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Writer's pictureMA ECONOMICS ENTRANCE EXAM
Nov 11, 202110 min read

Delhi School Of Economics - a beginner's guide

Updated: Jun 28, 2022

If you have ever dreamt of doing Master in Economics from any prestigious college, the first few names that would cross your mind are ISI, DSE, IGIDR, etc. But getting admission into these prestigious colleges is no easy task and things get even more difficult when we get to know about their limited number of seats(approximately 350 combined in all three colleges).

So without scaring you anymore, let me start with the preparation plan for DSE.


There are mainly 6 subjects on which your proficiency is tested in the entrance examination, namely - Microeconomics, Macroeconomics, Mathematics, Statistics, Econometrics, and a bit of International Trade as well.

these 6 subjects are going to be the main pillar and at the same time going to lay the foundation for the rigorous curriculum of DSE that you will be facing during your Masters.

let's get straight dive into the subject-wise preparation plan, sources, and strategy.


NOTE:- All the notes provided below belong to Ravit Thukral classes. check more about them here:- https://ravitthukralclasses.com/about-us


1)MICROECONOMICS:- Suppose you are learning Chemistry and you don't even know the chemical formula of Water(H20), this would be the same as getting your hands on Economics without micro-economics. Now after knowing its significance, we should better start understanding how to approach it. Everything is important in the micro portion but still, I would like to mention some of the dearest topics of DSE:-

  • INDIFFERENCE CURVE ANALYSIS - You should know how to derive this from a given utility function, how its movement in the 2-D plane affects the utility of an individual, how to draw it from scratch for various goods like perfect substitutes, perfect complement, etc. (PLEASE! NEVER TRY TO MUG UP THE SHAPE OF ICs, otherwise you will be bound to suffer a lot of difficulties while encountering new cases because DSE knows very well how to play with this). for finding demand curve graphically you can refer to (from Ravit Thukral classes):- 1)https://youtube.com/playlist?list=PLrcU_RaZhWYjqsUn-dAtdHJak_CnsYOWP


  • MARKET STRUCTURE- Clarity and working of various market structures like Perfectly Competitive Market, Monopoly, Imperfect Competition( Cournot, Bertrand and Stackelberg model ). how the market operates (equilibrium point) under various market structures are some of the important things to be remembered. link to understand basics: 1) https://www.youtube.com/watch?v=jHc4Sywpdqc&list=PLQeaYsjFGUzglu-_56N_7BI_httOgfxna

  • GENERAL EQUILIBRIUM - This is one the most beloved topic of DSE and every year they give at least 5 to 6 questions from this. You can't afford to leave this topic at any cost, leaving this would haunt you in your dreams. Pareto efficiency and competitive equilibrium are two main components of this topic. Try to get clarity and at the same time difference between the two as much as you can. also how to deal with the Edgeworth box while finding out equilibrium point and price ratio for various scenarios like the lexicographic-lexicographic case, substitute-substitute case, complement-complement case etcetera, and many more. link to practice: https://www.youtube.com/watch?v=DHw6rEZtD6E&list=PLUJGfL_499TKsujAH6aeObLCw5VvSjzAx

  • GAME THEORY- This topic is also as important as general equilibrium. you need to understand the meaning of Nash equilibrium and its application in pure strategy and mixed strategy games. various games like hotel modeling beach, coin allocation, second price sealed bid auction, simultaneous move games, sequential games are to be given utmost importance. I have attached the link but don't try to cover the complete playlist, do only those topics that I have mentioned above. link to understand basics: (notes I have shared for this is a combination of both duopoly and game theory) https://www.youtube.com/watch?v=NSVmOC_5zrE&list=PLKI1h_nAkaQoDzI4xDIXzx6U2ergFmedo



  • RISK AND UNCERTAINTY - Focus on knowing the difference between risk-loving, risk-averse and risk-neutral person by seeing their utility function. how utility from the expected price is different from the expected utility in gambling.

  • PUBLIC AND PRIVATE GOOD:- You should know what type of qualities are possessed by these goods and how they are different from each other. What are the conditions in which public good is provided? you won't find any specific video lectures related to this, hence you are advised to complete these things from Varian itself.


  • TAXATION AND EXTERNALITIES:- You should know how the market behaves in presence of any type of externality and how taxation is used as a tool by the government to control these things(by providing subsidies or by imposing tax)

Reference book:-

  • Hal Varian:- Stick to this book right from the beginning to the end. Make this your bible for microeconomics. I cannot emphasize more how much this book is important from the DSE point of view. If you are extremely short on time, try to solve at least the first 8 chapters of this book and if you have enough time then you must go through all the chapters mentioned above.

Reference link for video lectures:-

 

2)MACROECONOMICS:- The types of questions that are asked in DSE from the macro portion cannot be found in any particular textbook, so don't waste your time searching for the same.

  • Solow model

  • IS-LM framework and crowding out

  • AD-AS framework

  • Derivation of AD-AS from IS-LM

  • Derivation of AS curve from Labour Market

  • Effect of Fiscal and Monetary policy in Classical as well as Keynesian economics (both in short-run as well medium run)

  • Price setting and wage-setting equation

  • Quantity theory of money (Irwin Fisher equation)

  • Open-Economy Macroeconomics(Mundell Fleming model)

  • Exchange rate overshooting

  • Parity conditions( both covered as well as uncovered)

  • Marshall-Lerner condition and J-curve effect

  • Philip's curve(both short run and long run) and its shift because of change in components of aggregate demand or change in money supply

  • Okun's Law

  • Slight understanding of Tobin's q-theory, Seigniorage, automatic stabilizers in case of economic shock(like proportional taxation)

  • intuitive understanding of the difference between real and nominal exchange rate, real interest rate and nominal interest rate

Reference books:-

  • Olivier Blanchard:- Read chapter no. 3 to chapter no.10 thoroughly without skipping even a single page. Try back questions of these chapters as well.

  • Dornbusch and Fischer:- Solve the back questions of relevant chapters and go through the chapters you didn't find/understand in/from Blanchard.(this one is more mathematical as compared to all other books

  • Richard T. Froyen:- This is one of the finest books I have come across for Classical Economics and Open Macroeconomics. Read chapter number 3,4,14,15

My Notes:-

Reference link for video lectures:-

 

3)STATISTICS:- Every year you can expect 7 to 8 questions from various topics such as:-

  • Permutation and Combination- Counting technique

  • Probability- Conditional probability, total probability theorem, Bayes' theorem, intuitive as well as a mathematical understanding of Independent events and mutually exclusive events.

  • Discrete random variable and probability mass function

  • Important discrete distributions- binomial, hypergeometric, negative binomial, Poisson probability distribution.

  • Continuous random variable and probability density function

  • Important continuous distributions- standard Normal distribution, exponential distribution

  • Cumulative distribution function

  • Expectation and its properties

  • Variance and its properties

  • Covariance and Correlation coefficient( their properties as well)

  • Normal approximation of binomial distribution under special conditions

  • Joint probability distribution- both discrete as well continuous

  • conditional expectation and conditional variance

  • Random sampling and central limit theorem

  • Confidence interval

  • Inferential statistics:- a) inferences concerning population mean and population proportion from a single sample b) inferences concerning the difference between the population mean and the difference between population proportion based on two samples

Reference book:-

  • Jay L. Devore:- This is the only book that you need to master, once you are done with this, almost all the questions can be cracked very easily. For chapter 1 to chapter 6:- do the solved examples as well as back questions once you are done with the theory of that particular chapter and for chapter 7 to chapter 10:- read these chapters very carefully and do the solved examples only, that will suffice but in case if you have some spare time then you can solve the chapter end questions but that is not compulsory.

Reference link for video lectures:-

  • P&C - Cover this portion from this playlist if you are completely new to this topic. watch starting 11-12 videos and solve the mentioned DPPs as well. don't complain about the fact that he is making you solve JEE questions, believe me, once you are done with these questions, you will be able to solve DSE questions very easily. https://www.youtube.com/watch?v=R2SKbdRdqSk&list=PLbu_fGT0MPsuRrJKn3JvmYZSMq2GH3xv1

  • Probability - this playlist is specifically for those who have not encountered probability in detail, Sameer Sir will help you to understand the basics and eventually to a higher level without much difficulty. watch starting 10-11 videos and try to participate in the quiz that is there in this playlist. https://www.youtube.com/watch?v=oEvF9O2bE1s&list=PLbu_fGT0MPstyDT_hpoD4Ef9RYQDXt-FX

  • If you are completely new to statistics, then this playlist will walk you through the basics of statistics and eventually to higher concepts as well. but first please complete P&C and probability from JL Devore or from the playlist that I have mentioned above because that portion is not covered in this playlist. https://www.youtube.com/watch?v=uhxtUt_-GyM&list=PL1328115D3D8A2566

 

4)ECONOMETRICS:-This one is a very controversial subject in DSE entrance, sometimes they ask 16-17 questions (DSE-2016) and sometimes not even a single question but generally, you can expect 5 to 8 questions on an average. many students take this one for granted which is not advisable at all because this may cause serious damage to your rank :(. Topics to be given utmost importance:-

  • Z, T, Chi-squared, F distribution

  • Linear regression model

  • Assumptions of CLRM

  • OLS estimator and their efficiency

  • Proof of unbiasedness and minimum variance

  • Coefficient of determination

  • Hypothesis testing

  • Type-1 and Type-2 error and their graphical interpretation

  • ANOVA ( analysis of variance)

  • Scaling of variables involved in linear regression

  • Standardized regression

  • Functional forms:- a) log-log model b) lin-log model c) log-lin model, d) reciprocal model

  • Interpretation of coefficient involved in various functional forms

  • Regression through origin

  • Criteria to compare two different models based on their coefficient of determination

  • multiple regression model

  • Dummy variables

  • Multicollinearity

  • Heteroscedasticity

  • Autocorrelation

  • Specification error (underfitting and overfitting the model)

  • Adjusted coefficient of determination

  • Regression of (Y on X) and (X on Y)

Reference book:-

  • Damodar N. Gujarati:- This is going to be your bible for econometrics. Sometimes questions can be seen directly from this book. So do this book wisely. chapter no. 1 to chapter no. 13 will do the needful. do the back questions as well which seem relevant but don't waste time doing very lengthy questions(as you will go through past year paper, you will get to know the type of questions you need to attempt)

My Notes:-

  • This notebook has been designed in the same sequence as the topics I have mentioned above and covers almost all the topics that are required from the entrance point of view. The first 5 to 6 pages belong to the statistics portion required to understand econometrics.

Reference link for video lectures:-

  • He is an Assistant Professor in Gargi college and has covered almost all topics directly from Gujarati itself. If you are just starting out and finding Gujarati a little bit difficult then you can start with his videos and then you can go for reading Gujarati. https://pinkprofessor.org/lecture-detail.php?id=Mg==

Practice questions:-

 

5)MATHEMATICS - let me put this in a very simple way, if you are looking for a single source to get your hands smooth on this, then I am really very SORRY! because the complete syllabus of mathematics for DSE is very vast and hence we need to approach it accordingly.

  • CALCULUS- Many people would suggest going with Sydsaeter and Hammond, but I wouldn't go with that because of the simple reason because that book would teach you the theory part very well and problem-solving up to some extent but the type of question DSE asks in entrance can't be cracked just by solving that book. So I would suggest completing this portion from the Unacademy youtube channel, they have beautifully made the playlist of each and every chapter along with the practice questions and quizzes.


  • LINEAR ALGEBRA- One and only playlist for this chapter is by MIT professor, Gilbert Strang. He has covered this whole chapter beautifully in a very intuitive manner. you don't need to cover the whole playlist, cover the initial 12-13 lectures thoroughly without skipping any lecture, then look for the topics that are left and complete them from the playlist itself. link to the playlist: https://www.youtube.com/watch?v=QVKj3LADCnA&list=PL49CF3715CB9EF31D
















Reference book:-



 

6)INTERNATIONAL TRADE:- This subject is not as important as compared to the other five but sometimes they ask 1 to 3 questions in general but that too, not every year. topics such as:-

  • Comparative advantage

  • Absolute advantage

  • opportunity cost

  • Gains from trade

  • production possibility frontier curve

  • Ricardian theory of international trade

  • heckscher-ohlin theory of international trade

Reference link for video lectures:-

 

POINTS TO REMEMBER:-

  • How well you solve the past year(2004-2021) will decide your fate in DSE entrance. (can't emphasize more how much past years are Important-solve them at least 3 to 4 times)

  • Revision is as important as doing the past year.

  • Try to understand all possible ways to solve a particular problem, you never know which method would strike you during the examination.

  • Refer to this excel file in case you need extra material related to any particular topic. believe me, it has everything you need for preparation. you just need to look for it inside this excel file. (avoid editing it)

  • Message us in case you are stuck, we will try to solve it at the earliest


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Connect to Ravit Thukral on Linkedin:-https://www.linkedin.com/in/ravitthukral



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4 Comments

Harshad Rahangdale
Harshad Rahangdale
Mar 03, 2022

Thank you so much for basic to advance information for DSE preparation this information really helpful for us who preparing for entrances. Please share information for ISI MSQE preparation Guidance

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Riya Suri
Riya Suri
Dec 08, 2021

Thankyou for this in-depth guidance...very insightful!

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SHARON PHILIP
SHARON PHILIP
Nov 24, 2021

Thank you so much for the guide brother. I hope you are doing good and fine. Keep being awesome.

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MA ECONOMICS ENTRANCE EXAM
MA ECONOMICS ENTRANCE EXAM
Nov 27, 2021
Replying to

Thank you, Sharon! For your kind words. Stay safe :)

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