Faculty of Social Science · 1. Alpha. C.Chiang: Fundamental Methods of Mathematical Economics. 2....

1

Faculty of Social Science

Department of Economics

2

Bangabandhu Sheikh Mujibur Rahman Science and Technology University

Department of Economics

B.S.S. Honours Syllabus

Session: 2014-2015

160 Credits The B.S.S (Hons) courses in Economics consist of total 160 credits distributed over eight

semesters in four academic years. Each academic year will be divided into two semesters, i.e.,

semester 1 and semester 2. There shall be final examination at the end of each semester. The

medium of answer in all examinations will be English. The theoretical examination of courses

less than or equal to two credits shall of 3 hours duration and courses more than 2 credits shall be

of 4 hours duration.

Summary

Course Type % Percentage Credits

Major 77.5% 124

Non-major 22.5% 36

Total 100% 160

3

Semester wise distribution of courses

First Year, First Semester Course No. Course title Hours per Week Credits

ECO100 Principles of Economics-I 3 3

ECO102 Principles of Economics –II 3 3

ECO103 Major Courses Lab 2 1

MAT104 Mathematics for Economics –I 3 3

MAT105 Mathematics for Economics –I (LAB) 2 1

STA106 Statistics for Economics –I 3 3

STA107 Statistics for Economics –I (LAB) 2 1

ENG114 English 2 2

ENG115 English (LAB) 2 1

ECO129 Viva- Voce 1

Total 19

First Year, Second Semester Course No. Course title Hours per Week Credits

ECO150 Intermediate Microeconomics 3 3

ECO152 Agriculture and Rural Economics -I 3 3

ECO160 Banking and Finance 3 3


AIS164 Business, Finance and Accounting 3 3

SOC166 Principles of Sociology 3 3

ECO169 Viva- Voce 1

Total 17

Second Year, First Semester Course No. Course title Hours per Week Credits

ECO200 Intermediate Macroeconomics 3 3

ECO202 Agriculture and Rural Economics-II 3 3

ECO210 Economic Systems and Development Patterns –I 3 3


MAT214 Mathematics for Economics –II 3 3

MAT215 Mathematics for Economics –II (Lab) 2 1

STA216 Statistics for Economics –II 3 3

STA217 Statistics for Economics –II(Lab) 2 1

ECO219 Viva- Voce 1

Total 19

4

Second Year, Second Semester Course No. Course title Hours per Week Credits

ECO250 Economy of Bangladesh –I 3 3

ECO252 Economic Systems and Development Patterns –II 3 3

ECO260 Development Economics –I 3 3


MAT264 Mathematics for Economics –III 3 3

MAT265 Mathematics for Economics –III (Lab) 2 1

STA266 Statistics for Economics –III 3 3

STA267 Statistics for Economics –III (Lab) 2 1

CSE274 Computer Applications in Economics 2 2

CSE275 Computer Applications in Economics (Lab) 2 1

ECO279 Viva-Voce 1

Total 22

Third Year, First Semester Course No. Course title Hours per Week Credits

ECO300 Econometrics-I 3 3

ECO301 Econometrics-I (Lab) 2 1

ECO302 Public Finance- I 3 3

ECO310 Development Economics –II 3 3

ECO312 International Trade and Finance –I 3 3

ECO320 Economic Thought-I 3 3

ECO322 Bangladesh Studies 3 3


ECO329 Viva-Voce 1

Total 21

Third Year, Second Semester Course No. Course title Hours per Week Credits

ECO350 Econometrics-II 3 3

ECO351 Econometrics-II (Lab) 2 1

ECO352 Public Finance –II 3 3

ECO360 Economic Planning 3 3

ECO362 International Trade and Finance -II 3 3

ECO370 Economic Thought –II 2 2

ECO372 Labour Economics 3 3


ECO379 Viva-Voce 1

Total 20

5

Fourth Year, First Semester

Course No. Course title Hours per Week Credits

ECO400 Advanced Microeconomics 3 3

ECO402 Economy of Bangladesh-II 3 3

ECO410 Research Methodology –I 3 3

ECO411 Research Methodology –I (Lab) 2 1

ECO412 Project Appraisal 3 3

ECO413 Project Appraisal (Lab) 2 1

ECO420 Resource and Environmental Economics –I 3 3

ECO422 Demography 3 3


ECO429 Viva-Voce 1

Total 22

Fourth Year, Second Semester

Course No. Course title Hours per Week Credits

ECO450 Advanced Macroeconomics 3 3

ECO452 Health Economics 3 3

ECO460 Research Methodology –II 3 3

ECO461 Research Methodology –II (Lab) 2 1

ECO462 Resource and Environmental Economics -II 3 3

ECO470 Financial Investment and Security Analysis 3 3


ECO472 Economics Field Work 2

ECO479 Viva-Voce 1

Total 20

6

Detailed Syllabi

ECO100: Principles of Economics-I

100 Marks [70% Exam., 20% Quizzes/Class Tests, 10% Attendance]

3 Credits, 39 Contact hours, Exam. Time: 4 hours

Note: This course is so designed that the students without any previous knowledge of Economics

may acquaint themselves with the basics of microeconomic concepts and theories and may

prepare themselves for further studies. The course is mainly conceptual and uses simple

graphical and algebraic tools.

1. Definitional problems of Economics. Thinking like an economist. Microeconomics and

macroeconomics. Scarcity and choice. Opportunity costs. Production Possibility Frontier.

Fundamental problems of Economic organizations. Market mechanism and invisible hand of

the market. Scientific Methods in Economics: Deductive and abstract, inductive methods.

Why Economists disagree?

2. Demand and supply: Demand and supply schedules, laws of demand and supply, the

demand curve, movement along the curve vs. shift of the curve, equilibrium with supply and

demand curve.

3. Demand and consumer behavior: choices and utility theory, the paradox of value, law of

diminishing marginal utility, why the demand curve slopes downward, consumer surplus,

normal, inferior and Giffen goods, from individual to market demand.

4. Application of demand and supply: Elasticity of demand and supply, cross, price and

income elasticity of demand, the paradox of bumper harvest, impact of tax and subsidy on

price and quantity, price floors, and ceilings, the minimum wage controversy.

5. Theory of production: The production function, fixed factors and variable factors of

production, short-run and long-run, total, average and marginal product, the law of

diminishing returns, returns to scale.

6. Analysis of cost and profit: Fixed and variable costs, total, average and marginal costs, the

short-run and long-run, relationship between average cost and marginal costs, accounting

profit and economic profit, value added concept

7. Market structure: Perfect competition: Characteristics of perfect competition, profit

maximizing conditions, profit, losses, break-even and shut down conditions, the firm‘s

supply curve, industry supply curve, the short-run and long-run equilibrium, efficiency of

perfect competition.

8. Market structure: Imperfect competition: Sources of market imperfections, monopoly

equilibrium, price discrimination, natural monopoly and its regulation, deadweight loss due to

monopoly, monopolistic competition and oligopoly.

7

References

1. Paul A. Samuelson and William D. Nordhaus,nEconomics, McGraw-Hill/Irwin, 19th

edition

2. Koutsoyiannis: Modern Microeconomics

3. Mankiw: Principles of Microeconomics

4. Frank.R, Bernanke: Principles of Microeconomic

5. Domonick Salvatore, Microeconomics: Theory and Applications, 4th edition, Oxford

University Press, 2003

ECO102: Principles of Economics-II

100 marks [70% Exam., 20% Quizzes/Class Tests, 10% Attendance]


1. Introduction to macroeconomics: Inflation, unemployment, the natural rate of

unemployment, Phillips curve, business cycles, budget deficit and international debt, The

CPI, PPI and the GDP deflator.

2. National Income Accounting: GDP, GNP, NDP, NNP, NI, Nominal and real GDP,

Potential and actual GDP, Circular flow of national income; injections and leakages. Three

alternative ways of measuring GDP, The accuracy in measuring GDP.

3. Aggregate expenditure decisions: Private consumption, private investment, government

purchases of goods and services, net exports. Autonomous and induced expenditure.

Equilibrium expenditure and output. The autonomous expenditure multiplier. Relationship

between the aggregate expenditure and aggregate demand curves; derivation of the aggregate

demand curve.

4. Consumption Demand: The importance of consumption in aggregate demand; consumption

functions: the absolute income hypothesis and the relative income hypothesis.

5. Aggregate demand and aggregate supply: Short-run and long run aggregate supply. Shifts

in aggregate demand and aggregate supply curves. Macroeconomic equilibrium.

6. Monetary Policy: Monetary policy and its types, Instruments of monetary policy, Monetary

policy transmission mechanisms, Relative effectiveness of monetary policy, How banks

create money, Demand for money.

7. Fiscal Policy: Fiscal policy and its types, Instruments of fiscal policy, Fiscal policy

multipliers, Objectives of fiscal policy, Effectiveness of fiscal policy.

8. Exchange Rates and the balance of payments: The balance of payments (BOP) account.

BOP equilibrium. The demand for and supply of foreign exchange. Exchange rate regimes.

8

References

1. Parkin, Macroeconomics, M Addison-Wesley, 1990/latest edition.

2. Samuelson, P.A. and Nordhaus, W.D. Economics, 16th

edition, Irwin/McGraw-Hill, 1996.

3. W. H. Branson, Macroeconomic Theory and Policy, 3rd

edition, HarperCollins Publishers

India, Ltd 1994

4. R. Dornbusch and S. Fischer, Macroeconomics, 7th

edition, McGraw-Hill, 2000

5. John B. Taylor and Imad Moosa, Macroeconomics, 2nd

edition, John Wiley, 2002

6. Mankiw, G., Macroeconomics (5th edotion) , WorthPublishers.

ECO103: Major Courses Lab

100 Marks [60% Practical, 30% Quizzes/Viva-Voce, 10% Attendance]

1 Credit, 26 Contact hours

Laboratory works based on ECO100 and ECO102

MAT104: Mathematics for Economics-I



1. Introduction: Mathematical vs. non-mathematical Economics, Some basic concepts,

variable, constants, parameters, laws of indices, inequalities, equations, the number system.

2. Coordinate Geometry: Straight line, distance between two points, circle, parabola,

rectangular hyperbola, solution of equations by graphs, some applications.

3. Basic Algebra: Solutions of quadratic and cubic equations; exponential functions; logarithms;

laws of logarithms and indices.

4. Functions and Graphs: Concept of function, its classification and types, the graphs of

functions; linear, quadratic and cubic function, market equilibrium and its solutions, linear

and non-linear models. Solution of quadratic and cubic equation.

5. Elementary theory of sets: Sets and their Characteristics, operation on sets, venn diagram,

associative and distributive laws of sets.

6. Elementary Static Analysis in Economics: Meaning of equilibrium in partial market and

general market; effect of tax and subsidy on equilibrium quantity and price. National income

model

9

7. Limit and Continuity and Derivative of Function: Concepts of limit, limit theorems;

definition of derivatives, technique of derivations, second and higher order derivatives, partial

derivatives and total differential.

8. Application of Derivatives: Slope of functions. Increasing and deceasing function;

concavity and convexity of function, elasticity, maxima, minima and point of inflexion;

marginal functions, profit maximization under perfect competition, monopoly and

discriminating monopoly, cost functions and supply functions.

9. Matrix Algebra: Concept of vectors and matrices. different types of matrices-transpose of a

matrix; addition, subtraction and multiplication of matrices-laws of addition and

multiplication; determinant of a square matrix; matrix inversion, solution of a set of

simultaneous equations using matrix inversion and Cramer‘s rule.

References

1. Alpha. C.Chiang: Fundamental Methods of Mathematical Economics.

2. Edward T. Dowling: Mathematics for Economists.

3. Hoy, et al. ‗Mathematics for Economics‘ 2nd

edition, MIT press.

4. Sanchetti‘ Mathematical Economics

MAT105: Mathematics for Economics-I (LAB)



Laboratory works based on MAT104

STA106: Statistics for Economics-I



1. Introduction: Statistics; population and sample; inductive and descriptive statistics;

variables– discrete and continuous variables; rounding of data; scientific notation; functions

rectangular coordinates; graphs; equations; inequalities; logarithms; subscript notation;

summation notation.

2. Frequency Distributions: Raw data; arrays; frequency distributions; class intervals and class

limits; class boundaries; the size of a class interval; the class mark; general rules for forming

frequency distributions; histograms; cumulative frequency distributions and ogives; relative

frequency distributions and percentage ogives.

10

3. Measures of Central Tendency: The arithmetic mean; properties of the arithmetic mean;

arithmetic mean computed from grouped data; the geometric mean; the harmonic mean; the

relation between arithmetic; geometric and harmonic means; the median; quartiles and

percentiles; the mode; empirical relation between mean; median; and mode.

4. Measures of Dispersion: The range; the mean deviation; the semi-interquartile range; the

variance; the standard deviation, properties of the standard deviation; coefficient of variation;

standardized variable; Z-scores.

5. Moments, Skewness and Kurtosis: Moments for grouped data; relations between moments;

computation of moments for grouped data; moments in dimensionless form; skewness; kurtosis;

population moments.

6. Correlation and Regression: Relationship between variables; the correlation coefficient;

rank correlation remarks concerning the correlation coefficient; the least-squares regression

lines; regression lines and the correlation coefficient; explained and unexplained variation the

standard error of estimate.

7. Index Number: Applications of index numbers; problems involved in the computation of

index numbers; Laspeyres, Pasche, Fisher‘s ideal index, cost of living index.

References

1. Bowen and Star: Basic Statistics for Business Economics.

2. Bowers: Statistics for Economics and Business.

3. Gupta and Gupta: Business Statistics.

4. Damodar Gujrati: Basic Econometrics.

5. Gupta and Kapoor: Mathematical Statistics

6. Mostafa M.G: Methods of Statistics

STA107: Statistics for Economics-I (LAB)



Laboratory works based on STA106

11

ENG114: English


2 Credits,26 Contact hours, Exam. Time: 3 hours

1. Grammar:

Tenses, voices, review and sequence of tenses, use of articles, prepositions, subject-verb

agreement, phrases, clauses and sentences, conditionals, word classes. Transformation of

sentences: Active and passive voice, direct and indirect speech, reported speech.

2. Pronunciation: Sounds of English and IPA symbols.

3. Vocabulary Building:

Word-formation rules; affixes; idiomatic expressions; level of appropriateness; colloquial and

informal words and expressions; standard and formal words and expressions.

4. Listening and Note Taking:

Listening to recorded texts and class lectures and learning to take useful notes based on the

listening.

5. Developing Spoken Skills: Formal and informal oral communication, situational dialogues,

presentation skills, extempore speech, talking about families, friends, persons, places and

other local and global issues.

6. Developing Writing Skills:

Sentences: Sentence variety; generating sentences; sentence clarity and correctness; linking

sentences to form paragraphs.

Paragraphs: Paragraph structure; topic sentence; developing paragraphs with specific details

and examples; paragraph unity and coherence.

Essays: Essay structure; thesis sentence; writing good introductions and conclusions;

strategies for development.

Letter writing: Informal and formal letters, report writing, writing papers and assignments.

7. Developing Reading Skills:

Guessing and meaning; understanding sentence meaning, surveying text structure skimming,

scanning, predicting, inferencing, analyzing and interpreting reading and summarizing.

References

Ahmed, Sadruddin, Learning English the Easy Way

Martinet & Thomson, A Practical English Grammar

Hornby, A.S., The Oxford Learner‘s Dictionary of Current English

Taylor, Clive., Advancing Language Skills

Close, R.A., The English We Use

12

ENG115: English: LAB



Laboratory works based on ENG114

ECO150: Intermediate Microeconomics



1. Consumer Behavior Theory: Ordinal Approach; Indifference curve and its characteristics;

consumer equilibrium; Income and Substitution effects of a price change; derivation of

demand curve; Price consumption curve and demand curves. Income consumption curve and

Engel curve. Derivation of demand functions from utility function, the slutsky equation and

its interpretation.

2. Theory of production: Concept of production, production function; iso-quants, marginal rate

of substitution, producer‘s equilibrium. Least cost combination of factors of production.

Expansion path.

3. Production functions: Concept of returns to scale and the production function. Homogeneity

of production functions, the cobb-Douglas production function. The CES production function.

Different types of cost, cost curves and their interrelationship: Long run and short run view.

4. Market Structure: Monopolistic Competition: Characteristics of monopolistic competition.

Product differentiation and the demand curve. Price and quantity in monopolistic competition,

short run, long run adjustment. Monopolistic competition and perfect competition compared.

Monopolistic competition and efficiency.

5. Market Structure: Oligopoly and Duopoly: Characteristics of Oligopoly. Different model:

Non-collusive Oligopoly – The quasi competitive solution, Cournot‘s solution, Stackelberg‘s

solution, The kinked-demand model.

6. Market Structure: Collusive Oligopoly: Collusion solution, Cartels, price leader ship (low

cost price leadership, dominant firm price leadership).

7. Welfare Economics: Needs of welfare economics; The concept of Pareto optimality, Pareto

optimality for consumption, Pareto optimality for production, its limitations.

References

1. Hal R. Varian, Intermediate Microeconomics- A Modern Approach, latest edition.

2. Koutsouyiannis, Modern Microeconomics, Macmillan, 1979.

3. J. Hirschleir, Price theory and Applications.

4. Henderson and Quandt: Microeconomic Theory: A Mathematical Approach

5. G.J Stiglaer, Theory of price.

13

ECO152: Agriculture and Rural Economics-I



1. Introduction to Agricultural Economics: Nature, subject matter, role of Agricultural

economics for the development of underdeveloped countries, Demand and supply,

importance of institutions.

2. Contribution of Agriculture to Economic Development: Product contribution; market

contribution; factor contribution .Agricultural transformation. Agriculture as the base for

industrial development. Interdependence of Agricultural sector and industrial sector.

3. Models of Dual Economies: Primary ideas of Lewis and Fei-Ranis models of dual

economics

4. Production Relations: Factor–Product, factor –factor, and product –product relationship.

5. Types of Farming: Farm productivity with special reference to Bangladesh. Share tenancy

and Economic efficiency; Private, cooperative and collective farming.

6. Agriculture Finance: Sources of agriculture capital and credit, function of rural markets in

LDCs, financial policies for agricultural development.

7. Tenurial System and Land Reform: Type of land tenure–owner operator, part operator,

tenant, share tenancy; meaning of land reform, objectives, benefits and costs, limitations,

agrarian tenancy reform. Land reforms measures of Bangladesh.

8. Agricultural Marketing and pricing policy: Scope and role of agriculture marketing,

Agricultural Marketing Channels: marketing functions and market structure, marketing

costs, margins and efficiency, market intelligence and grading, market integration;

imperfections of agricultural marketing in LDCs, marketing reform.

9. Role of Government: Case for government intervention in agriculture, protection of

farmers income, security of supply; methods of agriculture price support– deficiency

payments system, import quotas, tariff protection, price subsidies, variable levies, domestic

supply restrictions, price discrimination.

References

1. Delland Orazen : Production Economics : Theory with Applications

2. Ghatak , Sand Ingersent : Agriculture and Economics Development

3. Hill and Ingersent: Economic Analysis of Agriculture

4. Meier , GM: Leading Issues to Agriculture Economic Development

5. Sadhu and Singh: An Introduction to Agricultural Economics

6. Colmen , dand Young ,T: Principles of Agriculture Economics

14

ECO160: Banking and Finance



1. Overview of Money: functions of money; kinds of monetary standards; the quantity theory

of money- transaction velocity approach and cash balance approach.

2. Overview of banks: concept of bank; services that bank provide; commercial banking; unit

banking; branch banking; electronic banking.

3. Financial management of Banks: Bank‘s balance sheet; principal types of account;

component of income statement; asset and liabilities of commercial banks; asset liability

management and interest rate risk; managing deposit services and non-deposit liabilities.

4. Financing Business: types of loans; steps in the lending process; factors to consider for a

good loan; working capital loans; assets based financing; long terms loan to business;

business firm‘s financial statement.

5. Commercial banking: economics of deposit creation; mathematics of deposit creation;

complications; currency drain; excess reserve; the monetary base; reserve base and money

multiplies.

6. Central Banking: organizational structure of central bank; functions of central bank;

objectives of central bank‘s monetary policy; the goals of central banking; central banking in

the underdeveloped countries.

7. Development Banking: Organization and functions of development bank; needs for

development banks; problems of formation and operation of development banks;

development banking in Bangladesh- RUKUB; Krishi Bank; Shilpa bank etc. alternative

banking- the Grameen bank.

8. International Banking: factors affecting growth of international banking in the 20th

century; offshore banking and multinational banking; offshore banking in the context of

Bangladesh; Eurodollar banking and Eurocurrency banking; World Bank; ADB and IMF;

currency trading.

Reference:

1. Luckett: Money and Banking.

2. Diamonds: Development banking.

3. Rose and Sylvia: Bank management and financial services.

4. Khanna: Advance learning in money and banking.

5. Houk: Financing and problems of development banking

15





MGT164: Business, Finance and Accounting



1. Introduction:

Definition of business/ firm. Types of business: sole trader; partnership; private and public

limited companies; holding companies, multinational companies. Product, business and human

life cycle

2. Sources of Finance for Businesses:

The need for funds. Internal sources of funds: Profit, depreciation, amortisation and sale of

assets. External(long term) sources of funds: Share capital; ordinary shares, the ways in which

new shares may be made available to investors, common stocks, preference shares, deferred

shares; loan capital: debentures, mortgage, industrial loan, bonds; venture capital and

government assistance. External short term sources of funds: Bank overdraft, bank loan, hire

purchase, trade credit, leasing, debt factoring, trade bills. Factors affecting choice of finance.

3. Uses of Funds:

Fixed assets: tangible assets, intangible assets (goodwill, patents, copyrights and trademark.

Research and Development, Brand development); investment in financial assets. Subsidiary and

associated companies, holding companies. Current assets: Stocks, works-in-progress, receivables

from debtors, cash at bank, cash in hand; investment. Liquidity/ reserves.

4. Accounting and Finance:

(A) The balance sheet: Introduction to the balance sheet (assets, liabilities, capital). Presentation

of balance sheet (horizontal format & vertical format). Different ways of calculating

depreciation. How to prepare balance sheet for sole traders, partnerships, and limited

companies. Interpretations of various items contained in the accounts. The use of balance

sheet, limitations of balance sheet.

(B) The profit and loss account: The nature of profit (retained, distributed to the owners of the

company, used to pay). How to prepare profit and loss account for sole traders, partnerships,

limited companies. Interpretations of various items contained in the accounts.

16

(C) Working capital: What is meant by working capital. Working capital problems. The working

capital cycle, management of working capital. Sources of liquidity problems. Resolving a

liquidity crisis.

(D) Ratio analysis: What are ratios? Types of ratios and their users. Limitations to ratio analysis.

(E) Investment appraisal: The nature of investment. Types of investment. Risk in investment.

The factors affecting private sector investment. The factors affecting public sector investment.

Different ways of investment appraisal: Payback method, average rate of return, discounted cash

flow _ alternative calculations, internal rate of return. Factors influencing investment decisions.

5. Financial Market:

Definition, Role of financial market, Classification of financial market: Capital market & money

market. Characteristics of capital market & money market, Institutions of capital market &

money market, Instruments of capital market & money Market, The division of capital market:

primary market & secondary market, The direct and indirect roles of the stock market. The

securities market in Bangladesh: Securities & Exchange Commission, Dhaka Stock Exchange,

Investment Corporation of Bangladesh. Mutual funds, their issuers and the role of mutual funds

in business. Insurance companies and their role in business. Pension funds and their role in

business. Issuing houses and their role in business. Commercial banks and their role in business.

Ref:

1. Fabozzi, Frank J., Modigliani, Franco & Ferri, Michael G., Foundations of Financial

Markets and Institutions, Chapter 1 (pp. 1-16), Ch. 2 (pp. 18-33), Ch.15 (pp. 288-289),

2nd edition.

2. Li, Betsy & Kim, Tan Si, Modern Certificate Guide, Chapters 9 & 16.

3. Skinner, Steven J. & Ivancevich, John M., Business for the 21st Century, 2002-2003:

Chapter 7 (pp. 606, 615) Ch.19 (pp. 676-685).

4. Ahmed, M. Farid, Stock Market Behaviour in Bangladesh.

5. Seminar paper on Financial Market (done by Rezwana &Ahsan Kabir).

Fabozzi, Frank J, & Modigliani, Franco, Capital Markets_ Institutions and Instruments,

Prentice-Hall.

6. Jewell, Bruce R., An Integrated Approach to Business Studies, Part 1 (pp. 1-18), 4th

edition.

Hall, Dave, et. al., Business Studies, Unit 57 (pp. 384-391,) 2nd edition.

7. Jewell, Bruce R., An Integrated Approach to Business Studies, 4th edition

8. Hall, Dave, et al, Business Studies, Unit 59 (pp. 392-398), 2nd edition.

Jewel, Bruce R., An Integrated Approach to Business Studies: Part 4, Units 24-30

(Except unit (pp. 287-359), 4th edition.

9. Hall, D., et. al., Business Studies, Units 52, 53, 55, 56, 57, 60, 63, 64, 68 (pp. 392-398),

2nd edition.

17

10. Griffiths, A & Wall, S (ed), Applied Economics: An Introductory Course, Unit 68, 6th

edition.

11. Wood, Frank & Sangster, Alan, Business Accounting.

12. Seminar paper on Accounting Finance (done by Taposh & Apu).

Note: Additional reading materials to be supplied by the course teacher.

SOC166: Principles of Sociology



1. Introductory Sociology: Definition, Nature and Scope of Sociology, Development of

Sociology as a Separate Discipline, Sociology as a Science, Sociology as a Social Science

etc. Relationship of Sociology with other Disciplines: Philosophy, History, Psychology,

Economics, Political Science, Anthropology etc.

2. Primary Concepts: Society, Community, Interlinked between Individual and Society,

Association, Institution, Group, Culture, Civilization, Role and Status, Norms and Values,

Beliefs and Rituals, Totem and Taboo, etc.

3. Socialization: Definition, types, nature and functions of Socialization, Social Control,

family and marriage, religion-theories.

4. Social Structure: Social Structure Defined, Marxist and Non-Marxist Approaches to Social

Structure, Elements of Social Structure.

5. Social Stratification: Social Stratification Defined, Theories of Social Stratification. Forms

of Social Stratification, Slavery, State, Class and Caste.

6. Social Institutions: Family, Marriage, Kinship, State, Property, Religion, Magic and

Science etc.

7. Social Process: Co-operation, Competition, Conflict, Adaptation, Accommodation and

Assimilation.

8. Social Changes: The Concept of Evolution, Progress, Development and Social Change,

Theories of Social Change.

9. Social Problems: Social Problem Defined, Causes of Social Problems, Major Social

Problems of Contemporary Bangladesh.

10. Bangladesh- Society and Culture: Society up to 1947, Pakistan period, Bangladesh period,

Ethnic identities.

References

1. Anthony Giddens: Sociology

2. Meta Spencer: Foundation of Modern Sociology

3. N.J. Smelser: Sociology

4. Ian Robertson: Sociology

5. T.B. Bottomore: Sociology: A Guide to Problems and Literature

6. David Popenoe: Sociology

18

ECO200: Intermediate Macroeconomics



1. Income Determination: The saving-investment balance, planned and realized investment;

consumption: consumption, saving and tax functions: determinants of equilibrium income;

the multiplier: Investment multiplier, Government multiplier, tax multiplier, balanced budget

multiplier.

2. Consumption Demand: Theories of consumption demand- the permanent income

hypothesis and the life cycle hypothesis.

3. Classical and Keynesian views of macroeconomic equilibrium: Say‘s Law of market,

saving-investment equality, wage-price flexibility; Keynes‘ criticism of the classical view

and his prescription for tacking unemployment and inflation.

4. Investment Demand: Importance of investment in macroeconomics analysis; business fixed

investment, residential investment and inventory investment.

5. Demand for Money: Components of the money stock; the functions of money; the demand

for money: theory; demand for money supply; empirical estimates of interest elasticity

6. Supply of Money: The instruments of monetary policy; the mechanism of monetary

expansion; the determinations of the money supply; empirical estimates of interest elasticity.

7. Labor Market: The demand for labor, the supply of labor, equilibrium in the labor market.

8. Demand Side Fiscal policy: Money, interest and income. The goods market and the IS

curve; the assets markets and the LM curve; equilibrium; formal treatment of the IS-LM

Model.

References

1. W.H Branson: Macroeconomics: Theory and policy, 3rd

ed Indus ,1994

2. M.parkin and R. Bade: Macroeconomics, 2nd

ed philip ed. philip –Allan , 1989

3. R.E Hall and J.B. Taylor: Macroeconomics , 4th

ed .W.W.Norton ,1994

4. Dornbuch , R and Fischer, S: Macroeconomics

5. Mankiw , NG: Macroeconomics, 5th

Edition

19

ECO202: Agriculture and Rural Economics-II



1. Rural Economics as a separate field of study-Concept and importance of Rural Economics.

Mutual relationship between Agricultural and Rural Economics. Impact and significance of

rural development.

2. Issues of land reform and rural economics and development.

3. Farm size and efficiency.

4. Rural credit markets.

5. Interlinked rural markets.

6. Models of Migration, Rural unemployment.

7. Structural, Neo-populism and decision-making models and system approach.

8. Structural analysis of agrarian change.

9. Rural consumption behavior, use of rural surplus, rural capital market and rural investment

10. State, development activities and the rural society; Integrated rural development: Chinese

Commune experience.

References:

1. Ghatak, S. and Ingersent, K, Agriculture and Economic Development.

2. Basu, Kaushik, The Less Developed Economy.

3. Late, u. The Design of Rural Development.

4. World Bank The Design of Rural Development Sector: Policy Paper.

5. Jain S.C: Rural Development.

6. Katar Sing, Khanna, B.S.: Rural Development in South Asia.

7. Harris, J., Rural Development: Theories of the Peasant Economy and Agrarian Change.

8. Lipton, M. Why Poor People Stay Poor: Urban Bias in World Development.

9. Meier: Leading Issues in Economic Development

20

ECO210: Economic Systems and Development Patterns-I



1. Subject Matter and Methodology: Concept of economic systems and socio-economic

formations, Economic interpretation of history.

2. Pre-capitalist Modes of Production: Primitive Communal Economy, Economy of

Slavery, Feudal Economic System.

3. Capitalistic Mode of Production

3.1: Pre-Monopoly Capitalism

Commodity and money, Theory of value (classical and radical views), Conversion of money

into capital, General theory of capital, Theory of surplus value: Absolute and relative

surplus value, Wage: Essence and forms, Law of accumulation. Metamorphosis and circuit

of capital, Composition of capital: Constant and variable, fixed and circulatory, Theory of

reproduction (simple and extended), Transformation of surplus value into profit, rent and

interest.

3.2: Monopoly Capitalism/Economy of Imperialism

Emergence of monopoly capitalism, The features of monopoly capitalism, Neo-colonialism,

Globalization.

4. Socialistic Mode of Production

Transition period from capitalism to socialism, Forms of property in socialism, Money

commodity relations in socialism, Principles of planning in socialism.

5. History of Socialist Development

5.1 Soviet Economic Development since 1917

War communism, New Economic Policy, Industrialization debate, Collectivization of

agriculture, Five year plans.

1.2 Chinese Economic History since 1949 Revolution

Rehabilitation period, First five year plan, Collectivization of agriculture, People‘s Commune

and Great Leap Forward, Cultural revolution, Economic reforms since 1978.

References

1. Burkitt Brian, Radical Political Economy: An introduction to the alternative Economics.

2. Ilyin and Metylev, What is Political Economy?

3. Fusfeld D., The Age of the Economist

4. Kozlow, Political Economy of Capitalism

5. Abalkin, Short Course on Political Economy

6. Ryndina, Fundamentals of Political Economy

21

7. Kulmov Alexander, Political Economy

8. Seligman B (ed.), Basis of Political Economy

9. Mendel Ernest, Political Economy of Capitalism

10. Korovkin Feodor, Ancient Age

11. Agibalova, Y. and Donskoy, G, History of the Middle Ages.

12. Barkat A, ―On Asiatic Mode of Production‖, Dhaka University Studies: Vishwa

Vidyalaya Patrika, Vol. XXII, June 1985; Vol. XXVI, October 1986: Vol. XXVII,

February 1987.

13. Schumpeter, History of Economic Analysis

14. Sen A.K., Development as Freedom

15. Marx K, Contribution of the Critique of Political Economy (Preface)

16. Marx K, Capital

17. Marx K, Pre Capitalist Economic Formations (GRUNDRISSE).

18. Engels F, Anti-Duhring

19. Lenin VI, Imperialism – the Highest Stage of Capitalism

20. Bernal JD, Science in History

21. Ankin A, Science in its Youth

22. Ankin A, The Yellow Devil – Gold and Capitalism

23. Dobb, Maurice, Soviet Economic Development since 1917

24. Huges, Luard, Chinese Economic Histroy




Laboratory works based on ECO200, ECO202 and ECO210

MAT214: Mathematics for Economics-II



1. Application of derivatives (Constrained Maximization and Minimization): Utility

maximization and derivation of demand functions; cost minimization.

2. Production Function: Cobb- Douglas production function, marginal productivities, elasticity

of output, degree of homogeneity and returns to scale, elasticity of substitution; the CES

production function, marginal productivities; elasticity of substitution.

3. Permutation, Combinations and the Binomial Theorem: Concepts of permutation and

combination; permutation of things all different; permutation of things of things not all

different; combination of things; concept of binomial theorem; general term; middle term.

22

4. Progressions: Arithmetic progression, sums of arithmetic progression, geometric

progressions, sum of geometric progressions; expansion of functions- Maclaurin and Taylor

series.

5. Integration: Concept of integration: indefinite integrals, definite integrals, rules of

integration, applications of indefinite to total function, consumers surplus.

6. Logarithms & Exponential function: Problems of rate of growth-compound interest and

economic interpretation of e. some applications; Compounding periods-effective rate of

interest.

7. Matrix Algebra: Rank of a matrix– the eigenvalue problem quadratic forms and positive

definite matrices– maxima and minima in matrix terms– constrained extrema–differential

calculus in matrix notation; application in input-output analysis

References

1. Alpha. C. Chiang: Fundamental Methods of Mathematical Economics.


3. Hoy, et al. ‗Mathematics for Economics‘ 2nd

edition, MIT press.

4. Michael Klein, ‗Mathematical Methods for Economics‘ Addition-wesley.

5. Sydsaeter and Hammond ‗Essential Mathematics for Economic Analysis.

6. Sanchetti‘ Mathematical Economics.

MAT215: Mathematics for Economics-II (LAB)




STA216: Statistics for Economics-II



1. Analysis of Time Series: Characteristic movements of time series; classification and

estimation of time series movements-trend; seasonal variations; cyclical variations; irregular

variations.

2. Elementary Probability Theory: Definition of probability; conditional probability;

independent and dependent events; mutually events; mutually exclusive events; probability

distributions; basic theorems of probability theory; Bayes theorem.

23

3. Mathematical Expectation: Definition of mathematical expectations; theorems of

mathematical expectations, permutations and combinations.

4. The Binomial, Normal and Poisson Distributions: The binomial distribution; the normal

distribution; relation between the binomial and normal distributions; the Poisson distribution;

relation between the binomial and Poisson distributions; fitting theoretical distributions to

sample frequency distributions.

5. Elementary Sampling Theory: Sampling theory; random samples and random numbers;

sampling with and without replacement; types of sampling; sampling distributions; sampling

distributions of means; sampling distribution of proportions; sampling distributions of

differences and sums; standard errors.

6. Statistical Estimation theory: Statistical estimation; estimate and estimator; estimation

procedure; unbiased and biased estimator; efficient estimator; point and interval estimates;

small sample properties; large sample properties; confidence interval; construction of

confidence intervals.

References

2. Mostafa M.G: Methods of Statistics




6. Gupta and Kapoor: Mathematical Statistics

STA 217: Statistics for Economics-II (LAB)




ECO250: Economy of Bangladesh-I



1. A very short socioeconomic history of Bangladesh: formation of statehood of Bengal-land

relations, rural-urban relations. Muslim conquest and socioeconomic changes in Bengal.

Land system and revenue system in the Mughal Bengal. Bengal under East India company.

Bengal Famine of 1176-Drainage of the economy and its de-industrialization. Permanent

settlement and commercialization. Market of tenure rights and development of rural credits,

characteristics of Bengal famines. Regional disparity in the Pakistani era and two economy

theory and emergence of Bangladesh.

24

2. National Income of Bangladesh: The size and the composition of the GDP, growth in GDP

and per capita income. Living standard of the population, pattern of income distribution.

3. Population and labour force: Size and structure of population, growth of population,

population explosion and Human development in Bangladesh, population policy. size and

structure of labor force, growth of labor force.

4. Sectoral Origins of the GDP and the Patterns of Structural Changes: The size and

composition of the agricultural sector, major food and non-food crops: livestock; fisheries and

forest resources; the size and composition of the industrial sector; cottage; small and large

scale industries; public and private sector industries.

3. Agricultural Sector: Definition, structure and growth of agriculture, characteristics of

agriculture, importance of agriculture in national economy, factors behind agricultural growth,

agricultural policy. Agricultural marketing and pricing, Agricultural modernization,

Agricultural credit in Bangladesh. Agricultural land tenure system and land reform in

Bangladesh.

4. Industrial Sector: Definition, structure and growth of industries, categories of industries.

composition of different industries, public and private sectors, nationalization,

denationalization and privatization , problems and prospects of Foreign Direct

Investment(FDI) EPZ .

5. Economic Infrastructure: Transport and communication; power and energy; education and

housing; social and economic institutions.

6. External Sector: Composition and growth of exports, Composition and growth of imports,

balance of payment and foreign exchange reserves, external aid and debt situation, trade vs

aid, impact of globalization on Bangladesh economy.

References

1. Ramush Ch. Dutt, Economic History of India

2. Asiatic Society of Bangladesh, History of Bangladesh-vol-2

3. Khan, A.R. and Hossain, Mahbub, The Strategy of Development in Bangladesh.

Macmillan, London, 1989.

4. Planning Commission, The First Five Year Plan 1973-78, Bangladesh Government Pres,

1973.

5. C.P.D., Independent Review of Bangladesh Development, (IRBD), (different issues from

1995 to 2001), University Press Limited, Dhaka.

6. Islam, Sirajul (ed.), History of Bangladesh: 1704-1971, Vol. 2 (Economic History),

Asiatic Society of Bangladesh, Dhaka, 1992.

7. Abdullah, Abu (ed.), Bangladesh Economy 2000: Selected Issues, BIDS, Dhaka 2001.

8. Sobhan, R. (ed.) Task Force Reports (four volumes), University Press Limited, Dhaka,

1991.

25

9. Gaen, Philip (ed.), Bangladesh Environment: Facing the 21st, Century for Environment

and Human Development, (SEHD), 1998.

10. Bayes, Abdul and Muhammad, Anu (ed.), Bangladesh at 25: An Analytical Discourse on

Development, University Press Ltd. 1998.

11. Bangladesh Bureau of Statistics, Statistical Pocket Book, (Latest Issue), Dhaka.

12. Bangladesh Economic Review: Various Issues.

ECO252: Economic Systems and Development Patterns-II



1. Economy of Ancient Societies: A Brief Outline: Indus valley cities. Aryan invasion and its

impact on the Indian society, Slavery in ancient Greece and Italy.

2. Economy of Societies of the Middle Ages: English manorial system; medieval crafts and

guilds; enclosure movement and the agrarian revolution in England, A brief survey of the

economic conditions prior to the Meiji Restoration in Japan, Orientalism, feudalism –example

of the Indian Sub-continent.

3. Economics of Modernization: The Capitalist Path: Development of Indian economy:

Colonial and post-colonial periods, Industrial revolution in England – causes and

consequences. Comparative economic situation of UK, Germany Italy, Holland and Spain in

the early 19th century, Industrialization process in Japan – the special role of agriculture,

small scale and cottage industry, foreign trade, Zaibatsu government.

Stages of economic development of USA: Slavery in USA its peculiarities; Civil War in USA

– causes and consequences; development of industrial capitalism in USA. Crisis of capitalism

in USA – the Great Depression; the philosophy and policy of New Deal.

The success of NICs (Newly Industrialized Countries) as industrialized nations: role of state.

References

1. Kosambi D., An Introduction to the Study of Indian History

2. Perry Anderson, Passages from Antiquity to Feudalism.

3. Levin, et al, Economic History of India

4. North D, The Cambridge Economic History of Europe

5. Lipton E, The Economic History of England.

6. Flinn MW, Origin of the Industrial Revolution

7. Beard Charles, The Industrial Revolution

8. Allen, G C, A Short Economic History of Japan

9. Tobata: The Modernization of Japan

10. Niemi Jr. Albert W, US Economic History

11. North D, The Economic Growth of the U.S. 1970-1860.

12. Commons JR (ed.), A Documentary History of American Industrial Society.

13. Barkat A, ―Development of Capitalism in USA‖, Dhaka University Studies: Dhaka

Vishwa Vidyalaya Patrika, Vol. XXIX February 1986.

26

ECO260: Development Economics-I



1. Meaning and Measurement of Economic Development: Economic growth vs. economic

development, indicators and measurement of economic development, human development

index, physical quality of life index. Structure and characteristics of developing countries,

Common Characteristics of underdeveloped countries.

2. Theories of development: Classical theory, Marxian theory, schumpeterian theory,

Rostow‘s stages of economic growth, balanced growth theory, unbalanced growth theory,

Dualistic models: Lewis and Fei-Ranis.

3. Poverty, Inequality and Development: Measurement of poverty and inequality: Functional

and size distribution of income, Various indices of poverty measurement; Human poverty

index, Kuznets Hypothesis. Poverty alleviation.

4. Economics of population and development: Theory of demographic transition, the

Malthusian population trap, low level equilibrium trap, the microeconomic theory of fertility.

5. Education & Development.

6. Trade & Development: Static and dynamic effects of trade: Prebisch-Singer hypothesis,

export instability in developing countries.

References

1. Todaro, M.P: Economic Development of Third World.

2. Thirlwall, AP: Economic Growth and Development.

3. Jhingan, ML: Economic Development and Planning.

4. Meier: Leading issues in Economic Development.

5. Gillis et al.: Economics of Development.

6. Debraj Ray: Development Economics.





27

MAT264: Mathematics for Economics-III



1. Differential Equation : Definition and classification–concepts of order, power; linearity and

homogeneity of differential equations; equation of the first order & first degree exact

equation-separable variables; homogeneous and non-homogeneous equations– equation

reducible to homogeneous form; linear equations with constant coefficient and constant term–

with variable coefficient and term; dynamics of market price– time path–dynamic stability of

equilibrium; higher order differential equations; the interaction of inflation and

unemployment– a market model with price expectations; solution to higher order differential

equation.

2. Difference Equation: Definition and concepts- general solutions for first order linear

difference equations; second order difference equations- the dynamic stability of equilibrium-

convergence to equilibrium; the cobweb model; a market model with inventory- lagged

income determination model; solution to higher order difference equation.

3. Mathematical Programming: Linear programming- simplex method, duality; non-linear

programming-graphical solution, Kuhn-Tucker condition.

4. Optimal Control Theory: Static vs. dynamic optimization, the maximum principle,

optimization problem involving discounting; infinite time horizon problem; the current value

Hamiltonian; free terminal time problems, constructing phase diagram.

References

5. Alpha. C.Chiang: Fundamental Methods of Mathematical Economics.


7. Hoy, et al.: ‗Mathematics for Economics’, 2nd

edition, MIT press.

8. Michael Klein: ‘Mathematical Methods for Economics‘, Addition-wesley.

9. Sydsaeter and Hammond: Essential Mathematics for Economic Analysis.

MAT265: Mathematics for Economics-III (LAB)




28

STA266: Statistics for Economics-III



1. Statistical Decision Theory: Statistical decisions; statistical hypothesis; tests of hypotheses

and significance; tests involving normal distributions; two-tailed and one-tailed tests; special

tests; operating-characteristics curves– the power of a test; control charts; tests involving

sample differences; tests involving binomial distributions.

2. The2 Test: Observed and theoretical frequencies; definition of

2 distribution;

characteristics and properties of the chi-square distribution; confidence, intervals for 2 ;

significance tests; the 2 test for goodness of fit; contingency tables; Yates‘ corrector for

continuity; simple formulas for computing 2 ; coefficient of contingency; correlation of

attributes; additive property of 2 .

3. The t-Test and F-Test: Small samples; Student‘s t distribution; properties of t distribution;

confidence intervals; tests of hypotheses and significance; degrees of freedom. Calculating

variances and the sample F Statistic. The distribution of the sample F Statistic; properties of F

distribution; use of F test..

4. Analysis of Variance (ANOVA): The purpose of analysis of variance; one-way

classification; total variation; variation within treatments, and variation between treatments

short-cut methods for obtaining variations; mathematical model for ANOVA; expected values

of the variations; distributions of the variations; ANOVA tables; modifications for unequal

numbers of observations; two-way classification; two-factor experiments; ANOVA for two-

factor experiments; two-factor experiments with replication; experimental design.

5. Non-Parametric Statistics: Introduction; advantages of non-parametric tests; limitations;

sign test; run test; wilcoxon matched pairs signed test, the fisher exact probability test; the

median test; other non-parametric test.

References

1. Bowen and Star: Basic Statistics for Business Economics.




5. Gupta and Kapoor: Business Statistics

STA267: Statistics for Economics-III (LAB)




29

CSE274: Computer Applications in Economics 100 Marks [70% Exam., 20% Quizzes/Class Tests, 10% Attendance]


1. Introduction: Basic Organization, Types, History and Generations of Computers,

Application, Microcomputer system and I/O units in block form.

2. Number Systems and Logic Gates: Binary number system, Hexadecimal Number system,

Bit, Byte, ASCII codes, Boolean Algebra, Logic Gates, Combination of Logic Gates.

3. Microcomputers: Components of Microcomputers. Hardware and Software, Printer-Types,

Keyboard, Mouse, OMR, Scanner and other input and output Devices.

4. Operating System: MS-DOS, Windows 95/98/2000/XP, Windows NT, Linux, Application

Packages (Microsoft Word, Microsoft Excel etc).

5. Introduction to Programming Languages: Machine Language, Source Program, Object

program, Interpreter, Compiler, Assembly Language, High Level Language, Algorithm,

Flowcharting.

6. MS Office Package:

(a) MS Word: Introduction; basic operations; advanced operations-Writing equations;

creation tables; other operations.

(b) MS Excel: Introduction; basic operations; advanced operations; other operations.

(c) MS Power Point: Introduction; making slides; slide design; animation schemes;

presentation of slides; other functions.

7. Internet and Networking: LAN, MAN, WAN, NIC MODEM, TELEPHONE LINE, Server,

VSAT and Gateways, TCP/IP protocol and other standards Internet Application-Email, IRC

(Internet Relay Chat), FTP, WWW and Application.

8. Hardware: CPU, Motherboard, RAM, ROM, Expansion slots and cards. Main Memory and

Secondary Memory, CD-Room, Floppy disc drive.

9. Information Technology: IT concepts and applications, Expert system, Robot, Electronic

Fund Transfer, Electronic Commerce, WAP, VOIP.

10. Econometric Software: SPSS, E-views, Strata.

References

1. Cripps, Martin, Introduction to Computer Hardware.

2. Mursil, Pual W & Smith, Crecill L., Introduction to Computer Science.

3. Porat Arpad Barna Dan L, Introduction to Microcomputers and Microprocessor.

4. Sina, Pradeep K., Computer Fundamentals.

5. P J Davies and N.G. Backhurst, Exploiting MS-DOS.

6. Choudhury, Tariqul Islam, Internet E-mail

7. Rahman, Lutfar & Shahid Hasan, Computer Science

8. Rahman, Lutfar & Md. Alamgir, Modern Computer.

30

CSE275: Computer Applications in Economics: LAB




1. Hardware & Troubleshoot

2. Software:

(a) Installation of Software (operating system, application packages).

(b) Operating System (MS- DOS, Windows 98/2000/XP, WinNIT)

(c) Application Package (MS-Word, Power Point ect).

3. Software: Application Package (Excel ,SPSS).

4. Networking & Internet: ( LAN, Networking, Internet Browsing & E-mail).

ECO300: Econometrics-I



1. Nature & Scope: Meaning of Econometrics, Purpose of econometrics, and methodology of

econometric analysis.

2. Simple Linear Regression Model: Interpretation of Regression model, Significance of

stochastic disturbance term, the method of OLS, assumptions, derivation of OLS estimations,

Properties of OLS estimators, co-efficient of Determination, maximum likelihood model.

3. Heteroscedasticity: The nature of heteroscedasticity– OLS estimation in the presence of

heteroscedasticity–consequences of heteroscedasticity– detection of heteroscedascity–

remedial measures.

4. Autocorrelation: Nature, OLS estimation in the presence of Autocorrelation, the BLUE

estimator in the presence of Autocorrelation, consequence of using OLS in the presence of

Autocorrelation, detection of Autocorrelation, remedial measures, correcting for

Autocorrelation.

5. Multicollinearity: The nature of multicollinearity– Estimation in the presence of perfect

multicdollinearity– estimation in the presence of high multicollinearity– theoretical

consequences of multicollinarity-practical consequence of multicollinearity.

References

4 Griffiths, William E., R. Carter Hill and George G. Judge: Learning and Practicing

Econometrics, John Wiley & Sons, New York, 1993.

5 Gujarati, D.N.: Basic Econometrics,4th Edition, McGraw Hill Publications,2003.

6 Johnston, J.: Econometric Methods, 3rd edition, McGraw Hill, New York, 1984.

7 Koutsoyiannis: Theory of Econometrics

31

ECO301: Econometrics-I: LAB



Laboratory works based on ECO300

ECO302: Public Finance-I



1. Meaning and Scope of Public Finance: Nature, Laissez faire economy, importance of

public finance.

2. Theory of Public Goods and Externalities: Characteristics of public goods, Public goods,

merit goods compared, Pareto efficient conditions in the presence of public goods, Efficiency

conditions for private and public goods, Private provision of public goods, Externality and

private responses-Bargaining and Coase theorem, Merges, Social conventions, Externality

and public responses- Taxes, subsidies, creating a market, regulation, evaluation.

3. Introduction to public choice Theory: (a) The concept of government failure, (b) Voting

rules and resource allocation: I. Direct Democracy -Unanimity rules, Majority voting rules,

Logrolling, Arrow‘s Impossibility Theorem. II. Representative Democracy -Elected

politicians, Public employees, Special interest. Other actors. (c) Public choice theory and the

size of government, (e) Public production and bureaucracy

4. Principles of Expenditure Analysis: (a) Meaning and nature of public expenditure,

Wagner‘s law of increasing state activities, wiseman-Peacock hypothesis, Demad-Supply of

government services, comparison between private and public expenditure, Pure theory of

public expenditure, canons of expenditure, (b) Allocative and distributive effects, (c)

Linkages between expenditure and taxes, (d) Fixed quantity subsidy versus excise subsidy

5. Government and Income Transfer: (a). Distribution of income, interpreting distributional

data, (b) Arguments for and against redistribution by government -Simple Utilitarianism, The

maxmin criteria, Pareto efficient income redistribution, Non individualistic views, other

considerations, (c) Government expenditure policies affecting income redistribution (d)

Ways of addressing the equality- efficiency trade off, (e) Some income redistribution

programme in Bangladesh, Social Safety Net Programme (SSNP)

References

1. Musgrave and Musgrave: Public finance in theory and practice, 5th

edn

2. J. Richard Aronson: Public finance.

3. Browning E.K and J.M Browning, Public Finance and the Price System.

4. Harvey S. Rosen, Public Financ,.Seventh edition.

5. Bhatia, Public Finance,Twenty third edition.

6. Bernard Herber: Modern Public Finance.

7. Browning and Browning, Public Finance and the Price System.

8. Bangladesh Economic Review.

Additional materials will be supplied by the course teacher.

32

ECO310: Development Economics-II



1. Poverty Reduction Strategy: Creating economic opportunities, social development,

empowerment of the poor and the excluded, good governance, public private sector

investment for alleviating poverty. Empowerment of the poor to enhance capacity to

influence institution. Strengthening participation in political process, local decision making

bodies. Promoting social and gender equality, reducing risk and vulnerability of the poor.

2. Gender issues: status of women, role of women, activities, inequalities in the access to and

control of resources -- opportunities for women.

3. Theories of growth and Development: Harrod-Domar model, Nurkse‘ theory of

development, Mahalanobis model, Big push theory, Myrdal‘s theory. New Growth theories.

4. Participatory development process: strategy and mechanism of participation during

planning, implementation and operation of projects- Procedure and arrangement for

participation of the poor in the development process.

5. Foreign resource and Development: Foreign aid and development. World Bank and IMF

conditionalities- Structural adjustment policies and Stabilization policies. Aid dependence.

6. Sustainable Development: Development and the Environment, EKC, pollution haven

hypothesis, environmental issues of development in developing and developed countries.

7. Market Failure: Intervention of government, good governance & development. Planning:

Its rationale and crisis-lessons of experience, experience 1st and 2

nd PRSP in Bangladesh,

MDG experience in Bangladesh.

References.

1. Ray, Debraj: Development Economics, Oxford University Press, l99

2. Sen. Binayak: Poverty in Bangladesh, A position paper for the Sixth Five Year Plan,

2001.

3. Sen. Binayak and Rehman, Atiur: South Asia Poverty Monitor, BIDS. 2000.

4. Pernia, Ernesto M Urban Poverty in Asia: A Survey of Critical Issues. Oxford University

Press, 1994.

5. Islam, Nazrul, et. al. (eds.): Addressing Urban Poverty Agenda in Bangladesh. University

Press Ltd. 1997.

6. Nalini Visva Nathan: The Women, Gender and Development Reader. University Press

Ltd. 1997.

7. Hortoz Susan fed.): Women and Industrialization in Asia, Rautledge,

8. Bankoff Ferks: Mapping vulnerability,

9. Todaro and Smith: Economic Development.

10. Parkins et al.: Economic Development

33

ECO312: International Trade and Finance-I



1. International Economics: Nature and scope of international economics. Distinction between

interregional and international trade.

2. Trade Theory Absolute advantage theory: Ricardian Theory principle of comparative

advantage, gains from trade, Heckscher-Ohlin theory – factors endowments and basis for

trade, factor price equalization.

3. Trade and welfare: Consumption & Production gains from trade. Definition and derivation

of offer curve. Trading equilibrium. Concepts of terms of trade and importance of their

movements for changes in development.

4. Trade policy: Free trade and protection. Tariffs and their welfare effects, Equivalence of a

tariff and quota, relative efficiency of tariff, quota and subsidy in providing protection.

Concept and determination of optimum tariff; infant industry argument for protection.

5. Economic Integration: Definition and stages of economic integration; positive and

normative analysis of economic integration [customs union only]

6. Balance of payment Adjustment: Increasing and decreasing returns. Imperfect competition:

monopoly, oligopoly and monopolistic competition. Dumping and cartel.

References

1. B.0. Sodersten and G. Reed , International Economics, 199-1

2. R.E.Caves & R.W Jones, World Trade and Payments: An Introduction. 3rd ed. Little.

Brown X, Co 19,S1

3. Ali M.EI-Agraa, International Trade. Macmillan, 1989.

4. Current Issues in International Trade: Theory and Policy. Macmillan, 1986.

5. G.M Meier. International Economics: Theory and policy, Macmillan, 1980.

6. R.H.Heller, International Trade Theory and Empirical Evidence Prentice-Hall.

7. Bo.Sodersten. International Economics, Macmillan.

8. M.Chacholiades, International Economics, McGraw Hill, 1990.

9. M. Chacholiades, International Monetary theory & Policy, 1978.

10. Maurice D.Levi: International Finance, McGraw -Hill 2nd ed.., 1990.

11. P.T. Ellsworth & J.C. Leith, International Economy, 6th ed Macmillan, I984.

34

ECO320: Economic Thought-I



1. Ancient Economic Thought: Hebrew and Indian economic thought; Greek economic

thought—Plato; Aristotle; medieval economic ideas.

2. Medieval Economic Thought: Structure of the Medieval Society, Development of

Scholasticism, Characteristic of Medieval Economy: (i) Agriculture, (ii) Industry, (iii) Trade.

3. Emergence of Mercantilism: Mercantilist Economic thought with special reference to:

(i) Thomas mun, (ii) Sir William Petty, (iii) Sir Sosiah Child, (iv) Phylip von Honrick

4. Fundamental Ideas of Physiocrats: (a) Advocates of Physiocrates: (i) Francois Quesnay,

(ii) Anne Robert Jacquese Turgot, (iii) Boisguillebert, (iv) Quesnay‘s Tableau Economique.

5. Classical Economic thought: Adam Smith and Classical Economic Thought, A. Smith‘s

Criticism of Mercantilism and Physiocracy, David Ricardo on Rent, Labour, Value and

International Trade, Malthusian Theory on Population.

References

1. Gide Charles and RIST. Charles: A History of Economic Doctrines: From the Time of

Physiocrates to the Present Day. Boston 1947.

2. Hetneman: History of Economic Doctrines, 1951

3. Lekachman Robert: A History of Economic Ideas, Delhi University Book 1967.

4. Whittaker, Edumund: A History of Economic Ideas, London, Longman, 1947.

5. Barbar, William: A History of economic Thought, Middlesex Penguin Books 1967.

6. Haney Lewis: History of Economic Thought, New York, Macmillan & Co. 1924.

7. Rubin, Isaac, Ilyich: A History of Economic Thought, London 1979.

8. Taylor Overton tt: A History of Economic Thought: Social Ideas and Economic Theories

from Quesnay to Keynes, New York, McGraw Hill 1960.

9. Spiegel henry William (ed.): The Development of Economic thought: Great Economists

in perspectives, New York 1964.

10. Roll Eric: A History of Economic Thought, Oxford University Press Calcutta 1975.

35

ECO322: Bangladesh Studies



History of society, Culture, Geo-politics & economics - development of nationalism during pre

independence of Bangladesh – Language Movement of 1952, Constitutional movement of 1962, Six

Point formula and mass movement of 1968-69, Election of 1970, Emergence of Bangladesh –

political process of Bangladesh, Constitutional experimentations of Bangladesh, Powers and

functions of the organs of government, Administration of Bangladesh, Planning commission and

Bangladesh Public Service, Local government, Political economy of Bangladesh, Bangladesh

agriculture, Industry and other sectors, Social security in Bangladesh.

Recommended Reading: To be decided by the Course Instructor .




Laboratory works based on ECO302, ECO310, ECO312, ECO320 and ECO322

ECO350: Econometrics-II



1. Extension of two variable regression model: Regression through the origin, scaling and

units of measurement, regression standardized variables, functional forms of regression

models, measurement of elasticity: the log linear model, semi-log models, reciprocal models

2. The General Linear Regression Model: The K- variable linear model– assumptions of the

model– ordinary least squares (OLS) estimation–properties of the least-squares estimators–

R2 and adjustment R2– Hypothesis testing about individual regression coefficients.

3. Simultaneous Equation system: single equation review; the nature of simultaneous equation

system; consistency of OLS; the simultaneous equation bias; solution to the simultaneous

bias.

4. Identification: the problem of identification; implication of identification problem; rules of

identification.

5. ILS and 2SLS methods: structural equation and reduced form equations; the method of

indirect least squares (ILS); over identified equation and application of two stage least

squares (2SLS).

36

References

1. Griffiths, William E., R. Carter Hill and George G. Judge: Learning and Practicing

Econometrics, John Wiley & Sons, New York, 1993.

2. Gujarati, D.N.: Basic Econometrics, 4th Edition, McGraw Hill Publications,2003.

3. Pindyck, R.S., and D.L. Rubinfeld.: Econometric Models and Econometric Forecasts 4th

Edition, Irvin McGraw Hill, 1998.

4. Johnston, J.: Econometric Methods, 3rd

edition, McGraw Hill, New York, 1984.

5. Kmenta, Jan: Elements of Econometrics, 2nd

edition, Macmillan, New York, 1986.

6. Koutsoyiannis. A.: Introductory Econometrics, Harper & Row, New York, 1973.

ECO351: Econometrics-II: LAB




ECO352: Public Finance-II



1. Principles of Tax Analysis: Taxonomy of taxes, Requirement for a good tax structure,

General factors affecting incidence of various taxes, Partial versus general equilibrium

analysis of incidence of taxation, The concept of welfare cost of taxation, Measuring the

welfare cost of taxation.

2. Analysis of Economic Effects of the Tax System: Taxation and income distribution, Effects

of taxes on labour supply, Effects of taxes on saving investments and risk taking, Income

versus Consumption taxes, Incidence of taxes.

3. Fiscal System in Bangladesh: Structure of tax revenue and non tax revenue, Elasticity and

buoyancy of tax system, Pattern of current expenditure, Pattern of development expenditure,

Expenditure on human resource, development and poverty alleviation sector. Fiscal

constraint and vulnerability of development expenditure, Sustainability of fiscal deficit,

Value added tax system in Bangladesh, Income tax system in Bangladesh, Fiscal Incidence.

4. Public Budget: Concept and techniques; balanced and unbalanced budget; budget and

development plans in Bangladesh.

5. Balanced budget and Fiscal Policy: Arguments for and against balanced budget, The

balanced budget multiplier, Fiscal policy and stability.

6. Public Debt: The Meaning of public debt, public debt and private debt, Limits to raising

public debt, Public debt and economic growth, Public debt and inflation, Public debt and

taxation, Burden of debt, Debt burden and future generation, Debt redemption and debt

management.

37

References

1. Musgrave and Musgrave: Public Finance in Theory and Practice, 5th

Edn, McGraw Hill

2. H L Bhatia, Public Finance,Twenty third edition.

3. Browning E.K and J.M Browning, Public Finance and the Price System.

4. Harvey S. Rosen, Public Financ, Seventh edition.

5. J. Richard Aronson: Modern Public Finance. McGraw Hill

6. Bernard Heber: Modern Public Finance. 5th

Edn, Richard Irwin

7. John F. Duc : Public Finance: An Economic Analysis.

8. Stiglitz: Economics of Public Sector

ECO360: Economic Planning



1. Meaning and Necessity of Planning: Main characteristics of planning; pre-requisite of

successful planning in under-developed countries, market imperfection and allocation

inefficiency; resource gap; obstacles in implementation of planning in Bangladesh.

2. Planning Methodology: Types of plans on basis of functions and duration; five-year plans,

Annual development plans; Rolling plan; participatory perspective plan, Determination of

planning strategies, Input –output (I-0)analysis and its use in planning process; Assumptions and

main features of I-0, problems of formulating a good plan.

3. Investment Rate of Resource Mobilization: Significance of investment in economic

development; investment rate of rapid industrialization; investment rate of development;

investment and development strategy; optimum rate of investment.

4. Sources of Resource Mobilization For Planning: Types of sources of financing for

planning; components under internal and external sources; foreign aid, necessity of such aid in

planning, impact.

5. The Concept of Capital-Output Ratio: Meaning; Capital-Output Ratio in underdeveloped

economics; factors determining capital- output ratio; nature of capital-output ratio; case for low

or high capital- output ratio in underdeveloped countries; limitations; importance in planning.

6. Investment Criteria in Economic Development: Meaning; The capital turnover criterion; the

social marginal productivity criterion; the reinvestment criterion; the time series criterion.

38

7. Choice of Technique: Choice of project and project appraisal– meaning and importance;

choice of technique– its meaning; labor-intensive vs. capital intensive techniques; input-output

analysis; linear programming.

8. Planning for Development in Bangladesh: A brief history of planning in Bangladesh;

planning institution of Bangladesh; Administrative setup of planning commission of Bangladesh,

characteristics of Bangladesh plans; implementation of plans.

Recommended Books

1. Hagen: Planning Economic Development

2. Lewis, A: Development Planning

3. Tinbergen, J: General Planning

4. Tinbergen, J: Development Planning

5. M.L Jhingan: The Economics of Development and Planning

6. Govt. of Bangladesh: Various Five Year Plans

ECO362: International Trade and Finance-II



1. Globalization and International Finance.

2. Foreign exchange market: different concepts of exchange rates, basis of the foreign

exchange market, exchange risk, spot rate and forward exchange, forward premium and

exchange risk etc., demand for and supply of foreign exchange, equilibrium of foreign

exchange market.

3. Hedging and Futures:

4. Monetary and fiscal policies for internal and external balances:

5. Developing countries and the international debt problem: Macroeconomic features of the

developing countries, developing country- borrowing, debt and debt crisis, managing the debt

crisis.

6. International trade and financial system: IMF, World Bank, GATT, WTO.

7. FDI & Multinational capital Budgeting:

8. Nature of global financial crisis:

References

1. L William E. Gibson and George G. Kaufman, Monetary economics.

2. John B. Beare, Macroeconomics: cycles, growth and policy in a monetary economy.

3. Richard T. Froyen, Macroeconomics: theories and policies

4. Brian Morgan, Monetarists and Keynesians

5. Branson, Macroeconomics.

6. Z Madhura, International Management.

39

ECO370: Economic Thought-II



1. Reaction Against Classical Ideas: Marxian school; Marginal school of economic ideas, Neo

Classical Economic school

2. The Historical School: Economic Thought of Friedrich List, Wilhelm Roscher, Gustav

Schmoller and Max Weber.

3. Development of Socialist economic thought: From Uptopian to Marx.

4. John Maynard Keynes and the Great Depression of Thirties: Keynesian Revolution and

the Development of New Economic Thought, Schumpeter‘s Theory of Economic

Development, Marx, Keynes and Schumpeter.

5. Post Keynesian Economic Ideas: Friedman and the Chicago School.

6. Islamic Economic Ideas: Ibn Khaldun; Ibn Taimiyah; Abu Yusuf; Islamic economic

institutions;

7. Modern Economic thought: Contemporary Developments of Economic Theories.

References

1. Gide Charles and RIST. Charles: A History of Economic Doctrines: From the Time of

Physiocrates to the Present Day. Boston 1947.

2. Hetneman: History of Economic Doctrines, 1951

3. Lekachman Robert: A History of Economic Ideas, Delhi University Book 1967.

4. Whittaker, Edumund: A History of Economic Ideas, London, Longman, 1947.

5. Barbar, William: A History of economic Thought, Middlesex Penguin Books 1967.

6. Haney Lewis: History of Economic Thought, New York, Macmillan & Co. 1924.

7. Rubin, Isaac, Ilyich: A History of Economic Thought, London 1979.

8. Taylor Overton tt: A History of Economic Thought: Social Ideas and Economic Theories

from Quesnay to Keynes, New York, McGraw Hill 1960.

9. Spiegel henry William (ed.): The Development of Economic thought: Great Economists

in perspectives, New York 1964.

10. Roll Eric: A History of Economic Thought, Oxford University Press Calcutta 1975.

11. Ernesto Screpanti and Stefano Zamagni: An Outline of The History Of Economic

Thought, Oxford University Press.

12. Brue & Grant : The Evolution of Economic Thought, South Western Cengage Learning.

40

ECO372: Labour Economics



1. The theory of individual labor Supply: The work-leisure decision: Basic model, Non

participants and Reservation wage. Effects of change in a change in non labour income on

hours of work. (reference: Chapter 2, George J. Borjas, Labor Economics), Standard

workday, Premium pay versus straight time pay, Labor supply of women, Welfare

programme and work incentives(reference: Chapter 2, George J. Borjas, Labor Economics)

2. Wage elasticity of labor supply and labor demand:

3. Population, participation rates, labor force, employment, and unemployment scenarios:

Analysis of labor force survey of Bangladesh conducted in various years.

4. Demand for labor: The production function, Employment decision in the short-run: the

perfectly competitive seller and the imperfectly competitive seller, the employment decision

in the long-run, the market demand for labor.

5. Wage determination and the allocation of labor: Derivation of labor supply curve for

market, Wage and employment determination, Allocative efficiency, Wage and employment

determination under product market monopoly, Monopsony, Unions and wage determination,

Bilateral monopoly, Wage determination in delayed supply response: Cobweb Model,

Payroll taxes and subsidies( reference: Chapter 5, George J. Borjas, Labor Economics)

6. Labor quality: Investing in Human Capital: The human capital model, Human capital

investment and the distribution of earnings, On the job training, Criticism of Human Capital

Investment Theory, The Hedonic theory of wages.

7. Mobility, Migration and Efficiency: Types of labor mobility, Migration as an investment in

human capital, The consequences of migration, Bangladeshi worker‘s mobility. Labor market

abroad and public policy related to labor migration.

References

1. Campbell .R McConnell, Stanley L. Brue, and David A. Macpherson, Contemporary

Labor Economics. Seventh edition. McGra-Hill.

2. George J. Borjas, Labor Economics. Latest edition.

3. Ronald G. Ehrenberg, Robert S. Smith, Modern Labor Economics, latest edition.

4. Labor Force Survey (LFS) report and essential materials will be given by the course

teacher.




Laboratory works based on ECO352, ECO360, ECO362, ECO370 and ECO372

41

ECO400: Advanced Microeconomics



1. Equilibrium and Welfare: Partial equilibrium, General equilibrium, interdependence in the

economy, Walrasian system: Existence, uniqueness and stability of an equilibrium 2×2×2

Model.

2. Welfare Economics: Criteria of social welfare, social welfare function, social welfare

maximization. Welfare maximization and perfect competition.

3. Game theory: Two-person zero sum. Non-zero sum game, prisoner‘s dilemma, mixed

strategies, linear programming equivalences, Co-operative games, Nash bargaining solution.

4. Input-output Analysis: The basic idea the input co-efficient matrix, final demand,

Mathematical representation of the model, Uses in national economic planning and its

limitations.

5. Linear Programming: Distinction between classical and linear programming approach

primal and dual, their economic implication- solution by graphical and the simplex method.

6. Information - The principal agent problem, Moral hazard, hidden actions, adverse Selection,

Market for Lemons -Market equilibrium. Full information: monopoly solution. Full

information: competitive solution. Hidden information. Signaling.

References

1. Graelle and Rees: Microeconomics

2. Handerson and Quandt: Microeconomic Theory

3. Hal. R.Varian: Microeconomic Analysis

4. Silberbery: The structure of Economics.

5. A.C. Chiang: Fundamental Methods of Mathematical Economics, 3rd

End. McGraw Hill.

6. W.J. Baumol: An introduction to Operation Analysis.

7. Dorfmen, Samuelson and Solow: Linear Programming and Economic Analysis.

ECO402: Economy of Bangladesh-II



1. Economic Development: Background of Development; Determinants of Development.

2. Resources for Development: Internal and External resources; Private resources; Methods for

Mobilization of Domestic resources; Role of Foreign Capital in Economic Development; Role

of Foreign Aid.

3. Rural Development: Concept and Importance of Rural Development; Rural Institution; Rural

Board, RWP, FWP; Approaches to Rural Development – Different models.

42

4. Strategy for Agriculture Development: Objectives –Growth of Output , Employment

Opportunities and Income Distribution ; Methods of Attaining the Objectives ; Cropping

pattern; Institutional Reforms .

5. Industrial Development: Industrial policy; Problems of industrialization ; export led and

import substitution industrialization; problems and prospects of public and private sector

industries ; Export Processing Zones (EPZ) and Special Economic Zones (SEZ) ; Roles of

Public and Private sectors

6. Human Resource Development: Population policy; Human Resources Development through

Education and Training; Poverty Alleviation and Employment Generation; Export of

Manpower

7. Budgetary Policy and Development: Monetary and Fiscal Policies; Money Laundering and

Corruption; Good Governance.

8. Planning and Development: Experiences of Development planning in Bangladesh; The First

Five year plan 1973-78; The Two year plan 1978-80; The Second five year plan 1980-85; The

Third five year 1985-90; The Fourth five year plan 1990-95 and The fifth Five year plan

1997-2002. Poverty reduction strategy papers ( PRSP) 2005. Sixth Five year plan.

9. Transit and Development: Meaning of transit and Corridor, role of transit in the economic

development of Bangladesh, international transit systems.

References

1. Faaland and parkinson : Bangladesh : A Test Case of Development.

2. Khan and Hossain : Strategy of Development in Bangladesh.

3. Bangladesh Economic Review.

ECO410: Research Methodology-I



1 Introduction: Meaning of research; objectives of research; types of research; research

process; problems encountered by researchers in Bangladesh.

2 Research Problem: Definition of a research problem; selecting the problem; techniques

involved in defining a problem with illustration.

3 Research Design: Meaning and importance of research design; important concepts relating

to research design; different research designs; important experimental designs.

4 Sampling Design: Census vs. survey; steps in sampling design; criteria for selecting a

sampling procedure; random sample.

43

5 Sampling Fundamentals: Need for sampling; definition of concepts relating to sampling;

sampling distributions; sampling theory; concept of standard error; estimating population

proportion; sample size and its determination.

6 Methods of Data Collection: Methods of collecting primary and secondary data;

questionnaire preparation; selection of appropriate methods for data collection; case study

method.

Recommended Books 1. C. R Kothari, Research Methodology: Methods & Techniques, Wiley Eastern Limited,

1993

2. Therese L. Baker, Doing Social Research, Third Edition, McGraw-Hill, 1999

(International Edition)

3. David De Vaus, Surveys in Social Research, Routledge, 2002

4. Earl Babbie, The Practice of Social Research, Wadsworth, 1998

5. Thomas R. Black, Doing Quantitative Research in the Social Sciences: An Interated

Approach to Research Design, Measurement and Statistics, Sage, 1999

6. Keith F. Punch, Introduction to Social Research: Quantitative and Qualitative

Approaches, Sage, 1998

ECO411: Research Methodology-I: LAB




ECO412: Project Appraisal



1. The Project: Definition; difference between private and public sector investments; stages of

a project– project concept; appraisal; implementation and evaluation; objective of financial

and economic appraisal of projects.

2. Financial Appraisal: Theory of net present value; NPV; benefit- cost ratio; and IRR as

investment appraisal techniques; their relative strengths and weaknesses; identifying and

using cash flows for investment appraisal; dealing with inflation.

3. Economic Appraisal: Rationale for economic analysis of projects– neoclassical theory;

market failure; need for public projects; need for shadow prices; examples of shadow pricing;

measuring changes in economic welfare– consumer and producer surplus.

44

4. Measurement of Economic Prices: Traded versus non-traded goods; domestic versus

international prices; valuing traded and non-traded goods; shadow exchange rate; UNIDO

and LM methods; foreign exchange premium; shadow price of labour; land and natural

resources.

5. Choice of Discount Rate: Choice of an appropriate social rate of discount; different methods

of discounting in public sector investment appraisal– social opportunity cost rate; social time

preference rate; how public sector projects affect future generations through the choice of

discount rate.

6. Social Appraisal of Projects: Distribution versus efficiency; a temporal distribution–

displaying gains and losses; weighted benefit and cost measures, inferring distributional

weights; inter-temporal distribution– social discount rate; shadow price for a missing market

(future generations).

7. Risk and uncertainty: Definitions; sensitivity analysis; expected net present value; risk

analysis– probability distributions; Monte Carlo analysis; attitudes towards risk.

8. Environment and Project Appraisal: Reasons for valuation of environmental externalities;

valuation concepts– use value; option value; existence value; valuation methods– implicit

valuation; contingent valuation; hedonic pricing.

Recommended Books

1. Harry Campbell and Richard Brown: Benefit-Cost Analysis: Financial and Economic

Appraisal using Spreadsheets, Cambridge University Press, 2003.

2. Frances Perkins: Practical Cost Benefit Analysis: Basic Concepts and Applications,

Macmillan, 1994 (Reprinted 1996).

3. J. Price Gittinger: Economic Analysis of Agricultural Projects, Second Edition, Johns

Hopkins University Press, 1982.

4. Skylark Chadha: Managing Projects in Bangladesh, Second Revised Edition, University

Press Ltd., 1989.

References

1. Meier. G.M. (ed): leading Issues in Economic Development.

2. Little & Mirrless: Project Appraisal and Planning in Developing Coquetries.

3. Thirlwal, A.P. Growth and Development

4. Todaro, M.P: Economic Development in the Third world

5. A.N.Agarwala & S.P.Singh (cd): The Economics of Underdevelopment.

6. S. Ghatak: Development Economics

7. B. Higgins: Economic Development

9. Current Issues in Development Economics:

10. Koushik Basu: The Less Development Economics

45

ECO413: Project Appraisal-LAB




ECO420: Resource and Environmental Economics-I



1. Introduction: Defining environmental and resource economics, natural and environmental

resources; classifications of environmental resources; the emergence of resource and environmental economics; The concept of resources and resource scarcity: The neo-

classical economic perspective.

2. The Concept of Natural Resources: Ecology: The economics of nature, The Ecosystem:

structure and function, Ecodynamics: succession, equilibrium, stability, resilience,

complexity, The Laws of Matter and Energy, The Basic Lessons of Ecology.

3. Natural Resource Scarcity and the Limits to Economic Growth: The Malthusian Growth

Doctrine, The Neoclassical Growth Paradigm, The Ecological Economics School

Perspective, Sustainable Economic Development.

4. Fundamentals of the Economics of Environmental Resources: The Economic Process and

the Assimilative Capacity of the Natural Environment, Common Property Resources,

Externalities and Market Failure, Internalizing Externalities: The Pigouvian Tax

5. The Economics of Pollution: Physical and economic meanings of pollution; classification of

pollution; marginal damage function and marginal abatement cost function; the efficient level

of pollution (emission); changes in the efficient level of emissions; the equi-marginal

principle.

6. Pollution Control Policy: Pollution and economic policy; property rights; bargaining and

the Coase theorem; limitations of Coase theorem; non-convexity and the market bargain

theorem; economically efficient pollution abatement and cost effective pollution abatement;

taxation and optimum pollution–the optimum Pigovian tax; pollution charge and property

rights; pollution charge and abatement costs; Pigovian tax and imperfect competition.

References

1. Baumol, W. J. & Oates, W. E, 2000. The Theory of Environmental Policy. Cambridge

University Press.

2. Pearce, D. & Turner, R.K. 1990. Economics of natural resources and the environment.

Harvester Wheatsheaf.

3. Perman, R., Ma, Y., McGilvary, J. and Common, M. 2003. Natural resource and

environmental economics,.Longman.

4. Tietenberg, T. 2002. Environmental and natural resource economics. Longman.

5. Barry Field, Martha K. Field, Environmental Economics: An Introduction

46

ECO422: Demography



1. Demography: Definition, subject matter, utility of its study, Demography and

Economics.

2. The nature of demographic data: Population census (methods, salient features,

limitations of census), registration of vital statistics, sample survey (advantage,

disadvantage, steps in a survey).

3. Some basic concepts of demography: Still birth, live birth, foetal death, family size,

child death, fecundity and fertility, reproductive span, relative numbers, (ratio,

proportion, percent, rate), sex ratio, dependency ratio, Life table, population pyramid,

demographic transition theory.

4. Fertility and reproduction: Measures of fertility-crude birth rates, general fertility

rates, age specific fertility rates, total fertility rate, cumulative birth rates, cohort birth

rate, measures of illegitimacy, gross reproduction rate, net reproduction rate.

5. Mortality: Conventional measures of morality-crude death rate, age specific death rate,

infant mortality rate, neonatal morality rate, total death rate, prenatal death rate, maternal

mortality rate,

6. Migration: Definition, factors of migration, methods of measuring migration (direct

and indirect), Push-pull factors of migration, Effects of rural-urban migration,

international migration and ―brain drain‖

7. Population projection: What is population projection, methods of population projection

(mathematical, growth component, Economic), importance of population projection,

limitation of projection.

8. Demographic features of Bangladesh: age structure, sex composition, marital status,

occupation, religious composition, Urbanization.

References

1. Barclay, George W. Techniques of population analysis, John wiley & sons 1958.

2. Bogue Donald J, Principles of Demography, John wiley & sons.

3. Shryock Henry S, Jacob S Seigal and Associates, The Methods and Materials of

Demography.

4. Spiegelman Mortimer, Introduction to demography, second edition, Harvard University

press, 1964.

5. Thingan M.L, Bhatt B.K., Desai J.N., Demography, Vrinda Publication (p) Ltd., Delhi

India.

6. Raj, Hans, Fundamentals of Demography : Population Studies with Special Referance to

India, Surjeet Publication, Delhi, India.

7. Ramakumar, R, Technical Demography, New Age International Publication, New Delhi,

India.

47




Laboratory works based on ECO400, ECO402, ECO420 and ECO422

ECO450: Advanced Macroeconomics



1. Monetary and Fiscal policy: Meaning of monetary and fiscal policy; monetary and fiscal

policy in the IS-LM framework; fiscal policy and crowding-out.

2. Supply–side Economics: Meaning of supply side economics; expectations and aggregate

supply; introduction to the formation of expectations; supply side disturbances

3. Simultaneous Equilibrium in commodity, money and labour markets, determination of

equilibrium output, employment, rate of interest and price level; reaction to demand

disturbances; reaction; supply –side disturbances

4. Inflation: Concept, Measurement, and theories Meaning of inflation theoretical

measurement of inflation–the inflationary gap; cost–push and demand–pull; inflation.

5. Inflation and Unemployment: The phillips Curve- The relationship between inflation and

unemployment; the short–and the long–run phillips Curve; adaptive expectations in the

phillips Curve

6. The labor market and aggregate supply: Short-run aggregate supply curve, Theories of

short-run aggregate supply curve: The flexible wage theory, The sticky wage theory, The

imperfect information theory, The sticky price theory.

References

3 W.H Branson: Macroeconomics Theory and policy, 3rd

ed Indus, 1994

4 M.parkin and R. Bade: Macroeconomics, 2nd

ed philip ed. philip –Allan, 1989

5 R.E Hall and J.B. Taylor: Macroeconomics, 4th

ed .W.W.Norton ,1994

6 Dornbuch , R and Fischer, S: Macroeconomics

7 Mankiw , NG: Macroeconomics, 5th

Edition

48

ECO452: Health Economics



1. Introduction to Health Economics: Does economics apply to health and health care? Special

characteristics of health care/Is healthcare different? Limited resources and unlimited demand,

choice at inter-sectoral level, choice within health sector, optimality condition from

physician‘s point of view and from economist point of View. Importance of marginal

conditions. Choice between two projects. Importance of marginal rule in the allocation of

limited economic resources.

2. The Production Function of Health: Production function of health, measures of health,

morbidity and mortality based indicators, healthcare as an output of the health services

industry and as an input to health. life style and health, role of medicine. Public health,

nutrition and schooling on health. Determining the allocation of resources to healthcare using

health production sanction, empirical studies of a health production function.

3. Demand for Health and Healthcare: Need vs. demand, Consumer as health producer,

Grossman model on demand for health: investment and consumption aspects of health

investment, graphical and algebraic exposition of Grossman model, empirical evidence.

4. Asymmetric Information and Healthcare: Information and market. Extent of the problem of

asymmetric information in health sector, health insurance and information, adverse selection

and moral hazard. The agency relationship, agency and health care, consumer information,

prices and quality.

5. Supplier Induced Demand (SID): Defining SID, history of SID theory, SID in demand-

supply framework, alternative models of SID, empirical evidence of SID, problem of

identification, common criticisms-theoretical and empirical.

6. Introduction to Insurance: Risk and insurance, insurance terminology, demand for

insurance, risk aversion and willingness to pay for insurance, supply of insurance. The

optimal level of coverage, effects of coinsurance and deductibles on demand, loading costs

and insurance firm, tax system and demand for insurance, the price for insurance, the question

for uninsured.

7. Introduction to Economic Evaluation of Health: meaning and importance of economic

evaluation, basic types of economic evaluation: Cost- effectiveness, data allocating shared

inputs Steps to be followed in Cost analysis, Cost- effectiveness, Cost-Utility and Cost-benefit

analysis, Sources of costs and effectiveness data, allocating shared inputs. Steps to be

followed in cost analysis, Cost effectiveness, Cost utility and cost-benefit analysis, Clinical

decision analysis (CDA) methodological differences among techniques.

8. Healthcare Financing and Equity: Alternative approaches to financing health care- User fee,

private insurance, social insurance, community financing/insurance, tax revenue, loans and

grants.

49

References

1. Folland S., A.C. Goodman and M. Stano, The Economics of Health and Health Care 2nd

Edition, Prentice Hall, 1997.

2. Meguire, A., Hendrson and G. Mooney, The Economics of Health Care, RKP, 1988.

3. Fledstein, P.J, Health care Economics, 4th

Edition, Belmar Publishers Inc, 1993.

4. Phelps, C., Health Economics, Herper Collins, New York 1992.

5. Drummond. M. F. Methods for the Economic Evaluation of Health Care Programmes,

Oxford University Press, 1997.

6. C. Donaldson & K. Gerard- The Economics of Health Care Financing, Macmillan, 1983

7. Gold et al. M. R. Gold, J. E. Siegel, L.B. Russell and M. C. Wienstein (eds.) Cost

Effectiveness in Health and Medicine. Oxford University Press, 1996.

8. Solan, F.A. (ed) Valuing Health Care, Cambridge University Press.

9. Griffin, Charles, Health Care in Asia. World Bank, 1992.

10. World Bank, World, Development Report, 1993: Investigating in Health, Oxford University

Press, 1993.

11. Health Economics Unit, MOBFW: Various working papers.

12. K.J. Arrow (1963), Uncertainty and the Welfare economics of medical care, American

Economics Review, 53, 941-73

ECO460: Research Methodology-II



1. Processing and Analysis of Data: Processing operations; some problems in processing.

2. Testing of Hypothesis: Concept of hypothesis; procedure for hypothesis testing; tests

of hypothesis; Chi-Square, T and F tests with applications; multivariate analysis,

ANOVA analysis.

3. Interpretation and Report Writing: Meaning of interpretation; technique of

interpretation; different steps in writing report; layout of the research report; precautions

for writing research reports.

4. Research Communication: general format for a term paper; innovating a scientific

paper; preparing manuscripts; internship report; preparation of assignments.

5. Referencing, Bibliography and Quotations: The Chicago Manual of style, Modern

Language Association style; American Psychological Association style; quotation style.

50

Recommended Books 1. C. R Kothari, Research Methodology: Methods & Techniques, Wiley Eastern Limited, 1993

2. Therese L. Baker, Doing Social Research, Third Edition, McGraw-Hill, 1999 (International

Edition)

3. David De Vaus, Surveys in Social Research, Routledge, 2002

4. Earl Babbie, The Practice of Social Research, Wadsworth, 1998

5. Thomas R. Black, Doing Quantitative Research in the Social Sciences: An Interated Approach to

Research Design, Measurement and Statistics, Sage, 1999

6. Subrata Kumar Saha, Research Planning and proposal Writing Skill, A H Development

Publishing House, Dhaka.

ECO461: Research Methodology-II: LAB




ECO462: Resource and Environmental Economics-II



1. Valuing the Environment: Measuring the Costs of Provision, Total Economic Value,

Benefits of improving an environmental amenity, Methods: productivity loss, defensive,

mitigating, travel cost, hedonic and contingent valuation, Valuation and Policy Relevance.

2. Efficient and Optimal Use of Non-renewable Resources: Optimal extraction path, Profit-

maximisation for a mine, The Hotelling model for a perfectly competitive mining industry,

Monopoly in mineral extraction - Price and output determination for a mineral

industry in monopoly.

3. Efficient and Optimal Use of Renewable Resources: Fisheries, Water and Forests, Optimal

harvesting schedule, A simple model, Socially optimal harvesting, Public policy towards

renewable resources

4. International Environmental Issues: Economic Development and Environment,

Population-Resource-Environmental Interrelationship, Globalization- Poverty Alleviation-

Environmental Interrelationship, Bio-diversity Loss, Rain Forest Destruction, Acid rain,

Ozone Depletion, Climate Change, International Conventions and joint efforts for

environmental protection and management.

5. Economic Development and the Environment: Concepts of sustainable development;

green GDP; marketed output vs. environmental quality; the relationship between income and

pollution levels-the environmental Kuznets curve; the pollution-haven hypothesis; debt-for-

nature swaps.

6. Environmental Problems of Bangladesh: The major environmental problems of

Bangladesh; the government initiatives to address environmental protection and

development; policies and laws for the protection of environment.

51

References

1. Hartwick. J. M. and Olewiler, N.D. 1998. The economics of natural resource use.

Harper and Row, New York.

2. Pearce, D. & Turner, R.K. 1990. Economics of natural resources and the environment.

Harvester Wheatsheaf.

3. Perman, R., Ma, Y., McGilvary, J. and Common, M. 2003. Natural resource and

environmental economics. Longman.

4. Tietenberg, T. 2002. Environmental and natural resource economics. Longman.

ECO470: Financial Investment and Security Analysis



1. Introduction to Securities: Definition of security; definition and features of corporate

bonds; secured bonds; unsecured bonds (debentures); bond‘s one period return.

2. Securities Markets: Organized securities exchanges; over the counter markets; the third

market; the fourth market; basic features of all these markets.

3. Bond Valuation and Interest Rate Risk: Valuing a risk less bond; bond prices and interest

rates; the bond yield formula; different bond yield and return measures; theorems about bond

price fluctuations.

4. Behavior of Stock Market Prices: The market mechanism; market efficiency and testable

hypotheses about it; the semi-strong efficient market hypothesis; fundamental security

analysis.

5. Efficient Investment and Diversification: Dominance and efficient portfolio; simple or

naive diversification; Markowitz diversification and its significance.

6. Money Market: Definition of money market; need for a money market; goals of money

market investors; depth and breadth of the money market; pattern of interest rate in the

money market

7. Stock Market in Bangladesh: A study of the main features; share price index; change in

share price index; total transaction etc.; comparison of the Dhaka and the Chittagong share

market.

8. A Study of Different Shares in Bangladesh: Bank shares; investment shares; food share;

jute share; garment share; medicine share and insurance share.

Recommended Books

1. Francis, Jack Clark, Investments: Analysis and Management. McGraw-Hill

2. Rose, Peter S., Money and Capital Markets.

3. Daily newspapers, Share Market pages.




Laboratory works based on ECO450, ECO452, ECO462 and ECO472

Date post:	08-May-2020
Category:	Documents
Upload:	others
View:	4 times
Download:	0 times

Faculty of Social Science · 1. Alpha. C.Chiang: Fundamental Methods of Mathematical Economics. 2....

Documents