For those aspiring to pursue advanced degrees in economics, or careers as economists, ISBF’s Graduate Diploma in Economics works as a great stepping stone. It equips students with in-depth understanding of theoretical as well as applied economics, and helps them explore solutions to problems that the world faces today. Students are able to leverage economic theory in formulating answers to queries like:

Economic theory suggests that sustaining low interest rates can lead to high inflation. Then how is the US economy able to achieve the twin objectives of near zero interest rates as well as low rate of inflation since 2008?
Do people get sick by smoking, or do sick people have greater tendency to smoke? Can we use an econometric model to determine the direction of causation?
Shah Rukh Khan asked renowned economist, Arunava Sen to devise his approach for IPL franchise auctions. What secret optimisation strategy did Sen use?

The programme prepares students for the rigour that is required in the professional and academic arenas related to economics. ISBF attracts students from the some of the best undergraduate programmes in the country. This includes Delhi University colleges such as Shri Ram College of Commerce, Lady Shri Ram college, Jesus and Mary College, Hindu College and Sri Venkateswara; Delhi Technological University; St Xavier’s College, Mumbai; IIT-Roorkee; and Christ College, Bengaluru. ISBF students of this programme go on to pursue Master’s at leading international universities or take up plum assignments at blue chip companies.

Why Study at ISBF

ISBF is one of the select few Affiliate Centres of the University of London International programmes worldwide.
London School of Economics (LSE) is responsible for academic direction of the programme. The faculty at LSE formulates the syllabus, develops the study material, sets examination papers, and marks the scripts of ISBF students.
Distinguished faculty from LSE, Cambridge, IIT, Delhi School of Economics and JNU
Proven track record of students getting Masters offers from prestigious institutions such LSE, Oxford, and University of Warwick.
One-year Masters at LSE advantage: The two-year MSc Economics programme at LSE becomes a one-year MSc programme, giving a tangible head start to a student’s career.
One-year international work placements in New York and London, with firms like UBS, Morgan Stanley, Deutsche Bank and Barclay’s.

Are You Ideal for this Course?

You are, if:

You aim to pursue higher studies in Economics or related disciplines from a prestigious international university in the UK or USA.
You are aware that your prior education in Economics has not equipped you with in-depth knowledge that you can apply to real-world issues.
You would love to exploit your knowledge of mathematics for economic modeling and analysis.
You have had your fill of rote learning and now want to pursue a programme that pushes you to truly apply your mind.
You aspire to become a leading economist.

“What if I don’t have an Eco background?” You can apply for the Graduate Diploma in Economics even if you don’t have an Economics degree, provided you can demonstrate competence in Mathematics (differentiation, integration, matrices and vectors) and Statistics (measures of central tendency, dispersion and probability theory). ISBF has students from DTU (Delhi College of Engineering) and IIT-Roorkee now pursuing this diploma very successfully.

Graduate Destinations

Here’s an indicative list of the educational and professional pursuits our students are engaged in, after completion of the programme:

Saumya Aggarwal

MSc Management, London School of Economics, UK

Rasel Maken

MA Economics, Delhi School of Economics, New Delhi

Guncha Prakash

MSc Economics, University of Warwick, UK

Shreelekha Verma

Centre for WTO Studies, New Delhi

Aru Bharitya

Research Assistant at Department of Economics, IIM Ahmedabad

Rohan John

Master of Economics, University of Bonn, Germany

Sawunthrarajan

Centre for Development Studies, Tamil Nadu Government

Note: The “Graduate” Diploma in Economics is a “postgraduate” diploma or qualification, since only students who have completed an undergraduate degree are eligible for it. The nomenclature “Graduate” Diploma is used because this diploma is a University of London award, and in the UK, “postgraduate” students are referred to as “graduate” students, while students pursuing “graduation” are referred to as “undergraduate” students.

Course Structure

The course structure for the Economics programme covers the quantitative aspects of economics with a strong emphasis on empirical research. Students explore three compulsory subject modules of Microeconomics, Macroeconomics and Econometrics. The focus is on building an exhaustive understanding of the discipline that builds upon the basic graduate-level understanding of the subjects. In addition, students can tailor the curriculum to their aspirations by choosing any one of the three optional modules: International Economics, Monetary Economics and Mathematical Economics.

Diploma in Economics Syllabus

Macroeconomics

This module covers the main principles involved in the determination of real income, employment and unemployment, the price level and inflation in an open mixed economy, and the conduct of macroeconomic policy. Topics covered include:

Aggregate demand in a closed economy: the determinants of consumption, investment, demand for and supply of money; wealth effects; the IS-LM model and policy prescription
Aggregate demand in an open economy: exchange rate regimes, international trade and capital flows, and external balances
The aggregate demand – aggregate supply model and its applications to the determination of price level, and real income, and demand management; the neoclassical (Solow) growth model
Inflation and unemployment; models of inflation; cost of inflation; counter-inflationary policies; full employment and the natural rate of unemployment; types and cause of unemployment, and policies to reduce them

Microeconomics

This module examines how economic decisions are made by households and firms, and how they interact to determine the quantities and prices of goods and factors of production and the allocation of resources. It also investigates the principles of microeconomic policy and the role of government in allocating resources. Topics covered include:

The Consumer choice and demand, including utility functions and indifference curves, income and substitution effects
Taxation and the effect of taxes on the labor supply
Producer theory: production and cost functions, firm and industry supply
Market structure: competition, monopoly and oligopoly
Game theory: static and dynamic games, strategic interaction between agents, Nash equilibrium and subgame perfect equilibrium
General equilibrium and welfare: economic efficiency and equity; competitive equilibrium; welfare criteria
Inter-temporal choice: savings and investment choices
Uncertainty and the economics of information: choice under uncertainty, insurance markets, and asymmetric information
Welfare economics: market failures arising from monopoly, externalities and public goods
Government and the theory of public choice

Elements of Econometrics

This module aims to develop an understanding of the use of regression analysis and related techniques for quantifying economic relationships and testing economic theories. It equips students to read and evaluate empirical papers in professional journals, and also provides students with practical experience of using mainstream regression programmes to fit economic models. Topics covered include:

Random variables and sampling theory
Simple regression analysis
Properties of regression coefficients
Multiple regression analysis
Transformation of variables
Dummy variables
Specification of regression variables
Heteroscedasticity
Stochastic regressors and measurement errors
Simultaneous equations estimation
Binary choice models and maximum likelihood estimator
Models using time series data
Autocorrelation
Non-stationary processes
Panel data models

Optional Modules:

International Economics

This is an analytical course in international trade and international monetary economics. Students are introduced to the theories with which to understand international trade patterns, examine trade policies, analyse the determinants of exchange rates and financial crises and address topical issues of international economic interdependence between states.

Monetary economics

This course introduces the concept of money; what it is, why we use it and how it is created. It examines monetary policy in a closed economy, considering a number of models that allow real effects of monetary policy, ranging from new-Classical to Keynesian. Specific models will be introduced and solved, allowing students to see exactly how these models work and what differentiates one from another. It then considers monetary policy in an open economy, focusing on exchange rate determination, any real effects of monetary policy in an open economy setting. It also considers the different exchange rate regimes that have existed in the last hundred or so years.

Mathematical economics

Mathematical modeling is particularly helpful in analysing a number of aspects of economic theory. The course content includes a study of several mathematical models used in economics. Considerable emphasis is placed on the economic motivation and interpretation of the models discussed. Topics include techniques of constraint optimization, intertemporal optimization, tools for optimal control; differential equations.

Note: The programme structure and curriculum are subject to change as per University of London regulations.