Understanding individual market, Consumer behavior and utility maximization. Application of the theory of choice; Exchange, expected utility and risk. The Economics of information; Production functions, Cost of production, Profit maximization and Alternative models of the firm. Perfect competition, Partial equilibrium models of competitive price, Information, Market adjustment and competitive equilibrium. Imperfect competition, Models of monopoly markets, Pricing in imperfectly competitive markets.

National income accounting, Business cycles, Growth and inflation. Aggregate demand, Aggregate expenditure and income, Money and interest rate, Monetary and fiscal policy. Aggregate supply; Labor market, Unemployment, Capital and economic growth. Inflation, Interest rate and Exchange rate, Public and Private deficits and debts. Topics in New macroeconomics, Economics of Keynes, New classical and New Keynesian.

Inferential Statistics, Probability, Probability Distributions, Mathematical Expectations, Estimation and Testing of Hypotheses. Regression Analysis; Introduction to Econometrics, Two Variable Linear Model, General Linear Model, Problems, resulting from violation of assumptions, Dummy variables and Distributed Lag Models

Graphical Representation; Straight Line, Non-Linear Curves, Quadratic Curves. Matrix Algebra; Determinant of a Matrix, Properties of a Determinant, Inverse of Matrices, Solution of Simultaneous Linear Equations, Characteristics Roots and Vectors of a Matrix. Differential Calculus; Limits, Derivatives, Rules of Differentiation, Higher Order Derivatives, Partial Differentiation, Optimization; Simple, Unconstrained and Constrained. Linear Programming; Graphical Solution, Simplex Method and Duality. Introduction to Integration, First Order Differential Equations, Higher Order Difference Equations

Game theory; Pay-off matrix, Nash equilibrium, Equilibrium in mixed strategies. Properties of consumer demand system, Duality in consumer theory, Separable and additive utility functions, Duality and production. Estimation of consumer demand function Estimation of system of demand equations, The linear expenditure system, Estimation of production and cost functions, Uncertainty, Expected utility maximization, Risk and insurance, Modeling of tax evasion. Dynamic optimization; Multiperiod consumption, Investment theory, Exhaustible resources, Human capital.

Advanced topics in macroeconomics. Recent issues and development in macroeconomic theory. Various macroeconomic models including the IS-LM and aggregate demand/aggregate supply framework, Tools of macroeconomics analysis to develop full understanding and to analyze critically various macroeconomics theories. Topics include income and interest rate determination, inflation, the underlying behavioral relationship embodied in consumption, saving and investment, and asset demand functions; Saving and investment in the open economy. Developments of business cycles, exchange rate determination, Economics growth and government behavior.

Review of Simple Linear Statistical Model; Estimation, Statistical Inference and Prediction. General Linear Statistical Model; Model Specification and Estimation, Derivation and Interpretation, Statistical Inference and Functional forms. Data Problem; Collinear Economic Variables, Omitted Relevant Variables, Irrelevant Variables, Measurement Error and Dummy Variables Linear Statistical Model with a General Error Covariance Matrix, Heteroscedastic Errors, An Auto-correlated Error Model. Models with Discrete Dependence Variable, Model Choice and Specification Analysis.

Issues related to problems of growth and development in developing countries. Issues initiating with the origin of Development Economics in historical perspective: Western view of the non-Western world; approaches to development; Measuring international disparities; Evolution and causes of disparities; Patterns of development; Theories of growth (neo-classical and structuralize); Empirical analysis of growth determinant; poverty, Income distribution and development; Technology choice, Capital goods industry and technological capability; Trade policies; Governments and markets in post-war development experience.

The Exchange Economy; The Edgeworth Box, Contract Curve, Pareto Efficient Allocation, Walra’s Lane, Core of the Economy, Existence of Equilibrium, Equilibrium and efficiency and Welfare theorems. The Exchange Economy with Production. Aggregation of References, Social Welfare Function, Utilitarian and Rawlsian Social Welfare Function. Efficiency of Competitive Markets, Failure of Competition, Incomplete Markets, Information Failures. Public Goods, Implications of Private Provision, Efficiency Conditions, Free Riding, Demand Revelation as Lindahl Equilibriums. Public Choice, Choice Axioms, Aggregation of Choices. The Median Voter Principle. Types of externalities, Consequences of externalities, The Coase Theorem, Private Solution to Externalities, Public Remedies.

Understanding of the key macro economics and regional issues confronted the county, Its implications on the economy and possible remedial measures and/or available policy options for adequately addressing the issues. Identification of the critical issues in Pakistan’s economy and discusses them in length, Historical evaluation of the trends followed by key contemporary problems, Public finance, International trade, Industry, Agriculture, Human resources, Poverty, Taxation/tariff reforms, Corruption, Smuggling etc.

Function of data analysis, Statistical models with feedback mechanism. Identification, Estimation, Statistical inferences, Prediction. Time series models; Stationary and Unit Roots, Co integration and Error-Correction Mechanism, Forecasting with time series models. Simultaneous Equations Models. Econometrics Application and Case studies.

Research process and scientific methods applied to problems, in Economics, Selection and definition of problem. Review of related literature, Formulation and statement of hypotheses. Preparation and evaluation of a research plan, Sources of data, Selection of sample, Sampling procedure, Questionnaire design, Field organization for collection of primary data, Data analysis and interpretation, Descriptive statistics, Inferential statistics, Preparation of research report.

The role of agriculture in the development process. Theories explaining agricultural development. Sources of agricultural growth process. Production and profit functions for agricultural outputs and production. Farm and water management. Optimization analysis and applications to agriculture. Risk analysis. Agricultural pricing policies and supply response functions. Agrarian structure and land tenure and Agrarian development process. Tenancy and agrarian reforms. Role of cooperatives and provision of physical and social infrastructure for the development of the agricultural system.

Introduction of Financial system, Consumption and investment, Investment decision, utility theory given uncertainty and choices involving risk. Portfolio selection for investment purposes in the form of securities or productive facilities. Capital asset prices, Equilibrium in a Capital asset market, Theory of optimal investment decision, Cost of capital and the theory of Firm. Market imperfections, Agency problem and Capital structure, Dividend policy, Growth and the valuation of shares, Dividend and taxes. The effects of personal taxes and dividend on capital assets prices – Theory and Empirical Evidences. Pakistan Financial System, Financial reforms in context of developing countries – Capital Market Development, Portfolio choice and new commodities – Various Studies and Experiences.

Concepts and tools of Industrial economics; Firm existence, Determinants of size and structure, Sources of finance, Ownership and control. Theories of firms; Static's, Growth and behavioral theories. Investment decisions, Advertising decision. The structure-conduct-performance framework; Industrial concentration, costs, Barriers to entry, and product differentiation. Market structures and profitability, Innovation and advertising is privatization and deregulation. State Industrial Policy; Competition Policy, Restructuring Policy and De-industrialization.

Quranic concepts of scarcity, wants and postulates of human behaviour. Islamic values, like Adl, Ihsan, Social justice, equality trusteeship. Islamic institutions, Zakat, Infaq, Nafaqat, Inheritance, property rights, lending and borrowing, Mudarbah and Musharkah, Social security, speculation, land ownership, tenure Ushr, share cropping and profit sharing. Role of markets in determination of factor prices, and its distribution between capital and entrepreneurship under Islam. Islamic regulations with regard to various market structures. Review of earlier Islamic economic systems. Analysis of economic functions of an Islamic state and major instruments to perform these functions. Islamic economics related to elimination of Riba, and Riba-e-fadl; re-organisation of stock markets, indexation, inflation, unemployment and pricing of capital.

Growth and trade. Law of comparative advantage. International equilibrium with increasing costs. The Heckscher Ohlin model, and augmented Heckscher-Ohlin-Samuleson models. Modern Theories of Trade. International factor movements and multinational corporations. Economic Analysis of tariffs and non-tariff barriers. The measurement of protection. The political economy of trade policy, transition and economic development. The theory of economic integration. Regionalism and multilateralism. International Finance and International monetary system.

Theory of taxation, Public expenditure, Theory of public goods and externalities. Background relating to the taxation structure of Pakistan alongwith a description of each major tax sources. Theory of taxation and economic efficiency, Incidence of taxes and optimal taxation. Elasticity and buoyancy of taxes, Revenue sharing, Impact of fiscal incentives, Tax evasion and black economy, The budgetary system of Pakistan and future directions of tax reforms and resource mobilization. State and Local Government.

Philosophy and methodology of Project Evaluation – a branch of applied welfare economics. Current knowledge of the economics of the public policy – what some have called “Social Cost Benefit Analysis”. Working understanding of several analytical methods, that are being used increasingly as means of choosing among alternative investment options to guide national planners. Applications of economic theory to resources management problems with a view of assessing existing and alternative resource management policies. Techniques and methods in evaluating all varieties of government activities, including investment, in the economy.

Historical and theoretical overview, Trends and development. Theory of urban residential location, Urban business location. Economic theory and housing, Demand and supply of housing, Low income housing in developing countries, Residential mobility and location behavior. Economics of transportation, Urbanization and planning in Third World, Rural urban migration, Urban informal sector in Third World. Urbanization and Environment.

The role of money in an economy. Functions of money as unit of account, store of wealth and standard or deferred payment. Commodity money and fiat money. Legal tenders, credit money, banks and other financial intermediaries. The transactions demand for money. The Quantity theory as a theory of transactions demand. Dependence of transactions balances on transaction costs and interest rates. Money as an asset. Uncertainty and risk aversion and portfolio balance. Monetary neutrality and super neutrality. The welfare costs of inflation and hyper-inflation seignior age and indexation. Budget deficit, inflationary finance and stabilization policies. The principles of financial intermediation, Banks and non-bank financial intermediaries. Controlling the supply of money. Monetary models. Real business cycle theory and stylized facts. Transmission mechanism of monetary policies. Monetary policy and Central bank independence. The term structure of interest rates. Money, interest rates and exchange rates. PPP, price levels and exchange rates. Output and exchange rates. Fixed exchange rates and currency crises. History of exchange rate systems.

What it Environmental Economics, its economic analysis. The design of environmental policy, cost and benefit analysis of environment, environment and growth, the environment as an economic and social asset, types of pollutants. Analytical tools including aggregate demand willingness to pay, the equi-marginal principal, marginal cost and supply, economic efficiency and equity, market and social efficiency and equity, market and social efficiency, external costs and benefits, pollution damages and a general model of pollution control, abatement costs, the efficient level of emission, enforcement costs. The equi-marginal principle applied to emission reductions, environmental analysis, frame work of analysis including impact analysis, cost effectiveness analysis, damage assessment, risk analysis, direct and indirect methods of willingness to pay, opportunity cost of single facilities, cost of social regulation, environmental policy including efficiency, fairness, enforceability and government failure laws, property right moral suasion, command and control strategies, incentive based strategies, such as emission charges and subsidies, economic development and the environment.

Issue involving workplace law, recruiting hiring, setting wages, evaluating employees benefits, discipline labor relations, survey of work force issues including labor force trends, diversity, compensation income distribution, productivity, labor union and human resource law issue and problem involving in union management and contract administration, laws governing the relationship between worker and their employers, laws treating labor management relation, working condition, discrimination and individual employee rights. Analysis of the current human resource issues facing workers and their managers. An examination of contract negotiations as a tool for handling problems and issue in labor management alternative to adversarial bargaining.

The course consists of three parts. The first deals with the history of economic thought. This part covers the major contributions to the theory of political economy: Smith, Ricardo, Malthus, Marx, Mill, Walras, etc. The second part of the course deals with alternative theories of growth and distribution and will provide a critique of the neoclassical theory of production and distribution. The theories covered in this part include the neo-Ricardian, Keynesian and post-Keynesian, Sraffian and neo-Marxian theories of growth and distribution. The last part of the course deals specifically with Marxian economic theory and covers the basic concepts of production, exchange, value, distribution and exploitation.

The course concentrates mainly on how economies function in practice and briefly on alternative systems of economic thought and doctrine.

 i) Market oriented economies with Japan and the U.S. representing the dominant capitalist examples;
ii) Command economies with Russia, Hungary, China, Cuba and Yugoslavia providing quite different socialist examples;
iii) The Western European and Swedish model of a welfare oriented market economy;
iv) Developing economies with strong state planning with Pakistan, India, Taiwan, South Korea etc. as examples;
v) Peripheral dependent economies in the world system.

The organization and performance of specific sectors (such as industry, agriculture and international trade) in these systems will be discussed. The course addresses issues pertaining to the dynamics of economic systems with reference to currently interesting cases like China and Poland. Implications of sudden changes in economic systems shall also be explored with Afghanistan, Iran and Nicaragua as case studies. The interlink ages between these systems through International finance markets and the international debt crises will also be discussed.

Overview of rationale for Government interventions in the economy. Magnitude and structure of government interventions in developed and less-developed countries. International experience with public enterprises. Pricing of public enterprises. Indicators and approaches to measure the performance evaluation of public enterprises. Relative efficiency of public and private enterprises performance. Public enterprise attitude towards risk. Distributional consequences of public enterprise policies.