Applying for PhD in Economics

Writer: Kalyani

Kalyani completed her Master's from CESP, JNU and worked as a Research Associate at the Indian School of Business, Hyderabad. She got fully funded PhD offers from the University of Pittsburgh, Purdue University, University of Arizona and University of California, Davis. She will be joining UC Davis.

Recently, I applied extensively to economics PhD programs in the US and some in Europe. A lot of people asked me about my experience and I found a common thread in most of the conversations – how do I shortlist universities? Is my GRE score good enough? Should I apply to economics or public policy programs? This and many more common queries led me to write this blog post, where I try to present a guide for preparing your PhD applications, a process that normally can be quite panic-ridden and stressful. Some of these tips are generic and applicable to all PhD programs (regardless of the subject), but mostly I write from the perspective of an Indian student applying to economics PhD programs in the US.

1. Proper research experience: Once you have decided to apply for an economics PhD, you need to figure out your research interests within economics. A good way to start is to ask the broad questions – Micro or Macro? Theory or Empirics? Mainstream or Heterodox? Of course, you can work in intersections of two or more areas, but you need to have a fair idea before applying. The reason I stress on this is that this would be your main criteria for shortlisting universities, for writing your Statement of Purpose (SOP), and ultimately for universities to decide whether you are a good fit for them.

The way to really know your interests is to try your hand at research. You may already have a fair idea through your master’s courses, your favorite professors, and the kind of papers you have already read. Some universities also make their students write term papers or short projects as part of the master’s coursework (this is the norm in JNU, where I did my MA, and it really helped me narrow down my interest areas and professors that I went to for guidance). I also know of some students who work with professors on research projects, either as research assistants or co-authors, during their master’s (summer intern or year-around). Landing such a research gig and managing it with your coursework can be difficult, but not impossible.

Alternatively, you can consider working as a full-time Research Assistant (RA) with an organization or a professor after completing your MA. I worked with two professors at the Indian School of Business (ISB) in Hyderabad for two years, and honestly it opened my eyes about the world of academia. It taught me a lot of skills that are important in research like networking, getting data sources, peer feedback, and working with statistical software, that I had limited or no exposure to during my master’s. Working as a full-time researcher also allowed me to attend conferences, do fieldwork, take up courses, and basically gave me a lot of substance for SOP. Whether full-time or part time, good quality research experience is crucial for applying to PhDs – not just as a bullet on your CV, but also for you to be confident about whether a PhD is ideal for you, the kind of research you want to do, and where you want to apply.

2. Mentor and peer network: Just like writing a research paper, applying to PhDs is not a solo process. My professors at ISB and JNU really helped me understand the applications ballgame – helping me shortlist universities, reaching out to their network of professors in the universities I applied to, and allowing me some time off during the application months. Of course, in most cases these professors will also write you a letter of recommendation (LOR), which is a crucial part of your admissions. So, keep in touch with your professors, tell them about your interests, and remind them about upcoming deadlines for submitting the LORs. Even though most universities need only three letter-writers, arrange for four because there can be constraints and someone may refuse at the last moment (e.g. some professors don’t write more than six letters for one student, some don’t write letters for two people applying to the same department).

Another important benefit of being in a research network is that you can co-author papers together, either with your professors or your peers (more on writing samples later). I benefitted a lot from my fellow RAs at ISB who were applying in the same cycle. We would bounce ideas off each other, keep ourselves motivated, proof-read drafts, remind about application deadlines, and drown in our misery together.

3. University and program search: I cannot stress enough about starting early on the university search. Ideally, the guiding factor for shortlisting a university should be your research fit. I followed the thumb rule that there should be at least 3 professors in that department working in my interest areas, went through their papers and tried to figure out if I would be happy working with them. Other factors that you can consider are rankings, location, job market candidates’ work, and placement records. Depending on your interests, you can also consider applying to econ-allied programs like agriculture and resource economics, public policy, behavioural economics, economics track within the business school etc. However, these programs are fewer in number and generally have a lower intake than econ programs, so think about the tradeoff and choose wisely.

The university search can be time-consuming so start as early as possible – at least 3-4 months before the application season opens in September, which is the norm for most US universities. Whenever you shortlist a university, remember to note down the deadline and the application requirements (they can vary a lot across universities)! If possible, discuss this list with your professors, maintain a feedback process, and feel free to modify the list as you go along.

4. Writing sample & SOP: I have put these items under one head because these are the two main writing tasks in your application, and ideally your writing sample should feed into your SOP. A writing sample is nothing but a piece of original academic writing that may be an individual piece of work eor co-authored. It does not have to be published, but it should be at a reasonably advanced stage of work, e.g. it should at least have preliminary results (in case of an empirical paper). You can even use your master’s dissertation (if you had one) if you think it fits the bill.

Now a writing sample is actually not mandatory for applying; in fact many universities do not even allow space to attach a sample, and some clearly mention that they will not look at samples even if you send one. But the reason I stress on a writing sample is because it gives your letter writers something concrete to write about in your LOR, and also gives you good material for your SOP. The SOP is a mandatory requirement for all US universities and I strongly suggest that you highlight the takeaways/results from your writing sample as evidence of your research skills and interest areas.

5. Math/ Econ coursework: Your academic profile is an important part of your application. Particularly for econ PhDs, I have heard from professors in top ranked universities that strong math coursework is a necessary condition for admission. Basically, your chances are much better if you have some or all of the following courses on your transcript – real analysis, linear algebra, calculus, probability, and statistics. Even if you could not take them at your undergrad/MA institution, you can take certified courses on Coursera or MIT open courseware to fulfill that requirement. If you are working as RA at a university, you can look up the graduate coursework and audit the math courses there, if your institute permits.

If you are from a science or engineering background and already have math courses, then you can invest in econ coursework – microeconomics, macroeconomics, and econometrics at the graduate level. Whether or not you add new courses to your profile, make sure to mention your math coursework (if you have an econ background) and econ coursework (if you have a non-econ background) in your SOP.

6. GRE and TOEFL: GRE is a standard requirement in all master’s/ PhD applications so some people even take it a year or two before they actually intend to apply. It is a well-known fact that Econ departments focus on the quantitative portion of the GRE more than any other section, so try to maximize your quant score. In any case, you need to score above the 90^th percentile in quant to be able to make the cut for any Econ program, and the top programs often need a perfect quant score. If your first attempt was unsuccessful, by all means take the exam again (I did too), but allow enough time for that. For tips on cracking the GRE, you can refer to this (an earlier EurekaWow post!) The TOEFL is relatively easier than the GRE and some universities even waive it if your education so far has been in English, so check the TOEFL requirement for each university before sending your report.

7. Resume: This is probably the most straightforward requirement of all. Just remember to make an academic CV (they are a bit different from corporate CVs), highlighting your academic and research experience more than your industry experience (if applicable). The CV on any graduate student/ job market candidate/ professor’s webpage will give you a fair idea of the format.

Finally, some logistical tips that will help keep your application process stress-free:

1. Transcripts (including hard copies!): arrange transcripts (marksheet plus degree) from all your institutions before applying. Occasionally, some universities will also ask for hard copies of the transcripts to be sent to them before admission so be prepared with multiple copies for postage!

2. Funds:  For US universities, each application cost varies from $50 to $100. Add to that the cost of sending your GRE ($27) and TOEFL ($19) score reports. Arrange for funds in advance to avoid burning a hole in your pocket! Also make sure international payments are enabled on your credit/debit card.

3. Deadlines: Despite all your planning, you may find yourself struggling to meet a deadline. Since these are international applications, note the time zone for the deadline as well. The closer you get to the deadline, though, the more risk there is of website traffic and technical glitches!

4. Graduate admissions offices are closed during Christmas break (December 24 to January 4-5), even though deadlines may fall within that period. So make sure to email your queries to them before the break.

Good luck to all the budding PhD aspirants out there! Let me know if there is any specific portion of this post that you want me to elaborate on. Here are some more resources that you might find useful:

Chris Blattman on whether you should do a PhD, and more-https://chrisblattman.com/about/contact/gradschool/

Rachael Meager’s guide for applying to top 10 departments- https://economics.com.au/2012/03/27/for-the-ambitious-prospective-phd-student-a-guide/

Jesse Shapiro’s notes on applying for an economics PhD-https://www.brown.edu/academics/economics/sites/brown.edu.academics.economics/files/uploads/NotesonApplyingforaPhDinEconomics%20(1).pdf

General Equilibrium - Illustration (Lexicographic Preferences)

By Aleesha Mary Joseph

Consider a 2*2 pure exchange economy (ie 2 goods & 2 consumers).

The endowments are –  Individual 1 (8,8)
                                   Individual 2 (2,2).

Utility functions are as follows:

(1) Individual 1 has lexicographic preferences with respect to X. That is
  The bundle (x1 , y1) will be preferred to (x2 , y2) when x1>x2.
   But if x1=x2, then the bundle (x1 , y1) will be preferred to (x2 , y2) if and only if y1>y2.

(2) Individual 2’s utility function is given by U(x,y) = x^2 + y^2

Now our task is to find the contract curve and the competitive equilibrium.

SOLUTION

(I) CONTRACT CURVE

First convince yourself that we cannot construct indifference curve (IC) for individual 1’s preferences. Because there are no 2 distinct bundles between which individual 1 will be indifferent.

Now let’s figure out how 2nd individual’s IC looks like.

For example let’s plot IC that represents 4 utils. Ie x^2 + y^2 = 4. Note that this is actually the equation of a circle centered at (0,0), with radius 2. Also since we are bothered about only positive values of x & y, IC representing 4 utils will be represented as follows:

Now let us put everything in our edgeworth box as in the following figure(please google or refer any standard microeconomic textbook if you don’t know what an edgeworth box is). The dark point represents the endowment.

Now let us find the pareto efficient points. Pick any IC of individual 2 (say the red one). Now consider the point A. If we move along the IC in the direction given by the arrows, then individual 1 is getting better off and individual 2 is not getting worse. Hence the point A is not pareto efficient. Using the same logic we can argue out that there is only 1 pareto efficient point along the red IC and that is B. Now convince yourself using the same argument that all the points along O1B and BO2 are pareto efficient. Hence the contract curve is O1B and BO2.

(II) COMPETITIVE EQUILIBRIUM

Notations : X11 – quantity of good 1 demanded by individual 1

      X12 – quantity of good 2 demanded by individual 1

      X21 – quantity of good 1 demanded by individual 2

      X22 – quantity of good 2 demanded by individual 2

       Mi   - Income of individual i.

First of all let us write down the demand function for individual 1

(X11, X12)  =  (M1/P1 ,  0)  { Because for individual 1 only consumption of good 1 matters. }

The demand function for individual 2 is derived using the same logic as mentioned in the previous file (similar to the max function in the file).

        (X21, X22)  =  (M2/P1 ,  0)                                    when P1 / P2 < 1

      (M2/P1 ,  0)  or (0, M2/P2)                                 when P1 / P2 = 1

        (0, M2/P2)                                                          when P1 / P2 > 1

Normalize P2 = 1.

Now,

Since individual 1’s endowment is (8,8), income of individual 1 M1 = 8P1 + 8.

Since individual 2’s  endowment is (2,2), income of individual 1 is M2 = 2P1 + 2.

Note that since individual 1 consumes only good 1, all of good 2 has to be consumed by individual 2.

Hence from individual 2’s demand given above, it is clear that P1 / P2 has to be greater than or equal to 1. Since P2 is normalized, P1 ≥ 1.

Note that the budget line should pass through the endowment. 

CASE I

Suppose the budget line is the green line given below.

On extending the green line we get the following figure:

Convince yourself that:
• The extended green line is the budget line faced by individual 1.
• Given this budget line, individual 1 will consume the bundle P.
• This implies that in the economy there will be excess demand for good 1 as individual 1’s consumption is outside the edgeworth box.

CASE II

Suppose the budget line is the RED line given below.

On extending the red line we get the following figure:

Convince yourself that:

• The extended RED line is the budget line faced by individual 2.

• Given this budget line, individual 2 will consume the bundle Q.

• This implies that in the economy there will be excess demand for good 2 as individual 2’s consumption is outside the edgeworth box.

CASE III

Suppose the budget line is the BLUE line given below.

Convince yourself that when the budget line is the blue line, it is optimal for both individuals 1 and 2 to consume the bundle B. Hence the price ratio associated  with the blue line will be the competitive equilibrium price ratio. Since (8,8) is the coordinate of the black dot and (10,0) is the coordinate of B, the euilibrium price ratio P₁/P₂ = 4.

From the above three cases note that competitive equilibrium can occur only in the third case and in the other 2 cases markets do not clear.

On summarising, competitive equilibrium allocation is (10,0) for individual 1 and (0,10) for individual 2 with competitive equilibrium price ratio being  4.

(Aleesha Mary Joseph graduated from St. Stephen's College in 2013. She is currently pursuing MA in Economics at Delhi School of Economics)

General Equilibrium - Illustration (Max and Min Functions)

By Aleesha Mary Joseph

FINDING OPTIMAL DEMAND FOR GOOD X AND GOOD Y WHEN THE UTILITY FUNCTION OF THE CONSUMER IS
                                                
  U = min{ X+2Y , 2X +Y }  

Subject to the budget constraint  Px X  +  Py Y  =  M  
where Px is the price of good X and Py the price of good Y.

Step 1

Let us first figure out the indifference curve(IC) pertaining to this particular utility function. We know that IC is the combination of all those bundles (x,y) which gives same utility to the consumer. So let us keep utility constant at say 10. Then now our task is to plot  min{ X+2Y , 2X +Y }  = 10 on the X-Y space. If min{ X+2Y , 2X +Y }  = 10, then either (i) X+2Y  = 10  OR  (ii) 2X+Y  = 10.  Let us plot (i) & (ii) on the same graph:

Note that (i) & (ii) intersects when X=Y. And slope of (i) is ½ and slope of (ii) is 2.

 Now note that the yellow region corresponds to X + 2Y < 10. Also at any point on the red line 2X + Y =10. These statements imply that at any point on the red line min{ X+2Y , 2X +Y }  = min{ <10 , 10 }. ie min{ X+2Y , 2X +Y } < 10. This implies that the red line is not part of the IC representing 10 utils. 

 Similarly the orange region corresponds to 2X + Y < 10. Also at any point on the blue line X + 2Y =10. These statements imply that at any point on the red line min{ X+2Y , 2X +Y }  = min{ 10 , <10 }. ie min{ X+2Y , 2X +Y } < 10. This implies that the blue line is not part of the IC representing 10 utils. 

Note that the grey region corresponds to X + 2Y > 10. Also at any point on the purple line 2X + Y =10. These statements imply that at any point on the purple line min{ X+2Y , 2X +Y }  = min{ >10 , 10 }. ie min{ X+2Y , 2X +Y } = 10. This implies that the purple line is part of the IC representing 10 utils. 

Similarly, the blue region corresponds to 2X + 2Y > 10. Also at any point on the orange line X + 2Y =10. These statements imply that at any point on the orange line min{ X+2Y , 2X +Y }  = min{ 10 , >10 }. ie min{ X+2Y , 2X +Y } = 10. This implies that the orange line is part of the IC representing 10 utils

Thus from the above arguments it is clear that the points on the red and blue lines are not part of the IC that gives 10 utils. That is those points do not solve min{ X+2Y , 2X +Y }  = 10. Therefore let us erase the red and blue line segments from our figure. While the points on the purple and orange lines solve min{ X+2Y , 2X +Y }  = 10.

 The figure ABC represents all those bundles (x,y) which satisfy min{ X+2Y , 2X +Y }  = 10. Hence ABC is the IC which represents 10 utils. Note that slope of BC is ½ and slope of AB is 2.
The Indifference map is as follows:

Now let us consider various price ratios and figure out where the consumer will consume.


Step 2

(1) If Px/Py < ½ then budget line would look like the red line in the following figure:

The highest IC that touches the budget line is the blue colored one and hence the optimal consumption will be at E. At E consumer spends his entire income on good X and consumes zero of the other good.

(2) If Px/Py >2 then budget line would look like the red line in the following figure. The highest IC that touches the budget line is the blue colored one and hence the optimal consumption will be at F. At F consumer spends his entire income on good Y and consumes zero of good X

                                     

(3) If ½<Px/Py <2 then budget line would look like the red line in the Figure 10 The highest IC that touches the budget line is the blue colored one and hence the optimal consumption will be at G. We know that at the kink G X=Y. Substitute this in the budget constraint. Then we will get the optimal consumption as X = Y = M/(Px + Py).

                                      

(4) If Px/Py = ½, then any point on BC is optimal. And any point on BC will satisfy X + 2Y = 10 & the inequality X≥Y.

                       

(5) Similarly when Px/Py = 2 any point on AB is optimal. And any point on AB will satisfy 2X +Y = 10 & the inequality Y≥X.


To summarize we can write demand for x & y as follows:
(x,y)  =   (M/Px, 0)                                                                          when Px/Py  < ½
              All (x,y) such that X + 2Y = 10 & X≥Y                                  when Px/Py  =½
             (M/(Px+Py), M/(Px+Py))                                                    when ½<Px/Py<2
              All (x,y) such that 2X + Y = 10 & Y≥X                                  when Px/Py  =2
              (0 , M/Py)                                                                        when Px/Py  >2



FINDING OPTIMAL DEMAND FOR GOOD X AND GOOD Y WHEN THE UTILITY FUNCTION OF THE CONSUMER IS
                                                  U = max{ X+2Y , 2X +Y }  


Using the same technique of analysis as in the previous question, the IC map of the max function would be as follows:

Exercise: Consider ABC is the IC representing 10 utils. Then Find the coordinates of the points A & C. Now verify that the slope of AC is 1. Convince yourself that for any given IC the slope of the line segment joining the end points of the IC (like A & C) is 1.

1) When Px/Py<1ie slope of the budget line (red line) is less than 1.

Clearly consumer will optimally choose the bundle C.



2) When Px/Py>1ie slope of the budget line (red line) is greater than 1.

In this case optimal consumption will be at A.


3) When Px/Py=1ie slope of the budget line (red line) is equal to 1.

In this case optimal consumption will be at A & C.


To summarize we can write demand for x & y as follows:
(x,y)  =   (M/Px, 0)                                                                        when Px/Py  < 1
               (M/Px, 0) or (0, M/ Py )                                                  when Px/Py  =1
               (0, M/ Py )                                                                     when Px/Py  >1


(Aleesha Mary Joseph graduated from St. Stephen's College in 2013. She is currently pursuing MA in Economics at Delhi School of Economics)

General Equilibrium - Illustration (Cobb-Douglas)

By Aleesha Mary Joseph

Let's begin with an easy one to understand the concept of General Equilibrium.

Suppose, U₁(X₁₁ , X₁₂ ) = X₁₁ X₁₂ and U₂(X₂₁ , X₂₂ ) = X₂₁ X₂₂ .

Let (e₁₁ , e₁₂ ) = (10,0) & (e₂₁ , e₂₂ ) = (0,10).

Normalize P₂ to be equal to 1.

Then note that individual 1’s income M₁ = 10*P₁ + 0*1 = 10P₁.

Similarly individual 2’s income M₂ = 0*P₁ +1 0*1 = 10.

Since the utility functions are cobb douglas, demand functions can be derived by equating MRS with P₁/P₂ and substituting the relevant expression in the budget constraint.

The demand functions so derived will be as follows:

X₁₁ = M₁ /2P₁ = 10P₁/2P₁ = 5

X₁₂ = M₁ /2P₂ = 10P₁/2P₂ = 5P₁ (Because P₂ is normalized to 1)

X₂₁ = M₂ /2P₁ = 10/2P₁ = 5/P₁

X₂₂ = M₂ /2P₂ = 10/2P₂ = 5 (Because P₂ is normalized to 1)

The Market clearing condition says

X₁₁ + X₂₁ = e₁₁ + e₂₁

5 + 5/P₁ = 10. 

On solving this we get P₁ = 1. Hence the competitive equilibrium price ratio P₁/P₂ = 1

Convince yourself that the same price ratio will clear the market clearing equation for good 2 as well ie X₁₂+ X₂₂ = e₁₂ + e₂₂ .

Substituting P₁ =1 in the demand functions, we get the competitive equilibrium allocation

As (X₁₁ , X₁₂ ) = (5,5)

     (X₂₁ , X₂₂ ) = (5,5)

With competitive equilibrium price P₁/P₂ as 1.

The articles to follow will cover min/max utility functions and lexicographic preferences. Stay tuned.

(Aleesha Mary Joseph graduated from St. Stephen's College in 2013. She is currently pursuing MA in Economics at Delhi School of Economics)

General Equilibrium

By Aleesha Mary Joseph

Hi friends,

This blog is already rich with advice for cracking DSE entrance. I would just like to emphasize on one thing i.e, doubt clearance. Because it is disheartening to see a question in the examination which you had marked as doubt in your preparatory material. It can even cost you a place in DSE.

No doubt is silly. If you find it hard to ask your teacher, then 

1)  Ask your friends or classmates. 

2)  Mail it to anyone who you think would know the answer. Doesn't matter even if the person is someone whom you have never met {may be you can message current DSE students (list available on DSE’s website) via Facebook}. 

3)  Post your questions on groups meant for economics entrance preparations. Even if you think your questions are very trivial, just post it, because there will definitely be many other students with the same doubt but are just shying away from posting the same. One such group can be found at http://economicsentrance.in/ (Group by Amit Goyal)

 Whatever the way is just make it a point to clear all your doubts before the D-day!!

For many students the general equilibrium(GE) section is scary and that is mostly because of their lack of knowledge on how to approach the GE problems. Trust me once you look at the technique GE becomes your cup of tea! 

I believe the following material on GE problems may be of some help to students who don’t attend coaching classes. I have skipped many steps. But feel free to ask for any further explanations. The material was made assuming that you already have some basic knowledge about GE set up. Please refer Nicholson & Snyder for conceptual clarity. The best way to master GE problems is by making your own problems with all sorts of utility functions and trying out in square and rectangular edgeworth box. If you go through the past year question papers you will get an idea of the various kinds of utility functions that the DSE faculty like. Most questions can be answered once you find the contract curve and competitive equilibrium allocation. So try to find the same for all sorts of weird looking combinations of utility functions and endowments: P Enjoy practicing and GE problems will be a cakewalk for you in the exam. Few questions can be found at http://econdse.org/pghosh-001/  :) 

General Set Up

Suppose individual 1’s utility function is represented by U1 (X11 , X12 ) and for individual 2 it is U2 (X21 , X22 ). 

Let the endowment for individual 1 be (e11 , e12) and for individual 2 it is (e21 , e22).

To find the competitive equilibrium allocation following steps are recommended:

1)  Find individual demands for good 1 and 2. ie X11 , X12  , X21 and  X22 . These quantities will be a functions of P1 / P2 . (or will be functions of P1 alone if we normalize P2 to be 1)

2)  Then equate X11 + X21 = e11 + e21 for this is the market clearing condition for good 1. i.e the total quantity of good 1 being demanded by individuals 1 & 2 should be equal to the total supply of good 1 available in the economy.

3)  On solving the above equation we will get the competitive equilibrium price ratio P1 / P2 .

4)  By Walras’s law the equilibrium price ratio obtained above will clear the market for good 2 as well.

General Equilibrium problems with step by step solutions will be covered in the articles to follow. Stay tuned.

(Aleesha Mary Joseph graduated from St. Stephen's College in 2013. She is currently pursuing MA in Economics at Delhi School of Economics)

Let's bell the CAT

By Suhani Popli

It was nearly a year and a half ago, when I was one of those many final year kids, juggling with the different ‘options’ that would help them build a future – that I decided to pursue the MBA degree. A dilemma that exists in most of our minds is that between a management degree from abroad versus that from within India. There is no end to this debate, but since I belong to the latter group, I would describe the process of getting through that in this piece of writing.

There are different exams held for the admission to a management institute in India, the popular ones being the CAT, the XAT, the NMAT, IIFT, exams specific to colleges, and so on. A gateway to the premier Business Schools of the country, the CAT, as an exam, does not really need an introduction, so I’ll skip that part. I’d rather use this space telling you what the different phases in the process of doing this exam are.

      1.  The Initial Phase

As one would expect, there are different ways to go about this. People can choose to do absolutely nothing, or study on their own selves, or join a coaching institute. If in the second category, I would suggest an aspirant to pick up study material from online/reliable offline sources. Trust me there is no dearth of either. However (and this opinion is strictly personal), I have always felt that the CAT requires not only a basic and complete knowledge of the relevant material for quantitative, logical and verbal ability, but also a grasp on the tips & tricks that could help accelerate one’s speed to solve.

My guides, both in terms of the preparation material and the teachers, came from the coaching institute I was enrolled in. And I genuinely believe that someone teaching me a particular concept would make it clearer to me, as compared to my reading it from a book. However, one is his/her own judge of what works best for the purpose of learning. Hence, the most important part in this phase is for an aspirant to pick the category that suits best.

Incase one does plan to join a coaching institute – honestly, there isn’t much of a difference between the names that exist in the market today. All of them have material and test series which are comprehensive. Thus, I would suggest to the aspirants to take advice from their seniors who must have attended such classes. Based on what they say (take views of students from at least two different places), make the final decision.

      2.  The Preparation Phase

Personally, my preparation was at the coaching institute I joined. However, for almost everyone I know, it is actually during the summer vacations when people put in their best effort to study. Personally, if I look back, I see that those two months were quite intense, and it was my coaching faculty who guided me through most of what I did. What is important in this phase is to identify the areas where one needs work and hence polish those well. There is no key to this, but to practise – regularly and efficiently.

As the end approaches, it becomes extremely significant to practise as many mock tests as possible. Also, practicing the CAT papers of the past five to ten years can be extremely useful. This serves a dual purpose – one of making the aspirants familiar to the exam pattern and the other of helping them learn how to manage time. Taking a step forward, it is more important for one to analyze mistakes post a mock test. Though this part is more time consuming than taking the exam itself, it ensures the avoidance of the same mistakes in future.

      3.  The D-Day

First, different myths float when one tries to choose a date – of the exam being easier on weekdays than on weekends, of taking the exam on a particular day, etc. – all of this, yes, ALL of it is absolute crap. Nothing such is true. The exam is such that there is a large common pool of questions designed each year, and questions are pulled out from this pool everyday in random combinations to form a question paper. Hence, one can never predict the difficulty level of any particular day or time slot.

Second, aspirants should make sure they look at all the 30 questions in each section. At various instances, the questions in the beginning tend to be difficult compared to the ones later in sequence. Thus getting stuck at initial questions can lead to very negative outcomes.

Third, keep calm and get done with the exam.

      4.  After the declaration of the results

Once the results are declared, successful aspirants get calls from the different business schools. The last step in the process entails preparation for the GD/WAT processes and the PI – i.e. the Group Discussion, the Written Ability Test and the Personal Interview rounds. The key to succeeding here would be to know two things well – one’s own resume and the current affairs. Infact, reading the newspaper is a habit that one should try and pick up early – since it also is helpful in the preparation of the verbal section of the CAT.

Like conventional CAT preparation pieces, I don’t want to end this article by stating a list of which business schools are the best in the country. One can easily Google and find that out. Rather, I would like to put forth the idea that it is important to think through the direction in which life is taking one. And whether it is a job, a master’s degree or an MBA – make an informed choice, one that you really want to do! All the best :)

Suhani Popli graduated from St. Stephen's College in 2013. She scored 98.2 percentile in CAT 2012 and is currently a student at IIM Kozhikode.

Masters In Economics - Where to go?

The Inside Story

By Anshuman Kamila

Without much ado about nothing, I’ll get to my primary task. I am supposed to draw points of comparison between the several institutions of prominence for study of Masters in Economics in India. So I’ll try and cover as many perceptions and as much information I could manage to gather regarding these. Since much of the historical foundations of these institutes are accessible easily, I’ll take the liberty of skipping these and focus on contemporary perceptions and matters of fact.

South Asian University (SAU): “The new core for core economists!”

OPINION: Based on interaction with senior faculty of the University and friends of faculty, one can advise to keep it as an option right below or above JNU. The syllabus is in line with the one covered at Delhi School of Economics (DSE), albeit at a level a tad lower than at DSE. In the last semester, a student is supposed to submit a dissertation towards the fulfillment of the requirements of the course. This, paraphrasing a senior functionary at SAU, “is the forte of the course where a student is urged to have an independent thinking and research into a subject of choice and serves as a timely initiation into a career in research.” Certain key members of faculty are well net-worked, and a rapport with them may guarantee an enviable internship.

ENTRANCE PREPARATION: The entrance to this fledgling University happens earliest of all. The syllabus is roughly the same as a standard entrance examination syllabus, going by hearsay conjecture and personal gut feeling. It’s relatively easy to get through, if one were to go by the level of questions asked in the past years. The trick is to have some native intelligence and be on terms with last two years of undergraduate syllabus of Economics (H) at DU, through means of a cursory read. 

Jawaharlal Nehru University (JNU):  “The melting pot of thesis and antithesis”

OPINION: A temple of learning, rather than mere ‘training’, JNU emphasizes critical thinking and encourages developing an opinion of one’s own. The course coverage is, unlike DSE or ISI, focused on analyzing contemporary world economy against the back drop of conventional theories and schools of economic thought. Also the teaching accommodates heterodox economic thoughts, so not only a particular string of economic thesis – but its anti-thesis and subsequent synthesis are all discussed. If developing a scientific temper and the power of informed criticism is one’s objective, JNU is the place to be. The syllabus for the entrance is hugely diversified. It is difficult to pinpoint certain sections which will ‘surely’ be asked. The entire system, beset with opaque reservation systems and grace markings, is very unpredictable and remains a gamble. It is not advisable to write this exam ONLY, for there is no guarantee of making it despite a sound base in economics and a rigorous practice of the past year papers.

Placement record is not so good, although it has improved in recent times. A concerted effort in putting together the semblance of a ‘placement cell’ has been started last year and results are showing – students are getting well paid internships. But placements so far have been confined to academic sphere alone – research associate-ships and small time analysts, et al.

Indira Gandhi Institute of Development Research (IGIDR): “The exotic hub of economics”

OPINION: This elite research institute sits atop a picturesque hill and infrastructure is a primary attraction (as one of my professors pointed out, ‘they have a great swimming pool’ and my batch-mate there tells me a wildlife hotspot and the film city are nearby!). A small batch size and a student faculty ratio, which almost equals 1:1, are important points of consideration. Teaching level is at par with DSE, from what one infers on basis of assignments and questions asked in tests. Some of the subject’s leading stars serve on the panel of faculty, thus one can be assured of rigorous teaching and cutting edge research experience. A unique distinguishing feature of the institute is assignment of a ‘mentor’, the pool of which is drawn from the panel of faculty and research scholars. Every mentor is mandated to advise and motivate a scholar and remains easily approachable through the three years of college life. All members of faculty reside on campus, creating a sense of bonhomie and occasional parties at their homes add to the academic ambience.

ENTRANCE PREPARATION: The entrance test is a salad bowl of economics (no calculations here, so stress is on robust understanding of fundamentals and uncanny ability to ‘reason out assertions’), arithmetic and verbal and non-verbal reasoning. Maintaining cool throughout the duration of the test is the only sensible advice one can give. Interviews are usually grueling and grilling, and intrinsically unpredictable. So a lot of scope of surprises here, although confidence in answering and being thorough in subjects of preference should put one in good stead. 

Delhi School of Economics (DSE): “The corporate hotspot!”

Of course, the most sought after destination for study of Economics at Master’s level in India. Boasts of an expansive galaxy of distinguished alumnus and remains a favourite catchment area for all big corporate recruiters. The pronounced use and application of mathematics in all sub-branches of economics remains a central theme of ‘training’ at DSE. Faculty members are almost household names (of course, households that are comprised of economics scholars!) The level of instruction right from Day 1 is at an elevated level, even for someone who’s had a relatively grand run at Undergraduate level. The first two semesters are usually times when the newly inducted scholar is acquainted with the rigour and tenor of academics at DSE, so they tend to be tougher and seem drab. However, after one has successfully steered cleared of the wee semesters, one can hope for some stimulating economics.

Indian Statistical Institute (ISI): “A researcher’s paradise!”

Perhaps the only institute that is in direct ‘confrontation’ with DSE to lure away the brightest undergraduates in Economics. Apart from boasting of a dazzling array of academicians on its faculty panel, the allied Rs 5000/- monthly stipend and a top-up of stationery grant is a pecuniary attraction. With a batch size of one-tenth of that at DSE and being fully residential (co-ed, by the way!), it makes for an ideal destination for much-involved academic study. The infrastructure is geared towards fostering a healthy and conducive environment for serious scholarly work. The computer lab is open 24 hours and fully air conditioned, providing a much needed cooling-off spot for scholars in summers. Certain members of faculty are extremely solicitous of scholars’ well being and offer to help – in numerous ways, like writing influential recommendations, providing relevant and pertinent guidance for further study, etc – of their own accord. You often tend to share meals and badminton and tennis courts with professors; that just deepen and strengthen the academic bonds you forge with them.

Why DSE over ISI? Well, this question has been put to me umpteen number of times. So a well considered reply is in order. Here it is:

From my interaction with people at DSE and ISI, the gut-feeling one develops is that ISI is best suited for someone who plans to cruise the research highway (or i-way, if you like!) while DSE is a haven for anyone who’s as yet undecided about putting in hard labor in economics. That is not to say that ISI doesn’t offer tantalizing corporate packages (truth to tell, the onus and hence the choice lies with the student body at ISI to invite which companies they wish to apply to; with such a small pool of highly skilled applicants, companies are more than willing to hire and almost everyone gets their preferred pick.) or DSE doesn’t send scholars to Ivy League varsities for higher studies (as one esteemed researcher-professor at DSE apprised us, DSE sends students to Ivy League varsities ranked higher than those attended by scholars from ISI). 

That said, I felt, and had my belief corroborated by a senior academician in the economics circuit, that DSE offered more diversity in subjects and specializations. Even in interests of research and conversation, DSE campus offers greater variety than that available at ISI – simply because 200+ students will offer more diversity than less than 30 students! Also, that DSE houses the Departments of Commerce, Geography and Sociology, offers scope for a multi-disciplinary approach to any given theme of conversation and interaction.

I’ve dined at ISI, with members of faculty. The nature of dining-table conversations is usually a proximate way of gauging the perspectives of individuals and the institution they constitute. Their way of looking at any issue – be it the merger of Air India and Indian Airlines, or the (f)utility of new universities that sprung up recently – is one of extending an established economic theory to analyzing the issue at hand. This may seem very appealing to some, and precisely for them, ISI will be a preferred paradise. 

In summary, I chose DSE over ISI for the sheer diversity of interests of my prospective classmates (which turned out to be true), for the fact that DSE sits in the midst of the vibrant college life of Delhi University and that DSE is a prudent linear combination of academics and amiable social life, and I have convex preferences in this regard! 

Anshuman Kamila graduated from St. Stephen's College in 2014. He was the topper of the batch and got admission in DSE (By merit and entrance), JNU, ISI, IGIDR and SAU. He is currently pursuing MA in Economics at Delhi School of Economics.