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IIT Jam Economics syllabus
Microeconomics
Consumer theory: Preference, utility and representation theorem, budget constraint, choice,demand (ordinary and compensated), Slutsky equation, revealed preference axioms
Theory of production and cost: Production technology, isoquants, production function with one and more inputs, returns to scale, short run and long run costs, cost curves in the short run and long run
General equilibrium and welfare: Equilibrium and efficiency under pure exchange and production,welfare economics, theorems of welfare economics
Market structure: Perfect competition, monopoly, pricing with market power, price discrimination (first, second and third), monopolistic competition and oligopoly
Game theory: Strategic form games, iterated elimination of dominated strategies, Nash equilibrium, mixed extension and mixed strategy Nash equilibrium, examples: Cournot, Bertrand duopolies,
Prisoner's dilemma
Public goods and market failure: Externalities, public goods and markets with asymmetric information (adverse selection and moral hazard)
Macroeconomics
National income accounting: Structure, key concepts, measurements, and circular flow of income
- for closed and open economy, money, fiscal and foreign sector variables - concepts and measurements
Behavioural and technological functions: Consumption functions - absolute income hypothesis, life-cycle and permanent income hypothesis, random walk model of consumption, investment functions - Keynesian, money demand and supply functions, production function
Business cycles and economic models (closed economy): Business cycles-facts and features, the Classical model of the business cycle, the Keynesian model of the business cycle, simple
Keynesian cross model of income and employment determination and the multiplier (in a closed economy), IS-LM Model, Hicks' IS-LM synthesis, role of monetary and fiscal policies
Business cycles and economic models (open economy): Open economy, Mundell-Fleming model, Keynesian flexible price (aggregate demand and aggregate supply) model, role of monetary and fiscal policies
Inflation and unemployment: Inflation - theories, measurement, causes, and effects, unemployment- types, measurement, causes, and effects
Growth models: Harrod-Domar, Solow and Neo-classical growth models (AK model, Romer model and Schumpeterian growth model)
Statistics for Economics
Probability theory: Sample space and events, axioms of probability and their properties, conditional probability and Bayes’ rule, independent events, random variables and probability distributions, expectation, variance and higher order moments, functions of random variables, properties of commonly used discrete and continuous distributions, density and distribution functions for jointly distributed random variables, mean and variance of jointly distributed random variables, covariance and correlation coefficients
