Stage 1 – Written Test

This is the primary elimination round that checks:

• Mathematical strength
• Statistical reasoning
• Applied economic understanding
• Ability to solve analytical problems

Stage 2 – Interview

Candidates shortlisted from the written test are called for a personal interview that tests:

• Conceptual clarity
• Depth of understanding
• Problem-solving approach
• Research inclination and logical thinking

Objective Section (Part A)

• Multiple-choice questions
• Tests fundamentals
• Fast calculations and accuracy required
• Negative marking usually present
• Questions from Algebra, Calculus, Probability, Linear algebra, Basic economics

Purpose: To filter candidates based on speed, accuracy, and basic subject understanding.

Descriptive Section (Part B)

• Long-form mathematical/economic problems
• Requires detailed steps, derivations, proofs, and reasoning
• Tests depth of knowledge, not just formulas
• Includes Mathematical economics problems, Optimization, Probability/statistics derivations, Econometrics concepts, Micro & macroeconomic analytical questions

Purpose: To check whether the candidate has research-level thinking and can handle ISI's rigorous coursework.

Algebra

Includes:

• Sequences and series
• Polynomial equations
• Inequalities
• Binomial theorem
• Basic functional equations

Purpose: To check algebraic manipulation and problem-solving skills.

Calculus

Covers:

• Limits, continuity, and differentiability
• Partial derivatives
• Taylor expansions
• Maxima and minima for single & multivariable functions
• Integration techniques

Many microeconomic and optimization questions require calculus directly.

Linear Algebra

Includes:

• Vector spaces
• Basis and dimension
• Matrices, determinants, rank
• Systems of linear equations
• Eigenvalues and eigenvectors

Linear algebra helps in optimization, econometrics, and mathematical economics.

Optimization

One of the most important topics. Covers:

• First-order & second-order conditions (FOC & SOC)
• Hessian matrix, bordered Hessian
• Lagrange multipliers
• Optimization in economic models

Probability Theory

Includes:

• Random variables
• Joint, marginal, and conditional distributions
• Expectation, variance, covariance
• Law of large numbers, central limit theorem

Correlation & Regression

You may see:

• Computation of correlation coefficient
• Properties of covariance
• Simple linear regression basics
• Interpretation of parameters

Used as foundation for econometrics.

Standard Distributions

Commonly tested:

• Binomial distribution
• Normal distribution
• Poisson (sometimes)

Questions often require computing probabilities or expectations.

Consumer Theory

Includes:

• Preferences, utility functions
• Budget constraint
• Utility maximization
• Marshallian and Hicksian demand
• Substitution & income effects
• Indirect utility, expenditure functions

Production Theory

Covers:

• Production functions
• Marginal products
• Returns to scale
• Cost minimization
• Cost functions, profit maximization

Market Structures

Includes:

• Perfect competition
• Monopoly & price discrimination
• Oligopoly (Cournot, Bertrand basics)
• Monopolistic competition

Game Theory Basics

Covers:

• Nash equilibrium
• Dominant strategies
• Mixed strategies (basic level)
• Sequential games

Useful for industrial organization questions.

Income Determination

Covers:

• Keynesian cross
• Multiplier
• Consumption–investment functions

IS–LM Model

One of the most tested areas. Includes:

• Goods market (IS curve)
• Money market (LM curve)
• Equilibrium and policy effects

Questions involve shifting curves and solving simultaneous equations.

AD–AS Model

Includes:

• Aggregate demand
• Short-run and long-run aggregate supply
• Output–price level dynamics
• Inflation–output trade-offs

Growth Models

Includes:

• Harrod–Domar Model
• Solow Model
• Capital accumulation
• Steady state
• Savings, investment, population growth

These topics test a student's ability to analyze dynamic macro models.

Indian Statistical Institute (ISI)

Many graduates continue research within ISI itself, working as research associates or collaborating with ISI faculty on academic projects.

J-PAL

MSQE students frequently get hired as:

• Research Associates
• Field Coordinators
• Data Analysts

J-PAL values ISI students for their strong understanding of econometrics and quantitative methods.

Top PhD Programs Abroad

ISI MSQE is one of the strongest feeders to foreign PhDs. Graduates often get admitted to:

• Harvard University
• MIT
• Princeton
• Yale
• LSE
• Stanford
• NYU

Financial Analytics

Roles include:

• Credit Risk Analyst
• Financial Modelling Analyst
• Market Risk / Portfolio Analyst
• Quantitative Researcher

Companies include Goldman Sachs, J.P. Morgan, Deutsche Bank, Barclays, etc.

Data Science & Quant Roles

Because MSQE students learn probability theory, statistics, optimization, and econometrics, they are well-suited for:

• Data Scientist
• Machine Learning Analyst
• Econometric Modeler
• Quantitative Analyst

Consulting

Consulting firms value ISI MSQE graduates for their analytical thinking. Firms include:

• Deloitte
• EY
• KPMG
• McKinsey (research roles)
• BCG (knowledge analyst roles)

Indian Economic Service (IES)

MSQE syllabus matches well with IES requirements in Micro, Macro, Statistics, and Econometrics.

RBI Grade B – DEPR

The exam requires deep knowledge of Economics, Statistics, and Econometrics - all of which MSQE provides.

UGC-NET / JRF Economics

MSQE preparation overlaps with Microeconomics, Macroeconomics, Mathematical Economics, and Econometrics.