Saturday, November 30, 2013

मज़हब की सियासी दुकानदारी

I spent 5 years of my childhood in Muzaffarnagar. Perhaps that is why the recent riots there disturbed me enough to get me to write.

Historian K.M. Ashraf's description of communalism as "मज़हब की सियासी दुकानदारी" was as poignant as it was accurate. Unfortunately, politics and administration (सियासत) remain equally responsible for communal violence today as they were in Ashraf's time.

Much of what I feel towards such such incidents has been beautifully expressed by none other than Sahir Ludhianvi himself. By writing anything else, I shall only be reducing the import of his words, and not adding to them.

धरती की सुलगती छाती के बेचैन शरारे (sparks) पूछते हैं,
ये किसका लहू है कौन मरा,
ए रहबरे (guide) मुल्को कौम बता,
ये किसका लहू है कौन मरा.

ये जलते हुए घर किसके हैं, ये कटते हुए तन किसके हैं,
तकसीम (partition) के अंधे तूफां मैं, लुटते हुए गुलशन किसके हैं,
बद वक्त खिजाएं (decay) किसकी हैं, बर्बाद नशेमन (residence) किसके हैं,
कुछ हम भी सुनें, हमको भी सुना,
ए रहबरे मुल्को कौम बता,
ये किसका लहू है कौन मरा.

किस काम के हैं ये दिन धरम, जो शर्म का दामन चाक (torn) करें,
किस तरह के हैं यह देश भगत, जो बस्ती घरों को खाक करें,
ये रूहें कैसी रूहें हैं, जो धरती को नापाक करें,
आँखे तो उठा, नज़रें तो मिला,
ए रहबरे मुल्को कौम बता,
ये किसका लहू है कौन मरा.

जिस राम के नाम पे खून बहे, उस राम की इज्ज़त क्या होगी,
जिस दीन के हाथों लाज लुटे, उस दीन की कीमत क्या होगी,
इंसान की इस ज़िल्लत के परे, शैतान की ज़िल्लत क्या होगी,
ये वेद हटा, कुरान उठा,
ए रहबरे मुल्को कौम बता,

ये किसका लहू है कौन मरा.

Sunday, August 25, 2013

A reading list for the IES (Indian Economic Service) Exam

This post if for all those appearing or planning to appear for the Indian Economic Service exam. I gave the exam in 2012 (my second attempt) and was placed 7th.

There are a total of 6 papers in this examination. Here, I have given readings only for General Economics I, II and III.

The books referred to in this reading list are the following:

  1. Pindyck and Rubinfeld - Microeconomics, 3rd edition
  2. Dornbusch and Fischer - Macroeconomics, 6th edition
  3. J.R. Gupta - Public Economics in India, Theory and Practice
  4. Chiang and Wainwright, 4th edition - Fundamental Methods of Mathematical Economics 
  5. S.C. Gupta - Fundamentals of Statistics (I think there is only 1 edition)
  6. Debraj Ray - Development Economics (only one edition)
Please keep the following in mind while using these readings:

  1. Most of the readings are from the web. A lot of them are from wikipedia and other non-scholarly sources. They are not substitutes for readings from economics textbooks. These readings should be used to brush up old concepts, if you find looking up old textbooks a bit tedious.
  2. Scores in the General English and General Studies papers are important too. Ignore these papers at your own risk.
  3. I have not included any readings for the Indian Economics paper. Two good books for this paper are The Concise Oxford Companion to Economics in India by Basu and Maertens and Indian Economy Since Independence by Uma Kapila. There's a newer edition of the book by Kapila in the market but I have not read it.
A strong word of caution: Whenever you are unsure about something, please go back to your grad/post-grad textbooks. The internet is a very convenient source, but not the most reliable.

As an afterthought, let me also mention the questions that were put to me by the interview panel:

  1. What is REER? On how many currencies is it based?
  2. Applications of Linear Programming? Leontiev input-output model?
  3. How would I estimate a demand curve for milk using time series data? What would be its shape and why?
  4. Limitations of time series data? Difference between technical and fundamental analysis?
  5. Cost benefit analysis and its applications?



Here are the readings, hope these help!

General References

The following will be helpful in finding definitions and short introductions to concepts:

Paper I

1. Theory of Consumer Demand

Relevant chapters in Rubinfeld and Pindyck

2. Theory of Production

Factors of Production and Production Functions, Forms of Production Functions: Cobb Douglas, CES and Fixed Coefficient Type, Translog Production Functions

Measures of productive efficiency of firms, technical and allocative efficiency

Partial Equilibrium vs General Equilibrium Approach
Pindyck and Rubinfeld, Chapter 16
http://www.stanford.edu/~jdlevin/Econ%20202/General%20Equilibrium.pdf (Very detailed document, need not study whole)

Equilibrium of the firm and industry

Duality and Cost Function
???


3. Theory of Value

Pricing under different market structures, peak load pricing
Pindyck & Rubinfeld, Chapter 11, Pricing with Market Power
Pindyck & Rubinfeld, Chapter 12, Monopolistic Competition and Oligopoly

Pricing with incomplete information and moral hazard problems
Pindyck and Rubinfeld, Chapter 17, Markets with asymmetric information

Public Sector Pricing
J.R. Gupta, Appendix 1, Pricing of Public Services and Return on Investment

Cross Subsidy Free Pricing: Average Cost and Marginal Cost Pricing


Marshallian and Walrasian Stability Analysis


4. Theory of Distribution

Neo Classical Distribution Theories; Marginal Productivity Theory of Distribution of Factor Prices, Factor Shares and Adding Up Problems, Euler’s Theorem

Pricing of factors under imperfect competition, monopoly and bilateral monopoly

Macro Distribution Theories of Ricardo, Marx, Kaldor, Kalecki
 ??? (Kaldor)


5. Welfare Economics


6. Mathematics

Any good book like Chiang

7. Statistics

Any good book like SC Gupta


Paper II

1. Economic Thought

Mercantilism

Physiocrats

Classical
http://www.econlib.org/library/Enc/bios/Smith.html
http://www.econlib.org/library/Enc/bios/Ricardo.html

Marxism

Neo Classical

Keynes

Monetarism


2. Concept of National Income and Social Accounting

Measurement of national income, interrelationships between three measures of national income in the presence of the government sector and international transactions.
NCERT Class XII Macroeconomics textbook, Chapter 2 - National Income Accounting

Environmental Considerations, Green National Income
See readings for Paper III, Section 2


3. Theory of Employment, Output, Inflation, Money and Finance

The Classical and Keynesian Theories
Relevant chapters in Dornbusch

Inflationary Gap

Demand Pull and Cost Push Inflation

Phillips Curve and Policy Implications

Classical Thoery of Money

Quantity Thoery, Friendman’s Restatement     


4. Financial and Capital Markets


5. Economic Growth and Development

Neo Classical Approach: Robinson, Solow, Harrod Domar Kaldor

Theories of Economic Development
Debraj Ray, Development Economics, Chapter 10 (Section on Lewis Model)

Utilitarian and Welfarist approach to social development and Sen’s Critique, Capability Approach

Human Development Index, Physical Quality of Life Index and Human Poverty Index


6. International Economics

Gains from International Trade:

Terms of Trade:

Policy:

International Trade and Economic Development:

Theories of International Trade: Ricardo, Haberler, Hekscher-Ohlin and Stopler-Samuelson

Theory of Tariffs:

Regional Trade Agreements:


7. Balance of Payments

Foreign Trade Multiplier

Multiple Exchange Rates



8. Global Institutions
Jagish Bhagwati, In Defense of Globalization, Chapter on MNCs




Paper III

1. Public Finance

Theory of taxation, optimal taxes and tax reforms, incidence of taxations

Theories of Public Expenditure, objectives and effects of public expenditure, policy and social cost beneit analysis, criteria of public investment decisions and social rate of discount:
Chapter 4, J.R. Gupta

Shadow prices of investment, labor and foreign exchange:

Budgetary deficits

Theory of Public Debt Management
J.R. Gupta, Chapter 6



2. Environmental Economics

Green GDP:

UN Methodology of Integrated Environmental and Economic Accouting:

Kyoto Protocol

Tradable Permits and Carbon Taxes

Environmental Values: User and Non-User Value, Option Value, Valuation Methods, Stated and Revealed Preference Methods

Theories of exhaustible and renewable resources

Collective Action


4. State, Market and Planning
Uma Kapila, Indian Economy Since Independence, Chapter 2
planningcommission.nic.in/aboutus/speech/spemsa/dchplan.doc (Indicative planning)