Department of Economics & Statistics

Faculty of Arts, University of Peradeniya

Undergraduate Programme

Bachelor of Arts (B.A.) Special Degree in Economics offered by the Department of Economics and Statistics is well renowned both locally and globally. We are delighted to say that the top positions at most of the prestigious local and international institutions are held by past graduates of our Department.

In a given academic year, over 1000 undergraduates of the university including both Special Degree and General Degree students follow the courses offered by the Department. The Special Degree in Economics is the most competitive, most popular and frequently updated degree programme in the Faculty of Arts. Each academic year, around 80 second year students (in all three media) are selected for the Special Degree programme. In addition, many students following the General Degree Programme choose Economics as one of their main disciplines. Students intending to read for the Special Degree in Economics, or to follow Economics as one of the main disciplines of their General Degree, are required to follow Introductory Microeconomics (ECN 1001), Introductory Macroeconomics (ECN 1002), Basic Mathematics (ESS 1001) and English during the first year. Selection for the Special Degree is based on their performance in these subjects.

Academic programme for 2019/2020 Click here


Courses for BA Special Degree and General Degree Programmes


1000 Level

Credit: 3 | Prerequisites: None | Compulsory/Optional: Compulsory


Description:
Introduction to economics: decision making (utility maximization, PPF and opportunity cost marginal benefit vs. marginal cost and ethics components such as motivations), scarcity, choice and economic systems; demand, supply and equilibrium; markets and government; elasticity: application of supply and demand; production and cost, how firms make decisions: profit maximization; market structure: efficiency and market failure; factor of production markets and income distribution; introduction to game theory and information economics; application of economics: transport, tourism, agriculture, environment, education, health, crime, discrimination, poverty and inequality.


Time Allocation (Hours): Lectures: 30 ; Tutorials: 15 | Assessment: In-course: 40% ; End-semester: 60%

Credit: 3 | Prerequisites: None | Compulsory/Optional: Compulsory


Description:
Introduction to Macroeconomics; Measuring National Income; Circular Flow of Income: Closed and Open economy Models; Determination of Equilibrium level of National Income; Introduction to Business Cycle, Economic Growth, Unemployment, Inflation; Macroeconomic Policy: Fiscal and Monetary; Money: Properties of Money, Demand for Money, Supply of Money; Quantity theory of Money; Introduction to Central Banking and Commercial Banking; Introduction to International Trade and Finance.


Time Allocation (Hours): Lectures: 30 ; Tutorials: 15 | Assessment: In-course: 40% ; End-semester: 60%

Credit: 3 | Prerequisites: None | Compulsory/Optional: Compulsory


Description:
This foundation course will expose students to the abstract nature of mathematics; mathematics as a language; mathematics and logical reasoning; real numbers; variables; conceptual framework of lemma, theorem, law, proposition, axiom; relations and functions; algebra; scientific notation and factoring, solving linear equations and inequalities, transformations; graphical representation of linear and non linear relations; basic coordinate geometry; basic probability; basic trigonometry; basic introduction to limits, differentiation and integration.


Time Allocation (Hours): Lectures: 30 ; Tutorials: 15 | Assessment: In-course: 40% ; End-semester: 60%

Credit: 3 | Prerequisites: None | Compulsory/Optional: Compulsory


Description:
This course focuses on computer systems: components of a computer system, classification of hardware, functionality of major hardware components, classification of software, efficient use of computers, future trends; Operating Systems (OS): role of operating systems, types of operating systems, command line interfaces, GUI interfaces, open source and proprietary OS, file management; word processing: open source and proprietary word processing software, text formatting, image formatting, single level and multi-level lists, tables, SmartArt and shapes, document formatting, mail merge, printing; and spreadsheet software: open source and proprietary spreadsheet software, worksheets, cell reference and formatting, functions and formulas, sorting and filtering, conditional formatting, charts, data validation, printing; presentation software: open source and proprietary presentation software, slide layouts, formatting slides, slide transition, custom and animation motion paths, hyperlinks, slide master, printing; computer networks: introduction to computer networks, advantages and disadvantages of networks, types of networks, network topology, client and server computers; internet and email: introduction to internet and email, web browsers, personalizing web browsers, searching, resources available on internet; and web development: introduction to web development, introduction to HTML, basic web page formatting, and single level and multi-level lists.


Time Allocation (Hours): Lectures: 30 ; Tutorials: 15 | Assessment: In-course: 40% ; End-semester: 60%

Credit: 3 | Prerequisites: None | Compulsory/Optional: Compulsory


Description:
This course covers the topics of basic statistics including an introduction to social statistics; data – quantitative, qualitative and scale; methods of data collection (including survey and questionnaire designing); data analysis: descriptive techniques (graphical and numerical); concepts / principles of probability; introduction to random variables and distributions (discrete only).


Time Allocation (Hours): Lectures: 30 ; Tutorials: 15 | Assessment: In-course: 40% ; End-semester: 60%


2000 Level

Credit: 3 | Prerequisites: ECN1001 | Compulsory/Optional: Compulsory Course for Economics Honours and General Degree


Description:
Theory of Consumer Behaviour: Cardinal Utility Approach; Ordinal Utility Approach; Application of Indifference Curve Analysis; The Revealed Preference Hypothesis; Theory of Production with One Variable; Theory of Production with Two Variables; Theory of the Cost of Production; Modern Theory of Cost; Theory of the Firm and Production; Price and Output Determination under Perfect Competition; Price and Output Determination under Monopoly; Price and Output Determination under Monopolistic Competition; Game Theory and Applications; Factor Price Determination; Wage Determination; Theory of Profit; Market Failures; Externalities and Public Goods.


Time Allocation (Hours): Lectures: 30 ; Tutorials: 15 | Assessment: In-course: 40% ; End-semester: 60%

Credit: 3 | Prerequisites: ECN1002 | Compulsory/Optional: Compulsory Course for Economics Honours and General Degree


Description:
Commodity market and IS curve; Money market and LM curve; IS-LM model and macroeconomic policies; IS-LM model and Aggregate Demand (AD) curve; Resource market and short-run and long-run Aggregate Supply (AS) curves; AD-AS model and analysis of monetary and fiscal policies; Consumption function hypotheses: Absolute Income; Permanent Income; Relative Income; and Life-Cycle Income; Investment models: Classical; Keynesian and Neo-classical. Inflation-unemployment trade-off.


Time Allocation (Hours): Lectures: 30 ; Tutorials: 15 | Assessment: In-course: 40% ; End-semester: 60%

Credit: 3 | Prerequisites: ESS1001 | Compulsory/Optional: Compulsory


Description:
Differential Calculus: Introduction to Differentiation; Limits; Derivative; Rules of Differentiation; Higher order Derivatives; Implicit Differentiation; Uses of the Derivative: Concavity and Convexity; Relative Extrema; Optimization of Functions; Marginal concepts; Optimizing Economic Functions; Multivariable Functions: Rules of Partial Derivatives; Second order Partial Derivatives; Optimization of Multivariable functions; Constrained Optimization; Total and Partial Differentials; Total Derivatives; Implicit Functions; Multivariable Functions in Economics: Optimization; Constrained Optimization; Exponential and Logarithmic Functions.


Time Allocation (Hours): Lectures: 30 ; Tutorials: 15 | Assessment: In-course: 40% ; End-semester: 60%

Credit: 3 | Prerequisites: ESS1005 & ESS1001 | Compulsory/Optional: Compulsory


Description:
Data Analysis-Descriptive measures: Frequency distribution/Measures of Central tendency/ Dispersion/ Skewness/ Kurtosis/ Measures of relative standing using summation and product operators; Exploratory Data Analysis - Stem and Leaf and Box Plot; Introduction to measures of association; Random variables and probability distribution – Univariate case (discrete and continuous distributions); Index numbers; and Introduction to time series analysis and forecasting (Univariate case); Application of relevant Statistical Software packages.


Time Allocation (Hours): Lectures: 30 ; Tutorials: 15 | Assessment: In-course: 40% ; End-semester: 60%

Credit: 3 | Prerequisites: None | Compulsory/Optional: Compulsory Course for Economics Honours and Optional for other disciplines


Description:
The course will emphasize the simultaneous presence of diverse theoretical positions on which empirical analyses and policy formulations are based. It will also examine the different epistemological approaches in social and economic theory.Contents: Classical political economy: economic thought before Adam Smith; Adam Smith's wealth of nations; Robert Malthus; David Ricardo; Post-Ricardian Economics; Contradictions in the system: John Stuart Mill; Contradictions of modernity; Marxian Economics; Neoclassicism and its critics: Marginalism; crisis of neo classical theory and a paradigm shift; Political economy of development: Economic Development in the History of Economic Thought Development Economics and its Critiques


Time Allocation (Hours): Lectures: 30 ; Tutorials: 30 | Assessment: In-course: 40% ; End-semester: 60%

Credit: 3 | Prerequisites: ESS1001 and ECN2003 | Compulsory/Optional: Compulsory


Description:
Integral Calculus: Introduction to Integration; Indefinite and Definite Integral; Rules of Integration; Initial/Boundary Conditions; Applications in Economics; Fundamental Theorem of Calculus; Area under Curve; Area between Curves; Applications in Economics; Integration by Substitution; Integration by Parts; Integration by Partial Fractions. Improper Integrals; Double Integrals. Matrix Algebra: Introduction to Matrices; Types of Matrices; Matrix Operations - Addition; Subtraction; Scalar Multiplication; Multiplication of Matrices; Determinants of Matrix; Matrix Inversion; Solving Simultaneous Equation Systems; Applications in Economics. Other: Introduction to Differential Equations; Introduction to Difference Equations.


Time Allocation (Hours): Lectures: 30 ; Tutorials: 15 | Assessment: In-course: 40% ; End-semester: 60%

Credit: 3 | Prerequisites: ESS1005 and ECN2004 | Compulsory/Optional: Compulsory


Description:
Probability distribution - bivariate - discrete and continuous distribution (joint/ conditional/marginal); Mathematical expectations - conditional expectations; variance; conditional variance; covariance; Moments; Measures of association (Theoretical); Theoretical Probability distributions; Discrete case - Bernoulli trials; Binomial distribution; Poisson distribution; Continuous case - Uniform ; Exponential; Normal; Standard normal; Student's t; Chi-Square and F distribution; Approximations to selected probability distributions; Sampling distribution theory; Law of large numbers and central limit theorem; and Statistical inferential theory: Estimations and Hypothesis testing.


Time Allocation (Hours): Lectures: 30 ; Tutorials: 15 | Assessment: In-course: 40% ; End-semester: 60%

Credit: 3 | Prerequisites: ECN2002 | Compulsory/Optional: Compulsory Course for Economics Honours and Optional for other disciplines


Description:
Topics include: Methodology of Applied Economics - Inductive vs. deductive approaches; Sri Lanka's post-independence economic development - External Environment; Policies; Outcomes and Recurring Themes; Trade; FDI and Balance of Payments; Macroeconomic management: Monetary and Fiscal Policy; The Labor Market; Inflation - Sources; Measurement and Policies; Poverty and Inequality; Rural; urban and regional development; Sector-wise issues - Agriculture; Industry; Services; and Economic development - Current and Prospective Challenges


Time Allocation (Hours): Lectures: 30 ; Tutorials: 15 | Assessment: In-course: 40% ; End-semester: 60%

Credit: 3 | Prerequisites: ESS1004 | Compulsory/Optional: Compulsory Course for Economics Honours and Optional for other disciplines


Description:
Topics include: Introduction to DBMS: Definition of a DB; Database Management Systems; components of a DB; ER Diagrams: Entities; attributes; cardinality; converting E-R diagrams into table structures; Integrity Constraints; Forms and Reports: using forms to enter data; use of reports to present; data Queries; Introduction to SQL; Data Normalization: 1NF; 2NF; 3NF; advantages of data; normalization; Importing and exporting data into and from a database; Applications of DB's in Social sciences.


Time Allocation (Hours): Lectures: 22.5 ; Tutorials: 22.5 | Assessment: In-course: 40% ; End-semester: 60%


3000 Level

Credit: 3 | Prerequisites: ECN2001 | Compulsory/Optional: Compulsory


Description:
Consumer Theory: Choice; Preferences; Utility; Demand; Revealed Preferences; Comparative Statics; Consumer Surplus; Aggregation; Variations to the basic choice model (Time and Uncertainty); Producer Theory: Technology; profit maximization; Cost Minimization; Supply; Aggregation; Markets: Monopoly; Oligopoly and Game Theory; Walrasian Equilibrium; Market Failures: Externalities; Public Goods; Small Number of Agents.


Time Allocation (Hours): Lectures: 30 ; Tutorials: 15 | Assessment: In-course: 50% ; End-semester: 50%

Credit: 3 | Prerequisites: ECN2002 | Compulsory/Optional: Compulsory Course for Economics Honours and General Degree


Description:
Open Economy Macroeconomics; Aggregate Supply and Aggregate Demand; Aggregate Supply and the Phillips Curve; Unemployment; Inflation; Long run Economic Growth; Business Cycles; Modern Developments in Macroeconomics; Macroeconomic Policy


Time Allocation (Hours): Lectures: 30 ; Tutorials: 15 | Assessment: In-course: 40% ; End-semester: 60%

Credit: 3 | Prerequisites: ECN2001 and ECN2002 | Compulsory/Optional: Compulsory Course for Economics Honours and General Degree


Description:
The first part of the course uses standard tool of microeconomics and provides an introduction to the classical theories of international trade; neoclassical trade theories; the Hecksher-Ohlin model; and extensions to the Heckscher-Ohlin model. The course also examines instruments of trade policy; basic tariff analysis and other trade instruments including import quotas and Voluntary Export Restraints. Part two covers topics in international finance; including the balance of payments; exchange rate regimes; international capital flows; sovereign debt; and currency and financial crises. The course concludes with an introduction to globalization and the functions of major global economic institutions.


Time Allocation (Hours): Lectures: 30 ; Tutorials: 15 | Assessment: In-course: 40% ; End-semester: 60%

Credit: 3 | Prerequisites: ECN2004 and ECN2014 | Compulsory/Optional: Compulsory


Description:
Overview of the research process; Scientific research; Research proposal formulation; Literature review; Introduction to reference styles; Research design; Sampling techniques; Levels of measurement; types of data and sources; Indexes and Scales; Primary data collection; Designing a questionnaire; Ethics in Research; Scientific Writing; Introduction Qualitative and Quantitative Data Analysis; Data analysis using statistical software - STATA: (file maintenance; generating variables and managing data; data analysis); Preparation of reference lists; writing effective reserch proposals and research reports


Time Allocation (Hours): Lectures: 30 ; Tutorials: 15 | Assessment: In-course: 40% ; End-semester: 60%

Credit: 3 | Prerequisites: ECN2003, ECN2004 and ECN2014 | Compulsory/Optional: Compulsory


Description:
The course covers the fundamentals of regression theory with a primary focus on simple and multiple linear regression models. Topics include: What is Econometrics? The structure of Economic data; Introduction to regression analysis: Simple linear regression model (SLR); Estimation methods: OLS; Sampling distributions; Properties of OLS Estimators; Hypothesis testing in regression Analysis; Prediction; Transformation; Functional forms; Software applications; Multiple regression model; estimation; Hypothesis testing; Dummy variables in regression models.


Time Allocation (Hours): Lectures: 30 ; Tutorials: 15 | Assessment: In-course: 40% ; End-semester: 60%

Credit: 3 | Prerequisites: ECN1001 and ECN1002 | Compulsory/Optional: Compulsory Course for Economics Honours and Optional for other disciplines


Description:
Topics include: The economic role and activity of the government: mechanistic and organic view of the government; rationale for government intervention; Fundamentals of welfare economics; market efficiency; market failure; efficiency and equity. Analysis of public choice; political economy: direct democracy and representative democracy. The functions of government: provision of public goods: education; health; transport; and infrastructure; characteristics and choice of public goods; Efficient provision of public goods; Externalities in consumption and production: Externalities and public policy; Private and public responses to externalities. Income distribution and welfare policies; public enterprises and their price determination; alternative methods of public finance such as bond financing and pay attention to SL public policy issues


Time Allocation (Hours): Lectures: 30 ; Tutorials: 15 | Assessment: In-course: 40% ; End-semester: 60%

Credit: 3 | Prerequisites: ECN3024 | Compulsory/Optional: Compulsory


Description:
Multiple regression model; asymptotic properties of OLS estimator; hypothesis testing; testing restrictions on the model; testing stability of the model; use of interactive dummy variables in regression models; testing restrictions on the model; diagnostic testing for multicollinearity; heteroscedasticity; autocorrelation and specification error; consequences and remedies for violation of regression assumptions; simultaneous equation models; 2SLS; introduction to Panel data Regression Model: the Fixed and the Random effects models; binary choice models: linear probability; Probit and Logit models; introduction to stationary time series data analysis; Introduction to ML and GMM Estimation.


Time Allocation (Hours): Lectures: 30 ; Tutorials: 15 | Assessment: In-course: 40% ; End-semester: 60%

Credit: 3 | Prerequisites: None | Compulsory/Optional: Compulsory Course for Economics Honours and Optional for other disciplines


Description:
Introduction to environment and natural resource: Concepts and types; renewable and non-renewable resources. Management models: public participation; protected areas; ecosystem based management and adaptive management. Fundamental rules of renewable resource exploitation and management; fundamental rules of non-renewable resource exploitation and management. Environmental management policies- decentralized policies: liability laws; property rights; moral suasion; command-and-control strategies: the case of standards. Incentive-based strategies: emission charges and subsidies; transferable discharge permits; Market-based instruments: tradable permits. Challenges towards natural resource conservation and management Case studies: soil; water; solid waste


Time Allocation (Hours): Lectures: 30 ; Tutorials: 15 | Assessment: In-course: 40% ; End-semester: 60%

Credit: 3 | Prerequisites: ECN2001 and ECN2002 | Compulsory/Optional: Compulsory Course for Economics Honours and Optional for other disciplines


Description:
Conceptual definition of entrepreneur and entrepreneurship and its historical development. Economic theories of Entrepreneurship; Strategies for strengthening an entrepreneurial culture. Economic models of occupational choice. Features and Types of entrepreneurs. Factors influenced to entrepreneurship. Impact of macroeconomic policies on entrepreneurship and financial decision of entrepreneurs; Entrepreneurial process and the role of entrepreneurship in economic development; Entrepreneurs affects on economic growth; inequality and poverty. Business Incubation and business Incubators' role in development. Transforming rural economies through entrepreneurial networks


Time Allocation (Hours): Lectures: 30 ; Tutorials: 15 | Assessment: In-course: 40% ; End-semester: 60%

Credit: 3 | Prerequisites: ECN2001 and ECN3001 | Compulsory/Optional: Compulsory Course for Economics Honours and Optional for other disciplines


Description:
Topics include: Introduction to Health Economics; An Economic Perspective of Health and Medical Care; The Demand for Medical Care; Medical Care Production and Costs; Structure; Conduct; Performance; and Market Analysis; Equity; Efficiency; and Need; Government; Health; and Medical Care; Health Insurance; Unhealthy behavior: evidence and policy issues; Health and economic development; Healthcare system in Sri Lanka; Cost-Benefit and Cost-Effectiveness Analysis.


Time Allocation (Hours): Lectures: 30 ; Tutorials: 15 | Assessment: In-course: 40% ; End-semester: 60%

Credit: 3 | Prerequisites: ECN2001 and ECN2002 | Compulsory/Optional: Compulsory Course for Economics Honours and Optional for other disciplines


Description:
Gender inequality: an empirical overview; costs of gender inequality; overview of theoretical approaches to gender; economic models of the household and the balance of power; unpaid work and care work; gender inequality in labor markets; overview of analytical approaches to gender and development; gender and poverty; policies to empower women; gender and politics; gender mainstreaming: definitions and challenges; gender budgeting; gender in project planning


Time Allocation (Hours): Lectures: 30 ; Tutorials: 15 | Assessment: In-course: 40% ; End-semester: 60%

Credit: 3 | Prerequisites: ECN2001 and ECN2002 | Compulsory/Optional: Compulsory Course for Economics Honours and Optional for other disciplines


Description:
Overview of thoughts on development: classical; neoclassical; modern and institutional economists; The evaluation of concepts; theories; approaches and strategies of development: classical; modernization; dependency; neo-liberalism; postmodernism post; colonialism; human development; human rights; sustainable development. Goals; Indicators; obstacles and challenges for economic development. Choice of techniques economic development: Issus related to economic development in developing countries: inequality and poverty: population growth and demographic transition; education and health; labour and unemployment: urban development and migration; rural and agricultural development; environment and development; gender and development; State policy and development failure: Market and institutional failures; sustainable development goals and future challenges; international economic relations and globalization of development.


Time Allocation (Hours): Lectures: 30 ; Tutorials: 15 | Assessment: In-course: 40% ; End-semester: 60%

Credit: 3 | Prerequisites: ECN3001 | Compulsory/Optional: Compulsory Course for Economics Honours and Optional for other disciplines


Description:
The scope of Industrial Organization; Monopoly and welfare consequences of market power; Structure-conduct-performance model; Market concentration; determinants of market structure; Advertising; product differentiation and research and development; Cournot and Stakelburg models; Bertrand model; entry; accommodation and exit; Economic theory of regulation; deregulation; Public Enterprises and Industrial policy issues in Sri Lanka.


Time Allocation (Hours): Lectures: 30 ; Tutorials: 15 | Assessment: In-course: 40% ; End-semester: 60%

Credit: 3 | Prerequisites: ECN2001 and ECN2002 | Compulsory/Optional: Compulsory Course for Economics Honours and Optional for other disciplines


Description:
Introduction to Money; Banking and Financial Markets; Financial Markets: understanding interest rates; behavior of interest rates; risk and term structure; Financial Institutions: economic analysis of financial structure; banking and management of financial institutions; Central Banking and Monetary Policy: Central Banking; Money Supply process; Tools of Monetary Policy; International Finance; Development Finance; Financial Development and Economic Growth; Microfinance; Informal Finance.


Time Allocation (Hours): Lectures: 30 ; Tutorials: 15 | Assessment: In-course: 40% ; End-semester: 60%


4000 Level

Credit: 3 | Prerequisites: ESS1004 and ECN2020 | Compulsory/Optional: Compulsory


Description:
Introduction to Big data; Real world examples of Big Data applications V's of Big data; Comparison of traditional Database Management System and a Big Data Management System; Data collection; monitoring; storing; analysing and reporting; Architectural components for Big Data analysis Big data operation techniques; Install and run simple programs using Hadoop; Frequent operations for different data types


Time Allocation (Hours): Lectures: 30 ; Tutorials: 15 | Assessment: In-course: 40% ; End-semester: 60%

Credit: 3 | Prerequisites: ECN3001 | Compulsory/Optional: Optional for Economics Honours


Description:
Overview of the global energy markets and the local context; analyze markets related to energy resources; commodities and technologies; economic regulation in energy markets; concepts related to energy conservation; efficiency; and security; environmental impacts and climate issues; energy sector planning and forecasting models.


Time Allocation (Hours): Lectures: 30 ; Tutorials: 15 | Assessment: In-course: 40% ; End-semester: 60%

Credit: 3 | Prerequisites: ECN3002 and ECN3053 | Compulsory/Optional: Only Compulsory for Stream 3


Description:
The course covers; introduction to international development; international development theories; strategies; policies and approaches; Structural transformation and Economic development experiences of East Asia; South Asia Sub-Saharan countries and Western economies. Economics of Globalization: theories; causes and consequences of globalization; Economic Development in a Globalizing World; Macroeconomics of international development and globalization: Determinants of economic growth; Trade liberalization; capital flows and labour migration and Foreign aid. Global convergence; divergence and development; International Development Cooperation; Role of Multilateral institutions; international organizations; NGOs and United Nations in international development International relations and economic development; the emergence of governance agenda and the politics of international development


Time Allocation (Hours): Lectures: 30 ; Tutorials: 15 | Assessment: In-course: 40% ; End-semester: 60%

Credit: 3 | Prerequisites: ECN3053 | Compulsory/Optional: Only Compulsory for Stream 3


Description:
Theoretical and conceptual explanations of the economic development policy and planning process; objectives; goals; types and stages of economic development and policies; Different planning and appraisal techniques: Choice of techniques; input-output analysis; shadow pricing; plan appraisal; project appraisal; financial appraisal; economic appraisal; Contrasting economic development approaches and methods on policy formulation and planning; International; national and regional factors affecting local economic development policy and planning; Equity; participation; conflict; and cooperation in economic development policy practice and planning


Time Allocation (Hours): Lectures: 30 ; Tutorials: 15 | Assessment: In-course: 40% ; End-semester: 60%

Credit: 3 | Prerequisites: ECN3001 | Compulsory/Optional: Only Compulsory for Stream 8


Description:
Introduction to environmental economics; The basic theories of environmental economics: market and efficiency; efficiency and economic well-being; maximum social well-being; social welfare function and Pareto efficiency; social indifference curve and criteria for economic efficiency; Economic tools for environmental policies; Pigouvian Policy; Coase Theorem; the double dividend and Porter Hypotheses; Environmental impacts assessment Global environmental problem; global climate change; climate change policies. International agreements; Risk; uncertainty and discounting; Sustainable development and environmental policy.


Time Allocation (Hours): Lectures: 30 ; Tutorials: 15 | Assessment: In-course: 40% ; End-semester: 60%

Credit: 3 | Prerequisites: None | Compulsory/Optional: Only Compulsory for Stream 10


Description:
Students will have an opportunity to understand social conflicts-origin and development of conflict; with special focus on economic causes. The course will look at dynamics of conflicts; determinants of inter and intra state conflicts such as in equality and poverty; ethnic diversity; macroeconomic shocks and resource sharing in South Asia. Furthermore; economic impacts of terrorism; mechanisms and issues related to post conflict development and reconciliation process in Sri Lanka will be discussed.


Time Allocation (Hours): Lectures: 30 ; Tutorials: 15 | Assessment: In-course: 40% ; End-semester: 60%

Credit: 3 | Prerequisites: ESS1004, ECN2004 and ECN2014 | Compulsory/Optional: Optional for Economics Honours


Description:
Topics include a review of theoretical probability distribution; generating functions and characteristic function; Probability Distribution - Gamma; Beta; hypo-geometric; Negative Binomial; Log normal; Chi-Square; Student's t and F distributions; The relationship between Normal; t; F; Chi- Square distribution; Multivariate Random Variables; in vector form and its Probability Distribution; Marginal and Conditional Distributions; Linear combinations; Marginal and Conditional Probability Distributions; Vector notations; Quadratic form of a standard normal vector; diagonalization; Theory for multivariate distributions: Conditional and unconditional Expected value; Conditional and unconditional Variance Matrix; Covariance Matrix; correlation; Multivariate theoretical distributions: Bivariate Normal; Multivariate Normal; Multinomial; Moments for multivariate distributions; Estimation: Maximum likelihood function; Confidence region; Properties of good estimators- Multivariate case; Cramer-Rao Lower Bound and Information Matrix; Review of Tests of Hypotheses; Power of a statistical test and its function; uniformly most powerful test (UMP); The Neyman-Pearson Theorem; Likelihood Ratio Test; Wald test; Linear Hypothesis.


Time Allocation (Hours): Lectures: 30 ; Tutorials: 15 | Assessment: In-course: 40% ; End-semester: 60%

Credit: 3 | Prerequisites: None | Compulsory/Optional: Optional for Honours Degrees


Description:
Topics include: Introduction; Type of Projects; Project Cycle; Project Identification; Feasibility Studies; Project Preparation: Project Profile; Logic al Framework Approach; Logical Framework Matrix; Project Appraisal: Cost-Benefit Analysis; Financial Analysis Vs. Socioeconomic Analysis; Project Criteria: Net Present Value; Internal Rate of Return and Benefit-Cost Ratio; Environmental Impact Assessment and Social Impact Assessment; Shadow Prices; Sensitivity Analysis and Risk Management; Cost Effective Analysis; Impact Evaluation: Techniques and methods


Time Allocation (Hours): Lectures: 30 ; Tutorials: 15 | Assessment: In-course: 40% ; End-semester: 60%

Credit: 3 | Prerequisites: ECN2001, ECN2002, ECN3001 and ECN3034 | Compulsory/Optional: Core for Stream 1 and Optional for other Streams


Description:
Labour supply: Individual and household labour supply models; labour supply and public policy; labour supply over the life cycle-dynamic life cycle models; fertility and child-bearing; retirement and pensions; Labour demand and the labour market: competitive markets; imperfect competition; minimum wage legislation; Wage determination: compensating wage differentials; human capital; the wage structure and inequality; labour mobility; labour market discrimination; mandatory retirement; Economics of trade unions: theory of union behaviour; theory of bargaining; measuring union wage effects; economic impact of unions; Unemployment: types of unemployment; explanations of unemployment: job search; implicit contract theory; efficiency wages; insider-outside theory; vacancy analysis; unemployment insurance


Time Allocation (Hours): Lectures: 30 ; Tutorials: 15 | Assessment: In-course: 40% ; End-semester: 60%

Credit: 3 | Prerequisites: ECN3062 | Compulsory/Optional: Core for Stream 2 and Optional for Other Streams


Description:
Introduction to Investment; Investment Environment; Time Value of Money: Present Value; Future Value; Multiple Cash flows; Bonds and Bond Valuation; Stocks and Stock Valuation; Investment Criteria; Cash flow Estimation; Sources of Capital; Costs of Capital; Risk and Return; Portfolio Theory.


Time Allocation (Hours): Lectures: 30 ; Tutorials: 15 | Assessment: In-course: 40% ; End-semester: 60%

Credit: 3 | Prerequisites: ECN3029 | Compulsory/Optional: Only Compulsory for Stream 4


Description:
Topics include: Introduction to regional development and planning; Identifying the concept of "region"/definition of a region based on socio economic; political and cultural dimensions; Economic base analysis of a regional economy/tools and modeling techniques; Sources of regional economic growth and related issues; The relevance of regional planning particularly for developing countries; Regional development experiences in Sri Lanka; Trends; policies and related issues of urbanization and its implications; Provision of physical and social infrastructure for regional development; Spatial economics and location theory; Growth pole theory and its implications for regional development; Shift share analysis and the uses of it for regional development planning; Innovations in regional development: planning methods; changing agenda and emerging areas


Time Allocation (Hours): Lectures: 30 ; Tutorials: 15 | Assessment: In-course: 40% ; End-semester: 60%

Credit: 3 | Prerequisites: ECN2003, ECN2004 and ECN2014 | Compulsory/Optional: Core for Stream 5 and Optional for Other Streams


Description:
Topics include: Introduction and Review: Scale of measurements; introduction of distribution free statistics; The choice of statistical test; uses of N-P methods; Types of N-P tests; One Sample Tests: The Sign test; The Kolmogorov-Smirnov test; Two Samples Test: The Wilcoxon Signed - Rank Test (W test); Two Samples Test: The Mann-Whitney U test; Wilcoxon Rank Sum Test ; K Samples ; The Kuruskal - Wallis test (H test); K Samples: The Friedman test Two way ANOVA:The Chi-square; goodness of fit test (K3) ; The Kolmogorov -Smirnov test (K-S test); The Chi-square test: Tests of independence : contingency table ; The Runs test for randomness (sequenced data) Measures of Correlation: The Contingency coefficient; The Spearman Rank correlation; The Kendal Rank correlation test; Density estimation: Kernel density estimation: Smoothing methods and Robust Model fitting ; Normality test: K-S test: Application of Statistical Software: Minitab; SPSS; STATA


Time Allocation (Hours): Lectures: 30 ; Tutorials: 15 | Assessment: In-course: 40% ; End-semester: 60%

Credit: 3 | Prerequisites: ECN3029 | Compulsory/Optional: Only Compulsory for Stream 6


Description:
This course covers an overview of the theory and empirics of public finance; The concept of functioning of modern public finance; Public needs and Public expenditure: types mechanisms and theoretical basis for economic effect; Public revenues: relationships and structure of direct and indirect taxes in the tax system; other public revenues; tax theory and policy: tax system; tax incidence; taxation and economic efficiency; optimal and equitable taxation. Personal taxation and behavior. Effect of tax on income distribution; Effects of tax on portfolio composition; Corporation taxation. Economic implications of government expansion and its consequences. Budget and budgetary system; fiscal policy issues in Sri Lanka: deficit financing and debt management.


Time Allocation (Hours): Lectures: 30 ; Tutorials: 15 | Assessment: In-course: 40% ; End-semester: 60%

Credit: 3 | Prerequisites: ECN3006 | Compulsory/Optional: Core for Stream 7 and Optional for Other Streams


Description:
Post Heckscher-Ohlin Theories and Critical Evaluation of H-O Theories; new theories of international trade; Instruments of Trade Policy; Theory of Economic Integration; bilateral and regional trade; International trade and economic growth; Trade Policy in Developing Countries: Import Substitution Industrialization and Export Oriented Industrialization; Trade Liberalization.


Time Allocation (Hours): Lectures: 30 ; Tutorials: 15 | Assessment: In-course: 40% ; End-semester: 60%

Credit: 3 | Prerequisites: ECN2001 and ECN3001 | Compulsory/Optional: Only Compulsory for Stream 9


Description:
Introduction to agricultural economics; Agricultural production functions: production efficiency and inefficiency; Theory of rent and concept of surplus; Technological changes in agriculture; Introduction to agricultural marketing: Inputs and output marketing; Demand; supply; revenue; costs (implicit and explicit) cost and profits; Agricultural commodity price determination and market adjustment; Agricultural inputs price determination and market adjustment; Agriculture and risk management; International agricultural trade; Government intervention in agricultural sector; Sustainable agricultural development: concepts; method and application; Introduction to food security and food crisis.


Time Allocation (Hours): Lectures: 30 ; Tutorials: 15 | Assessment: In-course: 40% ; End-semester: 60%

Credit: 3 | Prerequisites: None | Compulsory/Optional: Only Compulsory for Stream 10


Description:
Orthodox and Heterodox Economics: An Introduction; Methodology of Social Sciences 1: Against Positivism (Friedman-Samuelson Debate); Methodology of Social Sciences 2: Epistemological issues - Economic Agencies and power relations; Introduction to Critical Realism; Crisis of Capitalism and Crisis of Economics: Things mainstreams economics do not talk; New International Financial Architecture (NIFA); Political Economy of Capitalism and its unending crisis; Theory of Economic Crisis; Political Economy of Globalization; Political Economy of Hegemony; Marx; Alienation and Political Economy of Consumerism; Human Body as a Commodity: Political Economy of Global Organ Market; Nationalism; Economic nationalism and the Dimensions of Racial politics; A Debate on Post-war Political Economy of Sri Lanka.


Time Allocation (Hours): Lectures: 30 ; Tutorials: 15 | Assessment: In-course: 40% ; End-semester: 60%

Credit: 3 | Prerequisites: ECN3033 | Compulsory/Optional: Only Compulsory for Stream 1


Description:
Overview of Demographic Economics; Population Dynamics; Economics of the Family; Population Health; Economic Analysis of Migration; Non-Labour Discrimination; Role of public policy; Population Dynamics: Demographic Transition; Aging Population: Economics of the elderly; Sri Lanka's Population Change and Population Issues; Economics of the family; Economic Determinants and Consequences of Marriage and Fertility; Divorce; Human Capital and Fertility; Altruism in the Family; Family decision making; Child Labour ; Intergenerational transfers; Population Health: Child Health and Mortality; Economic Determinants of Health Outcomes; Morbidity; the value of a life; Economic Analysis of Migration; non-labour discrimination: gender; race; minorities and non-labour discrimination.


Time Allocation (Hours): Lectures: 30 ; Tutorials: 15 | Assessment: In-course: 40% ; End-semester: 60%

Credit: 3 | Prerequisites: ECN3062 | Compulsory/Optional: Core for Stream 2 and Optional for Other Streams


Description:
The classical capital asset pricing model (CAPM); CAPM and Corporate Financing; Extensions to CAPM; Arbitrage Pricing Theory (APT); Aggregate stock market fluctuations; Forwards; Futures; Options; Swaps; Tackling the puzzles: Risky debt and credit derivatives; Derivative Assets and Pricing; Valuing income streams under uncertainty; Statistical inference for dynamic asset pricing models; Introduction to Financial engineering; Financial engineering for fixed income securities; The Modigliani Miller Theorem


Time Allocation (Hours): Lectures: 30 ; Tutorials: 15 | Assessment: In-course: 40% ; End-semester: 60%

Credit: 3 | Prerequisites: ECN2001 | Compulsory/Optional: Core for Stream 4 and Optional for Other Streams


Description:
Introduction to Urban Economics: Nature of urban areas and urban economics; Why and Where Do Cities Develop; Scale Economics; Agglomerative Economics in Production; Economies of localization; Scale Economics; Agglomerative Economics in Production; Economies of localization; Cities in History: Cities and Economic Development; Introduction to Economic Geography and Regional Growth; System of Cities and the Urban Hierarchy: Determinates of relative size of urban areas; the rank-size rule; Optimal City Size - Pollution and Congestion: Are large cities too large? Reasons for very large cities in developing countries; The relationship between city size and the quality of life; Urban Transportation; Crime; Education and Inequality; Theoretical Analysis of Urban Structure - the Monocentric Model; Multi-Centered Cities - The Suburbanization of Employment or Edge City: Sprawl and Urban Growth; Empirical Investigations of Changes in Urban Structure - Suburbanization; The Economics of Housing; Zoning and Urban Renewal; Models of Local Government


Time Allocation (Hours): Lectures: 30 ; Tutorials: 15 | Assessment: In-course: 40% ; End-semester: 60%

Credit: 3 | Prerequisites: ECN3024 and ECN3034 | Compulsory/Optional: Core for Stream 5 and Optional for Other Streams


Description:
Topics include: Introduction to time series econometrics; difference equations and solutions: iteration method; homogenous difference equations; lag operator method; Stationary time series models: stochastic equations; AR; MA; ARMA models; autocorrelation functions; partial autocorrelation functions; sample autocorrelation; seasonality; Non Stationary time series models: ARIMA-Box- Jenkins approach; model with trends (deterministic and stochastic); de-trending; unit root process; random walks; unit root tests; structural change; univariate decomposition; Multi-equation time series model: intervention analysis; transfer functions; introduction to vector autoregressive (VAR) analysis; Structural VAR analysis; Co-integration (single equation; bivariate cointegration; cointegration in more than two variables; cointegration); Error correction model; Granger causality test under VAR and vector error correction model (VECM); Impulse response function (IRF) and Variance decomposition (VDC) under VAR and VECM; Modeling volatility: introduction to Autoregressive Conditional Heteroscedasticity (ARCH) and Generalized ARCH (GARCH) model; Decomposition of economic time series into permanent and transitory components. Application of Statistical Softwares in Time Series Statistical Analysis.


Time Allocation (Hours): Lectures: 30 ; Tutorials: 15 | Assessment: In-course: 40% ; End-semester: 60%

Credit: 3 | Prerequisites: ECN3029 | Compulsory/Optional: Only Compulsory for Stream 6


Description:
The course will begin with an introduction to public policy analysis and its relevance to planning and development; objectives and methods of policy analysis; principles of policy analysis; identifying and structuring objectives of public policy; measuring and quantifying objectives; creating alternatives for multiple decisions making. policy analysis process: which includes verifying; defining and detailing the problems for public policy analysis; evaluation criteria for policy analysis and evaluating alternative policies. Public policy issues in Sri Lanka in relation to planning; implementation and monitoring and evaluation in relation to trade; finance and welfare. Public policies in development programming and setting up performance criteria.


Time Allocation (Hours): Lectures: 30 ; Tutorials: 15 | Assessment: In-course: 40% ; End-semester: 60%

Credit: 3 | Prerequisites: ECN3006 | Compulsory/Optional: Core for Stream 7 and Optional for Other Streams


Description:
Balance of payments: Theories and concepts; The foreign exchange market: Exchange rate and asset market; money market and commodity market equilibrium; Monetary and fiscal policy in an open economy: A quantitative approach; International monetary system and optimum currency areas; European economic and monetary union; Global financial issues: focusing on financial crises in developing countries; International capital market; Developing countries in the global capital market; Economic integration and monetary unification; International investment and banking


Time Allocation (Hours): Lectures: 30 ; Tutorials: 15 | Assessment: In-course: 40% ; End-semester: 60%

Credit: 3 | Prerequisites: ECN3001 and Enrollment for ECN3047 and ECN4047 | Compulsory/Optional: Core for Stream 8


Description:
Introduction to environment valuation; Measuring demand for environmental goods; and Consumer and producer surpluses as measures of welfare change; Concept on compensating and equivalent variation; Economic valuation approaches. Principles of market based valuation; productivity change; hedonic pricing method; travel cost method; cost of illness approach; CBA. Basic approaches for non-market valuation: Contingent valuation; Choice experiment; Benefit transfer; Case studies and applicability of economic valuation methods in economic analysis


Time Allocation (Hours): Lectures: 30 ; Tutorials: 15 | Assessment: In-course: 40% ; End-semester: 60%

Credit: 3 | Prerequisites: None | Compulsory/Optional: Only Compulsory for Stream 9


Description:
Introduction to agricultural development and policy; Role of agriculture in economic development; Structure and characteristic of agriculture in LDC's; The role of public and private sectors in agricultural development; Principles for agricultural policy: policies; institutions and legislation; Agricultural policy analysis: framework; market equilibrium and social welfare; Value chains and agricultural competitiveness; Trade policy instruments: Agricultural trade and their impacts; Nominal and effective protectionism; Domestic policies and policy instruments: price policy; marketing policy; input policy; credit policy; mechanization policy; land reform policy; irrigation policy; Impact evaluation in Price distortions of policy interventions and agricultural policies. Political economy of agricultural policy.


Time Allocation (Hours): Lectures: 30 ; Tutorials: 15 | Assessment: In-course: 40% ; End-semester: 60%

Credit: 2 | Prerequisites: None | Compulsory/Optional: Compulsory


Description:
Meaning; Nature and Importence of Project: Meaning; concepts; types of project. A comprehensive review of the various methods; tools and techniques of project management and its usefulness: Part II: Project Management Theories; Principles and their Practical Applications: Project Budgeting and Performance Assessments: Meaning and features of project Budgeting; Project Budgeting process; Criteria for Capital Budgeting; Resource allocation Framework; Issues in project budgeting: Part IV: Role and Task of Project Managers: Characteristics; Role and Responsibility and leadership skills of Project Manager; Role in Project Performance analysis: Analysis of project risk; Economic and social analysis; Technical and financial and analysis; Time estimation and time management analysis; Networking of project management. Part v: Performance Evaluation and Report Reporting: Structure of the performance report; Criteria for performance evaluation; Performance indicators and post evaluation techniques; Constricting Performance index; Writing project performance report; Presentation of the performance/post-evaluation report.


Time Allocation (Hours): Lectures: 30 ; Tutorials: 15 | Assessment: In-course: 40% ; End-semester: 60%

Credit: 2 | Prerequisites: Registered Stream course or instruction of the Coordinator | Compulsory/Optional: Compulsory


Description:
This course will provide students with an overview of some important issues related to the field of economics: Gender; Demographic; Labour; Economic development; Regional and Urban development; Public finance and policy; International trade and Finance; Environment; Agriculture; Politics and economic relations; econometrics and other relevant field in economics and development etc. and introduce them to key empirical research by economists that seeks to address different aspects of these issues; with a special focus on contemporary and emerging economic issues in Sri Lanka and the world. The course is designed as a seminar where learning will take place in a small group setting a learner center approach based presentations; discussions; dialogue workshop of key readings


Time Allocation (Hours): Lectures: 30 ; Tutorials: 15 | Assessment: In-course: 40% ; End-semester: 60%

Credit: 8 | Prerequisites: None | Compulsory/Optional: Compulsory


Description:
The undergraduate dissertation project within a chosen specialization is an individual study that must include substantial new data or ideas showing originality. This includes search; studies and summary of scholarly/scientific literature; practical work in the chosen field; compilation and critical analysis of the results; and oral and written presentation. The undergraduate dissertation is mastered under individual supervision. The supervision includes how to perform a scientific study and how to orally and in writing present gathered data or ideas in acceptable scientific manner. The dissertation must have documented scientific experience. The students must submit a complete written dissertation as a partial fulfillment of the degree. The Dissertation Writing Guidelines will be prepared and used.


Time Allocation (Hours): Supervised Independent Research: 800 (Notional Hours) | Assessment: In-course: 35% ; End-semester: 65%


300 Level (Old Syllabus)

Description

Consumer Theory: Choice, Preferences, Utility; Demand, Revealed Preferences, Comparative Statics, Consumer Surplus, Aggregation; Variations to the basic choice model (Time and Uncertainty); Producer Theory: Technology, profit maximisation, Cost Minimisation, Supply, Aggregation; Markets: Monopoly; Oligopoly and Game Theory; Walrasian Equilibrium; Market Failures: Externalities, Public Goods, Small Number of Agents, Nash Bargaining; Asymmetric Information: Adverse Selection, Moral Hazard, Principal Agent model; Auction Design, Voting and other applications

Description

Evolution of Macroeconomic Thought; Open Economy Macroeconomics; Aggregate Supply: Wages, Prices, Unemployment, Phillips Curve; Long run economic growth; Business Cycles; Modern Developments in Macroeconomics; Macro Policy.

Description

Introduction to Social Research: scientific inquiry—views of reality, paradigms, theory; overview of the research process; elements of a research paper; structuring of inquiry: research design; sampling: probability sampling; types of sampling design; modes of observation: experiments; survey research including questionnaire design; qualitative field research; unobtrusive research; evaluation research; data analysis: quantitative data analysis—review; qualitative data analysis; writing a research paper.

Description

Major topics: Correlation, covariance and simple linear regression (SLR); estimation of the SLR model using Ordinary Least Squares (OLS), Method of Moments and Maximum Likelihood; interpretation and statistical inference with OLS; extension of above to the multiple linear regression (MLR) model; dummy explanatory variables; introduction to specification error, multicollinearity, heteroskedasticity and autocorrelation. Classroom material on model estimation and interpretation, and testing of hypotheses, will be supplemented with lab practice in software applications.

Description

Overview of development economics: modern development pioneers; neoclassical and institutional economists; the evolution of the goals of development; inequality and poverty: overview; population growth, health, education and child labour: demographic transition; microeconomic theory of fertility; child labour; human capital-education; human capital-health; public spending on education and health; labour, unemployment and migration: labour supply unemployment; fragmented labour markets; the urban labour market and the informal sector; migration; the role of geography in development: regional and urban development; governance and public policy: market failure, government failure, new market failure, institutional failure; corruption; public goods and economic development; taxation, public spending and development.

Description

Review of the Multiple Regression Model - assumptions, estimation and interpretation; Review of and further work on violations of assumptions - Problem and consequences; informal and formal methods of detection; remedies: Multicollinearity, Heteroscedasticity, Autocorrelation. Specification Error: Types of specification errors, tests for specification error (Ramsey’s RESET test, LM test), omitted variable bias, model selection criteria. Testing of linear restrictions. Simultaneous Equation Models: endogeneity and identification. Panel data estimation: Introduction, fixed effects approach (LSDV), Random effects approach. Maximum Likelihood estimation: Likelihood function, likelihood estimation and properties of the estimators, likelihood ratio test. Binary Choice models: Linear probability, Probit and Logit models - concept, estimation, and interpretation of results. Introduction to Time Series Econometrics: Introduction to Generalized Methods of Moments; Introduction to Instrumental Variable techniques.

Description

Introduction to Resource Economics; Inter-Linkage between Environment and Economics; Definition and classification of natural resources: Definition of natural resources, Types of resources and scarcity problems, Measures of resource availability, Outline of natural resources of Sri Lanka; Property rights and the problems of Resource Extinction: Open access property regimes, Common-pool property regimes, Public property regime, Private property regime; Major Environmental Issues: Population growth, Poverty and environment, Gender development and environment, Industrialization, urbanization and environment; Agriculture and Environment; Environment and sustainable development: Definitions and concept of sustainability; Internal and Global Environmental Problems.

Description

This course covers: Introduction to Financial system; Types of Financial Markets and Instruments; Efficient Markets; Functional approach to the Financial System; Principles of Financial Intermediation; Interest rate determination; Risk and Term structure of Interest Rates; Financial Institutions; Management of Financial Institutions; Nonbank financial institutions; Financial Derivatives; International Financial System; Financial Repression; Theoretical Justifications for Financial Repression; McKinnon Shaw Financial Development Framework; Financial Development and Economic Growth; Overview of Microfinance; Overview of Informal Finance.

Description

Introduction to International Economics: Key concepts and issues; Mercantilism View on Trade; Classical and Neo-Classical Trade Theories; Trade Barriers; Trade Policy: Balance of Payments: Basic Theory of Exchange Rate; Exchange Rate and Balance of Payments: Sri Lankan Experience; International Monetary Fund and Global Monetary System; World Bank and International Development Assistance; World Trade Organization and Global Trading System.

Description

The Evolution of Money: the history of money; functions and characteristics of money; different types of money; The Demand and Supply of Money: Keynesian, Baumol’s, Tobin’s and Friedman’s view on money; Definition of Supply of Money: Monetary base; relationship between Money multiplier; Money Supply and high powered Money; The Evolution of Monetary Institutions: Historical development of monetary Institutions; origin of Commercial Banking; Operations of Commercial Banking and Money creation; non-banking financial institutions and their role; Central Banking and Monetary Policy: Principles and functions of Central Bank in general; special focus on objectives and functions of Central Bank of Sri Lanka; Monetary policy in Sri Lanka; The effects of Money on Output and Prices: the Monetary Transmission mechanism; Financial sector reforms in Sri Lanka: Management of money and financial institutions: failure of some monetary instructions in Sri Lanka, Regulatory measures and credit rating;

Description

Agrarian change and its limits; Difference between agriculture and manufacture; Industrialization in its different phases; Role of infra-structure in development; Transcending comparative advantage through infant industry protection (F. List vs. Ricardo); Institutions (the state, market etc) in the development process; Colonialism and hegemony as a constraint on development in the global South; Towards multi-causal explanation of development.

Description

Role of agriculture in economic development; theories of agricultural development; technological change in agriculture; case studies in agricultural development: Japan, China and Great Britain; Green Revolution: experiences in South Asia; Agricultural Taxation; Land Reforms; Economic and Social Aspects of Land Reforms; Experience of Sri Lanka and other Asian countries; Production Strategies and Government Intervention in Agriculture Sector: Credit and Insurance, Pricing policies, Marketing, Irrigation and Land Development, Plantation Sector Policies, Research and Extension, Agricultural Development Planning.

Description

Differing theoretical and conceptual explanations of the economic development process; international, national, and regional factors affecting local economic development; federal, state, and local roles; contrasting economic development approaches and methods; equity, participation, conflict, and cooperation in economic development; and economic development practice and policy.


400 Level (Old Syllabus)

Stream: Labor and Demographic Economics

Description

Labour supply: Individual and household labour supply models; labour supply and public policy; labour supply over the life cycle—dynamic life cycle models, fertility and child-bearing, retirement and pensions; Labour demand and the labour market: competitive markets; imperfect competition; minimum wage legislation; Wage determination: compensating wage differentials; human capital; the wage structure and inequality; labour mobility; labour market discrimination; mandatory retirement; Economics of trade unions: theory of union behaviour; theory of bargaining; measuring union wage effects; economic impact of unions; Unemployment: types of unemployment, explanations of unemployment: job search; implicit contract theory; efficiency wages; insider-outside theory; vacancy analysis; unemployment insurance.

Description

Overview of demographic economics: population dynamics, economics of the family, population health, migration, non-labour discrimination, role of public policy; population dynamics: demographic transition; ageing population; economics of the elderly; Sri Lanka’s population change and population issues; economics of the family: economic determinants and consequences of marriage and fertility; divorce; human capital and fertility; altruism in the family; family decision making; child labour; intergenerational transfers; population health: child health and mortality; economic determinants of health outcomes; morbidity; the value of a life; economic analysis of migration: non-labour discrimination: gender, race, minorities and non-labour discrimination.

Stream: Financial Economics

Description

Introduction to Investment; Investment Environment; Sources of Capital; Costs of Capital; Fundamental Analysis; Technical Analysis; Efficient Market Theories; Bond and Share Analysis and Valuation; Risks and Returns; Portfolio Selection Models; Exchange Rates and Arbitraging; International Investment Analysis; Informal Finance; Micro-finance.

Description

Introduction to Financial Economics; Interest rates, compounding and bond pricing; Valuing income streams under certainty; Valuing income streams under uncertainty; Aggregate stock market fluctuations; Tackling the puzzles: Risky debt and credit derivatives; Financial engineering for fixed income securities; The classical capital asset pricing model; Statistical inference for dynamic asset pricing models; CAPM and Corporate Financing: The Modigliani Miller Theory; Derivative Assets and Pricing

Stream: Economic Development and Public Policy

Description

An overview of public sector economics: the economic role of the government, rationale for the government intervention, the public sector in a mixed economy; Fundamentals of welfare economics: market efficiency, market failure, efficiency and equity; Provision of public goods: public goods, public choice, public production and bureaucracy, externalities and regulations; Expenditure programmes: health-care, education, social security and welfare programmes; Taxation: introduction to taxation, characteristics of tax system, tax incidence, taxation and economic efficiency, optimal taxation, taxation on factor incomes; Fiscal policy issues in Sri Lanka: revenue, expenditure, deficit, deficit financing, debt and debt management.

Description

Introduction to Urban Economics: Nature of urban areas and urban economics; Why and Where Do Cities Develop: Comparative Advantage, Scale Economics, Agglomerative Economics in Production, Economies of localization; Cities In History: Cities and Economic Development; Introduction to Economic Geography and Regional Growth: System of Cities and the Urban Hierarchy: Determinates of relative size of urban areas; the rank-size rule; Optimal City Size - Pollution and Congestion: Are large cities too large? Reasons for very large cities in developing countries, The relationship between city size and the quality of life; Theoretical Analysis of Urban Structure - the Monocentric Model; Multi-Centered Cities - The Suburbanization of Employment or Edge City: Sprawl and Urban Growth; Empirical Investigations of Changes in Urban Structure - Suburbanization; Urban Transportation; The Economics of Housing, Zoning and Urban Renewal; Models of Local Government; Education and Inequality; Crime and Punishment;

Stream: Statistics and Econometrics

Description

Introduction; Parametric estimation and inference: classical likelihood based estimation, Bayesian estimation, Bayesian analysis of classical regression model; Semi-parametric estimation: GMM estimator, Least absolute deviations estimator; Non parametric methods: general two sample shift model, the Sign test for a matched pairs experiment, The Wilcoxon signed-rank test for a matched pairs experiment, the Mann-Whiteney test for independent random samples, the Kruskal-Wallis test for the one-way layout, the Friedman test for randomized block designs, the Runs test for randomness, Spearman Rank correlation coefficient; Kernel density estimation; Non parametric regression: estimation, properties of estimators, testing hypothesis.

Description

Introduction to time series econometrics; Difference equations and solutions: iteration method, homogenous difference equations, lag operator method; Stationary time series models: stochastic equations, AR, MR, ARMR models, autocorrelation function, partial autocorrelation function, sample autocorrelation, seasonality; Non stationary time series models: models with trends, de-trending, unit root process, random walks, unit root tests, structural change, univariate decomposition; Multi-equation time series models: intervention analysis, transfer functions, Introduction to VAR analysis; Cointegration and error correction models: cointegration and common trends, testing for cointegration, Engle-Granger procedure, Introduction to Johansen methodology, introduction to error correction models.

Stream: International Economics

Description

Trade Theories: Neo Classical Theory, Heckscher-Ohlin Theory and Post Heckscher-Ohlin Theories and Critical Evaluation of Trade Theories; Instruments of Trade Policy: Tariff Analysis in Partial Equilibrium and General Equilibrium, Import Quota , Export Duty, Subsidy, Dumping and Voluntary Export Restraint; Theory of Economic Integration: case study of EU and SAARC; Growth and Trade; Trade Policy in Developing Countries: Import Substitution Industrialization and Export Oriented Industrialization.

Description

The foreign exchange market, balance of payments, international investment and banking, monetary and fiscal policy in an open economy, economic integration and monetary unification, the international monetary system and optimum currency areas, European economic and monetary union, international capital market, developing countries in the global capital market, financial crises in developing countries.

Stream: Environmental Economics

Description

Economics of Renewable Resources Management: Exploitation of Renewable Resources-Time and exploitation of Renewable resources, Fundamental rules of renewable resources exploitation, Problems related to exploitation of renewable resources, Applications to economic analysis of Renewable Natural Resources; Economics of Non-renewable Resources Management: The fundamental principle in Exploitation, Optimal resource use and depletion rules, Pricing resources and control of exploitation, Market structure and rate of exploitation; Economic Theory for Resource Policy: The consumer, the firm and the market equilibrium, Efficiency and economic well-being, Maximum social well being, Social welfare function and Pareto efficiency, Social indifference curve and criteria for economic policy; Market Failure and Source of Inefficiency: Property rights, Externalities, Public goods and source of inefficiency resource allocation; The Economics of Environmental Pollution: Market and pollution theorem, Property rights and pollution, the market and optimal pollution, Introduction to pollution theorems, Pollution control and policy instruments – Taxation, Pollution charges, Low cost-environmental standard settings, Pollution reduction subsidies, Marketable pollution permits.

Description

The role of Economic valuation in environmental management; Concept on compensating and equivalent variation; Measuring demand for environmental goods; Measuring consumer and producer surplus as measures of welfare change; Theory and techniques of the valuation of non-market goods and services; Techniques and methods for putting monetary values on the environment; Theory and practical application of Environmental valuation techniques: Willingness to Accept and Willingness to Pay approach. Methods based on market prices, Hedonic pricing methods, Travel cost Methods, Contingent valuation method; Changes in human health methods, wage differential methods, Benefit transfer approach, Defensive cost methods, Nature recreational valuation and Economic valuation of biodiversity. Applicability of economic valuation methods in economic analysis(including cost-benefit analysis and Environmental impact assessment)

Optional Courses

Description

Role of Agriculture in Economic Development; Structure and Characteristics of Agriculture in developing countries; Agricultural Policy Analysis: Market, State and Policy; Framework for Policy Analysis; Analysis of policies on pricing, marketing, inputs, credit, mechanization, land reform, research and irrigation

Description

The scope of Industrial Economics, Market failure: Monopoly, externalities; Market failure: Public goods, Asymmetric information, Government failure, Structure-conduct-performance model, Market concentration and measurement of market power, Advertising, product differentiation and research and development, Non-cooperative Game Theory, Simultaneous and sequential games, Strategic behaviour between firms in quantity and price competition, Economic theory of regulation, Regulation of natural monopoly, Introduction to Auctions and competitive bidding; Competition policy and regulation in Sri Lanka.

Description

Gender inequality: an empirical overview; costs of gender inequality; overview of theoretical approaches to gender; gender and development: overview of analytical approaches to gender and development; globalization, economic restructuring and gender; gender mainstreaming: definitions and challenges; gender budgeting; gender in project planning; gender and poverty: family structure, female headship; gender and power: gender and decision making; gender and politics; gender and conflict; gender and education.

Description

Social conflicts—origin and development; causes of social conflict, with special focus on economic causes; conflict modeling—from Prisoner’s Dilemma to complex conflict models; modern theories of greed and grievance; economic consequences of social conflicts; micro-economic conflicts—labor markets, commodity markets; negotiation and bargaining in conflict management; conflicts in international trade and problem-solving mechanisms; post-conflict reconstruction—problems and experience, difference between redistribution and recognition conflicts.

Description

Economic Development of East Asia: structural transformation; strategies for economic development; endogenous technical progress or other aspects of the economic development experience of East Asia; Economic Development of South Asia: agricultural issues, peasant behaviour, land tenancy, interlinked markets, credit and insurance market problems and institutions; health, nutrition and productivity; poverty alleviation policies. Macroeconomics of Development: determinants of economic growth, trade liberalization, capital flows, foreign aid, macroeconomic stabilization, and reform, fiscal and financial policy etc. Microeconomics of Development: household economics, population, dualistic models of development, determinants of rural poverty, rural labour markets, risk and uncertainty, human capital and income distribution, environmental degradation, poverty alleviation policies; The State and Economic Development: evolution of the role of the state, planning, market failure, government failure, rent-seeking, political economy; Radical approaches to Development: political economy of development, dependency theory, neo-Marxist approaches to development.

Description

Methodology of Economics—Epistemological issues; Economic Agency—the importance of social classes, ethnic groups and their organizations in decision making and structures; Critical realism in Economics, Market Mechanism—its strengths and limits; Globalization and Economic Development; Fordism and post-Fordism; Contributions by the Regulation School, process of capital accumulation, financial crisis in the global economy, Ecology and capitalism.

Description

Introduction to the course, socio-economic project planning: meaning and types, project cycle, identification of project, techniques of project identification, project preparation, techniques of project preparation. Project appraisal: introduction to socio-economic project appraisal, principles of cost benefits analysis, financial analysis, shadow price calculation, Net Present Value, Internal Rate of Returns, Benefits- Cost Ratio, Environmental Impact Assessment, Social Impact Assessment, sensitivity analysis.

The students must also register for the two dissertation courses, ECN 498 (Semester I) and ECN 499 (Semester II).



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Address
Department of Economics & Statistics,
Faculty of Arts,
University of Peradeniya
Peradeniya, 20400,
Sri Lanka
Telephone
Head:+94 (0)81 239 2620
Office:+94 81 239 2621/22
Fax
+94 (0)81 239 2620
Email
econ@pdn.ac.lk
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