Syllabus (ECONOMICS)

Course Type: MAJ-9

Semester: 6

Course Code: BECOMAJ09T

Course Title: Trade Policy and Public Finance

(L-P-Tu): 5-0-1

Credit: 6

Practical/Theory: Theory

Course Objective:

Learning Outcome: Course Objective: This course is prepared to give a concrete foundation on Trade policies & Public Finance. Approaches of modern trade policies and identification of features of public expenditure will create ideas regarding governance of the state among

Group A: Trade Policy (45)

1. Trade Policy: (20)
   Partial Equilibrium Analysis; Tariff-cost–benefit; Quota; Quota-Tariff equivalence & non-equivalence; Effects of tariff, quota, subsidy and voluntary export restraint; General Equilibrium Analysis; Distinction between large and small economy; Welfare effects of a tariff on small country and large country; Offer curve and ToT; Tariff ridden offer curve; Tariff war; Optimum tariff for large economy; Metzler’s Paradox.

2. Balance of Payments & Exchange Rate: (25)
Balance of Payment accounts in an open economy; Determination of National Income; Transfer problem; Introduction of foreign Country & repercussion effect; Open economy multiplier with & without repercussion effect; Fixed &Flexible Exchange Rate: Adjustment of demand and supply of Foreign Exchange; FDI and Trade; Effect of devaluation; Effects of exchange rate on domestic prices and ToT; Marshall-Lerner Condition; J-Curve effect.

Group B: Public Finance (45)

1. Public Expenditure: (30)
   Meaning and Classification of Public Expenditure; Government budget and its types; Government Expenditure and tax multipliers; Balanced budget multiplier; Fiscal Federalism in India, Indian Budgetary System.
2. Public Debt: (15) Meaning of Public Debt; Sources of Public Borrowings: Internal and external borrowing; Effects of Public Debt. Public Debt & Indian Experience

Reading References:

(Trade Policy)

• P. Krugman and M. Obstfeld, 2017, International Economics, 8^th Edition, Pearson Education.
• R. Caves, J. Frankel and R.W. Jones, 2006, World Trades & Payments: An Introduction, 10^th Education, Pearson Education.
• Rajat Acharyya, 2013, International Economics; Oxford University Press.
• Giancarlo Gandolfo, 2014, International Trade Theory and Policy, Springer.
• Anne O. Krueger, 2020, International Trade: What Everyone Needs to Know, OUP.
• S. Pan and R.K Sen, 2007, Foreign Direct Investment and Trade in India, Deep and Deep Publications Pvt. Ltd, New Delhi.
• H. Bangia, 2023, Foreign Trade Policy, Agarwal Law House.
• P.K. Rai and J. Kumar, 2021, Foreign Trade of India, Orange Books Publication, 1^st Edition.

(Public Finance)

• A. B. Atkinson and J. E. Stiglitz, 1980, Lectures on Public Economics, McGraw-Hill Inc.,US.
• C. V. Brown and P. M. Jackson, 1991, Public Sector Economics, Wiley-Blackwell; 4th Edition.
• J. F. Due and A. F. Friedlander, 1994, Government Finance-Economics of Public Sector, AITBS Publishers and Distributors.
• J. Hindriks and G. D. Myles, 2006, Intermediate Public Economics, The MIT Press; Annotated Edition.
• R.A. Musgrave and P.B. Musgrave, 1989, Public Finance in Theory & Practice, McGraw Hill Publications, 5^th edition.
• Amaresh Bagchi, Readings in Public Finance, OUP.
• J. E. Stiglitz, 2000, Economics of Public Sector, W. W Norton and Company, 3^rd Edition.
• R.J. Chelliah, 2009, Towards Sustainable Growth, OUP.
• H.L. Bhatia, 1977, Public Finance, Vikas Publishing House, New Delhi.
• A. Ghosh and C. Ghosh, 2014, Public Finance, Prentice Hall India Learning Private Limited; 2^nd Revised edition.
• S. Mukherjee, A. Ghose and R.N. Nag, 2008, Analytical Public Finance, New Central Book Agency, Kolkata.