INDIAN ECONOMIC SERVICE SYLLABUS Sl.No. Subject Max. marks Time allowed 1 General English 100 3 hours 2 General Studies 100 3 hours 3 General Economics-I 200 3 hours 4 General Economics-II 200 3 hours 5 General Economics-III 200 3 hours 6 Indian Economy 200 3 hours The examination for IES/ISS will follow the pattern described below: Part I. Written examination carrying a maximum of 1000 marks in the subjects as shown below. Part II. Viva voce of such candidates as may be called by the Commission, carrying a maximum of 200 marks GENERAL ENGLISH Candidates will be required to write an essay in English. Other questions will be designed to test their understanding of English and workmanlike use of words. Passages will usually be set for summary or precis. GENERAL STUDIES General Knowledge including knowledge of current events and of such matters of every day observation and experience in their scientific aspects as may be expected of an educated person who has not made a special study of any scientific subject. The paper will also include questions on Indian Polity including the political system and the Constitution of India, History of India and Geography of a nature which the candidate should be able to answer without special study. PART A: 1. Theory of Consumer’s Demand: Cardinal utility Analysis; Marginal utility anddemand, Consumer’s surplus, Indifference curve Analysis and utility function, Priceincome and substitution effects, Slutsky theorem and derivation of demand curve,Revealed preference theory. Duality and indirect utility function and expenditurefunction, Choice under risk and uncertainty. 2. Theory of Production: Factors of production and production function. Forms ofProduction Functions: Cobb-Douglas, CES and Fixed coefficient type, Translogproduction function. Laws of return, Returns to scale and Return to factors of production.Duality and cost function, Measures of productive efficiency of firms, technical andallocative efficiency. Partial Equilibrium versus General Equilibrium approach.Equilibrium of the firm and industry. 3. Theory of Value: Pricing under different market structures, public sector pricing,marginal cost pricing, peak load pricing, cross-subsidy free pricing and average costpricing. Marshallian and Walrasian stability analysis. Pricing with incompleteinformation and moral hazard problems. 4. Theory of Distribution: Neo classical distribution theories; Marginal productivitytheory of determination of factor prices, Factor shares and adding up problems. Euler’stheorem, Pricing of factors under imperfect competition, monopoly and bilateralmonopoly. Macro-distribution theories of Ricardo, Marx, Kaldor, Kalecki. 5. Welfare Economics: Inter-personal comparison and aggregation problem, Publicgoods and externality, Divergence between social and private welfare, compensationprinciple. Pareto optimality. Social choice and other recent schools, including Coaseand Sen and Game theory. PART B: Quantitative Methods in Economics: 1. Mathematical Methods in Economics: Differentiation and Integration and theirapplication in economics. Optimisation techniques, Sets, Matrices and their applicationin economics. Linear algebra and Linear programming in economics and Input-outputmodel of Leontief. 2. Statistical and Econometric Methods: Measures of central tendency anddispersions, Correlation and Regression. Time series. Index numbers. Samplingand Survey methods. Testing of hypothesis, simple non-parametric tests. Drawing ofcurves based on various linear and non-linear function. Least square methods andother multivariate analysis (only concepts and interpretation of results). Analysis ofVariance, Factor analysis, Principle component analysis, Discriminant analysis.Income distribution: Pareto law of Distribution, lognormal distribution, measurementof income inequality. Lorenze curve and Gini coefficient. GENERAL ECONOMICS-II 1. Economic Thought: Mercantilism Physiocrats, Clasical, Marxist, Neo-classical,Keynesian and Monetarist schools of thought. 2. Concept of National Income and Social Accounting: Measurement of NationalIncome, Inter relationship between three measures of national income in the presenceof the Government sector and International transactions. Environmental considerations,Green national income. 3. Theory of employment, Output, Inflation, Money and Finance: The Classical theoryof Employment and Output and Neo classical approaches. Equilibrium, analysis underclassical and neo classical analysis. Keynesian theory of Employment and output.Post Keynesian developments. The inflationary gap; Demand pull versus cost pushinflation, the Philip’s curve and its policy implication. Classical theory on Money,Quantity theory of Money. Friedman’s restatement of the quantity theory, the neutralityof money. The supply and demand for loanable funds and equilibrium in financialmarkets, Keynes’ theory on demand for money. 4. Financial and Capital Market: Finance and economic development, financialmarkets, stock market, gift market, banking and insurance. Equity markets, Role ofPrimary and Secondary markets and efficiency, Derivatives markets; Futures andoptions. 5. Economic Growth and Development: Concepts of Economic Growth andDevelopment and their measurement: characteristics of less developed countries andobstacles to their development – growth, poverty and income distribution. Theories ofgrowth: Classical Approach: Adam Smith, Marx and Schumpeter – Neo classicalapproach; Robinson, Solow, Kaldor and harrod Domar. Theories of EconomicDevelopment, rostow, Rosenstein-Roden, Nurske, Hirschman, Leibenstien and ArthurLewis, Amin and Frank (Dependency school) respective role of the state and themarket. Utilitarian and Welfariest approach to social development and A K Sen’scritique. Sen’s capability approach to economic development. The HumanDevelopment Index. Physical quality of Life Index and Human Povery Index. 6. International Economics: Gains from International Trade, Terms of Trade, policy,international trade and economic development – Theories of International Trade;Ricardo, Haberler, Heckscher-Ohlin and Stopler-Samuelson – Theory of Tariffs –Regional Trade Arrangements.7. Balance of Payments: Disequilibrium in Balance of Payments, Mechanism ofAdjustments, Foreign Trade Multiplier, Exchange Rates, Import and Exchange Controlsand Multiple Exchange Rates. 8. Global Institutions: UN agencies dealing with economic aspects, World Bank, IMF and WTO, Multinational Corporations GENERAL ECONOMICS-III 1. Public Finance: Theories of taxation: Optimal taxes and tax reforms, incidence of taxation; Theories of public expenditure: objectives and effects of public expenditure, public expenditure policy and social cost benefit analysis, criteria of public investment decisions social rate of discount, shadow prices of investment, unskilled labour and foreign exchange. Budgetary deficits. Theory of public debt management. 2. Environmental Economics: Environmentally sustainable development, Green GDP, UN Methodology of Integrated Environmental and Economic Accounting. Environmental Values: Users and non-users values; option value. Valuation Methods: Stated and revealed preference methods. Design of Environmental Policy Instruments: Pollution taxes and pollution permits, collective action and informal regulation by local communities. Theories of exhaustible and renewable resources. International environmental agreements. Climatic change problems. Kyoto protocol, tradable permits and carbon taxes. 3. Industrial Economics: Market structure, conduct and performance of firms, product differentiation and market concentration, monopolistic price theory and oligopolistic interdependence and pricing, entry preventing pricing, micro level investment decisions and the behavior of firms, research and development and innovation, market structure and profitability, public policy and development of firms. 4. State, Market and Planning: Planning in a developing economy. Planning regulation and market. Indicative Planning. Decentralised Planning. Indian Economics Syllabus INDIAN ECONOMICS 1. History of Development and Planning: Alternative Development Strategies – goal of self reliance based on import substitution and protection, the post 1991 globalisation strategies based on stabilization and structural adjustment packages: fiscal reforms, financial sector reforms and trade reforms. 2. Federal Finance: Constitutional provisions relating to fiscal and financial powers of the states, Finance Commissions and their formulae for sharing taxes, Financial aspect of Sarkaria Commission Report, Financial aspects of 73rd and 74th Constitutional Amendments. 3. Poverty, Unemployment and Human Development: Estimates of inequality and poverty measures for India, appraisal of Government measures, India’s human development record in global perspective. India’s population policy and development. 4. Agriculture and Rural Development Strategies: Technologies and institutions, land relations and land reforms, rural credit, modern farm inputs and marketing – price policy and subsidies; commercialization and diversification. Rural development programmes including poverty alleviation programmes, development of economic and social infrastructure and New Rural Employment Guarantee Scheme. 5. India’s experience with Urbanisation and Migration: Different types of migratory flows and their impact on the economies of their origin and destination, the process of growth of urban settlements; urban development strategies. 6. Industry: Strategy of Industrial development: Industrial Policy Reforms; Reservation Policy relating to small scale industries. Competition policy, Sources of industrial finances. Bank, share market, insurace companies, pension funds, non-banking sources and foreign direct investment, role of foreign capital for direct investment and portfolio investment, Public Sector reform, privatization and disinvestments. 7. Labour: Employment, unemployment and under-employment, industrial relations and labour welfare – strategies for employment generation – Urban labour market and informal sector employment, Report of National Commission on Labour, Social issues relating to labour e.g. Child Labour, Bonded Labour, International Labour Standard and its impact. 8. Foreign Trade: Sailent features of India’s foreign trade, composition, direction and organization of trade, recent changes in trade policy, balance of payments, tariff policy, exchange rate, India and WTO requirements. 9. Money and Banking: Financial sector reforms, Organisation of India’s money market, changing roles of the Reserve Bank of India, commercial banks, development finance institutions, foreign banks and non-banking financial institutions, Indian capital market and SEBI, Development in Global Financial Market and its relationship with Indian Financial Sector. 10. Inflation: Definition, trends, estimates, consequences and remedies (control): Wholesale Price Index, Consumer Price Index: components and trends. 11. Budgeting and Fiscal Policy: Tax, expenditure, budgetary deficits, pension and fiscal reforms, Public debt management and reforms, Fiscal Responsibility and Budget Management (FRBM) Act, Black money and Parallel economy in India definition, estimates, genesis, consequences and remedies..
Posted on: Mon, 23 Sep 2013 16:33:47 +0000
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