CURRICULUM

M.A. ECONOMICS
(TWO YEARS PROGRAM) ANNUAL SYSTEM

Approved by: Inter University Curriculum Development Board, Sub-Committee on Economics

CONTENTS
Sr. No. 1) 2) 3) 4) 5) 6) 7) 8) 9) 10) 11) 12) 13) Description Introduction
Aims, Objectives and Learning Outcomes Contents and Structure of Courses Compulsory and Optional Papers

Page No. 3

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Duration of the Program M.A. Economics: Papers and Thesis Description of Papers Degree Awarding Criteria Teaching Methodology Assessment Strategy Evaluation of the Papers Teacher’s Evaluation Brief Introduction of Courses

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Contents of Papers: M.A. Part-I
Paper 1) Paper 2) Paper 3) Paper 4) Paper 5) Paper 6) Micro-economic Theory Macro-economic Theory Mathematical Economics Statistics for Economists Islamic Economics Major Issues in Pakistan Economy 12 15 19 21 24 27

Contents of Papers: M.A. Part-II
Paper 1) International Trade Theory and Finance 29

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Paper 2)

Econometrics: Theory and Application

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Paper 3) Paper 4)

Development Economics: Theory and Policy Research Methodology

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Optional Papers M.A. Part-II
Paper 5.1) Paper 5.2) Paper 5.3) Paper 6.1) Paper 6.2) (Paper 6.3) (Paper 6.4) Paper 7.1) Paper 7.2) Paper 7.3) Paper 7.4) Paper 7.5) Paper 8.1) Paper 8.2) Paper 8.3) Paper 8.4) Advanced Mathematical Economics Applied Economics and Computer Application Operations Research (Or) Monetary Theory and Policy Public Sector Economics Investment and Project Appraisal Managerial Economics History of Economic Thought Comparative Economic Systems Environmental Economics Agricultural Economics Political Economy and Global Order Labour Economics Human Resource Development and Management Regional Economics Economic Principles, Strategies and Techniques of Marketing 39 41 42 44 46 48 50 53 55 56 58 60 62 63 65 67

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Its application to enhance human welfare has become even more vital. It is playing a central role in the new developments like globalization and emergence of World Trade Organization (WTO). Training to produce quality teachers. In the new curriculum not only the contents of the courses have been up dated but also the new emerging issues and latest reading material has also been included. ECONOMICS Degree are as given below: i) ii) iii) iv) v) vi) vii) Development of sound theoretical knowledge of the subject. It will enable them to take up research. Aims. Application of economic theories and enhancing problem solving ability. they may make appropriate changes in it as per their needs.CURRICULUM M.A. seventeen papers. In this respect. The students have been provided a wider choice to choose from five sets of courses i. Thus. 2. Preparation for advanced studies leading to M. it is important to incorporate new literature in the training courses and degree programs. as per market needs. The number of courses has been enhanced. in their second year of study. Equip students with postgraduate level knowledge and skill comparable to the top Pakistani standard and similar international institutions. The curriculum will hopefully meet national and international standards and challenges. Thus. The compulsory courses have also been revised 3 .A. Introduction Over time. Coverage of new areas of specialization. An additional compulsory course pertaining to major issues in Pakistan economy has been added so that students are aware of national economic problems and are able to carry out in-depth analysis of the economy. researchers and policy makers Dissemination of comprehensive knowledge focused at problem solving for national and international economic issues.D. and Ph. The present curriculum also contains teaching and evaluation methodology so that students are well trained and equipped with latest knowledge and skills to cope with the new emerging challenges. which may be adopted by the universities. pertaining to Pakistan. Economics has been developed. 3. Contents and Structure of Courses The new curriculum consists of contents of courses of compulsory and optional papers. therefore. ECONOMICS (TWO YEARS PROGRAM) ANNUAL SYSTEM 1. new curriculum for M. The need to improve curriculum and keep up with the pace of new developments. Objectives and Learning Outcomes Specific aims of the M. A. The universities are autonomous bodies. the subject of Economics has continuously gained significant importance. Phil. keeping in view the emergence of new trends in businesses and Governance. a long outstanding demand of the students has been fulfilled. latest research papers.e. pertaining to each paper have also been recommended to complement text books. teaching and evaluation methodology. keeping in view the changes in market demand for economists. It is important to enabler students to participate in the on going research in the subject.

Remarks All compulsory papers M. 100 marks each. to discourage short cut methods of study to just obtain degree without gaining sufficient knowledge of the subject. students having an ability but failure to get a chance for grooming will get a chance and time to make up their deficiencies and cope with the advanced material. -One year’s duration with 1½ hours teaching per week. b) One compulsory paper. thesis). teaching methodology has been proposed which may be adopted in each course. c) Two optional papers.and increased in number to cope with the new market demand. The contents of the core papers have been divided into two parts. The most demanding and new areas for specialization have been introduced. It was neglected in the past which now-a-days is highly important because of new wave of globalization. Special attention has been paid while preparing contents and chalking out teaching methodology focused at. 100 marks each (One paper may be replaced with M. Part I (Year One) a) Five papers. International Trade and Finance paper has been made compulsory. A. per week. 50 marks. with special focus on WTO and other recent developments. The aim is to prepare students for advanced studies. Compulsory and Optional Papers The core compulsory and optional papers are as given below: Description M. Keeping in view the above. depending upon the nature of the courses and facilities available in each institution. The burden of courses has been divided on equitable basis. Thus. new material has been added for which advanced approach must be adopted for dissemination of latest knowledge of the subject. Part II(Year Two) a) Three compulsory papers. In part two. -One year duration with 1½ hours teaching. This part will require homework. -One year duration with three hours teaching per week/per paper. which provide applied knowledge for new emerging jobs at national and international level. The first part provides an overview of major topics covered in the papers. The teachers are advised to use all these techniques to cover maximum literature on each subject. The areas of specialization have also been increased to provide training in all major and important areas. One year’s duration with three hours teaching per week/ Per Paper -Compulsory Papers -Compulsory Paper -Optional Papers ( To be chosen from optional sets of papers) 4 . A. 4. so that difficulty level of each study year is almost the same. Special focus of applied courses is to provide practical training so that students are well trained and they can compete in the open market and deliver on job. upon two years. problem solving and writing term paper etc. 50 marks Duration -One year duration with three hours of teaching per week / per paper. A. liberalization and other emerging changes in the world. 100 marks each b) One paper.

Total duration of the program will be of two academic years.1) Advanced Mathematical Economics (5. The committee may be approved by the Board of Studies in Economics.A.A part II. Total marks for two years program will be 1100 (550 per year). 7.1) Monetary Theory and Policy (6. Part-II Micro-economic Theory Macro-economic Theory Mathematical Economics Statistics for Economists Islamic Economics Major Issues in Pakistan Economy (100 marks) (100 marks) (100 marks) (100 marks) (100 marks) (50 marks) a) Compulsory Papers: Paper-1: International Trade Theory and Finance Paper-2: Econometrics: Theory and Application Paper 3: Development Economics: Theory and Policy Paper-4: Research Methodology (100 marks) (100 marks) (100 marks) (50 marks) In Part-II.1 Description of Papers M. students may opt for M. Part-I (All Compulsory Papers) Paper-1: Paper-2: Paper-3: Paper-4: Paper. The papers for M.2) Public Sector Economics (6. 6. students will opt for two optional papers from the five sets of optional papers given below.A.A part I. The admission committee may conduct written test and vivavoce for this purpose. which will be offered in year two of the program. ii).A part I and II are given in the following section.3) Investment and Project Analysis 5 . Economics: Papers and Thesis In M.2) Applied Economics and Computer Applications * (5. Migration of students will be acceptable as per university rules and also subject to fulfilling admission criteria and satisfaction of the admission committee. In M. b) Sets of Optional Papers: Paper-5: Option (5.3) Operational Research Paper-6: -do(6.5 Paper-6: 7. In lieu of one optional paper.A thesis. All optional papers are of 100 marks each. Duration of the Program i). M. The proposal of thesis be discussed in a faculty meeting of the department and then presented for approval by the committee consisting of five members of the Board of Studies. Migration will be allowed only in the first year of the program. having distinct record of research publications. 7.5. there are four compulsory and two optional papers.2 M. all papers are compulsory and will be offered in Year one of the program.A. but not more than one paper from each optional set.

The internal examiners will be supervisors of the term paper. the student must pass three papers of 100 marks each in part I and also the same number of courses in Part II. they must score 45% marks in aggregate to pass Part-I and Part-II each exam in a single attempt.1) (8.4) Paper-7: Managerial Economics -do(7. In addition to compulsory papers. Thesis will be of 100 marks. ii) Submit approved thesis (in lieu of one optional paper). The student must defend his / her thesis. The new students are given a chance to have a refresher course of the subject matter and to provide them some time to improve their academic deficiencies so that they can handle advanced material. Students and teachers may attend the defence. A. Degree Awarding Criteria The students must score 40% marks in each compulsory and optional papers to pass the courses. thesis. *(Students must produce a written term paper.(6. otherwise.3) (7. If the students opt for M. It must be approved by the concerned quarter.A Economics program. Other university rules will apply.A. within the time period as prescribed in the University Calendar. 8. Only regular students can opt for this paper. thesis Supervisor / advisor and external examiner appointed by the Vice Chancellor. However. Teaching Methodology The courses have been designed keeping in view background of students entering in the M. Thesis M.5) History of Economic Thought Comparative Economic Systems Environmental Economics Agricultural Economics Political Economy and Global Order Labour Economics Human Resource Development and Management Regional Economics Marketing Economics: Principles.4) Paper-9: -do- M. current national and international economic issues. he/she will have to appear in examination again in all papers. In viva-voce examination. in lieu of one optional paper.3) (8.1) (7. It will be examined by the advisers/ internal examiners. Evaluation of thesis will be done by a Committee consisting of Chairman of the Department of Economics of the University. Techniques and Strategies Paper-8: -do(8. The first part is meant to review the subject material with intermediate level of difficulty. All major courses are designed in two parts.2) (7. students must pass two optional papers.2) (8.A. 9. It must be taught 6 . There will be 80% marks assigned to the r written examination and 2o% marks for term paper. he / she must: i) Submit approved research proposal in due course of time. questions may be asked relevant to the thesis and other courses pertaining to economic theory.4) (7. which must reflect application of Economic. Vice Chancellor may also appoint an additional member to ensure fair evaluation of thesis. The second part consists of recent and advanced material.

assignments. for example. the annual system of examination and testing has failed to achieve the desired objectives. along with course outline. following strategy has been evolved to provide guideline for evaluation: i) Internal and external evaluation of scripts must be carried out. In the tutorial classes. It is also suggested that the tutorial classes must be made mandatory. It is strongly recommended that. other than the teacher concerned. ii) A clear mechanism for evaluation particularly internal evaluation must be announced and provided in writing to the students at the beginning of the course i. which must be focused upon problem solving. Other discussions may include ethical. There will be a need to use electronic devices for effective delivery of such material for certain courses. which must be delivered by prominent experts /economists.e. may also be discussed. It 7 . Some of these seminars may be delivered by a team of students. estimation of models and review of literature as per relevance of the paper. This trend must be discouraged. which may reflect whether student has absorbed the material. periodical homework / assignments must be assigned and duly evaluated. homework and quizzes may vary as per local environment. national and social welfare orientation activities. The instructor may not deliver lecture on the same topic. bi-weekly or at least once in a month. Besides. iv) Two types of seminars / workshops should be held in the which the department. These assignments may be given proper weightage in the final internal evaluation / awarding marks. Given the above problems. Besides. b) by a group of students or individuals to train them for teaching and reproducing the material absorbed. It must be followed by homework assignments. 10. Its focus must be on development of personality and patriotism. Presently. In addition to above. students must be given a chance to share their academic and other problems. Students do succeed to obtain good marks with shortcut methods and selective study. The seminars may be followed by homework. Teachers may introduce mathematical and other advanced techniques to teach such material. it is important to evolve appropriate strategy and techniques to test the students. v) As far as internal and external evaluation is concerned. Students must be given two assignments each month to make sure that they have covered the reading material. iii) To ensure full coverage of the reading material. it is popular to consult one book which is of low quality and provide selective study aimed at marks obtaining mechanism. needs and facilities available in the institutions concerned. it may be followed up by homework assignments. not comprehensive knowledge and proper training. during the course time frame work at least two /three seminars must be arranged on current / important topics.keeping in view the level and new developments. topics of international importance. it may consist of a summary of the lecture and its critical review etc. Assessment Strategy To assess whether students have gained and absorbed sufficient knowledge of the subject. moral. the weightage assigned to internal examinations. However. Planning for the seminars must be done in the beginning of the course and announced within the first two weeks of the session. within a span of four to six weeks. if possible. if he / she thinks that the seminar has covered the literature at the required level. which need not be based upon Economics. it is recommended that there must be at least one seminar in each course. prescribe them appropriate: course/papers for a) by experts.

is important that both types of evaluations must be made a part of degree awarding criteria. (Other university rules will apply. However. The evaluation must be carried out for each course and outcome of these evaluations must be discussed with teacher concerned. ii) Internal and external evaluation of the students will be carried out. Dual evaluation of teachers may be carried out: i) ii) by the students by the peer group / head of Department. Before announcing the result. homework and seminar etc. examinations. within two months of the final assessment by the faculty. vi) In the internal evaluation some weightage must also be assigned for attendance in class and participation of students in class discussions / seminars. the mid-year assessment and final assessment at the end of the year. in consultation with the department faculty / chair may decide the distribution of weightage for internal evaluation for attendance. after every year. However. fairness and objective orientated evaluation must be ensured. Teacher concerned. Average of the marks assigned by internal and external examiner will be reflected on the transcript. Evaluation of Papers/Courses After a detailed discussion. In this case. private students may be evaluated by the external examiners. of the concerned University. university will conduct examination. Assessment of private students will continue as being done at present)) 11. which will be called external evaluation. internal examiner will prepare a sample copy of the questions and external examiner may change it up to 75%. the assessment of students must ensure that students have gained sufficient knowledge at the required level and he / she is able to deliver on job. experts reached a consensus that present annual system of evaluation has failed not only to equip the students with needed knowledge but they are also unable to perform on job. The weightage for internal and external evaluation may be decided as per needs / facilities of the institution concerned.. 8 . Thus. 12. must verify the result. Teacher’s Evaluation The teacher’s evaluation must be carried out with an intention to improve teaching quality. iii) The instructor must report internal assessment to the department / institution chair twice in a year. It is proposed that 40% weightage of marks/division/grade may be assigned to internal evaluation and 60% for external evaluation.. three senior faculty members of the Department of Economics. Department head must send the internal examination / assessment results to the Controller of Examination. the following system for evaluation may be adopted: i) The Annual system may be continued in the institutions where it is considered that no alternative system is possible to be introduced at this moment. Second evaluation of the external examiner may be considered final. if he thinks there is a need to change the marks more than 10%. for all papers. Answer scripts must also be evaluated by the internal examiner and the internal examiner may change the marks (awarded by the external) up to maximum of 10%. The teachers must be advised to make up deficiencies in the coming years. The teachers who consistently fail to improve need not be allowed to teach the course(s). for each paper. Thus. He may return the script back to external examiner. Thus.

2. and aggregate demand and supply. Statistics for Economists The main objective of this course is to acquaint students with the basic techniques of statistical methods with strong emphasis on its application to economic theories and principles. 9 . The second part. demand and supply of money. Micro-economic Theory This course aims at providing comprehensive knowledge of consumer. perfect and imperfect market structure. long run economic growth. In particular. and market theory and their applications. It is expected that the course would enable its participants to comprehend major microeconomic models which will help in business decision making. are expected to understand and analyze economic models and their multivariate relationship. general equilibrium analysis. 3. The topics in this part would be analyzed at an intermediate level. 1. Prerequisite for this course is introductory-level knowledge of macroeconomic theory and intermediate level calculus. The participants. comparative-static analysis. Mathematical Economics The aim of this course is to equip students with the basic mathematical tools that are useful as an approach to economic analysis. The course is spread over two parts. game theory. economic fluctuations. which is equivalent to two semesters and three hours per week of lecturing/teaching. uncertainty. Prerequisite for this course is a basic knowledge of introductory-level algebra. Major topics covered in this course are measures of central tendency. In particular. while ushering participants to more topics. The material covered in this course would enable students in not only testing the predictions of economic theories at an elementary level. The course is covered in two parts. 4. risk analysis. Participants of this course would approach the fundamental theories of micro. firm. The participants of this course would be expected to comprehend key debates over macroeconomic issues and policy-dilemmas faced by various economies. and welfare economics.13. students would learn the static and/or equilibrium analysis.and macro-economics using mathematical models. Brief Introduction to Courses All major courses of hundred marks each are of one academic year duration. The first part revises major concepts in microeconomic theory at an intermediate level. but it would also help develop the basic skills necessary to take advanced courses like econometrics and growth models. The second part of this course includes advanced level topics. the students are expected to develop deductive reasoning and comprehend classical methodology pertaining to models of consumer behavior. Special emphasis is placed on scrutinizing the models developed in this course on the basis of real time macroeconomic data. after the completion of this course. and macroeconomic policy debate involves the use of mathematical tools and models. such as exchange rates and open economy. firms’ decision making. savings and investments. Prerequisite for this course is elementary-level knowledge of microeconomic theory and intermediate level calculus. consumption. probability. The treatment to topics. The first part consists of topics such as national income and its determination. gets rigorous in its treatment to the microeconomic theory. Macroeconomic Theory The main objective of this course is to familiarize students to the fundamental theories and models in macroeconomics. and static optimization problems. encompassing the economics theories. Special importance is placed on developing problem solving skills to the issues related to microeconomics.

The topics covered in this course range from microeconomic to macroeconomic concepts pertaining to fundamentals of Islamic thoughts.sampling design. Prerequisite for this course is a basic knowledge about Pakistan economy and macroeconomics and development models. determinants of exchange rate. poverty. analysis of variance. and Bayesian analysis. balance of payments problems. Emphasis in this course is on the rigorous treatment of traditional and current trade and exchange rate theories and models. It focuses on. and current process of Islamization of economic system in Pakistan. regression on dummy dependent variable. and time series econometrics. budget deficits. 5. liberalization reforms. Major topics in this course are Islamic models of finance. pattern of trade. International Trade Theory and Finance This course is designed to familiarize students with international economics. Major Issues in Pakistan Economy This course aims to provide an overview of Pakistan’s economy while focusing on the current issues. international flow of factors of production. In particular. growth without significant development and expected impacts of WTO regime. Furthermore. Shariah and economic theory. Prerequisite for this course is basic knowledge of holy Qura’an. zakat and social justice. non-parametric statistics. Prerequisite for this course is intermediate-level knowledge of economic theory and mathematics. the topics covered in this course are the nature of regression analysis. and the other international finance. this course would prepare students for jobs in both public and private sector organizations. Hadith. By providing trainingbuilt analytical ability. It is divided into two parts. This course would benefit its participants in research projects and provide a better understanding of Pakistan’s economy. 6. welfare and distribution of income. Sectoral imbalances. unemployment. single. This is achieved through providing the students with an understanding of basic econometric theory and models. and future markets are some of the topics covered in this course. estimation techniques. However. Major issues covered in this course are manpower planning. public debt. simultaneous equation models. assumptions of the classical regression model. Islamic Economics The main objective of this course is to acquaint students with the economic aspects of Islamic principles and their application to analyze contemporary economic problems. income distribution. Special emphasis is placed on the application side of this course. banking systems. Students would make use of models to investigate and analyze various economic problems and challenges faced by Pakistan’s economy. implications of international flow of funds and debt crises are covered in depth. the contributions in development economics of Abu Yousaf to debate on good governance and functioning of market system of Ibn-e-Khuldon. No prerequisite for this course is required. among others. 10 . Econometrics: Theory and Application This course aims at introducing students to the quantitative aspects of various econometric theories. The course helps to build nexus between the Islamic principles and mainstream economic theories.and multi-variable regression analysis. Models of gains from trade. basic knowledge of statistics will be an added advantage. students would be comfortable in handling and analyzing data and use of estimation techniques. 8. trade related competitive theories. The first part covers the trade theory. which is particular for policy formulation. 7. econometric modeling. It is expected that after the completion of this course. economic growth.

such as poverty. students are introduced to the conceptual meaning of economic development while distinguishing it from economic growth and the common characteristics of developing countries. apart from contributing to empirical research and analyzing projects. students are expected to contribute to the society with their opinions about the development problems from various forums of public and private organizations. unemployment. All the courses cover state-of-theart material in the respective areas. and policies adopted in the developing countries to accelerate welfare of their citizens. and macroeconomic destabilization. statistics. A considerable knowledge of introductory-level macroeconomic and microeconomic theory is an advantage. 11 . It helps to understand structure and functioning of institutions. After the completion of this course. A wide choice of selection comprising sixteen courses and more than ten areas of specialization is provided. and economic theory. the participants of this course would also develop scientific and rational thinking.Participants would make use of statistical soft wares to undertake regression analysis. Students can choose optional courses according to their career ambitions. The course covers theories of economic growth and models and their application pertaining to contemporary issues of the developing world. statistics. 11. Students after the completion of this course are expected to be comfortable in data analysis. otherwise no special prerequisite for this course is required. and econometrics along with some degree of writing and computer skills. In this course. They may select a topic of their interest for their thesis and take a course in the same area to build a strong background in that particular area. Development Economics: Theory and Policy This is a course about the understanding of the economies popularly known as developing countries. Optional Courses and Specialization Major objective of these courses is to provide training in nearly all those areas of economics that are significant as per market demand. income distribution. markets. Prerequisite for this course is intermediate-level knowledge of calculus. Students can also choose two optional courses in such a way as to combine them with relevant compulsory courses and end up specializing in two areas. Research Methodology This course aims at preparing students to strengthen their research abilities with the standard paraphernalia of research methodology. 10. Prerequisite for this course is intermediate-level knowledge of economic theory. Apart from learning research techniques and developing necessary skills. The course develops necessary abilities in the students to generalize and apply development economic theories to solve the most pressing problems of the developing world. 9. The contents of this course are designed to facilitate research at micro and macro levels and of both qualitative and quantitative nature.

Giffin goods and normal goods. Traditional Vs Modern theory of cost. Topic 3: Market Demand & Elasticity Market demand curves. Income & Substitution effects: Hicksian Framework and Slutsky equation. Types of demand curves. Derived Demand. Short Run and Long Run analysis: Elasticity and relationships among elasticities of demand. Game Theory. Short Run supply by a Price taking firm. The utility function. Marginal Revenue. Indifference curves and Marginal Rate of substitution (MRS). MICRO-ECONOMIC THEORY Part A: Topic 1: Introduction Microeconomics: Comparison with other Branches of Economics. Cobb Douglas Production function. Cost functions. CES Production Function. The controversy over the profit maximization hypothesis. Changes in input prices. Topic 4: Production Functions The Concept of Production Function. Markets. 12 . Implication of Elasticities and Problem Solving Approach. Topic 2: Theory of Consumer Behaviour and Demand Analysis Axioms of Rational Choice. The elasticity of substitution. Topic 5: Cost of Production Definition of costs. Introduction to Maximization of a functions. Isoquant Maps and the rate of technical substitution. Functions of several variables & their optimization. Cost and Welfare. Translof Function. Equilibrium of the firm. Production. Long Run distinction. Revealed Preference and the Substitution effect. Returns to scale. Indirect utility function & its derivation. Profit maximization. Decreasing and Increasing Cost Industry and Price Determination. Development of the Economic Theory of value.M. Non-homothetic Preference. how to Choose Variables. Cost Minimization. Theoretical issues in Market demand analysis. Consumer’s Decision. Input Cost and Demand for Factors of Production. Cost minimization. Identification of Inferior goods. Concepts of Perfect substitutes and perfect complements. Derived Demand. A. Implicit functions. Convexity of Indifference curve. Indifference curves and Transitivity. Input substitutability. Arguments of utility function. An alternative derivation: Marginal utility. Consumer’s equilibrium. Part B Topic 6: Profit Maximization and Supply The nature & behaviour of firms. Profit maximization and input demand. Short Run. Some common production functions. Part I 11. An Overview of Microeconomics Topics. Cost Minimization. Technical progress. CONTENTS OF PAPERS Paper 1. MRS. Variation in one input. Economic Models. relationship between cost and production curves.

The Short run Demand Curve. Pareto Optimality. General Equilibrium and the Allocation of Resources. Characteristics of Monopolistically competitive firms. Comparison with pure competition & monopoly. Monoposony and Buying Power. The Payoff Matrix of a Game. Variable inputs. Role of Unions.2: Monopoly: Monopoly & its Basics: The negatively sloping demand curve: Short run equilibrium. Bertrand Equilibrium. Sweezy & Price Leadership Collusive model of oligopoly: cartels & price leadership models. 13 . 7.3: Monopolistic competitive conditions: The historical setting of the theory of monopolistic competition. 7. Quantity Leadership (Stackleberg Model) Price Leadership.1: Perfect competition: The Perfectly competitive market: The assumptions of the Model: Short run equilibrium of the price taker firm: Long run equilibrium of the price taker firm: Equilibrium of the industry: Mathematical Derivation of Equilibrium Prices and Quantity: Difference between Perfect and Pure Competition. influence on Price. Equilibrium conditions. Concept of Contract Curve . Stackleberg Case. Mathematical Derivation of Price and Quantity Determination. Nash Equilibrium. Market demand Curve for an Input: The Price of fixed Factors: Rents & Quasi-rents. Mathematical derivation of Price and Quantity. Topic 8: Game Theory Description of a Game Theory.4: Oligopolistic conditions: A simple statement of the problem of oligopoly: Models of Non-collusive Oligopoly: Cournot. 7. Long Run Equilibrium: Price discrimination: Bi-lateral Monopoly: Multiplant Monopoly: Comparison with perfect competition: Monopoly and Price Distribution. The Prisoner’s Dilemma. Price and Output Decision. Topic 9: Pricing of Factors of Production Short Run Demand for one Variable Input. Mathematical Derivation of Price and Output Decision under Monopoly. Topic 10: General Equilibrium Assumptions of the 2 X 2 X 2 models. Conjectural Variation.Topic 7: The Theory of Market Behaviour 7. Mathematically Price and Quality Solution. Input price Elasticity. Collusion (Cartel). Static Properties of A General Equilibrium Model. The Supply Curve of Labour: Wage Determination. Chamberlin. Sub-game Perfect Equilibrium: Sequential Equilibrium. Arrow’s Impossibility Theorem. Edge Worth Box diagram. Cournot Equilibrium. Bertrand. Monopoly and Price Discrimination. The concepts of industry & group: The basic Chamberlain theory of Monopolistic competition. Application of Game Theory.

Topic 12: Uncertainty and risk Analysis Concept of expected utility & its theorem. N. G. The world publishing co. Macmillan. C. Welfare Maximization and perfect Competition. D. Silberberg E. 5. Risk aversion and Risk loving in Risk neutral. W.T. A. Arrow Pratt measure of relative risk. Walter Nicholson. Norton & Company. Affine function.E.Y Macmillan..M & Quandt. 2.. Economic Theory and Operations Analysis. Prentice Hall (Latest Edition). A Mathematical Analysis. The Structure of Economics. Readings in Microeconomics. New York. 2.T. McGraw Hills.Y Melliwra H A Book Co. (Latest Edition). Externality analysis. 4. Uniqueness of expected utility function. Global Risk aversion. New York. Anti-trust Policy and regulations.. Macmillan.. Prentice Hall (Last Edition). Criteria of social welfare. (* Strongly Recommended) 14 ..R. Baumol. (Latest Edition).. Market failure and public goods/social goods. (Last Edition). Welfare Maximization. Measurement of risk aversion.. N. 1992. Varian Hal R. (Latest Edition). Henderson.. (last Edition). J. Arrow Pratt measure of (absolute) risk aversion. Price Theory and Applications*. 6. Layard and Walter A. London. Ferguson. Kameischon. J. 3. Recommended Books: 1. R. 3.A.. McGraw Hill.P. Microeconomic Theory*. Koutsoyiannis. 4.J. Microeconomic Theory. Microeconomic Theory: Basic Principles and Extensions (6th edition). (Latest edition). London. Hirshleifer Jack. Stiglor. The Theory of price. Micro Economics Analysis*. Modern Microeconomics*. 5.E & Gould. Additional Readings: 1.Topic 11: Welfare Economics Meaning of Economic welfare. Micro-Economics*.

Shape of IS-curve. Deflation and Stagflation. Determinants of investment. Inflation Indexes. Random Walk Model. Government Spending and Net exports. Economic Models. Introduction and National Income The Development of Macroeconomics. Topic:5 Money Market: The Demand and Supply of Money Money Demand and its Determinants. Nominal and Real Variables. Measuring Unemployment: Oken’s Law. GNP as measure of welfare. Product Approach / Income Approach. Keynesian Consumption Function. Introduction to Keynesian and Classical School of Thoughts. MACRO-ECONOMIC THEORY Note: Part A: Topic:1 Part A consists upon intermediate level material while in Part B advanced literature will be covered. Leakages and Injections: Saving and Investment and their Role. Analytical Approach to Macroeconomics. Equilibrium of Aggregate Demand and Supply: Mathematical Solution and Equilibrium. How to build simple Macroeconomic Models. Lags in Investment Demand. Labor Market and its Equilibrium. Inclusion of Imports and Multiplier.Paper 2. Exogenous and Endogenous Variables and their Functional Relationships. Tobin’s Q-Theory. Production Function. Topic:3 Theories of Consumption and Their Implications Theories of Consumption: Duesenbury Hypothesis. Shifts in Investment Demand Curve and output determination. Derivation of Simple Multiplier. The MPS Model. Saving and Investment Balance. 15 . Implications of Consumption Theories for Policy Formulation and Stabilization Policy. Potential Output. Derivation of IS-curve. Supply of Money. Mathematical Approach may be adopted in Part B. Permanent Income Hypothesis / Life Cycle Hypothesis. Mathematical derivation of Consumption Models. Demand for Labor and Capital: Marginal Product of Factors and their Demand. Volatility of Investment. Empirical Estimation of Income and Interest Elasticities. Price Indices. Investment Demand and Output Growth. Determinants of Money Supply. Wealth effect in the Static Model. Kuznet’s findings and Reconciliation of Marginal Propensity to Consume and Average Propensity to Consume and Evidences. Beyond Permanent Income Hypothesis. Regressive Expectation Model. Portfolio Balance Approach. Investment Demand and Fiscal Policy. Investment. Topic:4 Saving and Investment Definition and Kinds of Investment. Topic:2 Income Determination Firm’s Demand for Factors of Production. Tax Multiplier. Leading and Lagged variables. Circular Flow of National Income. Measurement of GNP: Expenditure Approach. Measurement of Money Supply and its implications. Autonomous and Induced etc. Demand for Goods and Services: Aggregate Demand and its Components: Consumption. Present Value Criteria for Investment. Instruments of Monetary Policy. Actual vs.

Long-run and Vertical Aggregate Supply Curve. Topic:9. Tax shooting. Price Expectation and Unemployment Demand and Supply of Labour. Interaction of IS-LM and Equilibrium. Adaptive Expectations. Slope of Aggregate Supply and Demand Curves. Ineffectiveness of Keynesian Policies. Government Debt and Budget Deficit The size of Government Debt. Money. Ignorance. Ricardian view of Debt: Ricardian Equivalence. Topic:8.Fleming Model (MFM): Small open Economy with perfect Capital Mobility. making Policy in uncertain World.Interest Sensitivity of Money Supply. Macroeconomic Policy Debate Policy Actions: Active or Passive. Prices and Inflation. Interaction of IS-LM and Determination of output: Short-run and Long-run analysis: Aggregate Demand and Supply and their Slopes. Distrust of Policy makers and Political Process. Seignorage and Inflation: What can Policy Accomplish? Monetarists vs. Macroeconomics Policy: Rules for Fiscal Policy. Stagflation and Stabilization Policies. The Sticky Wage Model. The Workers . 16 . Expectations and the Lucas Critique. Ricardo and Ricardian Equivalence and Debate. Capital Assets. Classical and Keynesian Models. Quantity Theory of Money and its Critical Review. Devaluation and Recovery from great depression. Activists debate.Information Model. Effectiveness of Policy and Price Rigidity. Vertical / Horizontal Shapes of these Curves. Monetary Policy. Supply and Stabilization Policy Keynesian Models: Liquidity Trap. Topic:10. Liquidity Trap. Flexible and Managed Exchange Rates. Topic:6. Supply Side Economics. Depreciation and its impacts. Labor Market. Trade Policy: Mundell-Fleming Model (MFM) with changing Price Level. LM Curve and Money Market Equilibrium. The Sticky Price Model. Delayed Stabilization. The expectation augmented Phillips Curve. MFM and large open Economy. IS-LM: Goods and Money Market. Technical Change and Shift in Vertical Aggregate Supply Curve. Open Economy and Macroeconomic Stabilization Exchange Rates and their Determinants: Mundell . RE and Painless Disflation. Fischer effect. Hysteresis and challenge to Natural rate Hypothesis.Misperception Model. Small Open Economy. Shocks to ISLM and its Outcomes and Policy Implications. Measurement Problem: Inflation. Rational Expectation (RE). Aggregate Demand. Fixed Exchange Rate and Fiscal Policy. Income Absorption Approach and exchange Adjustment and Balance of Payment. Equilibrium in the Labour Market. Phillips Curve: Short run and Long run analysis. Grand Aggregate Demand Curve. Conduct of Policy: Rule vs. Short-run – Long-run Philip Curves. Floating Exchange Rate and Fiscal Policy. Slope of IS-LM in Short-run and Long-run. Money Inclusion and output. Insider-Outsider Models. The Imperfect . Short Run and Long Run Adjustment. Shocks to Aggregate Demand and Supply and Stabilization Policy. Business Cycle etc. Consumers and Future Taxes. Discretion. Perfect Foresight and Adjustment. Model of Debt Crises. Part B: Topic:7. Derivation of LM Curve and its Slope.

Topic:11.

Economic Fluctuation and Its Sources

The Theory of Real Business Cycles: Interpretation: Labor Market, Technology Shocks. Household Behaviour, the persistence of output Fluctuations. Limitations of the Model. The Challenges: What we know and what we don’t know? Long-run and Country’s Capacity to Produce. Short-run and influence of Aggregate Demand. Random Walk Model. What Determines Inflation Rate, Unemployment Rate and Output Growth? Can we revise Natural Rate of Output? Should we stabilize the Economy? The cost of Inflation? The problem of Budget Deficit?
Topic:12.

• •

Long-Term Growth and Full Employment

Basic Neo-Classical Growth Model and Equilibrium Capital / Output Ratio, Wage – Profit Relative Shares. Neo-Classical Model with Technical Progress: Capital Embodied Technical Progress. Neutral Disembodied Technical Progress. Labor-Augmenting Disembodied Technical Progress. Kaldor Saving Function and Neoclassical Production Function. Golden Rule and Optimal Growth Models. New Growth Theory / Endogenous Growth.

• • •

Recommended Books: 1. 2. 3. 5. 6. 7. 8. 9. 10. Branson, William H., (1979), Macroeconomic Theory and Policy, Harper and Row Publishers, New York / London. Branson, William H., and Litvack James M., Macroeconomics*, (Latest Edition), Princeton University. Glahe, Fred R., (Latest Edition), Macroeconomics, Theory and Policy, Harcourt Brace Jovanovich Inc. Mankiw, Gregory N., (2000) Macroeconomics*, Worth Publishers, New York. Peel D. and Minfow P., (2002). Advance Macroeconomics, Edward Elgar, Cheltenham, U.K. Romer, David, (2001). London. Advanced Macroeconomics*, McGraw Hills, New York /

Sargent, Thomas J., (1988) Rational Expectations and Inflation*, Harper and Raw Publishers, New York / London. Rosalind Leveic and Alexander Reborens, Macro-economics: An Introduction to Keynesian Neo-Classical Controversies; Macmillan (Latest edition). Denison, Edward F. 1985. Trends in American Economic Growth, 1929-1982. Washington: The Brookings Institution. Strongly Recommended

*

Additional Reading Material / Research Papers: 1. Ball, Laurence, Mankiw, N. Gregory, and Romer, David. 1988. “The New Keynesian Economics and the Output-Inflation Tradeoff.” Brookings Papers on Economic Activity, No. 1, 1-65, Reprinted in Mankiw and Romer (1991).

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2. Barro, Robert J. 1976. “Rational Expectations and the Role of Monetary Policy.” Journal of Monetary Economics 2 (January): 1-32. 3. Barro, Robert J. 1989. (January): 3-30. “Interest-Rate Targeting.” Journal of Monetary Economics 23

4. Barro, Robert, J., and Gordon, David B. 1983b. “Rules, Discretion and Reputation in a Model of Monetary Policy.” Journal of Monetary Economics 12 (July): 101-121. Reprinted in Persson and Tabellini (1994). 5. Bernheim, B. Douglas. 1987, “Ricardian Equivalence: An Evaluation of Theory and Evidence.” NBER Macroeconomics Annual 2: 263-304. 6. Blanchard, Olivier J. 1984. “The Lucas Critique and the Volcker Deflation.” American Economic Review 74 (May): 211-215. 7. Fischer, Stanley. 1993. “The Role of Macroeconomic Factors in Growth.” Journal of Monetary Economics 32 (December): 485-512. 8. Friedman, Milton, 1968. “The Role of Monetary Policy”. American Economic Review 58 (March): 1-17. 9. Genberg, Hans. 1978. “Purchasing Power Parity under Fixed and Flexible Exchange Rates.” Journal of International Economics 8 (May): 247-276. 10. Long, John B., and Plosser, Charles I. 1983. “Real Business Cycles.” Journal of Political Economy 91 (February): 39-69. 11. Mankiv, G., N. (1990), A quick Refresher Course in Macroeconomics, Journal of Economic Literature, Vol. XXVIII, 1645-60. 12. Romer, Christina D. 1999. “Changes in Business Cycles: Evidence and Explanations.” Journal of Economic Perspectives 13 (spring): 23-44. 13. Romer, Paul M. 1990. “Endogenous Technological Change.” Journal of Political Economy 1998 (October, Part 2): S71-S102.

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Paper 3. MATHEMATICAL ECONOMICS
Topic 1: The Nature of Mathematical Economics

Ingredients of mathematical models. Derivations: Equation of a straight line and its forms: Two point, intercept, point slope and slop intercept. Types of functions: constant, polynomial, rational, non-algebraic. Relationships and functions. Indices & their rules. Functions of more than two independent variables. Logarithms & the rules of logarithms.
Topic 2: Equilibrium Analysis in Economics

A linear partial equilibrium market model. The effect of an excise tax in a competitive market. Non linear market model. General Market Equilibrium. Equilibrium in a linear National Income Model.
Topic 3: Linear Models and Matrix Algebra

Theory of matrix multiplication. Laws of matrix operations. Types of matrices: Square, identity, null, idempotent, diagonal, transpose and their properties. Conditions for non singularity of a matrix. Minors and cofactors. Determinant & its properties. Solution of linear equations through Gaussian method, Cramer’s rule and Inverse of a matrix method. Properties of inverse of a matrix. Use of matrix approach in market & national income models.
Topic 4: Input-Output Analysis

Input-output model, its structure and its derivation. The use of input output model in Economics.
Topic 5: Differentiation

Rules of differentiation. Differentiation of a function of one variable. Sumdifference, product, quotient, chain, power, inverse, logarithmic & exponential functions Combinations of rules. Higher order derivatives. Economic applications of derivative. Concept of maxima & minima, elasticity and point of inflection. Profit & revenue maximization under perfect competition, under monopoly. Maximizing excise tax revenue in monopolistic competitive market, Minimization of cost etc.
Topic 6: Partial & Total Differentiation

Partial differentiation & its rules. Higher order & cross partial derivatives (young’s theorem). Total differential & total derivatives. Implicit functions rule of differentiation. Optimizing cubic functions & their economic application.
Topic 7: Economic Applications of Partial & Total Differentiation

Comparative static analysis: a linear Partial equilibrium market model, a linear National Income model. Partial elasticities. Production functions Analysis. Maximization & Minimization of unconstrained functions & their economic applications: Profit maximization by a multi-product firm under perfect Competition & monopoly, Price discrimination, Multi-plant monopoly, input decisions etc.
Topic 8: Optimization: Constrained & Extrema

Free and constrained optimization, extrema of a function of two variables: graphical analysis, Lagrange method. Utility maximization & Cost minimization. Homogenous Production function, Cobb Douglas Production function. Jaccobian determinants. CES Production Function. Translof Function.

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McGraw Hills. Fundamental Methods of Mathematical Economics. 5. (Latest edition). Mathematics for economists. economic application of linear programming. 2. Frank. simplex method. J. Economics and Social Sciences.. (Latest Edition). Mathematical Analysis. Business and Economic Applications (Latest Edition) Harper and Row Publishers. Macmillan. Schum Series (latest edition). Concept of primal & dual. Graphical approach. Dowling E. Budnick. 20 . Solving of Primal via dual. Baumol W. A. Chiang. New York. 4. C.. Weber E. Recommended Books: 1. 3. Jean. Duality theorems. Economic Dynamics. T. Economic interpretation of a dual.Topic 9: Linear Programming Ingredients of linear Programming.. Applied Mathematics for Business.

The normal probability distributions: Properties of normal distribution. Bivariate and Multivariate data. Areas under the normal curve. Variance and standard deviation: Definition and interpretation of variance and standard deviation. Types of data: Univariate. Time series. Quartile deviation. Significant digits and rounding off numbers. Tree diagrams. Hypothesis testing. Some rules of probability: Rules of addition. Advantages of sampling. Representative samples. variance and standard deviation of a probability distribution. Rules of multiplication. Primary and secondary data. parameter and statistic. Percentiles. Types of Averages: Mean: Arithmetic mean. Discrete probability distribution. Coefficient of variation. The cumulative distribution function: Finding the percentile ranking for a given number. Topic 5: Survey Sampling and Sampling Distributions Sampling the population. Bowley’s coefficient of skewness. Graphic and diagrammatic representation: Bar chart. Frequency curves and Histograms. Variable and constant. Interval and Ratio. Applications of the standard normal distribution. Continuity correction factor. Pie chart. Type of measurement scales: Nominal. Computation of variance and standard deviation. Empirical concept. Probability and nonprobability sampling. The permutation formula. Quintiles: Median. Standardized variable. Classification. The mode. Skewness and Kurtosis Absolute and relative measure of dispersion. Ordinal. Properties of standard deviation and variance. Counting rules: The multiplication formula. and its computation. Errors: Biased and unbiased. Geometric mean. Bayes Theorem. The percentage frequency distribution. STATISTICS FOR ECONOMISTS Topic 1: Introduction Descriptive and inferential statistics. Introduction. Sample design and sample survey. Histograms. Sampling and 21 . Finding areas under the normal curve. population and sample. Exploring the data. Deciles. Quartiles. Harmonic mean. Topic 3: Measures of Dispersion. The relative frequency distribution. Skewness: Karl Pearson’s coefficient of skewness. Empirical relation between Mean. Subjective probability. Sampling frame. Histograms by Hand: Stem-and-leaf. Binomial probability distribution.Paper 4. Properties of Binomial probability distribution. Kurtosis. The normal approximation to the binomial. Mean deviation. Measure of central tendency. Crosssectional and pooled data. Quantitative data and qualitative data. The cumulative frequency distribution. Topic 2: Presentation of Data and Measure of Central Tendency Introduction. Discrete random variable. The mean. Sampling with and without replacement. Conditional Probability. Continuous random variable. Tabulating numerical data: The frequency distribution. The combination formula. Box plot and detailed box plot. Different measures of dispersion: The Range. Summary measures and type of data. Cumulative probability distributions. Estimating an unknown quantity. Median and Mode. Random variables. Trimmed mean and Winsorized mean. Step deviation method or coding method. The four basic activities in statistics: Designing a plan for data collection. Topic 4: Probability and Probability Distribution A survey of probability concepts: Classical probability. Finding the percentile for a given percentage.

Confidence interval estimate of a population mean (Unknown Variance) Confidence interval for differences of means. Testing for a population mean: Large sample. Contingency Table Analysis. Topic 9: Analysis of Variance Introduction. comparing populations with small samples. Using the goodness-of-fit test to test for normality. Confidence interval and predication interval estimate. Multiple standard error of estimate. Matrix approach. Variable selection. The relationship among the correlation coefficient. Coefficient of determination. Rank correlation. P-Value in hypothesis testing. the coefficient of determination and the standard error of estimate. Assumptions underlying linear regression. Goodness-of-fit test: Equal expected frequencies. one-tailed test. Measures of variation: Standard error of the estimate. Interpretation of partial regression coefficients. Inferences about pairs of treatment means. Testing for a population mean with a known population standard deviation: Two-tailed test. (ii) Semi average. Topic 6: Estimation and Confidence Intervals Point estimates and confidence intervals. Inference about the slope and correlation coefficient. sampling bias. Confidence interval for population proportion. One Sample. Sampling distribution of differences between means. Scatter diagram. Coefficient of multiple determination (adjusted and unadjusted). Evaluating the regression equation: 22 . ANOVA assumptions. Correlation analysis. Deviation form. F. The F distribution. Estimation of the mean values and predication of individual values. Pitfalls and problems in multiple regression: Multicollinearity. The coefficient of correlation: Properties/characteristic of coefficient of correlation. Topic 10: Simple Linear Regression and Correlation Analysis Scatter diagram. Limitations of Chi square. ANOVA test. One sided confidence interval.test for the slope. Interpolation verses extrapolation. Testing hypotheses about population proportion when sample size is large. Comparing two population variances. Sampling distribution of sample proportion.non-sampling error. (iii) Least squares principle. Estimation by confidence interval: Confidence interval estimate of a population mean (Known Variance). One tail and two tails tests of significance. t-test for correlation coefficient. Model misspecification. Standard methods for obtaining regression line: (i) Inspection. Goodness-of-fit test: Unequal expected frequencies. Sampling distribution of differences between proportions. Correlation and causation. t-test for the slope. Topic 11: Multiple Linear Regression and Correlation Analysis Multiple linear regression model. Two-way analysis of variance. Prediction in Regression Analysis. Estimation of multiple linear regression model with two explanatory variables by using Least squares principle. Topic 8: Chi Square Applications Introduction. Sample size for estimating population mean. Type II error. Population standard deviation unknown. The central limit theorem. Probability sampling and non-probability sampling methods. Testing of two Sample Hypothesis: Population means. Topic 7: Hypothesis Testing One sample test of hypothesis. Confidence interval for differences between proportions. Sampling distribution of the mean. Population proportions. Confidence interval for differences of means.

Un-weighted index numbers.. Levine. Michael M. Douglas A. 4. Global test. CPI versus GDP Deflator. and Krehbiel. The Basic Practice of Statistics (2nd edition). Correlation matrix. New Jersey: Prentice Hall. New Jersey: Prentice Hall. 3.Using a scatter diagram. Using deseasonalized time series to identify trend.. and Mason. Mark L. 23 . Modeling cyclic behavior using box-Jenkins ARIMA processes. 2. 2003. 2. Using regression analysis in forecasting. Smoothing the annual time series and using it in forecasting: Moving averages. Statistics for Economics Accounting and Business Studies (Latest Edition). Scenario writing. David M. Using trend and seasonal component in forecasting. Siegel.. Weighted moving averages. Chaudhry. Paul. Additional Readings: 1. Some observations on time series analysis. Boston: McGraw Hill. Component Factors of the classical multiplication time series model and their estimation: Secular trend. Exponential smoothing. 2003. 2002. William L. Producer Price Index (PPI). Boston: McGraw Hill. 5. Marshal. Qualitative approach to forecasting: Delphi method. Statistics for Business and Economics (5th edition). Qualitative independent variables. Weighted indexes. Cyclical component. Barron. Consumer Price Index (CPI). 3. New Jersay: Prentice Hall. Recommended Text books: 1. Calculating the seasonal indexes. Cyclical variation. Carlson. 4. Laspeyre’s price index. and Thorne. Multiple regressions in terms of linear correlation coefficients. Shahid. Topic 12: Applied Statistics Index Numbers. Sher Mohammad and Kamal. Application of index numbers to business and economics. Multiple correlation and partial correlation. Newbold. William G. Timothy C. Model based on monthly data. An overview of time series analysis. Moore. Intuitive approaches. William L. Boston: Duxbury Thomson Learning. Betty. Berenson.. Lind. Brian. Seasonal variation. Individual variable significance test.2000. Applied Statistical Methods for Business Economics and Social Sciences (Latest edition). Betty M. De-seasonalization the time series. Basic Business Statistics: Concepts and Applications (9th edition). Statistics for Management and Economics (5th edition). Carlson.. Irregular variation. Keller. Statistical Techniques in Business and Economics (11th edition). MarshalEdgeworth price index. Andrew F. Introduction to Statistical Theory (7th edition). Dealing with nonlinear relationship and unequal variability. Choosing an appropriate forecasting model. Nonlinear regression models. Fisher’s ideal index. The multiplicative model. Gerald and Warrack. New York. and Thorne. Issues in constructing and using index numbers. Robert D. 2004. New York: Freeman. Seasonal adjustments.. David S. Practical Business Statistics (5th edition). 2002.. Simple aggregative index. Time series and forecasting. Paaseche’s price index. Expert judgment. 2000. Lahore: Ilmi Kitab Khana. Prentice Hall.

Imam Ibn-e-Taimiah.) Saving and Investment in Islam. Welfare and Religious believes. Organization of Production and Behavioural Theories of Firms. Comparison of Islamic Economic System with Capitalism and Socialism. Utility. Topic 6: Distribution in Islamic Economy Islamic Stress on Circulating of Wealth. Morabaha. Objectives and Behaviour of Firm in Islamic Economy. Benevolence. Distributive Justice Use of Land and Other Natural Resources and their Rewards. Price Mechanism and State Role in Regulation of Markets. Topic 2: Major Economic Thoughts: Contribution of Scholars Contribution of some Earlier Muslim Scholars in the Development of Islamic Economics (Imam Abu Yousuf. Hoarding and Gains. Topic 7: Some Basic Macroeconomic Concepts Consumption. Property and Ownership Rights. Concepts of Ownerships and Implication. Economic Freedom. with respect to above cited principles / values of Islam.. Market Structure – Monopoly and Competition. Topic 1: Introduction: Islamic Economics i) ii) Nature. and Importance of Islamic Economics. Halal and Haram. Welfare and income Distribution. Investment of Savings for Gains. Concepts of Fair Trade. Imam Abu Ubaid Al Qasim. Steps against Concentration of Wealth. Topic 4: Microeconomics in Islamic Framework The Consumer Behaviour in Islam. Ibn-e-Khaldoon. Moderation. The Relative Importance of Capital and Labour. The references provided at the end of the course are just helping literature. Topic 5: The Modes of Financing In Islam Modarba and Musharka Types of Bai. Role of State in Distribution of Wealth. Brief Introduction of Basic Values of Islam. Business Ethics in Production and Marketing. Baqar-al-Sadar). Rights of Labour. ISLAMIC ECONOMICS Note: The instructor concerned may assign additional and latest literature on the subject matter. Bai Muajjal. The Concept of Equality and Efficiency. Determents of Islamic Consumption Function. Shah Waliullah Dehlvi. Priority to Basic Needs. determination of Prices and Rate of Normal Profit / Meeting of Losses. objectives. 24 . Equality. Concept to Help others. (Bai-Salam.Paper 5. Resource Allocation in Islamic Environment and Cartels. Topic 3: Islamic Economic System Silent features of Islamic Economic System. Justice. Zakat and Usher. saving and Investment Functions in Islamic Environment. Islamic Economics Versus Economics of Secular Economy and Mixed Economic System. Social Justice in Islam. Brotherhood and Cooperation as Determinants of Economic Behaviour and Policies. Taqva. optional Consumption Behaviour. Students must consult additional literature on each topic. Stockists / Wholesales.

The Tax Policy of Islam. Merits and Trade. Quality Identification of Goods. Topic 12: New Emerging Issues and Challenges Current Situation and Proposed Changes. Zaki. Business Forms. Money and Banking). Production of Goods. Topic 9: Zakat. Welfare consumption and limits. Topic 11: The Islamisation Process In Pakistan The Islamisation of Banks. Badawi. Central Banking and Monetary Policy in Islam. Social Justice and State Meaning of Zakat. Kitab ul Amwal: . References: 1. Khurshid. Monetary Policy in an Islamic Framework. 3. International Islamic University. Revenue and Expenditure Items in Modern Islamic States. Lahore (latest ed. International Centre for Research In Islamic Economics. Islamic View of International Economic Institutions and Modes of International Cooperation. King Abdual Aziz Univ. Fiscal Policy and Revenue Allocation in Islam. London. Hodder and Stoughton. Fahim Khan. Islamic Concept of Riba. Anf A. Cambridge. M. its Implications and Alternatives. Fair Prices Vs. Islamic View of Globalization. A Comparatice Study. Jeddah. Akram Ilmi Kitab Khana. Mannan. Burden of Taxes.) Macro Consumption Function in an Islamic Economic Framework. 1979.A. Design of Capital Market.Q. (latest edition). A brief Survey of Changes in Economic Structure and Conditions Since the Holy Prophet (regarding Transport / communication. Implementation of Zakat / Usher in Pakistan.. M. (1995). Books Recommended: Basic Texts: 1. Imam Abu Abaid Al-Qasim Muhammad A. Zakat as a tool in Fiscal Policy. Nisab. Ahmad. Nature of Economic Planning in Islam. Mannan M. Expenditure Principles. 3. KSA. Islamabad. Developing a System of Financial Instruments IRTI. Distributive Role of Zakat and Social Justice. Topic 10: Economic Planning and Development Concepts and Objectives of Economic Development in Islam.Topic 8: Demand and Supply of Money and Banking Gold Money. Islamic Development Bank. 2. Islamic Council of Europe. 25 . 2. Introductory Hints about items of Zakat. Zakat and Social Justice. Central Banking and Monetary Policy in Islamic Framework.H & M. Inflation Vs. Resources for Development. Islamic Economics: Theory and Practice. Market Price etc. 1986 (or latest ed. Nature and Scope of Fiscal Policy in Islamic State (Taxation Policy).A. Economic Role of Islamic State. Paper Money and Credit Money.) Islamic Economics: Dar A. Functions of Commercial Banks in Islamic Framework. Beneficiaries of Zakat. Western Justification of interest.

N. 1981. 1985. Naqvi Syed Nawab Hyder Ethics and Economics: . in Money and Banking in Islam. A case study of Pakistan. (1995). Siddiqui. Nuti. Loss Sharing Based Financial System. 15. – Zed Books Ltd. Justice: Introduction to Islamic Finance. Islamic Book Centre.. IRTI. Muslim Economic Thinking. Islamabad. Chapra. Jeddah. 17. IRTI. IRTI. Ahmad. M. Chapra T M. Umer. Jeddah. The Economic System of Islam. The Islamic Foundation. (1996). Idara-tul. Islamic Development Bank. Tariq ullah. Ahmad. Islamabad. Leicester. (2000). Tago. 9. 7. M. IRTI. Jeddah. Islamic Development Bank. Leicester. The Islamic Foundation. Monetary Policy in an Islamic Economy. 12. Yusaf . Ghazanfar S. The Economics of Participation. (2003). 11. Islamic Banking Modes for House Building Finance. Khurshid.. Medieval Islamic Economic Thoughts. Nomani. 16. (1995). Human Resource Mobilization Through the Profit. Usman.ma’arif edition. D. Farhad & Rehnuma. 1991.. Ali. Islamic Development Bank. 1979. Elimination of Riba: Institute of Policy Studies. 1994.A. 5. (1995).. Routledge Publishers. Islamic Economic Systems: London. Kita bur Kharaj. 26 . Financing Development in Islam. Mannan M. IRTI. (1996).. Haris. Khan M. 8. Practice and Performance of Mudarba. 13. Jeddah. 10. 6.4. Lahore. Institute of Policy Studies. Fahim. University of Karachi. Mahdi. Islamic Development Bank. Khan. 14. Islamic Development Bank Jeddah. Imam Abu.M.

Agricultural Adequacy. Topic 6: Poverty and Income Distribution Pattern of Income Distribution: Rural and Urban. Topic 5: International Debt and Dependency Concepts of Foreign Aid and Debt. Strategies to combat unemployment. Topic 2: Development Planning and Resource Mobilization Agricultural Development Policies and Priorities. Land Reforms and Its Impacts. 1960’s. Criteria to Measure Unemployment / Underemployment: Time Criterion. Debt Management in Pakistan and Its Impacts. Foreign Trade Promotion. Evasion of Policies / Strategies to Combat Poverty and Improving Income Distribution: Critical Evaluation. Debt Modeling and Future Implications. Borrowing Vs. Income Distribution. Employment Pattern and Unemployment Sectoral Priorities and Development Issues. Neglect of Human Resource Development. Topic 4: Sectoral Development. Human Resource Development. Productivity Criterion and New Index of Unemployment: Application to Pakistan and Empirical Evidences. Approaches. Deficits and Role of Foreign Aid. Human Resource Development and Emerging Issues: Population Growth. Industry: Development Debate. Topic 3: Agriculture and Industrial Development: Emerging Issues Pattern of Agricultural and Industrial Development. Expenditure Approach. its Role and Critical Review. Unemployment. Identification of Issues: The era of 1950’s. Good Goverence. MAJOR ISSUES IN PAKISTAN ECONOMY Topic 1: Overview of Pakistan Economy Development Experience. Major Targets of Develop Plans and Emerging Issues. Definitions and Approaches to Measure Poverty: Income Approach. Policies and Outcomes. 1980’s 1990’s and 2000’s. Industrial Development Debate. Role of Institution in Development. Social Sectors development Vs. Child Labor. and Social Action Plan (SAP) . the Role of Green Revolution and its Impacts: Present Status.Paper 6. Labor Force Participation Rate and Employment Pattern. Sectoral Terms of Trade. Forecasting Manpower Needs and Employment. Growth Strategy. Domestic Reserve Mobilization (failure). 27 . Social Action Plan and its Impact. Emergence of Economic Issues. Neglects and Successes: Mobilization of Domestic Resources. Growth with limited development in Pakistan. Debt Saving and its Impacts. Industrial Development Policies and Strategies. Structural Change and Sources of Growth. Development of Large and Small Industries. Value Added: Manufacturing Goods Vs. Deficit etc. Factors Productivity Issues. Poverty of Participatory Index (POPI). Basic Needs Approach. Rescheduling and its Impacts. Agricultural Price Policy and Income Tax. How to Combat Poverty. Agricultural Vs. Shortages. Labor Intensive Investment: Education / Training etc. Basic Needs. High Retun Sectors: Growth trade off. Debt. Unemployment and Underemployment. Primary Goods Production. Poverty. Agriculture Vs. Cutting non-development Expenditures. Size of Foreign Debt. Strategies to combat with High Debt: Saving Policy. 1970’s.

Market Access and Health Related Rates. Chaudhary M. Pakistan: The Economy at the Gross Roads – Past Policies and Present Imperatives.Human Development In South Asia. Human Resource Development and Management in Pakistan. World Bank. Trade Performance. Ferozsons. Press. WTO and Trade Liberalization in Pakistan. Ishrat Hussain. Lahore (1989). 9. FerozSons. (1989) Oxford University Press. 7. Khan. Policies to Combat Deficit and Trade Instability. (Note: Aslam M. Mahbool-ul-Haq Centre for Human Development (MHCHD). The Economy of Pakistan. Karachi: Oxford University Press. Oxford Univ. Karachi. 2. 2001-2002.Topic 7: Inflation. Recommended Books: 1. 3. Aslam and Ahmad Eatzaz: Globalization. Akbar. Issues in Pakistan Economy. Policies to Combat Inflation and their Impacts. (1999). Annual Report. Karachi (2000). Aslam.. Press. Terms of Trade Issues. 6. 8. Allied Book Centre. Saeed. Shahrukh R. Foreign Trade Deficit and Emerging Issues Sources of Inflation in Pakistan. Press. Instability and its Impacts. WTO and Its Impacts. Oxford Univ. 5. Oxford Univ. 1988. Chaudhary M. 4. Perspective on Development Planning In Pakistan. 2004. World Development Reports. Expected Impacts of WTO and Challenges. 50 Years of Pakistan’s Economy – Traditional Topics and Contemporary Concerns.. Teacher(s) must assign latest research papers pertaining to each topic) 28 . Lahore (2004). Karachi. Zaidi. Khawaja Amjad. Reforms and Further Needs. Poverty Profile of Pakistan. -------------.. 10. Lahore.

Topic 2. Relative Demand. Quota and Trade Policies Tariff and Small Country: Effects of Tariff. WTO and Gains from Technical Progress: Impacts on Prices. The Product Cycle. Substitution and Income Effects. The Role of Demand. The Optimal Tariff.O) Model. Costs.O. Growth and Trade International Trade and Shift in Production Function. Newly Industrializing Countries (NIC’s) and Footloose Production Process.Ohlin (H.T. Impacts of Tariff on Government Revenue. Equilibrium Production and Consumption: Non-traded and Tradeables. Transfer of Resources: Neutral Case. Export Opportunities. Skill and other Gains. Heckscher. Offer Curves and Free Trade Equilibrium. World Production and Gains. Impact of Tariff on Domestic and World Welfare.M. International Trade Theory Importance and Bases of Trade Why Study International Economics? The Changing World and Interdependence: Basis of Trade. Free Trade and Income Distribution.T Production and Welfare. Topic 6. Critical Analysis of Traditional Trade Theories. Immerizing Growth. The Elasticity of Exports Demand and Balance of Payment. National and World Gains from Trade. Brief Introduction of Tariff and WTO 29 . Competitiveness and Market Share. Factor Endowment and Heckscher – Ohlin Theory Output and Factors Rewards in 2*2 Model. Welfare impacts. A. Topic 5. Price and Demand for Imports. Factor Intensity Comparison. Increasing Opportunity Cost. Part II Paper 1. Supply and Pattern of Trade. International Wage differentials and Productivity. Tariff and Distribution of Income. Transfer of Resources and Transfer Problem. Gains from Migration. Dumping / Discrimination and WTO. Overview of Comparative Advantage and Pattern of Trade. INTERNATIONAL TRADE THEORY AND FINANCE A) Topic1. Product Differentiation and Monopolistic Competition. Transfer of Capital. Marginal Physical Product and Production Possibilities. Production Possibilities with Diminishing Returns. Factor’s Prices and Commodity Prices. Topic 3. NIC’s and H. Absolute Advantage. Disagreements on Free Trade: Overview of Emergency of International Trade Issues. Comparative Cost and Trade Pattern.O. Gains from Trade. Cartels and International Trade Monopoly and Import Competition. T. and Factor Intensity Reversal.T) / Deterioration: Uniform Growth at given T.O Theorem. Impacts of Rise in Exports Demand. Markets.O. Topic 4. Comparative Advantage. Technology. Output Growth and Terms of Trade (T. Factor Price Equalization. Technical Progress and International Gains. Rypecksy Theorem and its critical review. Dutch Disease and its application. WTO and Factor’s Movements and the Commodity Movement. Technology and Factor Endowment Ricardian Trade Model. The Transfer Problem: Marshall Plan and Transfers. Tariff. Multinationals Firms and Foreign Direct Investment.

Voluntary Export Restrictions and Their Impacts.O.R. Monetary Approach to B. Trade Diversion and Preferential Arrangements. Role and Major Activities of IMF.R Market.O.P: Income Absorption Approach to B. Dollar Exchange and Impacts. Topic 8.P. International Monetary Economics and Finance Foreign Exchange Market and Exchange Rate Determination Foreign Exchange Rates (F. Can Developing Countries Compete and Gain from Trade: Terms of Trade due to Demand Pattern and its Impacts.O. Managed Trade. Open Economy: Monetary and Fiscal Policy Monetary and Fiscal Policies: Internal and External Balance. Managed Exchange Rate and Critical Review of The Fiscal – Monetary Mix Models.P. Free Floating Exchange Rate. Losses of National Sovereignty. Test of Exchange Rate Instability. WTO: GATT and Emergency of WTO. Euro-Dollar.P. The Optimum Quantity of Reserves. Rate Instability.O. Fiscal Policy and Temporary Payment Imbalances. Success and Failure of WTO Agenda. A Random Walk Model of Payment Imbalances. Purchasing Power Parity. Exchange Rates and Balance of Payments (B. Why disagreement on International Movement of Labour? Welfare Impacts of Labour Movements. IMF Credit Facilities. Motive for Capital Movement: Return and Risk Diversification. Balance of Payment Effect. B) Topic 7. Efficient F.O. Speculators. Dynamic Theory of Interest and Exchange Rate.O. Loan Mechanism. Tariff and B. The Theory of Spot Exchange Rate Determination. What Counts for wage Differential Between Primary Goods Producer and Value Added Goods Producer. Growth with Protection vs. Tariff and Second Best Choice. Topic 9. Capital Flow and Speculations.P. Capital and B. Free Trade Gains and WTO.Laws.E. Monetary and Fiscal Policy with Fixed Exchange Rates. Methods dealing with undesired Short-run Capital Flow. Forward Exchange Rate Policy.P) Purchasing Power Parity (PPP): Non-Trade Goods. Topic 10. Problems of Small Country: Fixed Exchange Rate.Larner Conditions. Value of SDRs. Interest Arbitrage.R): What it represents? Real. Monetarist Critique to the Keynesian Closed Economy Model.P. Subsidies and Quota. The Marshall.E. Monetary Policy and Permanent Payments Imbalances.O. Critical Review of the Modern Theory and Adjustment Mechanism. Why necessary to Join WTO? WTO: Expected Impacts 30 .O. Effects of Stabilization Policies.P. Impacts of F.O.E. Hedgers and Traders. Introduction of International Institutions. B.O. Voluntary Quota. International Institution: Trade. Interest Parity Theory. Empirical Tests of Monetary Approach to the B. WTO and B. Quantitative Restrictions. WTO: Injury. Optimum Interest Rate. Determinants of Foreign Exchange Rate.O. B. Competitiveness Issue. International Movements of Factors and Welfare: Impacts / Issues Facts on International Capital Flow: ASEAN Crisis and Role of International Institution and Criticism. Anti-dumping Duties. Elasticities of Exports and Imports and Impact on B.P Support.P Support and Stabilization. Role of IMF in B. Nominal and Effective Rates.P Support. Topic 11. Factors of Production and Price Equalization Issues. Forward Exchange Market. Adjustment with Short-run capital Flow.

World Economic Forum. Krugman and Obstfeld. London. International Economics.on Trade.P.. 31 . how much and how long? Centre-Periphery Theory.. Little Brown and Company. Issues relating to the Contributions of International Financial Institutions and Their Evaluations. Donomick Sal Vatore B. McGraw Hill Book Company. Caves Richard.P Deficit. Liberalization and B... 2. Pugel. Brown and Company. International Economics. Honewood. Boston. World Bank. The Global Competitiveness. New York. Are Free Trade Gains more than Restricted Trade? Gains for whom. New York. Latest Editions. B.. Oxford. (Latest Edition) Richard D. Prentice Hall. 5.. Little. World Trade and Payments: An Introduction. 1986. Grubel Herbert C. Illinois. 6. Terms of Trade Issue. (1994). Why necessary to Join WTO? WTO: Major Trade Rules and Their Expected Impacts on Trade. Sodersten B. Anti-Dumping etc Rules and Emerging New Issues and Their Impacts. International Debt Problem. WTO Rules: Sanitary. Topic 12. Toronto.. Toronto. 3. Dumping. and Jones Ronald W. (1985). Major Contemporary International Economic Issues: WTO: GATT and Emergency of WTO. World Development Report. Lexington Books. Peter Holinder & Thomas A. Is there need to Reform International Institutions? Monetary Integration and Their Impacts. and Geoffry Read. Phytosanitary. Oxford University Press. and Richardson David J.. Basic Readings: 1. Additional Readings: 1. Free Trade will it be? Issue of “Are Free Trade Gains more than Restricted Trade”? Emerging Regional Trading. Toronto. 8. Chacholiades. International Economics (Latest Edition). Oxford University Press.O.. 3. MacMillan Press Ltd. (1986). Competitiveness and Trade Stability: World Income Distribution and Free Trade. Boston. Blocks. 9th Edition 1996. Miltiades. Baldwin Robert L. International Economics. Special Status of Developing Countries and Net Food Importing Countries. 4. Moran Theodore H. Special Preference and their Impacts. Report 1999. Irwin Inc. International Trade and Finance. Massachusetts. 2. International Economics: Theory and Policy. Addison Willey (1998).O. Protections under WTO Rules. Multinational Corporations: The Political Economy of Foreign Direct Investment. International Trade Theory and Policy (Latest Edition). 7. E. WTO and Fair Trade / Free Trade.. Growth and Competitiveness. Issues of Developing Countries: Level of Development.

Topic 6: Forecasting with a Single Equation Regression Model What is forecasting and what are its various types? Important features of a good forecast. Econometric models vs. 32 . Exogenous lagged variables. Computation of elasticities and standardized coefficients Using R2 as a measure of ‘Goodness of Fit’ and some roblems with its use. Remedial measures for Multicollinearety problem. Testing the significance of the model as a whole. Topic: 4 Heteroskedasticity What is Heteroskedasticity and what are its causes? Consequences of Heteroskedasticity for OLS estimation. (b) The Multiple Linear Regression Model (MLRM) Estimation of MLR model by OLS and its assumptions Interpretation of estimated coefficients and their economic meanings.Paper 2. (d) Evaluating an Estimated Linear Regression Model Testing the significance of individual coefficients. Estimation from grouped data. Grouped Data. Endogenous lagged variables. Variance of unconditional forecast error. estimation. verification or evaluation and forecasting. Dummy variables.Methods for detection of Heteroskedasticity. Remedial measures for Autocorrelation. Topic: 5 Autocorrelation What is Autocorrelation and its Causes? Consequences of Autocorrelation for OLS estimation. (c) The General Linear Regression Model (GLRM) Estimation of GLRM by OLS through Matrix Approach Var-Cov matrix of estimated coefficients. Time as a Variable. Statistical models Ingredients of econometric modeling Specification. Topic : 3 Multicollinearety What is Multicollinearety? Distinction between perfect Multicollinearety and less than perfect Multicollinearety (Multicollinearety problem). Dummy Variables. Lagged and Distributed-Lag Variables Errors in variables. Topic 7: Errors in Variables. ECONOMETRICS: THEORY AND APPLICATIONS Topic 1: Introduction Definition and scope of econometrics. Methods for detection of Autocorrelation. Topic 2: The Classical Linear Regression Model (a) The Simple Linear Regression Model (SLRM) Estimation of SLRM by Ordinary Least Squares (OLS) Interpretation of Estimated Coefficients and their Economic Meanings. Variance of conditional forecast error. methods for detection of Multicollinearety problem. Remedial measures for Heteroskedasticity. Consequences of Multicollinearety problem. Measures for evaluating the forecasting power of a model. Time as a variable. Methods of estimation of lagged models.

R. Identifying restrictions. 5. 8. Gujrati. (3). issue 1. (1999). Techniques and Applications. 1978 . 3. A. D. 4. Econometric Journal. Checking the identification state of a model or of a particular equation in the model by Order Condition. & Kim 10. Maddala. 675-712. Gunnar. 33 . 483-507. 9. 24. Memory Parameter. 1978 Econometrics. Research Articles: 1. pages 76-96. Two-stage Least Squares Estimation. Don Andrews (2003).J. 5.S. 1978 Econometrics. G. 1992. Griffiths. E. (2). Latest edition. New York & Wonnacot. Vol. Wonnacot. Topic 10: Consistent Estimation of Parameters of Simultaneous Equations Models Indirect Least Square Estimation. bogus equation and reduced from approaches. Madnani. Econometric Theory. McGraw Hill. Vol. Formal rules for identification. Topic 11: Varying Coefficient Models: Causes of Coefficient Variation. Intrilligator Johnston. 1998. Koutsoyiannis. 3rd Edition. 2. Cambridge University Press. 4.Topic 8: Identification The problems of identification. A Bias-Reduced Log-Periodogram Regression Estimator for the Long Run. Systematically Varying Coefficient Models. 7. Introduction to Econometrics Principles and Applications. Suggested Books: 1. Implications of the identification state of a model. Randomly Varying Coefficient Models. Identification and methods of estimation. Tests for identifying restrictions. The Theory and Practice of Econometrics. J. Dummy Trap and its detection. Abadir and Jan R. Co-integration and Structural Change. Empirical Economics. 1984 Theory of Econometrics. 2. Magnum (1993) OLS Bias in a Nonstationary Autogregression. Econometric Models. Economic theory and econometric dynamics in modeling wages and prices in the United Kingdom. N. 1993 Econometric Model. Abadir (2002) Notation in Econometrics: a proposal for a standard. J. Instrumental variables method of estimation. New York. ” McGraw Hill. Unit Roots. Bardsen. John Wiley. Pindyck & Rubenfeld 9. Comparison of forecasts based on ARIMA and Regression Models. McMillan. Topic 12: Time Series Econometrics ARIMA Models. McGraw Hill.K Basic Econometrics . J. 3rd Edition. 6.M. McGraw Hill Inc. issue 1. Judge. The identification problem. 3. Identification and Multicollinearity. John Willey and Sons. Printice Hall. Unit Roots and Co-integration. J. (Latest Edition) Econometric Models & Economic Forecasts. Topic 9: Simultaneous Equations Models Why Simultaneous Equation Models? Various Types of simultaneous equation Models. 71. Maddala. pages 81-93. Econometrica.

Stephen. Estimation of Limited Dependent Variable Models with Dummy Endogenous Regressors: Simple strategies for Empirical practice. (2). Review of Economic Studies. (1992). Estimating End Use Demand: A Bayesian Approach. 221-31. 19. 59. 12.5. (2001). 34 . Bonal. 6. 277-97. 2-16. 8. Roy. (1991). Joshua. Some Tests of specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equation. (1). (1994). Journal of Business and Economic Statistics. 7. 537-59. Luc. Bauwens. Review of Economic Studies. Journal of Business and Economic Statistics. Female Labour Supply and On-the –Job Search: An Empirical Model Estimated Using Complementary Data Sets. Angrist. Arellano. 58 (2). Manuel. (3).

Debt buy back etc. Characteristics of LDC’s. and Employment generation Strategies/Techniques. Structuralist’s View Point. Transforming Agriculture. Lewis’ Model of surplus Labor. Provision of Input. Aid / Assistance Why international borrowing? Two Gap Model. Topic: 4 Population. Underemployment problem. Need for Industrialization. Aid commitments and disbursement. Why the whole world is not developed? Topic: 2 Major Theories of Development - Classical and Neo-classical Theories. Scope and Significance of Development Economics. Per Capita Income approach. Debt Burden: Debt Servicing. Debt rescheduling etc.. and Competitiveness. Stages of Economic Growth. Dependency Theory. Green Revolution and it’s Performance. Agriculture and Industry Topic: 3 Agriculture vs. Students must prepare critical review of topics.. Balanced and Unbalanced Growth. saving mobilization/Domestic resource mobilization. Debt Modeling and Forecasting Future Implication. Vicious Circle of Poverty. food.Paper 3. etc. Debt Overhang and threat to growth. Market Friendly Approach. Problem of Sectoral Dualism. Debt Problem of LDC’s and South Asia. Debt Cycle Theory/Stages. Historical overview of world development and emerging major issues pertaining to Less Developed Countries (LDC’s). Why Green Revolution? The Spread of Green Revolution in Pakistan and its Status / Contributions. Industrialization and its financing mechanism. Quality of Life Index / HDI etc. Productivity Criterion and New Index etc. Each topic must be prepared and analyzed critically. Big Push Theory. Land Holdings. Part B: Topic: 5 International Development Issues and Debates International Debt. Latin American Debt Crises. Income Convergence/ Divergence. Role of Agriculture: Market for Industrial Output. ASEAN Crises. Debt laffer Curve. Any aspect of the topics may be asked in the examination. The course content provides a guideline. Part: A Topic: 1 Theoretical Foundations and Sector Specific Issues: Scope and New Developments Definitions: Economic Development and Growth. Human Resources as a source of growth and their contributions. 35 . New Growth Theory. Industry: Development Debate. Adam Smith and Competitive Capitalism. Models of Employment & Unemployment: Time Criterion. productivity growth. Endogenous Growth Theory: New growth Theory. Sources of borrowing. Education and Human Capital Demographic Transition. Measurement of Economic Development and Growth. At least two research papers pertaining to each topic must be comprehended. Investment in education and returns. Rains’ Fei Model and its critical review. Complementarity. Identification of Development variables. DEVELOPMENT ECONOMICS: THEORY AND POLICY Note: Students are expected to study latest editions of the recommended books. Terms of Trade Issue and Subsidies. Policies to combat debt problem: Forecasting debt and solution for debt burden.

Trade Instability. Poverty Indicators. Long term cost of TNC’s. International awareness about environment. Industrialization and its environmental cost. Topic: 8 Poverty and Income Distribution Definitions and Measurement of Poverty/Poverty Line. Role and Contributions. Aid. Global integrated production system: TNC’s and Globalization.Topic: 6 WTO. Deforestation and Renewable Resources. Growth and Income Inequality in the world. Natural resources degradation. Redistribution with growth. Income approach. production and need for Reforms. Use of Pesticides and Environmental Impacts. WTO and LDC’s. Absolute Poverty. (1992. Basic Needs. Poverty by socioeconomic groups. Liberalization and International Trade Trade vs. Poverty concepts/definitions. Foreign Exchange Constraints and Balance of Payment deficit. 36 . and Lall. eds). Economic thoughts and Environment. Technology Centered Development and Appropriate technology issue. Economics. Deforestation and Macroeconomic Environment. Regional Trade Associations (RTA’s): their role and contributions. 2. A. London.. Kaldor’s Model of Distribution. S. Basis for trade and benefits: Gains from Trade: Static and Dynamic Gains. (1999). impacts and policies to combat poverty. Ecology and economic progress. Determinants of exports growth. Lahore. Transfer of Technology: Ways and Means. Recommended Books: 1. Joan Robinson’s Model of capital accumulation. Topic: 10 Growth Models Harrod-Domer Model. Measuring environment values. Comparative Advantage. International Agencies: Environmental concerns and programs. Relative Poverty. Sources. Foreign Direct Investment (FDI) and TNC’s. Basic needs approach. Aslam and Hamid.. Market Based Approach and Externalities. Topic: 7 Transnational Corporations (TNC’S). Product Cycle. Role of GATT and its Failure. Expenditure approach. Trade as an engine of growth. Model of Steady State Growth. Revealed Comparative Advantage and Competitiveness. Ferozsons. Sustained development. Topic: 9 Environment and Development Model of Environment and Economic Activity. Liberalization of Trade and its impacts/gains etc. Current Issues in Development Chaudhary M. Distribution of gains from Trade liberalization. Saving-Investment and Golden Rules. Balasubramanyam V. Technical Change and growth Model. Human Resource Development and Management in Pakistan. Poverty of Opportunities Index (POPI) and Calorie-based approach etc. Cost of Pollutions/Environmental degradation. Urbanization and environmental issues. Empirical evidences on poverty. Transfer of Technology: Sources & Need. McMillan . Foreign Direct Investment (FDI) and Its Determinants/Role. Flow of FDI and its contributions. How to combat income inequality. Strategies and tools to combat poverty. FDI and Development Transnational Corporations (TNC’s): Objectives. Social Action Programs and Poverty alleviation.

37 . London/New York. 14. Yale University. Human Development Reports . Empirical Investigation (Latest Issue). 7. Chenery H. (Latest Issue). 12. 13.. 1998/99. 1994. Routledge. Annual Reports. A Profile of Poverty In Pakistan. Palgrave Publisher. 4. 1987.). Ghatak Subarta. Press.* vol.P. Jones H. Introduction to Development Economics. 2000/2001 and 2004. 8. With Special Reference to Developing Economies 7th edition.. P. The Process of Economic Development. 6. London/New York. Oxford University Press. Latest Edition. 1990. Economics of Development. (2004). Van Den Berg H.. (1960). Growth and Development. World Development Reports. Todaro M. and Dietz James L. Cypher J. 1986.). (Latest Edition). William.3. 1992. Herrick B. Harper and Row Publishers. World Bank... and Kindleberger C. Taylor and Francis Group. London/New York. G. Easterly. Human ------------. Islamabad.. Mahboob-ul-Haq Center for Human Development (MHCHD). (2003). A Case Study of Pakistan. (latest eds. and Srinivasen. Amsterdam (1988. McMillan. (2001). Routledge. 15. 5. Leading Issues in Economic Development. Development in South Asia. Yotopolous Pan A. M. B. Thirlwall. 16. 9. (2003). Annual reports. and Nugent Jeffery B. Meier Gerald M. New York. Annual Reports. 11. North Holland.. Strategy of Economic Development. World Bank. A. McGraw Hills. Tayl or Francis Group. Economic Development.. Growth without Development. eds.* McGraw Hills. Heinemann. Economic Development in the third World. I & II. 10. 17. 1991. UNDP.. Hirshman A. (In Collaboration with UNDP). 1995. An Introduction to Modern Theories of Economic Growth. O. London. 18. Hand Book of Development Economics.(1999). Economic Growth and Development.

Report Writing. Kidder Louise H. Boston. Preparation of Research Proposal Questionnaire.. Field Research Designs. Use of Secondary Data. Vision survey and communication techniques. P. data. Tabulation. Thinking. Prentice Hall Inc. Observation Designs. Interviewing by mail. 9. Scientific Social Survey and Research. Methods of communication in survey. Lawrence. Young Pauline V. the Nature of Scaling. The drydem Press. A Skill Building Approach. Zikmund William. Writing and editing of research Report. Basil Black Well. Experimental Research Design. Inc. the Survey Situations. Glenew Research Methodology for Economists: Philosophy and Practice. Types of Secondary Data Sources. Organization of Research Paper. the process of field research. and Grout P. Art of asking questions and getting quality information. Evaluating Secondary Data. Statistical Sources. Empirical and theoretical research. (latest edition). the Development of Measurement Tools. Measurement and Scaling. Experimentation and Simulations. the Use of Secondary Data. Field Procedures. the Nature of Sampling. Experimentation and Simulation. Observation. 38 . G. and Data Analysis. Scale Construction. (1992). Sample Design.Paper 4: RESEARCH METHODOLOGY Importance of Research Methodologies. Data Collection Methods. 8. Business Research Methods. 2. the Characteristics of Sound Measurement. Choice of Research Technique. Mathematics for Modern Economics. Data Preparation. the Questions and analysis of Research Proposal. Lambert. Sekarn. Neuman W. Research Methods in Social Relations. Identification of problem/issue. Holt. Data collection. Research Report Format. How to format and Write country Research Report. 6. Theory and basis of research. Simulation. Herifaq Publishers. Data Presentation. Exploratory Research.. McMillan Publishing Co. Sckaran Business Research Methods Uma. Research Methods for Business. Questionnaire Development. Observation. 4. Survey Instruments and Field Procedures. Special Data Problem. New Delhi. Qualitative and Quantitative Approaches. Tokyo (Latest edition).. theory and estimation and related problems. the Nature of Secondary Data Sources. Data Presentation and Analysis: Elements of Analysis. Research techniques in social sciences and their limitations. Allyn and Bacon. Johnson. (1994). Stages of research process. (1997) Social Research Methods. 7. 5. Casual Inference.. 3. Recommended Books: 1. Holt-Sounders Japan Ltd. Measurement. (Latest edition). 10. Conclusion and its basis. Static and Dynamic Optimization. The Research Report. the Instrument Development Process. Scaling. (latest edition). Evaluation of Research Work. Survey Instrument Designs. Executive summary and abstract of a report. observations. Personal Interviewing. Vision Survey: Interpretation of Replies.. Birchenhall C. Telephone Interviewing. (1985) Advanced Mathematics for Economists. Response Methods. Measurement Scales. John Willey & Sons. Rinehart and Winston. Data Research Procedures.

Solution of First Order Linear Differential Equation with Constant Coefficient & Constant Term and its Verification. Complex Roots. Investment & Capital Formation. The Dynamic Stability of Equilibrium. Non-linear Differential Equations of the First Order and First Degree. A Market with a Price Ceiling. Economic Applications – The Cobweb Model. Definite Integrals. A Market Model with Price Expectations. Inflation 39 . The Nature of Indefinite Integrals. Topic: 6 Higher Order Difference Equations Solution and Verification of Second-Order Linear Difference Equations with Constant Coefficients and Constant Term-Distinct Real Roots. Exact Differential Equation. The Convergence of the Time Path. Repeated Real Roots and Complex Root Cases. Samuelson Multiplier-Acceleration Interaction Model. Circular Functions. The Interaction of Inflation and Unemployment. Solution and its Verification of First Order Differential Equation with Variable Coefficient and Variable Term. Economic Applications of Integrals – Finding Total Functions from Marginal Functions. Topic 2: Integral Calculus Dynamics and Integration. The Substitution Rule and the Rule of Integration by Parts. Separable Variables. Homogenous & non-Homogenous Cases. types of Time Paths and their Dynamic Stability. Present Value of Cash Flow. Discrete Time: First Order Difference Equations Solution and its Verification of First Order Difference Equations. A Definite Integral as an Area Under a Curve. Economic Application: Dynamics of Market Price. Nonlinear Difference Equations – The Qualitative-Graphic Approach. Basic Rules of Integrations & Rules of Operation. Repeated Real Roots and Complex Roots cases. A Market Model with Inventory. Bernoulli Equation.1: ADVANCED MATHEMATICAL ECONOMICS Topic 1: Complex Number and Circular Functions Imaginary and Complex Numbers. Concept of Phase Diagram. Economic Applications. Solution of Higher order Differential Equations with Constant Coefficient and Constant Term. Properties of Sine & Cosine functions. Dynamic Stability of Equilibrium. Major Properties of Definite Integral. Alternative Representation of Complex Numbers. Domar Growth Model. Economic Application: Solow Growth Model. Phase Diagrams Types of Time Path. Improper Integrals. Topic: 4 Differential Equations: Higher Order Differential Equations Solution and Verification of Second order Linear Differential Equations with Constant Coefficient and Constant term-Distinct Real Roots. Eular Relations. Topic 3: Differential Equations: Continuous Time: First Order Linear Differential Equations Meaning and Definition. Topic 5: Difference Equations.OPTIONAL PAPERS Paper 5. Present Value of a Perpetual Flow. Convergence and the Routh Theorem. its Solution and Verification. Economic Applications. The Qualitative Graphic Approach.

C. Introduction to the set of Mathematics in Economic Analysis Graphical Approach. 6. Mathematical Analysis. Convergence and Schur Theorem Again. Mathematics for Economics Schaum Series. New York. Mathematics for Economists.. Interpretation of Kuhn Tucker Condition. Livermois J. S. An introduction to Mathematical Methods in Economics McGraw Hill. Recommended Books: 1. Stengos T.and Unemployment in Discrete Time. Least Cost Combination. Simplex Method. Topic 7: Non-Linear Programming The Nature of Non Linear Programming Non-Linearities in Economics.. 3. 40 . London. National Income and Social Accounting London. Hoy M. Business and Economic Application (latest edition). 2.G. Economic Application of linear Programming N-Y John Wiley and Sons. Fundamental Methods of Mathematical Economics McGraw Hill (3rd Edition) 1984.. Addison0Wesley Publishers limited. Arrow Enthoven Sufficiency Theorem: Quasiconcave Programming. Mathematic for Economics. latest edition. Additional Readings: 1. Kuhn Tucker Condition. Haung David. 1996. 4. Harper and Row Publishers. 7. 2. The Solution of Simultaneous Differential Equations. Macmillan English Language Edey & Peacock. Economic Application-Utility Maximization. Jean.. Rees R. Higher Order Linear Difference Equations and their Solutions. Dowling Edward T. 3rd Edition. Weber E. Allen R. Taro. Solving a Nonlinear Program via the Kuhn-Tucker Conditions. Chiang A. Mathematical Economics. Hutxchinson University Library.D. 5. 1981. latest edition. Book Society. Kuhn Tucker Sufficiency Theorem: Concave Programming. Yamene. Glass Colin J. Prentice Hall.

Paper 5. SPSS. Creation and Modification of Chart. New Dehli (2001). Gimi. Data Transferring. Topic 5: Computer Applications: Demand – Supply & Equilibrium Estimation of Demand and Supply using E-View / SPSS. Composing Models and Mathematical Equations. Estimation and Improving Model Estimates: Autocorrelation. Estimation of Economic and Social Benefits. Computer Applications and Programming. MS-Word. Publishers. Interpretation of Computer Output. Internet Explorer. Selection B. Analysis of Variance. Topic 6: Model Building and Estimation Building Simple Econometric Models and Estimation. Simple and Multiple Regression Analysis. Constant Elasticity Production Function etc. E-View to Estimate Production Functions. Mastering Microsoft Office XP Premium.2: APPLIED ECONOMICS AND COMPUTER APPLICATION Topic 1: Introduction to Windows 2000 and Ms-Word Operating System. Command Syntax Printing. USA (latest edition). Performance Management. Topic 3: SPSS and E-View Menu. Desktop Management. 41 . Topic 2: PowerPoint and MS-Access (XP) Database Concepts. E-mail. Word Macros. 4. Data Editor Printing. 2. Recommended Books: 1. Line Area and Pie Chart. Har Brace Jovanovich Inc. Use of E-view for Model Estimation. Multiple / Simultaneous Equation Model.B. using Advanced Formatting Features. Project Appraisal Using E-View etc.. Estimation with Qualitative Variables Confidence Interval and Hypothesis Testing. Estimation of VAR and ARIMA Models. Carter and Annette. Estimation of Cost Functions and Decision Making. Topic 7: Project Appraisal and Computer Application Use of Computer Programming (Softwares). Estimation of Simultaneous Equations. Cob-Douglas Production Function. Topic 8: Econometric Analysis and Computer Applications Regression Functions. Data Editing / Updating. Printer Management.F. Marquis. File Linkages. Formatting Reports. Data Analysis. (Learning help available with package (software)). Data Retrieval. 3.. Dialog Boxes. Aggregate Demand – Aggregate Supply and Equilibrium. Output Navigator Printing. with Karl Browning. Topic 4: Estimation of Production Function Use of Computer. SPSS-Manual. Estimation of Present Values. Tool Bars. E-View etc. File Linkages. Single Equation Models.P. for Cost-Benefit Analysis. E-View Manual. D. Robertson. Sharing data with Word.

A. Single-item N-period dynamic model and N-period production scheduling model.. Topic 5. single period models and multi period model. Topic 6.. 42 . Bunday. The Assignment model.(c)Degeneracy. Brian D. (b) Probabilistic Models: A continues review model. determination of critical path and floats Construction of time chart and resource leveling. “Basic Linear Programming. 2002.3: OPERATIONS RESEARCH (OR) Topic 1. Examples of dynamic programming models and computations. Probability and cost considerations in project scheduling. Topic 2. Solution of the transportation problem. Topic 7. Alternative optima. 2. 1984 .” 1st edition. 2001. Billy. Linear Programming Meanings and objectives of Linear Programming Models. 3. “Operations Research An Introduction. Types of inventory model: (a) Deterministic Models: Single-item static model. Dynamic Programming Elements of the Dynamic model. solution and application of assignment model. Prentice Hall. “Introduction to Operations Research. Arrow diagram representation.Edward Arnold. Introduction History. E.Paper 5. unbounded solutions and Non-existing solutions. The transshipment model.” 7th edition. Formulation of generalized inventory model. Project Scheduling By Pert-CPM Meanings and purposes of Project Scheduling. Solutions of linear programming problems: (a) Graphical approach (b) Algebraic solution (Simplex method. Topic 3: Duality and Sensitivity Analysis Definition of the dual problem. Primal Dual relationship Economic interpretation of duality. Project control. Formulation of Linear Programming model/problem. Books Recommended: 1. Discussion on different types of Operations Research models. Meanings and introduction to Operations Research. ” 1st edition. McGraw hill Hamdy Taha. Art of modeling and phases of Operations Research. Gillet. Inventory Models Meaning and objectives of Inventory model. Topic 4: Transportation Model Definition and application of the transportation model. Sensitivity Analysis. multipleitems static model with storage Limitations. M-technique and two-phase method). single-item model with price breaks.

Fryer M. WAYNELWINSTON. Anthena Scientific. 2001. Wiley. ” 1st edition. 2002. Wagner. Reference Books: 6. PAUL-A-JENSEN & JONATHAN F. DIMINTRICS BERSIMAS & JOHN N TSITSIKLIS. 1975. McGrawhill. McGraw hill. 7.. 8. 2002. 10. Edward Arnold. “Operations Research Application & Algorithm. Prentice Hall. 9. 5. “Operations Research Models and Method.” 2nd edition.J “Introduction to Linear Programming and Matrix Game Theory”.J..4.M. “ Principles of Operations Research. “Introduction to Operations Research. 43 . ” 1st edition. Duxbury Press. Gass M. ” 3rd edition 1994. Hillier and Lieberman. 1st edition 1978.BRAD. “Linear Programming Methods and Application. ” Introduction to Linear Optimization” 2nd edition. Harvey.” 7th edition. 1997.

Maturity & Volatility of Bond Returns. Definitions of Money. Topic 3: Demand for Money Quantity Theory of Money. Central Bank as a lender of last Resort. Advantages and Disadvantages and Impact Analysis of each Policy Tool. Portfolio Theories of Demand for Money. M2. Monetarist views of Equilibrium Output. Required Reserve Ratio. Topic 8: Monetary Policy in International Framework 44 . Monetization of Public Debt. Baumol – Tobin Model of Cash Management. Classical Dichotomy and Keynesian Integration of Nominal and Real Sectors. The Risk and Term Structure of Interest Rates. Understanding & Measuring the Interest Rates.Paper 6. Velocity of Money and its variability. Friedman’s Restatement of Quantity Theory of Money: Empirical Evidence on the Demand for Money. Real & Nominal Interest Rates. The Behavior of Interest Rates. Topic 2: Role of Money in the Economy Debate on neutrality and non-neutrality of Money. Keynesian Vs. Transaction Theories of Demand for Money. M3. Infectiveness of Stabilization Policies. Portfolio Choice: the Theory of Asset Demand. Friedman’s Modern Quantity Theory of Money. Targeting interest rate and inflation. Tools of Monetary Policy: Three Major Tools of Monetary Policy. Definition of Money Function of Money & Measurement of Money. Theories of Interest Rate Determination. Cost – push Inflation. Topic 6: Money & Interest Rates Determinants of interest rates. Keynesian Liquidity Preference Framework. Inflation as a Monetary Phenomenon The Philips Curve and Accelerating Inflation. Inflation in Pakistan: Sources and Managing Policies.1: MONETARY THEORY AND POLICY Topic 1: Introduction and Development Of Monetary Mechanism Evolution of Money and Payment System. Explaining Depositor and Bank Behaviour: the Complete Money Supply Model. Stagflation & Hyperinflation. Determinants of the Money Supply: Exogenous and Endogenous. Demand for Money & Supply of Money. Employment and Prices. Money in Aggregate Demand & Aggregate Supply Analysis. Independence of Central Bank and its role in Economic Growth. Role of Money in the IS-LM Framework. Regressive Expectation Model. Policies to Combat Inflation in Pakistan. Money Multiplier. The Distinction Between Interest Rates and Returns. Financial Intermediateries. Tool of Central Bank for Money Control. Kinds of Interest Rates. Topic 4: The Money Supply Process Monetary Base. L etc. Sources of Inflation in Pakistan: Spiracle Evidences. Discount Window Loans and Open Market Operation. Multiple Deposit Creation: Introducing the Money Supply Process. Understanding Movements in the Monetary Base. The Conduct of Monetary Policy: Goals and Targets. Monetary Base. Topic 5: The Conduct of Monetary Policy: Central Bank Structure and Functions of Central Bank. Topic 7: Money and Inflation What is Inflation & Causes of Inflation? Demand – pull Inflation. M1.

Evidence and Problems (Fourth edition). and David VanHose. (1989). Patinkin Don. Money. (Sixth edition). Inflationary Spiral. Fredric S. Recommended Books: 1. Exchange Rate and Balance of Payment. Harper & Row Publishers. Publishers. Interest and Prices. R. Current Issues in Monetary and Financial Sector Reforms. The Economics of Money. New York. Financial Markets and Money. (2000). Miller. Vanish K. Frederic S. Theory and Policy. 5. New York. Bennett T. Managed Exchange Rate System and Monetary Policy. Addison Wesley. Vikas Publishing House. (2001). Harper & Row. Mishkin. Targeting Inflation. The Demand for Money: Theories. Targeting exchange rate. 6. McMillan. 45 . 2.. Monetary Theory.W (1996). 3. Monetary Economics. Effectiveness of Policy. Banking & Financial Markets. 4. L. McCallum. Banking and Financial Markets. Laider. Conduct of Monetary Policy in Fixed and Flexible Exchange Rates.O.P and Exchange Rates. (1995). Mishkin. Money in Growth Models. Impact of Reserves on B. Singapore. Delhi. Harper and Row Publishers. Money.. David E. (2001). (Latest Edition). South Western. 7. Perfect Mobility of Capital and Money Control.Money Demand and Empirical Evidences.

Excise and Custom Duties. Decreasing Costs of Production. Income and Sales Taxes. Tax Efforts and Tax Collection Performance in Pakistan. Microeconomic Vs. Topic 3: Public Revenue and Taxes The Economic Case for the Public Sector to Allocate Resources: Market Imperfections. Topic 4: The Theory of Public Goods Public and Private Goods. Pure Public Goods. Non-Exhaustive Public Expenditures. Progressive. Determinants of Tax Shifting under Partial Equilibrium Conditions. Income Elasticity of Government Expenditures. Topic 9: Inter – Government Fiscal Relations Fiscal and Economic Aspects of Federalism.2: PUBLIC SECTOR ECONOMICS Topic 1: Introduction and Role of Public Sector The Economic Functions and Public Goods: Allocation of Resources. Export and Import Taxes. Kinds of Budget. Should Public Sector be Produced Vs. Tax Vs. Deficit and Balanced: Preparation of Budget Cycle in Pakistan. Collection of Revenue and Provincial Share and its Distribution Criteria. Redistribution of Income and Wealth and Stabilization. Wagner’s Law. Topic 8: Fiscal Policy: Public Expenditure and Budget Theories of Public Expenditures. Deficit Financing and its Impacts. Components of Public Expenditures in Pakistan. Macroeconomic Regulatory Taxes. Cannons of Taxation. Average Tax Rates. Tax Rate Relationship. Optimum Tax and Revenue Collection. Non-tax Revenues. Exhaustive Vs. Impacts of Tax Shifting on Price. Regressive and Proportional Taxes. Topic 7: Tax Shifting and Incidence General Equilibrium Vs. Pricing Public Goods. Federal – Provincial Fiscal Coordination. Topic 2: The Theory of Public Goods Fiscal Principles and Concepts: The Traditional Principle of Tax Neutrality is Expended Principle of Fiscal Neutrality. Income Elasticity of a Tax Integral Fiscal Non-Neutrality.Paper 6. Topic 6: Tax Structure of Pakistan Various Kinds of Taxes and their Objectives / Performance in Pakistan. 46 . Marginal Propensity to Tax and Marginal Vs. Planning. Surplus. Tax Reforms in Pakistan and their Impacts. The Optional Income Tax Approach. Merit Goods. Sources and Direction of the Growth of Public Expenditures. Pricing Decreasing Cost Industry. Externalities and Public Policy. Zero Based Budget. Programming Budgeting System. Development and Non-Development Budget and its Patterns. Private Goods? Semi Public Goods. Public Goods and Externalities. Partial Equilibrium: Tax Incidence Analysis. Efforts of Public Expenditures. Free Rider Problem. Topic 5: Distributional Equity in Taxation The Ability to pay and Economic benefits (received). Tax Base.

). Debt Modeling and Forecasting Debt Needs. Islamabad.. McGraw Hill. Tax Structure of LDCs. 47 . Ricardian View of Public Debt. Bernard P. Topic 11: Public Debt Need and Burden of Public Debt: Domestic and Foreign. of Pakistan. Fiscal Policy in Pakistan and its Impacts. Stiglitz E. 5. Musgrave (Latest Eds. Problem of Debt Servicing. Herber. Economics of The Public Sector. Chellieah R. 3.. 7. Economic Advisory Wing. Fiscal Policy in Less Developed countries. Recommended Books: 1.P. (1996). Public Finance. David N. Hyman. W. and B. Debt Modeling and Offer Curve. (1999). 6. W. Norton & Co. Economic Survey. Public Finance in Theory and Practice.J. McGraw Hill. Govt. 2.Topic 10: Development Finance Fiscal Policy in a Developing Economy. Ministry of Finance. (1999). Rosen and Harvey S.A. Public Finance. 4. (2000). Yearly Publication. Structure of Public Debt in Pakistan: Internal and External Debt Problem of Pakistan. (Latest eds. Modern Public Finance.. Musgrave R. A Contemporary Application of ---. Role of Deficit Financing. Harcount Brace College Publishers. Optional Debt.).

Topic 6: Cost Effectiveness Analysis Areas and elements of analysis. 4. Bond market. Wesley publishing Co. Topic 4: Comparing Project Costs and Benefits (Measuring of a Project Worth) Undiscounted measures of project worth. Discounted measures of NPW. & D. London. Hughes. (1997). Arnold. BCR. Donald.. Project Vs. Limitation of analysis. Choice among mutually exclusive alternatives. Economic benefits and selection of projects. IRR. Cross over discount rate. Stock Prices. Contours and Dimensions of a project and its essential ingredients. Change in relative prices and inflation: Shadow Prices and economic analysis. Suggested References: 1. Aspect of project appraisal with a special focus on economic versus financial analysis. Speculation and Inter – relationship of financial and real variables in the economy. Security Analysis and Portfolio Management. Categories of Costs and Benefits. Finding market prices and related problems. 48 .3: INVESTMENT AND PROJECT APPRAISAL Topic 1: Introduction Meaning of Project Appraisal. usefulness and significance. (1996). non-banking financial institution. Present Worth.. A. Social vs. Development financing. International Investment. 2. Financial intermediaries. Project Cycle. Fischer. Addison. Interest rate.. Financing the industrial sector. Real and financial investment. E. Domestic resource cost of foreign exchange earning / saving.J. Bruno Solmik. Market price and financial analysis. Asset Structure. Topic 2: Identify Project Benefits and Costs Objectives of Costs and Benefits. Removal of market price distortions in traded and non-traded goods. Large scale and small scale. 3. Premium on foreign exchange through use of Shadow exchange rate and conversion factor approach. Money Market. J. Net benefit – Investment Ratio. Addison Wesley. Prentice Hall. Methods of analysis: Constant Effect Method. Topic 5: Applying Discounted Measures of Project Worth Sensitivity analysis. Delhi. Burno Solnik: “International Investments” 3rd Ed. Switching value. (1996). Constant Cost Method. Topic 3: Pricing Project Costs and Benefits Prices reflecting values. Topic 7: Financial (Investment) Analysis Theoretical and empirical examination and saving and investment. Portfolio Theory and Investment Analysis. Concept of capitalization types of securities.Paper 6. Measuring of cost effectiveness. Plans. Annual Worth. Storey: “Finance and The Small Firm” (Ed) Routledge. (1994). Comparative assessment of discounted measures. The Incremental / Net Benefits and “With” and “Without” Comparisons.

Elton and Martin J.. “Planning Manual” Lahore. New Delhi.. Essentials of Investment. Punjab P&D Board.J. 10. 12. London. Monitoring and Evaluation Process with Special Reference to Pakistan” Royal Book Co. United Nations: “Manual for Evaluation of Industrial Projects” Oxford & IBH Publishing Co. New Delhi. Prentice Hall. (1978). Zvi Bodie. (1998). 11. Ch. 13. Alan K. The Johns Hopkins University Press. William F. (1985). M: “Project Appraisal. Hughes and Storey D. (1980). 6. “Investments” 5th Ed. “Economic Analysis of Agricultural Projects”. RoutLedge. Alex Kane.. Dec.5.. Modern Portfolio Theory and Investment Analysis. Finance and Small Firms. Goober. Karachi. (1996). Hussain. John Wiley and Sons (1997). Price. (1996). United Nations: “Guide to Practical Project Appraisal – Social Benefit – Cost Analysis in Developing Countries. 7. 49 . McGraw Hill. 9. London (1994).. 8. Gittinger J. Sharpe & Gorden J. Edwin J.” Oxford & IBH publishing Co. (1998).

Demand forecasting. Economic relations of variables. Contestable Markets. Cost Minimization. Simplex method of solution. Short run and long run cost curves.4: MANAGERIAL ECONOMICS Topic 1: Nature. Homogenous and Homothetic Production Function. 50 . Cost estimation. New Product Pricing. Perfect Competition. The Maxima and Maximax Criterion. Limit Pricing and Preventing entry. The Market Demand function. Estimation and Forecasting The Basis for Demand. Topic 5: Decision Making Under Risk and Uncertainty Introduction. Topic 3: Production and Cost Analysis Production functions. Cost-value-profit analysis. Topic 6: Pricing Analysis and Decisions A Review of Market Structures and Basic Pricing Models. Selected Pricing Models. Demand. The Managerial decision making process.Paper 6. The Decision Tree and Joint Probabilities. Adjustment for Risk in Decision Making. The Incremental concept in Economic Analysis. The Standard Deviation Criterion. Mark up pricing. Monopolistic Competition. Topic 8: Managerial Theories and Models of the Firm Baumol’s Theory of Sales Revenue Maximization. Pricing Strategies for Firms and Market Power. Learning curves and application. Marris’s Model of Managerial Enterprise. The Certainty Equivalent Criterion.Revenue and Cost in Production. Williamson’s Model of Managerial Discretion Topics. Production function estimation. Limit Pricing Models. Mark-up Pricing Model. The Expected Value Criterion. Supply and Equilibrium. Oligopoly Model. Profit maximization. Monoposony and Price Product. Price Discrimination. Marginalist Pricing. Scope and Overview of Managerial Economics The Nature and Scope of Managerial Economics. Economic optimization. Application of Regression Analysis: Demand estimation. Marginal and Average Product. Problem fro Marginal Priceformula. Risk Analysis of Decision Alternatives. Topic 7: A Critique of Traditional Theory of the Firm Full Cost Pricing Model. Demand sensitivity analysis: Elasticity. Shadow prices in linear programming. Income Elasticity of Demand with Managerial applications. Productivity Measurement. Graphic specification and solution. The dual in linear programming. Monopoly. Total. Monopolistic Competition. Theory of the firm. The Coefficient of Variation Criterion. Optimal decision Strategy. Oligopoly. Topic 2: Demand Analysis. Behavioral Model by Cyert and March. Topic 4: Linear Programming Production planning for a single product Production planning for a multiple products. Price Elasticity of Demand with Managerial applications.

Import Competitiveness and tax. (2001). Nortion & co. MacMillan. Managerial Economics. 11. Profitability-Index Criterion and other criterion. Thomas. Managerial Economics: In a Global Economy (7th Edition) New York: McGraw Hills. De Fraja.” Journal of Industrial Economics 44 (March 1996): 25-32. Rent seeking and control. (latest edition). Managerial Economics.L. Thomson South-Western. Internal Rate of Return. Suggested Readings (Articles): 1. Application and Cases. Goering. Hirschey. Investment Criteria and Decisions. Public and Private Goods and their pricing mechanism. Brigham Eugene F and Hirschey Mark. 4. and P. Young. (4th Edition) Pearson (2003). Managerial Economics. 51 .. Decreasing cost Industry and pricing. James. “Comparative Risk Analysis: Limitations and Opportunities. P. (1992). James A. 10. (2000). Douglas. “Quality Uncertainty and Price in Monopoly Markets. W. Topic 10: Capital Budgeting and Investment Pre-requisites of Capital Budgeting. Dryden Press. Prentice Hall.Topic 9.. E. 2. Pappas.. Managerial Economics and Business Strategy. Kehoe. Judith A. “Capital-market Imperfections and Countercyclical Markups: Theory and Evidence. (2002). Government Policy and International Trade. 1996): 703-725. Theory. tariff and pricing. (1998). Manageral Economics. Salvatore. Chevalier. Public Sector Production and Pricing of Goods. 5. 5.. 8. MacMillan. M. Externalities and Market Pricing issues. Kent P.. (1979). Dryden Press. Maurice. Swaney. Optimal Capital Budget. 3. (1990). W.A. and Scharfstein. 4.. Managerial Economics. McGraw Hill. Managerial Economics: Economic Tools for Today’s Decision Makers. Fundamentals of Managerial Economics.. 71-82. “Entrepreneur or Manager: Who Runs the Firm?” Journal of industrial Economics 44 (March 1996): 89-98.. Michael R. and J. Mansfield E. Michael R. Hirschey. D. Pappas. David S. (1998). J. ----------------------------------Suggested Readings: (Books): 1. Chicago. 7. McGraw Hills. 3.. and P Young. Koutsoyiannis.. (10th edition) U. Managerial Economics. 9.” American Economic Review 86 (September. Keat.” Managerial & Decision Economics 17 (January/February (1996)). A. M. Baye... International pricing Techniques / Strategies. 2. 6. Gregory E.S.” Journal of Economic Issues 30 (June 1996): 463-473. (2003). “Managerial Style and the Strategic Choice of Executive Incentives. Cash flow estimation. Gianni. Modern Microeconomics.

Peter. “Forecasting the Development of the Market for Business Telephones in the UK.” Interfaces 24 (November-December 1994): 66-78. Anders H. and Meade.” Journal of Econometrics 70 (January 1996): 243-260. Hack1. “Demand for International Telecommunication: Time-varying Price Elasticity. 9. Marcus J. Roy E. “Productivity in the US and and Japan. Nigel.” Journal of the Operational Research Society 47 (July 1996): 906-918. and Westlund. Towhidual.. John M. “A Theory of Commodity Price Fluctuations. 8.” Journal of Political Economy 104 (October 1996): 924-957. Gardner. 7. Everett S. and Bailey. Islam. Chambers. 52 . and Ivancevich.6..

New directions of research. Overview of Silent Features of Muslim School of Thought . Environment and sustainable growth. Amir Samer. Quensey’s influential ideas. Comparison of Post Keynesian and Monetarist Thoughts. Sunkel. Australian School of thought. Building Blocks. New Growth Theory. Evolutionists.Paper 7. Ricardo and Reformers of 18th Century. Overview of Ancient Greek.. Nature’s Circular Flow. English Socialists. transition to liberalization: Wage theory to natural price. The 20th Century Paradigms. Anarchism. Technological Change and Impacts. Jeons Inference. Failure of Trickle down effects. Structuralist and Dependency School of thought. Weber’s contributions. A doctrine of economic process. Convergence and Divergence Debate. Supply side economics. Future of Economics. Criticism on Marx. Veber and Galberith’s Contribution. Mercantilism. Ricardo’s Monetary Thought. Overview of Ancient and medieval thoughts. The Emergence of Modern Economic Growth. Basic Needs Approach and welfare. ii) iii) iv) v) vi) vii) viii) The Crisis of the 1970’s and International Responses. ix) Modern Economic Thought. Roman and Medieval Economic Thought. Economic Imperialism. Liberalization and New Weave of Economic Growth and Welfare. New Regionalism. Overview of Islamic thoughts: Ibne-Khuldoon and thereafter. Profit Concepts of Colonization. The American economic history and Lessons. Globalization. The Class Struggle. Adam Smith. Socialism before Marx. Quality and International Trade and emergence of markets.1: HISTORY OF ECONOMIC THOUGHT i) Introduction: Importance of Economic History: Approaches to Study the Subject. The concept of Welfare State. The Growth of International Economy. Karl Marx’s Contributions. The Great Depression: Economic Policies and Capitalist Instability Between the World Wars. The Rise and fall of Post World War II. Process of modern theories and thoughts. The Keynesian and Post Keynesian School. Neo-Classical Economics. Bullin Debate. Feudalism. the task of government. Overtime. The Contributions of Mercantilists and the Physiocrates. 53 . Emergence Famine and Poverty. Changing Role of Government. Frank and others’ contribution. The Marginalist School. The Contributions of Classical School. Chamberlin and Robinson. The Labor Theory of Value. Challenges to Capitalism. The Theory of Rent. German Historical School. Industrial Revolution. Rational Expectation Revolution. Malthus and Ricardo etc.

Theories of Value and Distribution (latest Edition). (1978). Rima Ingrid. Moscow. Blaug. Press. 7.. Univ. Cambridge Univ. The Main Current in Modern Economics (latest edition). (1959). of California Press. McGraw Hills. Black Wall Publishers.. McGraw Hill Company. 9. 4.Recommended Readings: 1. The Free Press of Glancer. Schach and Locksley. Martin C. Robert Lekachman. G. MacMillan Press. Cambridge University Press. latest edition.. 3. Henery John D. Economic Theory in Retrospect. Peoples Publishing House. Frank A. Twenty Contemporary Economist ed..). Marx k. (1998). Dobb M. A History of Economic Ideas. 2. (1990). Development of Economic Analysis. 6.. 5. 10.. 8. Spechler. Routledge Publishers (Latest ed. The Communist Manifesto. (1981). and Engles F. Global Economy in the Asian Age. (1992). Perspective in Economic Thought. 54 .. The Future of Economics. Latest edition.

Stuart. Operations under Mixed Economy. Comparative Economic Systems by Gregory. 3. Economic Institutions and their Role. Historical Development Criteria for Evaluation of an Economic System. 2. Production and Distribution System. Communism and Power to the Centre. Pre-Requisites of Capitalism. Profit Maximization / Cost Minimization and Competition. Lahore. Economic Planning and Decision Making. Economic Decision Making under Capitalism. Topic 5: Economic System in Pakistan Brief Economic History of Pakistan. 4. Hordyke (1977). Ala Maududi. Economic System of Islam by M. Socialism by Pigon. Houghton Mifflin Company. Topic 4: Economic System of Islam Distinctive Features. Boston (1985). Concepts of Ownership and Production. Recommended Readings: 1. Topic 2: Capitalism Definition. Achievements and Experience. Comparative Economic System by William. The Concept of Welfare State. Market System and Environmental Problems. 6. Evaluation of Capitalism in USA and Europe Capitalism. Achievements and Failures. Distinction between private and Public Property and Production.2: COMPARATIVE ECONOMIC SYSTEMS Topic 1: Evaluation of Economic Systems Classification of Economic Systems. Chine’s Economic System by Donnithorene A. Nationalization and its Impacts. Economic Institutions of Capitalism. Comparative Economic Systems by Martin C. Communism / Socialism in USSR. Whitnery (latest edition). Various types of Communism. Basic Economic Values of Islam. Islamic Economics as Global System of Equity and Welfare. Modern Trend and its failure. Privatization and Liberalization in the 1990’s and 2000’s. Property Rights. Present Status of Socialism. Capitalism vs. Comparative Analysis: Islamic System. Price System. Additional Readings: 1. 3. Islamic Book Publisher. 5. China and Other parts of the World. Socialism and Islam by Syed A. Marxism. Basic Differences between Economic System. Historical Development. Convergence of Capitalism and Socialism. Capitalism and Communism. Topic 3: Communism and Socialism Meaning and Nature. 2.Paper 7. (The instructor will guide for additional reading material) 55 . Islam or Socialism by Wilicaynaki. Capitalism. Louks and William G. Schmeltzer and James W. Competitive and Monopoly Capitalism. Islamisation in Pakistan: Process and Problem. Omer Chapra. The Mixed Economy. Socialism. Socialist Economics by Nulty and Nove.

Ecological State of the World. Risk Analysis. Pigorian Analysis. Factors and Biodiversity. Transferable discharge Permits. Willingness to Pay. Keyoto Protocol and Developed Countries. Air Quality and Environmental health Concerns. Regulating Pollution and Protection of global commons. Incentive Based Strategies. Technology and Equi Marginal Principles. Salinity and Water Logging. Benefit. Cost of Environment and Quality.Paper 7. Population Issue and Co-operation. Use of Pesticides in Agriculture and Impacts on Human and Animals. Common Space and Cooperation Managing Water Resources: Over utilization. Endangered Specious. Petroleum. Historical Framework for Environmental Protection. Damages and Types of Pollutants / Pollution. Topic 2: The Economy and Environment Natural Resource Economics: Exhaustible and Renewable. Measuring Damages Directly. Emission Taxes and Subsidies. Participants in the Environmental Debate. Property Rights and Environmental Control. Urban Waste and Agricultural Issues Related to Pesticides use. Topic 6: Environmental Analysis Impact Analysis: Cost Effective Analysis. Natural Gas and Minerals. The Biosphere and its inhabitants. Economic Efficiency and Markets. Issues of Global Concern. General Models of Pollution Control.3: ENVIRONMENTAL ECONOMICS Topic 1: Introduction and Awareness What is Economics of Environment. Long Run Sustainability Through Pricing Mechanism. quality of life and Environment Quality. Pollution Control in the Economy: Mechanism and Responsibilities of Government. Equity and Social Efficiency. Urban 56 . Air Quality. Command and Control Strategy. The Coase Theorem. Emission Reduction and Equi Marginal Principle. Topic 8: Institutions. Energy Politics. Cost Analysis of Projects. International Awareness: Developed and Developing World and Environmental Concerns. Topic 4: Analytical Tools: An Environment Supply and Demand Issue: Cost of Controlling Environment Benefit – Cost and its Estimation. Nature of externalities. Topic 7: Environmental Policy Analysis Environment and Criterias for Policy Analysis. Government Intervention Policies to Internalize Environmental Degradation. Topic 9: Environment and Pakistan Emergence of Environment Issue in Pakistan. Topic 5: The Economics of Environmental Quality Pollution and Impacts on Human Life. Balance Growth and Consumption of Natural Resources. Cooperation and Issues Dilemma of Waste and Clean up. Salinity and Water Logging and Spread of Diseases. Emission. Centralized Policies. Topic 3: Environmental Degradation and Policy Externalities and Environment. Short Run and Long Run Choices. Industrial Waste. Political Theories and Environmental Conflict. Marginal Cost and Supply.

3. (2003). 6. (1995). Barry C. Martins. Recommended Books: 1. Timoth Dyal and Dong McEachern. Public Policies and Awareness to Control Pollution. Adamson David. Routledge (1999). McKer David. Issues for the 1990’s. (2003). 2. 4. Energy: The Environmental Public Policy. New York (1991). An Introduction. Baker Steve. Hussen A. Routledge Publishers. Environmental Economics. Tauris & Co. 5. St.B. Field. Public and Private Efforts to Improve Environment Air pollution in Pakistan. Topic 10: International Environmental Concerns and Issues The Economics of Global Warming: Paradigms for Decision Making. 57 . Dominant Publisher & Distributors. Environmental Policy & Quality of Life. 9. Environment and Politics. Health and Education. (1990). Environmental Policies and Control of Pollution. Economics. Principles of Environmental Economics. I. Quality and Impacts.Environmental Issues.U. Environmental Politics. Praeger. Switzer J. 8. Prentice Hall (1979). Environmental Policy and Strategy in Pakistan.. Environmental Economics. 7. McGraw Hill (Latest Edition). International Environmental Agreements. (1998). New Delhi. Maintaining The Environment. Impacts of Awareness Policy. Keyoto – Protocol and Issues. International Response to Food. The World Bank. UN and Environmental Cooperation. Baumal William. Developing The World. and Gary Brynew.

Current State of Agricultural Development. Characteristics of Landownership in Underdeveloped Agriculture and Pakistan.Paper 7. Tennurial Status in Pakistan. Food Safety. Price-Supply Response in Backward Agriculture. Farm Size and Productivity. Williamson. The Theory of Rent. Green Revolution in Pakistan and Responses. Some Criticisms of Krishna’s Method and the Alternative Approach of Behrman Perennial Crops and Marketed Surplus in Pakistan. Market Contribution. Farm Size in Pakistan and Productivity Commercial Farms. The Cobweb Model: An Illustration.4: AGRICULTURAL ECONOMICS Topic 1: Introduction and Importance of Agriculture Agricultural Revolution. Criticism : Dual Economy Models. Specifically in Pakistan. Brief Overview of Sources of Growth. Access to non-labor resources. Topic 2: Structure and Characteristics of Agriculture in LDCs Traditional Agriculture and Productivity. The Framing Environment: Natural Hazards and Economic Uncertainties. Topic 6: Resource Use Efficiency and Technical Change in Peasant Agriculture Efficiency of Resource Utilization. The Concept of ‘ Marketed Surplus’: Some Methods of Estimation. Factor Contribution. Technological Change in Agriculture. Topic 7: Supply Response Introduction. 58 . Agriculture vs. Kelley. The Lewis Model. Importance of Agriculture. Industry Debate of Development. Generation of new Agricultural Technology. Agricultural Technical Change and Agricultural Employment: Empirical Evidences. Topic 4: Theory of Rent and the Concept of ‘Surplus’ Introduction. The Theory of Share Tenancy. Impact of Agricultural Reforms on Farm Size. Introduction to issues in Agriculture etc. Economic Rent. The Rental Market. Present Status of Green Revolution in Pakistan: Empirical Analysis. Rent and Quasi-Rent The Ricardian ‘Corn Rent. Foreign Exchange Contribution. Industrial development Debate. Agricultural Adquecy. Agriculture vs. Supply Response in the Underdeveloped Agricultural labour Market. Product Contribution. The Ranis-Fei(FR) Model. Cheetham Model. Mellor’s Model. Agricultural Surplus. Some Extensions of the Share Tenancy Model. The Jorgenson Model. A simple Supply Response Model. Factor-biased Technological Change and its Distributional Consequences. Topic 5: Agriculture in Dualistic Development Models Introduction. The Food problem. Agricultural Resources and Technical Change in LDCs: with Special Reference to Pakistan. Agricultural productivity in Pakistan and use of inputs. Topic 3: Role of Agriculture in Economic Development A framework of Analysis.

Print Associates International. Subsidies and Developed Countries. 8. 1981. Islamabad. Ecological Disequilibrium. Izhar Sons. (1989). The Social Impact of Green Revolution. The Compensating Financing Schemes in Pakistan. The Agricultural Self-Sufficiency Argument in Developing Countries like Pakistan. Cartels in Commodity Trade and Welfare Gains and Losses. Principals of Agricultural Economics. Lester. Choice of Planning Strategy for Agriculture Development. Khan Mahmood-ul-Hassan. Impacts of support prices. 4. Malnutrition in Developing Countries like Pakistan and Remedial Manners.. Yujiro Hayami and Vernon W. New York. 7. 59 . Bruce. Impact of Policy Measures on Primary Product Trade of Pakistan. The Greogie Endownment for International Peace. Agriculture and Economic Development. latest edition.. Aslam. 1971. Markets and Prices in Less Developed Countries. The Economics of Green Revolution in Pakistan. Practices. 5. (1995). 9. Agricultural and Structural Transformation. A. 2. and Ingersent K. Published 1975. Johnston. F & Fellir Kily. Shafi M. Agricultural Development. Capstick Margret. State Trading. Political Economy of Rural Development in Pakistan. Colman D. and Young T. (Latest edition). with special reference to quality. John Hopking University Press. 12. Thorbake Erike. Agricultural Production and Resource Use. Capital and Finance in Underdeveloped Agriculture. Economic Strategies in late Developing Countries. Agricultural Project Planning. London. The Economics of Agriculture. Suggested Readings: 1. Contra-Malthusian Model. Synthesis of Population and Food Supply Theories. The Role of Agriculture in Economic Development. WTO and its implications for Pakistan’s agriculture. Topic 9: Population and Food Supplies The Classical Model. 3. Objectives. Pricing of Farm Produce in Pakistan. Chaudhary M. subsidies. Brown. Issues and problems of instability in exports. A Survey of the Literature. New York..Topic 8: Institutional Constraints and Remedial Policies Inequitable Landownership and Land Reform. (1989).. Ghatak S. Topic 10: Agriculture and International Trade Main Features of Trade in Agricultural Goods. Harvester Press. 10. Support Price Policy in Pakistan. 11. Marketing Imperfections and Marketing Policy in Pakistan. Cambridge University Press. Lahore. Upton Marlin.. Measures to Improve Marketing System in Pakistan. Welfare Gains from Price Stabilization. Agricultural Development and Public Policies. New York. Karamat. (Latest Edition). Determinants of support prices. 6. and Experiences. Some Measurement Problems. Ruttan. Terms of Trade Issue. Lahore Vanguard Book House. London George Allen Unwin Ltd.. Sanitary and Phytosanitory rules and marketing rules etc. Prebisch’s Hypothesis. Trade Policies in Developed Countries and their Impacts. dumping. Columbia University Press (1971). Few agricultural goods production and exports to few markets . Integrated Commodity Agreement (ICA) Schemes.

Regional Exporting Blocks and their Markets. Ethnic conflict. Different Regimes. Rural Development. A military Theocracy. Poverty and Governance etc. Economic and Political Integration. Seven Pillars of good Governance. Pakistan and SAARC: Composition of Trade. Topic 7: SAARC: Political & Economic Aspects Economic Aspects. Direction of Foreign Trade. Sector Specific Development Limitation. Urbanization. 60 . Topic 4: Political Economy of Economic Development International Politics and Transfer of Technology. Unemployment. Health Hazards. Juvenile Delinquency. Emerging Economic and Political Issues and their linkages.Paper 7. Topic 6: Technological Change and International Economic Institutions Integration in the 1980's and onwards. Poverty Eradication.5: POLITICAL ECONOMY AND GLOBAL ORDER --------------------------------------------------------------------------------------------------------------Topic 1: Introduction Meaning. Poverty. Politics and NeoLiberal Political Economy. Conceptualizing the Changing Global Order. International challenge of poverty. Policy option in WTO. The Political Economy of Reforms. Regionalism in the Asia-Pacific Political Globalization and the Competition State. Linkages of Politics and Economics. Housing. Foreign Trade Trends in External Trade. Cooperation with Regional NGO's in South Asia. Knowledge. Future Economic Prospects of SAARC. Theory of Exclusion. Strategies for self-preservation. Theories of the Economic impact of Law & Order. Economic Crimes. Topic 3: Regional Dynamics Regionalism and Globalization. key Social and Economic indicators. in the OECD. Trends of Trade with SAARC. Political Slogans and their Implementation. Agriculture and Industry. Economic Development. Topic 8: Issues in Lawlessness and Development Introduction.Dynamics of Elitist Model. New State Actors. The Political Economy of European Integration. Regional Phenomena and State Order. Pakistan . Environment and Externalities. the Role of State. Terrorism & Insurgency. Policy Reform and Popular Organization. Economic Blocks and Political Blocks. WTO & Pakistan's future. Topic 9: Socio Economic Developments & Crime A Review of Socio-Economic Situation in Pakistan. The Political Economy of food grain prices. Topic 2: Political Economy and World Order Problem of Power and Knowledge: New Millennium. Regionalism. Trade & Economic Cooperation. Definition and brief Introduction of basic Concepts of Political Economy. Technological change and post Uruguay Policy Agenda. Political and Economic Institutions and their role in decision making. New Voices in the Globalization Debate: Green Perspective. Topic 5: Political Economy of Pakistan The Economics of Patronage.

7. Political Economy and the Changing Global Order. 8. Pakistan: The Political Economy of Lawlessness. Multinationals: Objectives. 10. Trade Blocks. Kher. Dollars. Emerging World Financial Order. Oxford University Press. (1971). the Economy of an Elitist State.. Opening up of Services Sector and its benefitries.. Noman Omar (1988). Oxford University Press. Kardar Shahid. (1999). (1975). Debt and Deficits. Reform and Management of Pakistan Economy. Azhar.S. The Economics of Development. The Political Economy of Pakistan. Stubbs Richard and Underhill Geoffrey R. Oxford University Press.D.. The Political Economy of Globalization. Dominant Publishers and Distributors. Contribution and their Mobility. 6. KPI. Capital Mobility and Global Order. Akademiai Kiado. Kluwer Academic Publishers.Topic 10: Global Issues Global Issues in Historical Perspective. Will there be free mobility of factors of production? Capital. 4. 2. Pakistan. (1997). Big Businesses and New Trade Agreements. (2004). 3. H. (2000). 9. Oxford University Press. 5. The Political Economy of Pakistan 1947-1985. Recommended Books: 1. Pakistan. Budapest. Hussain Ishrat. The Group of Seven and Political Management of the Global Economy. Szentes J. (2004). Richard D. Gupta. R. Nadeem (2002). (1987). SAARC: Political & Economic Aspects. S. The Political Economy of Underdevelopment. ------------. Hagen Everett E. labor and entrepreneurs etc. Dev. Inc. Irwin. London and New York. 61 . Progressive Publishers.

Ashenfelter (edt).. Structural Adjustment and Wages. P. Trade Unions in Pakistan. Overview of Labor Issues in Developing and Developed World. Policies to combat child labor.. Tools to Analyze Labor Markets and Conditions.. Training and Productivity. Julie L. G. Topic 6: Labor Market Information System Labor Market Information System and Efficiency. Labor – Skill.. 3. Reading List: 1. Hand Book of Labour Economics. R. Routledge Publishers... Child labor.. Labor Unions and Wages.-. Elsevier Science Pub. Reynolds.... Selling and Pearlman’s contributions. (1986).. 5. Supply and Demand for Labor and Wage Determination. Demand for Labor by Firms. Human Capital... Decision Making and Labor Hiring... Child labor an international issue: Extent of Child labor in developing countries. Productivity and Wages. Labor Migration: Reasons and Impacts. Child labor and international trade issue. (2003). Labor Economics and Labor Relations. Labour Economics. Rationale and Impacts. Economics of Labour Markets. The Determinants. Hotchkiss.. Stagflation and Unemployment. Demand for Labor. (2002). Topic 3: Labor Market: Supply of Labor and Wages Determinants of Labor Supply....1: LABOR ECONOMICS -----.. Industry and Market Demand. Child labor in Pakistan. Short Run and Long Run Demand for Labor.. 62 . Thomson Publisher.. Kaufman. 8: Child Labor Definition and extent of child labor. Unemployment and Social Protection. Labor Statistics and Labor Policy. Current Issues in Labour Economics..... Labor Legislation in Pakistan. Kaufman. Palgrave Mcmillan.. Topic. Backward bending Supply Curve of Labor. Comith Stephen.. Labor Policies in Pakistan: Critical Evaluation. Topic 2: Labor Markets Analysis: Demand for Labor Labor Market Indicators. Major Sources of Unemployment. (1989).. Labor Force Participation.. Concepts of Human Capital. moral aspects. Topic 5: Labor Market Discrimination Discrimination in Labor Market: Gender. Wages and Phillip Curve. Labor Unions and Unemployment.. Race and Ethnicity..Topic 1: Importance of Labor Economics Introduction: Industrialization and Emergence of Labor Economics. 4. Bruce.. Orley.------. Topic 4: Wages.. Co.. The Dual Labor Market Theory. Human Welfare and Labor Policy.-. Efficiency Wage Theories and Coordination Failure.. Topic 7: Theories of Labor Movements The Marxist. Unemployment and Inflation Determinants of Wages. 2... e. Minimum Wages. The Wells. Supply of Labor and Household Productions..Paper 8. (edt). Market Determination of Wages and Marginal Productivity. Layard.. Wage Rigidity.. Impacts of Labor Union. High Wages and Involuntary Unemployment.

Development of Women. Topic 7: Employment. Manpower requirements. Health Policies and Human Capital. Migration and Development in Pakistan. Constraints to Human Development in Pakistan. The Growth of human Resources / Population and Challenges of Employment and Income Generation. Determinants of Child Mortality. Nutrition Demand: Income and Schooling of Women. Sources of Economic Growth. Investment in Human Development in Pakistan. Status of women as development agent in Pakistan. Role of Human Capital. Health / Birth of Human.Paper. Returns to Education and its Implications. Employment policies and strategies. Unemployment Critarias and Empirical Evidences Pertaining to Pakistan. Policies to Develop Human Resources in Pakistan.2: HUMAN RESOURCE DEVELOPMENT AND MANAGEMENT Topic 1: Introduction and Issues Brief Review of Population Growth and Resource Position: Food. Missing People. New Index etc. Higher Education and Return. Nutrition Health and Education. Labor market information system in Pakistan. Productivity and Income Distribution. Employment and Unemployment pattern in Developed and Underdeveloped Countries. Present conditions of Human Resources in Pakistan. Earnings / Remittance and Impacts. with reference to Pakistan. Models of Employment. Topic 6: Health. Topic 4: Mobility and Migration of Human Migration Decision: Determinants. Determinants of Earnings. Labor Migration from Pakistan. Time Criterion and Productivity Criterion. Under-employment. Migration as Investment. International Definitions. Private demand. Cost Rationale and Demand for Higher Education. Development Index and Implications. 8. Social Conditions in Less Developed Countries and Earnings of Women. Human quality and Returns. Social demand. Human Development Paradigm: Human Capital Model and Empirical Evidences. On Job Training: Cost and Benefits. Female Labor Force Participation. Policies to improve women conditions in Pakistan. Topic 2: Human Resources and Economic Growth Human Development Profiles of Nations: Human Resource Development and Case Study of Japan and ASEAN. Topic 3: Investment in Human Capital and Returns Demand for Education. Unemployment and Manpower Forecasting Labor market structure. Criterias to Measure Unemployment. Provision of Basic Needs in Pakistan. Topic 5: Women and Human Development Determinants of Women’s Time Allocation. Nutrition etc. Optimum Population Growth. Neglect of Human Resources and Impact on Development. Education and Training. Forecasting Labor Force and Population. Extent of unemployment and under-employment in Pakistan. Sector specific employment 63 . Nutrition and Human Development Poverty and Basic Needs: Impacts on Human Capital. Migration Models. Infant Mortality in the World: Empirical Evidences and Trends. Investment in Measurement of Returns to Investment in Education. Forecast of population and Implications. Role of Human Resources in Human Development. Determinants of Employment and Unemployment.

Human Resources. Journal of Political Economy Vol. World Poverty and International Community / Institutions. Desimone L. T. Reading List: 1.S. 64 . 32. The Export of Manpower from Pakistan to the Middle East. J. Ashok. Political Diversions. Vol. Reflections on Human Development (1998). (2001). Education. Hower. Kemal A.. C. Aslam and Hamid A. HRM-HRD: Personnel Management.. ARTEP. 8. Lahore. 13. International Institutions and Human Development. Philippines (1990). Islamabad (1989). Educational Manpower and Economic Growth (Latest Edition). The Pakistan Development Review. Pakistan Manpower Institute. Human Resource Policy and Economic Development: Selected Country Studies: Asian Development Bank. Victor L.. 16. Ansley J. World Development. Industrial demand and adjustment. Khawaja Saeed Amjad. 10. Review of Issues and Evidence. I. Ferozsons. Randy. Investment in Human Capital. Manila. Human Resource Development in the Labor Surplus Economies – An Integrated Approach. 15. Human Resource Led Development? (1990). Behrnan Jere R. Human Development Potential in the Islamic World. Improving industrial employment. Coal & Edgat M. Mincer Jacob. 86 #5 (1978). India. Moral Concepts. Vol. 3. Rayes. Harbison. American Economic Review. Thamarajakshi R. 51 (March 1961). 6. An International Perspective on Pakistan Human Capital Investment in the Last Quarter Century.. Harris Randy L. Human Resource Planning. Urquidi and Saul T. 17. 5. Manpower and Economic Growth. New Delhi (1987). (1999). 4. 2004. pp 1-68. Family Migration Decision. Charles A. ILO-ARTEP. Werner. 2. 14. (Latest edition).1. Schultz T.. Amjad. New Delhi. in Proceedings Report and Background Papers of the Regional Workshop on Human Resource Development and Utilization: Issues and Policies. David M.W. 1975-85. Skill development and market demand. ILO. Liberalization of WTO and Labor Migration Issue. Structural change. 9. McGraw Hill. Population Growth and Economic Development in low income Countries. (Latest Edition). MacMillan Press (1983). McGraw Hills. (1982).. 7. Oxford University Press. Ryan. The Asian Experience.R. Vol. Human Development and Management in Pakistan. Topic 8: International Dialogue: Development Cooperation Environment and Human Health. No. (Note: Students are advised to consult relevant latest research journals and literature for further study and to update each topic). Fredrick and Myers. 11. Strategies of Human Resources Development. 10#4. (1988). Oxford. Lahore: Institute of Business Management. and Schneider. Human Development Report (1991). Employment and Development.. Thomson Publisher.. Rashid. Aid and its Diversions. Chaudhary M. New Global Vision: World Income Distribution and Human Development. Behrnan Jere R. 12. Spring 1993. m.Elasticities. Mahboob-ul-Haq.A. Harbinson and Myers. Human Resource Development.

Choi. (1998). Armstrong. Harvey. Richardson Harry. (2003). Homogeneous and Heterogeneous Blocks. Amazon. Factor Mobility. Turek. Spatial and Economic Structure of Regions and Regional Development. Social and Economic Returns to Develop Backward Regions. (1990). Mcker David L. (2000). Paul Chapman Educational Publishing.. Amazon. Philadelphia. Advanced Economics of Development and Planning.3: REGIONAL ECONOMICS Different types of Regions. Philip McCann.Paper 8. New York. Black wall Publishing Company. Handbook of Regional and Urban Economics. M. 65 . 10. Shrivastava D. Regional Economics and Policy. Impact of Distance on Classical Economic Markets and Theory of Firms. Regional Economics: Theory and Practice. W. Inter-industry Model. Marshall Peter. Agglomeration Economics and Industrialization Measurement of Regional Economic Activities. 11.J. New Delhi. Combining Theory. Regional Policies for Development and Regional (Provincial) development in Pakistan. Fujita. USA. Cost / Benefits Analysis of Socially Uplifting Projects. Regional Aims of Planning. 8.S. Craig. 4. (Editors). Criterias for Development of Backward Areas. Allied Publications. Need for Planning for Local Level Development. (Routledge Functions of Political Economy). Rationale for Decentralization and Functioning of Markets. (1997). The Free Press. Planning. Theories of Inter-regional Economic Growth. Lee Roger (ed). Third World Regional Development: A Reappraisal. 12. Cambridge University Press. 7. International and Regional Location Analysis of Industries. Techniques and Practices of Development. John Wiley and Sons. Theoretical and Practical Problems of Regional Development Planning. 3. 9. Economics of Agglomeration: Cities. Thisse. Project Economics and Planning. Micro Level (Regional). 5. Richardson and Joseph H. Regional Policies and Alternatives. Industrial Location. Political Blocks. Temple University Press. High Technology Development in Regional Economic Growth.. (1970).. (2001). (1985). Centralized and Decentralized Planning and Financing for Development. 6.. Linkage between Planning and Implementation at grassroots Level. North Holland. Amazon. 2. Localized learning and Regional Development: Specialization and Prosperity in Small Open Economies. (1990). Davis H. Lack of Local Resources and Financing Techniques.com. Sharing to Finance Local Projects and Benefits. International Income Differential and Issues. Shadow Pricing and Socio-economic Development. (2002). Blocks.. Oxford University Press. International Inter-regional Economic Growth: Convergence-divergence debate.com. Regional Development Theories in Economic Prospects for the Northeast. Urban and Regional Economics. Social Returns to Local Projects. Rok-Byung. Simon David. Competitiveness. Harry W. Policy Implications of Dynamic Externalities. Recommended Books: 1. (1985). Implementation and Progress. Techniques / Methods / Tools. Growth Poles. Aggregate and Regional Planning Techniques / Models. Regional Economics. Hijkamp (Editor). Admn. Geographics of Economics. and Regional Growth.com. Impact Analysis and Project Evaluation.

Winters L. (1993). Issues in Pakistan Economy. George.13. (1999). Amazon. and Armstrong. Regional Integration and Development. 14. Kluwer Academic Publishers. 66 . Oxford Univ. 15.com.com. Press. Amazon. H. Regional Economic Modeling: A Systematic Approach to Economic Forecasting and Policy Analysis. Karachi. (2000). Zaidi.W. Regional Economics and Policy. 16. Alam. Taylor.. Treyz. Jim. Akbar. latest edition.

Topic 3: Strategic Marketing Planning Process The SMP Process. Product Life Cycle. Influences on Buyer’s Behaviour. Product Adoption and Diffusion. Marketing Cost and Price Relationship. Significance of Prices. International Marketing Strategy and Planning. Finance and Cost Management Analysis of Cost. Organizational Structure of International Markets. Exporting. Methods of Price Determination. Challengers. Channels Conflict and Channel Power. Followers and Nichers. Marketing Cost for Products. Topic 10: Managing Total Marketing Effort Key Organizations for Marketing. Services Marketing. Managing Marketing in Various Forms of Competition Topic 9: Industrial Analysis. Topic 5: Product Management The Consumer and Industrial Products. Decision making behaviour. Marketing as a Demand Management Tool. Industrial Buyer Behaviour. Abuses and Advantages of Marketing Cost Debate over Legitimacy Solution. Marketing as an Exchange Process.4: ECONOMIC PRINCIPLES. Topic 7: Distribution Management and Market Intermediaries Designing Distribution Networks. The Target Market Strategies. Key Elements of Marketing Mix. Market Control. The Wholesale Market. Evolution of Marketing. Segmentation Variables. Key Pricing Strategies. Product Mix Strategies. 67 . The Promotional Program. Strategies of Leaders. Retail Marketing. GE Nine Cell Model and Porter’s Generic Strategies Models of SMP. The BCG Matrix. International Marketing. Topic 4: International Marketing: The Target Markets & Marketing Mix Identify Target Markets. Need for Marketing Finance. Effectives of Segmentation. Forecasting Market Demand. Segmenting Industrial Markets. Physical Distribution. Global Marketing. Scope of Marketing. Marketing Audit. Product Positioning and Differentiation. Importance of Marketing. Identify and Maximizing linkages within the Various Activities. Advantages of Market Segmentation. Market Targeting. Kinds of Marketing. International Corporations and their Marketing Techniques. Models of Consumer. Buyer Behaviour. Topic 8: Consumer’s and Buyer’s Behaviours Consumer Motive to Marketing. Industry and Market Concepts of Competition. Contracting. Product Planning and Development. Strategic Opinion. Industrial Marketing. Financing. Topic 2: Supply Chain / Value Chain Management Primary and Secondary activities in Supply Chain / Value Chain. Topic 6: Marketing Cost. Topic 11: Segmentation and Targeting Significance. Reasons for Higher Cost and Methods to Minimize. Price wars.Paper 8. STRATEGIES AND TECHNIQUES OF MARKETING Topic 1: Introduction to Marketing Key Marketing Concepts. the Key Components of Promotional Mix. Local Vs. Agricultural Marketing.

. 2. Eugene Clark. Predicting Future Conditions Forecasting Sales and difference Pricing Policies. 2. 68 . “The Marketing Management” Millennium Edition by Philip Kotler. Prentice Hall. Pricing and Market Orientation. “Marketing” 4th Edition by Evans Burman.W. Competitor based Pricing war. “Basic Marketing” 8th Edition by Jerome McCarthy.Topic 12: Pricing Strategies and Sales Theories of Pricing and Value. latest edition. Journal of Marketing Management. Customer based Pricing Methods. 5.. Recommended Readings: 1. 3. Data Analysis and Sales Forecasting. McMillan Publishing Co. Cost based Pricing. Profit and other Motives for Pricing. Prentice Hall. Journal of Business Strategy 4. European Journal of Marketing. latest edition. McGraw Hill (or latest edition). Supply and Demand Model. Havard Business Review 3.D. Survey and Price Analysis. latest edition. Dumping. Walker & Stanton. Tousley. 4. Mark-up Pricing. 6. Short-run and Long-run Pricing. “The Fundamentals of Marketing” 11th Edition by Etzel. “Principles of Marketing” by R. Economic Choice. Market Share. Reference Journals for Latest Research: 1. latest edition. “Marketing Management: Strategic Approach with a Global Orientation” 3rd Edition by Boyd H.

5. Member Dean (FOA)/Chairman. Lahore. 10. Member Assistant Professor G. College. Mr. Co-Member Chairman. Dr. Lahore. Department of Economics University of the Punjab. 69 . Member Dean Faculty of Arts. Muhammad Aslam Chaudhary.Curriculum for M.Z. Qais Aslam. 7.C. Member Assistant Professor Lahore College for Women University Lahore. Hafeez-ur-Rehman. Muhammad Aslam. Social Sciences B. Dr. Approved by 2. Economics Inter University Curriculum Development Committee (IUCDC) (2004) 1.C. Shabbir Ahmad Gondal. Member Associate Professor/Chairman Department of Economics G. Dr. Member Assistant Professor University of the Punjab Lahore.C. Abdul Rauf Butt. Prof. Prof. Shahnawaz Malik. Dr. Mrs. 3. Mrs. A. Lahore. Riffat Saqlain. Bahawalpur. Abdul Hameed Shahid. Chairman (IUCDC) University of the Punjab. Dr. 4. 9. Prof. 6. Prof. University. Department of Economics F. University. Member Associate Professor / Chairperson Islamia University. Mr. 8. Dr. University Faisalabad. Multan. Lahore. Member Assistant Professor University of Sargodha Sargodha. Tasneem Khan.

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