GC University, FaisalabadSyllabus of Economics 1 GC University, Faisalabad M. A Economics (for private students) Paper 1. MICRO-ECONOMIC THEORY Part A: Topic 1: Introduction Microeconomics: Comparison with other Branches of Economics. An Overview of Microeconomics Topics, Consumer’s Decision, Markets, Economic Models. Development of the Economic Theory of value. Production, Cost and Welfare. Cost Minimization, Introduction to Maximization of a functions. Functions of several variables & their optimization. Implicit functions. Derived Demand. Game Theory. Topic 2: Theory of Consumer Behaviour and Demand Analysis Axioms of Rational Choice. The utility function, Arguments of utility function. Indifference curves and Marginal Rate of substitution (MRS). Indifference curves and Transitivity. Convexity of Indifference curve. An alternative derivation: Marginal utility, MRS. Concepts of Perfect substitutes and perfect complements.Non-homothetic Preference. Consumer’s equilibrium. Income & Substitution effects: Hicksian Framework and Slutsky equation. Revealed Preference and the Substitution effect. Indirect utility function & its derivation. Topic 3: Market Demand & Elasticity Market demand curves. Types of demand curves. Short Run and Long Run analysis: Elasticity and relationships among elasticities of demand. Theoretical issues in Market demand analysis. Implication of Elasticities and Problem Solving Approach. Identification of Inferior goods, Giffin goods and normal goods. Topic 4: Production Functions The Concept of Production Function; how to Choose Variables. Variation in one input. Isoquant Maps and the rate of technical substitution. Returns to scale. The 2 elasticity of substitution. Some common production functions. Technical progress. Equilibrium of the firm. Cobb Douglas Production function. CES Production Function. Translof Function. Topic 5: Cost of Production Definition of costs. Cost functions. Traditional Vs Modern theory of cost. Changes in input prices. Short Run, Long Run distinction. Input substitutability. Input Cost and Demand for Factors of Production. Derived Demand. Cost Minimization. Decreasing and Increasing Cost Industry and Price Determination. Part B: Topic 6: Profit Maximization and Supply The nature & behaviour of firms. Profit maximization. Marginal Revenue. Short Run supply by a Price taking firm. Profit maximization and input demand. The controversy over the profit maximization hypothesis. Cost minimization. relationship between cost and production curves. Topic 7: The Theory of Market Behaviour 7.1: 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; Price and Output Decision. Mathematical derivation of Price and Quantity. 7.2: Monopoly: Monopoly & its Basics: The negatively sloping demand curve: Short run equilibrium, Long Run Equilibrium: Price discrimination: Bi-lateral Monopoly: Multiplant Monopoly: Comparison with perfect competition: Monopoly and Price Distribution. Monopoly and Price Discrimination. Mathematically Price and Quality Solution. 3 7.3: Monopolistic competitive conditions: The historical setting of the theory of monopolistic competition, Characteristics of Monopolistically competitive firms. The concepts of industry & group: The basic Chamberlain theory of Monopolistic competition. Comparison with pure competition & monopoly. Mathematical Derivation of Price and Output Decision under Monopoly. 7.4: Oligopolistic conditions: A simple statement of the problem of oligopoly: Models of Non-collusive Oligopoly: Cournot, Bertrand, Chamberlin, Sweezy & Price Leadership Collusive model of oligopoly: cartels & price leadership models. Mathematical Derivation of Price and Quantity Determination. Monoposony and Buying Power; influence on Price. Topic 8: Game Theory Description of a Game Theory. The Payoff Matrix of a Game. Nash Equilibrium. The Prisoner’s Dilemma. Sub-game Perfect Equilibrium: Sequential Equilibrium. Application of Game Theory. Cournot Equilibrium. Bertrand Equilibrium. Quantity Leadership (Stackleberg Model) Price Leadership. Collusion (Cartel). Conjectural Variation. Stackleberg Case. Topic 9: Pricing of Factors of Production Short Run Demand for one Variable Input. Input price Elasticity. The Short run Demand Curve. Variable inputs. Market demand Curve for an Input: The Price of fixed Factors: Rents & Quasi-rents. The Supply Curve of Labour: Wage Determination, Role of Unions. Topic 10: General Equilibrium Assumptions of the 2 X 2 X 2 models. Edge Worth Box diagram, Pareto Optimality; Equilibrium conditions. Concept of Contract Curve , Static Properties of A General Equilibrium Model. 4 The Structure of Economics. The Theory of price. Baumol. Micro-Economics*. Prentice Hall (Last Edition). (Last Edition). (last Edition). London.T. Microeconomic Theory*. Kameischon. 5. Microeconomic Theory. Criteria of social welfare. N. Walter Nicholson. Modern Microeconomics*. Henderson. N. Layard and Walter A. 4.. Recommended Books: 1. Arrow Pratt measure of (absolute) risk aversion. Global Risk aversion. (Latest Edition). (Latest Edition). Varian Hal R.R. Uniqueness of expected utility function.Y Melliwra H A Book Co. Macmillan. A. C. Norton & Company. Topic 11: Welfare Economics Meaning of Economic welfare. Koutsoyiannis. Micro Economics Analysis*. Hirshleifer Jack.Y Macmillan.. 5 . 2. New York.. Affine function. Risk aversion and Risk loving in Risk neutral.. Silberberg E. McGraw Hill. Macmillan. (Latest Edition)...E & Gould. Microeconomic Theory: Basic Principles and Extensions (6th edition). Anti-trust Policy and regulations. A Mathematical Analysis. Arrow’s Impossibility Theorem. Readings in Microeconomics.P. Topic 12: Uncertainty and risk Analysis Concept of expected utility & its theorem. Prentice Hall (Latest Edition). D. 6. W. 2. 5..E.J. Additional Readings: 1. Arrow Pratt measure of relative risk.. Welfare Maximization and perfect Competition. McGraw Hills. 4. 1992.General Equilibrium and the Allocation of Resources. J. Stiglor. London. New York. G. Externality analysis.M & Quandt. Ferguson. J. Market failure and public goods/social goods.T. Economic Theory and Operations Analysis. (Latest edition). 3. R. The world publishing co. Welfare Maximization..A. Price Theory and Applications*. 3. Measurement of risk aversion. Inflation Indexes. Deflation and Stagflation. Topic:2 Income Determination Firm’s Demand for Factors of Production. Nominal and Real Variables. Part A: Topic:1 Introduction and National Income The Development of Macroeconomics. MACRO-ECONOMIC THEORY Note: 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. Kuznet’s findings and Reconciliation of Marginal Propensity to Consume and Average Propensity to Consume and Evidences. Leading and Lagged variables. Product Approach / Income Approach.Paper 2. 6 . Mathematical derivation of Consumption Models. Measurement of GNP: Expenditure Approach. Potential Output. Actual vs. Measuring Unemployment: Oken’s Law. Permanent Income Hypothesis / Life Cycle Hypothesis. Mathematical Approach may be adopted in Part B. Price Indices. Saving and Investment Balance. Demand for Labor and Capital: Marginal Product of Factors and their Demand. Keynesian Consumption Function. Derivation of Simple Multiplier. How to build simple Macroeconomic Models. Investment. Economic Models. Inclusion of Imports and Multiplier. Exogenous and Endogenous Variables and their Functional Relationships. Production Function. Circular Flow of National Income. Analytical Approach to Macroeconomics. Beyond Permanent Income Hypothesis. Government Spending and Net exports. Labor Market and its Equilibrium. Demand for Goods and Services: Aggregate Demand and its Components: Consumption. Tax Multiplier. GNP as measure of welfare. Equilibrium of Aggregate Demand and Supply: Mathematical Solution and Equilibrium. Introduction to Keynesian and Classical School of Thoughts. Topic:3 Theories of Consumption and Their Implications Theories of Consumption: Duesenbury Hypothesis. Instruments of Monetary Policy. Stagflation and Stabilization Policies. Quantity Theory of Money and its Critical Review. Empirical Estimation of Income and Interest Elasticities.The MPS Model. Shocks to ISLM and its Outcomes and Policy Implications. Topic:5 Money Market: The Demand and Supply of Money Money Demand and its Determinants. Shape of IS-curve. Determinants of Money Supply. Determinants of investment. Measurement of Money Supply and its implications. Regressive Expectation Model. Investment Demand and Output Growth. Portfolio Balance Approach. Shocks to Aggregate Demand and Supply and Stabilization Policy. Fischer effect. Supply of Money. Supply Side Economics. Derivation of LM Curve and its Slope. Effectiveness of Policy and Price Rigidity. Ineffectiveness of Keynesian Policies. Wealth effect in the Static Model. Supply and Stabilization Policy Keynesian Models: Liquidity Trap. Topic:6. Volatility of Investment. Slope of Aggregate Supply and Demand Curves. Interaction of IS-LM and Determination of output: Short-run and Long-run analysis: Aggregate Demand and Supply and their Slopes. Interest Sensitivity of Money Supply. Derivation of IScurve. Aggregate Demand. Money. Present Value Criteria for Investment. Implications of Consumption Theories for Policy Formulation and Stabilization Policy. Grand Aggregate Demand Curve. Long-run and Vertical Aggregate Supply Curve. Topic:4 Saving and Investment Definition and Kinds of Investment. LM Curve and Money Market Equilibrium. Shifts in Investment Demand Curve and output determination. Classical and Keynesian Models. Random Walk Model. Investment Demand and Fiscal Policy. Liquidity Trap. Tobin’s Q-Theory. Lags in Investment Demand. Technical Change and Shift in Vertical Aggregate Supply Curve. Interaction of IS-LM and Equilibrium. Slope of ISLM in Short-run and Long-run. 7 . Prices and Inflation. Vertical / Horizontal Shapes of these Curves. Autonomous and Induced etc. Short-run – Long-run Philip Curves. MFM and large open Economy. 8 . Capital Assets. Seignorage and Inflation: What can Policy Accomplish? Monetarists vs. Tax shooting. Government Debt and Budget Deficit The size of Government Debt. Flexible and Managed Exchange Rates. Insider-Outsider Models. Trade Policy Mundell-Fleming Model (MFM) with changing Price Level. Devaluation and Recovery from great depression.Part B: Topic:7. The Imperfect . Monetary Policy. Money Inclusion and output. IS-LM: Goods and Money Market. Measurement Problem: Inflation. Delayed Stabilization. The Workers .Misperception Model. Conduct of Policy: Rule vs. Income Absorption Approach and exchange Adjustment and Balance of Payment. Short Run and Long Run Adjustment. Distrust of Policy makers and Political Process. Rational Expectation (RE). Depreciation and its impacts. Phillips Curve: Short run and Long run analysis. Model of Debt Crises. Hysteresis and challenge to Natural rate Hypothesis. Discretion. Floating Exchange Rate and Fiscal Policy. Topic:10. Expectations and the Lucas Critique. RE and Painless Disflation. Labor Market. Price Expectation and Unemployment Demand and Supply of Labour. Activists debate. Business Cycle etc. The expectation augmented Phillips Curve. Perfect Foresight and Adjustment. making Policy in uncertain World. Ignorance. Fixed Exchange Rate and Fiscal Policy. Macroeconomic Policy Debate Policy Actions: Active or Passive. Small Open Economy. Adaptive Expectations.Information Model.Fleming Model (MFM): Small open Economy with perfect Capital Mobility. The Sticky Price Model. The Sticky Wage Model. Macroeconomics Policy: Rules for Fiscal Policy. Topic:9. Consumers and Future Taxes. Equilibrium in the Labour Market. Ricardo and Ricardian Equivalence and Debate. Topic:8. Open Economy and Macroeconomic Stabilization Exchange Rates and their Determinants: Mundell . Ricardian view of Debt: Ricardian Equivalence. What Determines Inflation Rate.. Glahe. Branson.. Macroeconomics. New York / London. Labor-Augmenting Disembodied Technical Progress. Technology Shocks. Limitations of the Model. 3. William H. and Minfow P. 8.. Mankiw. Peel D. Harper and Row Publishers. (1988) Rational Expectations and Inflation*. Thomas J. William H. 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. (2001). The Challenges: What we know and what we don’t know? Long-run and Country’s Capacity to Produce. 6. Recommended Books: 1. (Latest Edition). Advanced Macroeconomics*.• Kaldor Saving Function and Neoclassical Production Function. Princeton University... Wage – Profit Relative Shares.Topic:11. Household Behaviour. David. McGraw Hills. Fred R. • Golden Rule and Optimal Growth Models. New York / London. Long-Term Growth and Full Employment • Basic Neo-Classical Growth Model and Equilibrium Capital / Output Ratio. Harper and Raw Publishers. 9 . (2002). Theory and Policy. the persistence of output Fluctuations. Cheltenham. • Neo-Classical Model with Technical Progress: Capital Embodied Technical Progress. Economic Fluctuation and Its Sources The Theory of Real Business Cycles: Interpretation: Labor Market. (1979). Macroeconomics*. 7. and Litvack James M. Short-run and influence of Aggregate Demand. Sargent. (2000) Macroeconomics*. Advance Macroeconomics. Branson. 2.. 5. New York. Neutral Disembodied Technical Progress. Gregory N. New York / London. Romer. Edward Elgar..K. Harcourt Brace Jovanovich Inc. Macroeconomic Theory and Policy. Worth Publishers.• New Growth Theory / Endogenous Growth. Random Walk Model. U. (Latest Edition). Topic 4: Input-Output Analysis Input-output model. Solution of linear equations through Gaussian method. Conditions for non singularity of a matrix. rational. Topic 2: Equilibrium Analysis in Economics A linear partial equilibrium market model. Types of matrices: Square. MATHEMATICAL ECONOMICS Topic 1: The Nature of Mathematical Economics Ingredients of mathematical models. Non linear market model. polynomial. Cramer’s rule and Inverse of a matrix method. Macmillan (Latest edition). Trends in American Economic Growth. • Strongly Recommended Paper 3. intercept. its structure and its derivation. Denison. point slope and slop intercept. Topic 3: Linear Models and Matrix Algebra Theory of matrix multiplication. Equilibrium in a linear National Income Model. transpose and their properties. Rosalind Leveic and Alexander Reborens. 10. 1929-1982. Washington: The Brookings Institution. Minors and cofactors. Indices & their rules. diagonal. Determinant & its properties. Edward F. Properties of inverse of a matrix. Relationships and functions. identity. Derivations: Equation of a straight line and its forms: Two point. Functions of more than two independent variables. The use of input output model in Economics. Laws of matrix operations. Types of functions: constant.9. Logarithms & the rules of logarithms. non-algebraic. idempotent. 1985. Topic 5: Differentiation 10 . Use of matrix approach in market & national income models. General Market Equilibrium. The effect of an excise tax in a competitive market. Macro-economics: An Introduction to Keynesian Neo-Classical Controversies. null. . Production functions Analysis. a linear National Income model. Concept of maxima & minima. Topic 6: Partial & Total Differentiation Partial differentiation & its rules. Partial elasticities. A. Solving of Primal via dual. Minimization of cost etc. chain.Rules of differentiation. Economic applications of derivative. Higher order derivatives. Jaccobian determinants. economic application of linear programming. Multi-plant monopoly. McGraw 11 . Topic 7: Economic Applications of Partial & Total Differentiation Comparative static analysis: a linear Partial equilibrium market model. Duality theorems. power. Chiang. Lagrange method. Utility maximization & Cost minimization. Fundamental Methods of Mathematical Economics. quotient. logarithmic & exponential functions Combinations of rules. Translof Function. Maximization & Minimization of unconstrained functions & their economic applications: Profit maximization by a multi-product firm under perfect Competition & monopoly. product. Optimizing cubic functions & their economic application. Cobb Douglas Production function. input decisions etc. Topic 8: Optimization: Constrained & Extrema Free and constrained optimization. Recommended Books: 1. Implicit functions rule of differentiation. simplex method. Homogenous Production function. Topic 9: Linear Programming Ingredients of linear Programming. extrema of a function of two variables: graphical analysis. Sumdifference. CES Production Function. Price discrimination. Concept of primal & dual. Graphical approach. C. Differentiation of a function of one variable. Profit & revenue maximization under perfect competition. Total differential & total derivatives. inverse. under monopoly. Economic interpretation of a dual. Maximizing excise tax revenue in monopolistic competitive market. Higher order & cross partial derivatives (young’s theorem). elasticity and point of inflection. Box plot and detailed box plot. Percentiles. Primary and secondary data. Estimating an unknown quantity. The four basic activities in statistics: Designing a plan for data collection. Mathematical Analysis. (Latest edition). Graphic and diagrammatic representation: Bar chart. Ordinal. Classification. Budnick. Pie chart. STATISTICS FOR ECONOMISTS Topic 1: Introduction Descriptive and inferential statistics. Variable and constant. Economic Dynamics. Applied Mathematics for Business. Economics and Social Sciences. Quantitative data and qualitative data. J. Crosssectional and pooled data. New York. Dowling E. 5. Histograms. Finding the percentile for a given percentage. Paper 4. Measure of central tendency. 12 .Hills. T. Tabulating numerical data: The frequency distribution. Interval and Ratio. The mode. The cumulative distribution function: Finding the percentile ranking for a given number. The percentage frequency distribution. Errors: Biased and unbiased. Introduction. 4. Exploring the data. 2. The cumulative frequency distribution. Topic 2: Presentation of Data and Measure of Central Tendency Introduction. population and sample. The relative frequency distribution. Jean.. Deciles.. Hypothesis testing. Histograms by Hand: Stem-and-leaf. (Latest Edition). Significant digits and rounding off numbers. Quintiles: Median. Geometric mean. parameter and statistic. Trimmed mean and Winsorized mean. Mathematics for economists. Type of measurement scales: Nominal. Empirical relation between Mean. Macmillan. Time series. Schum Series (latest edition). 3. Business and Economic Applications (Latest Edition) Harper and Row Publishers. Types of Averages: Mean: Arithmetic mean. Harmonic mean. Summary measures and type of data. Baumol W. Types of data: Univariate. Quartiles. Bivariate and Multivariate data. Weber E. Frequency curves and Histograms. Median and Mode. Frank. Different measures of dispersion: The Range. Kurtosis. Step deviation method or coding method. sampling bias. Subjective probability. Sampling frame. and its computation. Binomial probability distribution. Variance and standard deviation: Definition and interpretation of variance and standard deviation. Properties of standard deviation and variance. Bowley’s coefficient of skewness. Properties of Binomial probability distribution. Probability sampling and non-probability sampling methods. Mean deviation. The normal probability distributions: Properties of normal distribution. Counting rules: The multiplication formula. Sample design and sample survey. Finding areas under the normal curve. Discrete probability distribution. Conditional Probability. Sampling distribution of differences between proportions. Tree diagrams.Topic 3: Measures of Dispersion. Sampling distribution of sample proportion. Random variables. Rules of multiplication. Representative samples. Probability and nonprobability sampling. Skewness: Karl Pearson’s coefficient of skewness. Quartile deviation. The normal approximation to the binomial. Topic 5: Survey Sampling and Sampling Distributions Sampling the population. Some rules of probability: Rules of addition. Sampling distribution of differences between means. The combination formula. The central limit theorem. variance and standard deviation of a probability distribution. Standardized variable. Topic 4: Probability and Probability Distribution A survey of probability concepts: Classical probability. Applications of the standard normal distribution. Continuous random variable. Areas under the normal curve. Sampling and nonsampling error. Empirical concept. Computation of variance and standard deviation. Continuity correction factor. Coefficient of variation. 13 . Skewness and Kurtosis Absolute and relative measure of dispersion. Sampling with and without replacement. Cumulative probability distributions. The mean. Discrete random variable. Sampling distribution of the mean. Bayes Theorem. Advantages of sampling. The permutation formula. comparing populations with small samples. (iii) Least squares principle. Contingency Table Analysis. Estimation by confidence interval: Confidence interval estimate of a population mean (Known Variance). One Sample. Limitations of Chi square. Goodness-of-fit test: Equal expected frequencies. Comparing two population variances. Topic 8: Chi Square Applications Introduction. Inferences about pairs of treatment means. Sample size for estimating population mean. Confidence interval for differences of means. Two-way analysis of variance. Population proportions. Coefficient of 14 . ANOVA test. Assumptions underlying linear regression. The F distribution. ANOVA assumptions.Topic 6: Estimation and Confidence Intervals Point estimates and confidence intervals. Goodness-of-fit test: Unequal expected frequencies. Testing of two Sample Hypothesis: Population means. Using the goodness-of-fit test to test for normality. Measures of variation: Standard error of the estimate. One sided confidence interval. Topic 10: Simple Linear Regression and Correlation Analysis Scatter diagram. Testing for a population mean with a known population standard deviation: Two-tailed test. P-Value in hypothesis testing. Confidence interval estimate of a population mean (Unknown Variance) Confidence interval for differences of means. Testing hypotheses about population proportion when sample size is large. (ii) Semi average. Topic 9: Analysis of Variance Introduction. Population standard deviation unknown. Standard methods for obtaining regression line: (i) Inspection. Confidence interval for differences between proportions. Confidence interval for population proportion. Type II error. Testing for a population mean: Large sample. one-tailed test. Topic 7: Hypothesis Testing One sample test of hypothesis. One tail and two tails tests of significance. Topic 12: Applied Statistics Index Numbers. Simple aggregative index. Coefficient of multiple determination (adjusted and unadjusted). Nonlinear regression models. Pitfalls and problems in multiple regression: Multicollinearity. t-test for correlation coefficient. Estimation of the mean values and predication of individual values. Correlation matrix. The relationship among the correlation coefficient. Confidence interval and predication interval estimate. Qualitative independent variables. Topic 11: Multiple Linear Regression and Correlation Analysis Multiple linear regression model. t-test for the slope. Un-weighted index numbers. Prediction in Regression Analysis. CPI versus GDP Deflator. F. Laspeyre’s price index. Individual variable significance test. Model misspecification. Multiple correlation and partial correlation. Application of index numbers to business and economics. Interpolation verses extrapolation. Variable selection. Weighted indexes. Global test. Estimation of multiple linear regression model with two explanatory variables by using Least squares principle. Consumer Price Index (CPI).determination. Fisher’s ideal index. Correlation analysis. Dealing with nonlinear relationship and unequal variability.test for the slope. the coefficient of determination and the standard error of estimate. Component Factors of the classical 15 . Matrix approach. Evaluating the regression equation: Using a scatter diagram. Paaseche’s price index. The coefficient of correlation: Properties/characteristic of coefficient of correlation. Inference about the slope and correlation coefficient. Issues in constructing and using index numbers. Deviation form. Multiple regressions in terms of linear correlation coefficients. Interpretation of partial regression coefficients. An overview of time series analysis. Correlation and causation. Producer Price Index (PPI). Multiple standard error of estimate. Scatter diagram. Rank correlation. MarshalEdgeworth price index. Modeling cyclic behavior using box-Jenkins ARIMA processes. Betty M. Using regression analysis in forecasting. Recommended Text books: 1. 2000. De-seasonalization the time series. 2003. William G. Scenario writing. Shahid. 16 . William L. Douglas A. Choosing an appropriate forecasting model. 2002. Boston: Duxbury Thomson Learning. 5. Exponential smoothing. and Mason. Some observations on time series analysis. Weighted moving averages. Statistical Techniques in Business and Economics (11th edition).. The multiplicative model. Marshal. 4. 2002. Keller. Statistics for Management and Economics (5th edition). New Jersey: Prentice Hall. Time series and forecasting. Expert judgment. Using deseasonalized time series to identify trend. Seasonal adjustments. Statistics for Business and Economics (5th edition). Using trend and seasonal component in forecasting. 2003. Practical Business Statistics (5th edition). Qualitative approach to forecasting: Delphi method. Introduction to Statistical Theory (7th edition). Carlson. Paul. Boston: McGraw Hill. Chaudhry. Calculating the seasonal indexes. Lind. Boston: McGraw Hill. Gerald and Warrack. Lahore: Ilmi Kitab Khana. Robert D.. Irregular variation. Intuitive approaches. Seasonal variation. Andrew F. Siegel. Newbold. Model based on monthly data.multiplication time series model and their estimation: Secular trend. Brian. 3. 2. Sher Mohammad and Kamal. Cyclical variation. and Thorne. Cyclical component. Smoothing the annual time series and using it in forecasting: Moving averages.. Students must consult additional literature on each topic. Moderation. Market Structure – Monopoly and Competition. Islamic Economics Versus Economics of Secular Economy and Mixed Economic System. Shah Waliullah Dehlvi. Comparison of Islamic Economic System with Capitalism and Socialism. Economic Freedom. optional Consumption Behaviour. Equality. Baqar-al-Sadar). Bai Muajjal. with respect to above cited principles / values of Islam. Price Mechanism and State Role in Regulation of Markets. Topic 6: Distribution in Islamic Economy Islamic Stress on Circulating of Wealth. The Concept of Equality and Efficiency. and Importance of Islamic Economics. Business Ethics in Production and Marketing. determination of Prices and Rate of Normal Profit / Meeting of Losses. Objectives and Behaviour of Firm in Islamic Economy. Brotherhood and Cooperation as Determinants of Economic Behaviour and Policies. Taqva. Imam Abu Ubaid Al Qasim. Topic 4: Microeconomics in Islamic Framework The Consumer Behaviour in Islam. Hoarding and Gains. Priority to Basic Needs. Imam Ibn-e-Taimiah. Distributive Justice Use of Land and Other Natural Resources and their Rewards. Topic 5: The Modes of Financing In Islam Modarba and Musharka Types of Bai. Social Justice in Islam. The references provided at the end of the course are just helping literature. objectives. Welfare and income Distribution.. Utility.) Saving and Investment in Islam. Concepts of Ownerships and Implication. 17 . Steps against Concentration of Wealth. The Relative Importance of Capital and Labour.Paper 5. Resource Allocation in Islamic Environment and Cartels. Organization of Production and Behavioural Theories of Firms. Ibn-e-Khaldoon. (Bai-Salam. Halal and Haram. Concepts of Fair Trade. Topic 1: Introduction: Islamic Economics Nature. Role of State in Distribution of Wealth. Topic 3: Islamic Economic System Silent features of Islamic Economic System. Benevolence. Morabaha. Property and Ownership Rights. ISLAMIC ECONOMICS Note: The instructor concerned may assign additional and latest literature on the subject matter. Justice. Rights of Labour. Investment of Savings for Gains. Stockists / Wholesales. Brief Introduction of Basic Values of Islam. Topic 2: Major Economic Thoughts: Contribution of Scholars Contribution of some Earlier Muslim Scholars in the Development of Islamic Economics (Imam Abu Yousuf. Merits and Trade.Topic 7: Some Basic Macroeconomic Concepts Consumption. KSA. its Implications and Alternatives. Islamic Economics: Dar A. Nature of Economic Planning in Islam. Functions of Commercial Banks in Islamic Framework. Design of Capital Market. Cambridge.A. Determents of Islamic Consumption Function. Topic 9: Zakat. Islamic Concept of Riba. Nisab. Fair Prices Vs. Mannan. Inflation Vs. Topic 12: New Emerging Issues and Challenges Current Situation and Proposed Changes. Islamic Economics: Theory and Practice. Concept to Help others. Implementation of Zakat / Usher in Pakistan. Islamic View of Globalization. Zakat and Usher. Expenditure Principles. Money and Banking). Central Banking and Monetary Policy in Islam. Akram Ilmi Kitab Khana. The Tax Policy of Islam. A brief Survey of Changes in Economic Structure and Conditions Since the Holy Prophet (regarding Transport / communication. Welfare consumption and limits. Resources for Development. Social Justice and State Meaning of Zakat. Zakat as a tool in Fiscal Policy. saving and Investment Functions in Islamic Environment. M.) 2. Business Forms. Hodder and Stoughton. Production of Goods. International Centre for Research In Islamic Economics. Topic 11: The Islamisation Process In Pakistan The Islamisation of Banks. Monetary Policy in an Islamic Framework. Topic 10: Economic Planning and Development Concepts and Objectives of Economic Development in Islam. King Abdual Aziz Univ. Western Justification of interest..H & M. Macro Consumption Function in an Islamic Economic Framework. Introductory Hints about items of Zakat. Fahim Khan. A Comparatice Study. Burden of Taxes. Welfare and Religious believes. Central Banking and Monetary Policy in Islamic Framework. M. Revenue and Expenditure Items in Modern Islamic States. Nature and Scope of Fiscal Policy in Islamic State (Taxation Policy). Books Recommended: Basic Texts: 1. Lahore (latest ed. 1986 (or latest ed. Beneficiaries of Zakat. Market Price etc. 18 . Distributive Role of Zakat and Social Justice. Quality Identification of Goods. Topic 8: Demand and Supply of Money and Banking Gold Money. Islamic View of International Economic Institutions and Modes of International Cooperation. Economic Role of Islamic State.) 3. Paper Money and Credit Money. Islamic Banking Modes for House Building Finance. Leicester. IRTI.M. Khan M. Chapra T M. Monetary Policy in an Islamic Economy.. Khurshid. Tago. (2000). Farhad & Rehnuma.References: 1. Jeddah. in Money and Banking in Islam. Anf A. The Economic System of Islam. Developing a System of Financial Instruments IRTI.. Mahdi. Leicester.. Fiscal Policy and Revenue Allocation in Islam. Islamic Development Bank Jeddah. Ahmad.Q. Umer. Nomani. 2. (latest edition). 19 . 10. Routledge Publishers. 1991. Ali. 15. 9. (1995). 3. Imam Abu Abaid Al-Qasim Muhammad A. Zakat and Social Justice. Islamabad. Mannan M. Fahim. Nuti. 17. Naqvi Syed Nawab Hyder Ethics and Economics: . The Economics of Participation. 1985. Haris. International Islamic University. Ahmad. Jeddah. 1994. Ghazanfar S. Islamic Development Bank.. London. A case study of Pakistan. Financing Development in Islam. Islamic Development Bank. 6. Justice: Introduction to Islamic Finance. Jeddah. Practice and Performance of Mudarba. University of Karachi.A. 7. Idara-tulma’arif edition. Islamic Economic Systems: – Zed Books Ltd. 11. Jeddah. 1979. Loss Sharing Based Financial System. 12.. 8. Usman. London. Islamic Development Bank.A. 14. Islamabad. 1981. IRTI. Jeddah. Human Resource Mobilization Through the Profit. Mannan M. The Islamic Foundation. Islamic Council of Europe. Medieval Islamic Economic Thoughts. Siddiqui.N. Zaki. Kita bur Kharaj. IRTI. Chapra. IRTI. D. Yusaf . (2003). Islamic Development Bank. Elimination of Riba: Institute of Policy Studies. Khurshid. 13. Islamic Book Centre. Lahore. (1995). Muslim Economic Thinking. Institute of Policy Studies. Islamabad. IRTI. Imam Abu. Ahmad. The Islamic Foundation. 1979. 5. M. M. (1995). Islamic Development Bank. Tariq ullah. (1996). (1995). Khan. 4. 16. Badawi. (1996). Kitab ul Amwal: . Agricultural Vs. Foreign Trade Promotion. the Role of Green Revolution and its Impacts: Present Status. MAJOR ISSUES IN PAKISTAN ECONOMY Topic 1: Overview of Pakistan Economy Development Experience. Shortages. Strategies to combat unemployment. Basic Needs Approach. Role of Institution in Development. Industrial Development Debate. 1970’s. Social Sectors development Vs. Human Resource Development and Emerging Issues: Population Growth. Labor Force Participation Rate and Employment Pattern. Unemployment and Underemployment. Rescheduling and its Impacts. Basic Needs. Deficits and Role of Foreign Aid. Identification of Issues: The era of 1950’s. High Retun Sectors: Growth trade off. Forecasting Manpower Needs and Employment. Industrial Development Policies and Strategies. Topic 3: Agriculture and Industrial Development: Emerging Issues Pattern of Agricultural and Industrial Development. Agricultural Adequacy. Neglects and Successes: Mobilization of Domestic Resources. Debt. Definitions and Approaches to Measure Poverty: Income Approach. Growth Strategy. Evasion of 20 . Deficit etc. Industry: Development Debate. Good Goverence. Value Added: Manufacturing Goods Vs. Poverty of Participatory Index (POPI). and Social Action Plan (SAP) . Agriculture Vs. Income Distribution. Approaches. Primary Goods Production. Debt Management in Pakistan and Its Impacts. Emergence of Economic Issues. Cutting nondevelopment Expenditures. Topic 6: Poverty and Income Distribution Pattern of Income Distribution: Rural and Urban. Poverty. Strategies to combat with High Debt: Saving Policy. Sectoral Terms of Trade. 1960’s. 1980’s 1990’s and 2000’s. How to Combat Poverty. Development of Large and Small Industries. Topic 5: International Debt and Dependency Concepts of Foreign Aid and Debt. Expenditure Approach. Borrowing Vs. Debt Modeling and Future Implications. Employment Pattern and Unemployment Sectoral Priorities and Development Issues. Policies and Outcomes. Criteria to Measure Unemployment / Underemployment: Time Criterion. Domestic Reserve Mobilization (failure). Structural Change and Sources of Growth. its Role and Critical Review. Major Targets of Develop Plans and Emerging Issues. Debt Saving and its Impacts. Unemployment. Growth with limited development in Pakistan. Human Resource Development. Land Reforms and Its Impacts. Productivity Criterion and New Index of Unemployment: Application to Pakistan and Empirical Evidences. Topic 4: Sectoral Development. Topic 2: Development Planning and Resource Mobilization Agricultural Development Policies and Priorities.Paper 6. Agricultural Price Policy and Income Tax. Size of Foreign Debt. Labor Intensive Investment: Education / Training etc. Social Action Plan and its Impact. Zaidi. Lahore (2004). 1988. (1999). Karachi (2000). Human Resource Development and Management in Pakistan. 2004. Reforms and Further Needs. Factors Productivity Issues. Karachi: Oxford University Press. 9. Khan. Akbar. Lahore (1989). Expected Impacts of WTO and Challenges. WTO and Trade Liberalization in Pakistan. Ferozsons. Market Access and Health Related Rates. Terms of Trade Issues. Issues in Pakistan Economy. Chaudhary M. Press. Policies to Combat Inflation and their Impacts. Trade Performance. Mahbool-ul-Haq Centre for Human Development (MHCHD). Karachi. Instability and its Impacts. Poverty Profile of Pakistan. Aslam and Ahmad Eatzaz: Globalization. Foreign Trade Deficit and Emerging Issues Sources of Inflation in Pakistan. 8.. Lahore. Recommended Books: 1. Aslam. 7. World Development Reports. Pakistan: The Economy at the Gross Roads – Past Policies and Present Imperatives. 50 Years of Pakistan’s Economy – Traditional Topics and Contemporary Concerns. (1989) Oxford University Press. Saeed.Human Development In South Asia. 6. Ishrat Hussain. Annual Report. 2. -------------. 2001-2002. Allied Book Centre.Policies / Strategies to Combat Poverty and Improving Income Distribution: Critical Evaluation. Child Labor. Oxford Univ. Topic 7: Inflation. The Economy of Pakistan. Press. Chaudhary M. 5. Oxford Univ. Policies to Combat Deficit and Trade Instability. 4. Karachi. 10. Khawaja Amjad.. Shahrukh R. Neglect of Human Resource Development. FerozSons. Oxford Univ. WTO and Its Impacts. Press. World Bank. Perspective on Development Planning In Pakistan.. Aslam M. (Note: Teacher(s) must assign latest research papers pertaining to each topic) 21 . 3. Ohlin (H. Newly Industrializing Countries (NIC’s) and Footloose Production Process.T) / Deterioration: Uniform Growth at given T. INTERNATIONAL TRADE THEORY AND FINANCE A) International Trade Theory Topic1. Transfer of Capital.O. Cartels and International Trade Monopoly and Import Competition. Comparative Advantage. The Product Cycle. 22 . Overview of Comparative Advantage and Pattern of Trade. Export Opportunities. Impacts of Rise in Exports Demand. Product Differentiation and Monopolistic Competition. Supply and Pattern of Trade. Heckscher.O) Model. Topic 3. Technology and Factor Endowment Ricardian Trade Model. The Elasticity of Exports Demand and Balance of Payment. Transfer of Resources: Neutral Case. Absolute Advantage. Factor Intensity Comparison.T. Free Trade and Income Distribution. and Factor Intensity Reversal. A.M. WTO and Gains from Technical Progress: Impacts on Prices. NIC’s and H. Immerizing Growth. Gains from Trade. Technology. WTO and Factor’s Movements and the Commodity Movement. Increasing Opportunity Cost. Importance and Bases of Trade Why Study International Economics? The Changing World and Interdependence: Basis of Trade. Relative Demand. Topic 2. Markets. Gains from Migration. Competitiveness and Market Share. National and World Gains from Trade. World Production and Gains. Factor Endowment and Heckscher – Ohlin Theory Output and Factors Rewards in 2*2 Model. Dutch Disease and its application. Multinationals Firms and Foreign Direct Investment. Part II Paper 1. Rypecksy Theorem and its critical review. Dumping / Discrimination and WTO. Output Growth and Terms of Trade (T. Critical Analysis of Traditional Trade Thories. Comparative Cost and Trade Pattern. Costs. Growth and Trade International Trade and Shift in Production Function. Factor Price Equalization. Topic 5. Equilibrium Production and Consumption: Non-traded and Tradeables. Marginal Physical Product and Production Possibilities. Topic 4. Transfer of Resources and Transfer Problem. Skill and other Gains. Factor’s Prices and Commodity Prices. Substitution and Income Effects. Production Possibilities with Diminishing Returns.O. Offer Curves and Free Trade Equilibrium. The Role of Demand.O Theorem. The Transfer Problem: Marshall Plan and Transfers. International Wage differentials and Productivity. Technical Progress and International Gains. Disagreements on Free Trade: Overview of Emergency of International Trade Issues. Brief Introduction of Tariff and WTO Laws. International Institution: Trade. WTO and B. Impacts of Tariff on Government Revenue.R. Role and Major Activities of IMF. Monetarist Critique to the Keynesian Closed Economy Model.O.P. Role of IMF in B. Interest Parity Theory.P Support.P. B. B. Effects of Stabilization Policies. Elasticities of Exports and Imports and Impact on B.O. Empirical Tests of Monetary Approach to the B. Growth with Protection vs. Forward Exchange Rate Policy. A Random Walk Model of Payment Imbalances. Voluntary Export Restrictions and Their Impacts. Speculators. Rate Instability.O. Loan Mechanism. Capital and B.O. Fiscal Policy and Temporary Payment Imbalances. The Marshall. The Optimal Tariff.O. Optimum Interest Rate. Adjustment with Short-run capital Flow. Exchange Rates and Balance of Payments (B. Free Floating Exchange Rate. Tariff. Impacts of F.O. Topic 8. The Theory of Spot Exchange Rate Determination.P.O.O. T. B) International Monetary Economics and Finance Topic 7. Euro-Dollar.P Support and Stabilization. Monetary and Fiscal Policy with Fixed Exchange Rates.E. Introduction of International Institutions. Open Economy: Monetary and Fiscal Policy Monetary and Fiscal Policies: Internal and External Balance.O. Determinants of Foreign Exchange Rate.T Production and Welfare. Hedgers and Traders. Problems of Small Country: Fixed Exchange Rate. Methods dealing with undesired Short-run Capital Flow. Voluntary Quota. Purchasing Power Parity.R Market. Managed Exchange Rate and Critical Review of The Fiscal – Monetary Mix Models. Nominal and Effective Rates. Subsidies and Quota. Welfare impacts.E. Free Trade Gains and WTO. Price and Demand for Imports. Capital Flow and Speculations.E. Managed Trade. 23 .Larner Conditions. Balance of Payment Effect.Topic 6. Monetary Approach to B. IMF Credit Facilities.P) Purchasing Power Parity (PPP): Non-Trade Goods.O. Dynamic Theory of Interest and Exchange Rate. Anti-dumping Duties. Impact of Tariff on Domestic and World Welfare. Tariff and B. Topic 9. Tariff and Distribution of Income.O. Monetary Policy and Permanent Payments Imbalances. Dollar Exchange and Impacts. Test of Exchange Rate Instability. Forward Exchange Market. Foreign Exchange Market and Exchange Rate Determination Foreign Exchange Rates (F. Success and Failure of WTO Agenda. WTO: Injury.P. Efficient F. Topic 10.P: Income Absorption Approach to B.R): What it represents? Real. Tariff and Second Best Choice. Quantitative Restrictions.P. Trade Diversion and Preferential Arrangements.O. Interest Arbitrage. Quota and Trade Policies Tariff and Small Country: Effects of Tariff.P. Critical Review of the Modern Theory and Adjustment Mechanism. The Optimum Quantity of Reserves.P Support. Value of SDRs. Boston. Sodersten B. Blocks. Issues relating to the Contributions of International Financial Institutions and Their Evaluations. Free Trade will it be? Issue of “Are Free Trade Gains more than Restricted Trade”? Emerging Regional Trading. Dumping. B. Special Preference and their Impacts. and Geoffry Read. Special Status of Developing Countries and Net Food Importing Countries. Peter Holinder & Thomas A. Donomick Sal Vatore B. Chacholiades. WTO Rules: Sanitary. Why disagreement on International Movement of Labour? Welfare Impacts of Labour Movements. McGraw Hill Book Company. Prentice Hall.P Deficit. Competitiveness Issue. WTO and Fair Trade / Free Trade. MacMillan Press Ltd.O. Why necessary to Join WTO? WTO: Major Trade Rules and Their Expected Impacts on Trade. Phytosanitary. AntiDumping etc Rules and Emerging New Issues and Their Impacts.. International Economics. International Debt Problem. Losses of National Sovereignty. Pugel..P. New York. E. Caves Richard. Issues of Developing Countries: Level of Development. Major Contemporary International Economic Issues: WTO: GATT and Emergency of WTO. and Jones Ronald W. International Economics. Little. International Economics (Latest Edition). 2. 24 ... Illinois. how much and how long? Centre-Periphery Theory. Miltiades.. 9th Edition 1996. World Trade and Payments: An Introduction. 4. 3. Terms of Trade Issue. 6. Toronto. Are Free Trade Gains more than Restricted Trade? Gains for whom.. Why necessary to Join WTO? WTO: Expected Impacts on Trade.. Is there need to Reform International Institutions? Monetary Integration and Their Impacts. Liberalization and B. 5. London. (1994).. Grubel Herbert C. Motive for Capital Movement: Return and Risk Diversification. Protections under WTO Rules. What Counts for wage Differential Between Primary Goods Producer and Value Added Goods Producer. Brown and Company. (Latest Edition) Richard D.O. Honewood. Can Developing Countries Compete and Gain from Trade: Terms of Trade due to Demand Pattern and its Impacts. International Movements of Factors and Welfare: Impacts / Issues Facts on International Capital Flow: ASEAN Crisis and Role of International Institution and Criticism.Topic 11. Irwin Inc. International Trade Theory and Policy (Latest Edition). Growth and Competitiveness. International Economics. Latest Editions. WTO: GATT and Emergency of WTO. Competitiveness and Trade Stability: World Income Distribution and Free Trade. Factors of Production and Price Equalization Issues. Topic 12. Basic Readings: 1. Oxford. World Bank. Boston. and Richardson David J. Multinational Corporations: The Political Economy of Foreign Direct Investment. Report 1999. Massachusetts. 8. Additional Readings: 1. New York. Oxford University Press. 1986. (1986).. Addison Willey (1998).7. International Economics: Theory and Policy. The Global Competitiveness. Oxford University Press. World Economic Forum. Krugman and Obstfeld. Toronto. 2. Little Brown and Company. Toronto. Lexington Books. 25 .. (1985). 3. Baldwin Robert L. World Development Report. International Trade and Finance. Moran Theodore H. Lagged and Distributed-Lag Variables Errors in variables.Methods for detection of Heteroskedasticity. Testing the significance of the model as a whole. Variance of conditional forecast error. estimation. Time as a variable. Estimation from grouped data. Remedial measures for Autocorrelation. Topic: 5 Autocorrelation What is Autocorrelation and its Causes? Consequences of Autocorrelation for OLS estimation. Consequences of Multicollinearety problem. Measures for evaluating the forecasting power of a model. Remedial measures for Multicollinearety problem.Paper 2. Exogenous lagged variables. Topic : 3 Multicollinearety What is Multicollinearety? Distinction between perfect Multicollinearety and less than perfect Multicollinearety (Multicollinearety problem). Topic 7: Errors in Variables. Methods of estimation of lagged models. Grouped Data. Dummy variables. (c) The General Linear Regression Model (GLRM) Estimation of GLRM by OLS through Matrix Approach Var-Cov matrix of estimated Coefficients (d) Evaluating an Estimated Linear Regression Model Testing the significance of individual coefficients. Topic 6: Forecasting with a Single Equation Regression Model What is forecasting and what are its various types? Important features of a good forecast. Topic: 4 Heteroskedasticity What is Heteroskedasticity and what are its causes? Consequences of Heteroskedasticity for OLS estimation. Computation of elasticities and standardized coefficients Using R2 as a measure of ‘Goodness of Fit’ and some roblems with its use. Statistical models Ingredients of econometric modeling Specification. ECONOMETRICS: THEORY AND APPLICATIONS Topic 1: Introduction Definition and scope of econometrics. Econometric models vs. verification or evaluation and forecasting. methods for detection of Multicollinearety problem. Endogenous lagged variables. 26 . Methods for detection of Autocorrelation. Remedial measures for Heteroskedasticity. 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 unconditional forecast error. Time as a Variable. (b) The Multiple Linear Regression Model (MLRM) Estimation of MLR model by OLS and its assumptions Interpretation of estimated coefficients and their economic meanings. Dummy Variables. Gujrati. Instrumental variables method of estimation. 9. McGraw Hill. pages 81-93. Madnani. Techniques and Applications. The identification problem. Abadir (2002) Notation in Econometrics: a proposal for a standard. 27 . G. 1978 6. Econometric Journal. Randomly Varying Coefficient Models. Econometrics.K Introduction to Econometrics Principles and Applications. R. (Latest Edition) 8. Dummy Trap and its detection. 3rd Edition. J. 5. 3. 1978 . Topic 11: Varying Coefficient Models: Causes of Coefficient Variation. pages 76-96. Checking the identification state of a model or of a particular equation in the model by Order Condition. Comparison of forecasts based on ARIMA and Regression Models. Abadir and Jan R. 71. McGraw Hill Inc. A. D. Identifying restrictions. Koutsoyiannis. Econometrica.Vol. ” McGraw Hill. McGraw Hill.M. Two-stage Least Squares Estimation. Wonnacot. 1992. Topic 12: Time Series Econometrics ARIMA Models. 2. 3rd Rubenfeld Edition. Identification and methods of estimation. Latest edition. John Willey and Sons. 3. Cambridge University Press. Research Articles: 1. Unit Roots and Co-integration. Griffiths. Don Andrews (2003). 9. 1993 2. & Kim Unit Roots. Topic 10: Consistent Estimation of Parameters of Simultaneous Equations Models Indirect Least Square Estimation. Basic Econometrics . Printice Hall. N. 675-712. issue 1. Memory Parameter. 7. A Bias-Reduced Log-Periodogram Regression Estimator for the Long Run. Judge. Theory of Econometrics. Vol. New York & Wonnacot. Co-integration and Structural Change. (2). Suggested Books: 1. Implications of the identification state of a model. 10. Magnum (1993) OLS Bias in a Nonstationary Autogregression. J. Tests for identifying restrictions. Systematically Varying Coefficient Models. Econometric Models. New York. McMillan. 1984 4. Intrilligator Econometric Model.Topic 8: Identification The problems of identification. issue 1. bogus equation and reduced from approaches. J. Formal rules for identification. The Theory and Practice of Econometrics. Topic 9: Simultaneous Equations Models Why Simultaneous Equation Models? Various Types of simultaneous equation Models. John Wiley. 1998. Maddala. Maddala. Econometric Theory. Econometrics.J. E. 1978 5.S. J. Johnston. Identification and Multicollinearity. Pindyck & Econometric Models & Economic Forecasts. Luc. Bardsen. Estimation of Limited Dependent Variable Models with Dummy Endogenous Regressors: Simple strategies for Empirical practice. Review of Economic Studies. 5. Bonal. 58 (2). (1991). (3). Review of EconomicStudies. 483-507. 8. (3). 277-97. 537-59. Some Tests of specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equation. 2-16. Stephen. (1999). 221-31. 19. Joshua. Bauwens. (1). (2001). Manuel.4. Empirical Economics. Journal of Business and Economic Statistics. 59. Arellano. 12. 28 . 6. Gunnar. 24. (2). Angrist. 7. Roy. Estimating End Use Demand: A Bayesian Approach. (1992). (1994). Journal of Business and Economic Statistics. Female Labour Supply and On-the –Job Search: An Empirical Model Estimated Using Complementary Data Sets. Economic theory and econometric dynamics in modeling wages and prices in the United Kingdom. Structuralist’s View Point. Characteristics of LDC’s. Industrialization and its financing mechanism. Lewis’ Model of surplus Labor. Adam Smith and Competitive Capitalism.Classical and Neo-classical Theories. Problem of Sectoral Dualism. Provision of Input. Each topic must be prepared and analyzed critically. Part: A Theoretical Foundations and Sector Specific Issues: Topic: 1 Scope and New Developments Definitions: Economic Development and Growth. Models of Employment & Unemployment: Time Criterion. Human Resources as a source of growth and their contributions. Why the whole world is not developed? Topic: 2 Major Theories of Development . Why Green Revolution? The Spread of Green Revolution in Pakistan and its Status / Contributions. ASEAN Crises. Land Holdings. Sources of borrowing. Balanced and Unbalanced Growth. Debt buy back etc. Quality of Life Index / HDI etc. Education and Human Capital Demographic Transition. Green Revolution and it’s Performance. Role of Agriculture: Market for Industrial Output.Paper 3. Dependency Theory. Historical overview of world development and emerging major issues pertaining to Less Developed Countries (LDC’s). Students must prepare critical review of topics. productivity growth. Debt Cycle Theory/Stages. Debt laffer Curve. Identification of Development variables. etc.. Per Capita Income approach. Industry: Development Debate. Complementarity. and Competitiveness. Vicious Circle of Poverty. Scope and Significance of Development Economics. Measurement of Economic Development and Growth. Debt Problem of LDC’s and South 29 . Market Friendly Approach. Income Convergence/ Divergence. DEVELOPMENT ECONOMICS: THEORY AND POLICY Note: Students are expected to study latest editions of the recommended books. and Employment generation Strategies/Techniques. Underemployment problem. food. Terms of Trade Issue and Subsidies.. Big Push Theory. Stages of Economic Growth. Latin American Debt Crises. New Growth Theory. Transforming Agriculture. Need for Industrialization. Endogenous Growth Theory: New growth Theory. At least two research papers pertaining to each topic must be comprehended. Aid / Assistance Why international borrowing? Two Gap Model. Aid commitments and disbursement. Topic: 3 Agriculture and Industry Agriculture vs. The course content provides a guideline. Part B: International Development Issues and Debates Topic: 5 International Debt. Debt Burden: Debt Servicing. Topic: 4 Population. Any aspect of the topics may be asked in the examination. Productivity Criterion and New Index etc. Rains’ Fei Model and its critical review. Investment in education and returns. Transfer of Technology: Ways and Means. Debt rescheduling etc. Trade Instability. Flow of FDI and its contributions. Empirical evidences on poverty. 30 . Product Cycle. FDI and Development Transnational Corporations (TNC’s): Objectives. WTO and LDC’s. saving mobilization/Domestic resource mobilization. Strategies and tools to combat poverty. Foreign Direct Investment (FDI) and Its Determinants/Role. Measuring environment values. Redistribution with growth. Trade as an engine of growth. Foreign Exchange Constraints and Balance of Payment deficit. Basis for trade and benefits: Gains from Trade: Static and Dynamic Gains. Topic: 6 WTO. Poverty concepts/definitions. Technology Centered Development and Appropriate technology issue. Industrialization and its environmental cost. How to combat income inequality. Long term cost of TNC’s. Regional Trade Associations (RTA’s): their role and contributions. Poverty Indicators. Policies to combat debt problem: Forecasting debt and solution for debt burden. Global integrated production system: TNC’s and Globalization. Determinants of exports growth. Poverty by socioeconomic groups. Role and Contributions.. Comparative Advantage. Use of Pesticides and Environmental Impacts. Relative Poverty. Topic: 7 Transnational Corporations (TNC’S). Aid. Income approach. Expenditure approach. Poverty of Opportunities Index (POPI) and Calorie-based approach etc. Topic: 8 Poverty and Income Distribution Definitions and Measurement of Poverty/Poverty Line. Natural resources degradation. Topic: 9 Environment and Development Model of Environment and Economic Activity. Social Action Programs and Poverty alleviation. Foreign Direct Investment (FDI) and TNC’s. Liberalization of Trade and its impacts/gains etc. International awareness about environment. Debt Overhang and threat to growth. Market Based Approach and Externalities. Debt Modeling and Forecasting Future Implication. Absolute Poverty. Transfer of Technology: Sources & Need. Distribution of gains from Trade liberalization. Role of GATT and its Failure.Asia. Revealed Comparative Advantage and Competitiveness. impacts and policies to combat poverty. Liberalization and International Trade Trade vs. Sources. Growth and Income Inequality in the world. Cost of Pollutions/Environmental degradation. Basic needs approach. Deforestation and Macroeconomic Environment. Deforestation and Renewable Resources. Basic Needs. production and need for Reforms. (1992. 31 . Mahboob-ul-Haq Center for Human Development (MHCHD). Herrick B. (latest eds. (2003). Latest Edition. 8. eds. Palgrave Publisher. (Latest Edition).. Aslam and Hamid. A. and Lall. Chaudhary M.. 10. G. Balasubramanyam V.). and Kindleberger C. Taylor and Francis Group. Meier Gerald M. Press. An Introduction to Modern Theories of Economic Growth. (Latest Issue). McMillan. Ferozsons. London. Ecology and economic progress. The Process of Economic Development. Topic: 10 Growth Models Harrod-Domer Model. London/New York. Introduction to Development Economics. Kaldor’s Model of Distribution. Amsterdam (1988.. Heinemann. 4. Cypher J. Todaro M. eds). (2003). New York. O. Economic Development. and Dietz James L. Routledge. Yale University. Joan Robinson’s Model of capital accumulation. London/New York. 7. 2. Islamabad. Urbanization and environmental issues. North Holland. Current Issues in Development Economics. Thirlwall. 6.. and Srinivasen. Hirshman A.. I & II. Annual Reports. Chenery H. London. Technical Change and growth Model. International Agencies: Environmental concerns and programs. Hand Book of Development Economics.P. 9.* vol. A. 5.. 36 3. Strategy of Economic Development. Tayl or Francis Group. With Special Reference to Developing Economies 7th edition. Leading Issues in Economic Development. 12. M. Economic Development in the third World. Growth and Development. S. Lahore. 11.. Sustained development. Jones H. Routledge. (1960). A Profile of Poverty In Pakistan.Economic thoughts and Environment. (1999).. 13. Human Development in South Asia. Oxford University Press. Recommended Books: 1. B. (In Collaboration with UNDP). ------------.(1999). Human Resource Development and Management in Pakistan.). (2004). McGraw Hills. McMillan . Saving-Investment and Golden Rules. Ghatak Subarta. P. Model of Steady State Growth. Growth without Development. World Bank. (2001). Yotopolous Pan A.14. 1995. Human Development Reports . World Development Reports. 1990. UNDP. 2000/2001 and 2004. Empirical Investigation (Latest Issue). 16. Harper and Row Publishers.. William. Easterly. and Nugent Jeffery B. London/New York. 15. Annual Reports. 1998/99. A Case Study of Pakistan.. 1992. Annual reports.* McGraw Hills. Van Den Berg H. World Bank. 1991. 1987. 32 . 17. 1994. 18. Economics of Development. 1986. Economic Growth and Development. Experimental Research Design. Personal Interviewing. Types of Secondary Data Sources. and Data Analysis. the Survey Situations. Birchenhall C. Vision Survey: Interpretation of Replies. Conclusion and its basis. Simulation. Recommended Books: 1. Organization of Research Paper.. Report Writing. the process of field research. Data Research Procedures. the Questions and analysis of Research Proposal. the Nature of Secondary Data Sources. Research Methods in Social Relations. Johnson. Use of Secondary Data. Experimentation and Simulation.. Sample Design. Experimentation and Simulations. 6. Scaling. the Characteristics of Sound Measurement. Executive summary and abstract of a report. McMillan Publishing Co. How to format and Write country Research Report. Stages of research process. Qualitative and Quantitative Approaches. Data Preparation. Boston. Holt. Tokyo (Latest edition). Special Data Problem. Questionnaire Development. Empirical and theoretical research. Scale Construction. Mathematics for Modern Economics. Data Collection Methods. the Nature of Sampling. Interviewing by mail. (latest edition). data. Writing and editing of research Report. Herifaq Publishers. Lawrence. Field Research Designs. Kidder Louise H. (Latest edition). Allyn and Bacon. Vision survey and communication techniques. Evaluation of Research Work. the Development of Measurement Tools. Basil Black Well. the Instrument Development Process. Measurement. Telephone Interviewing. Data Presentation. Theory and basis of research.. Exploratory Research. Research Report Format. Research techniques in social sciences and their limitations. Casual Inference. 4. Choice of Research Technique. 2. P. 33 . Data collection. the Use of Secondary Data. Observation. Tabulation. (1997) Social Research Methods. Static and Dynamic Optimization. Data Presentation and Analysis: Elements of Analysis. Glenew Research Methodology for Economists: Philosophy and Practice. Observation. Survey Instruments and Field Procedures. Response Methods. Methods of communication in survey. observations. New Delhi. The Research Report. Lambert. Observation Designs. Holt-Sounders Japan Ltd. Art of asking questions and getting quality information. Measurement Scales. the Nature of Scaling. Thinking. theory and estimation and related problems. Measurement and Scaling. and Grout P. Rinehart and Winston. 5. Identification of problem/issue.Paper 4: RESEARCH METHODOLOGY Importance of Research Methodologies. (1985) Advanced Mathematics for Economists. Field Procedures. 3. Evaluating Secondary Data. Preparation of Research Proposal Questionnaire. Neuman W. Survey Instrument Designs. Statistical Sources. M3. (1994). M2. G. Young Pauline V.. John Willey & Sons. Research Methods for Business. The Conduct of Monetary Policy: Goals and Targets. Classical Dichotomy and Keynesian Integration of Nominal and Real Sectors. Tools of Monetary Policy: Three Major Tools of Monetary Policy. Topic 3: Demand for Money Quantity Theory of Money. Discount Window Loans and Open Market Operation. Prentice Hall Inc. Transaction Theories of Demand for Money. Topic 2: Role of Money in the Economy Debate on neutrality and non-neutrality of Money. Definitions of Money.7. Understanding Movements in the Monetary Base. Central Bank as a lender 34 . Demand for Money & Supply of Money. Keynesian Liquidity Preference Framework. 1: MONETARY THEORY AND POLICY Topic 1: Introduction and Development Of Monetary Mechanism Evolution of Money and Payment System. Baumol – Tobin Model of Cash Management. Explaining Depositor and Bank Behaviour: the Complete Money Supply Model. Independence of Central Bank and its role in Economic Growth. Monetarist views of Equilibrium Output. Regressive Expectation Model. Money Multiplier. Topic 5: The Conduct of Monetary Policy: Central Bank Structure and Functions of Central Bank. The drydem Press. Velocity of Money and its variability. 9. M1. Monetary Base. Money in Aggregate Demand & Aggregate Supply Analysis. Required Reserve Ratio. Sekarn. Definition of Money Function of Money & Measurement of Money. Tool of Central Bank for Money Control. Keynesian Vs. (1992). Zikmund William. Uma. Friedman’s Modern Quantity Theory of Money. Portfolio Theories of Demand for Money. Multiple Deposit Creation: Introducing the Money Supply Process. Determinants of the Money Supply: Exogenous and Endogenous. Scientific Social Survey and Research.. Role of Money in the IS-LM Framework. L etc. Friedman’s Restatement of Quantity Theory of Money: Empirical Evidence on the Demand for Money. A Skill Building Approach. Inc. Optional Paper Optional Paper. (latest edition). Advantages and Disadvantages and Impact Analysis of each Policy Tool. Employment and Prices. Sckaran Business Research Methods 8. Business Research Methods. 10. Topic 4: The Money Supply Process Monetary Base. Frederic S. Impact of Reserves on B.. 35 . David E. Stagflation & Hyperinflation. Evidence and Problems (Fourth edition). Publishers. Understanding & Measuring the Interest Rates. Money. The Economics of Money. Monetary Theory. Current Issues in Monetary and Financial Sector Reforms. 6. Perfect Mobility of Capital and Money Control.P and Exchange Rates. McCallum.. Miller. 7. Banking and Financial Markets. Patinkin Don. Real & Nominal Interest Rates. Effectiveness of Policy. Pricing Public Goods. Harper & Row Publishers. New York. Topic 8: Monetary Policy in International Framework Money Demand and Empirical Evidences. 5. Topic 7: Money and Inflation What is Inflation & Causes of Inflation? Demand – pull Inflation. Cost – push Inflation. Maturity & Volatility of Bond Returns. 4. 2. Laider. South Western. Inflation in Pakistan: Sources and Managing Policies. Conduct of Monetary Policy in Fixed and Flexible Exchange Rates. Bennett T.O. Vanish K. Recommended Books: 1. L. Monetary Economics. Targeting exchange rate. (2000). 3. Kinds of Interest Rates. Mishkin. Targeting Inflation. Financial Intermediateries. and David VanHose. McMillan. Financial Markets and Money. Interest and Prices. Sources of Inflation in Pakistan: Spiracle Evidences. (Latest Edition). Delhi. Exchange Rate and Balance of Payment. The Demand for Money: Theories. The Behavior of Interest Rates. The Distinction Between Interest Rates and Returns. Singapore. Portfolio Choice: the Theory of Asset Demand. Mishkin. Harper & Row. (1989). Optional Paper 2: PUBLIC SECTOR ECONOMICS Topic 1: Introduction and Role of Public Sector The Economic Functions and Public Goods: Allocation of Resources. Banking & Financial Markets. Inflationary Spiral. New York. Inflation as a Monetary Phenomenon The Philips Curve and Accelerating Inflation. Targeting interest rate and inflation. Addison Wesley. Infectiveness of Stabilization Policies. Money. The Risk and Term Structure of Interest Rates. (1995). Monetization of Public Debt. Harper and Row Publishers. Redistribution of Income and Wealth and Stabilization.of last Resort. Policies to Combat Inflation in Pakistan. (Sixth edition). Theory and Policy.W (1996). Topic 6: Money & Interest Rates Determinants of interest rates. Fredric S. Money in Growth Models. (2001). R. Theories of Interest Rate Determination. Managed Exchange Rate System and Monetary Policy. Vikas Publishing House. (2001). Topic 9: Inter – Government Fiscal Relations Fiscal and Economic Aspects of Federalism. The Optional Income Tax Approach. Sources and Direction of the Growth of Public Expenditures. Merit Goods. Tax Structure of LDCs. Zero Based Budget. Free Rider Problem. 36 . Public Goods and Externalities. Topic 3: Public Revenue and Taxes The Economic Case for the Public Sector to Allocate Resources: Market Imperfections. Fiscal Policy in Pakistan and its Impacts. Tax Rate Relationship. Excise and Custom Duties. Tax Efforts and Tax Collection Performance in Pakistan. Pure Public Goods. Partial Equilibrium: Tax Incidence Analysis. Progressive. Deficit and Balanced: Preparation of Budget Cycle in Pakistan. Cannons of Taxation. Exhaustive Vs. Optimum Tax and Revenue Collection. Export and Import Taxes. Marginal Propensity to Tax and Marginal Vs. Tax Base. Efforts of Public Expenditures. Federal – Provincial Fiscal Coordination. Topic 7: Tax Shifting and Incidence General Equilibrium Vs. Income Elasticity of a Tax Integral Fiscal Non-Neutrality. Determinants of Tax Shifting under Partial Equilibrium Conditions. Components of Public Expenditures in Pakistan. Wagner’s Law. Regressive and Proportional Taxes. Average Tax Rates. Topic 5: Distributional Equity in Taxation The Ability to pay and Economic benefits (received). Non-Exhaustive Public Expenditures. Kinds of Budget. Surplus. Development and Non-Development Budget and its Patterns. Microeconomic Vs. Pricing Decreasing Cost Industry. Tax Vs. Macroeconomic Regulatory Taxes. Non-tax Revenues. Deficit Financing and its Impacts. Income Elasticity of Government Expenditures. Private Goods? Semi Public Goods. Externalities and Public Policy. Tax Reforms in Pakistan and their Impacts. Role of Deficit Financing. Topic 8: Fiscal Policy: Public Expenditure and Budget Theories of Public Expenditures. Collection of Revenue and Provincial Share and its Distribution Criteria. Decreasing Costs of Production. Topic 4: The Theory of Public Goods Public and Private Goods. Impacts of Tax Shifting on Price. Income and Sales Taxes. Topic 10: Development Finance Fiscal Policy in a Developing Economy. Planning. Should Public Sector be Produced Vs. Programming Budgeting System. Topic 6: Tax Structure of Pakistan Various Kinds of Taxes and their Objectives / Performance in Pakistan.Topic 2: The Theory of Public Goods Fiscal Principles and Concepts: The Traditional Principle of Tax Neutrality is Expended Principle of Fiscal Neutrality. 7. Optional Paper. (1999). A Contemporary Application of ---. Musgrave (Latest Eds. Public Finance in Theory and Practice. Shadow prices in linear programming. Price Elasticity of Demand with Managerial applications. 2. Debt Modeling and Offer Curve. Bernard P. Govt. Economic Advisory Wing. Demand forecasting. Economics of The Public Sector. Economic relations of variables. and B..P. Graphic specification and solution. Chellieah R. Topic 4: Linear Programming Production planning for a single product Production planning for a multiple products. Optional Debt. Debt Modeling and Forecasting Debt Needs. Recommended Books: 1. McGraw Hill.Revenue and Cost in Production. Supply and Equilibrium. Musgrave R. David N. Learning curves and application. Ministry of Finance.Topic 11: Public Debt Need and Burden of Public Debt: Domestic and Foreign. W. Structure of Public Debt in Pakistan: Internal and External Debt Problem of Pakistan. Ricardian View of Public Debt. Herber. Economic optimization. Hyman. Fiscal Policy in Less Developed countries. Topic 3: Production and Cost Analysis Production functions. The dual in linear programming. W. Cost Minimization. Estimation and Forecasting The Basis for Demand. Theory of the firm. The Incremental concept in Economic Analysis. Islamabad. Cost-value-profit analysis. Economic Survey. 3 MANAGERIAL ECONOMICS Topic 1: Nature. (1996). 37 .). Cost estimation. Short run and long run cost curves. 5. Topic 2: Demand Analysis.). Simplex method of solution. (1999). Demand. The Market Demand function. Income Elasticity of Demand with Managerial applications. Scope and Overview of Managerial Economics The Nature and Scope of Managerial Economics. Public Finance. Profit maximization. (2000). Norton & Co. Rosen and Harvey S. 4. (Latest eds. 3. Harcount Brace College Publishers. Problem of Debt Servicing. Public Finance. Stiglitz E. Production function estimation. Modern Public Finance. of Pakistan. Productivity Measurement. Demand sensitivity analysis: Elasticity.J. The Managerial decision making process. 6. McGraw Hill. Total..A. Homogenous and Homothetic Production Function.. Application of Regression Analysis: Demand estimation. Marginal and Average Product. Yearly Publication. Monopolistic Competition. and P. Rent seeking and control. 2. Suggested Readings: (Books): 1. Internal Rate of Return.. (1998).. Selected Pricing Models. 5. Fundamentals of Managerial Economics. A. Mark-up Pricing Model. and P Young. (1998). Oligopoly Model. Optimal decision Strategy. Managerial Economics: Economic Tools for Today’s Decision Makers. Mansfield E. Managerial Economics. Externalities and Market Pricing issues. J.L. Decreasing cost Industry and pricing.. (10th edition) U.. Dryden Press. Adjustment for Risk in Decision Making. (2003). M. Douglas. Perfect Competition. Monopoly. W. Kent P. (1979). Public and Private Goods and their pricing mechanism. The Expected Value Criterion.S. Manageral Economics. Topic 7: A Critique of Traditional Theory of the Firm Full Cost Pricing Model. Prentice Hall. E. 7.. New Product Pricing. Optimal Capital Budget. Oligopoly. 4. 3. Price Discrimination. Modern Microeconomics. Contestable Markets. Government Policy and International Trade.. Keat. Topic 10: Capital Budgeting and Investment Pre-requisites of Capital Budgeting. MacMillan. Topic 6: Pricing Analysis and Decisions A Review of Market Structures and Basic Pricing Models. Marris’s Model of Managerial Enterprise. Application and Cases. Koutsoyiannis. Mark up pricing. Managerial Economics. M. P. (4th Edition) Pearson (2003). Risk Analysis of Decision Alternatives. Public Sector Production and Pricing of Goods. 6. Limit Pricing and Preventing entry. Monoposony and Price Product. Pappas.. 38 . Cash flow estimation. The Coefficient of Variation Criterion. W. Problem fro Marginal Priceformula. MacMillan. The Decision Tree and Joint Probabilities. Investment Criteria and Decisions. Young. Marginalist Pricing. Managerial Economics. Williamson’s Model of Managerial Discretion Topics. Monopolistic Competition. Thomson SouthWestern.Topic 5: Decision Making Under Risk and Uncertainty Introduction.A. International pricing Techniques / Strategies. Hirschey. Pricing Strategies for Firms and Market Power. Behavioral Model by Cyert and March. Theory. The Certainty Equivalent Criterion. and J. Topic 8: Managerial Theories and Models of the Firm Baumol’s Theory of Sales Revenue Maximization. Profitability-Index Criterion and other criterion. Limit Pricing Models. Topic 9. Import Competitiveness and tax. (1990). Hirschey. tariff and pricing. (1992). The Standard Deviation Criterion. The Maxima and Maximax Criterion. and Meade. Maurice. Chevalier. 10. 71-82. 9. and Westlund. Nigel.” Journal of Economic Issues 30 (June 1996): 463-473. Hack1. “Comparative Risk Analysis: Limitations and Opportunities. “Managerial Style and the Strategic Choice of Executive Incentives. Towhidual. and Bailey. Islam. 3. 8. (2002).. Goering.” American Economic Review 86 (September. 7. (2000). Managerial Economics.” Journal of Industrial Economics 44 (March 1996): 25-32. Gregory E.Nortion & co. Kehoe. (latest edition). 1996): 703-725. 2. McGraw Hill. “Demand for International Telecommunication: Time-varying Price Elasticity. 4. Peter.. 8. De Fraja. 5. Pappas. Chicago. “Forecasting the Development of the Market for Business Telephones in the UK. 11. Roy E. 39 . “Capital-market Imperfections and Countercyclical Markups: Theory and Evidence. Michael R. and Scharfstein. James A. Suggested Readings (Articles): 1. “A Theory of Commodity Price Fluctuations. Michael R. “Quality Uncertainty and Price in Monopoly Markets.” Managerial & Decision Economics 17 (January/February (1996)). D.. Dryden Press. James. Baye. Gianni.. Brigham Eugene F and Hirschey Mark. Managerial Economics: In a Global Economy (7th Edition) New York: McGraw Hills. Managerial Economics.” Journal of Econometrics 70 (January 1996): 243260. Chambers. (2001).” Journal of Political Economy 104 (October 1996): 924-957. Marcus J. Thomas. Anders H. Managerial Economics and Business Strategy.. Salvatore. Swaney. Judith A. 6..” Journal of the Operational Research Society 47 (July 1996): 906-918. “Entrepreneur or Manager: Who Runs the Firm?” Journal of industrial Economics 44 (March 1996): 89-98. David S. McGraw Hills. Agricultural Surplus. Williamson. Market Contribution. Some Criticisms of Krishna’s Method and the Alternative Approach of Behrman Perennial Crops and Marketed Surplus in Pakistan. Topic 4: Theory of Rent and the Concept of ‘Surplus’ Introduction. Product Contribution. Agricultural Technical Change and Agricultural Employment: Empirical Evidences. Economic Rent. Technological Change in Agriculture. Industry Debate of Development. Current State of Agricultural Development. The Food problem.Optional Paper 4: AGRICULTURAL ECONOMICS Topic 1: Introduction and Importance of Agriculture Agricultural Revolution. Food Safety. Mellor’s Model. Impact of Agricultural Reforms on Farm Size. Topic 7: Supply Response Introduction. Introduction to issues in Agriculture etc. Topic 3: Role of Agriculture in Economic Development A framework of Analysis. Specifically in Pakistan. Tennurial Status in Pakistan. Generation of new Agricultural Technology. Kelley. Rent and Quasi-Rent The Ricardian ‘Corn Rent. Factor-biased Technological Change and its Distributional Consequences. Some Extensions of the Share Tenancy Model. The Ranis-Fei(FR) Model. Criticism : Dual Economy Models. Present Status of Green Revolution in Pakistan: Empirical Analysis. Price-Supply Response in Backward Agriculture. Topic 6: Resource Use Efficiency and Technical Change in Peasant Agriculture Efficiency of Resource Utilization. The Rental Market. Brief Overview of Sources of Growth. Farm Size and Productivity. The Lewis Model. Green Revolution in Pakistan and Responses. Agricultural Adquecy. The Framing Environment: Natural Hazards and Economic Uncertainties. The Theory of Rent. Farm Size in Pakistan and Productivity Commercial Farms. Topic 5: Agriculture in Dualistic Development Models Introduction. Topic 2: Structure and Characteristics of Agriculture in LDCs Traditional Agriculture and Productivity. Agriculture vs. Agricultural productivity in Pakistan and use of inputs. Importance of Agriculture. A simple Supply Response Model. Supply Response in the Underdeveloped Agricultural labour Market. The Cobweb Model: An Illustration. The Jorgenson Model. Industrial development Debate. The Theory of Share Tenancy. Factor Contribution. Cheetham Model. 40 . Agricultural Resources and Technical Change in LDCs: with Special Reference to Pakistan. The Concept of ‘ Marketed Surplus’: Some Methods of Estimation. Foreign Exchange Contribution. Agriculture vs. Access to non-labor resources. Characteristics of Landownership in Underdeveloped Agriculture and Pakistan. Some Measurement Problems. Trade Policies in Developed Countries and their Impacts.. Few agricultural goods production and exports to few markets . The Compensating Financing Schemes in Pakistan. Impact of Policy Measures on Primary Product Trade of Pakistan. Objectives. A. and Experiences. Topic 10: Agriculture and International Trade Main Features of Trade in Agricultural Goods. 3. (1989). Malnutrition in Developing Countries like Pakistan and Remedial Manners. Practices. Print Associates International. with special reference to quality. Measures to Improve Marketing System in Pakistan. latest edition. The Social Impact of Green Revolution. Published 1975. The Greogie Endownment for International Peace. F & Fellir Kily. Impacts of support prices. 7. 41 . subsidies. 1971. Welfare Gains from Price Stabilization. Choice of Planning Strategy for Agriculture Development.Topic 8: Institutional Constraints and Remedial Policies Inequitable Landownership and Land Reform. Agricultural Project Planning. Agriculture and Economic Development. Pricing of Farm Produce in Pakistan. Lester. Terms of Trade Issue. Economic Strategies in late Developing Countries. Issues and problems of instability in exports. (Latest Edition). 5. Bruce. Topic 9: Population and Food Supplies The Classical Model.. 4. Lahore. New York. Chaudhary M. dumping. Prebisch’s Hypothesis. Determinants of support prices.. Integrated Commodity Agreement (ICA) Schemes. Subsidies and Developed Countries. 8. (1995). Agricultural and Structural Transformation. Suggested Readings: 1.. Sanitary and Phytosanitory rules and marketing rules etc. Izhar Sons. Islamabad. Agricultural Development and Public Policies. The Economics of Agriculture. Cartels in Commodity Trade and Welfare Gains and Losses. Lahore Vanguard Book House. Capstick Margret. Support Price Policy in Pakistan. New York. Shafi M. WTO and its implications for Pakistan’s agriculture. Khan Mahmood-ul-Hassan. Ecological Disequilibrium. Ghatak S. Karamat. 1981. Aslam. A Survey of the Literature. Synthesis of Population and Food Supply Theories. The Agricultural Self-Sufficiency Argument in Developing Countries like Pakistan. Harvester Press. The Economics of Green Revolution in Pakistan. Contra-Malthusian Model. Marketing Imperfections and Marketing Policy in Pakistan. Johnston. London George Allen Unwin Ltd. Brown. and Ingersent K. 2. Capital and Finance in Underdeveloped Agriculture.. State Trading. 6. Political Economy of Rural Development in Pakistan. and Young T. Principals of Agricultural Economics. 12. Upton Marlin. John HopkingUniversity Press. 42 . Thorbake Erike. Agricultural Development. 11. Ruttan.9. Yujiro Hayami and Vernon W. The Role of Agriculture in Economic Development. Markets and Prices in Less Developed Countries. New York. (Latest edition). 10. (1989). Agricultural Production and Resource Use. Cambridge University Press. London. Colman D. Columbia University Press (1971)..