Subject wise imp topics (eco)

Chanakya group of economics

INDIAN ECONOMY

UGC-NET PAPER-2 (ECO),pgt Eco, UPSC, IES

Subject 1Micro-economics

Important topics for

UGC-NET

Economics

1.Demand analysis

Elasticity's of demand

Derived demand

Network externalities

1.Bandwogan

effect

2.Snob

effect

2.Utility analysis

Law of equi-marginal utility

Law of diminishing

marginal utility

3.Indifference curve

analysisConsumer

equilibrium

Budget line

4.Engel curve

5.Revealed preference theory

Samuelson RP 2.Hicks RP

Strong ordering Weak ordering

6.Theories of production

1.Cobb-Douglas

production function

2.Constant elasticity

of substitution(CES)

7.COST ANALYSIS

1.Classical analysis

2.Modern theory of cost.

8 mkt strte

Duopoly theories

9.Equilibruim analysis

2.General eqm1.Partial eqm

Marshall Walrus

10.Cob-web model

11.Managerial theories

1.Sales maximization

2.Managerial theory of firm

3.Bain limit pricing theory

Baumal Marris

12.Technological progress-J.R.Hicks

13.Theory of Rent

Ricardo/classicalTheory of Rent

Modern Concept of Rent

14.Theory of Interest

Classical theory of interest.

Neo-classical/loan

able fund theory

15.Theory of profit

J.B.Clark

1.General eqm of consumption

16.Welfare Economics

General exchange eqm

Bergson-Samuelson

social welfare function

Arrow impossibility

theory

2.General eqm of production

3.General eqm of consumption and production

Also called pareto optimality

conditions

Subject -2Macro-economics

Important topics for

UGC-NET

Economics

1.National Income-

Aggregates of N.Y

Real GDP Nominal GDP GDP deflator

Base year of GDP

Base year of WPI,&CPI,

2.Classical theory of employment

Assumptions .

Determination of output and employment in different equilibrium.

1.Labour mkt eqm

2.Goods mkt eqm

3.Money mkt eqm

4.Wage price

flexibility

Keynesian critics over classical

3.Keynesian theory of Income

Output and employment

Unemployment and full employment

Classical view

Keynesian views

4.Consumption function

propensities

Propensity to consume

Propensity to save

APC MPCAPS MPS

5.Concept of Multiplier

Employment multiplier

Investment multiplier

Balance budget multiplier

Concept of Accelerator

Super multiplier

6.Four important theories of macro-economics

1.Kenyes psychological

law of consumption

2.Relative income hypo.

3.Permanent income hypo

4.Life cycle Hypo.

Absolute income

hypothesis

7.Theories of investment

1.Profit theory of investment-fisher

Financial theory of investment- Duesenberry

Neo-classical theory of investment-jorgenson

Tobin Q-Theory of Investment

Determinants of investment-Acc to cllassical, Acc to keynes, Acc to modern economist.

8.Concept of Money

Supply of money- M1,M2,M3,M4

High power money

Money multiplier

Quantity theory of money

Cash transaction approach

Cash balance approach

Irvin fisherMarshall , Pigou, Robertson,and keynes

RBI’s monetary Instrument

Friedman restatement of the QTM

Keynesian theory of Money and Price

Keynes vs Friedman

9.Keynesian approach

(Liquidity preference)

2.Critics theories of LP

Boumal inventory theoretical approach

Tobin portfolio selection model

10.Three important effects

1.Pigou effect(wealth

effect)

2.Keynesian effect

3.Real balance effect

11.Theories of inflation

Classical view

2.Keynesian view

Monetarist view

Philip curve analysis

Short run PC

Long run PC(Friedman

view)

1.Innovation theory of BC

5.Hicks theory of

BC

12.Theories of business cycle

2.Cob-web model of

BC

3.Keynes theory of

BC

4.Samuelson theory of

BC

6.kaldor theory of

BC

13.IS-LM approach

IS-LM and monitory policy

IS-LM and fiscal policy

14.New classical macro-economics model

Some important topics

Okun’s law

Balance of payment

Golden rule of acumination- Admund phelp

Trickle up and trickle down effects.

Real business cycle

Greshams law

Concept of deflation

Money illusion

Fiscal illusion

Sub -3Economic growth and

Development

Important topics for

UGC-NET

Economics

1.Measuring development

4.Gender inequality

Index.

2.HDI(1990)

1.PQLI(1979)

3.Multy-dimensional Poverty index(MPI)

2010

HDIReplaced HPI 1997

2.Measuring INEQUALITY

1.Lorenz curve 2.Gini coefficient

Simon Kuznets's inverted U hypothesis

3.Theories of development

4.Marxiantheory

2.Malthus theory

1.Adam Smith theory

3.David Ricardo theory

5.Rostow’smodel

4.Theories of economic growth

1.Harrod growth Model

2.Domor growthmodel

classical

Steady growth eqm.

Razor edge effect.

Knife edge eqm

1.Harrod growth Model

4.Theories of economic growthNeo-classical

4.Mead model

2.Endogenous growth model

1.Sollow model

3.Joan Robinson

model

5.Theories of dualism

1.Socail dualism- Boeke

2.Ecological dualism- Geertz

3.Technological Dualism- Benjamin Higgins

4.Enclave dualism– singer,furtado and myint

5.Financial dualism- myint

6.Internatinal dualism- Michael Tadaro

7.Geographical dualism- Gunnar Myrdal

6.Other theories of development

1.Lewis theory(utilization of surplus

manpower-1)

2.Fie & Ranis theory(utilization of surplus

manpower-2)

7.Approaches to development

1.Balance growth 2.Unbalance

growth

Nurkse-vicious cycle of poverty

Rodan –Big push theory

Theories of critical minimum efforts-

Leibenstein

Low level eqmtrap theory-

Nelson

8-concept of shadow prices.

9-input output analysis

10-dependancy theory of development

11.Technical progress in growth

1.Hicks tech progress model

2.Disemboided Tech progress

3.EmboidedTech

progress

12.Model used in five year plans

Golden rule of accumilation

Technical progress- Hicks and harrod.

HDI ranking and India

Prebisch, singer and Myrdal theory from

international trade.

Some other imp topics

Sub -4international-

economics

Important topics for

UGC-NET Economics

1.Classical theories of international trade

1.Absolute cost advantage

theory

1.comparative cost advantage

theory

Adam smithDavid Ricardo

2.neo-Classical theories of international trade

1.Opportunity cost theory

2.Theory of reciprocal demand

G.Haberler J.S.Mill

3.modern theories of international trade

Heckscher-Ohlin theory

Classical vs H-O theory

4.other theories of international trade

1.Factor price equalization

2.Stopler-samuelson theorem.

3.Metzler paradox

4.Lerner symmetry theorem

5.Theory of custom union

Partial eqm General eqm

j.viner Prof. Lipsey,

J.Vanek

6.The European union and e.u currency

European monetary system

The euro

The euro currency market

7.Some int. trade theories

1.The Rybczynski theorem

2.Availability theory of int.

trade- cravis

3.Linder’s theory of demand

and trade pattern

8.Concept of terms of trade(tot)

5.Double factor TOT

4.Single factor TOT

1.Net barter

TOT

2.Gross barter

TOT

3.Income TOT

Factors affecting TOT

9.Balance of payment

BOP adjustment mechanism

Devaluation and BOP

10.DEVALUEATION THEORIES

5.Expenditure switching policy

4.The absorption approach

1.The elasticity approach

2.Marshall Lerner

condition

3.J.curve effect

11.Foreign exchange

1.Spot rate

2.Forward exchange rate

3.Currency swap.

4.speculation

12.Gold standard

Foreign exchange rate.

Breton wood system

Fixed or paged exchange rate..

14.International org.

4.ASEAN

1.WTO

2.IMF

3.WORLD BANK

13.Optimum currency area

Dumping

Effect of tariffs in short run, medium

and long run

Economic integration

Economic union

Dumping

Some imp. points

Types of tariff

Elasticity's of TOT

Current account convertibility

capital account convertibility

Optimum tariff

Sub -5Public finance

Important topics for

UGC-NET

Economics

1.Type of goods

1.Publicgoods

2.Private goods

3.Merit goods

Asymmetric information

Moral hazard.

Adverse selection

2.Principal of public finance

Given by Prof.Dalton and

Prof. Pious

3.Public budget

Canons of budgeting –H.D. Smith

Various public funds

1.Consolidated fund.

2.Contigency fund.

3.Supplimentary fund/grant

4.Techniques of budgeting

1.Performance budgeting.

2.Programme budgeting.

3.Zero base budgeting-peter A. Phyrr 1969.

5.Concept of deficit

Revenue deficit .

Capital deficit.

Budget deficit

Fiscal deficit

Primary deficit

Net fiscal deficit

Primary deficit .

Monetized deficit

Effective revenue deficit

Structural deficit

operational deficit

6.Theories of public finance

1.Adolf Wagner’s

hypothesis

2.Peacock-wiseman

hypo.

3.Colin –Clark hypo.

1.Displacement effect

2.Inspection effect

3.Concentration effect

Critical limit

Hypo.

7.Canons of expenditure

Findley shirras

8.Canons of taxation

Given by Adam Smith

1.Benefit principal

2.Benefit received theory

3.Ability to pay theory

9.Theories of distribution of tax burden

LindahlSeligman

Pigou &seligman

10.Sacrifice principal

Given by Richard Musgrave

1.Equal absolutesacrifice

2.Equal proportional

sacrifice

3.Equal marginal sacrifice

sacrifices

11.Concept of public debt

Short term debt

Medium term debt

Long term debt

Redeemable debt

Irredeemable debt

Funded debt

Unfunded debt

12.Fiscal federalism

1.Statelist

2.Central list

3.cuncurrent list

List 1 seventh schedule

List 2 seventh schedule

13.Finance commission

Head of diff. finance commissions.

Articles related FC..

Grants in aids to diff. states..

14.Fiscal policy

1.Concept of Classical fiscal policy.

2.Concept of modern fiscal policy

Built in stabilizer

Discretionary fiscal policy.

15.Burden of public debt

Direct money burden

Indirect money burden

Direct real burden.

Indirect real burden.

Tax buoyancy .

Tax ratio-

Lafer curve.

Taxable capacity .

Horizontal equaty

Vertical equity

Some other imp points

Tax capitalization

Sub -6statistics

Important topics for

UGC-NET

Economics

1.Measures of central tendency

average

Mathematical average

Positional average

Arithmetic mean

Geometric mean

Harmonicmean

Median Mode

2.Measure of dispersion

There are 6 methods to measuring dispersion

1.Range

2.Interquartile Range

3.Mean Deviation

4.Standard Deviation

5.coeff. Ofvariance

6.Lorenz Curve

3.Measure of skewness

3 important methods of measuring skewness.

1.karl Pearson method

symmetrical.

Asymmetrical= +ve and –ve skewed.

2.Bowleymethod

3.kelly’smethod

4. Measure of kurtosis

3 moments of kurtosis.

3 types of kurtosis

Lepto-kurtic Meso-kurticplato-kurtic

Measures of kurtosis.

5. correlation

Degree of correlation.

Methods of studding correlation

1.Karl Pearson method

2.Spearman rank

correlation

3.Concurrentdeviation

Coefficient of Determination

6.Linear regression analysis

Least square method.

Regression equation

Regression coefficient.

Properties of regression coefficient.

Standard error

7.Index number

Simple/un weighted I.N Weighted I.N

1.Laspeyre’smethod

2.Paasche method

3.Fishermethod

4.Dorbish and Bowley

method

5.marshall-edgeworth

model

6.kelly’s method

8-test of adequacy of I.n

1.Time reversal test

2.Factor reversal test

3.Circulartest

Index number -2

Base shifting

splicing

Deflating of index number

Purchasing power of money

9-pobability

Addition theorem

Multiplication theorem

Bernoulli’s theorem

Binomial distribution

Normal distributionProperties-

Shape of normal curve

10. Sampling methods

1l.probability sampling

2.non-probability sampling

1.Random sampling

2.Stratified sampling

3,systematic sampling

4,multi-stage sampling

5.Cluster sampling

1.Judgement sampling

3.Convenience sampling

2.Quata sampliing

4.Extensive sampling

5.Purposive sampling

11.Test of hypothesis

Small and large sample test.

1.T-Test 2.Z-test 3.F-test

Type 1 error

Type 2 error

12-chi square test

assumption

conditions

Analysis of variance(anova)

Sub -7econometrics

Important topics for

UGC-NET

Economics

1.Simple linear regression model

Assumptions of regression

Standard error.

T-test ,.

Z-test.

Goodness of fit R2

MULTIPLE regression model

2.Least square estimation/OLS

Properties of OLS estimator

1.Unbiasedness

2.Least variance

4.Linear estimator

5.Best linear unbiased

estimator(BLUE)

3.Efficient estimator

7.Consistent estimator

8.Minimum mean square

estimator

9.Sufficient estimator

3.AUtocorelation

First order autocorrelation

Higher degree autocorrelation

Tests of autocorrelation

1.Durbin-Watson test

2.von-neumann ratio test

Conditions or equation of autocorrelation

4.heteroscedasticity

Conditions or equation of Heteroscedesticity

Reasons for the problem of Heteroscedesticity

Consequences of Heteroscedesticity

Tests of Heteroscedesticity

There are 6 test of Heteroscedesticity

5.multicoliniarity

Conditions of multicolinearity.

Reasons for problems of multicolinearity.

Consequences of multico.

Tests of multicolinearity

6.Dummy variable

Dummy dependent variable model.

7.Simultaneous-equation model

assumptions.

Consequences of simultaneous-eqn

Simultaneous-equation method

1.Single equation method(5)

2.System method(2)

1,indirect least square method(ILS)

2.Instrument variable(IV)

3.Two stage least sq (2SLS)

4.Limited info. Maxi livelihood

5.Mixed estimation method.

2.Full info. Maximum

livelihood.(FIML)

1.three stage least sq (3SLS)

8-TIME SERIES ANALYSIS

STATIONARY AND NON-STATIONARY PROCESS

RANDOM WALK MODEL

STATIONARY TESTS

UNIT ROOT TEST DICKY-FULLAR TEST

9-THE PRODUCTION FUNCTION

1.Cobb-Douglas production function

2.C.E.S Production

function

Sub -08Indian economy

Important topics for

UGC-NET

Economics

1. Indian agriculture

1.Role of agriculture in Indian GDP.

2.Agriculture census.

3.New agriculture policy(2000)

2.Agricultural (land) reforms

1.Technical reforms

2.Institutional reforms.

3.General reforms

1.Zamidari system.

2.Ryotwari system.

3.Mahalwari system.

2.Concept of green revolution.

3.Money and banking

1.Suply of money.- measures M1,M2,M3,M4

2.Concept of inflation.- WPI, CPI. Base year.

3.Monetary policy of RBI- repo rate,bank rate,

RRR,MSF, CRR ,SLR.

4.PUBLIC FINANCE

1.Fedral system in India.(central and state govt

relationship)

1.Central lista(66 sub)

2.State list(97)

3.ConcurrentList(47)

List 1 seventh schedule. List 2 seventh schedule.

12 items of taxation. Rest all taxes included in

state list.

5. Industry.

1.New industrial policy 1991.

Industrial policies-1947,1956,1977,198o,1991.

2.MSME’s- investment limit.

In service sector and manufacturing sector.

Base year of index of industrial production (IIP).

Growth of manufacturing , mining and

electricity.

6.Povery and unemploymentPolicies of govt.like-MGNREGA,

SJSSY,SJGSY,IAY, and some new policies

Some committees on poverty and unemployment.

7.Planning in India.

Objectives of five year plane..like

1st FYP –agricultural development. Based on H-D model

2nd FYP – Industrial development. Based on

Mahalanobeismodel.

3rd FYP – balance(agri+industry) development.

Types of planning.

Imperative planning.

Indicative planning.

Perspective planning.

Rolling planning

Core planning.

8. Black money.

Parallel economy,.

Committees on black money.

9.Social indicator.

IMR.

MMR.

Birth rate.

Death rate.

General Fertility rate..

total Fertility rate..

Gross fertility rate.

Neonatal martality.

Prenatal mortality.

Neonatal mortality.

10.Indian export and import.

Largest trade partner of India.

Top 5 export partners of India.

Top 5 import partners of India.

Top 5 exportable commodity of India.

Top 5 importable commodity of India.

Subject wise imp topics (eco)

Chanakya group of economics

INDIAN ECONOMY

UGC-NET PAPER-2 (ECO),pgt Eco, UPSC, IES