Post Graduate Diploma in Applied Economics (PGDAE)

Term/ Semester/ Year # : Semester I
Credit Hour / Marks : 3
INTRODUCTION

1. An Overview
2. Basic Demand and Supply

PRODUCT MARKET

1. Theory of Consumer Behavior
2. Costs of Production and Economies of Scale
3. Theory of Production
4. Different Market Structures:
5. Perfect Competition, (ii) Monopoly, (iii) Monopolistic Competition, and (iv) Oligopoly

FACTOR MARKET

1. The Labor Market
2. Rent, Interest and Profit

RECOMMENDED READINGS

1. Paul A. Samuelson and D. N. William, Economics, 17th edition. Tokyo: McGraw Hill, 2001.
2. D. Begg, R. Dornbusch and Stanley Fischer, Economics, 8th edition. New York: McGraw Hill, 2005.
3. Stonier and Hague, A Textbook of Economics. London: Longman, 1964.

Additional Readings

1. A. Koutsoyannis, Modern Microeconomics, 2nd edition. London: Macmillan, 2003.
2. R. A. Bilas, Microeconomic Theory. McGraw Hill, 1972.
3. C. E. Fergoson and J. P. Gould, Microeconomic Theory. Richard D. Irwin, Homewood, Illinois, 1980.

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Term/ Semester/ Year # : Semester I
Credit Hour / Marks : 3

1. An Overview of Macroeconomics
2. Measuring National Output and Income
3. Fundamentals of Aggregate Supply and Demand
4. Consumption and Investment
5. Business Cycles and Unemployment
6. The Cost of Inflation
7. Inflation and Unemployment
8. Problems of Growth

RECOMMENDED READINGS

1. Paul A. Samuelson and D. N. William, Economics, 17th edition. Tokyo: McGraw Hill, 2001.
2. D. Begg, R. Dornbusch and Stanley Fischer, Economics, 8th edition. New York: McGraw Hill, 2005.
3. Sonier and Hague, A Textbook of Economics. London: Longman, 1964.

ADDITIONAL READINGS

1. R. Dornbusch and Stanley Fisher, Macroeconomics. New York: McGraw Hill, 1990.
2. W. Branson and Litvak, Macroeconomics. New York: Harper and Row, 1976.
3. F. Glahe, Macroeconomics: Theory and Policy, 2nd edition. New York: Harcourt Brace Javonovich, 1978.
4. R. T. Froyen, Macroeconomics: Theories and Policies, 3rd edition. New York: Macmillan, 1990.

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Term/ Semester/ Year # : Semester I
Credit Hour / Marks : 3
Introduction

The Nature and Use of Mathematics in Economic Models; Ingredients of a Mathematical Model; The Real Number System; Relations and Functions; Types of Functions; Levels of Generality

Equilibrium Analysis

1. The meaning of equilibrium partial market equilibrium linear and non-linear models.
2. General market equilibrium.
3. Equilibrium in national income analysis, supply and demand analysis, IS-LM analysis and production possibilities frontier.

The Fundamentals of Linear Models and Matrix Algebra
The Role of Linear Algebra; Definition of the Terms. Matrix; Vectors as Special Matrices; Identity Matrix; Null Matrix; Scalar Matrix; Diagonal Matrix; Idempotent Matrix; Symmetric Matrix; Transpose of a Matrix; Inverse of a Matrix; Singular Matrix; Commutative, Associative and Distributive Laws in Matrix Algebra; Multiplication of Matrices.

Matrix Inversion
Determinants-Definition and Properties; Use of Determinant in Matrix Inversion; Rank of a Matrix; Minors and Cofactors; Laplace Expansion and Higher Order Determinants; Cramer’s Rule.

Optimization Techniques
Use of derivatives in Economics; Rules of differentiation and their use in business and economics. Concept of optimization, Optimization of multivariable function and its use in economics, Constrained optimization and its application in economics.

Reference Books (Latest editions of these books)

1. Alpha C. Chiang and Kevin Wainwright (2005), Fundamental Methods of Mathematical Economics. McGraw Hill.
2. Edward T. Dowling (2001), Introduction to Mathematical Economics. Schaum’s Outline Series. McGraw Hill.

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Term/ Semester/ Year # : Semester I
Credit Hour / Marks : 3

Presentation of Data and Measures of Central Tendency
Introduction. Types of Averages. Mean: Arithmetic mean; Geometric mean; Harmonic mean; Trimmed mean and Winsorized mean. Quintiles: Median, Quartiles, Deciles, Percentiles. The Mode; Box plot and detailed box plot; Empirical relationship between Mean, Median and Mode.

Measures of Dispersion, Skewness and Kurtosis
Different measures of dispersion; The Range; Quartile deviation; Mean deviation. Variance and standard deviation: Computation of Variance and standard deviation; step deviation method or coding method; Coefficient of variation; Standardized variable; Properties of standard deviation and variance; Skewness: Karl Pearson’s coefficient of skewness, Bowley’s coefficient of skewness; Kurtosis.

Hypothesis Testing
One sample test of hypothesis; One Sample; One tail and two tails tests of significance; Testing for a population mean with a known population standard deviation: Two-tailed test, one-tailed test; P-Value in hypothesis testing; Testing for a population mean: Large sample, Population standard deviation unknown: Testing hypothesis about population proportion when sample size is large; Type II error. Testing of two Sample Hypothesis: Population means, Population proportions; comparing populations with small samples.

Reference Books (Latest editions of these books)

1. James T. McClave and P. George Benson (1998), Statistics for Business and Economics. Prentice-Hall, New Jersey.
2. Mason and Douglas A. Lind (2002), Statistical Techniques in Business and Economics. McGraw-Hill Irwin, Boston.

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Term/ Semester/ Year # : Semester II
Credit Hour / Marks : 3

1. Definition and Measurement of Development
2. General Overview of Development Theories and Their Applicability to Pakistan
3. Pakistan’s Development Experience in the Light of 5-year Plans
4. Agriculture
5. Manufacturing
6. Financial Sector
7. Trade and Balance of Payments
8.  Infrastructural Services
9. Education
10. Health
11. Energy
12. Communication
13. Transport

RECOMMENDED READINGS

1. S. M. Akhtar, Economic Development of Pakistan. Lahore: Publishers United, 1993.
2. Rashid Amjad and Viqar Ahmad, Management of Pakistan’s Economy. Oxford University Press, 1983.
3. Muhammad Aslam, Perspective on Development Planning in Pakistan. Lahore: Bilal Books, 1991.

ADDITIONAL READINGS

1. M. P. Todaro and C. S. Stephen, Economic Development, 11th edition. New York: Prentice Hall, 2011.
2. G. M. Meier and E. R. James, Leading Issues in Economic Development, 7th edition. New York: Oxford University Press, 2000.

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Term/ Semester/ Year # : Semester II
Credit Hour / Marks : 3

1. Introduction to Fiscal and Monetary Policies
2. Monetary Policy: Its Tools, Objectives, Effectiveness
3. Banking
4. Money and Capital Markets
5. Monetary Policy as Operative in Pakistan
6. Objectives and Tools of Fiscal Policy
7. Various Types of Taxes and Their Economic Implications
8. Budget as an Instrument of Fiscal Policy
9. Deficit Financing
10. Fiscal Policy of Pakistan Including Taxation Structure of Pakistan

RECOMMENDED READINGS

1. Aamir R. Hashmi, Monetary Theory and Public Policy, 2nd edition. Lahore: AHP International (Pvt.) Limited, 1997.
2. S. M. Akhtar, Economic Development of Pakistan. Lahore: Publishers United, 1993.
3. Rashid Amjad and Viqar Ahmad, Management of Pakistan’s Economy. Oxford University Press, 1983.
4. S. A. Meenai, Money and Banking in Pakistan. Karachi: Oxford University Press, 1984.
5. Due and Friedlander, Government Finance: Economics of the Public Sector, 6th edition. New York: Richard Irwin, 1997.

ADDITIONAL READINGS

1. Taxation Structure of Pakistan, 1991-92. Islamabad: Finance Division, Government of Pakistan, 1992.
2. FBR Yearbook.

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Term/ Semester/ Year # : Semester II
Credit Hour / Marks : 3

1. Overview of the Theories of International Trade
2. Commercial Policy
3. Commercial Policy of Pakistan
4. Exchange Rates and Balance of Payment
5. International Monetary System

RECOMMENDED READINGS

1. D. Salvatore, International Economics. John Wiley, 2007.

ADDITIONAL READINGS

1. B. Ingram, International Economics. Financial Times Management, 2003.
2. Philip King, Economics and International Economic Policy: A Reader, 3rd edition. McGraw Hill, 1999.

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Term/ Semester/ Year # : Semester II
Credit Hour / Marks : 3
Research Methodology

1. Meaning and definition; Types of research: its merits and demerits; Identification of problem/issue; Data theory and estimation and related problems.
2. Vision survey and communication techniques; Questionnaire; Experiment; Interviewing; Field Survey; Their types and procedures.
3. Data analysis; Data sources; Data research procedures; Evaluation of data (Primary and Secondary).

Applied Econometrics

1. Simple linear regression model; Assumptions, properties, estimation of coefficients and their interpretation.
2. Coefficient of determination (r2); Hypothesis testing and elasticities.
3. Multiple regression model; Estimation of coefficient and interpretation; RSS, ESS, TSS, R2 and their properties; Hypothesis testing; Individual variable significance test; Overall goodness of fit of the model; Elasticities and standardized regression coefficients.

Note: Compulsory TERM PAPER of 25 marks in lieu of sessional marks will be submitted by the students before the commencement of final examination.

Reference Books (Latest editions of these books)

1. Damodar N. Gujarati (2003), Basic Econometrics. McGraw-Hill, Boston.
2. Damodar N. Gujarati (2011), Econometrics by Example. Palgrave Macmillan.

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