Indian Economic/Statistical Services Exam is conducted by the Union Public Service Commission to recruit Grade IV officers for the Indian Statistical Service (ISS) and Indian Economic Service (IES). Indian Economic/Statistical Services Exam is generally conducted in the month of November.

ISS and IES are central government services which are involved in economic planning and analysis through state boards, planning commission and other government owned bodies in the country.

Out of several careers offered by the Government Sector, Indian Economic/Statistical Service offers a very attractive opening to graduates in Economics and Statistics. Selected candidates are placed in the planning commission, planning board, ministry of economic affairs,

National sample survey and other allied offices where specialists in economics and statistics are required.

**Application procedure**

Blank application forms and other particulars are published by UPSC in leading newspapers and Employment News generally in the month of June. A candidate seeking admission must apply to The Secretary, UPSC, New Delhi on prescribed application form. The application forms are available on payment from any of the designated post office throughout the country. Last date for submission of applications is generally in the month of July.

**Educational Qualification:** A candidate for Indian Economic Service must have obtained a degree with Economics or Statistics as a subject and a candidate for the Indian Statistical Service must have a degree with Statistics or Mathematics or Economics as a subject from any of the Universities incorporated by an Act

of the Central or State Legislature in India or other educational institutions established by an Act of Parliament or declared to be deemed as Universities under Section 3 of the Universities Grant Commission Act, 1956 or possess an equivalent qualification.

**Age: **A candidate should have attained the age of 21 years and must not have attained the age of 30 years on the 1st January of the year of examination

The upper age limit may be relaxed in respect of the Scheduled Castes, Scheduled Tribes, Other Backward Classes and such other categories of persons as may from time to time be notified in this behalf by the Government of India to the extent and subject to the conditions notified in respect of each category.

Plan of the examination: The examination comprises:

(i) Written Examination

(ii) Viva-Voca test of such candidates as may be called by the commission carrying a maximum of 200 marks.

Written Examination: The subjects of written examination, the marks allotted to each subject will be as under:

Sl no. Subject Max. Marks

A Indian Economic Service

1 General English 100

2 General Studies 100

3 General Economics- I 200

4 General Economics- II 200

5 General Economics- III 200

6 Indian Economics 200

B Indian Statistical Service

1 General English 100

2 General Studies 100

3 Statistics- I 200

4 Statistics- II 200

5 Statistics- III 200

6 Statistics-IV 200

*Each Paper is of 3 hours duration

*All question papers will be of conventional (essay) type

Standard of Papers

The standard of papers in General English and General Studies will be that of a graduate of an Indian University. The standard of papers of other subjects will be that of the Masters degree examination.

Examination Centres

Agartla, Ahmedabd, Aizawl, Allahabad, Bangalore, Bareilly, Bhopal, Chandigarh, Chennai, Cuttack, Delhi, Dharwar, Dispur (Guwahati), Gangtok, Hyderabad, Imphal, Itanagar, Jaipur, Jammu, Jorhat, Kochi (Cochin), Kolkata (Calcutta), Kohima, Lucknow, Madurai, Mumbai, Nagpur, Panaji (Goa), Patna, Portblair, Raipur, Sambalpur, Shillong, Shimla, Srinagar, Thiruvananthapuram, Tirupati, Udaipur and Vishakhapatnam.

General English

Candidates will be required to write an essay in English. Other questions will be designed to test their understanding of English and workmanlike use of words. Passages will usually be set for summary or precis.

General Studies

General Knowledge including knowledge of current events and of such matters of every day observation and experience in their scientific aspects as may be expected of an educated person who has not made a special study of any scientific subject.

The paper will also include questions on Indian Polity including the political system and the Constitution of India, History of India and Geography of a nature which the candidate should be able to answer without special study.

General Economics-I

Part A:

1. Theory of Consumer’s Demand: Cardinal utility Analysis; Marginal utility and demand, Consumer’s surplus, Indifference curve Analysis and utility function, Price income and substitution effects, Slutsky theorem and derivation of demand curve, Revealed preference theory. Duality and indirect utility function and expenditure function, Choice under risk and uncertainty.

2. Theory of Production: Factors of production and production function. Forms of Production Functions: Coble-Douglas, CES and Fixed coefficient type, Translog production function. Laws of return, Returns to scale and Return to factors of production. Duality and cost function, Measures of productive efficiency of firms, technical and allocative efficiency. Partial Equilibrium versus General Equilibrium approach. Equilibrium of the firm and industry.

3. 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. Marshallian and Walrasian stability analysis. Pricing with incomplete information and moral hazard problems.

4. 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.

5. Welfare Economics: Inter-personal comparison and aggregation problem, Public goods and externality, 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:

1. Mathematical Methods in Economics: Differentiation and Integration and their application in economics. Optimisation techniques, Sets, Matrices and their application in economics. Linear algebra and Linear programming in economics and Input-output model of Leontief.

2. Statistical and Econometric Methods: Measures of central tendency and dispersions, Correlation and Regression. Time series. Index numbers. Sampling and Survey methods. Testing of hypothesis, simple non-parametric tests. Drawing of curves based on various linear and non-linear function. Least square methods and other multivariate analysis (only concepts and interpretation of results). Analysis of Variance, Factor analysis, Principle component analysis, Discriminant analysis. Income distribution: Pareto law of Distribution, lognormal distribution, measurement of income inequality. Lorenze curve and Gini coefficient.

General Economics-II

1. Economic Thought: Mercantilism Physiocrats, Clasical, Marxist, Neo-classical, Keynesian and Monetarist schools of thought.

2. Concept of National Income and Social Accounting: Measurement of National Income, Inter relationship between three measures of national income in the presence of the Government sector and International transactions. Environmental considerations, Green national income.

3. Theory of employment, Output, Inflation, Money and Finance: The Classical theory of Employment and Output and Neo classical approaches. Equilibrium, analysis under classical and neo classical analysis. Keynesian theory of Employment and output. Post Keynesian developments. The inflationary gap; Demand pull versus cost push inflation, the Philip’s curve and its policy implication. Classical theory on Money, Quantity theory of Money. Friedman’s restatement of the quantity theory, the neutrality of money. The supply and demand for loanable funds and equilibrium in financial markets, Keynes’ theory on demand for money.

4. Financial and Capital Market: Finance and economic development, financial markets, stock market, gift market, banking and insurance. Equity markets, Role of Primary and Secondary markets and efficiency, Derivatives markets; Futures and options.

5. Economic Growth and Development: Concepts of Economic Growth and Development and their measurement: characteristics of less developed countries and obstacles to their development – growth, poverty and income distribution. Theories of growth: Classical Approach: Adam Smith, Marx and Schumpeter – Neo classical approach; Robinson, Solow, Kaldor and harrod Domar. Theories of Economic Development, rostow, Rosenstein-Roden, Nurske, Hirschman, Leibenstien and Arthur Lewis, Amin and Frank (Dependency school) respective role of the state and the market. Utilitarian and Welfariest approach to social development and A K Sen’s critique. Sen’s capability approach to economic development. The Human Development Index. Physical quality of Life Index and Human Povery Index.

6. International Economics: Gains from International Trade, Terms of Trade, policy, international trade and economic development – Theories of Internal Trade; Ricardo, Haberler, Heckcher-Ohlin and Stopleer-Samuelson – Theory of Tariffs – Regional Trade Arrangements.

7. Balance of Payments: Disequilibrium in Balance of Payments, Mechanism of Adjustments, Foreign Trade Multiplier, Exchange Rates, Import and Exchange Controls and Multiple Exchange Rates.

8. Global Institutions: UN agencies dealing with economic aspects, World Bank, IMF and WTO, Multinational Corporations.

General Economics-III

1.

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 benefit analysis, criteria of public investment decisions social rate of discount, shadow prices of investment, unskilled labour and foreign exchange. Budgetary deficits. Theory of public debt management.

2.

Environmental Economics: Environmentally sustainable development, Green GDP, UN Methodology of Integrated Environmental and Economic Accounting. Environmental Values: Users and non-users values; option value. Valuation Methods: Stated and revealed preference methods. Design of Environmental Policy Instruments: Pollution taxes and pollution permits, collective action and informal regulation by local communities. Theories of exhaustible and renewable resources. International environmental agreements. Climatic change problems. Kyoto protocol, tradable permits and carbon taxes.

3.

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

4.

State, Market and Planning: Planning in a developing economy. Planning regulation and market. Indicative Planning. Decentralised Planning.

Indian Economics

1.

History of Development and Planning: alternative Development Strategies – goal of self reliance based on import substitution and protection, the post 1991 globalisation strategies based on stabilization and structural adjustment packages: fiscal reforms, financial sector reforms and trade reforms.

2.

Federal Finance: constitutional provisions relating to fiscal and financial powers of the states, Finance Commissions and their formulae for sharing taxes, Financial aspect of Sarkaria Commission Report, financial aspects of 73rd and 74th constitutional Amendments.

3.

Poverty, Unemployment and Human Development: Estimates of inequality and poverty measures for India, appraisal of Government measures, India’s human development record in global perspective. India’s population policy and development.

4.

Agriculture and Rural Development 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 poverty alleviation programmes, development of economic and social infrastructure and New Rural Employment Guarantee Scheme.

5.

India’s experience with Urbanisation and Migration: Different types of migratory flows and their impact on the economies of their origin and destination, the process of growth of urban settlements; urban development strategies.

6.

Industry: Strategy of Industrial development: Industrial Policy Reforms; Reservation Policy relating to small scale industries. Competition policy, Sources of industrial finances. Bank, share market, insurace companies, pension funds, non-banking sources and foreign direct investment, role of foreign capital for direct investment and portfolio investment, Public Sector reform, privatization and disinvestments.

7.

Labour: Employment, unemployment and under-employment, industrial relations and labour welfare – strategies for employment generation – Urban labour market and informal sector employment, Report of National Commission on Labour, Social issues relating to labour e.g. Child Labour, Bonded Labour, International Labour Standard and its impact.

8.

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

9.

Money and Banking: Financial sector reforms, Organisation of India’s money market, changing roles of the Reserve Bank of India, commercial banks, development finance institutions, foreign banks and non-banking financial institutions, Indian capital market and SEBI, Development in Global Financial Market and its relationship with Indian Financial Sector.

10.

Inflation: Definition, trends, estimates, consequences and remedies (control): Wholesale Price Index, Consumer Price Index: components and trends.

11.

Budgeting and Fiscal Policy: Tax, expenditure, budgetary deficits, pension and fiscal reforms, Public debt management and reforms, Fiscal Responsibility and Budget Management (FRBM) Act, Black money and Parallel economy in India – definition, estimates, genesis, consequences and remedies.

Statistics-I

(i) Probaility

Elements of measure theory, Classical definitions and axiomatic approach. Sample space. Class of events and Probability measure. Laws of total and compound probability. Probability of m events out of n. Conditional probability, Bayes’ theorem. Random variables – discrete and continuous. Distribution function.

Standard probability distributions – Bernoulli, uniform, binomial, Poisson, geometric, rectangular, exponential, normal, Cauchy, hypergeometric, multinomial, Laplace, negative binomial, beta, gamma, lognormal and compound. Poisson distribution. Joint distributions, conditional distributions, Distributions of functions of random variables.

Convergence in distribution, in probability, with probability one and in mean square. Moments and cumulants. Mathematical expectation and conditional expectation. Characteristic function and moment and probability generating functions Inversion uniqueness and continuity theorems. Borel 0-1 law: Kolmogorov’s 0-1 law.

Tchebycheff’s and Kolmogorov’s inequalities. Laws of large numbers and central limit theorems for independent variables. Conditional expectation and Martingales.

(ii) Statistical Methods

1. Collection, compilation and presentation of data, Charts, diagrams and histogram. Frequency distribution. Measures of location, dispersion, skewness and kurtosis. Bivariate and multivariate data. Association and contingency. Curve fitting and orthogonal polynomials. Bivariate normal distribution. regression-linear, polynomial. Distribution of the correlation coefficient, Partial and multiple correlation, Intraclass correlation, Correlation ratio.

2. Standard errors and large sample test. Sampling distributions of x,s2, t, chi-squre and F; tests of significance based on them, Small sample tests.

3. Non-parametric tests-Goodness of fit, sign, median, run, Wicloxon, Mann-Whitney, Wald-Wolfowitz and Kolmogorov-Smirnov. Rank order statistics-minimum, maximum, range and median. Concept of Asymptotic relative effciency.

iii) Numerical Analysis

Interpolation formulae (with remainder terms) due to Lagrange, Newton-Gregory, Newton Divided different, Gauss and Striling. Euler-Maclaurin’s summation formula. Inverse interpolation. Numerical integration and differentiation. Difference equations of the first order. Linear difference equations with constant coefficients.

Statistics II

i) Linear Models

Theory of linear estimation. Gauss-Markoff setup. Least square estimators. Use of g-inverse. analysis of one-way and two way classified data-fixed, mixed and random effect models. Tests for regression coefficients.

ii) Estimation

Characteristics of good estimator. Estimation methods of maximum likelihood, minimum chi-square, moments and least squares. Optimal properties of maximum likelihood estimators. Minimum variance unbiased estimators.

Minimum variance bound estimators. Cramer-Rao inequality. Bhattacharya bounds. Sufficient estimator. factorisation theorem. Complete statistics. Rao-Blackwell theorem.

Confidence interval estimation. Optimum confidence bounds. Resampling, Bootstrap and Jacknife.

iii) Hypotheses testing and Statistical Quality Control

1. Hypothesis testing: Simple and composite hypothesis. Two kinds of error. Critical region. Different types of critical regions and similar regions. Power function. Most powerful and uniformly most powerful tests. Neyman-Pearson fundamental lemma. Unbiased test. Randomised test. Likelihood ratio test. Wald’s SPRT, OC and ASN functions. Elements of decision and game theory.

2. Statistical Quality Control: Control Charts for variable and attributes. Acceptance Sampling by attributes-Single, double, multiple and sequential Sampling plans; Concepts of AOQL and ATI; Acceptance Sampling by variables-use of Dodge-Romig and other tables.

iv) Multivariate Analysis

Multivariate normal distribution. Estimation of mean Vector and covariance matrix. Distribution of Hotelling’s T2-statistic, Mahalanobis’s D2-statistic, and their use in testing. Partial and multiple correlation coefficients in samples from a multivariate normal population. Wishart’s distribution, its reproductive and other properties. Wilk’s criterion. Discriminant function. Principal components. Canonical variates and correlations.

Statistics III

i) Sampling Techniques

Census versus sample survey. Pilot and large scale sample surveys. Role of NSS organisation. Simple random sampling with and without replacement. Stratified sampling and sample allocations. Cos and Variance functions. Ratio and Regression methods of estimation. Sampling with probability proportional to size. Cluster, double, multiphase, multistage and systematic sampling. Interpenetrating sub-sampling. Non-sampling errors.

ii) Design and Analysis of Experiments

Principles of design of experiments. Layout and analysis of completely randomised, randomised block and Latin square designs. Factorial experiments and confounding in 2n and 3n experiments. Split-plot and strip-plot designs. Construction and analysis of balanced and partially balanced incomplete block designs. Analysis of covariance. Analysis of non-orthogonal data. analysis of missing and mixed plot data.

iii) Economic Statistics

Components of time series. Methods of their determination-variate difference method. Yule-Slutsky effect. Correlogram. Autoregressive models of first and second order. Periodogram analysis. Index numbers of prices and quantities and their relative merits. Construction of index numbers of wholesale and consumer prices. Income distribution-Pareto and Engel curves. Concentration curve.

Methods of estimating national income. Inter-sectoral flows. Inter-industry table. Role of CSO.

iv) Econometrics

Theory and analysis of consumer demand-specification and estimation of demand functions. Demand elasticities. Structure and model. Estimation of parameters in single equation model-classical least squares, generalised least-square, heteroscedasticity, serial correlation, multi-collinearity, errors in variable model. Simultaneous equation models-Identification, rank and other conditions. Indirect least squares and two stage least squares. Short-term economic forecasting.

Statistics-IV

(i) Stochastic Processes

Specifications of a Stochastic Process, Markov chains, classification of states, limiting probabilities; stationary distribution; Random walk and Gambler’s ruin problem. Poisson process, Birth and death process; applications to Queues-M/M/I and M/M/C models. Branching Process.

(ii) Operations Research

Elements of linear programming. Simplex procedure. Pirnciple of duality. Transport and assignment problems. Single and multi-period inventory control models. ABC analysis. General simulation problems. Replacemnet models for items that fail and or items that deteriorate.

(iii) Demography and Vital Statistics

The life table, its constitution and properties. Makehams and Gompertz curves. National life tables. UN model life tables. Abridged life tables. Stable and stationary populations. Different birth rates. Total fertility rate. Gross and net reproduction rates. Different mortality rates. Standardised death rate. Internal and international migration: net migration.

International and postcensal estimates. Projection method including logistic curve fitting. Decennial population census in India.

(iv) Computer Application and Data Processing

(a) Computer Application

Computer system concepts: Computer system components and functions. The Central Processing unit, Main memory, Bit, Byte, Word, Input/Output Devices, Speeds and memory Capacities in computer systems.

Software concepts: Overview of Operating Systems, Types and Functions of Operating System, application Software, Software for multi-tasking, multi-programming, Batch Processign Mode, Time sharing mode, Concept of System Support Programme, Overview of Existing Software packages on Word Processing and Spreadsheets.

Overview of an application Specific Programme: Flow charts, Basics of Algorithm, Fundamental of design and analysis of Algorithm; Basics of data structure, Queue, Stack.

(b) Data Processing

Data processing: Digital Number System, Number conversions, Binary representation of integers, Binary representation of real numbers, Logical Data element like cjharacter, fields, records, files, Fundamentals of data transmission and processing incluidng error contro and error processing.

Data base management: Data Resource management. Data base and file organisation and procesing. (a) Direct, (b) Sequantial, (c) Indexed Sequential file. Concepts of Client Server architecture, Data Base Administrator. An overview of DBMS software.

On 3rd December 2011

Indian Economic/Statistical Services Exam is conducted by the Union Public Service Commission to recruit Grade IV officers for the Indian Statistical Service (ISS) and Indian Economic Service (IES).

Date of Notification : 30th July 2011

Last Date for Receipt of Applications either by hand or by Post/Speed Post or by Courier : 29th August 2011

Date of Examination : 03rd December 2011

Age Limits : The candidate must have attained the age of 21 years and must not have attained the age of 30 years on the 1st January, 2011 i.e. he/ she must have been born not earlier than 2nd January, 1980 and not later than 1st January, 1990. The Upper age limit is relaxable for candidates belonging to scheduled castes/scheduled tribes/ other backward classes and certain other categories.

Educational Qualification:

Post-graduate degree in Economics/ Applied Economics/ Busines Economics/ Econometrics and a candidate for the Indian Statistical must have obtained a Post-Graduate degree in Statistics/ Mathematical Statistics/ Applied Statistics from a recognised University or equivalent.

Candidates who are studying in final year Degree Course and have yet to pass final year degree examination or equivalent examination can also apply for examination, but they will be required to submit proof of passing by the specified dates published in Commission’s Notice for Examination.

Duration of Examination : 03 Days

Physical Standards :

Candidates must be physically fit according to physical standards for admission to Indian Economic Service/Indian Statistical Service Examination, 2011 as per Regulations.

How to Apply :

This application form along with an Information Brochure containing general instructions for filling up the form, an acknowledgement card and an envelope for sending the application is obtainable from the designated Head Post Offices/Post Offices throughout the country and may be purchased against cash payment of Rs.20/-

Candidates must use only the form supplied with the Information Brochure. Form should be purchased from the designated Post Offices only and not from any other agency. Candidates must not use photocopy/ reproduction/ unauthorisedly printed copy of the Form. This will entail rejection. Each form can be used only once and for only one examination.

Note : In case candidates have any difficulty in obtaining Application form/ central recruitment fee stamp from any designated head post offices, they should immediately contact concerned postmaster or UPSC’s “Forms Supply Monitoring Cell” Over Telephone No. 011-23389366/ Fax No. 011-23387310.

Address : Union Public Service Commission

Dholpur House, Shahjahan Road, New Delhi – 110069

Website : www.upsc.gov.in