Estimation and inference in two variable model; OLS assumption; Extension of the two variable model; OLS assumption : autocorrelation, multicollinearity, and heteroskedasticity, models with limited dependent variables : LPM, log it, and probit; Panel data modelling: fixed effect and random effect models; Time series analysis : introduction to non-stationarity, AR and MA modelling.

This forms the second part of two-part game theory course intended for the masters program at IIT Delhi. After formalization of standard game theory models and some examples in game theory 1, in this course, we introduce concepts of cooperative game theory and advanced topics such as mechanism design and implementation theory. After studying this course the students are expected to be comfortable in reading the journal articles on game theory, mechanism design, and implementation theory and also develop fresh models to close the gaps in the existing literature or ideate problems in these fields.

This course aims to introduce the students to formalization of individual decision making and various facets of it under different perspectives- when the individual is a consumer (consumer’s choice, demand, dilemmas etc.) or when she is a producer (profit maximization or cost minimization, characterization of different market structures under various degree of market power). Finally, the course discusses different aspects of decision-making under uncertainty.

Micro versus macroeconomics. Theory of consumer behavior and demand. Consumer preferences. Indifference curve. Consumer equilibrium. Demand function. Income and substitution effects. The Slutsky equation. Market demand. Elasticities. Average and marginal revenue. Revealed preference theory of firm. Production functions. Law of variable proportions. Laws of return to scale. Isoquants. Input substitution. Equilibrium of the firm. Expansion path. Cost function. Theory of costs. Short Run and Long run costs. Shape of LAC. Economies and diseconomies of scale. Market equilibrium under perfect competition. Equilibrium under alternative forms of market. Monopoly: pure and discriminating. Monopolistic competition. oligopoly.

The aims of this course are to:
(i) equip students with understanding of the most important mathematical techniques used in modern economics;
(ii) illustrate the use of these techniques by applying them to various well-known economic models;
(iii) complement the postgraduate microeconomic and macroeconomic theory courses.
 

Primary objective of this course is to introduce students with the process of economic growth and the long run sources of differences in economic performances across nations. Emphasis will be placed on developing theoretical toolkit in understanding growth mechanics. It is intended that this course will make students learn some of the workhorse models in modern macroeconomics, namely - Solow-Swan model, endogenous growth models, Ramsey and dynamic macroeconomic models, heterodox models, etc.