Indira Gandhi Krishi Vishwavidyalaya Common Entrance Test For PhD (IGKV-CET) - Syllabus For Agriculture Economics Department

Unit-1: Micro Economics Theory and Application
Theory of Consumer Behavior-Cardinal Utility Approach-Ordinal Utility Approach–Income effect and substitution effect–Applications of Indifference curve approach- Revealed Preference Hypothesis–Consumer surplus-Derivation of Demand curve–Elasticity of demand.
Theory of Production-`Production functions–Returns to scale and economies to scale–
Technical progress–Theory of Costs–Cost curves–Profit maximization and cost minimization–Derivation of supply curve–Law of Supply–Producer’s surplus. Market Equilibrium-Behavior of Firms in Competitive Markets–Perfect Competition-Effect of Taxation and Subsidies on market equilibrium-Monopoly market, Monopolistic competetion-Oligopoly market. Theory of Factor Markets. General Equilibrium Theory-Welfare
Economics-Pareto Optimality–Social welfare criteria-Social Welfare functions.

Unit-2: Macro Economics & Policy
Nature and Scope of Macro Economics and Keynesian Concepts National Income-Concepts
and Measurement-Classical theory of Employment and Say’s Law-Modern theory of
Employment and Effective Demand. Consumption function- Investment and savings-Concept
of Multiplier and Accelerator-Output and Employment-Rate of interest-Classical, Neo classical
and Keynesian version-Classical theory Vs Keynesian theory–Unemployment and Full
employment. Money and classical theories of Money and Price. Inflation: Nature, Effects and
control. IS & LM frame work-General Equilibrium of product and money markets-Monetary
policy-Fiscal policy-Effectiveness of Monetary and Fiscal policy.

Unit-3: Evolution of Economic Thought
Evolution of Economic Thought vs. Economic History. Ancient economic though– medieval
economic thought. Development of Classical Thoughts (Adam Smith, Robert Malthus and
David Ricardo).The birth of neoclassical economic thought–Marshall and Walras–General
Equilibrium Theory-Welfare. The Era of globalization–Experiences of developing world.
Economic Thought in India–Naoroji and Gokhale–Gandhian Economics -Economic thought of
independent India–Nehru’s economic philosophy-Experiences of the Structural adjustment
programmes of the post liberalization era.

Unit-4: Agricultural Production Economics
Nature, scope and significance of agricultural production economics. Factors of production,
classification of independent and dependence factors. Factors of substitution-Determination of
optimal levels of input-output. Least cost combination of production-Theory of choice. Cost
functions. Duality theory and its applications-Derivation of demand and supply functions.
Technical, allocative and economic efficiencies.

Unit-5: Agricultural Marketing and Price Analysis
Characteristic of Agricultural product and Problems in Agricultural Marketing from Demand
and Supply and Institutions sides. Market intermediaries and their role. Marketable &
Marketed surplus. Marketing Efficiency-Structure, Conduct and Performance analysis￾Vertical and Horizontal integrations. Co-operatives Marketing–APMC Direct marketing,
Contract farming and Retailing- Supply Chain Management-State trading, Warehousing and
other Government agencies-Performance and Strategies. Value Chain analysis. Role of
Information Technology and telecommunication in marketing of agricultural commodities￾Market research-Market information service-electronic auctions (e-bay), e- Chaupals,
Agmark and Domestic and Export Market Intelligence Cell (DEMIC), price forecasting–time
series analysis–time series models. Agriculture Price Policy and economic development–non￾price instruments. Price discovery and future trading (Hedging) Fundamental analysis of
Government in promoting commodity trading and regulatory measures.

Unit-6: Research Methodology for Social Sciences
Importance and scope of research methodology in agricultural economics. Types of research￾Fundamental vs. Applied. Concept of researchable problem–research prioritization–selection
of research problem. Hypothesis–meaning-characteristics-types of hypothesis–review of literature– setting of Objectives and hypotheses-testing of hypothesis. Sampling theory and
sampling design–sampling error-methods of sampling–probability and non-probability
sampling methods. Project proposals– different types of projects. Research design and
techniques–Types of research design. Data collection–assessment of data needs–sources of
data collection. Mailed questionnaire and interview schedule. Scaling Techniques. Coding,
editing–tabulation– validation of data. Tools of analysis–data processing. Interpretation of
results–Preparing research report / thesis–Universal procedures for preparation of
bibliography–writing of research articles.

Unit-7: Econometrics
Introduction of econometrics -relationship between economic theory, mathematical economics
and statistics. Econometric models and econometrics, methodology of econometrics.
Regression analysis. Basic two variable regression-assumptions estimation and interpretation.
Approaches to estimation of regression models-OLS, MLE and their properties. Extensions to
multivariable models-multiple regression and interpretation of estimators. Multicolinearity,
heteroscedasticity, autocorrelation. Use of dummy variables- limited dependent variables–
specification, estimation and interpretation. Simultaneous equation models–structural
equations-reduced form equations-identification and approaches to estimation.

Unit-8: Linear Programming
Meaning and concept of linear programming problems, Linear programming techniques.
Decision Making theory-Concepts of decision making theory. Introduction to quantitative
tools, introduction to linear programming problem, uses of LP in different fields. Formulation
of linear programming problems. Simplex Method: Concept of simplex Method, solving profit
maximization and cost minimizations problems. Formulation of farm and nonfarm problems as
linear programming models and solutions. Extension of linear Programming models: dynamic
programming. Game Theory- Concepts of game theory, two person constant sums, zero sum

Unit-9: Agricultural Finance and Project Management
Role and Importance of Agricultural Finance. Financial Institutions and credit flow to
Rural/priority sector. Agricultural lending–Direct and Indirect Financing-Financing through
Co-operatives, NABARD and Commercial Banks and RRBs. District Credit Plan and lending
to agriculture/priority sector. Micro-Financing and Role of MFI’s-NGO, and SHG’s. Lending
to farmers–The concept of 5C’s, 7P’s and 3R's of credit. Estimation of Technical feasibility,
Economic viability and repaying capacity of borrowers and appraisal of credit proposals. Credit
inclusions–credit widening and credit deepening. Financial Decisions– Investment, Financing,
Liquidity and Solvency. Preparation of financial statements-Balance Sheet, Cash Flow
Statement and Profit and Loss Account. Ratio Analysis and assessing the performance of
farm/firm. Financial, economic and environ mental appraisal of investment projects.
Identification, preparation, appraisal, financing and implementation of projects. Project
Appraisal techniques–Undiscounted measures. Time value of money–Use of discounted
measures-B-C ratio, NPV and IRR. Net Worth Techniques–PERT and CPM. Risks in financing
agriculture. Risk management strategies and coping mechanism. Crop Insurance programmes–
review of different crop insurance schemes-yield loss and weather based insurance and their