Union Public Service Commission
SYLLABI FOR THE EXAMINATION
1. Advanced Micro Economics: (a) Marshallian and
Walrasiam Approaches to Price determination.
(b) Alternative Distribution Theories: Ricardo, Kaldor, Kaleeki
(c) Markets Structure : Monopolistic Competition, Duopoly, Oligopoly.
(d) Modern Wel fare Criteria: Pareto Hicks & Scitovsky, Arrow’s Impossibility
Theorem, A.K. Sen’s Social Welfare Function.
2. Advanced 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.
3. Money - Banking and Finance:
(a) 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
(b) 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.
4. International Economics:
(a) Old and New Theories of International Trade
(i) Comparative Advantage
(ii) Terms of Trade and Offer Curve.
(iii) Product Cycle and Strategic Trade Theories.
(iv) Trade as an engine of growth and theories of under development in an open
(b) Forms of Protection: Tariff and quota.
(c) Balance of Payments Adjustments: Alternative Approaches.
(i) Price versus income, income adjustments under fixed exchange rates,
(ii) Theories of Policy Mix
(iii) Exchange rate adjustments under capital mobility
(iv) Floating Rates and their Implications for Developing Countries: Currency
(v) Trade Policy and Developing
(vi) BOP, adjustments and Policy Coordination in open economy macro-model.
(vii) Speculative attacks
(viii) Trade Blocks and Monetary Unions.
(ix) WTO: TRIMS, TRIPS, Domestic
Measures, Different Rounds of WTO talks.
5. Growth and Development:
(a) (i) The oriesofgrowth: Harro model,
(ii) Lewis model of development with surplus labour
(iv) Human Capi tal 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.
(e) Welfare indicators and measures of growth – Human Development Indices. The
basic needs approach.
PAPER – II
1. Indian Economy in Pre-Independence Era: Land System
and its changes, Commercialization of agriculture, Drain theory, Laissez faire
theory and critique. Manufacture and Transport: Jute, Cotton, Railways, Money
2. Indian Economy after Independence: A The Pre
Liberalization Era: (i) Contribution of Vakil, Gadgil and V.K.R.V. Rao. (ii)
Agriculture: Land Reforms and land tenure system, Green Revolution and capital
formation in agriculture, (iii) Industry Trends in composition and growth, Role
of public and private sector, Small scale and cottage industries. (iv) National
and Per capita income: patterns, trends, aggregate and (v) 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, Subsidies,
Agricultural prices and public distribution system, Impact of public expenditure
on agricultural growth.
(ii) New Economic Policy and Industry: 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, Twelfth Finance Commission and 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 74 thConstitutional amendments. (viii)New Economic Policy and
Employment: Employment and poverty, Rural wages, Employment Generation, Poverty
alleviation schemes, New Rural, Employment Guarantee Scheme