MSS In Economics And Banking (MEB)


Proposed Syllabus

Master of Social Science in Economics & Banking

Department of Economics & Banking

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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

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Total Cost

Tk. 65,000 for 1.5 years

 

 

Tk. 45,000 for 1 year

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Payable during admission

Tk. 20,000

 

 

 

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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

 

 

 

COMP-5201

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

 

 

 

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EVALUATION SYSTEM

The course evaluation of the program will be as follows:

Mid-Term Exam

30%

Class Participation

20%

Final Exam

50%

The evaluation of Thesis will be as follows:

 

Write-up

75%

Defense/ Presentation

25%

 

 

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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 decision-making at microeconomic as well as macroeconomic aspects.

B.COURSE CONTENTS:

ChapterTopic

Chapter-1 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.

Chapter-2 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.

Chapter-3 The Measurement of Elasticity

Concept of Elasticity, Elasticity of Demand, Various Concepts of Demand Elasticity-Price, Income & Cross Elasticity of demand, Measurement of Elasticity

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and its Uses, Elasticity and Revenue Relationship.

Chapter-4 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.

Chapter-5 Theory of Production

Production Function (PF), Short-run PF, Long-run PF, Total Product, Average Product, Marginal Product, Law of Variable Proportion: Three Stages of Production & Producer’s Rational Decision , Iso-Quant and its Properties, , Iso- Cost line and its Properties, Producer Equilibrium (Production Maximization vs. Cost minimization), Returns to Scale.

Chapter-6 Theory of Cost

Cost Function, Short Run Cost-Fixed Cost, Variable cost, Total Cost, Marginal Cost- Law of Variable Proportions, Long Run Cost- Derivation of Long-Run Cost Curve. Shape of the Short-run and Long-run Average Cost Curves. Relationships among different Average Costs and Marginal Cost. Economies of Scale and Diseconomies of Scale.

Chapter-7 Theory of Product Pricing

Concepts of Plant, Firm and Industry. Total Revenue, Average Revenue, Marginal Revenue and Profit Maximization.

Chapter-8 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 Short-run and Long-run, Normal Profit, Super Normal Profit, Loss & Shut-Down 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.

Chapter-9 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.

Chapter-10 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.

Chapter-11 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.

Chapter-12 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.

Chapter-13 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.

Chapter-14 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 .

Chapter-15 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.

Chapter-16 Inflation and Unemployment

Meaning of Inflation, Types of Inflation: Demand-Pull Inflation, Cost-Push 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.

Chapter-17 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.

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Department of Economics & Banking

Program: MSS

Course Title: Fundamentals of Mathematical Economics

Course Code: ECON-0002

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, Iso-quants- utility function- utility surface- Iso-utility 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 Input-Output 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. McGraw-Hill Kogakusha, Tokyo.

7.Allen, R. G. D., (1938).Mathematical analysis for economists (No. HB74. M3 A38). Macmillan, London.

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Department of Economics & Banking

Program: MSS

Course Title: Statistics for Economists

Course Code: ECON-0003

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 decision-making.

B. COURSE CONTENTS:

Chapters

Topics

CH-1

Introduction: Origin, Historical background, Definition, Properties,

 

Limitation and Scope of Statistics, Business Statistics.

CH-2

Data: Data, Types of data, Variable, Classification, Tabulation, Frequency

 

distribution, Construction of a frequency distribution, Graphical

 

representation, Charts and Diagrams.

CH-3

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.

CH-4

Measures of variation: Definition, Objectives, Different Measures of

 

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

 

Standard deviation, Quartile deviation, Co-efficient of variation, Best

 

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

 

and Uses.

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CH-5

Skewness and Kurtosis: Definition, Measures of Skewness,

 

Measure of kurtosis, Moment.

CH-6

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.

CH-7

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.

CH-8

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.

CH-9

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.

CH-10

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.

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CH-11

Additional Topics in Statistical Inference: t-Distribution, Chi-

 

Square Distribution, Test on a Variance, Goodness-of-fit test,

 

Tests for Independence.

CH-12

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. McGraw-Hill, 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.

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Department of Economics & Banking

Program: MSS

Course Title: Principles of Econometrics

Course Code: ECON-0004

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 Pre-requisites Statistical Concepts: Sampling Distributions-Estimation 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.

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6Non-zero Expected Disturbance and its Consequences.

7Multicollinearity: Definition – Consequences-Remedies.

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

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Department of Economics & Banking

Program: MSS

Course Title: Introduction to Islamic Economics and Banking

Course Code: ECON-0005

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

 

 

CH-1

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.

 

 

 

CH-2

Comparative Economic System: Laissez – faire economy, market

 

economy, command economy, mixed economy, differences between

 

Islamic economy and capitalist economy.

 

 

CH-3

Consumer Behavior in Islam: Some basic concepts – characteristics

 

of consumer in an Islamic economy, differences between capitalist

 

and Islamic consumer's behavior, want-utility vs. need-maslahah,

 

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.

 

CH-4

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

 

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

 

in a non-Islamic 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 need-based demand and potential capacity- based supply

 

and market mechanism.

CH-5

Trade and Commerce in Islam: Basic principles, Barter trade,

 

Monopoly business, Speculative business, International trade and

 

dumping.

CH-6

Market structure in Islam: Monopoly market and Islam–

 

characteristics of a monopolist in Islam, price-quantity 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.

CH-7

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.

CH-8

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.

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CH-9

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 socio-economic, sachet recipients, the

 

role of state in sachet collection and distribution

CH-10

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.

CH-11

Insurance and Gambling In Islam: Insurance in Islam, Is insurance

 

Un-Islamic? Difference.

CH-12

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.

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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

Chapter-1 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, Short-run Cost Function, Long-run Cost Function, Profit Maximization and Supply, Factor Demand Functions, Other Theories of

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Firm Behavior: Mark-up 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, Non-Linear 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

Chapter-7 Information Economics: Adverse Selection, Moral Hazards

C. RECOMMENDED BOOKS:

1.Mas-Colell, 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, Addison-Wesley: 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.

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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, Two-country MF Model and Interdependence,

 

International Policy Coordination.

Chapter -2 Demand for Money: Basic Issues Related to Demand for Money, Baumol-Tobin 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, Non-Accelerating Inflation Rate of Unemployment-NAIRU, 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.

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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 , McGraw-Hill, 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:

Chapter

Topic

CH-1 Review of Matrix: Matrix Inversion, Economic Application, Application to Market and National Income, Input-Output Models, Rank of the Matrix.

CH-2 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 .

CH-3 Review of Integration: Economic Application, First Order Differential Equation and Eifference Equation.

CH-4 Linear Programming and non-Linear Programming: Graphical Method, Simplex Method, Primal, Duality

CH-5 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,

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Complete and Partial Ordering.

CH-6 Functions and Mapping: Convex Sets, Quasi-Concave And Quasi-Convex Functions, Continuity of Functions, Feasible Set- Properties, Cmptiness, Closedness, Boundedness, Convexity, Restrictions on the Feasible Set (Non-empty Closed Bounded) and the Objective Function. Existence of Solution of an Optimization Problem in Economics.

CH-7 Calculus of Variations: Functional Necessary Conditions for Optimal Values, Boundary Conditions, Inter-temporal Consumption, Efficient Path of Capital

Accumulation.

CH-8 Implicit Function Theorem: Implicit vs. Explicit Function, Jacobian, Implicit Function Rule.

CH-9 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, McGraw-Hill, 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 decision-making 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 Al-Hadith- 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 Al-Murabaha, Istisna, Salam, Al-Dayn, 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. 261-276)

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, McGraw-Hill/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 trade-off 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 Non-Competitive 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., McGraw-Hill/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: ECON-5201

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 Extensions-Multiple Countries, Multiple Goods, Heckscher- Ohlin Model, Extensions-Many 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, Non-Economic 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 Sub-Regional Co-Operation- 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 Policies-Attaining 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 No-282.

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: ECON-5202

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 Systems-indicators 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. Neo-Classical view of Development: Marshall, Hicks, Myint. Institutional Views of Development: Schumpeter, Rostow, Innis and Polany. Post-Keynesian View of Development:

 

Harrod- Domar Model.

 

Chapter -3 Dualism: Social, Cultural and Political versions-Dualism: Labor,

Land and

 

Technology-Arthur Lewis, Ranis-Fei Models. Dualism:

Extensions,

 

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

 

South Korea, Taiwan, and Bangladesh.

 

CH-4

Dependency Theories: Origins and Early Views. Dependency: Transnationalism

 

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

 

Study of Dependency: Latin America-the 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: Neo-Ricardian, Unequal exchange and Dependency Theories. Critique of Neo-Recardianism 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.

Chapter-10 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: BNKG-5201

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

CH-1

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.

CH-2

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.

CH-3

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.

CH-4

Central Banking & Monetary Management in Bangladesh: Bangladesh

 

Bank Order-1972, Prudential Regulation, Monetary Policy of Bangladesh.

 

Exchange & Reserve Management: Exchange Rate Policy,

CH-5

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

CH-1 Briefly Review of Regression analysis: Simple Regression analysis & Multiple Regression analysis.

CH-2 Dummy variable regression models: Nature of dummy variables, dummy variables alternative to the chow test, Interaction effects using dummy variables.

CH-3 Heteroscedasticity: Nature of heteroscedasticity OLS estimation in the presence of heteroscedasticity, Method of GLS, Consequences of heteroscedasticity, Detection of heteroscedasticity, Remedial measures.

CH-4 Autocorrelation: Nature of the problem, OLS estimation in the presence of autocorrelation, Consequences of autocorrelation, Detection of autocorrelation, Remedial measures.

CH-5 Qualitative response regression models: Nature of qualitative regression models, Linear probability model – application of LPM, Alternatives to LPM, Logit model, Probit model & Tobit model.

CH-6 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.

CH-7 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

CH-8 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, F-test, Phillips-Perron unit root tests, Transforming nonstationary time series, Cointegration.

CH-9 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 series-ARCH & 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: COMP-5201

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: ECON-5203

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

CH-1

General Theory of Contract: Definition of Contract, Prerequisites of

 

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

 

Prohibited Elements in Shariah Contract.

CH-2

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

CH-3

Sale (Al-Bay’) Contract: Definition of Sale, Legal status of sale

 

Contract, the Required Condition of Sale Contract, Classification of

 

Sale Contract, Unlawful Sale Contracts.

CH-4

Al-Salam, Al-Istisna, Currency Exchange Contract: Bay’ Salam,

 

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

 

Istisna.

CH-5

Loan (Al-Quardh) Contract: Legality of Quardh, Quardh Contract,

 

Muzabanah Trade.

CH-6

Lease Contract and Promise of Reward: Legal Status of Ijarah,

 

Suftajah, Pillars of Ijarah

CH-7

Partnership Contract: Legal Foundation of Musharakah,

 

Classification of Shirkah (Partnership), Management of Musharakah,

 

Distribution of Profit, Guarantee in Musharakah Investment,

 

Termination of Musharakah

CH-8

Al-Mudarabah Contract: Elements of Mudarabah, Condition of

 

Mudarabah, Restrictedd Mudarabah, Guarantees in Mudarabah

 

Contract

CH-9

Deposit Contract: Definition of al-Wadiah, Classification of Al-

 

40

 

Wadiah, Duties and Powers of the Mudarib

CH-10

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.Al-Sabuni, M. A., (2008), Fiqh al-Mu’amalat‎ (Lebanon:‎ Al‎ Maktabah‎ al- Asriyyah)

41

Department of Economics & Banking

Program: MSS

Course Title: Resource and Environmental Economics

Course Code: ECON-5204

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

CH-1

Resource Economics: Introduction- A Resource Taxonomy,

 

Efficiency, Inter-temporal Allocations, Allocation over N periods-

 

Transition to a Renewable Substitutions; Exploration and

 

Technological Progress, Market allocations- Appropriate Property

 

Rights Structures

CH-2

Resource Economics: Resources: Energy, Water, Agriculture, Forests

 

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

 

Valuing the Asset.

CH-3

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.

CH-4

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.

CH-5

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.

CH-6Sustainable 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.

CH-7The State of Environment in Bangladesh: Introduction, Soil Degradation, Water Pollution, Deforestation, Water Logging—Loss of Bio-Diversity, 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.

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Department of Economics & Banking

Program: MSS

Course Title: Managerial Economics

Course Code: ECON-5205

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 decision-making 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 decision-making 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

CH-1 Introduction: Managerial Economics, Nature and scope, Managerial Decision Making Process (4-steps procedure) Firms and Managerial Objectives-Profit Maximization, Economic Optimization, Constraint Decision Making, Firms and Profits, Accounting Profits vs. Economic Profit, Tools of Economic Analysis, Marginal Analysis .

CH-2 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.

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CH-3

Elasticity: Definition, Types- Price, Income and Cross elasticity of demand, Price

 

Elasticity and Decision Making-by relationship among average revenue , marginal

 

revenue

and elasticity, Mathematical Problems, Income Elasticity and Decision

 

Making, Mathematical Problems, Cross Elasticity and Decision Making,

 

Mathematical Problems.

CH-4

Regression Analysis: Demand Estimation: Statistical Relations and Regression

 

Analysis, Measuring Economic Relationships-Estimation of demand equation(slope

 

and intercept-law of demand and maximum demand),Estimation of MC, FC and TC

 

equation, Estimation of multivariate functions-demand function and production

 

function,

Forecasting, The Business Cycle, Time Series Trends-components,

 

measurement of linear trend equation and growth rate and making prediction.

CH-5

Input-Output Analysis: Introduction, Inter-industry relationship, objectives of

 

studying input-output 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

CH-6

Production and Cost: Theory of Production-Definition of Production Function,

 

Short-run PF vs. Long-run 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

CH-7

Market Structure: Categories and characteristics market, Perfect Competition-

 

definition, characteristics, finding equilibrium price and quantity, mathematical

 

presentation of break-even, positive economic profit and shut –down, Monopoly

 

Market- definition, characteristics, finding equilibrium price and quantity,

 

mathematical presentation, Monopolistic Competition-definition, characteristics,

 

finding equilibrium price and quantity, mathematical presentation, Oligopolies-

 

definition, characteristics, finding equilibrium price and quantity, mathematical

 

presentation.

CH-8

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

 

of Regulation

CH-9

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/South-Western College Publishing.

3.Chiang, A. C., (1984),Fundamental Methods of Mathematical Economics, Ed. 3rd, McGraw-Hill, 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.

== 0 ==

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