Table of Contents
UPSC Economics Optional Syllabus:
Advanced Micro Economics
- Marshallian and Walrasiam Approaches to Price determination.
- lternative Distribution Theories: Ricardo, Kaldor, Kaleeki
- Markets Structure: Monopolistic Competition, Duopoly, Oligopoly.
- Modern Welfare Criteria: Pareto Hicks & Scitovsky, Arrow’s Impossibility Theorem, A.K. Sen’s Social Welfare Function.
Advance Macro Economics
- Approaches to Employment Income and Interest Rate determination:
- Classical, Keynes (IS-LM) curve, Neo classical synthesis and New classical, Theories of Interest Rate determination and Interest Rate Structure.
Money – Banking and Finance
- Demand for and Supply of Money: Money Multiplier Quantity Theory of Money (Fisher, Pique and Friedman) and Keyne’s Theory on Demand for Money, Goals and Instruments of Monetary Management in Closed and Open Economies.
- Relation between the Central Bank and the Treasury. Proposal for ceiling on growth rate of money.
- Public Finance and its Role in Market Economy: In stabilization of supply, allocation of resources and in distribution and development.
- Sources of Govt. revenue, forms of Taxes and Subsidies, their incidence and effects.
- Limits to taxation, loans, crowding-out effects and limits to borrowings. Public Expenditure and its effects.
(a) Old and New Theories of International Trade
- Comparative Advantage
- Terms of Trade and Offer Curve.
- Product Cycle and Strategic Trade Theories.
- Trade as an engine of growth and theories of under development in an open economy.
(b) Forms of Protection: Tariff and quota.
(c) Balance of Payments Adjustments: Alternative Approaches.
- Price versus income, income adjustments under fixed exchange rates,
- Theories of Policy Mix
- Exchange rate adjustments under capital mobility
- Floating Rates and their Implications for Developing Countries: Currency Boards.
- Trade Policy and Developing Countries.
- BOP, adjustments and Policy Coordination in open economy macro-model.
- Speculative attacks
- Trade Blocks and Monetary Unions.
- WTO: TRIMS, TRIPS, Domestic Measures, Different Rounds of WTO talks.
Growth and Development
|A||i. Theories of growth: Harrod’s model, ii. Lewis model of development with surplus labour iii. Balanced and Unbalanced growth, iv. Human Capital and Economic Growth. v. Research and Development and Economic Growth|
|B||Process of Economic Development of Less developed countries: Myrdal and Kuzments on economic development and structural change: Role of Agriculture in Economic Development of less developed countries.|
|C||Economic development and International Trade and Investment, Role of Multinationals.|
|D||Planning and Economic Development: changing role of Markets and Planning, PrivatePublic Partnership|
|E||Welfare indicators and measures of growth – Human Development Indices. The basic needs approach.|
|F||Development and Environmental Sustainability – Renewable and Non Renewable Resources, Environmental Degradation, Intergenerational equity development.|
UPSC Economics Syllabus : Part-II
Indian Economy in PreIndependence Era
- Land System and its changes, Commercialization of agriculture, Drain theory, Laissez faire theory and critique.
- Manufacture and Transport: Jute, Cotton, Railways, Money and Credit.
Indian Economy after Independence
The Pre Liberalization Era:
- Contribution of Vakil, Gadgil and V.K.R.V. Rao.
- Agriculture: Land Reforms and land tenure system, Green Revolution and capital formation in agriculture,
- Industry Trends in composition and growth, Role of public and private sector, Small scale and cottage industries.
- National and Per capita income: patterns, trends, aggregate and Sectoral composition and changes theirin.
- Broad factors determining National Income and distribution, Measures of poverty, Trends in poverty and inequality.
The Post Liberalization Era:
- New Economic Reform and Agriculture: Agriculture and WTO, Food processing, Subsidies, Agricultural prices and public distribution system, Impact of public expenditure on agricultural growth.
- New Economic Policy and Industry: Strategy of industrialization, Privatization, Disinvestments, Role of foreign direct investment and multinationals.
- New Economic Policy and Trade: Intellectual property rights: Implications of TRIPS, TRIMS, GATS and new EXIM policy.
- New Exchange Rate Regime: Partial and full convertibility, Capital account convertibility.
- New Economic Policy and Public Finance: Fiscal Responsibility Act, Twelfth Finance Commission and Fiscal Federalism and Fiscal Consolidation.
- New Economic Policy and Monetary system. Role of RBI under the new regime.
- Planning: From central Planning to indicative planning, Relation between planning and markets for growth and decentralized planning: 73rd and 74th Constitutional amendments.
- New Economic Policy and Employment: Employment and poverty, Rural wages, Employment Generation, Poverty alleviation schemes, New Rural Employment Guarantee Scheme.