Course programme
OPEC101 Paper I - Micro Economic Analysis Unit I Demand Analysis - I Concept of cardinal and ordinal utility, Indifference curve, Income, Substitution and price effects. Slutasky Theorem, Revision of Demand theory by Hicks, Revealed preference theory. Recent developments in demand theory. Linear expenditure system. Consumer’s choice involving risk. Elasticities of demand price, Income, Substitutation and cross Indirect utility function. The constant elasticity of demand function, The Dynamic Demand function, Emperical demand function. Linear demand function. Unit II Theory of Production Concept of production function, short period and long period production function. Law of variable proporations. Isoquants – Least cost combination of inputs. Multi-product firm. Elasticity of substitution; Technical progress and production function. Marginal rate of technical substitution. Cobb Douglas production function CES production function. Unit III Theory of Costs The Traditional theory of cost. Modern theory of cost. Derivation of cost functions from production function. Derivation of long run average and marginal cost curves. The ‘L’ shaped cost curve. Empirical evidence on cost. Unit V Marginal Analysis Baumol’s sales maximisation model, Williamson’s model of managerial discretion, Morries model of managerial enterprise. Full Cost Pricing- Hall and Hitch and Andrews, Bain’s limit pricing theory, sylos – Labini’s model. Distribution- Modern theory of rent; modem theory of wages, liquidity preference theory, IS – LM curvs, Innovation theory of profit, product exhausation theorem. Recardian, Marxian, kaleki and kaldor’s macro theories of distribution. Unit VI Market Structure Oligopoly market - Cournoet, Bertrand, Edgeworth and Chembrlin’s models, Price Leadership – Price leadership by a Barrometric firm. Price leadership by dominant firm. Price leader ship by low cost firm. Price determination under centralized cartel, price determination under market sharing cartel, kinked demand curve. Price and outputdetermination under monopsony and bilateral monopoly. OPEC102 Paper II - Macro Economic Analysis Unit I Supply of Money- Concept of money supply, A mechanistic model of bank deposit determination, A demand – determined money supply process. RBI approach to money supply, High powerd money and money multiplier, Budget deficit and money supply, money supply and open economy, control of money supply. Demand for MoneyClassical approach to demand for money – Quantity theory approach – Fisher’s equation, Cambridge quantity theory, keyne’s liquidity preference approach, aggregate demand for money, derivation of LM curve. Unit II Keynsian and Post - Keynsian demad for money Keynsian views on Interest. IS and LM model extension of IS LM model with government sector; relative effectiveness of monetary and fiscal policy; post keynsian approaches to demand for money, Patinkin and the Rear Balance Effect, Approaches of Baumol, Tobin Frideman and the modern quantity theory. Unit III Macro Economics in an open economy Mundell – Fleming model, Philips curve analysis, trade of between inflation and unemployment. National income accounting- Circular flow of income in two, three and four sector economics Different forms of national income accounting, issues in national income accounting. Unit IV Consumption function- Keyne’s psychological law of consumption, implications of law, short run and long run consumption function. Income consumption relationship – Absolute income, Relative income, lifecycle and permanent income hypotheses. Investment function - Marginal efficiency of investment and level of investment. Marginal efficiency of capital and investment, short run and long run theories of investment and accelerator. Investment multiplier – impact of inflation. Unit V Theories of inflation and Business cycles - Classical, Keynsian, monetarist, structuralist’s theories of inflaction. Schumpter, Kaldor, Samuelson, Hicks and Goodwin’s model, control of business cycles. OPEO103A Paper III - Agricultural Economics Unit I Agriculture and economic development and Agricultural Growth in India - Role of agriculture in economic development, Difference between agriculture and industry. Interrelationship between agriculture and industry. Nature of agricultural business, Agricultural development and poverty, environment and Employment. Growth of agricultural output, Role of public investment in Indian agriculture, Sustainable agriculture, government strategy for agricultural development in India. Supply and role of inputs in agricultural production. Unit II Land Reforms and Agricultural Production Types of farm organization, principle of land utilization, tenancy and crop sharing – forms. Green revolution, land reforms measures and performance traditional and modern agriculture, problems of small and marginal farmers. Agricultural production, factor combination and resource substitution, resource use and efficiency, production function analysis in agriculture, size of farm and law of returns. Agricultural inputs on shifts in production function. Unit III Agricultural Productivity and Agricultural Finance Concept of cost, farm budgeting, response of individual and aggregate supply, Regional disparities in Indian agriculture. Regional variation in agricultural productivity. Resource use efficiency in traditional agriculture, cropping pattern. Role of capital and rural credit. Rural saving and capital formation, Characteristics and sources of rural credit. Role of co-oprative, credit, RRBs, NABARD, Commercial banks, SBI in agricultural finance. Unit IV Agricultural prices and Market Market structure, functions, cost, Regulated markets; marketed and marketable surplus. State policy for market, Behaviour of agricultural prices, Cob-web model, Role of state intervention, objectives of price policy, Food security in India, PDS, crop insurance. Unit V Agriculture and external sector Role of international trade in agricultural development, impact of WTO on Indian agriculture, Role and impact of MNCs on Indian agriculture, Impact of globalization on Indian agriculture.
