Coefficients not to
be covered
2.  Coverage on
Forecasting in core
text is scarce but
for this year (as last
year), not
additional content   .
or text.

4.Classical Multiple Linear Regression Model. i)           Descriptive Aspects: Least Squares   Estimation, R2 and Adjusted R2, Partial Correlations ii)          The Classical Model: Gauss -Markov Theorem; Standard Error of Estimate Standard errors of regression coefficients iii)         Tests of Hypotheses: SingleParameters; Sets of Parameters iv) Forecasting; v) Functional Forms of Regression Models; vi) Dummy VariablesGujarati: Ch 8Ch9(excluding 9.7) Ch 10(excluding 10,7) Dougherty: Gh3 (excluding 3.4)1.  Proof of Gauss-Markov
Theorem for multiple
regressions not to be
2.  Treatment on Dummy
variables in core text is
*not rigorous enough but for this year (as last year), not introducing additional content or text.
5.Violations of Classical Assumptions and Remediesi)     Multicollinearityii)    Heteroscedasticityiii)    Auto-correlationGujarati: Ch 12Ch 13 (Excluding13.5) Ch 14(ExcludingAppendix)Dougherty:Ch 3 (only sec 3.4)Ch 5 (only till pp184), Ch12(onlypp354-359)For this year, we are including remedies for the violations.
6.Specification Analysisi)  Omission of a relevant variable ii)   Inclusion of irrelevant variable iii) Tests of Specification ErrorsGujarati: Ch 11 (Exclude 11.5, 11.6, MWDTest, Ramsay Test) Dougherty: Ch 6 (only till pp 211)Same as last year

Department of Economics Delhi School of Economics


Subject: B. A.(Hons.) Economics Course No. 15: Topics in Microeconomics Meeting held on 29/04/2008 Chairperson: Uday Bhanu Sinha The following members were present:

1.  Soumya Datta , Shyamlal College (Evening)2.              Animesh Naskar, Hansraj College3.              Avinash K. Jha, SRCC4.              Rajiv Jha, SRCC5.              Sanjeev Grewal, St. Stephen's College.6.              Niti Bhutani, Hindu College7.              Shashi Bala Garg, LSR8.              Ravinder Jha, Miranda House9.              Niti Khandelwal, Kirorimal College

The following decisions were taken:

1.    It was decided to delete P. Dutta and L.M.B. Cabral from the previous year's
reading list. The following textbook now stands as the main reference for this

Martin J. Osborne (2004), An Introduction to Game Theory, OUP India, New Delhi.

2.   The final reading list as agreed upon is as follows:

Normal form game in pure strategies:

Osborne: Chapter 1, 2 & 3

Normal form game in mixed strategies

Osborne: Chapter 4

Extensive games with perfect information

Osborne: Chapter 5, 6 & 7

Games with imperfect information

Osborne: Chapter 9 & 10

Repeated games

Osborne: Chapter 14 & 15

It might be noted that the topics Adverse Selection and Moral Hazard are not covered in Osborne. One might look up E. Rasmusen: Chapt. 7, 8 & 9 for these topics.

It was also decided that the reference for the section on Industrial Organization:

Oz Shy: Industrial Organization: Theory and Applications, MIT Press. Chapt. 6,7.2,7.3,8.3,8.4, 12.1 & 12.2

The question paper for the annual examination of this course should have an approximate weightage of various topics as per the following scheme:

Normal form games                                                                             About 12-15 marks

Extensive form games, games with incomplete                                      About 15-18 marks

information and repeated games

Applications in Industrial Organization                                                    About 8-10 marks

Department of Economics Delhi School of Economics

Minutes of the Meeting

Subject: B.A. (Hons.) Economics


Date of Meeting: 30 April 2008

Chairperson: Prof. Aditya Bhattacharjea (DSE)

The following members were attended:

1.  E. Trivedi, JMC2.            Anshu Chopra, Shivaji College3.            Ujjayini Roy, Hindu (Adhoc)4.            Srividya Subramaniam, SGTB Khalsa5.            N. Lalitha, SPM College6.            Baishakhi Mondal, LP College

7.  Swapna Nair, St. Stephens (Adhoc)

8.            Neelam Singh, LSR9.            Surabhi Badhwar, Shyam Lai (Eve.) lO.C.Chander Mohan Negi, PGDAV(M) ILLS. Khokhar, SRCC

12.Krishna Kumar S., S.v. College 13.RichaSuri, ARSD 14.Mohini Gulrajani, JDMC 15. Rashmi Sharma, DCAC 16.Chandra Goswami, Dyal Singh

After an extensive discussion, the following decisions were taken:

        As the 7th edition is not likely to be available before the start of the new academic year, Krugman and Obstfeld (KO), 6th edition, would remain the basic text for the coming year. We may skip the 7th edition altogether and the publishers would be requested to bring out the Indian edition of the 8th edition before the beginning of the academic year 2009-10.        Appendix to ch.19 in KO would be included for students from the coming year. Teachers should teach the Mathematical Postscript to ch.4, but it would be considered for inclusion for exafn purposes only from the following year.

The mainly descriptive/historical sections in Part II corresponding to page numbers 543-49, 571-81, 708-19, and 724-28 would be excluded for examination questions.

As the examination pattern decided last year had created several difficulties, and several topics were being deleted for the coming year, it was agreed that a new scheme would be introduced for 2008-09. The new pattern is indicated in the detailed list below. As the change in the pattern could cause some confusion, teachers should explain it very clearly to their students and if possible hold mock exams on this basis.

Ms Surbhi Badhwar remains the coordinator of the e-group for discussions during the year among teachers teaching this course. Those who would like to join should send her an email at surbhibadhwar@yahoo.co.in

Revised reading list and examination pattern


         Each Part will have three questions, and students will have to attempt any two questions from each Part.         Questions can have multiple parts, cutting across more than one topic.         Questions should not be taken directly from those in the textbook.

Part I (20 marks)

The subject matter of international economics (KO ch.l) - not for exam

Three questions of 10 marks each to be set, while ensuring roughly one-third weightage to each of the following three sections. Two of these questions would have numerical components of 3-5 marks. In choosing any two questions, students would therefore be forced to attempt at least one numerical, and may attempt two if they wish.

(i)    Comparative    advantage:     Ricardian,    specific-factors,    and

Heckscher-Ohlin models. (KO, chs.2-4)

(ii) Terms of trade, immiserising growth, and the transfer problem.

New trade theories: economics of scale and imperfect competition

International   factor   movements:    labour   migration   and   foreign

investment. (KO, 5-7)

(iii) Trade policy and welfare, with special reference to developing


The  international  trading  system:   WTO   and  preferential  trading

agreements. (KO, 8-11)

Part II (18 marks)

Review of national income and balance of payments accounting (KO ch.12) - not for exam.

Note that the remaining material is now being divided into two sections. Three questions of 9 marks each will be set. Each question will have two parts, one carrying 5-7 marks from section (i) and the other of 2-4 marks from section (ii). Therefore, students will have to answer questions from both sections (i) and (ii), regardless of their choice of questions.

(i) Material covered in KO, chs. 13-17.

(ii) Material covered in KO, chs.   18,   19, 21,  and 22, excluding

sections corresponding to page numbers given below.

Questions would not be asked from the following sections of the book:

         Appendices to chapters 9, 16, and 17.         All mathematical postscripts (postscript to ch.4 to be considered for inclusion in the following year.)         All case studies in shaded boxes (however, students could be given projects for internal assessment based on this material, and also extra credit in the final examination for integrating this material into their answers.)         Sections corresponding to pages 543-49, 571-81, 708-19, and 724-28 from Part II.
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