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1 VARENDRA UNIVERSITY Department of Economics Syllabus Bachelor of Social Science (BSS) Program in Economics 2014-2015 to 2017-2018
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VARENDRA UNIVERSITY Department of Economics
Syllabus
Bachelor of Social Science (BSS) Program in
Economics
2014-2015 to 2017-2018
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BSS Honors Program in Economics
The BSS (Honors) program spans over four academic years and has 12 semesters with a total of
120 credits.. Each year has 3 semesters, which are Fall (September to December), Spring
(January to April), and Summer (May to August). The program is intended to equip the
students with theoretical and empirical knowledge of Economics. There are several courses on
Bangladesh economy, which will enable the students to grasp the progress of the economy of
Bangladesh.
There are also courses in basic computing with application of specialized software to
Economics and a course on computer literacy. These courses includes rapid typing, word
processing, spreadsheet analysis, power point presentation, and basic web designing.
The Department of Economics belongs to the Faculty of Social Science and Humanities of this
university. Students having S.S.C and H.S.C. or equivalent levels are eligible for admission to
this program.
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Year and Semester-wise Credit Distribution
First Year: Semester-1
Course Code Course Title Credit
ECO 101 Microeconomics- I 3.0
MATH 101 Mathematics for Economics-I 3.0
CSE 101 Basic Computing 3.0
ENG 101 Fundamentals of English 3.0
Total 12.0
First Year: Semester-2
Course Code Course Title Credit
ECO 102 Macroeconomics- I 3.0
ECO 103 Agricultural Economics 3.0
STAT 101 Statistics for Economics- I 3.0
Total 9.0
First Year: Semester-3
Course Code Course Title Credit
ECO 104 Public Finance 3.0
ECO 105 Bangladesh Economy- I 3.0
ECO 106 Computer Literacy 3.0
ECO 107 Viva Voce 2.0
Total 11.0
Second Year: Semester-4
Course Code Course Title Credit
ECO 201 Microeconomics- II 3.0
ECO 202 History of Capitalist Development 3.0
ECO 203 Bangladesh Economy -II 3.0
Total 9.0
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Second Year: Semester-5
Course Code Course Title Credit
ECO 204 Macroeconomics- II 3.0
ECO 205 History of Socialist Development 3.0
MATH 102 Mathematics for Economics- II 3.0
Total 9.0
Second Year: Semester-6
Course Code Course Title Credit
ECO 206 Money and Banking 3.0
ECO 207 Project Appraisal 3.0
STAT 102 Statistics for Economics- II 3.0
Total 9.0
Third Year: Semester-7
Course Code Course Title Credit
ECO 301 Econometrics- I 3.0
ECO 302 Research Methodology 3.0
ECO 303 Specialized Statistical Software for
Economics
3.0
ECO 304 Industrial Economics 3.0
Total 12.0
Third Year: Semester-8
Course Code Course Title Credit
ECO 305 History of Economic Thought 3.0
ECO 306 Development Economics-I 3.0
ECO 307 International Economics- I 3.0
Total 9.0
5
Third Year: Semester-9
Course Code Course Title Credit
ECO 308 Econometrics- II 3.0
ECO 309 Resource and Environmental Economics 3.0
ECO 310 Health Economics 3.0
ECO 311 Viva Voce 2.0
Total 11.0
Fourth Year: Semester-10
Course Code Course Title Credit
ECO 401 Financial Investment and Security
Analysis
3.0
ECO 402 Urban Economics 3.0
ECO 403 Labour Economics 3.0
ECO 404 Cost Benefit Analysis 3.0
Total 12.0
Fourth Year: Semester-11
Course Code Course Title Credit
ECO 405 Development Economics- II 3.0
ECO 406 International Economics- II 3.0
ECO 407 Regional Economics 3.0
Total 9.0
Fourth Year: Semester-12
Course Code Course Title Credit
ECO 408 Undergraduate Thesis 6.0
ECO 409 Viva Voce 2.0
Total 8.0
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Detailed Syllabus
Semester-1
ECO 101: Microeconomics-I
1. Definition and Scope: Consumer and producer, scarcity, microeconomic theory and its
uses.
2. Demand and Supply: Demand and supply curves, market equilibrium, changes in
equilibrium.
3. Consumer Behaviour: The indifference curve and its characteristics, the consumer
equilibrium, changes in consumer equilibrium—income, price, and substitution effect.
4. The Theory of the Firm: Perfect competition, equilibrium of the firm under perfect
competition.
5. The Theory of the Firm: Monopoly, Equilibrium of the firm under monopoly, short
run and long run equilibrium.
6. Price discrimination: Basic assumptions, equilibrium of a price discriminating
monopolist.
Books Recommended
1. N.G. Mankiw. Principles of Microeconomics, 2012, CENGAGE Learning, 6th
Edition.
2. D. Salvatore. Microeconomics: Theory and Application, 4th
Edition, 2003, Oxford
University Press.
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Math101: Mathematics for Economics-I
1. Introduction: Mathematical versus Nonmathematical Economics, Ingredients of a
Mathematical Model- Variables, Constants and Parameters, Equations and Identities,
Types of Functions, Functions of Two or More Independent Variables, Inequalities.
2. Static Analysis: The Meaning of Equilibrium, Partial Market Equilibrium-A linear
model, Equilibrium in National Income Analysis.
3. Comparative Static Analysis: The Nature of Comparative Statics, Rate of Change and
the Derivative, The Derivative and the Slope of a Curve.
4. Comparative Static Analysis of General Function Model: Differentials, Total
Differentials, Rules of Differentials, Total Derivatives, Derivatives of Implicit
Functions, Comparative Statics of General Function Models, Limitations of
Comparative Statics.
5. Optimization Problem: Optimum Values and Extreme Values, Relative Maximum and
Minimum: First Derivative Test, Second and Higher Derivatives, Second Derivative
Test, Economic problem.
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6. Production Function: Cobb-Douglas production function, marginal productivity,
degree of homogeneity and returns to scale, Euler’s theorem.
Books Recommended
1. Alpha C. Chiang, Kevin Wainwright, Fundamental Methods of Mathematical
Economics, 4th
Edition.
2. Edward T. Dowling, Introduction to Mathematical Economics. 2nd
Edition.
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CSE 101: Basic Computing
1. Introduction: Basic Concepts- Definition of Computer, Basic Functions of Computer,
Characteristics of Computer, Limitations of Compute, Usages of Computer.
2. Hardware and Software: Hardware- Definition, CPU, Input and Output Devices,
Memory Disk and Drives, Software- Definition, Types of Software, Operating System,
Usages of Operating System, Windows-7.
3. Word Processing (MS Word)-1: Basic Operations: Opening Page, Preparing a
Document, Save, Open a Document, Cursor Control Commands, Text Deletion, Undo,
Redo, Search/Find, Special Effects (Bold, Italic, Underline, Subscript, Superscript, Font
Selection, etc), Print Commands.
4. Word Processing (MS Word)-2: Footnotes and Endnotes, Header and Footer,
Preparing a Table, Insert Table, Draw Table, Pictures, Graph and Charts Using MS
Word, Consumer and Producer Equilibrium with Graph, Equation, Symbol.
5. Spreadsheet (MS Excel): Definition of Spreadsheet, Usages of Spreadsheet, Preparing
Worksheet, Save Worksheet, Open Work sheet, Delete raw, column, Data sort, Formula
and Function ( Summation, Division, Multiply, Percentage, Average etc.), Graph and
Chart, Preparation of Result, Financial Function (PV, FV, IRR, NPV).
6. The Internet: The World Wide Web, Google, Getting Connected to the Web,
Browsing the Web, Locating Information on the Web, Email.
Books Recommended
1. M. Lutfar Rahman and M. Alamgir Hossain: Computer Fundamentals, Systech
Publication Ltd, Dhaka.
2. Mahbubur Rahman MS Word, Systech Publication Lt.Dhaka, 2013.
3. Mahbubur Rahman, Ms Excel, Systech Publication Lt.Dhaka, 2013.
ENG 101: Fundamentals of English
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1. Basic Grammar: Articles, Verb and Time, Principal and Auxiliary Verbs, Subject-
Verb Agreement, Sentence Structure and Clause, Questions (Tag Question, WH-
Questions, Negative Questions), Number, Preposition, Active and Passive Voice.
2. Reading: Reading Comprehension passage and answering unseen passage (True/False,
Multiple Choice, Vocabulary, Matching Sentences, short questions, fill in the gaps,
summary writing etc).
3. Writing: Writing paragraph, Curriculum Vitae (C.V) and formal application,
rearrangement of sentences.
Books Recommended
1. Paresh Chandra Das, Applied English Grammar and Composition (English Version),
NCBA, 2010.
2. J. Eastwood. Oxford Practice Grammar, New Edition, Oxford University Press, 1999.
3. M. . Inhoof and H. Hudson, From Paragraph to Essay. Hong Kong Longman Group ltd.,
1998.
4. R. Murphy, Intermediate English Grammar. 2nd
Edition. Cambridge University Press,
1994.
Semester-2
ECO 102: Macroeconomics-I
1. Basic Concepts and Relationships: Definition of macroeconomics, Difference
between micro and macroeconomics, relationships among macroeconomic variables,
the core objectives of macroeconomics.
2. National Income Accounting: GNP and GDP, disposable income, real and nominal
GDP and GNP, Measurement of GNP: product, income and expenditure method.
3. Income Determination: The saving-investment balance, planned and realized
investment, consumption, saving and tax functions, determinations of equilibrium
income, the investment multiplier.
4. Consumption Demand: The importance of consumption in aggregate demand,
consumption, expenditure and income, consumption functions, hypothesis of
consumption- the absolute income hypothesis and the relative income hypothesis.
5. Classical views of macroeconomic equilibrium and its criticism: Assumption of
Classical Model, Pillars of classical macroeconomics, Say’s Law, Wage flexibility,
Keynes criticism of the classical view.
6. Monetary and Fiscal Policy: meaning of monetary and fiscal policy, monetary and
fiscal policy in the IS-LM framework, fiscal policy and crowding out.
Books Recommended
1. W.H Branson, Macroeconomic Theory and Policy, 3rd
edition, 1994.
2. R. Dornbusch and S. Fischer, Macroeconomics, 7th
edition, 2000.
3. N. Gregory Mankiw. Macroeconomics, Worth Publisher,2007
4. P. A. Samuelson and W. D. Nordhaus , Economics, McGraw Hill- International Edition.
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ECO 103: Agricultural Economics
1. Introduction to Agricultural Economics: Need and Scope for a separate study of
agricultural economics, special features of demand and supply in agriculture.
2. Contribution of Agriculture to Economic Development: Product Contribution,
market Contribution, market contribution, factor contribution.
3. Agricultural Finance: Sources of agricultural capital and credit function of rural
money markets in LDCs, financial policies for agricultural development.
4. Agricultural Marketing and Pricing Policy: Scope and role of agricultural marketing,
marketing function and market structure, marketing costs, margins and efficiency,
market intelligence and grading, market integration, imperfections of agricultural
marketing in LDCs, marketing reform.
5. Land Reform: Types of land tenure system, share tendency, meaning of land reform,
objectives, benefits and limitation of land reform, land reform in the developing
countries.
6. Role of Government: Case for government intervention in agriculture, protection of
farmer’s income, security of supply, methods of agricultural price support-deficiency
payments system.
Recommended Books
1. Ghatak, S and Ingersent. Agriculture and Economic Development.
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STAT-101: Statistics for Economics-1
1. Introduction: Statistics, Population and Sample, inductive and deductive/descriptive
statistics, Variables-discrete and continuous variables, graphs, equations, inequalities,
notation, summation notation.
2. Frequency Distribution: Raw Data, arrays, frequency distribution, class intervals and
class limits, class boundaries, the size of a class interval, class mark.
3. General rules for forming frequency distribution, histogram, cumulative frequency
distribution and ogives.
4. Measures of Central Tendency-1: The arithmetic mean, properties of the arithmetic
mean, arithmetic mean computed from grouped data, the geometric mean, The
harmonic mean.
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5. Measures of Central Tendency-2: The relation between arithmetic, geometric and
harmonic means, the median, quartiles and percentiles, the mode, empirical relation
between mean, median and mode.
6. Measures of Dispersion: The range, the mean deviation, the variance, the standard
deviation, Properties of the standard deviation, coefficient of variation, standardized
variable, z-scores.
Books Recommended
1. Spiegel, Theory and Problems of Statistics
2. Lind, Marchal and Wathen, Statistical Techniques in Business and Economics, Fourteenth
Edition.
3. Rabindra Nath Shil, Subash Chandra Debnath, An Introduction to the Theory of Statistics,
3rd
Edition.
Semester-3
ECO 104: Public Finance
1. Definition and Scope of Public Finance: Definition of Public Finance, distinction
between private and public finance, public goods and private goods..
2. Public Revenue: Definition of tax, characteristics of a good tax system, objective of
taxation, taxation in a developing country.
3. Incidence of Taxes: The impact, the incidence and the effects of a tax, shifting of a tax.
4. Classification and Choices of Taxes: Single and multiple tax system, proportional and
progressive tax system, direct and indirect tax. Merits and demerits of direct and
indirect tax.
5. Public Debt: Meaning of public debt, public debt and private debt, importance of
public debt, burden of debt and future generation.
6. Public Expenditure: Meaning and nature of public expenditure, Wagner’s law of
increasing state activities, Wiseman-Peacock hypothesis, the critical limit hypothesis,
distinction between private and public expenditure.
Books Recommended
1. J.R., Aronson, Public Finance, McGraw-Hill, 1985, Singapore
2. H.L. Bhatia. Public Finance, Vikas Publishing House, 26th
Edition, 2013, New
Delhi.
3. R.A. Musgrave. and Musgrave, P.B., Public Finance in Theory and Practice.
4. H.S. Rosen. Pulic Finance, McGraw Hill,7th
Edition, 2005, New York.
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ECO 105: Bangladesh Economy-I
1. Introduction: Basic Economic Problems of Bangladesh - Main Characteristics of
Bangladesh Economy - Basic Economic Problems of Bangladesh, Solution of the
Economic Problems, Causes of Low per capita Income and Low Standard of Living in
Bangladesh. Measures to Increase per Capita Income. Non-Economic Problems of
Bangladesh.
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2. Economic Development - Concepts of Development and Underdevelopment -
Economic Growth and Economic Development. Causes of Economic Backwardness -
Methods of Processes and Determinants of Development - Economic Development of
Bangladesh.
3. Resources for Development - Internal and External Resources - Private and Public
Resource - Methods for Mobilization of Domestic Resource - Role of Foreign Aid,
Foreign Capital in Economic Development.
4. Agricultural Development of Bangladesh - Modernization - Problems & Solutions.
5. Industrial Development of Bangladesh - Processes of Industrialization-
Nationalization of Industries - Problems and Prospects of Nationalized, De-nationalized
and Private Industries - Small & Medium Industries - Importance of Small and Cottage
Industry in the Economy.
6. Economic Planning in Bangladesh - Short & Long-range Planning - Population
Policy and Manpower Training.
Books Recommended
1. Bangladesh Economic Review, Ministry of Finance of Bangladesh.
2. Bangladesh Bank, Annual Report, Statistical Division.
3. Bangladesh Bureau of Statistics Publication.
4. First, Second and Third, Fourth, Fifth and Seventh Five Year Plans of Bangladesh.
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ECO 106: Computer Literacy
1. Rapid Typing 1: Importance of rapid typing, the keyboard, typing without looking at
the keyboard.
2. Rapid Typing 2: Rapid Typing software, lessons of Rapid Typing, Rapid Typing test.
3. MS PowerPoint 1: Introduction of PowerPoint, Screen and title bar, menu bar, slide
show.
4. MS PowerPoint 2: Preparing PowerPoint for presentation, alignment, Editing, drawing
a graph, flow chart, picture and clip art.
5. Web Page Development 1: Basic concept of web design, Languages of web design,
internet verses the web, webpage addresses.
6. Web Page Development 2: Responsive web design, steps for web page preparing,
paragraphs, headings, adding images, table markup, Hyper Text Markup Language
(HTML).
Books Recommended
1. M. Lutfar Rahman and M. Alamgir Hossain: Computer Fundamentals, Systech
Publication,2013.
2. Mahbubur Rahman MS Word, Systech Publication Lt.Dhaka, 2013.
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3. Mahbubur Rahman, Ms Excel, Systech Publication Lt.Dhaka, 2013.
4. Bappi Ashraf, Mastering MS PowerPoint, Gyankosh Prokashani, Dhaka, 2013.
5. Bappi Ashraf, Mastering Web Design and Development, Part 1 & 2. Gyankosh
Prokashani, Dhaka, 2013.
ECO 107: Viva-Voce
Semester-4
ECO 201: Microeconomics- II
1. Consumer Theory: The indifference curve analysis, equilibrium of the consumer, the
Slutsky equation and its interpretation.
2. Production Functions: Concept of production function, homogeneity of production
functions, Cobb-Douglas production function, and the CES production function.
3. Economics of Imperfect Competition—monopoly and duopoly: The Cournot model,
collusive oligopoly, cartels and joint profit maximization price leadership, monopolistic
competition.
4. Average Cost Pricing: A critique of the neoclassical theory of the firm, the marginalist
controversy, a representative model of average cost pricing.
5. Theory of Sales Revenue Maximization: Rationalization of the sales maximization
hypothesis, Baumol’s static models, Baumol’s dynamic models.
6. Welfare Economics: Needs of welfare economics, Pareto optimality for consumption
and production, and its limitations.
Books Recommended
1. A. Koutsoyiannis, Modern Microeconomics, ELBS, 1979.
2. J. M. Henderson, and R. E. Quandt, Microeconomic Theory: A Mathematical Approach.
ECO 202: History of Capitalist Development
1. Economy of the U.K--The Pre Capitalist Period: Medieval economic
organizations—the manorial system; mercantilism—rise of merchant capital.
2. Agricultural Revolution: Agricultural Revolution of the 16th
and 18th
century in U.K.
3. Industrial Revolution: Rise of industrial capital—industrial revolution; laissez faire,
rise and decline of free trade and ascendancy in world trade.
4. Colonial Economy of North America: British Mercantile Policy and American war of
independent—its economic causes and consequences.
5. Agricultural Trend in U.S.A: Rising factory system, civil war and its economic causes
and consequences.
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6. Economy of Japan: Tokugawa period—Rising influence of merchants in the late
Shogunate period; the Meiji restoration.
Books Recommended
1. G. C. Allen, A Short Economic History of Japan.
2. Faulkner, American Economic History.
3. Southgate, English Economic History.
ECO 203: Bangladesh Economy-II
1. Demographic Characteristics: Size and composition of the population, density and
regional distribution of population, the size and occupational distribution, economic
significance of population.
2. National Income and its Distribution: The size and composition of the GDP and GNP
at constant and current prices, tends of per capita GNP and living standard of
population, income distribution and magnitude of poverty.
3. Sector Wise Contribution to GDP: Major sectors of GDP and their contribution on
Bangladesh economy, agriculture, industry and service sectors and their sub sectors.
4. External Sector: Volume, composition and direction of foreign trade, the balance of
trade and the balance of payment, the exchange rate.
5. Economic Infrastructure: Transport and communication, power and energy, education
and housing, social and economic institutions.
6. Public Finance: Government budgets, revenue and capital budgets, public borrowing
and debt servicing, development budget.
Books Recommended
1. Bangladesh Economic Review, Ministry of Finance of Bangladesh.
2. Bangladesh Bank, Annual Report, Statistical Division.
3. Bangladesh Bureau of Statistics Publication.
4. First, Second and Third, Fourth, Fifth and Seventh Five Year Plans of Bangladesh.
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Semester-5
ECO 204: Macroeconomics-II
1. Consumption Demand: Two theories of consumption demand—the permanent income
hypothesis and the life cycle hypothesis.
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2. Investment Demand: Importance of investment in macroeconomic analysis, business
fixed investment, residential investment and inventory investment.
3. Demand for money: Components of the money stock, the function of money, the
demand for money—theory of demand for money—empirical evidence.
4. Supply of money: The instruments of monetary policy, the mechanism of monetary
expansion, the determinants of the money supply, empirical estimates of interest
elasticity.
5. Labour Market: The demand for labour, the supply of labour, equilibrium in the
labour market.
6. Inflation and Unemployment: The Phillips curve, the relationship between inflation
and unemployment, the short and long run Phillips curve, adaptive expectation in the
Phillips curve.
Books Recommended
1. W.H. Branson, Macroeconomic Theory and Policy, 3rd Edition, Indus, 1994
2. R. Dornbusch and S. Fischer, Macroeconomics, 4th
Edition, Norton, 1994
3. N.G. Mankiw, Macroeconomics, 6th
Edition, Worth Publishers.
ECO 205: History of Socialist Development
1. Economic Laws of Socialism: Rise, establishment and stages of development of
socialism, social ownership of the means of production,
2. Planned Development in Socialism: Character of labour and basic economic law of
socialism, planned development in socialist economy and economic role of socialist
state.
3. Revolution and New Policies in USSR: Russian economic development prior to the
First World War, Proletariat revolution, period of war communism, Transition to new
economic policy.
4. Crisis and the Planning System in Soviet Union: Scissors crisis of 1923 and
industrialization debate, Agrarian situation on the eve of first five year plan, three five
year plans.
5. Revolution in China and the Beginning of Mao era: Understanding China, Opium
war, Sino-Japanese war, Nationalist revolution, impact of the west and socio-economic
changes(1905-1930),rise of Chinese communist party, civil war, first five year plan in
china and its results.
6. Socialist Transformation and Post Mao Reforms: The Great Leap Forward
movement, people’s commune, cultural revolution, reforms in post Mao era and
impacts.
Books Recommended
1. Kozlov, Political Economy: Socialism
2. Kozlov, Political Economy: Capitalism
3. M.A. David, The Making of Modern China.
15
MATH 102: Mathematics for Economics-II
1. Integration: Concepts of integration—indefinite integrals, definite integrals, rules of
integration, applications of indefinite and definite integrals—marginal function to total
function, consumer’s surplus.
2. Exponential and Logarithmic Functions: Problems of rate of growth—compound
interest and economic interpretation, compounding periods—future value of a series of
payment, present value of a series of payment—benefit cost ratio, internal rate of return.
3. Differential Equation: Definition and classification, homogeneous and non
homogeneous equation, dynamics of market price, higher order differential equations.
4. Difference Equation: General solution for first order difference equation, second order
difference equation, the Cobweb model.
5. Matrix: Concept of a matrix, rank of a matrix, the eigenvalue problem, maxima and
minima in matrix terms.
6. Linear Algebra: Applications to market and national income model.
Books Recommended
1. Alpha C. Chiang & Kevin Wainwright, Fundamental Methods of Mathematical Economics ,
4th
Edition.
2. Edward T. Dowling, Introduction to Mathematical Economics. 2nd
Edition.
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Semester-6
ECO 206: Money and Banking
1. Money: Definition, functions of money, kinds of money- commodity standards, fiat
standards, deposit money, near money, credit and money.
2. Quantity Theory of Money: The transaction velocity approach, the cash balance
approach, the income version of the Cambridge equation, criticism of the traditional
quantity theory.
3. Commercial Banking: Concept of balance sheet of a commercial bank, portfolio
management of commercial banks-the risk returns indifference curve, the mean and
variance portfolio.
4. The Supply of Money: Economics of deposit creation, complications—currency drain,
excess reserve, non-personal time deposit, the money multiplier.
5. Central Banking: Functions of central bank, the goals of central banking, central
banking in an underdeveloped country, and objectives of monetary policy.
6. Monetary and Financial Management: Instruments of monetary control—open
market operations, discount rate policy, variations in reserve requirements.
Books Recommended
1. D.G. Luckett, Money and Banking.
2. M.C. Vaish, Monetary Theory
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3. Sethi, Money Banking and International Trade.
ECO 207: Project Appraisal
1. The Project: Definition and different stages of a project; implementation and
evaluation; objective of financial and economic appraisal of projects.
2. Financial Appraisal: Net present value (NPV), benefit-cost ratio (B-C), internal rate of
return (IRR), relative discussion of these methods.
3. Economic Appraisal: Rationale for economic analysis of projects, need for public
project, use of shadow price, measuring changes in economic welfare.
4. Measurement of Economic Prices: Domestic versus international prices, Valuing
tradable versus non traded goods, UNIDO and LM methods.
5. Choice of Discount Rate: Appropriate social rate of discount, different methods of
discounting in public sector, Social discount rate, social opportunity cost rate, social
time preference rate.
6. Environmental and Project Appraisal: Reasons for valuation of environmental
externalities, Valuation of environmental aspects.
Books Recommended
1. Harry Campbell and Richard Brown, Benefit-Cost Analysis: Financial and Economic
Appraisal using Spreadsheets, Cambridge University Press, 2003.
2. F. Perkins, Practical Cost Benefit Analysis: Basic Concepts and Application,
Macmillan, 1994.
STAT 102: Statistics for Economics-II
1. Elementary Probability Theory: Definition of probability, independent and dependent
events, mutually exclusive and non-mutually exclusive events, conditional probability,
basic theorem of probability theory.
2. The Binomial, Poisson and Normal Distribution: The binomial, Poisson and normal
distribution, their characteristics, mean and variance, relationship among binomial,
Poisson and normal distribution.
3. Elementary sampling Theory: Sampling theory, random sampling, sampling with and
without replacement, types of sampling, sampling distribution and its characteristics.
4. The Chi-Square Test: Observed and theoretical frequencies, definition of Chi-Square,
confidence interval, significance of test, goodness of fit.
5. The t-test and F-test: Small samples, student’s distribution, confidence interval,
degrees of freedom.
6. Analysis of Variance (ANOVA): The purpose of analysis of variance, one- way
classification, mathematical model for ANOVA, distribution of variation, ANOVA
table.
Books Recommended
1. Spiegel, Theory and Problems of Statistics.
17
2. Lind, Marchal &Wathen, Statistical Techniques in Business and Economics, Fourteenth
Edition.
3. Rabindra Nath Shil, Subash Chandra Debnath, An Introduction to the Theory of Statistics,
3rd
Edition.
Semester-7
ECO 301: Econometrics-I
1. Definition and Scope of Econometrics: Definition and scope of econometrics, goals of
econometrics, division of econometrics.
2. The Two-Variable Linear Regression Model: The simple linear regression model,
assumptions of the model, OLS estimations, properties of the least squares estimators.
3. Extensions of the Two-Variable Linear Regression Model: Regression through the
origin, functional forms of regression model.
4. The General Regression Model: The assumptions of the model, OLS estimation of the
model, and adjusted .
5. The Problem of Multicollinearity: Definition of multicollinearity, consequences of
mulicollinearity, measures to tackle multicollineariity problem.
6. The Problem of Heteroscedasticity: Definition of heteroscedasticity, consequences of
heteroscedasticity, measures to tackle heteroscedasticity problem.
Books Recommended
1. D. Gujarati, Basic Econometrics, 4th
Edition, McGraw Hill.
2. Johnston, Econometric Methods.
3. Koutsoyiannis, Theory of Econometrics.
ECO 302: Research Methodology
1. Research Problem: Definition of a research problem, selecting the problem, techniques
involved in defining a problem with illustration.
2. Research Design: Meaning and importance of research design, important concepts
relating to research design, different research designs, and experimental designs.
3. Sampling Design: Census vs survey, steps in sampling design, criteria for selecting a
sampling procedure, random sample.
4. Methods of Data Collection: Methods of collecting primary and secondary data,
selection appropriate method for data collection, case study method, data analysis and
processing.
5. Proposal Writing: Definition of a research proposal, ways of proposal writing,
contents of a standard research proposal.
6. Interpretation and Report Writing: Meaning of interpretation, technique of
interpretation, different steps in writing report, layout of the research report, precautions
for writing research report.
Books Recommended
18
1. C.R. Kothari, Research Methodology: Methods and Techniques, 1993.
2. T.L. Baker, Doing Social Research, 3rd
Edition, McGraw- Hill, 2002.
3. T. M. Black, Doing Quantitative Research, 3rd
Edition, Wadswoth, 1998.
ECO 303: Specialized Statistical Software for Economics
1. Specialized Software EViews: Specialized software used in economics, EViews;
main features, works that can be done, regression analysis.
2. Specialized Software SPSS: Specialized software used in economics, SPSS; main
features, works that can be done, regression analysis.
3. Specialized Software STATA: Specialized software used in economics, STATA;
main features, works that can be done, regression analysis.
4. Econometric Estimation Using Computer Software -1: Estimation of correlation
coefficients; regression coefficients; correlation matrix etc.
5. Econometric Estimation Using Computer Software -2: Applying OLS; WLS and
GLS methods.
6. Testing Econometric Assumptions: Testing for autocorrelation; Heteroscedasticity
and Multicollinearity.
Recommended Books
1. EViews User Guide, Version 5.0, Quantitative Micro Software, 1995.
ECO 304: Industrial Economics
1. Perspective of Industrial Economics: The scope of the industrial economics; a
framework of industrial economics; the early theory of firm; monopolistic competition.
2. Location of Industry: Determinants of industrial location approaches to industrial
location analysis; operational approaches to industrial location; industrial location
trends in Bangladesh.
3. Industrial Investment Decision: Investment decisions; nature and type of investment
decisions; a framework for analyzing investment behavior.
4. Industrial Finance: Concept and types of efficiency; determinants of efficiency;
measurement of efficiency levels; efficiency and decision-making process.
5. Market Structure, Entry and Exit: Measurement of seller concentration; entry
conditions and market structure; product differentiation as a barrier to entry; empirical
studies of entry and exist.
6. Government Regulation of Industry: Need for government regulation in industry;
ways and means of government regulation in industries; legal framework of industrial
regulation in developing countries with reference to Bangladesh.
Books Recommended
1. R. R. Barthwal, Industrial Economics- An Introductory Textbook, New Age
International Publisher, 2004.
19
2. D. A. Hay, and Morris, D. J., Industrial Economics and Organization: Theory and
Practices, International Student Edition, 1991
3. S. Martin, Industrial Economics: Economic Analysis and Public Policy, Macmillan
Publishing Co. 1989.
4. S. Martin, Advanced Industrial Economics, Oxford, Blackwell, 1993
Semester-8
ECO 305: History of Economic Thought
1. Early Economic Thoughts: Ancient economic thought (Greek and Romans); medieval
economic thought; mercantilist thought (Sir Thomas Mun and others).
2. Classical Economic Thoughts: The classical economic ideas of Adam Smith, David
Ricardo, Robert Malthus, and J. S. Mill.
3. Critiques of the Classical Views: Pre-Marxian or early socialism-Sismondi; Saint
Simon; Robert Owen; Louis Bane; Rodbertas; Prouhdhon and Karl Marx.
4. Economic Ideas of Alfred Marshall: His contribution to value theory, consumer’s and
producer’s surplus, theory of welfare.
5. New Economics of J. M. Keynes: Keynes’s view on wages and spending, fiscal policy,
multiplier effect and redistribution.
6. Islamic Economic Ideas: Islamic ideas of Ibn Khaldun, Ibn Taimiayah, Ibn Al-
Quayyim, Al-Ghazzagali, Al- Mqrizi and others.
Books Recommended
1. A. Gray, The Development of Economic Doctrine.
2. T. Hutchison, A Review of Economic Doctrine.
3. J. Schumpeter, A History of Economic Analysis
4. M. N. Siddiqui, Muslim Economic Thinking.
ECO 306: Development Economics-I
1. Definition and Measurement of Economic Development: Growth and development,
indicators of development, common characteristics and differences among poor and
emerging countries.
2. Theories of Development: Harrod-Domar model, the Lewis model of dualistic
development.
3. Food Security: Different aspects of food security, stability of food security, emerging
challenges to food security.
4. Poverty Inequality and Development: Measuring inequality, size and functional
distribution of income poverty measurement—headcount index, human poverty index.
5. Population Growth Theory: Malthusian population trap, microeconomic household
theory of fertility. Demographic Transition Theory.
6. Human Capital in Economic Development: Role of human capital in economic
development, contribution of education to economic growth.
Books Recommended
20
1. M.P. Todaro and S.C. Smith. (2003). Economic Development. 8th
Edition.
Addition-Wesley.
2. D. Perkins, (2001). Economics of Development. 5th
edition. W.W. Norton.
3. G. Meier, and J. Rauch, (2000). Leading Issues in Economic Development. 7th
Edition, Oxford University Press.
ECO 307: International Economics-I
1. International Economics as a Subject: Reasons for undertaking a separate study of
international economics, distinction between interregional and international trade,
concepts of import and export.
2. Classical trade Theory: Adam Smith trade theory- principle of absolute advantages,
Ricardian trade theory- principle of comparative advantages, gains from trade.
3. Modern Trade Theory: The Heckscher-Ohlin trade theory, factor endowments as
basis for trade, factor-price equalization.
4. Trade and welfare: Consumption and production gains from trade, definition and
derivation of offer curve, terms of trade and its importance in an economy, trading
equilibrium.
5. Trade Policy: Concepts of tariffs, quota and subsidy, tariffs and their welfare effect,
quota and subsidy in providing protection, determination of optimum tariff.
6. Trade in Bangladesh: Trade components- import and export scenario of Bangladesh
trade, reasons for the unfavorable trade condition, trade policy and implementation in
Bangladesh.
Books Recommended
1. Appleyard and Field. International Economics. 4th
Ed, McGraw-Hill. 2001.
2. Dominic Salvatore. International Economics.
Semester-9
ECO 308: Econometrics- II
1. Introduction to Simultaneous Equation Model: The identification problem, under-
exactly- and over identified models, the two stage equation model.
2. The Maximum Likelihood (ML) Method: Derivation of estimates and their
properties, comparison between OLS and ML estimations.
3. The Generalized Least Square (GLS) Method: Derivation of estimates and their
properties, comparison between OLS and GLS estimations.
4. The Weighted Least Square (WLS) Method: Derivation of estimates and their
properties, comparison between OLS and WLS estimations.
5. The Problem of Autocorrelation: Definition of autocorrelation, consequences of
autocorrelation, measures to tackle autocorrelation problem.
6. Errors in Variables: Definition of errors in variables, consequences of errors in
variables, measures to tackle errors in variables problem.
Books Recommended
1. Gujarati, D. Basic Econometrics.
21
2. Johnston, Econometric Methods.
3. Koutsoyiannis, Theory of Econometrics.
ECO 309: Resource and Environmental Economics
1. Non- renewable resources: Concept, the Hotelling rule, optimal depletion of non
renewable resources, resource extraction in a perfectly competitive market.
2. Renewable resources: Basic concept, difference between renewable and non-
renewable resources, the example of fisheries, maximum sustainable yield (MSY), open
access resources versus common property resources.
3. Natural resource scarcity: Meaning of resource scarcity, Malthusian and Ricardian
scarcity, physical and economic indicators, recycling and substitution.
4. The Economics of pollution: Physical and economic meanings of pollution,
classification of pollution, the efficient level of pollution (emission), changes in the
efficient level of pollution.
5. Policy for pollution control: Economic policy for pollution control, bargaining and the
Coase theorem, limitation of the Coase theorem.
6. Economic development and the environment: Concepts of sustainable development,
green GDP, the relationship between income and pollution levels—the environmental
Kuznets curve, the pollution haven hypothesis.
Books Recommended
1. C. Field. (2000). Environmental Economics: An Introduction, 2nd
Ed. McGraw-Hill.
2. T. Titenberg, (2000). Environment and Natural Resource Economics, 5th
Ed.
Addison-Wesley.
3. D. Pearce and K. Turner, (1990). Economics of Natural Resource and the
Environment Harvester Wheatsheaf, London.
ECO 310: Health Economics
1. Introduction to Health Economics: Concept of health economics, and health care
economics; relevance of health economics; importance of health sector in macro
economy; economic problems faced by the health sector.
2. The Production Function of Health: Production function of health; measures of
health; morbidity 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 function; empirical studies 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 on aspect of health
investment; graphical and algebraic exposition of Grossman model; factor affecting
demand for health and care; criticism of Grossman model; empirical evidence.
22
4. Insurance: Risk and insurance; insurance technology; demand for insurance; risk
aversion and willingness to pay for insurance; supply of insurance; the optimal level of
coverage; effect of coinsurance and deductibles on demand; loading cost and insurance
firm; tax system and demand for insurance; the price for insurance; the question of
uninsured.
5. Cost-Benefit Analysis and Application to Health Care: Cost-benefit analysis: basic
principles; the valuation of benefits and costs; cost-benefit analysis in health care;
quantity- adjusted life years (QALYs), cost-effectiveness analysis.
6. Health Care System in Bangladesh: Health status of the population; morbidity and
mortality patterns; nutritional status; health care organizations; health policies and
programs; health workforce development; health service indicators; financing health;
development of private health facilities.
Books Recommended
1. C. Fledstein, Healthcare Economics, Belmar Publishers Inc.
2. Folland, Goodman and Stano, The Economics of Health and Health Care, 2nd
Edition, Prentice Hall, 1997.
3. A. Meguire, Henderson and Moony. The Economics of Health Care, RKP.
ECO 311: Viva Voce
Semester-10
ECO 401: Financial Investment and Security Analysis
1. Introduction: Definition and features of Security and bond. Different types of bonds
(corporate, secured, unsecured bond).
2. Bond Valuation and Interest Rate Risk: Valuing a risk less bond, bond prices and
interest rates, the bond yield formula and return measure, theorem about bond price
fluctuations.
3. Behavior of Stock Market prices: The market mechanism, market efficiency and
testable hypothesis about it, the semi strong efficient market hypothesis.
4. Efficient Investment and Diversification: Dominance and efficient portfolio, simple
or naïve diversification, Markowitz diversification and its significance.
5. Money Market: Definition of money market and its importance, goals of money
market investors, instruments of money market, pattern of interest rate in the money
market.
6. Stock Market in Bangladesh: Features and types of the stocks and shares in
Bangladesh, share price index and its change, Comparison of the Dhaka and the
Chittagong share market.
Books Recommended
23
1. J.C. Francis, Investment: Analysis and Management. McGraw Hill.
2. P.S. Rose, Money and Capital Market.
ECO 402: Urban Economics
1. Introduction: Definition of urban economics, major components of urban economics,
rationale for the separate study in economics, Causes of rapid urbanization in
developing countries.
2. Urban Economic Growth: Nature and causes of urban economic growth, expansion of
market in urban economy, economic bases theory.
3. Urban Housing Market: Economics of housing production, demand and supply of
housing, urban housing market imperfections, existence of slums, government
intervention in housing market and policy implementation.
4. Urban Labour Market: Nature and characteristics of urban labour market,
inefficiencies in urban labour market, urban informal and formal labour market.
5. Urban Poverty: Nature and extent of urban poverty, strategies of urban poor for
surviving and its fall out, policy implication to reduce urban poverty, examples of
Bangladesh.
6. Urbanization and Economic Development: Differences of urban growth pattern in an
advanced economy and a developing economy, relationship between urbanization and
economic development, requisites of urbanization for economic development.
Books Recommended
1. A.O. Sullivan, (2012). Urban Economics. 8th International edition, McGraw Hill
Higher Education.
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ECO 403: Labour Economics
1. Labour Economics: Introduction, Importance of labour economics, the “Old” and the
“new” concept, labour economics as a subsystem of economic system, payoff.
2. Demand for Labour: Short-run demand for labour, long-run demand for labour,
market demand for labour.
24
3. Supply of Labour: Work-leisure decision, the backward bending supply curve,
empirical evidence.
4. Equilibrium in Labour Market: Equilibrium in a perfectly competitive labour market,
wage determination, monopoly in the labour market.
5. Labour Market and Income Distribution: The functional distribution of income and
the size distribution of income.
6. Government Intervention in the Labour Market: The rationale of government
intervention, wage and hour legislation, income security measures.
Books Recommended
1. McConnell and Brue, Contemporary Labour Economics.
2. Fleisher, Labour Economics.
3. Eellante and Jackson, Labour Economics.
4. McCormick and Smith, The Labour Market.
ECO 404: Cost Benefit Analysis
1. Cost-Benefit Analysis as a Process: Allocative efficiency, Opportunity cost, the
willingness to pay criterion, the cost-benefit rule.
2. Valuing Costs and Benefits: Identifying costs and benefit s, valuing non-marketed
outputs, valuing externalities.
3. Present Values and Decision Rules: Discounting to a present value, choosing the base
date for discounting, Within-year discounting, the net present value decision rule.
4. Setting Discount Rates: Concepts of the discount rate: cost of capital rates, Concepts
of the discount rate: time preference rates, choosing between cost of capital and time
preference discount rates, Benchmark discount rates.
5. Analyzing Distributional Effects: Distributional limitations in cost-benefit analysis,
the display approach, the distributional weights approach, Estimating distributional
weights.
6. Case Study: The Gordon-below-Franklin hydro- electric development proposal.
Books Recommended
1. Handbook of Cost-Benefit Analysis. The Financial Management Reference series
of publications. 2006.
2. Campbell, Harry and Brown, Richard. Benefit-Cost Analysis. Cambridge
University Press, 2003.
Semester-11
ECO 405: Development Economics- II
1. Agricultural Transformation and Rural Development: Agriculture as the base of
development, structure of agrarian systems in developing countries, agricultural
transformation, requirements for agricultural and rural development.
2. Urbanization and Development: relationship between urbanization and economic
development, requisites of urbanization for economic development.
25
3. Trade and Development: Primary export as an engine of growth, barriers to primary
export led growth, export promotion activities, import substitution industrialization,
outward looking development.
4. Foreign Aid, Investment and Development: Types of aid, resource transfers to
developing countries, foreign direct and indirect investment, and role of foreign direct
investment in developing countries.
5. Sustainable Development: MDG and SDG as development strategies, their goals and
attainments, necessity for economic development.
6. Development Institutions: World Bank and IMF- their evolution, functions, role and
attainments, regional development banks.
Books Recommended
1. M.P. Todaro and S.C. Smith. (2003). Economic Development. 8th
Edition.
Addition-Wesley.
2. D. Perkins, (2001). Economics of Development. 5th
edition. W.W. Norton.
3. G. Meier, and J. Rauch, (2000). Leading Issues in Economic Development. 7th
Edition, Oxford University Press.
ECO 406: International Economics- II
1. Economic Integration: Definitions and Stages of economic integration, positive and
normative analysis of economic integration- custom union.
2. Economic Integration in World’s Trade: Regional trade integrations and their
achievements, EU, SAFTA, AFTA, NAFTA, SAARC.
3. Balance of Payment in Trade Analysis: Concept of balance of payment, Principles of
balance of trade accounting, fixed and flexible exchange rate, concept of equilibrium in
foreign exchange rate, determination of equilibrium rate of exchange.
4. Balance of Payment Adjustment: Methods- variations in external prices through fixed
and flexible exchange rates, theories for balance of payment adjustment- elasticity and
absorption approach.
5. IMF and World Bank: IMF and World Bank establishment, IMF and World Bank as
source for short-term and long-term finance.
6. WTO: GATT and WTO establishment, functioning of WTO, dispute settlement
mechanism, countervailing duties and antidumping.
Books Recommended
1. Appleyard and Field. International Economics. 4th
Ed, McGraw-Hill. 2001.
2. Dominic Salvatore. International Economics.
ECO 407: Regional Economics
1. Definition and meaning of regional economics: The basic notion of regional
economics, three foundation stones, the nature of regional economic problems.
2. Individual location decisions: Levels of analysis and location units, objectives and
procedure for location choice, location factors.
26
3. Regions: The nature of a region, functional regions, relation of activities within a
region, regional specialization.
4. Location of people: A look at some differential, the supply of labour at a location,
the demand for labour at a location.
5. Development of regions: Causes of regional growth, the role of demand, and the
role of supply.
6. Regional objectives and policies: The growing concern with regional
development, basic issues of regional development strategy, the role of growth
centres.
Books Recommended
1. E. Hoover, Malone and F. Giarratani (1984). An Introduction to Regional Economics,
Knopf, New York.
2. Robert J. Stimson, Roger R. Stough and Brian H. Roberts. (2006). Regional Economic
Development: Analysis and Planning Strategy. 2nd
Ed, Springer, New York.
Semester-12
ECO 408: Undergraduate Thesis
The research on undergraduate thesis, carrying 6 credits, will be done under the supervision of
a teacher of this department and should begin and be finished within the 12th
semester and
submitted by the end of this semester. The thesis should have around 100 pages and have the
format of a small dissertation.
ECO 409: Viva Voce
