Proposed Syllabus
Master of Social Science in Economics & Banking
Department of Economics & Banking
1
MSS in Economics & Banking
PROGRAM INFORMATION
1 
Name of the Program 
MSS in Economics & Banking 



2 
Department 
Department of Economics & Banking 



3 
Faculty 
Faculty of Business Studies 



4 
Total Credit Hours 
50 Credit Hours 



5 
Duration 
1.5 years (three semesters) for the students 


having no economics background. 


1 year (two semesters) for the students who 


completed Honours in Economics or 


equivalent 
6 
Total Cost 
Tk. 65,000 for 1.5 years 


Tk. 45,000 for 1 year 
7 
Payable during admission 
Tk. 20,000 



2
Course Structure at a Glance
FIRST SEMESTER
Course Code 
Course Title 
Credits 
ECON 0001 
Principles of Economics 
3.00 
ECON 0002 
Fundamentals of Mathematical Economics 
3.00 
ECON 0003 
Statistics for Economists 
3.00 
ECON 0004 
Principles of Econometrics 
3.00 
ECON 0005 
Introduction to Islamic Economics & Banking 
3.00 

SECOND SEMESTER 




Course Code 
Course Title 
Credits 
ECON 5101 
Advanced Microeconomics 
3.00 
ECON 5102 
Advanced Macroeconomics 
3.00 
MATH 5101 
Mathematics: Static & Dynamic Optimization 
3.00 
FIN 5101 
Financial Economics in Islam 
3.00 
ECON 5103 
Labor Economics 
3.00 

THIRD SEMESTER 




Course Code 
Course Title 
Credits 

Compulsory Courses 

ECON 5201 
International Economics 
3.00 
ECON 5202 
Economic Development 
3.00 
BNKG 5201 
Monetary Economics & Banking 
3.00 
ECOM 5201 
Advanced Econometrics 
3.00 



COMP5201 
Comprehensive 
3.00 




Viva 
2.00 




Optional Courses ( Any one) 




ECON 5203 
Products Design in Islamic Economic System 
3.00 



ECON 5204 
Resource and Environmental Economics 
3.00 



ECON 5205 
Managerial Economics 
3.00 



ECON 5206 
Thesis ( Thesis holders are exempted from viva) 
5.00 



3
EVALUATION SYSTEM
The course evaluation of the program will be as follows:
MidTerm Exam 
30% 
Class Participation 
20% 
Final Exam 
50% 
The evaluation of Thesis will be as follows: 

Writeup 
75% 
Defense/ Presentation 
25% 


4
Department of Economics & Banking
Program: MSS
Course Title: Principles of Economics 
Course Code: ECON 0001 
A. COURSE OBJECTIVES:
The purpose of this course is to provide students with a basic understanding of the economic theories and analytical tools that can be used in decisionmaking at microeconomic as well as macroeconomic aspects.
B.COURSE CONTENTS:
ChapterTopic
Chapter1 Introduction: Basic Economic Concepts
Meaning of Economics: Positive vs. Normative Economics. The Economic
Problem: Scarcity, Choice, Allocation of Resources, Distribution of National Products, Production Possibility Frontier, Economic Efficiency, and Nature of Economic Theories Micro vs. Macro Economics. The Functions of Micro Economic theory. Alternative Economic Systems Planed Economic System, Market Economic System, Mixed Economic System, and Islamic Economic System.
Chapter2 Theory of Demand, Supply and Market
The Demand Function, Determinants of Demand for a commodity, Demand curve Movement along the Demand curve versus Shifts in Demand, Market Demand, Supply Function Determinants of Supply Movement along the Supply curve versus Shifts in Supply Curve, Market Supply, Market Equilibrium: Determination of Price and Quantity, Shifts in Demand and Supply and Effects on Market Equilibrium. Price Ceiling and Price Floor, Minimum Wage Legislation.
Chapter3 The Measurement of Elasticity
Concept of Elasticity, Elasticity of Demand, Various Concepts of Demand ElasticityPrice, Income & Cross Elasticity of demand, Measurement of Elasticity
5
and its Uses, Elasticity and Revenue Relationship.
Chapter4 Theory of Consumer Behavior
The Concept of Utility: Total Utility, Marginal Utility, Cardinal vs. Ordinal Utility.
a. Cardinal Utility Analysis Marginal Utility and Law of Diminishing Marginal Utility,
b. Ordinal Utility Analysis: Indifference Curve analysis, The Marginal Rate of Substitution, Properties of Indifference Curve, The Budget Line, Consumer Equilibrium.
Chapter5 Theory of Production
Production Function (PF), Shortrun PF, Longrun PF, Total Product, Average Product, Marginal Product, Law of Variable Proportion: Three Stages of Production & Producer’s Rational Decision , IsoQuant and its Properties, , Iso Cost line and its Properties, Producer Equilibrium (Production Maximization vs. Cost minimization), Returns to Scale.
Chapter6 Theory of Cost
Cost Function, Short Run CostFixed Cost, Variable cost, Total Cost, Marginal Cost Law of Variable Proportions, Long Run Cost Derivation of LongRun Cost Curve. Shape of the Shortrun and Longrun Average Cost Curves. Relationships among different Average Costs and Marginal Cost. Economies of Scale and Diseconomies of Scale.
Chapter7 Theory of Product Pricing
Concepts of Plant, Firm and Industry. Total Revenue, Average Revenue, Marginal Revenue and Profit Maximization.
Chapter8 Market Structure
Concept of Market, Different Types of Market Structure Perfect Competition Vs
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Imperfect Competition.
a)Perfect Competition: Definition, Properties, Equilibrium of a Perfect Competitive Firm & Industry both in the Shortrun and Longrun, Normal Profit, Super Normal Profit, Loss & ShutDown Situation of a Perfect Competitive Firm.
b)Imperfect Competition: Monopoly Definition, Properties, causes of creating Monopoly, Monopolist’s equilibrium, Price Discrimination.
c)Monopolistic Competition and Concept of Oligopoly.
Chapter9 Introduction to Macroeconomics
Macroeconomics, Distinguish from Microeconomics, Macroeconomic Policy: Different Concepts of Macroeconomic Policies Keynesian Revolution, Monetarism Supply Side Economics, Rational Expectation Theory, Macroeconomic Performance: Key Indicators of Macroeconomics.
Chapter10 National Income Accounting and Circular Flow of Income
Meaning of national income, GDP at Market Price, GNP at Market Price, NNP at Market Price, NNP at Factor Cost, Importance of National Income Accounting, National Income And National Product, Nominal GDP VS Real GDP, National Income at Current and Constant Prices, Measurement of National Income, Numerical Example, Difficulties in the Measurement of National Income, Personal Income And Personal Disposable Income, National Income as a Measure of Welfare and Economic Progress, Circular Flow of National Income: Two, Three, And Four Sector Model And Closed Model, Business Cycle.
Chapter11 Consumption and Saving
Consumption Function: Average and Marginal Propensity to Consume, Significance of Marginal Propensity to Consume, Savings Function, Derivation of Saving function from Consumption, Average and Marginal Propensity to Save, Relationship between APC and APS, Relationship between MPC and MPS. Keynes’ Theory of Consumption, Absolute Income Hypothesis, Relative Income
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Hypothesis, Permanent Income Hypothesis, and Life Cycle Hypothesis of Consumption.
Chapter12 Theory of Multiplier
National Income Determination, Keynesian Model, GNP Gap, The Concept of Multiplier – Investment Multiplier and Government Expenditure Multiplier , Diagrammatic Representation of Multiplier, Balanced Budget Multiplier, The Multiplier Process, Derivation of Multiplier, Importance of Multiplier, The multiplier and the MPC and MPS.
Chapter13 Investment Spending
Meaning of Investment, Types of Investment, Determinants of Investment: Marginal Efficiency of Capital (MEC) and The Rate of Interest, Measurement of MEC, Investment Decision: MEC and PV Criteria, Investment Demand Curve, Mathematical Problems.
Chapter14 Fiscal and Monetary Policy
Introduction : Concepts of Fiscal and Monetary Policy , Instruments of Fiscal and Monetary Policy, Liquidity Trap and Effectiveness of Monetary policy, Crowding Out and Effectiveness of Fiscal policy , the Composition of Output and the Policy Mix , the Policy Mix in Action .
Chapter15 Aggregate Demand and Supply
The Aggregate Demand Curve, Derivation of Aggregate Demand Curve, Shift in Aggregate Demand Curve, the Aggregate Supply Curve and its Different Shapes, Fiscal and Monetary Policy under Alternative Supply Assumptions.
Chapter16 Inflation and Unemployment
Meaning of Inflation, Types of Inflation: DemandPull Inflation, CostPush inflation and Structural Inflation, Cripping, Hyper and Galloping Inflation, Measuring Inflation (Point to Point),Average Inflation, Effects of Inflation, Anti inflationary Policy, Meaning of Unemployment – Voluntary and Involuntary, Types of Unemployment – Frictional, Structural, Cyclical, Disguised and
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Seasonal Unemployment, The Relation of Wage, Changes to Unemployment: The Phillips Curve.
Chapter17 International Linkages
The Balance of payment and Balance of Trade, Balance of Payments on current account, Balance of Payments on capital account, Market equilibrium and the Balance of Trade, The Balance of Payment and Exchange rate.
C. RECOMMENDED BOOKS:
1.Sloman, J., Garratt, D., & Wride, A., (2015). Economics. Ed. 8th, Pearson Education, Delhi, India.
2.Blinder, A., & Baumol, W., (1993). Economics: principles and policy. Ed. 13th, Cengage Learning, Boston, USA.
3.Samuelson, P.A. & Nordhaus, W.D, (2010), Economics, Ed. 19th, Tata McGraw Hill, New Delhi, India.
4.Maurya, M. L., (2002), Modern Microeconomics: Theory and Application, Manglam Publishers, New Delhi, India.
5.Koutsoyiannis, A. (1982). Modern microeconomics. Ed.2nd, Wiley, Netherland.
9
Department of Economics & Banking
Program: MSS
Course Title: Fundamentals of Mathematical Economics 
Course Code: ECON0002 
A. COURSE OBJECTIVES:
The course is designed to equip students with knowledge on different mathematical tools used in economics and business analyses. This course provides knowledge on primary mathematical formulas, rules, analysis, and their application in economics and business.
B.COURSE CONTENTS
1.Real number system
2.Set theory
3.Functions: Definition examples of function. Equation of straight line gradient of straight line intercepts. Solution of an equation in one variable. Simultaneous equation in two variables. Logarithmic functions, rule of logarithmic and exponential functions.
4.Function of more than two variables. Production functions, Isoquants utility function utility surface Isoutility curves.
5.Limits and continuity of functions– fundamental notion of a limit, definition of a limit a single valued function continuity of functions smoothness.
6.Introduction to Matrix Algebra: Solution of Simultaneous Liner equation systems. Applications to Market.
7.National income and InputOutput models.
8.Derivatives and their applications in economics: Their meaning and geometric interpretation, techniques of derivation, interpretation of the sign, and magnitude of derivatives. Meaning of partial derivatives, partial derivatives of function of more than more two variables.
9.Production function. Homogeneous function. Homothetic functions, properties of homogeneous functions. Linear Homogeneous production functions Euler`s theorem. The concept of elasticity.
10.Differential and total derivatives. Techniques of total differentiation. Second order total differentiation. Application in comparatives static analysis.
11.Linear differential equation and difference equation Elementary applications in Economic dynamics. Higher order differential equations. Maximum and minimum values. Points of inflection. Profit maximization problem.
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12.Constrained maximization and minimization Economic application
13.Integrals and integration: Meaning of integration. Techniques of integration. Definite integration and indefinite integration. Relation between average and marginal concepts examples from economics.
14.Linear programming.
15.Higher order differential equations.
C. RECOMMENDED BOOKS:
6.Chiang, A. C. & Wainwright, K., (2005). Fundamental methods of mathematical economics. Ed. McGrawHill Kogakusha, Tokyo.
7.Allen, R. G. D., (1938).Mathematical analysis for economists (No. HB74. M3 A38). Macmillan, London.
11
Department of Economics & Banking
Program: MSS
Course Title: Statistics for Economists 
Course Code: ECON0003 
A. COURSE OBJECTIVES:
The course is designed to equip students with knowledge on different statistical tools used in business analysis. This course provides knowledge on primary statistical measurement, analysis, and its application in business. In this regard, this course will provide knowledge on data, frequency distribution, the central tendency, variability of data, correlation, and regression of data and probability. After completing this course, students will be able to analyze data for managerial decisionmaking.
B. COURSE CONTENTS:
Chapters 
Topics 
CH1 
Introduction: Origin, Historical background, Definition, Properties, 

Limitation and Scope of Statistics, Business Statistics. 
CH2 
Data: Data, Types of data, Variable, Classification, Tabulation, Frequency 

distribution, Construction of a frequency distribution, Graphical 

representation, Charts and Diagrams. 
CH3 
Measures of central tendency: A.M., G.M., H.M., Median, Mode, Merits, 

Demerits and Uses, Properties of A.M., Graphically determination of 

median and mode, Quartiles, Deciles and Percentiles, Best average, 

Examples regarding Business Application. 
CH4 
Measures of variation: Definition, Objectives, Different Measures of 

variability, Absolute and relative measures, Range, Average deviation, 

Standard deviation, Quartile deviation, Coefficient of variation, Best 

measure of variation, Properties of standard deviation, Merits, Demerits 

and Uses. 
12
CH5 
Skewness and Kurtosis: Definition, Measures of Skewness, 

Measure of kurtosis, Moment. 
CH6 
Correlation and Regression: Introduction, Correlation, Co 

efficient of correlation, Methods of calculating correlation, Scatter 

Diagram, Rank correlation, Multiple and Partial correlation, 

Regression Analysis, Difference between correlation and 

regression, Estimation using the regression line, Multiple 

Regression. 
CH7 
Probability: Introductory ideas, History, Definition of various 

terms, Elementary Set Theory, Notation, Laws of probability, 

Probabilities under condition of statistical dependence and 

independence, Bay’s probability. 
CH8 
Probability Distribution: Random variable, Probability 

distribution, Probability function Probability mass function 

(Binomial PMF, Poisson PMF), Poisson approximation of 

binomial PMF, Probability density function Normal PDF, Normal 

approximation of binomial PMF. 
CH9 
Sampling & Sampling Distribution: Population, Sample, 

Parameter, Statistic, Advantage of sampling, Non probability 

sampling sampling error, Probability sampling (Simple random 

sample, Systematic random sample, Stratified random sample, 

Cluster sample), Sampling distribution of the mean (with & 

without replacement), Central limit theorem. 
CH10 
Introduction to Statistical Inference: 

A. Estimation: Estimation, Estimator – Point & Interval estimator, 

Estimate, Criteria for a good estimator, Interval estimation. 

B. Hypothesis Testing: Determination of Sample Size, Steps of 

Hypothesis Testing, Type I and Type II Error, One tailed & Two 

tailed Test, Hypothesis Test for Population Proportion. 
13
CH11 
Additional Topics in Statistical Inference: tDistribution, Chi 

Square Distribution, Test on a Variance, Goodnessoffit test, 

Tests for Independence. 
CH12 
Time Series Analysis: Introduction to time series, Components of 

time series, Method of semi average & moving Average, Trend 

value. 
C. RECOMMENDED BOOKS:
1.Lind, D. A., & Marchal, W. G., (2014). Statistical Techniques in Business & Economics with Global Data Sets. McGrawHill, New York.
2.Anderson, S., Sweeney, D., Williams, T., Camm, J.D., & Cochran, J.J., (2014). Essentials of Statistics for Business and Economics, Ed. 7th. Stamford, USA
3.Gupta, PN, (2005). Comprehensive Business Statistics, Laxmi Publications, New Delhi, India
4.Wonnacott, R.J. & Wonnacott, T.H., (1984). Introductory Statistics for Business and Economics, Ed. 3rd, Wiley, Netherland.
14
Department of Economics & Banking
Program: MSS
Course Title: Principles of Econometrics 
Course Code: ECON0004 
A. COURSE OBJECTIVES:
This course develops students’ ability to understand the preliminary econometrics concepts, and analyzing as well as using theoretical knowledge to reach econometric solutions of the problems. This course also develops students’ ability to use their gathered knowledge for further econometric treatments.
B. COURSE CONTENTS: 

Chapter 
Topic 
1Review of Prerequisites Statistical Concepts: Sampling DistributionsEstimation and Hypothesis testing Normal test, X2 test and F test Interrelationship among various tests test for a single parameter test for a set of parameters.
2Introduction to Econometrics: What is Econometrics Deterministic and Stochastic Models Reasons for including the disturbance term Estimates and Estimators. Interpreting a regression equation.
3Criteria for Estimators: Computational costs, Least squares, Highest R2 , BLUE properties, Mean square error, Asymptotic properties, Maximum likelihood, Monte Carlo Studies.
4The Classical Linear regression Model: Assumptions, The OLS estimators, derivation of OLS Estimator in a Linear Regression Model, Properties of OLS Estimator. Estimating population parameters of a Regression Model, Tests of population parameters.
5Specification Errors: Consequences of incorporating incorrect set of independent variables.
15
6Nonzero Expected Disturbance and its Consequences.
7Multicollinearity: Definition – ConsequencesRemedies.
C. RECOMMENDED BOOKS:
1.Chiang, A.C., (1974), Fundamental Methods of Mathematical Econometrics, Ed. 2nd , McGraw Hill, New Delhi, India
2.Koutsoyiannis, A., (1979). Theory of Econometrics, Harper and Row publishers, Incorporated, New York.
3.Kmenta, J., (1977). Elements of Econometrics, 2nd Ed., MacMillan Company. New York.
4.Wonnacott, R.J. & Wonnacott, T.H., (1984). Introductory Statistics for Business and Economics, Ed. 3rd, Wiley, Netherland.
5.Gujarati, D.N., (1988). Basic Economerics, Ed. 2nd , McGraw Hill, New Delhi, India
16
Department of Economics & Banking
Program: MSS
Course Title: Introduction to Islamic Economics and Banking 
Course Code: ECON0005 
A. COURSE OBJECTIVES:
The aim of this course is to provide a conceptual framework of Islamic economics. This course is designed to enable students to understand how Islam and Islamic worldview permeate all aspects of life including economics. The basic premise of this course is that the study of Islamic economics proceeds from the Islamic worldview, and is developed according to a methodology that is founded upon this worldview.
B.COURSE CONTENTS: 



Chapters 

Topics 


CH1 
Introduction: Definitions, 
development of 
Islamic 
economic 

thought, basis of Islamic economics, goals or objectives of Islamic 

economics, assumptions of 
Islamic economics, main 
sources of 

knowledge of Islamic economic study, importance of Islamic 

economics. 



CH2 
Comparative Economic System: Laissez – faire economy, market 

economy, command economy, mixed economy, differences between 

Islamic economy and capitalist economy. 


CH3 
Consumer Behavior in Islam: Some basic concepts – characteristics 

of consumer in an Islamic economy, differences between capitalist 

and Islamic consumer's behavior, wantutility vs. needmaslahah, 

Objectives of consumption in Islam, Theory of consumer behavior in 

Islamic economics – model of Monzer Kahf and its differences with 

conventional theory of consumer behaviour. Derivation of Final 

Spending Function, Shifts in the Final Spending Function. 

CH4 
The theory of production in Islam: Objectives of production , the 

17 




goals of the firm, differences between firms in an Islamic society and 

in a nonIslamic society, understanding of the concept of profit and 

profit share in Islam, Islamic perspective on market prices and 

allocations– objectives, Islamic approach to market prices – Islamic 

pricing policy Three policy options, need vs demand, Islamic theory 

of effective needbased demand and potential capacity based supply 

and market mechanism. 
CH5 
Trade and Commerce in Islam: Basic principles, Barter trade, 

Monopoly business, Speculative business, International trade and 

dumping. 
CH6 
Market structure in Islam: Monopoly market and Islam– 

characteristics of a monopolist in Islam, pricequantity relationship of 

a monopoly market in an Islamic perspective, price discrimination and 

Islam, Covering Loss through price discrimination, Oligopoly market 

and Islam definition of oligopoly market and its characteristics, kink 

demand curve in an oligopoly market and Islamic perspective, Profit 

maximization and sales maximization, Satisfying behaviour, 

Advertising in Islam. 
CH7 
Consumption function in Islam: Concept of consumption in Islam, 

consumption function in Islam– its nature and scope in an Islamic 

economy– model of M. A. Mannan, determinants of Islamic 

consumption function– debates regarding APC and MPC, expected 

desirable income hypothesis and consumption. 
CH8 
Islamic banking system: Definition of Riba, different concepts about 

Riba, characteristics of riba, types of riba, reasons behind prohibition 

of riba, concept of Islamic banking, emergence of Islamic banking 

system, features of Islamic banking, objectives of Islamic banking, 

differences between traditional banking and Islamic banking, sources 

of funds of Islamic bank, financing systems of Islamic bank. 
18
CH9 
Public finance in Islam – Zakat : Zakat and Islam – what is zakat 

and why is zakat needed? differences between sachet and capitalist tax 

system, items of sachet, nasal and the rate of sachet, objectives of 

sachet – moral, religious and socioeconomic, sachet recipients, the 

role of state in sachet collection and distribution 
CH10 
Prices in Islamic State: Introduction, Basis of Islamic theory of 

prices, Modern prices: Monopoly price, Real rise in price, artificial 

rise in prices, Rise in Prices of Necessaries of life. 
CH11 
Insurance and Gambling In Islam: Insurance in Islam, Is insurance 

UnIslamic? Difference. 
CH12 
Law of inheritance in Islam and its significance. 
C. RECOMMENDED BOOKS:
1.Mannan, M. A., (1984). The making of Islamic economic society: Islamic dimensions in economic analysis. International Association of Islamic Banks.
2.Abdul, M. (1993). Islamic Economics: Theory and Practice.
3.Iqbal, M., & Molyneux, P. (2005). Thirty years of Islamic banking: history, performance, and prospects. Palgrave Macmillan, USA
4.Haneef, M. A. (1995). Contemporary Islamic Economic Thought: A Selected Comparative Analysis. Alhoda UK.
5.Askari, H., Iqbal, Z. & Mirakhor, A., (2014). Introduction to Islamic Economics: Theory and Application, Wiley, Netherland.
19
Department of Economics & Banking
Program: MSS
Course Title: Advanced Microeconomics 
Course Code: ECON 5101 
A. COURSE OBJECTIVES:
This course aims at providing a view of most of the core materials and some of the frontiers of microeconomics in its different dimensions. This course is intended to introduce the students with a rigorous treatment of microeconomic theory.
Prerequisites
The knowledge of undergraduate level microeconomics is necessary. Compare to undergraduate level microeconomics, this course uses more mathematical methods. Therefore, basic knowledge of Calculus, Linear Algebra and Probability Theory are required.
B. COURSE CONTENTS:
ChapterTopic
Chapter1 Introduction & Mathematical Overview: Introduction to Modeling Methods and Motivations, Review of Calculus and Linear Algebra, Some Topics of Real Analysis and Topology.
Chapter 2 Consumer Theory: Preliminaries of Consumer’s Choice, Preference Ranking, Utility Representation, Utility Maximization Problem and Marshallian Demand, Indirect Utility Function, Expenditure Minimization Problem and Hicksian Demand, Expenditure Function, Duality, Comparative Static Analysis of Demand, Aggregate Demand, The Revealed Preference Approach, Consumer Behavior under Uncertainty, Lancaster’s Model.
Chapter 3 Producer Theory: Production Sets and Production Function, Cost Function and Cost Minimization Problem, Shortrun Cost Function, Longrun Cost Function, Profit Maximization and Supply, Factor Demand Functions, Other Theories of
20
Firm Behavior: Markup Pricing, Revenue Maximization, Model in Competitive Market.
Chapter 4 Game Theory: Rules of the Game, Prisoner’s Dilemma, Equilibrium Strategies, Bertland Paradox, Inter temporal Dimensions of Games, Folk Theorem.
Chapter 5 General Equilibrium Analysis: Multi Market Equilibrium, Walras’ Law, Existence, Uniqueness & Stability in Equilibrium, Review of Linear Programming, NonLinear Programming.
Chapter 6 Welfare Economics: Pareto Optimality, Efficiency of Imperfect Competition, External effects in Consumption and Production, Social Welfare Function, Theory of Second Best, Coase Theorem
Chapter7 Information Economics: Adverse Selection, Moral Hazards
C. RECOMMENDED BOOKS:
1.MasColell, and Green (1995) Microeconomic Theory, Oxford University Press: New York.
2.Varian, H.R., (1992) Microeconomic Analysis, W. E. Norton & Company, Inc: New York.
3Geoffrey A. Jehle and Philip J. Reny (2011) Advanced Microeconomic Theory, AddisonWesley: Boston.
4Henderson, J. M. & Quandt, R. E. (1981) Micro Economic Theory, MC Grew Hill Company: New York.
5Layard, P.R.G., and Walters, A. A., (1978) Micro Economic Theory, MC Grew Hill Company: New York.
6Deaton and Muellbaur (1980) Economics and Consumer Behavior, Cambridge University Press: Cambridge.
21
Department of Economics & Banking
Program: MSS
Course Title: Advanced Macroeconomics 
Course Code: ECON 5102 
A. COURSE OBJECTIVES:
This course aims at providing a view of most of the core materials and some of the frontiers of macroeconomics in its different dimensions. This course is intended to introduce the students with an in depth treatment of macroeconomic theories and tools.
B. COURSE CONTENTS:
Chapter 
Topic 
Chapter 1 
Macroeconomics in an open Economy: Mundell Fleming Model and Some 

Extensions, Baseline MF Model, Large Country Case, Insulation and MF Model, 

The Case of Imperfect and No Capital Mobility, J Curve Effect and the MF Model, 

Wealth Effect and the MF Model, Twocountry MF Model and Interdependence, 

International Policy Coordination. 
Chapter 2 Demand for Money: Basic Issues Related to Demand for Money, BaumolTobin Model, Partial Adjustment Model, and Error Correction Model.
Chapter 3 Supply of Money: Components of Base Money, Central Bank’s Balance Sheet and Base, Money Instruments, Intermediate Targets and Goals of Central Bank, Under What Circumstances Central Bank Should Target Money Stock and Interest Rate
Chapter 4 Money and Inflation: Evidence and Recent Examples of High Inflation, Views on Inflation, Reasons behind Inflationary Monetary Policy, NonAccelerating Inflation Rate of UnemploymentNAIRU, Cagan Model.
Chapter 5 Models of Aggregate supply: Sticky Wage Model, Sticky Price Model, Imperfect Information Model.
Chapter 6 Advances in Business Cycle Theory: The Theory of Real Business cycle, New Keynesian Economics.
Chapter 7 Growth Model: Growth Accounting, New Classical Growth Model, Endogenous Growth Model.
22
Chapter 8 Some Important Debates: Rational Expectations Revolutions, Capital Controversy.
Chapter 9 Macroeconomic Policy Debate: Active or Passive, Rules or Discretion, Policy in an Uncertain World
C. RECOMMENDED BOOKS:
1.Mankiw, N. G., (2010) Macroeconomics, Worth, Ed. 7th , New York, USA
2.Dornbusch and Fishcer (2005), Macroeconomics, Ed. 6th , McGrawHill, New York, USA.
3.Mishkin, F. S. (2007), The Economics of Money Banking and Financial Markets, Prentice Hall PTR,
4.Branson W.H., (1972), Macroeconomic Theory and Policy, Harper & Row, Mishawaka, U.S.A.
5.Paul, H.C. & Ronald, M., (2000), International Money and Finance, Ed. 3rd, Willy,Netherland.
6.Olivier, B., (2007), Macroeconomics, 4th Edition, Pearson Education, New Delhi, India
23
Department of Economics & Banking
Program: MSS
Course Title: Mathematics: Static & Dynamic Optimization 
Course Code: MATH 5101 
A. COURSE OBJECTIVES:
The fundamental aim of this course is to provide students with knowledge about mathematics: static & dynamic optimization. This is a graduate course which aims to provide a view of mathematical aspects of optimization in basic economic theories. This course helps students understand the concepts of basics of Static & Dynamic Optimization.
B. COURSE CONTENTS:
CH1 Review of Matrix: Matrix Inversion, Economic Application, Application to Market and National Income, InputOutput Models, Rank of the Matrix.
CH2 Review of Derivatives: Partial and total derivatives, Chain rule, Total differential and total derivatives, Homogeneous and Homothetic Function, Properties of Linear Homogeneous Functions, CES Production Function, Elasticity of Substations, Euler’s Theorem, Free Versus Constraints Optimization, Roy’s Identity and Shephard’s Lemma .
CH3 Review of Integration: Economic Application, First Order Differential Equation and Eifference Equation.
CH4 Linear Programming and nonLinear Programming: Graphical Method, Simplex Method, Primal, Duality
CH5 Set and Relations: Review, Properties of Relations. Domain and Converse Domain, Equivalence Relations, Ordering Relations, Preordering, Weak Ordering, Storng Ordering, Theory of Consumer Behaviour Preference and Indifference Relations,
24
Complete and Partial Ordering.
CH6 Functions and Mapping: Convex Sets, QuasiConcave And QuasiConvex Functions, Continuity of Functions, Feasible Set Properties, Cmptiness, Closedness, Boundedness, Convexity, Restrictions on the Feasible Set (Nonempty Closed Bounded) and the Objective Function. Existence of Solution of an Optimization Problem in Economics.
CH7 Calculus of Variations: Functional Necessary Conditions for Optimal Values, Boundary Conditions, Intertemporal Consumption, Efficient Path of Capital
Accumulation.
CH8 Implicit Function Theorem: Implicit vs. Explicit Function, Jacobian, Implicit Function Rule.
CH9 Game Theory: Nash Equilibrium, Dynamic Games.
C. RECOMMENDED BOOKS:
1.Akira, T., (1985), Mathematical Economics, Cambridge University Press: Cambridge
2.Chiang, A.C., & Wainwright, K., (2005), Fundamental Methods of Mathematical Economics, Ed. 4th, McGrawHill, New York, USA.
3.Allen, R.G.D (2008), Fundamental Methods of Mathematical Economics, London School of Economics, UK
25
Department of Economics & Banking
Program: MSS
Course Title: Financial Economics in Islam 
Course Code: FIN 5101 
A. COURSE OBJECTIVES:
The purpose of this course is to provide students with an understanding of the financial economic with the specific perspective of Islamic theories that can be used in decisionmaking at microeconomic as well as macroeconomic aspects. This course aims at providing a view of most of the core materials and some of the frontiers of financial economics in Islam in its different dimensions. This course is intended to introduce the students with an in depth treatment of theories and tools.
B. COURSE CONTENTS: 

Chap 
Topic 
ter 

1.Brief Introduction to Conventional Economic System and Financial System: Conventional Economics based on Capitalism, Socialism, Communism and Secularism, Structure of Financial System, Financial Instruments, Financial Institutions and Financial Markets and their Classifications – Principle/Characteristics, Objectives, Functions/ Importance/ Role of a Conventional Financial System and each of the types of Financial Instruments, Financial Institutions and Financial Markets in a Conventional Economy. Outcomes of Conventional Economic and Financial System.
2.Fundamental Prohibited Elements in Islamic Finance: Riba / Interest in Islam, Prohibition of Riba, Gharar and Maysir (Gambling), the Concept, Characteristics and Classification of Riba/ Interest Interest and Profit – Interest and Rent Capitalists’ Arguments in Favour of Interest Social, Moral, Economic, and Political Demerits of Interest Views of Different Philosophers and Religions Regarding Interest Islamic Viewpoint on Interest in the Light of the Teachings of the Holy Quran and AlHadith Limitations of the Conventional Financial System from Islamic Viewpoint and Justification for an alternative. The Case of Islamic Financial System.
3.An Introduction of Islamic Economic System and Financial System: Objectives of an Islamic Economy, The Concept and Structure – Islamic Financial Instruments, Islamic Financial Institutions and Islamic Financial Markets and their Classification and Structures – Principle/ Characteristics, Objectives, Functions/ Importance/ Role of an
26
Islamic Financial System and Each of the Types of Islamic Financial Instruments, Islamic Financial Institutions and Islamic Financial Markets in an Islamic Economy Difference/ Comparison between Islamic Financial System and Conventional Financial System Requirement of Successful Implementation of Islamic Financial System.
4.Shariah Contracts for Islamic Financial Instruments: Elements of Shariah Contracts Form, Subject Matter and Contracting Parties of the Contract, Classification of Shariah Contracts Exchange based, Charity based, Waiving based, and Partnership based Contracts, Concept of Exchange based Contracts Such as Bay AlMurabaha, Istisna, Salam, AlDayn, Al Sarf, Al Inah, Al Tawarruq, and Ijarah, Partnership Contracts Such as Musharaka and Mudarabah, Charitable Contracts such as Hibah, Wadiah. Other Contracts: Agency Contract, Security Contract – Kafalah, Rahn and Supporting Contracts such as Hiwalah, Muqasah(Set off), Ibra and Wad.
5.Money Market: Introduction, Money Market Participants, Money Market Instruments, Functions of a Money Market, Differences between Islamic and Conventional money Markets, Trading of Islamic Money Market Instruments.
6.Capital Market: Bond Market, Sukuk Market and Equity Market: Definition of Bond, Treasury Bond, Municipal Bond, Corporate Bond, Definition of Sukuk, Origin of Sukuk, Role of Shariah Framework in Sukuk Structuring, Sukuk Structures: Sale, Lease and Equity Based Sukuk. Issues, Opportunities and Challenges in the Sukuk Market. Definition Equity Market, The Characteristics of Islamic Equity, Shariah Permissibility of Secondary Market Trading, Islamic Equity Market Instruments such as Shares or Stocks, Preference Shares, Stock Index Futures and Short Selling, Shariah Screening of Shares, Sector Screening, Financial Screening, Dividend Purification and Issues in Shariah Stock Screening, Issues, Opportunities and Challenges, Speculation in Equity Markets.
7.Commercial Banking under an Islamic Framework: Concept, Characteristics, Objectives, Functions/ Role/ Importance of Conventional Commercial Banking Rationale of Islamic Banking: Concept, Characteristics, Objectives, Functions/ Role/ Importance of Islamic Banking, Comparison between Conventional Banking and Islamic Banking, Establishment, Growth and Performance of Islamic Banks in Bangladesh: Genesis of Islamic Bank Organizational Structure Objectives, Characteristics, Functions Modes of Financing Role and Contribution of Islamic Banks in the Economy of Bangladesh Poverty Alleviation and Islamic Banks: The Rural Development Schemes Issues and Problems of Islamic Banking. A critical appraisal of the role of Bangladesh Bank with regard to the promotion of Islamic Banking Problems and Prospects of Islamization of Banking in Bangladesh.
8.Modes of Financing and Management of Fund by Islamic Bank: Sources of Funds – Savings, Current, Term Deposit and Investment Deposit – Mudarabah General Investment Deposit, Wakalah Restricted and Unrestricted Investment Deposit and Mudarabah Special Investment Deposit, Underlying Contracts for Savings and Current
27
Deposit, Quard based Deposit, Mudaraba Deposit (Restricted and Unrestricted).
Uses of Funds Islamic Retail Financing, Automobile Financing, Personal Financing under Bai Al Inah and Tawarruq, Rahn Personal Financing, Islamic Credit Cards, Corporate Financing Sale based, Lease based, Working Capital Financing, Islamic Trade Financing Instruments and Practices Letter of Credit, Trust Receipt, Accepted Bills, Bank Guarantee, Shipping Guarantee, Comparison between Conventional and Islamic Trade Finance.
9.Central Banking and Monetary Management under Islamic Framework: Definition, Characteristics, Objectives, Importance/ Role/ Functions of a Conventional Central Bank Monetary Policy and Monetary Management by a Central Bank in a Conventional Economy and in an Islamic Economy, Monetary Policy Instruments such as Required Reserve Ratio, Discount or Bank Rate, Open Market Operation and Islamic Monetary Policy Instruments, The case of Control Measures Goals, Instruments and Operations Comparative Study.
10.Insurance in Islam: Definition, Characteristics, Objectives and Importance of Conventional Insurance Criticisms of Conventional Insurance from Islamic View point and Justification for an Islamic Insurance(Takaful) Concept, Objectives, Characteristics of Islamic Insurance Historical Development of Takaful, Operational Framework of Takaful, Classification of Takaful Operations, Underlying Contracts in Takaful, Comparison between Conventional Insurance and Islamic Insurance with Special Reference to Life Insurance and Lessons for the Islamization of insurance in Bangladesh, Issues, Opportunities and Challenges  Shariah Issues in Takaful.
C. RECOMMENDED BOOKS:
1.Dusuki, A.W., (2011) Islamic Financial System Principles and Operations, International Shariah Research Academy for Islamic Finance(ISRA), Malaysia
2.Sethi T. T., (1999), Money, Banking and International Trade. New Delhi: Sultan Chand (pp. 261276)
3.Kabir, M.H., (2003), Islamic Banking, Islamic Economic Research Bureau
4.Sharif, H.M., (2003), Islami Banking: Ekty Unnatatar Bank Babostha (Islami Banking: A Superior Banking System)
5.Vaish, M. C., (1985), Money, Banking and International Trade, 2nd Edition, New Age International (P) Limited
6.Rose, P.S., (2002), Commercial Bank Management, Ed. 5th, McGrawHill/Irwin, New York, USA.
28
Department of Economics & Banking
Program: MSS
Course Title: Labor Economics 
Course Code: ECON 5103 
A. COURSE OBJECTIVES:
This is a graduate course which aims to provide a view of economic analysis of labour market. This course helps students understand the concepts of demand for and supply of labour, labour market equilibrium, unemployment, inflation unemployment tradeoff and labour market policy. Studying this course, it will be possible to compute the amount of labour exploitation by the individual firms. A remedial measure in this connection is suggested in the course.
B. COURSE CONTENTS:
Chapter 
Topic 
Chapter 1 
Introduction To Labor Economics: 

Definition of Labour Economics, Nature of Labour Economics, History and 

Evolution of Labour Economics. 
Chapter 2 The Supply Of Labor:
A. Quantitative Aspect of The Labor Supply: Labor Force, Population, Natural Rate of Population Increase, Net Migration, Labor Participation, Business Cycles and Hidden Unemployment, Family Allocation of Labor, Labor Force Participation By Sex And Age, Hours of Work and The Supply of Effort, Basic Characteristics of Labor Force and Nature of Labor Force Participation in Bangladesh.
B.Qualitative Aspects of the Labor Supply: Human Capital Approach: Education and Training as Investments. On the Training, General Training, Specific Training. Empirical Evidence, Challenge to Human Capital Approach Dual Labor Market Theory, Internal Labor Markets and Specific Training, Primary and Secondary Labor Markets, Policy Implications of Dual Labor Market Theory. Neomarxian (Radical) Perspective of the Labor Market, Radicals and Public Policy. A Critique of Radical View.
Chapter 3 The Demand For Labor:
A. Marginal Productivity Theory in Competitive Market: Nature and Uses, Theory of Demand for Labor, Derivation of Demand Schedule, Interpreting Short Run Demand Schedule, Demand for Labor in Long, Market Demand Schedule and Minimum Wage Laws, Role of The Demand for the Final Product, Demand for Labor in Economy as a Whole.
29
B. The Demand for Labor in NonCompetitive Product Markets, Monopoly in Labor Markets, Formal Model, Interdependence between Wages and Productivity, Fixed Cost of Employment, Demand For Overtime Hours.
Chapter 4 Unemployment and Inflation: Causes of Unemployment Unemployment and Phillips Relation Job Turnover of Inadequate Demand. Unemployment and Full Time Job Search. Whither Structuralism? Unemployment Policy: Policies to Remedy Frictional Unemployment. Structural Policies. Wages Price Dilemmas The Keynesian Proposal. Effectiveness of Guideposts.
Chapter 5 The Views of Labor Theories: Marxist, Webs, John R. Commons, Selig Perlman, Dunlop, Harbison and Myers, Labor Movement in Indo Bengal Sub Continent.
Chapter 6 The Economics of Collective Bargaining: Economic Sanctions of Collective Bargaining, Public and Private Costs of Collective Bargaining, Bargaining Power in Collective Bargaining, Economic Constraints of Collective Bargaining, Interrelatedness of Wage Bargain: Industry Wide Bargaining. Union Bargaining Objectives: Business Firm Analogy, Maximization of Wage Rate, Maximization of Total Wage Bill, Maximization of Multivalue Goals, Employers Goals, Maximizing Behavior for the Business Firm Competitive and Monopolistic Hiring of Labor. Bilateral Monopoly Analogy. Employers Preference and Changing Demand Conditions, Wage Settlement Under Condition of Imperfect Knowledge. Employment Effect of Wage Settlement. Non Wage Aspects of Collective Bargaining, Union Security, Security and Public Policy. Grievance Procedure and Arbitration.
Chapter 7 The Impact of Trade Union on Wages, Prices and The National Income: Marginal Productivity Theory, Relative Wage Impact of Unions, Labor Share of National Income, Macroeconomic View of Distribution Problems, Impact of Trade Union on Employment, Role of Trade Unions in Bangladesh.
Chapter 8 Wage Structure: Occupational Wage Differential, Wage Differentials by Race and Sex, Distribution of Earnings By Sex. Fringe Benefits Situation in Bangladesh.
Chapter 9 Human Resource Development:
A.Introduction to Human Resources.
B.Education: Investment in Human Capital, Rate of Return on Investment in Education. Educational Investment in Developing Countries, Investment in Social Infrastructure, Education and Employment, Education as a Public Policy in Bangladesh.
C.Health and Nutrition: Health as an Investment, Human Capital and Demand for Health, Disease and Labor Productivity, Health Policy for Developing Countries, Nutrition Objectives, Food and Nutrition
30
Planning, Health Policy of Bangladesh Government.
D.Entrepreneurship: Situation in Bangladesh.
E.Migration: Harris Todaro Type Models of Internal Migration, Migration and Metropolitan Growth, Intervening Opportunities and Migration, Cost and Return of Human Migration. Interrelation between Migration and Fertility in Spatial Distribution of Population, Pattern, Cause, and Consequences of Internal Migration in Bangladesh.
Chapter 10 Rural Labor Markets: Nature and Characteristics of a Rural Market.
Chapter 11 Labor Market Studies of Selected Countries: India, Sri Lanka, Egypt, and Indonesia.
C. RECOMMENDED BOOKS:
1.Ress, A., (1984), The Economics of Work and Pay, Ed. 3rd, AGRIS and FAO
2.Marshall, F.A., King, A.G. & Briggs, V.M., (1980), Labor Economics: Wages, Employment and Trade Unionism., McGrawHill/Irwin, New York, USA.
3.Hicks, J.R ., (1963), Theory of Wages., Martin's Press, New York, USA
4.Bowen, W.G., & Finegan, A.T. (1969), The Economics of Labor Force Participation, agris.fao.org
5.Cain, G.G., (1966), Married Woman In The Labor Force: An Economic Analysis
6.Gray, S. B., (1993), Human Capital, Ed. 3rd , University of Chicago Press, USA
7.Gordon, D.M., (1973), Theories of Poverty and Unemployment, Lexington, Mass.: Lexington Books
8.Reynolds, L.G., (1951), , The Structure of Labor Markets. Harper,USA
31
Department of Economics & Banking
Program: MSS
Course Title: International Economics 
Course Code: ECON5201 
A. COURSE OBJECTIVES:
This course aims to provide a view of most of the core materials of international trade and finance. This course is designed to introduce students with advanced concepts of international economics. Modern and advanced trade theories got substantial focus in this course.
B. COURSE CONTENTS:
ChapterTopic
Chapter 1 The Pure Theory of International Trade
A. Patterns of Trade
Ricardian Model ExtensionsMultiple Countries, Multiple Goods, Heckscher Ohlin Model, ExtensionsMany Countries, Many Evidence, Factor Content Proposition of Vanek and Melvin Growth Theoretic Extensions.
B. International Trade in Intermediate Goods
Intermediate Goods Trade and production Possibilities, Newly Industrialized Countries and Foot Loose Production Process, Foot Loose: Inputs; the Role of Comparative and Absolute Advantage.
C. Imperfect Competition and International Trade
Export Cartels and Commodity Agreements, Monopoly, Monopolistic Competition and International Trade, Effects of Oligopoly
D. Migration and Capital Flows
Chapter 2 Free Trade vs. Trade restrictions:
A.Gains from Trade: Single Country vs. World Tariffs and Quotas, Taxes and Subsidies
B.Optimal Policy Intervention in The Presence of Domestics Distortion, NonEconomic Objectives.
C.Trade from the Regional and International Point of View, Theory and Practices of Uniform vs. Preferential Tariff Reduction.
D.Trade Policies of Developing Countries: Domestic Resources Costs and Effective Rates of Production Multinational Companies.
E.Multilateral Trade Agreement, Intellectual Property Rights and World Trade organizations Region and SubRegional CoOperation Concepts of SAPTA and SAFTA.
32
Chapter 3 Trade and Economic growth
Chapter 4 The Monetary theory of international Trade.
A. The Balance of International payments: Disequilibrium and Adjustment Mechanism Exchange Rate, Price Levels and Capital Movement. International Financial Markets; Foreign Exchange Markets, Arbitrage, Vehicle Currencies, Short Term Capital flows, Euro, Dollar and Efficiency of International Capital Markets.
B. Macroeconomic policies in an Open Economy: Choosing Between PoliciesAttaining Internal and External Balance
C. International Reserves and Liquidity; Demand for Supply of Reserve. Adjustment—International Monetary Reform.
C. RECOMMENDED BOOKS:
1.Johnson. HG (1958), . International trade and Economic Growth, Cambridge Mass, Harvard University press,.
2.Meade, J.E, (1951), The Balance of Payments, Mathematical Supplement, London, Oxford University Press,
3.Richard E. Caves Ronald W. Jones (1981) world Trade and payments: An Introduction, 3rd Ed. Little Brown and Company,.
4.Hockmen Bernard. M. (1995), Trade Laws and institutions, Good Practices and The World Trade Organization, , World Bank Discussion Papers No282.
5.Center for Policy Dialogue (1996),. Growth or Stagnation? A review of
Bangladesh’sDevelopment,universitypressltd.Dhaka,Bangladesh.
6.Franklin R. root (1990), , International Trade and investment , 6th Ed, , south Western Publishing company, Cincinnati, Ohio, USA
7.Ponciano S. intal. Jr. And Gerald C. Nelson, Ed.( 1993), Readings In International Trade Theory, Policy and Development, First Ed.. Winrock International institute of Agricultural Development,1600 Pasig, Manila, The Philippines
8.Dominic Salvatore (1983), International Economics, Macmilian Publishing Co. Inc. New York,
33
Department of Economics & Banking
Program: MSS
Course Title: Development Economics 
Course Code: ECON5202 
A. COURSE OBJECTIVES:
This course aims to provide various dimensions of economics in analyzing development theory and policy. This course acquaints students with different growth models.
B. COURSE CONTENTS:
ChapterTopic
Chapter 1 Nature of Development and Underdevelopment: Methodological Issues, Concepts and Measurement. Semantics of indicators Problems of Socio Indicators. Validation of Development indicators Development Indicators and Statistical Systemsindicators and Definition of Development.
Chapter 2 Theories of Development: Overview of General Theories of Economic Growth and Development, Classical view of Development: Smith, Ricardo and Mill. Marxian View of Development: Marx, Lenin, Luxembourg. NeoClassical view of Development: Marshall, Hicks, Myint. Institutional Views of Development: Schumpeter, Rostow, Innis and Polany. PostKeynesian View of Development:

Harrod Domar Model. 

Chapter 3 Dualism: Social, Cultural and Political versionsDualism: Labor, 
Land and 

TechnologyArthur Lewis, RanisFei Models. Dualism: 
Extensions, 

Modifications and Criticisms. Some Case Studies of Dualism: India, Thailand, 

South Korea, Taiwan, and Bangladesh. 

CH4 
Dependency Theories: Origins and Early Views. Dependency: Transnationalism 

and World System. Dependency: Criticisms, Revisions and Assessment. Case 

Study of Dependency: Latin Americathe Views of A. G. Frank, O. Sunkel, Samir 

Amin and Paul A. Baron regarding Dependency Theory. 

Chapter 5 Technology and Development: Production Techniques and Innovation; Choice 

of Technique and Employment; the Treatment of Technological Progress in 

International Trade Theory; Mechanism and Impact of Technology Transfer on 

LDCs: Appropriate Technology Debate. 

Chapter 6 Trade and Development: NeoRicardian, Unequal exchange and Dependency Theories. Critique of NeoRecardianism and Unequal Exchange. Analysis and
34
Interpretation of New International Economic Order.
Chapter 7 Foreign Aid: The Economics of Foreign Aid, Effects of Aid on Least Developed Countries (LDCs) and External Dependency.
Chapter 8 Foreign Private Investment and Multinational Corporations: Theories of International Investment, Effects of International Investment on the Periphery on Development Policies and Economic Growth, Public and Private Savings, Technology and Development. Multinational Capitalism Control Over Multinationals.
Chapter 9 Development Strategies: Balanced vs. Unbalanced Growth Import Substitution vs. Export Promotion Strategies in Bangladesh. Strategies for Rural Development.
Chapter10 Sustainable Development: Meaning of Sustainable Development, Environment and Development Nexus, Climate Change, Role of Developed and Developing Countries in Climate Change Resilience.
C. RECOMMENDED BOOKS:
1.Wilber, C. K., (1988), The Political Economy of Development and Underdevelopment.
2.Colman, D. & Nixson, F.I., (1986), Economics of Changes in Less Developed Countries., Rowman & Littlefield.
3.Todaro, M.P., (1992), Economics for a Developing World, Ed. 3rd, Pearson Education, NY, USA.
4.Gérard Roland (2014), Development Economics, Ed. 1st, Pearson Education, NY, USA.
5.Michael Todaro, Stephen Smith (2014), Economic Development, Ed. 12th, Pearson Education, NY, USA.
6.BH Higgins (1959), Economic Development: Principles, Problems and Policies., agris.fao.org
35
Department of Economics & Banking
Program: MSS
Course Title: Monetary Economics and Banking 
Course Code: BNKG5201 
A. COURSE OBJECTIVES:
This course is designed to equip students with knowledge on Central Banking and its functions,
monetary policies and monetary management, risk management, etc. This course will provide
knowledge about how to implement polices to determine supply of money for stabilizing inflation and output.
B. COURSE CONTENTS:
Chapters 
Topics 
CH1 
Introduction to Central Banking: Central bank in the financial system, 

Evolution, Characteristics, Objectives, Philosophy & Functions of Central 

Bank, Relationship between Central Bank & Govt., Central Bank & 

Commercial Banks, Modern Central Banking, Autonomy of Central Bank, 

Separation between supervisory & Monetary Authorities. 
CH2 
Supervision of Financial Institutions: Theory, Objectives & Agencies of 

Bank Regulation, Methods of Bank Regulation, On site & Off Site 

(CEMELS Rating), Deposit Insurance & Bank Failures, Risk Management 

& Internal Control Mechanism, Basic Guidelines on Bank Supervision, 

Supervision of Non Banks& Other Financial Institutions. 
CH3 
Monetary Policy: Money & its Functions, Demand for & Supply of 

Money, Multiple Deposit Creation, Determinations of Money Supply, 

Monetary Base & Money Multiplier, Conduct of Monetary Policy Tools, 

Targets, Goals & Monetary Transmission Mechanism. 
CH4 
Central Banking & Monetary Management in Bangladesh: Bangladesh 

Bank Order1972, Prudential Regulation, Monetary Policy of Bangladesh. 

Exchange & Reserve Management: Exchange Rate Policy, 
CH5 
Fixed & Floating Rate, Relationship with International 

Monetary Intuitions, Foreign Currency Investment. 
C. RECOMMENDED BOOKS:
1.Smith & Gray (1991), Money , Banking & Financial Intermediation, D.C. Heath
2.Ahmed, A.K.N, (1995) Deregulation & Central Bank Autonomy, University Press Ltd, Dhaka
36
Department of Economics & Banking
Program: MSS
Course Title: Advanced Econometrics 
Course Code: ECOM 5201 
A. COURSE OBJECTIVES:
This course develops students’ ability to conduct independent research. The course is designed to be taught together with statistical software so that students face no problem in performing empirical studies.
B. COURSE CONTENTS:
ChapterTopic
CH1 Briefly Review of Regression analysis: Simple Regression analysis & Multiple Regression analysis.
CH2 Dummy variable regression models: Nature of dummy variables, dummy variables alternative to the chow test, Interaction effects using dummy variables.
CH3 Heteroscedasticity: Nature of heteroscedasticity OLS estimation in the presence of heteroscedasticity, Method of GLS, Consequences of heteroscedasticity, Detection of heteroscedasticity, Remedial measures.
CH4 Autocorrelation: Nature of the problem, OLS estimation in the presence of autocorrelation, Consequences of autocorrelation, Detection of autocorrelation, Remedial measures.
CH5 Qualitative response regression models: Nature of qualitative regression models, Linear probability model – application of LPM, Alternatives to LPM, Logit model, Probit model & Tobit model.
CH6 Dynamic Econometric Models: Role of ―LAG‖ in Economics, reasons for LAGS, estimation of Distributed Lag Models, Estimation of Autoregressive Models, Detecting autocorrelation in autoregressive models.
CH7 Simultaneous equation Models: Nature of simultaneous equation models, simultaneous equation bias, inconsistency of OLS estimators, Identification problem, Estimation method of two stage least squares (2SLS).
37
CH8 Time Series Econometrics: Some basic concepts: Stochastic Processes Stationary & Nonstationary, Unit Root stochastic Processes, Trend Stationary & Difference stationary stochastic processes, Integrated stochastic processes, Spurious regression, Tests of stationarity – Graphical analysis, Autocorrelation function & Correlogram, Unit Root test – Augmented Dickey Fuller (ADF) test, Ftest, PhillipsPerron unit root tests, Transforming nonstationary time series, Cointegration.
CH9 Time series Econometrics: Forecasting: Approaches to economic forecasting ARIMA models, VAR models, Autoregressive(AR) process, Moving Average(MA) process, ARMA & ARIMA process, Vector Autoregression estimation, Forecasting with VAR, measuring volatility in financial time seriesARCH & GARCH models.
C. RECOMMENDED BOOKS:
1.HIll, C.R., Griffiths, W.L., & Lim, G.C., (2011), Principles of Econometrics, Willy, New York, USA,
2.Koutsoyiannis, A. (2001), Theory of Econometrics, Ed. 2nd , Palgrave Macmillan Limited
3.Kmenta, J., (1971), Elements of Econometrics, Macmillan
38
Department of Economics & Banking
Program: MSS
Course Title: Comprehensive 
Course Code: COMP5201 
Guideline: Students have to appear in a Comprehensive examination at the end of third semester. Comprehensive examination includes the courses of Microeconomics, Macroeconomics, Econometrics, and Finance & Banking. The test is aimed at examining students’ knowledge on basic concepts of economics and banking. Econometric tools are of immense need for conducting research in social science and business. Comprehending the need of research, the course Econometrics has also been included in Comprehensive examination.
Marks Distribution 

Microeconomics 
25% 
Macroeconomics 
25% 
Finance & Banking 
25% 
Econometrics 
25% 
Total 
100% 
39
Department of Economics & Banking
Program: MSS
Course Title: Products Design in Islamic Economic System 
Course Code: ECON5203 
A. COURSE OBJECTIVES:
The fundamental aim of this course is to provide students with knowledge about the products formation and their marketing in an Islamic economic framework. Conventional economics does not care about the merit of the products regarding its social cost. There may have products that generate huge profit to the producers but at the same time those products do harm to the individuals and to the society. Present course takes account of the normative aspects of product marketing. Also the course focuses means of investment in an Islamic economic system.
B. COURSE CONTENTS:
Chapters 
Topics 
CH1 
General Theory of Contract: Definition of Contract, Prerequisites of 

Contract, Subject Matter of Contract, Types of Shariah Contract, The 

Prohibited Elements in Shariah Contract. 
CH2 
Usury/ Interest (Riba), Ambiguity (Gharar): Riba, Prohibition of 

Riba, Types of Riba, Gharar and its Prohibition, Gharar and Settlement 

Risk, Difference between Gharar and Jalah, Maysir and its Prohibition 
CH3 
Sale (AlBay’) Contract: Definition of Sale, Legal status of sale 

Contract, the Required Condition of Sale Contract, Classification of 

Sale Contract, Unlawful Sale Contracts. 
CH4 
AlSalam, AlIstisna, Currency Exchange Contract: Bay’ Salam, 

Definition of Istisna, Comparison between Bay’ Salam and Bay’ 

Istisna. 
CH5 
Loan (AlQuardh) Contract: Legality of Quardh, Quardh Contract, 

Muzabanah Trade. 
CH6 
Lease Contract and Promise of Reward: Legal Status of Ijarah, 

Suftajah, Pillars of Ijarah 
CH7 
Partnership Contract: Legal Foundation of Musharakah, 

Classification of Shirkah (Partnership), Management of Musharakah, 

Distribution of Profit, Guarantee in Musharakah Investment, 

Termination of Musharakah 
CH8 
AlMudarabah Contract: Elements of Mudarabah, Condition of 

Mudarabah, Restrictedd Mudarabah, Guarantees in Mudarabah 

Contract 
CH9 
Deposit Contract: Definition of alWadiah, Classification of Al 

40 

Wadiah, Duties and Powers of the Mudarib 
CH10 
Agency Contract: Wakalah, Consensus of the Ummah, Legal Status of 

Kafalah, Elements of Kafalah, Conditions of Kafalah 
C. RECOMMENDED BOOKS:
1.Ajijola, A. D., (1989), Introduction to Islamic Law, (New Delhi, International Islamic Publishers)
2.Muhammad, A., (2007), Understanding Islamic Finance (Sussex: John Wiley and Sons)
3.Yousuf, s.m., (2009), An Introduction to the Theoretical Foundations of Islamic Transactions (K. L.:Ilmiah Publishers)
4.AlSabuni, M. A., (2008), Fiqh alMu’amalat (Lebanon: Al Maktabah al Asriyyah)
41
Department of Economics & Banking
Program: MSS
Course Title: Resource and Environmental Economics 
Course Code: ECON5204 
A. COURSE OBJECTIVES:
The fundamental aim of this course is to provide students with knowledge about resource economics that is related to the environment. Students will be able to understand how the environmental resources are saving the lives of the people and follow the strategies to keep the ecological balance.
B. COURSE CONTENTS:
Chapters 
Topics 
CH1 
Resource Economics: Introduction A Resource Taxonomy, 

Efficiency, Intertemporal Allocations, Allocation over N periods 

Transition to a Renewable Substitutions; Exploration and 

Technological Progress, Market allocations Appropriate Property 

Rights Structures 
CH2 
Resource Economics: Resources: Energy, Water, Agriculture, Forests 

and Wildlife. Economic Perspective of the Environment as an Asset, 

Valuing the Asset. 
CH3 
Introduction to Ecology and Ecosystem: Property Rights and 

Environment, Efficient Property Rights Structure, Scarcity Rent, 

Externalities as a Source of Market Failure, Improperly Designed 

Property Rights Systems Common Property Resources Public Goods, 

Imperfect Market Structures, Divergence of Social and Private 

Discount Rates, Government Failure The pursuit of Efficient – Private 

Resolution Through Negotiation Courts. Property Rules and Liability 

Rules Legislative and Executive Regulation an Efficient Role for the 

Government. 
CH4 
Valuing the Environment: Introduction, Benefit Cost Analysis 

Decision Rules Measuring Benefits, Use Values, Nonuse values, 

Appropriate to Cost Estimation, Treatment of Risk, Choosing the 

Discount Rate, Critical Appraisal Cost, Effectiveness Analysis, and 

Impact Analysis. 
CH5 
Coping with Environmental Pollution: Pollutant Introduction, 

Pollutant Taxonomy, Defining the Efficient allocation of Pollution, 

Fund Pollutants, Market allocation of Pollution, Efficient Policy 

Responses, and Cost Effective Policies for Emission Reduction, A 

Cost effective Allocation, Policies Emission, Standards, Emission 

42 
Charges, Transferable Emission Permits, Other Policy Dimensions.
CH6Sustainable Development: Introduction, Sustainability and Development, Market allocations, Efficiency and Sustainability, a Menu of Opportunities, Agriculture Energy Waste Reduction, Managing the Transition, Prospects of International Cooperation, Opportunities for Cooperation, Restructuring Incentives Forced Transition, Defining the Target, Institutional Structure, Administration.
CH7The State of Environment in Bangladesh: Introduction, Soil Degradation, Water Pollution, Deforestation, Water Logging—Loss of BioDiversity, Transportation, Air Pollution, Hazardous Pollutants, Ecological Changes, Natural Disaster, Poverty and Environment, A Critical Assessment of the Environmental Policies of the Government of Bangladesh.
C. RECOMMENDED BOOKS:
1.Tietenberg, T., (1994), Environmental Economics and Policy, Harper Collins College Publishers
2.Tietenberg, T., (1992), Environmental and Natural Resource Economics, Harper Collins College Publishers
3.Markandya, A.; Richardson, J., (1992), The Earthscan Reading in Environmental Economics,, , London, UK
4.Johan M.C. & Clark, C.W., (1987), Natural Resources Economics: Note and Problems, Cambridge University Press, Cambridge, UK.
5.Anthony, F.C., (1981), Resource and Environmental Economics, Cambridge University Press, Cambridge, UK.
6.Michael A.T., (1986), Depletion effects and nonrenewable and Resourcesupply” Land Economics
7.Anders, Gerhard W.Phillip Granmm, S. Charles Maurice and Chases W.W. Smithson (1980), The Economics of Mineral Extraction New York, Prager Publishers, NY, USA.
43
Department of Economics & Banking
Program: MSS
Course Title: Managerial Economics 
Course Code: ECON5205 
A. COURSE OBJECTIVES:
In today’s dynamic economic environment, effective managerial decision
making requires timely and efficient use of information. The purpose of this course is to provide students with a basic understanding of the economic theory and analytical tools that can be used in decisionmaking problems. Students who successfully complete the course will have a good understanding of economic concepts and tools that have direct managerial applications. The course will sharpen their analytical skills through integrating their knowledge of the economic theory with decisionmaking techniques. Students will learn to use economic models to isolate the relevant elements of a managerial problem, identify their relationships, and formulate them into a managerial model to which decision making tools can be applied. Among the topics covered in the course are: price determination in alternative market structures, demand theory, production and cost functions, and decision making under uncertainty. In addition, the course will provide a basic introduction to econometric analysis and its role in managerial decision making.
B. COURSE CONTENTS: 

Chapter 
Topic 
CH1 Introduction: Managerial Economics, Nature and scope, Managerial Decision Making Process (4steps procedure) Firms and Managerial ObjectivesProfit Maximization, Economic Optimization, Constraint Decision Making, Firms and Profits, Accounting Profits vs. Economic Profit, Tools of Economic Analysis, Marginal Analysis .
CH2 Demand and Supply: Concept of Demand, Individual Demand vs. Market Demand, and Mathematical Presentation of demand related concepts. Concept of Supply, Individual supply Vs. Market Supply, Mathematical Presentation of supply related concepts. Market Equilibrium Definition of market equilibrium, Determination of market equilibrium price and quantity,
Effect on market equilibrium price and quantity due to change in income or imposition of tax on seller.
44
CH3 
Elasticity: Definition, Types Price, Income and Cross elasticity of demand, Price 

Elasticity and Decision Makingby relationship among average revenue , marginal 

revenue 
and elasticity, Mathematical Problems, Income Elasticity and Decision 

Making, Mathematical Problems, Cross Elasticity and Decision Making, 

Mathematical Problems. 
CH4 
Regression Analysis: Demand Estimation: Statistical Relations and Regression 

Analysis, Measuring Economic RelationshipsEstimation of demand equation(slope 

and interceptlaw of demand and maximum demand),Estimation of MC, FC and TC 

equation, Estimation of multivariate functionsdemand function and production 

function, 
Forecasting, The Business Cycle, Time Series Trendscomponents, 

measurement of linear trend equation and growth rate and making prediction. 
CH5 
InputOutput Analysis: Introduction, Interindustry relationship, objectives of 

studying inputoutput analysis, Open model vs. closed model of input out output 

analysis, 
Assumptions of the model , Input coefficient, Input coefficient matrix, Final 

demand vs. intermediate demand, finding optimal output levels and total primary 

input requirements by inverse rule and Cramer’s rule 
CH6 
Production and Cost: Theory of ProductionDefinition of Production Function, 

Shortrun PF vs. Longrun PF, Average and marginal product concepts ,Law of 

diminishing marginal returns, optimal employment of a factor of production – 

theoretical, graphical and mathematical presentation. Optimal employment of a set of 

factors theoretical, graphical and mathematical presentation. 

Cost and Profit Analysis Concepts of TC, FC, VC, AFC, AVC, AC, MC, 

Incremental Costs and Sunk Costs. Relation between AC and MC. Finding AC 

Minimizing, AVC Minimizing, MC Minimizing Output Levels 
CH7 
Market Structure: Categories and characteristics market, Perfect Competition 

definition, characteristics, finding equilibrium price and quantity, mathematical 

presentation of breakeven, positive economic profit and shut –down, Monopoly 

Market definition, characteristics, finding equilibrium price and quantity, 

mathematical presentation, Monopolistic Competitiondefinition, characteristics, 

finding equilibrium price and quantity, mathematical presentation, Oligopolies 

definition, characteristics, finding equilibrium price and quantity, mathematical 

presentation. 
CH8 
Regulating the Market Economy: Economies of Scale, Taxes and Subsidies, Costs 

of Regulation 
CH9 
Project Decisions: Decision Making under Uncertainty: Risk Analysis 
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C. RECOMMENDED BOOKS:
1.Petersen, H.C. & Lewis, W.C., (1994), Managerial Economics, Ed. 3rd, Macmillan Publishing Company, USA.
2.Hirschey, M., (2003), Managerial Economics, Ed. 10th, Thomson/SouthWestern College Publishing.
3.Chiang, A. C., (1984),Fundamental Methods of Mathematical Economics, Ed. 3rd, McGrawHill, NY, USA.
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ECON 5206 : THESIS
The students will be required to write a Master thesis related to economics and banking. The thesis may be an empirical or descriptive work in nature but it must meet the requirement of a scientific paper which is publishable in a reputed journal. Students will be required to defend their research findings before an academic audience.
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