UPSC Optional Paper Syllabus for Economics- Paper I
- Advanced Micro Economics :
(a) Marshallian and Varrasiam Approach to Price determination
b) Alternative Distribution Theories; Ricardo, Kaldor, Kaleeki.
(c) Markets Structure: Monopolistic Competition, Duopoly, Oligopoly.
(d) Modern Welfare Criteria: Pareto Hicks and Scitovsky, Arrow’s Impossibility Theorem, A. K. Sen’s Social Welfare Function.
- Advance Macro Economics :
➨ Approaches to Employment Income and Interest Rate determination:
- Keynes (IS)-LM) curve,
- Neo-classical synthesis and New classical,
- Theories of Interest Rate determination and Interest Rate Structure.
- Money-Banking and Finance :
(a) Demand for and Supply of Money:
- Money Multiplier Quantity Theory of Money (Fisher, Pique, and Friedman)
- Keyne’s Theory on Demand for Money,
- Goals and Instruments of Monetary Management in Closed and Open Economies.
- The relation between the Central Bank and the Treasury.
- Proposal for ceiling on the growth rate of money.
(b) Public Finance and its Role in Market Economy:
- In stabilization of supply, allocation of resources and in distribution and development.
- Sources of Government 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.
- International Economics :
(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 underdevelopment in an open economy.
(b) Forms of Protection:
- Tariff and quota.
(c) Balance of Payments Adjustment: 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 macromodel.
- Speculative attacks.
- Trade Blocks and Monetary Unions.
- WTO: TRIMS, TRIPS, Domestic Measures, Different Rounds of WTO talks.
- Growth and Development :
- Theories of growth : Harrod’s model;
- Lewis model of development with surplus labour.
- Balanced Unbalanced Growth.
- Human Capitals and Economic Growth.
- Research and Development and Economic Growth.
(b) Process of Economic Development of less developed courtries:
- 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,
- Private-Public 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 Optional Paper Syllabus for Economics- Paper-II (Indian Economics in Post-Independence Era)
|A. The Pre-Liberalization Era|
- Contribution of Vakil, Gadgil and V.K.R.V. Rao.
- Agricultrure : 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 therein.
- Broad factors determining National Income and distribution, Measures of poverty, Trends in poverty and inequality.
|B. The Post-Liberalization Era|
(i) New Economic Reform and Agriculture
- Agriculture and WTO,
- Food processing,
- Agricultural prices and public distribution system,
- Impact of public expenditure on agricultural growth.
(ii) New Economic Policy and Industry:
- The strategy of industrialization,
- Role of foreign direct investment and multinationals.
(iii) New Economic Policy and Trade:
- Intellectual property rights:
- Implications of TRIPS, TRIMS, GATS and new EXIM policy.
(iv) New Exchange Rate Regime:
- Partial and full convertibility,
- Capital account convertibility.
(v) New Economic Policy and Public Finance:
- Fiscal Responsibility Act,
- the Twelfth Finance Commission and
- Fiscal Federalism and
- Fiscal Consolidation.
(vi) New Economic Policy and Monetary System.
- Role of RBI under the new regime.
(vii) Planning :
- From central Planning to indicative planning,
- Relation between planning and markets for growth and decentralized planning :
- 73rd and 74th Constitutional amendments.
(viii) New Economic Policy and Employment:
- Employment and poverty,
- Rural wages,
- Employment Generation,
- Poverty alleviation schemes,
- New Rural, Employment Guarantee Scheme.