M.Sc Courses

First Semester
  • EC500: Microeconomics
    Theory of consumer behavior, consumer demands, comparative static analysis, elasticity and consumer surplus; production theory, production functions, analysis of short and long run cost structure and economic efficiency; market structure and firm and industry equilibrium in short and long run; analysis of factor markets; general equilibrium and welfare economics.
  • EC510: Macroeconomics
    Introduction to macroeconomics and basic concepts; measurement of economic activity; the production of output and employment; consumption, saving and investment; open economy macroeconomics; long-run economic growth; the demand and supply of money; the IS-LM analysis and Classical/Keynesian model; economic fluctuations and business cycle analysis.
  • EC520: Mathematical Economics I
    Basic algebra; set theory; functions, functional forms and examples of functions in economics; vectors, matrices and linear algebra, solutions for market equilibrium and macroeconomic equilibrium; limit, continuity and differential calculus; unconstrained and constrained optimisation and applications in economics; comparative static analysis with applications in economics; integral calculus.
  • EC522: Statistics
    Descriptive measures of location. averages, dispersion, correlation and index numbers with applications in economics. probability theory, probability distributions and expectations; multivariate probability distributions and expectations, sampling and estimation; confidence interval and hypothesis testing; non-parametric statistics; Beyesian statistics.
  • EC530: Development Economics
    Theories of development; historic theories of growth and development; measures of inequality, poverty and their applications; population and development; employment and the labour market; urbanization and rural-urban migration; agricultural transformation; industrial development and small manufacturing enterprises (SMEs); human capital and productivity; environment and development nexus; trade and development nexus; the World Trade Organisation (WTO)
Second Semester
  • EC521: Mathematical Economics II
    Input-output analysis, computable general equilibrium models and linear programming; theory, measurement and application of index numbers; measurement of poverty, income inequality and concentration; difference equations, differential equations and dynamic optimization; business cycles and economic growth models.
  • EC523: Econometrics
    Theoretical regression function, two variable regression model, ordinary least squares estimation and statistical inference, multiple regression model, specification problem, qualitative variables, multicollinearity, autocorrelation, heteroscedasticity, time series econometrics, simultaneous equations .
Third Semester
  • EC501: Microeconomic Analysis
    Axiomatic approach to consumer theory, properties of demand systems and empirical models of consumer demands; production sets and production function; cost, revenue and profit functions, input demands and output supply functions and empirical models of firms’ behavior; risk, state dependent preferences and economics of information.
  • EC511: Macroeconomic Analysis
    The theory of economic growth; rational expectations; real business cycle theory; traditional Keynesian theories of fluctuations; new Keynesian theories; consumption; investment; government debt and ricardian equivalence; inflation and monetary policy; and unemployment.
Fourth Semester
  • EC502: General Equilibrium & Welfare Economics
    Existence, uniqueness; and stability of multi-market equilibrium; technical and allocative efficiency and core, of exchange economy; social welfare function, income distribution and compensation principle; theory of second best; applications in public sector economics and international trade.
  • EC595: Oral Examination
    No fixed contents
  • EC596: Applied Economics
    Writing skills for economics research, trends and the current state of Pakistan’s economy, descriptive analysis of macroeconomic and microeconomic data, applications of econometric techniques in economics (data collection, estimation and interpretation of economic relationship), research paper containing original research
  • EC597: Research Essay
    No fixed contents
    You have to choose either EC596: Applied Economics OR EC597: Research Essay


Optional M.Sc. Courses by Area of Specialization

Agriculture and Resource Economics
  • EC570: Agricultural Economics I
    Role of agriculture in economic development; technical change in agriculture and the green revolution; employment in agriculture; land tenure systems and land reforms; irrigation and water management issues; agricultural input prices; support and procurement prices; agriculture and environment; agriculture and trade negotiations
  • EC571: Agricultural Economics II
    Production functions; cost functions, profit functions; technical change and its measurement; multi-output techniques; commodity market intervention; price supports and factor markets; distribution consequences of policies
  • EC572: Natural Resource Economics
    Non-renewable and renewable natural resources; imperfect competition in natural resource markets; optimal allocation of scare natural resources; economic valuation and evaluation; hedonic models; input-output analysis, technology and environment; computable general equilibrium (CGE) models and natural resources; natural resource accounting
  • EC573: Environmental Economics
    Benefits and costs of environmental resources; economic efficiency and equity in market for environmental resources; external costs and benefits; environmental pollution and control mechanisms; environmental impact analysis, economic impact analysis; benefit-cost frame work of environmental analysis; criteria for evaluating environmental policies; property rights and moral suasion; command and control strategies and the case of standards; incentive bases strategies and emission taxes and subsidies; global environmental problems; role of international environmental treaties in control of global pollution
  • EC574: Energy Economics
    Basic concepts; structure of energy supply systems; markets; investment decision making techniques; dealing with risk in energy markets; internalizing externalities in energy supply; cost-benefit analysis; taxation of the energy sector; public enterprises and energy supply; natural monopolies in the energy sector; open access and the regulation of monopoly; the economics of renewable energy
Business and Finance
  • EC555: Business Economics
    Role and functioning of business firms in the economy; application of economic theory to firms business decisions; mechanism of economic control of business; government regulations and the behavior of business firms
  • EC556: Managerial Economics
    Estimation and forecasting of demand; pricing and output decision; market structure; competitive market under asymmetric information; game theoretic oligopolistic pricing; yield management; risk management; government regulations
  • EC557: Financial Theory and Capital Markets
    Theoretical and empirical examination of saving investment and financing; asset structures; stock prices; interest rates; financial intermediaries; speculation and interrelationships of financial and real variables in the economy
  • EC558: Corporate Finance
    Economic foundations of finance; cooperate financial decision making; valuation of financial securities; risk and diversification; capital structure; dividend policy; optional pricing; future markets; mergers; applied issues in corporate finance
  • EC559: International Finance
    Exchange rate regimes, spot and forward exchange markets, risk and hedging; balance of payments and exchange rate equilibrium; nominal, real and effective real exchange rates and purchasing power parity; macroeconomic equilibrium in open economy and alternative approaches to the analysis of balance of payments equilibrium
Development Studies
  • EC531: Development Policy
    Debt crisis and a new role for the World Bank and the IMF; miracle growth and economic crisis in East Asia; the WTO and the new round of talks; regional trading blocs; foreign finance, investment and aid; poverty and income distribution; smuggling and development; privatization in developing countries and lessons learned; globalization and changing role of the state; and environment and sustainable development.
  • EC532: Poverty and Income Distribution
    Alternative concepts of poverty and equity; issues in the measurement of poverty and income distribution; the role of public sector and non-public entities in poverty reduction and equity; measures of tax progression and tax progressivity; poverty and inequality in global context; empirical literature on Pakistan and other less developed countries.
  • EC533: Sustainable Development
    Development versus sustainable development; introduction to Agenda-21 and Rio Earth Summit; non-renewable and renewable resources and the need for their sustainable use; environment and sustainable development nexus; strategies for sustainable development in agriculture; sustainable development in industry; international treaties on sustainable development; community development.
  • EC535: Political Economy
    Link between economics and politics; economic equilibrium in a society; gains from multilateral exchange; classical market theory and economic policy; Marxian political economy; government intervention in the market and growth of public sector; fiscal federalism; economics of international political economy; international economic competition; globalization and the world economy; international economic system and issues
  • EC536: Political Economy of Pakistan
    Introduction and basic theory of political economy; rural elite and agricultural development in Pakistan; the pattern of adoption of new technology; technical change and social polarization; urban elite and industrial development; development of small and large scale industry and the role of State; political economy of foreign aid, its motivation for donors and recipients and effects on the economy of debt; globalization and its effects on the economy of developing countries like Pakistan
  • EC537: History of Economic Thought
    The medieval economic system; mercantilism; the Physiocrats; the classical economics; Marxian tradition; Marginalism; New classical economics; Keynesian revolution; methodological divisions in economics since Keynes; and special topics
  • EC538: Economic Issues in Pakistan
    Pakistan’ development experience; agricultural development, agricultural pricing policies and rural development; industrial development; policy and issues; the employment problem and issues; resource mobilization in Pakistan, problems and prospects; issues in internal and external migration; informal sector; evolution or involution; income distribution and poverty in Pakistan; foreign aid and debt burden; privatization in Pakistan
Economic Systems and Institutions
  • EC540: Comparative Economics Systems
    Historical development of capitalism; definitional problems; behavioral hypotheses of entrepreneurs; free enterprise and its implications; command economy; administrative hierarchy
  • EC541: Islamic Economics
    Meaning of Islamic economics; difference with western and socialist economics; features of Islamic economic system; concept of ownership and its limitations; guiding principle for consumption, production, investment commerce and trade; institution of zakat and its social and economic implications; interest free banking; and the concept of equitable distribution
  • EC542: Institutional Economics
    The role of institutions in economic growth and development; comparative analysis of the (original) Institutional Economics and New Institutional Economics; law and economics; issues in economic organization, international arrangements, contracting, transactions and regulations
  • EC543: Law and Economics
    Application of economic analysis to the law; property rights, taking the Coase Theorem; the economics of regulation; crime and punishments; liability law; and public choice; from contract law, law of corporations merger/takeovers, personal and corporate bankruptcy
International Economics
  • EC545: International Trade Theory
    Theory of comparative advantage; factor endowments, factor intensities and trade; factor price equalization theory; increasing returns, monopolistic competition product differentials and international trade; inter-industry and intra-industry trade; tariffs, quotas, subsidies and other trade related taxes under alternative market structures; theories of dumping; theories of trade, factor movements and economic growth; theories of regional trading blocks
  • EC546: International Trade Policy
    Commercial policies, their objectives and impacts; preferential trading agreements; regional cooperation and trade diversion; trade policies and developing countries; tariffs and national welfare; trade control policies and their impacts on welfare; trade policies for international external balance; role of UNCTAD and emergence of the WTO; dimensions of trade policies in Pakistan
  • EC547: Open Economy Macroeconomics
    Equilibrium analysis of goods and assets markets and the balance of payments; monetary and fiscal policies in an open economy; exchange rate regimes and optimal intervention in assets markets; capital movements, technological externalities, economic growth and convergence hypothesis; resource gaps, internal and external borrowings and debt dynamics
  • EC548: International Monetary Economics and Financ
    Balance of payments; foreign exchange markets and exchange rates; adjustment mechanism; open economy macroeconomics and adjustment policies; elasticity and absorption approaches to BOP; supply and demand for foreign exchange; commodity trade and the foreign exchange market; flexible exchange rate system and stability of equilibrium in spot market; and international monetary system and reforms
Labour and Population
  • EC560: Labour Economics I
    Overview of the labor market and labor market indicators; demand for labor; supply of labor and household production; investment in human capital; education and training; worker mobility and migration; the structure of wages and trade unionism
  • EC561: Labour Economics II
    Discrimination in the labor market and group differences by gender, race and ethnicity; compensating wage differentials; human capital theory and economics of the family; issues of unemployment and social protection; efficiency wage theories and co-ordination failure; labor market statistics and labor market information system (LMIS); labor policies and labor legislation in Pakistan
  • EC562: Human Resource Development
    Economic growth and human resources; human capital model and empirical evidence; health/nutrition and productivity; international and internal migration; human development index; measurement and evolution; review of human development frameworks in human development reports; comparative human development experience with special emphasis on Pakistan
  • EC563: Population Economics
    Economics of the population; Malthusian theory and population dynamics; demographic composition of the population; age and gender structure; fertility; quantity/quality trade-offs and female employment; mortality and economics of ageing; record of Pakistan’s experience with population policies
Macroeconomics/Monetary Economics
  • EC512: Dynamic Macroeconomics
    Construction and analysis of dynamic models of macroeconomic and monetary phenomenon with focus on non-linearity, multiplicity of equilibrium, and indeterminacy; stability and instability of macroeconomic equilibrium in linear and non-linear models in both continuous and discrete time; classical and Marxian accumulation models with multiple indeterminate, cyclical and chaotic equilibrium paths; non-linear stability, bifurcation theory, dynamic stochastic optimization techniques.
  • EC513: Economic Growth
    Harrod-Domar growth model, neo-classical growth theory, two sector growth models, Cambridge growth controversy, technological change in neo-classical and Cambridge setting, models of endogenous growth, human capital knowledge and externality in growth.
  • EC516: Monetary Economics
    Definition of money and monetary aggregates; the theories of money demand; determination of money supply; role of money and monetary policy in macro models; conduct of monetary policy (goals, instruments, targets and indicators) and the central bank; issues of central bank autonomy; monetary policy experience in Pakistan.
  • EC517: Monetary Policy
    Objectives, instruments, targets and indicators of monetary policies, rules versus discretion debate on monetary policy (Classical, Keynesian, Monetarists, New-Classical and New-Keynesian views), monetary policy in an open economy and optimal money market intervention, role of monetary policy in growth, monetary policy experience in developing countries.
  • EC518: Money, Banking and Finance
    Overview of the financial system; role of financial institutions (banking and non-banking) and the central bank in financial markets; determination of interest rates and the yield curve; financial assets and rates of return; international financial markets and the domestic financial sector (institutions and policies); issues of financial regulation.
Mathematical/Quantitative Economics
  • EC524: Econometric Analysis
    General linear regression model, ordinary least squares method and summary statistics; generalized least squares and maximum likelihood estimation; dummy variables and structural shifts; non-linear models and estimation algorithms; panel data, seemingly unrelated equations and simultaneous equations; estimation with limited dependent variables, data censuring and selectivity bias.
  • EC525: Econometric Forecasting
    Concepts of stationarity; analysis of stationary and integrated data generating processes; stochastic difference equations and unit root analysis; ARMA models, forecasting and time series decomposition; analysis and decomposition of forecast errors; ARCH models and risk-return analysis; V AR models, causality, impulse response analysis and multivariate decomposition; co integration and error-correction analysis.
  • EC503: Game Theory
    Definitions and rules of games; games in normal and extensive forms; games with perfect, certain, symmetric and complete information; mixed and continuous strategies; dynamic games with symmetric and, symmetric information; hidden action, hidden information, moral hazard and adverse selection; principal agent models and signaling; bargaining, auction and industrial organization.
  • EC504: Industrial Economics
    Overview of market 1tructure, models of oligopoly and monopolistic competition; co-operative and non-co-operative oligopolies, product differentiation, non-price competition and strategic behavior; monopoly power and price discrimination; information, advertising and disclosure; externalities, scale and scope economies, vertical integration and technological change.
  • EC505: Industrial Organization
    Scope and methods; structure, conduct and performance; welfare economics of competition and monopoly; determinants of market structure; economic theories of oligopoly pricing; price discrimination monopoly and oligopoly structure; induced innovations and patenting; take-over, franchising, product variety; administered prices and macroeconomic stability; Product differentiation, market structure and competition; industrial location choice; policy towards monopoly and oligopoly.
  • EC506: Production Economics
    Cobb-Douglas production function, CES function, non-flexible and flexible functional forms; duality and flexible functional forms, Generalized Leontief cost function, the translog specification, and measuring total factor productivity, applications to real world data.
  • EC507: Consumer Demand Models
    Consumer optimization problem; demand systems under alternative optimizing behaviors; firms input demands and output supply systems under alternative market structures empirical models of consumer and producer theory; econometric issues in applied microeconomics in time series and cross section data; reparability and aggregation.
Other Courses
  • EC590: Internship in Economics
    Credit will be granted for a full-time internship of at least 8 weeks (during summer vacations) that enriches a student’s academic experience and/or allows him/her to explore careers related to his/her academic studies. Internship credit is not retroactive and must be prearranged with the Chairman, Department of Economics. The student must provide verification on company letterhead of the internship (after completion). The grading for internship will be done by the Chairman in association with other faculty on the basis of the written report by the student on his/her internship and evaluation report of the company
Public Sector Economics
  • EC550: Public Economics
    Role of public sector in economics; theories of public goods, externality and congestion; distribution, equity and economic welfare; politics of social choice, benefit-cost analysis and public expenditure evaluation principles; positive and normative analysis of taxation; informal and black economy
  • EC551: Fiscal Policy
    Role of public sector in macroeconomics stability, economic growth, poverty reduction and equity; overlapping generations models, social security pensions and governments bonds, analysis of budget deficits, internal and external borrowings and debt dynamics
  • EC552: Cost-Benefit Analysis and Project Evaluatio
    Techniques of cost-benefit analysis of investment projects; uses of shadow prices; problems of estimating benefits in highway, irrigation, power and other projects; measurement of benefits and costs; alternative basic criteria for cost-benefit analysis
Urban Economics
  • EC565: Urban Economics
    Urbanization; urban system analysis; provision of urban social and public services; role of small and intermediate cities in national development; optimal size of cities; rural economy crises; migration and linkages; urban form; national urban development strategy
  • EC566: Regional Economics
    Spatial and economic structures of regions and regional economic development; measurement of regional economic activity; theories of location of industries; theories of inter-regional economic growth; regional policy alternatives
  • EC567: Transport Economics
    Transport and economic development; costs of congestion; road congestion; its measurement theories and applications; theories of economic regulation in transport industries; public interest and internal group or capture theories of transport subsidies; Pareto optimality and the problem of second-best in transport subsidies
  • EC568: Health Economics
    Positive and normative analysis of health care market; insurance, information asymmetry, moral hazard adverse selection and principal-agent issues in health economics; issues in benefit-cost analysis of health care sector, health care planning and the role of public sector, health human capital development and economic growth