Second Year Economics Curriculum
Diving deeper into economic theory and statistical analysis with the second-year economics honors syllabus.
Semester III
Core Course 5: Intermediate Microeconomics-I
This course provides a rigorous treatment of consumer and producer theory, a cornerstone of intermediate microeconomics. It analyzes how consumers make choices to maximize utility and how firms make decisions to maximize profits, covering concepts like budget constraints, indifference curves, and cost minimization.
Key Topics:
- Consumer Theory: Preferences, Budget Constraints, and Choice
- Demand Functions and Comparative Statics
- Producer Theory: Technology, Cost Minimization, and Profit Maximization
- Supply Functions and Market Equilibrium
Core Course 6: Intermediate Macroeconomics-I
This intermediate macroeconomics course delves into aggregate demand and supply. It formally derives the IS-LM model for a closed economy and extends it to an open economy using the Mundell-Fleming model. The course analyzes the effects of fiscal and monetary policy under different exchange rate regimes.
Key Topics:
- Aggregate Demand and Aggregate Supply
- The IS-LM Model in Detail
- The Open Economy: Mundell-Fleming Model
- Policy Effects with Fixed and Flexible Exchange Rates
Core Course 7: Statistical Methods for Economics
This course introduces the statistical methods necessary for empirical economic research and econometrics. It covers probability theory, sampling, estimation, and hypothesis testing, laying the groundwork for the study of econometrics.
Key Topics:
- Probability Theory and Distributions
- Sampling and Point/Interval Estimation
- Hypothesis Testing for Means and Proportions
- Correlation and Introduction to Simple Regression
Semester IV
Core Course 8: Intermediate Microeconomics-II
This course focuses on general equilibrium, welfare economics, and market failures. It explores how different markets interact, the conditions for economic efficiency, and situations where markets fail to produce optimal outcomes, such as in the presence of externalities and public goods.
Key Topics:
- General Equilibrium and Efficiency
- Welfare Economics and the Fundamental Theorems
- Market Failure: Externalities and Public Goods
- Asymmetric Information (Adverse Selection and Moral Hazard)
Core Course 9: Intermediate Macroeconomics-II
This course examines the microfoundations of macroeconomics and explores key macroeconomic issues like inflation, unemployment, and economic growth. It introduces models such as the Phillips Curve and the Solow Growth Model to analyze these phenomena.
Key Topics:
- Microfoundations of Consumption and Investment
- The Phillips Curve and the Inflation-Unemployment Tradeoff
- Economic Growth: The Solow Model
- Business Cycles and Macroeconomic Policy Debates
Core Course 10: Introductory Econometrics
This course provides a comprehensive introduction to econometrics. It focuses on the theory and application of the classical linear regression model, teaching students how to estimate economic relationships using real-world data and how to deal with common problems that arise in empirical work. This is a foundational course for anyone interested in applied economics.
Key Topics:
- The Classical Linear Regression Model (CLRM)
- Ordinary Least Squares (OLS) Estimation
- Hypothesis Testing and Model Specification
- Violations of Classical Assumptions (e.g., Heteroskedasticity)
- Dummy Variables and Qualitative Regressors