1. Introduction ( JS 1-2, RG 1, MH 1 & 3)
1.1 The Evolution of Social Organization and Government
1.2 Organic vs. Mechanistic View of Government
1.3 The Economic Role of Government
1.4 Positive vs Normative Economics
2. Market Efficiency and Equity ( JS 3 & 5, RG3, MH 1)
2.1 The Invisible Hand of Perfectly Competitive Markets
2.2 Pareto Efficiency in Pure Exchange and Production Economy
2.3 Efficiency and Equity (First and Second Fundamental Theorems of Welfare Economics)
3 Market Failure (JS 4, RG 3 )
3.1The Nature of Market Failure
3.2 The Causes of Market Failure
4. Public Goods ( JS 6-7, RG 4, MH 2 )
4.1 The Nature of Public Goods (Pure and Impure)
4.2 Public Goods Efficiency and the Free Rider Problem
4.3 Efficient Government and Effective Regulation
4.4 Public Provision and the Privatization Debate
5. Externalities (JS 9, RG 5, MH 2)
5.1The Nature and Causes of Externalities
5.2 Private Responses to Externalities
5.3 Public Responses to Externalities (Market and Non-Market)
6. Cost-Benefit Analysis (JS11, RG 8, MH 9)
6.1 Present Value and Private Cost-Benefit Analysis
6.2 Social Discount Rate and Cost-Benefit Analysis
6.3 Valuing Public Benefits and Costs (Market and Shadow Prices)
6.4 Games Cost-Benefit Analysts Play
6.5 Distributional Considerations
7. Analysis of Expenditure Policy (JS 10, MH 6)
7.1 History of/ Need for a programme
7.2 Analysis of Market failure
7.3 Appropriate Form of government Intervention
7.4 Determination of eligibility Standards
7.5 Private Sector Responses
7.6 Distributional Consequences
8. Overview of Taxation Issues (JS 17- 20, MH 13 – 14)
8.1 The Forms of Taxation
8.2 Desirable Characteristics of a Tax System
8.3 Tax Incidence
8.4 Taxation and Economic Efficiency
8.5 Optimal Taxation
9. Systemic/Structural Biases in Developing Countries (MH 7, 11, 12 )
9.1 Economic Structure
9.2 The Distribution of Economic Power
9.3 Political Economy (Internal and External)
9.4 Perception of Intergenerational Equity
9.5 The Monetary and Financial Regulatory Framework
9.6 Understanding of Macroeconomic Resource Constraints
10. Fiscal Balance, Financing and Public Debt (JS 28, RG 20, MH 10)
10.1 Measurement and Causes of Fiscal Imbalance
10.2 Financial Implications of Fiscal Imbalance
10.3 Consequences of Financial Imbalance
10.4 The Consequences of Public Debt
10.5 Policy Implications of Public Debt
