UGC NET Economics Syllabus 2014
Code No : 01
Subject : Economics / Rural Economics / Co – operation / Demography / Development Planning / Development Studies / Econometrics / Applied Economics / Development Eco. / Business Economics.
There will be two Question Papers, Paper II and UGC NET Paper III ( Part A & B ). UGC NET Paper II will cover 50 Objective Type Questions ( Multiple choice, Matching type, True / False, Assertion – Reasoning type ) carrying 100 marks.
UGC NET Paper III will have two Parts – A and B; Paper III ( A ) will have 10 short essay type, questions ( 300 words ) carrying 16 marks each. In it there will be one question with internal choice from each unit ( i.e., 10 questions from 10 units; Total marks will be 160 ).
UGC NET Paper III ( B ) will be compulsory and there will be one question from each of the Electives. The candidate will attempt only one question ( one elective only in 800 words ) carrying 40 marks. Total marks of UGC NET Paper III will be 200.
UGC NET PAPER – II
1. Micro – Economic Analysis
- Demand Analysis – Marshallian, Hicksian and Revealed preference approaches.
- Theory of Production and Costs.
- Pricing and output under different forms of market structure.
- Factor Pricing analysis.
- Elements of general equilibrium and new welfare economics.
2. Macro – Economic Analysis
- Determination of output and employment – Classical approach, Keynesian approach, Consumption hypotheses.
- Demand for Money – Fisher and Cambridge versions, Approaches of Keynesian, Friedman, Patinkin, Baumol and Tobin.
- Supply of Money, Determinants of money supply, High – powered money, Money multiplier.
- Phillips Curve analysis.
- Business cycles – Models of Samuelson, Hicks and Kaldor.
- Macro – economic Equilibrium – Relative roles of monetary and fiscal policies
3. Development and Planning
- Economic Growth, Economic Development and sustainable Development – Importance of institutions – Government and markets – Perpetuation of underdevelopment – Vicious circle of poverty, circular causation, structural view of underdevelopment – Measurement of development conventional, HDI and quality of life indices.
- Theories of Development – Classical, Marx and Schumpeter; Economic Growth – Harrod – Domar model, instability of equilibrium, Neoclassical growth – Solow’s model, steady state growth. Approaches to development : Balanced growth, critical minimum effort, big push, unlimited supply of labour, unbalanced growth, low income equilibrium trap.
- Indicators and measurement of poverty.
- Importance of agriculture and industry in economic development – choice of techniques and appropriate technology – Investment criteria – Elementary idea of cost – benefit analysis.
- Trade and Aid – International trade as ‘engine of growth’ – Globalization and LDC’s Objectives and role of monetary and fiscal policies in economic development Techniques of planning; Plan Models in India; planning in a market – oriented economy.
4. Public Finance
- Role of the Government in Economic activity – Allocation, distribution and stabilization functions; Private, Public and Merit goods.
- The Public Budgets – Kinds of Budgets, Zero – base budgeting, different concepts of budget deficits; Budgets of the Union Government in India Public Expenditure – Hypotheses; effects and evaluation.
- Public Revenue – Different approaches to the division of tax burden, incidence and effects of taxation; elasticity and buoyancy; taxable capacity Public Debt – Sources, effects, burden and its management.
- Fiscal Federalism – Theory and problems; Problems of Centre – State Financial relations in India.
- Fiscal Policy – Neutral and compensatory and functional finance; balanced budget multiplier.
5. International Economics
- Theories of International Trade : Empirical verification and Relevance International Trade under Imperfect competition Terms of Trade and Economic Growth – Secular Deterioration of Terms of Trade Hypothesis – a critical review.
- Equilibrium / disequilibrium in Balance of Payment – Traditional, Absorption and Monetary approaches for adjustment in the Balance of Payments, Foreign Trade multiplier.
- Impact of Tariffs, Partial and general equilibrium analysis; Political economy of Non-Tariff Barriers.
- Theory of regionalism at Global level – Collapse of Bretton – Wood System – Recent.
- Monetary reforms.
- Trade Policy and Reforms in India.
6. Indian Economy
- Basic Economic indicators – National income, performance of different sectors Trends in prices and money supply.
- Agriculture – Institutional and technological aspects, new agricultural policy Industry – New industrial policy and liberalization.
- Money and banking – Concepts of money supply, inflation, monetary policy and financial sector reforms.
- Public finance – Trends in revenue and expenditures of the Central and State Governments, Public debt; analysis of the Union Budget.
- Foreign trade – Trends, Balance of payments and trade reforms.
- Poverty, unemployment, migration and environment.
7. Statistical Methods
- Measures of Central tendency, dispersion, skewness and kurtosis.
- Elementary theory of probability – Binomial, Poisson and Normal distributions.
- Simple correlation and regression analysis.
- Statistical inferences – Applications, sampling distributions (t, x2 and F tests ) sampling of attributes, testing of Hypothesis.
- Index numbers and time series analysis.
- Sampling and census methods, types of sampling and errors.
UGC NET PAPER III (A) [ Core group ]
Unit – I
- Theory of Demand – Axiomatic approach, Demand functions, Consumer behaviour under conditions of uncertainty.
- Theory of production.
- Collusive and non – collusive oligopolies.
- Different models of objectives of the firm – Baumol, Morris and Williamson.
- Factor pricing.
- General equilibrium and Welfare Economics.
Unit – II
- Keynesian and post – Keynesian approaches to theory of output and employment; concept of investment multiplier; consumption hypotheses Theories of investment and accelerator.
- Theories of demand for money – Keynesian and post – Keynesian.
- Different approaches to money supply; money supply; components and determinants; money multiplier.
- Output – price determination ( aggregate supply and aggregate demand curve analysis ).
- Fleming – Mundell open economy model.
Unit – III
- Development and Growth – Role of institutions.
- Theories of growth and development – Models of growth of Joan Robinson and Kaldor; Technical Progress – Hicks, Harrod and learning by doing, production function approach to the determinants of growth : Endogenous growth : role of education, research and knowledge – explanation of cross country differentials in economic development and growth.
- Theories of development – Classical, Marx, Schumpeter and structural analysis of development – Imperfect market paradigm, Lewis model of development, Ranis – Fei model, Dependency theory of development.
- Factors in economy development – natural resources, population, capital, Human Resource Development and infrastructure.
- Trade and development – trade as engine of growth, two – gap analysis, Prebisch, Singer and Myrdal views; gains from trade and LDCs.
Unit – IV
- Theories of taxation, types, incidence and effects.
- Theories of public expenditure – effects on savings, investment and growth Burden of public debt.
- Union Finance – Trends in Revenue and Expenditure of the Government of India.
- State finance – Trends in Revenue and Expenditure of the State Governments.
- Public Debt – India’s Public debt since 1951 – growth composition, ownership pattern and debt management.
- Union – State Financial Relations – Horizontal and vertical imbalances; the Finance Commissions.
- Fiscal Policy and Fiscal Reforms in India.
Unit – V
- Monetary approach’ and adjustment in the balance of payments.
- Regional blocs – multilateralism and world trading system.
- The Political Economy of imposition of non – tariff barriers.
- International trade under conditions of imperfect competition in goods market.
- Theory of International reserves.
- Optimum Currency Areas – Theory and impact in the developed and developing countries.
- WTO and its impact on the different sectors of the economy.
Unit – VI
- Components of money supply.
- Role, constituents and functions of money and capital markets.
- RBI – recent monetary and credit policies.
- Commercial banks and co – operative banks.
- Specialized financial and investment institutions.
- Non – Bank financial institutions and Regional Rural Banks.
Unit – VII
- Industrial structure and economic growth.
- Pattern of industrialization – Public and Private; large and small industries.
- Theories of Industrial location – Indian experience.
- Industrial productivity – measurement, partial and total trends Industrial Finance in India.
- Industrial Labour – Problems, policies and reforms in India Economic Reforms and industrial growth.
Unit – VIII
- Population and Economic development – interrelation between population, development and environment, sustainable development.
- Malthusian theory of population, Optimum theory of population, theory of demographic transition, population as ‘Limits to Growth’ and as ‘Ultimate Source’.
- Concepts of Demography – Vital rates, Life tables, composition and uses, Measurement of fertility – Total fertility rate, gross and net reproduction rate – Age pyramids, population projection – stable, stationary and quasi – stationary population; characteristics of Indian population through recent census.
- Poverty in India – Absolute and relative; analysis of poverty in India.
- Environment as necessity – amenity and public goods; causes of environmental and ecosystem degeneration – policies for controlling pollution – economic and persuasive; their relative effectiveness in LDCs; Relation between population, poverty and environmental degradation – microplanning for environment and eco – preservation – water sheds, joint forest management and self – help groups.
- Role of State in environmental preservation – Review of environmental legislation in India.
Unit – IX
- Role of Agriculture in Indian Economy – Share of Agriculture, interrelationship between agriculture and industry.
- Institutional aspects – Land reforms, Green revolution.
- Technological aspects – Agricultural inputs and shifts in production function.
- Capital formation in the rural sector – Savings, assets and credits.
- Strategies for rural development.
- Regional disparities in Indian agriculture.
- Cooperative movement in India – Organization, structure and development of different types of cooperatives in India.
Unit – X
- Application of Differential and Integral Calculus in theories of consumer behaviour, Production and pricing under different market conditions.
- Input – output analysis and linear programming.
- Application of Correlation and Regression.
- Testing of Hypothesis in Regression Analysis.
UGC NET PAPER III (B) [ Elective / Optional ]
Elective – I
Single Equation Linear Model :
- Assumption and properties of OLS.
- Multiple Regression Model – Estimation and Interpretation.
- Multi – collinearity – Auto – correlation and heteroscedasticity – Causes, detection, consequences and remedy.
- Dummy variables, distributed lags – Need, limitations and interpretation.
- Applications in Economics.
Simultaneous Equation models :
- Structural and reduced forms.
- Endogenous and exogenous variables.
- Identification problems and conditions.
- Single equation methods of estimations – TSLS, indirect least squares and least variance ratio.
Techniques of Forecasting :
- ARMA, ARIMA.
- Econometric properties of time series, Unit root, integrated series, random walk and white noise.
Elective – II
- Theory of Consumer Behaviour and Theory of Firms.
- Theory of Pricing – Monopoly, Monopolistic competition, Duopoly and Oligopoly.
- Theory of Games – Two – person, Zero – sum Game, Pure and Mixed strategy, Saddle point solution, Linear programming and input output analysis.
- Static and Dynamic Multiplier and Accelerator, Samuelson – Hicks trade cycle model.
- Growth Models – Harrod and Domar, Neoclassical models – Solow, Meade, Kaldor’s Model with technological progress, endogenous growth models.
- Employment and output determination with fixed and flexible prices ( IS – LM, Aggregate demand and aggregate supply analysis ).
Elective – III
- The Rise and Fall of Bretton – Wood and emerging International Monetary System.
- World Trading System – Evolution and Distortions.
- Globalization – Developments in Exchange Markets, Euro – Currency Markets, and International Bond Markets, International Debt crisis.
- Theory of Foreign Exchange Markets – Exchange Trading, Arbitrage and Market Hedging.
Elective – IV
- Growth and Productivity trends in Indian Agriculture.
- Development of distributive institutions – Costs and price policies.
- Agricultural marketing and credit.
- Trends in migration and labour markets. Minimum Wages Act.
- WTO and sustainable agricultural development.
- Reforms in Indian agriculture.
Elective – V
- Planning and Economic Development.
- Costs, Prices, WTO and Indian Agriculture.
- Globalization, Liberalization and the Indian Industrial Sector.
- Infrastructure and Economic Development.
- Social Sector, Poverty and Reforms in India.
- Women, Environment and Economic Development.
- Trade Reforms and Liberalization.
- Financial sector reforms.
- Fiscal policy and fiscal reforms.