UPSC IES/ISS Syllabus 2019

UPSC IES/ISS 2019 Syllabus

The syllabus for the exam of IES/ISS is given below. The candidates first have to know the syllabus for preparing for the exam.

General economics 1

Part A

Theory of consumer demands- cardinal utility analysis, marginal utility and demand, consumer surplus, indifference curve analysis and utility function, price income and substitution effect, Slutsky theorem, and derivation of the demand curve, revealed preference theory, duality, and indirect utility function, expenditure function, choice under risk and uncertainty.

Theory of production– factors of production, and production function, forms of production function, cob-Douglas, CES and fixed coefficient function, returns to scale and returns to factors of production, laws of returns, duality and cost function, measure of productive efficiency of firms, technical and allocative efficiency, partial equilibrium versus general equilibrium approach, equilibrium of firm and industry.

Theory of value– pricing under different market structures, public sector pricing, marginal cost-pricing, peak load pricing, cross-subsidy free pricing and average cost pricing, pricing with incomplete information and moral hazard problems.

Theory of distribution– neo-classical distribution theories, marginal productivity theory of determination of factor prices, factor shares and adding up problems, Euler’s theorem, pricing of factors under imperfect competition, monopoly and bilateral monopoly, macro-distribution theories of Ricardo, Marx, Kaldor, Kalecki.

Welfare economics– inter-personal comparison and aggregation problems, public goods and externality, a divergence between social and private welfare, compensation principle, Pareto optimality, social choice and other recent schools, including coase and sen and game theory.

Part B quantitative methods in economics

Mathematical methods in economics– differentiation and integration and their application, optimization techniques, sets, matrices and their application in economics, linear algebra, and linear programming in economics and input-output model of Leontief.

Statistical and econometric methods-measures of dispersions and central tendency, regression, and correlation, time series, index numbers, sampling and survey methods, testing of hypothesis simple non-parametric tests, drawing of curves based on linear and non-linear functions, least square methods and other multivariate analysis. Analysis of variance, factor analysis, principal component analysis, discriminate analysis, income distribution, Pareto analysis of distribution, igonormal distribution, measurement of income inequality, Lorenz curve and Gini coefficient.

General economics II

Economic thought– mercantilism physiocrats, classical, Marxist, Keynesian, neo-classical, and monetarist school of thought.

The Concept of national income and social accounting– measurement of national income, interrelationship between 3 measures of national income in the presence of the Government sector and international transactions, environmental considerations, green national income.

Theory of employment, output, inflation, money, and finance– the classical theory of employment and output and neo-classical approaches, , analysis under classical and neo-classical analysis, Keynesian theory of employment and output. Post-Keynesian developments. The inflationary gap, demand- pull vs. cost-push inflation, the Philip curve and policy implication, classical theory on money, quantity theory of money, the neutrality of money, the supply and demand for loanble funds in financial markets, Keynes theory on demand for money.

Financial and capital market– economic development and finance, Financial markets, the stock market, gift market, banking and insurance, equity markets, the role of primary and secondary markets and efficiency, derivatives markets, futures, and options.

Economic growth and development– concepts and their measurements, characteristics of less developed countries and obstacles of their development-growth, poverty, and income distribution, theories of growth, classical approach, Adam Smith, Marx, and Schumpeter- neo-classical approach, Robinson, Solow, Kaldor and Harrods domar. Utilitarian and welfarist approach to social development and A K sens approach to economic development. The human development index and the human poverty index.

International economics– gains from international trade, terms of policy, trade, international trade and economic development-theories of international trade, Ricardo, Haberler, Heckscherohlin and Stopler-Samuelsson-theory of tariffs-regional trade arrangements.

The Balance of payments (BOP)– disequilibrium in BOP, mechanism of adjustments, foreign trade multiplier, exchange rates, import and exchange controls, and multiple exchange rates.

Global institutions- UN agencies dealing with economic aspects, world bank, IMF, WTO, multinational corporations.

General Economics III

Public finance– theories of taxation, optimal taxes and tax reforms, incidence of taxation, theories of public expenditure, objectives and effects of public expenditure, public expenditure policy and social cost-benefits analysis, criteria of public investment decisions, shadow prices of investment, unskilled labour and foreign exchange, social rate of discount, budgetary deficits, theory of public debt management.

Environmental economics– the design of environmental policy instruments, environmental values, environmentally sustainable development,  UN methodology of integrated environmental and economic accounting, green GDP, users and non-users values, option value, valuation methods, stated and revealed preference methods, pollution taxes and permits, collective action and informal regulation by local communities. Theories of exhaustible and renewable resources. International environmental agreements climatic change problems, tradable permits and carbon taxes, the Kyoto protocol.

Industrial economics– product differentiation and market concentration, market structure conduct and performance of firms, monopolistic price theory and oligopolistic interdependence and pricing, entry preventing pricing, research and development and innovation, market structure and profitability, micro-level investment decisions and the behaviour of firms,  public policy, and development of firms.

State, market and planning– planning regulation and market, indicative planning, decentralized planning, planning in a developing economy etc.

Indian economics

History of development and planning– the post- 1991 globalization, Alternative development strategies-goal of self-reliance based on import substitution and protection on stabilization and structural adjustments packages, fiscal reforms, financial sector reforms, and trade reforms.

Federal finance-constitutional requirements describing to fiscal and financial powers of the states, finance commission and their formulae for sharing taxes, financial aspect of Sarkaria commission report, the financial aspects of 73rd and 74th constitutional amendments.

Agricultural and rural developments strategies– technologies and institutions, land relations, and land reforms, rural credit, modern farm inputs, and marketing-price policy and subsidies, commercialization and diversification, rural development programmes including the development of economic and social infrastructure and new rural employment guarantee scheme, and poverty alleviation programmes.

India’s experience with urbanisation and migration– the process of growth of urban settlements, urban development’s strategies. different types of travelling flows and their impact on the economies of their source and destination,

Industry- strategy of industrial developments, industrial policy reforms, reservation policy relating to small scale industries, competition policy, sources of industrial finance, bank, share market, insurance companies, pension funds, non-banking sources and foreign direct investments, the role of foreign capital for direct investments and portfolio investments, privatization and disinvestments.

Labour-unemployment, under-employment, and employment, industrial relations, and labour welfare-strategies for employment generation-urban labour market, and informal sector employment, report of the national commission on labour, social issues relating to labour.

Foreign trade– salient features of India’s  composition, direction, and organization of trade, foreign trade, and recent changes in trade policy, the balance of payments, tariff policy, exchange rate, India and WTO requirements.

Money and banking– financial sector reforms, organization of India’s money market, changing roles of RBI, commercial banks, development finance institutions, foreign banks and non-banking financial institutions, Indian capital market and SEBI, growth in the global financial market and its connection with Indian financial sector.

Inflation– definition, trends, estimates, consequences, remedies, wholesale price index, consumer price index- components and trends.

Budgeting and fiscal policy-  tax, expenditure, budgetary deficits, pension and fiscal reforms, public debt management and reforms, fiscal responsibility and budget management act, black money and parallel economy in India definition, estimates, consequences, and remedies.

Statistics I objective type

Probability- classical and axiomatic definitions, the law of total probability, conditional probability, bayes theorem, discrete and continuous random variables, distribution functions and their properties.

Standard discrete and continuous probability distributions- bernouli, uniform, binomial, poisson, geometric, rectangular, exponential, norma, multinomial, laplace, negative binomial etc.

 Inversions, uniqueness and continuity theorems, laws of large numbers and central limit theorems for independent variables, moment and probability generating functions etc.

Statistical methods – compilation by collecting and presentation of charts, data, diagrams, and histogram, frequency distribution, measures of location, dispersion, skewness and kurtosis, association and contingency, curve fitting and orthogonal polynomials, regression- polynomial, linear, distribution of the correlation coefficient, partial and multiple correlation, intra class correlation, correlation ratio.

Standard errors and large sample tests, sampling distributions of the sample mean, variance, t, chi-square, and F, tests of significance based on them, small sample tests.

Numerical analysis– factorial representation of a polynomial, separation of symbols, sub-division of intervals, differences of zero, a concept of interpolation and extrapolation,

Inverse interpolation, a finite difference for different orders E and D operator’s numerical solutions of differential equations.

Computer application and data processing-basics of a computer, operations of a computer, software, hardware, RAM, ROM, LAN, WAN, basics of programming.

Statistics II objective type

Linear models– theory of estimation, estimable functions, error and estimation space etc, one way and two-way classification, fixed random, and mixed effects models etc.

Statistical inference and hypothesis testing– characteristics of a good estimator, estimation methods of maximum likelihood, minimum chi-square, minimum variance bound estimators, hypothesis testing etc.

Official statistics– national and international official statistics, NSO,- vision, mission, roles and responsibilities, NSC- need, constitution, role, functions, legal acts, etc, index numbers, sector-wise statistics, national accounts, population census, etc

Statistics III descriptive type

Sampling techniques-concept of population and sample, need of sampling, basic concepts, sampling and non-sampling error, subjective pr purposive of sampling etc, ratio, product, and regression methods of  estimation, estimation of population mean, comparison with simple random sampling, equal size cluster sampling-estimators of population mean and total and their errors, concept of multistage sampling and application, etc

Econometrics– nature, general linear model and extensions, ordinary least square, linear regression and stochastic regression, simultaneous linear equation model and generalization, etc

Applied science– index numbers, time series analysis-economic time series, different components, determination of trend. Exploratory time series analysis, detailed study of stationary processes, spectral analysis of weak stationary process etc.

Statistics IV descriptive type

 Operational research and reliability– definition and scope, models and solutions use of different criteria, transportation and assignment problems, decision-making in the face of competition, the analytical structure of inventory problems, queuing models, replacement models, PERT and CPM,  life-distributions, notions of aging etc.

Demography and vital statistics– sources of demographic data, census, registration, ad-hoc surveys, hospital records, completed life table and its main features, UN models life tables, measurement of fertility, measurement of mortality.

Survival analysis and clinical trial– the concept of time, order and random censoring, life tables, failure rate, estimation of survival function, two-sample problems, competing for risk model, parametric and non-parametric inference, data management, designs of clinical trials, reporting, and analysis.

Quality control– statistical process and product control, general theory and review of control charts for attribute and variable data, acceptance sampling plans for attributes inspection, single and double sampling plans etc

Multivariate analysis– normal distribution and its properties, maximum likelihood estimators of parameters, wish art matrix, classification problems etc.

Design and analysis of experiments- k design and analysis of variance for one and two-way classifications, need for the design of experiments, randomized block and Latin square design, analysis of missing data etc

Computing with C and R- basic of C, control statements, functions of C, the structure of C, and files of C

Preparation books:

  • Study material for ISS/IES kit/books/notes + model paper + previous year paper solution by Sourav Sir’s classes.
  • Study materials for ISS exam with new MCQ pattern in the paper I and II + coverage of all topics + additional analytical parts on paper III and IV + model papers all solved + English + general studies/ study kit/ notes by Sourav Sir’s classes.
  • NCERT history books set of class 6 to 10 English medium for UPSC prelims/main/IAS/civil service/IFS/IES/ISS/CDS/CISF/SCRA/and more paperback.
  • NCERT political science books set of class 6 to 12 for UPSC prelims/main/IAS/civil service/IFS/IES/ISS/CDS/CISF/SCRA/and more paperback.