How to crack DSE
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without coaching?
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av Ravit Thukral
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M.A. Economics (DSE)
Our Agenda
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Subject wise analysis
Micro, Macro, Maths, Stats, Econometrics and Game Theory
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How to prepare?
E- Resources, Which books to refer?
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Important topics & Few examples
Based on our assessment of past years.
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Preparation Tips
How to manage time, how to deal with a
particular question etc..
Microeconomics
Important Topics
1. Utility Maximisation
• How to draw ICs
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• Derive Marshallian and Hicksian demand functions
• Properties of Lexicographic preferences
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2. Monopoly
3. General Equilibrium
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Link to- General Equilibrium Tutorial on YouTube
4. Long and short run competitive equilibrium
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Refer Osborne's economics tutorials
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Books:
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• Intermediate Microeconomics by Hal R. Varian
• Microeconomic Theory by Walter Nicholson and fathers day
Christopher M Snyder (Ch-3 to Ch-15)
• Microeconomic Analysis by Hal R. Varian
Example
Source: 2017 DSE Entrance Exam
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Lexicographic Preferences
(Dictionary Order Preferences)
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Refer YouTube video “How to crack DSE
without coaching” for the complete
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Macroeconomics
Important Topics
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1. IS-LM
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2. Solow Model
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3. Mundell-fleming model
4. Open economy and exchange rate overshooting
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Books:
• Dornbusch, Fischer and Startz
• Blanchard and Johnson
Statistics & Econometrics
Important Topics
1. Distributions: Binomial, Uniform, Poisson, Geometric and Normal Distribution
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2. Bayes’ rule and conditional probability (Refer This YouTube video for some important past year problems of DSE)
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3. Properties of CDF
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Refer: Harvard University Stat 110 course
1. In econometrics, everything from Ch-2(Linear regression) to Ch-13 (Specification Bias) of Basic Econometrics by
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Damodar Gujarati is important.
2.
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Refer DSE 2016 question paper for practicing. It had more than 15 questions from econometrics and every question’s
answer could be found in Gujarati.
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Books:
• Probability and statistics for Engineers by Jay L. Devore
• Introduction to Probability by Joseph Blitzstein
• Probability and Statistics by DeGroot, M.H. & M.J. Schervish
Example
Source: 2010 DSE Entrance Exam
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Solution
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Refer YouTube video “How to crack DSE
without coaching” for the complete
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Game Theory
Important Topics
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1. Cournot and Bertrand model
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2. Second price sealed bid auction
3. Location game (Hotelling model)
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Refer: Game Theory 101 lectures on YouTube and
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Osborne's economics tutorials
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Books:
∙ An introduction to Game Theory by Martin J. Osborne
∙ Microeconomic Theory by Walter Nicholson yes
& Christopher M Snyder
Example
Game Theory: Second Price sealed bid Auction
Source: 2017 DSE Entrance.
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Solution
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● An example of Second Price Auction. (Notice that the price paid by winner is
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second highest bid).
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● Finding Best Response for the first bidder (b1), assume second bidder bids
some amount b2, unknown to individual 1.
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3 possible cases.
● b2 > v1
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● b2 = v1
● b2 < v1
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● Notice that in all 3 cases, it is optimal for bidder 1 to bid exactly b1 = v1.
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● As both players are symmetric, second player will follow same strategy i.e.
b2= v2.
Refer YouTube video
“How to crack DSE without coaching”
for the complete solution.
Mathematics
Important Topics
1. Linear Algebra: Linear (in)dependence, my name is khan and I
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Rank and Span
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Refer Linear Algebra lectures of Prof. Gilbert Strang, MIT
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2. (Quasi) concavity and (Quasi) convexity, definitions & properties
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3. Continuity and Differentiability
4. Basic Real Analysis: Metric spaces and Convergence & Divergence
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and their properties
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Books:
• Sydsaeter and Hammond
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• Fundamental methods of mathematical economics by Alpha Chiang
• Ch-1 of A First Course in Optimization Theory by Rangarajan K.
Sundaram
Refer Osborne's Mathematics Tutorials
Example
Source: 2018 DSE Entrance.
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Refer YouTube video youtube.com/channel Mathematics
“How to crack DSE without coaching” for
How important definitions and
the complete solution.
properties are
Important Topics
Based on our assessment of part year papers, following topics can’t be ignored while preparing for DSE
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General Equilibrium
Solow Model
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Linear Dependence and
Independence Dummy Variables
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(Quasi) Concavity
(Quasi)Convexity av Binomial, uniform &
normal distribution
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IS-LM, Open Economy-
Mundell-fleming model
Cournot & Bertrand Model
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Time Management
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Most important art to crack any exam
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DSE Exam Pattern
As per 2019
guidelines
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• M.A. Entrance exam of DSE contains 50
questions
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• Total Time: 2 hours
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•
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Each question carries 4 marks
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• Negative marking
• Mode: Online in the center allotted to you by DU
Three round strategy
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● Round 1: Attempt all the questions once without
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giving a second try if you don’t get the answer.
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● Round 2: go back to the questions you could not
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solve in the first attempt and give them the second
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● Round 3: You might not get time to go for the 3rd
round but if you do, try solving the questions left
unanswered for the third time.
Tips and points to remember
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❖ Solve all the past year problems.
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❖ Do not look at the solution without trying at least twice.
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❖ Most obvious thing to do during exam is to check options cleverly.
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❖ Always pay attention to the details and read the questions carefully (with no
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presumptions about a question).
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Thank You
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• Follow my blog on quora for interesting
questions and their solutions TalkEcon
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• My YouTube channel Ravit Thukral
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• Facebook group for M.A. Economics
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Entrance discussion.
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• Contact: [email protected]
