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Economics

Economics is what leads the world of businesses and markets that are so important to the countries. With the rapid changes in the economies of the present day countries, it has become imperative to understand the impact of government policy making, the workings of businesses and the financial aspects of the economic systems all over the world. The study of economics would range from the individual unit to that of groups, societies and international markets.

The general subjects studied in this course would usually comprise of: Microeconomics,Macroeconomics, Statistics for Economics and Econometrics, Econometrics, Public Finance, International Economics, Environmental Economics & Sustainable Development, Political Economy of Public Policy, Money and Banking, and Industrial Organisation & Introduction to Competition Policy.



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Microeconomics: The course in Microeconomics deals with the behaviour of the market and individual consumers and firms and its impact on the decision-making process of individual firms and households. Microeconomics focusses on the interaction between individual buyers and sellers and the elements that influence the choices made by buyers and sellers like the pattern of supply and demand in determining prices and production in individual markets. Units such as risk, expected utility theory, welfare economics and general equilibrium, public goods and externalities, game theory and industrial organisation, information economics and applications of microeconomics would be studied in this subject.

Macroeconomics: on the other hand, deals with the national economy as a whole and affords a basic knowledge of the working of businesses. This subject would comprise of units like: macroeconomic theories and their policy implications, macroeconomic shocks and fluctuations, unemployment and inflation, exchange and interest rates, current accounts, inter-temporal adjustments, growth theory and monetary and fiscal policy.

Econometrics: Econometrics deals with the application of statistical theory in the analysis of economic data therebyassessing the economic relationships using computer software. Multiple regression, maximum likelihood, endogeneity and instrumental variables, unit roots and cointegration, limited dependent variable models, duration models and panel data models are some of the units in this subject.


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Statistics for Economics and Econometrics: introduces statistics and their application in economic issues. Topics such as descriptive statistics, basic statistical distributions and applications to economic data, sampling and hypothesis testing, regression analysis and the testing and interpretation of regression results, time series modelling would normally be included in this subject.

Public Finance: deals with units such as the theoretic basics of policy analysis, the reasons for government involvement and the restraints on government participation. Topics such as the different types of taxes, government expenditure, and social insurance systems are also discussed.

International Economics: would be explored with topics such as international trade with reference to competition in international markets, protectionist policies regionalism in trading arrangements, balance of payments and exchange rates, relating to exchange rate alternative exchange rate measures, international macroeconomic relationships, and international macroeconomic policy co-ordination.

Environmental Economics & Sustainable Development: deals with justice and goodness, theories of value, decision-making under uncertainty, market failures, international environmental agreements and the politics of the environment, intergenerational ethics how human life and nature may be valued, environmental problems like climate change, acid rain, and local water and air pollution.



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Political Economy of Public Policy: investigates how the methods of political economy can be utilised for analysing public policy. Units would include: welfare state and poverty, macroeconomic policy, social insurance, deregulation and competition, labour markets, environment, and globalization and trade.

Money and Banking: covers money, models of price and productivity fluctuations,mechanism of monetary diffusion, monetary policies, hyperinflation, and monetary policy & asset returns. Also discussed would be applied topics such as diversity in the reactions of banks and businesses to monetary policy shocks, inflation in different countries at different times, and the effect of monetary policy on the yield curve.

Industrial Organisation & Introduction to Competition Policy: examines the behaviour of private sector firms and their oligopolistic tendencies and the consequences of firm behaviour on social welfare.Units would include oligopolistic price competition, product differentiation, strategic entry restriction and predacious behaviour, advertising, price discrimination, vertically related markets, research and development, technology challenges, market structure and profitability, and mergers.




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