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Introduction

Economics is a study to know how individuals and societies choose to use the scarce resources, the nature and previous generation have provided. Economics explains how we can achieve a high level of growth and employment, price stability, efficiency, an equitable distribution of income, reduction in pollution, economic freedom, sustainable development, macroeconomic stability and reduction in poverty. All these goals can be achieved if we understand the theoretical concepts the on one hand and their applications on the other. There is a positive correlation between research and development. Research is the collection and use of data to test economic theories.

Being offered in semester Spring only.

Eligibility Criteria

The candidates securing second class or equivalent CGPA in Master Degree or BS (4-Years) in Economics having 16 years of schooling or 4 years of education after HSSC from a recognized university will be eligible to apply online for admission in MPhil Economics.

Procedure of Admission

  • There shall be a departmental admission committee responsible to finalize the admission.
  • Preliminary selection of the candidates will be made strictly on the basis of merit/criteria laid down by the Department/ University.
  • Subject based GRE test and interview will be essential for admission to this program conducted by the Department of Economics.
  • Only selected candidates will be informed about their admission and for depositing the fee. Fee depositing procedure will be mentioned in the intimation letter.
  • The prevailing University rules/regulations regarding MPhil enforced from time to time shall strictly be followed for the MPhil program in Economics.

Duration

The minimum duration of MPhil Economics is two years (four semesters) and the maximum duration shall be four years (08 semesters) as per HEC/AIOU rules.

Medium of Instruction

The medium of instruction and examination is English.

Teaching Methodology

Instructional Methodology

The following methodology will be adopted for running the MPhil program in Economics.

Study Material

The contents of courses along with the required reading material and assignments will be provided in the form of soft copy to the students.

Classes Coursework

There is serial of mandatory classes in each semester during the course work. The number of compulsory face to face teaching hours shall be 48 for each 3-credit hour course.

Assessment System

Assessment will be done as under:

  • Assignments (continuous assessment). Two assignments are compulsory for each 3 Credit Hours Course
  • Mid Term Examination during each semester
  • For successful completion of each course the student will be required to qualify in each component.

Assessment Component

Total Marks

Passing Marks

Weightage

Assignments

100

50

10 + 10 = 20%

Assignment / Class Presentation

100

50

Mid-Term Examination

100

50

30%

Final Examination

100

50

50%

Total Marks

100

Aggregate Passing Marks

50

  • To take final examination the student must pass in assignments and ensure 70% attendance in the classes.

AIOU Credits Required

36 Credit Hours

Sr.

No.

Course

Code

Credit Hours

1

Advanced Microeconomics

2700

3

2

Advanced Macroeconomics

2701

3

3

Development Economics

2704

3

4

International Trade Theory & Policy

        2705

                        3

 

S. No.

Title of course

Code

Recommended book (Latest Edition)

1

Advanced Microeconomics

2700

Microeconomic Theory by PRG Layard and A. A. Walter

 

2

Advanced Macroeconomics

2701

Advanced Macroeconomics by David Romer.

 

3

Development Economics

2704

Leading Issues in Development Economics by Gerald M. Meier and James E. Rauch.

 

4

International Trade Theory & Policy

2705

International Economics by Dominick Salvatore.

 

 

ADVANCED MICROECONOMICS

Level M.Phil                                                              3 Credit Hours

Code: 2700

 

UNIT NO.1    CONSUMER DEMAND FUNCTIONS

 

  • Utility Maximization
  • Interpretation of Lagrange Multiplier, Roy’s Identity
  • The Relationship between the Utility Maximization and Cost Minimization Models
  • The Derivation of Slutsky Equation
  • Derivation of Compensated Demand Curve

UNIT.NO.2    THEORY OF PRODUCTION

  • Production Processes and Production Functions
  • Rigid and Flexible, Homogeneous and Homothetic Production functions
  • Elasticity of Substitution: ECS Production Function
  • The Duality of Production Function

UNIT.NO.3    THEORY OF COST

  • Long-run vs. Short-run Cost and their Relationships
  • The Duality of Cost Functions
  • The Generalized Leontief Cost Function

UNIT.NO.4    MARKET STRUCTURE AND THEORY OF FIRM-I

  • Competitive Market: Short-run Supply, Long-run supply, Industry Supply Function, Market Equilibrium

 

  • Monopoly: Monopoly Price and Output, Price Discrimination, Multi Plant Monopoly, Regulated Monopoly

UNIT NO.5. MARKET STRUCTURE AND THEORY OF FIRM-II

  • Oligopoly: Cartels and the Cournot-Nash Equilibrium, Collusion as a Nash Equilibrium, Repeated oligopoly games, Stackelberg Equilibrium, Bertraind Equilibrium.

 

  • Bargaining: The Alternating Offers Bargaining Game, Incomplete Information Bargaining

UNIT NO.6. OPTIMIZATION OVER TIME

  • Optimization in the Bond Market/Market Rate of Return/Discount Rates and Present Values
  • Multi-period Consumption
  • Investment Theory of the Firm

UNIT NO.7    UNCERTAINTY

  • Expected Utility
  • The Problem of Choice in Situations Involving Risk
  • Risk and Insurance

UNIT NO.8    GENERAL EQUILIBRIUM

  • Consumption without Production (Pure exchange)
  • Production without Consumption: One-Sector Model
  • Production and Computation: Two-Sector Model
  • General Equilibrium in Production and Consumption

UNIT NO.9. WELFARE ECONOMICS

  • Society’s Economic Problem
  • Social Justice and Social Optimum
  • Capitalism, Market failure, and Alternative Economic Systems
  • Criteria for a Welfare Improvement
  • The Measurement of Welfare Cost
  • Trade off between Equity-Efficiency and Social Welfare Function

RECOMMENDED BOOKS

Walter Nicholson., and Christopher Snyder: Microeconomic Theory: Basic Principles &                        Extensions: South Western, Cengage Learning (Latest Edition)

Layard, P.R.G., and Walter, A.A. Microeconomic Theory: McGraw-Hill (Latest Edition).

Silberberg, E. The Structure of Economics: A Mathematical Analysis: McGraw- Hill (Latest Edition).

Varian, H.R. Microeconomic Analysis: Norton (Latest Edition).

Henderson and Quant: Microeconomic Theory: A Mathematical Approach: (Latest Edition).

McKanna, C., J., and Rees, R. Economics: A Mathematical Introduction: Oxford University Press (Latest Edition).

 

ADVANCED MACROECONOMICS

Level M.Phil                                                              3 Credit Hours

Code: 2701

UNIT NO.1    REAL BUSINESS CYCLE THEORY

  • Some Facts about Economic Fluctuations
  • Theories of Fluctuations
  • A Baseline Real-business-Cycle Model
  • Limitations and Extensions of the Model

UNIT NO.2    TRADITIONAL KEYNESIAN THEORIES OF FLUCTUATIONS

  • Review of Traditional Keynesian Model of Aggregate Demand
  • The Open Economy.
  • Alternative Assumptions of Wage and Price Rigidity.
  • Trade Off between Output-inflation
  • The Cyclical Behaviour of the Real Wage

UNIT NO.3    NEW KEYNESIAN ECONOMICS

  • General Considerations of Small Frictions in Wages
  • The Need for Real Rigidity
  • Real Non-Walrasian Theories with Limitations

UNIT NO.4    CONSUMPTION

  • Consumption Under Certainty: Various Consumption Hypothesis
  • Consumption Under uncertainty: The Random Walk Hypothesis
  • The Interest Rate and Saving
  • Consumption and Risky Assets

UNIT NO.5. INVESTMENT

  • Investment and the Cost of Capital
  • A Model of investment with Adjustment Cost
  • Analysis of Investment Model and its Implications
  • Financial-market Imperfection

UNIT NO.6    UNEMPLOYMENT

  • Theories of Unemployment
  • A Generic Efficiency-Wage Model
  • A General Version of efficiency-Wage Model

UNIT NO.7    INFLATION AND MONETARY POLICY

  • Relationship among Inflation, Money Growth, and Interest Rates
  • Monetary Policy and the Term of Structure of Interest
  • The Dynamic Inconsistency of Low-Inflation Monetary Policy
  • The costs of Inflation

UNIT NO.8    THE SOLOW GROWTH MODEL

  • Critical Analysis of Solow Growth Model and its Assumptions
  • Dynamics of Model
  • The Impact of a Change in saving Rate in Solow Growth Model
  • Quantitative Implications of the Model

UNIT NO.9    BEYOND THE SOLOW MODEL: NEW GROWTH THEORY

  • Research and Development Models of Growth: Frame Work and Assumptions.
  • The Model without Capital, General Case of the Model
  • The Nature of Knowledge and the Determinants of the Allocation of Resources to Research and Development Models.
  • Models of Knowledge Accumulation and the Central Questions of Growth Theory

RECOMMENDED BOOKS

Romer, David, advance Macroeconomics. New York: The McGraw-Hill Companies, Inc. (Latest Edition)

Barro, Robert J., Modern Business Cycle Theory. Cambridge: Harvard        Press (Latest Edition).

Branson (William H. Branson) Macroeconomics, Theory and Policy, (Latest Edition).

Abel, Andrew B., and Ben S. Bernanke (Latest Edition). Macroeconomics. Reading MA: Addison-Wesley Publishing Company.

ISSUE IN DEVELOPMENT ECONOMICS

Level: M.Phil                                                             3 Credit Hours

Code: 2704

UNIT NO.1    INTRODUCTION TO DEVELOPMENT ECONOMICS

  • Definition of Development Economics
  • Brief History of Development Economics
  • An Overview of Theories of Economic Growth and Development
  • Difference between Economic Growth and Development
  • Evolution of Measures of Development Economics

UNIT NO.2    HUMAN CAPITAL AND ECONOMIC DEVELOPMENT

  • The Role of Human Capital in Economic Development
  • Education Investment and Returns
  • Impact of education on Development Economics
  • Society and Development: Some major issues

UNIT NO.3    INCOME DISTRIBUTION AND ECONOMIC DEVELOPMENT

  • Impact of Development on Income Distribution
  • Economic Growth and Income Inequality
  • Inequality, Poverty and Development
  • Growth with Income Distribution
  • The U Hypothesis Relating Income Inequality and Economic Development
  • The Impact of Income Distribution on Development

UNIT NO.4    AGRICULTURE AND RURAL DEVELOPMENT

  • Agriculture as a Pre-condition to Economic Development
  • Critical Appraisal of Agricultural Policies
  • Designs of Agricultural Development Strategies
  • Role of Argo-based Industries in Rural Development
  • A comparison of Rural Credit Markets and Institutions in the International context
  • Importance of Community Based Organizations in Rural Development

UNIT NO.5    INDUSTRIALIZATION AND ECONOMIC DEVELOPMENT

  • The Role and Importance of Industry in Economic Development
  • The Industrialization Strategies of Economic Development
  • Nature of Inter-sectoral Relationship during the process of Industrialization: Agriculture vs Industry, Light vs Heavy Industry, Consumer vs Produced goods Industry.

UNIT NO.6    MIGRATION AND URBAN INFORMAL SECTOR

  • The Evolving View of Urban Underemployment
  • The Informal Sector and their Connection with Rural-Urban Migration
  • Urban Growth in Developing Countries: A Demographic Reappraisal
  • Economic Development with Unlimited Supplies of Labor
  • A Model of Labor Migration and Urban Unemployment in Less Developed Countries
  • Various Views of Underemployment in Less Developed Countries

UNIT NO.7    FINANCING OF ECONOMIC DEVELOPMENT

  • The Political Economy of Foreign Aid
  • The Evolution of Trade or Aid Philosophy
  • Bilateral and Multilateral Aid
  • Forms and Volume of Foreign Aid
  • Economic Impact of Aid on the Recipient Country
  • Debate on the Debt and Debt Servicing Problem of Developing Countries

UNIT NO.8    DEVELOPMENT AND ENVIRONMENT

  • Environmental Problems in the Developed and Developing Countries
  • North-South Trade and the Global Environment
  • Impact of International Trade on the Environment in Developing Countries
  • Determinants of Pollution Abatement in Developing Countries
  • Sustainable Development: Ecology and Economic Progress

UNIT NO.9    THE STATE AND ECONOMIC DEVELOPMENT

  • The Role of State in Economic Development
  • The Need of Balanced Growth with the Development of Social Sectors
  • Basic Need and the Role of State in Development
  • The Political Economy of Rent Seeking Society
  • The Relationship Between Rent Seeking and Corruption
  • The Role of State for Institution Building Economic
  • Performance, Market a Imperfection, Public vs Private Sectors, etc.

REFERENCE

Gerald M. Meier and James E. Rauch, (2000), Leading Issues in Economic Development Latest Edition

Todaro P. Michael, Economic Development Latest Edition

Brenner, Y.S, Theories of Economic Development and Growth, New York, Latest Edition

Bruee Herrick Charles P. Kidleberger, Economic Development, McGrow-Hill, latest Edition

Evereth E. Hagen, The Economics of Development, Richard D. Irwin Inc. Latest Edition

Hirschman, Albert, The Strategy of Economics Development, Yale University Press, Latest Edition

Ray, D. (1998). Development Economics. Princeton University Press. (Latest Edition)

1.     Thirlwall, A. P. (1989). Growth and Development: with Special Reference to Developing Economies. Springer.) Latest Edition.

INTERNATIONAL TRADE THEORY AND POLICY

Level M.Phil                                                  Credit Hours: 3

Code: 2705

 

UNIT NO.1    INTRODUCTION AND TRADE THEORIES

  • The Subject Matter of International Economics
  • An Overview of International Trade Theories: Classical, Modern and new Approaches

UNIT.NO.2    TRADE RESTRICTION: TARIFF AND NON TARIFF BARRIERS

  • Tariffs: Economic Effects, Measures and Partial Equilibrium Analysis
  • Non-tariff Barriers: Economic Impact of Import Quotas and Tariff Ceilings
  • Other Non Tariff Barriers:
  • Voluntary Export Restrains, Technical, Administrative and Other
  • Regulations, International Cartels, Dumping, Export Subsidies, etc.
  • Comparison of Tariff and Non tariff Barriers in the International Context

UNIT NO.3    ECONOMIC INTEGRATION AND MULTINATIONAL CORPORATIONS

  • Theory of Economic Integration and its Economic Effects
  • History of Attempts at Economic Integration
  • Economic and Monetary Integration: the European Experience
  • Motives for International Capital Flows, Portfolio Investments and Foreign Direct Investment
  • Multinational Corporations: Reasons for their Existence
  • A Critical Appraisal of the role of MNEs from the Host
  • Country, Parent Country and Global Perspective

UNIT NO.4           BALANCE OF PAYMENTS AND ITS ADJUSTMENT

  • Equilibrium and Dis-equilibrium in the BOP and Corrective Measures,
  • The BOP and Foreign Exchange Markets
  • BOP Adjustment: Automatic BOP Adjustment, Policy induced BOP
  • Adjustment, the Hierarchy of BOP Adjustment Mechanism
  • The Monetary Approaches to BOP

UNIT NO.5           FOREIGN EXCHANGE MARKETS AND EXCHANGE RATES

  • The Role of Foreign Exchange Markets
  • Fixed Vs Flexible Exchange Rates
  • Determination of fixed and Flexible Exchange Rates
  • Critical Appraisal of the Fixed and Flexible Exchange Rates
  • Exchange Rate Adjustment: Development, Revaluation
  • Appreciation and Depreciation etc.
  • Monetary Approaches to BOP and Exchange Rates

UNIT NO.6           THE INTERNATIONAL MONETARY SYSTEM

  • Evolution of the International Monetary System
  • European Monetary System
  • The Era of Managed Floating Exchange Rates
  • The Dollar under Managed Floating Exchange Rates
  • The International Monetary System: Present and Future

UNIT NO.7 INTERNATIONAL TRADE AND ECONOMIC DEVELOPMENT

  • Trade and Development: Role and Importance
  • Trade as Engine of Growth
  • The Contribution of Development
  • The Terms of Trade and Development
  • Export Instability and Development
  • Import Substitution and Export Promotion Strategies to Development

UNIT NO.8           WORLD TRADE ORGANIZATION

  • Failure of the GATT and the Emergence of WTO
  • Critical Appraisal of the Role WTO
  • WTO Regulations and Free Trade
  • Implication of WTO Rules and Regulation for Pakistan
  • WTO and the Regional Economics

UNIT NO.9           GLOBALIZATION

  • Historical Development of Globalization
  • Impact of Globalization for Developed and Developing Countries
  • Implications of Globalization for Pakistan’s Trade, Foreign
  • Direct Investment Transfer of Technology, etc.
  • Liberalization of Trade under Globalization and its Implication for LDCs and Pakistan

REFERENCES

Salvator, D. (Latest Edition) International Economic, Printice Hall International, INC.  Williamson J., and Milner C., (Latest Edition), The World Economy, Harvester Wheatsheaf, UK.

Krugman, P and Obstfeld, (Latest Edition), International Economics: Theory and Policy, AWL Inc., Singapore.

Plesis SPJ., (Latest Edition) International Economics, Butterworths, UK.

Hodgson J. and Herander M., (Latest Edition), International Economic Relations, Prentice Hall International Edition, Inc. London

Krugman P. and Helpmen E., (Latest Edition), Market Structure and International Trade. World Bank Discussion Paper No307, (Different Issues).

 

Sr.

No.

Course

Code

Credit Hours

1

Research Methods

2702

3

2

Applied Econometrics

2703

3

3

Environmental Economics

2706

3

4

Monetary Economics

2708

3

 

 S. No.

Title of course

Code

Recommended book (Latest Edition)

1

Research Methods

2702

Business Research Methods by Donald R. Cooper and William Emory.

 

2

Applied Econometrics

2703

Learning and Practicing Econometrics by George G. Judge.

 

2

Environment Economics

2706

Environmental Economics by Barry C. Field.

 

4

Monetary Economics

    2708

The Economics of Money, Banking and Financial Markets by Frederic S. Mishkin.

 

 

Research Methods
Code: 2702

UNIT NO.1    INTRODUCTION

  • Definition of Research
  • Problem based Research
  • Systematic and Nonsystematic Investigations
  • The research process
  • Kinds of research
  • Rule of fundamental, basic, and applied research

UNIT NO. 2 RESEARCH PROCESS IN SOCIAL SCIENCES

  • Introduction to scientific method in social sciences
  • Methods of social research
  • Research Problems: exploration, designing and sampling

UNIT NO3     CHOOSING THE RESEARCH PROBLEM

  • Identification of problems
  • Checking the research problem
  • The steps in empirical research study

UNIT NO.4    HYPOTHESIS AND HYPOTHESIS FORMULATION

  • Sources of hypothesis: general cultural, personal theory, personal theory, analogies
  • Forms of hypothesis: null form, prediction forms, declarative form, question form.

UNIT NO5     SURVEY AND EXPERIMENTAL RESEARCH METHODS

  • Sample and sampling techniques: questionnaire preparation mailing the questionnaire, Interview method, etc.
  • Designs of research: meaning, purpose and principles.
  • Non survey data collection: techniques and experiments.

UNIT NO.6    THEORY OF MEASUREMENT

  • Nature of measurement
  • Measurement scales
  • Sources of measurement
  • Development of measurement tools

UNIT NO.7    DATA PROCESSING

  • Introduction
  • Editing & coding
  • Tabulation and graphics
  • Analysis of the data and graphics

UNIT NO.8    RESEARCH FINDING AND REPORT WRITING

  • Components of Research report: introduction, methodology, findings, conclusions, appendices, bibliography.
  • Basic principles of report writing

UNIT NO.9    COMPUTER APPLICATIONS

  • Computer Orientation
  • MS Word
  • EXCEL
  • SPSS (Statistical Package)

SUGGESTED BOOKS

Donald R. Cooper. C. William Emory, Business Research Methods. National Book Foundation, Islamabad, (Latest Edition).

Bailey, Kenneth, D. Methods of Social Research, the Free Press, London 1998.

Paul, D. Leedy, Practical research planning & design Macmillan Publishing Cop. New York (Latest Edition).

Singleton &Straits, “Approaches to Social Research” Latest Edition, Oxford University Press

Kothary C.R. “Research Methodology” Latest Edition

Keith F, Punch, “Introduction to Social Research: Quantitative and Qualitative Approaches” Latest Edition, Sage Publication

Uma Sekaran & Roger Bougie, “Research Methods for Business: A Skill Building Approach” Latest Edition.

 

APPLIED ECONOMETRICS

Level: M.Phil                                                             Credit Hours: 3

Code: 2703

UNIT NO.1    ORDINARY LEAST SQUARES (OLS) METHODS

  • OLS estimators, assumptions and their properties, goodness of fit statistical inference.

UNIT NO.2     ESTIMATION OF GENERALIZED LEAST SQUARES METHOD

  • Estimation under Heteroscedasticity and Autocorrelation
  • Pooling of Cross-section and Time-series Data
  • Seemingly Unrelated Regressions (SUR)

UNIT NO.3. SIMULTANEOUS EQUATIONS SYSTEM

  • Structural model vs. reduced form models. Identification problem and methods of identification. Single-equation vs. system equation estimation methods

UNIT NO.4    REGRESSION WITH QUALITATIVE VARIABLES

  • Dummy variables, structural shifts, seasonality, limited dependent variables, duration models
  • Models with Qualitative Explanatory Variables
  • Models with Qualitative Dependent Variables

UNIT NO.5    DISTRIBUTED LAG MODELS

  • Koyck Transformation
  • Rational Expectations

UNIT NO.6    NONLINEAR EQUATIONS

  • Methods of estimating nonlinear econometric equations and testing nonlinear parametric restrictions

UNIT NO.7    TOPIC IN TIME SERIES ECONOMETRICS

  • Distributed lags, AR, MA, ARIMA models, causality, ARCH model, stationary and co-integration and error correction

UNIT NO.8    DATA PROBLEMS ETHICS IN THE USE OF ECONOMETRICS

  • Aggregation, interpolation, time trends, data filtering data mining ethics in the use of econometrics

UNIT NO.9    SOME APPLICATION IN ECONOMETRIC

  • Consumption Function
  • Investment Function
  • Production function
  • Cost Function
  • Money Demand Function

RECOMMENDED BOOKS

Green, W.H. Econometric Analysis, (Latest Edition), New York: Macmillan.

Enders. W. Applied Econometric Time Series, New York: John Willy & Sons Inc., (Latest Edition).

Fomby, T.B., R. C. Hill and S.R. Johnson, Advanced Econometric Methods, New York: Springer-Verlag, (Latest Edition).

Kmenta J., Elelments of Econometrics, New York: Macmillan, (Latest Edition) Johnston, J., Econometric Methods, New York: McGraw-Hill, (Latest Edition)

Banerjee, A., J. Dolado, J.W. Galbraith, J. W. and D. F. Hendry, Co-Integration. Drror-Correction, and the Econometric Analysis of Non-Stationary Data: Advanced

Text in Econometrics, Oxford: Oxford University Press,(Latest Edition

Griffith, W. E., R. C. Hill, G. G. Judge Learning and Practicing Econometrics, John Wiely. (Latest Edition).

 

ENVIRONMENTAL ECONOMICS

Level: M.Phil                                                 Credit Hours: 3 Code: 2706

UNIT NO.1    INTRODUCTION TO ENVIRONMENTAL ECONOMICS

  • Definition of Environmental Economics.
  • The Economic Approach
  • The Design of Environmental Policy
  • Cost Benefit Analysis
  • Economics and Politics
  • The Economy and the Environment

UNIT NO.2    ANALYTICAL TOOLS

  • Benefits and Costs, Supply and Demand
  • Aggregate Demand/Willingness to Pay
  • Marginal Cost and Supply
  • Economic Efficiency and Markets
  • Efficiency and Equity
  • Markets and Social Efficiency
  • Pollution Control – a General Model
  • Application of Equimarginal Principle to Emission and Reductions
  • Long-Run Sustainability

UNIT NO.3    ENVIRONMENTAL ANALYSIS

  • Frameworks of Analysis
  • Benefit-Cost Analysis: Benefits
  • Cost-Benefit Analysis: Costs

UNIT NO.4    ENVIRONMENTAL POLICY ANALYSIS

  • Criteria for Evaluating Environmental Polices
  • Decentralized Policies: Liability Laws, Property Rights, Moral Suasion

UNIT NO.5    STRATEGIES FOR POLICY ANALYSIS

  • Command and Control Strategies
  • Incentive-based Strategies

UNIT NO.6    ENVIRONMENTAL POLICIES IN THE DEVELOPED AND DEVELOPING COUNTRIES

  • International Comparisons of Environmental Quality
  • Environmental Policy in Developed, Developing and Socialist Countries

UNIT NO.7    ECONOMIC DEVELOPMENT AND THE ENVIRONMENT

  • General Considerations
  • Environmental Degradation in Developing Economics
  • Economy and Environment
  • The Pollution – Haven Hypothesis
  • Environmental Policy Choices in Developing Countries
  • The Role of the Developed Countries

UNIT NO.8    THE GLOBAL ENVIRONMENT AND INTERNATIONAL AGREEMENTS

  • Ozone Depletion
  • Global Warming
  • Biological Diversity
  • General Issues
  • The Economics of International Agreements
  • International Trade and the Environment

UNIT NO.9    SUSTAINABLE DEVELOPMENT AND ENVIRONMENTAL POLICY IN PAKISTAN

  • Indicators of Sustainable Development
  • An Overview of Environmental Policy of Pakistan

BASIC TEXT BOOKS

Barry C. Field, (Latest Edition) “Environmental Economics” An Introduction McGraw-  Hill International Editions New York.

Eban S. Goodstein, (Latest Edition) “Economics and the Environment”      PRINTICE HALL, Upper Saddle River, New Jersey 07458.

Tom Tietenberg, (Latest Edition) “Environmental Economics and Policy, ADDITION-WESLEY.

Scott J. Callan, janet M. Thomas, (Latest Edition) “Environmental Economics & Management, IRWIN.

 

MONETARY ECONOMICS

Level: M.Phil                                                 Credit Hours:     3 Code: 2708

UNIT NO.1    INTRODUCTION

  • Definitions Forms and Functions of Money
  • Measurement of Money
  • Evolution of Money and Payment System

UNIT NO.2    THE SUPPLY AND DEMAND FOR MONEY

  • Demand for Money
  • Models of Demand for Money
  • The Mckinnon-Shaw Hypotheses of Financial Repression in less Developed Countries and Cagan’s Demand for Money Model for Hyperinflation countries
  • Currency Substation and Demand for Money
  • The Money Supply Process
  • The Monetary Base Approach and the new View of the Determination of the Money Supply Process
  • An Overview of Empirical Evidence on Money Demand Function and Supply of Money in Pakistan

UNIT NO.3    FINANCIAL MARKETS AND SOME RELATED HYPOTHESES

  • Financial Markets, Primary Markets, Secondary, Markets, Money Markets, Capital Markets, Derivative Products and Derivative Markets.
  • The Markowiz’s Portfolio Selection and Asset Pricing Models of Capital Markets.
  • The Fisher and Fama Hypotheses of Efficient Capital Markets.
  • The Covered Interest Parity, Uncovered Interest Parity and Real Interest Parity Hypothesis of Efficient Global Money Market.
  • The Unbiased Efficiency Hypothesis of Efficient Foreign Exchange Market.

UNIT NO.4. MONEY IN MACROECONOMIC MODELS

  • Money in the Classical, Keynesian and Monetarist Macroeconomic Models.
  • The Transmission Mechanism of Money
  • Causality Between Money, Income, Prices and Interest Rates.

UNIT NO.5    INFLATION

  • Inflation: Definition and Measurement.
  • Inflation and Expectation
  • The Phillips Curve and the Natural Rate Hypothesis.
  • The Monetarist vs. Structuralist Approaches to Inflation
  • Overview or Empirical Evidence on a Variety of Inflation Models in Pakistan

UNIT NO.6. MONETARY POLICY IN A CLOSED ECONOMY

  • The Objectives and Instruments of the Monetary Policy
  • The Role of Monetary Policy
  • Need for a New Agenda of Monetary Policy
  • Pakistan’s Experience in Conduct of the Monetary Policy

UNIT NO.7    MONETARY POLICY IN AN OPEN ECONOMY

  • Internal and External Balance
  • The Policy Assignment Problem and the Principle of Effective Market Classification
  • The Effectiveness of Monetary Policy under Different Exchange-rate Regimes and Capital Mobility Scenarios.

UNIT NO.8. BALANCE OF PAYMENTS, FOREIGN EXCHANGE MARKETS AND CRISES

  • The Relationship Between Balance of Payments and Foreign Exchange Markets.
  • Elasticity, Absorption and Monetary Approaches to the Balance of Payments and Empirical Evidence on them.
  • Models of Balance of Payments and Currency Crisis. Financial Crisis in Asian Countries.

UNIT NO.9    PRACTICES OF MONETARY POLICY IN PAKISTAN

  • Monetary System in Pakistan
  • Role of State Bank of Pakistan in Formulation and Implementation of Monetary Policy in Pakistan
  • A Study of Inflation in Pakistan
  • Macro Economic Objectives and Role of Monetary Policy

TEXT BOOK

C. Mishkin F.F. The Economics of Money, Banking, and Financial Markets. Scott, Foreman and Company, London. (Latest Edition).

Ritter, L.S. and Peterson, R. L. Financial Institution and Financial Markets. New York. Basic Books, (Latest Edition)

Habbard, G.R. Money, The Financial System and the Economy. (Latest Edition). Addison-Wesley, New York.

Harris, L. Monetary Theory, New York: McGraw-Hill, (Latest Edition).

Pierce, D.G. and Shaw, D.M. Monetary Economics. London: Butter Worth, (Latest Edition).

Friedman, M. (1959) The Demand for Money: Some Theoretical and Empirical Results, Journal of Political Economy, 67,327-51

Laidler, D.E.W. (Latest Edition) The Demand for Money: Theories, Evidence and Problems, HarperCollins College Publishers, Ch. 5-9

Saqib, N., and Ahmed, A.M. (1986) Estimation of Demand and Money Supply Function for Pakistan: A Simultaneous Approach, Pakistan Development Review, 25, 856-59

Tobin. J. (1956) The Interest Elasticity of the Transaction Demand for Cash, Review of Economics and Statistics, 38, 241-47.

Bhatti, R.H., and Moosa, I.A. (1995) An Alternative Approach to Testing Uncovered Interest Parity, Applied Economics Letters, 2. 478-481.

 

1.

Research Project / Thesis

2710

12

 

1.

Research Project / Thesis

2710

12

1

2

3

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Workshop

Synopsis Orientation Workshop

The department will hold a synopsis orientation workshop to identify the topic for students’ research and develop the synopsis for their MPhil thesis. The synopsis will be submitted to Board of Advance Studies and Research (BASR) for approval.

Thesis

A student is required to carry research work under the supervision of an advisor having PhD degree in the relevant field (as per relevant HEC/AIOU rules). There is a mandatory workshop to discuss research proposals of the students.

Viva

After of evaluation of thesis, the student has to appear for viva-voce before the Research Proposal Committee (RPC)

About

The Allama Iqbal Open University was established in May, 1974, with the main objectives of providing educational opportunities to masses and to those who cannot leave their homes and jobs. During all these past years, the University has more than fulfilled this promise.