The Reasons Behind My Goal to Study Economics at a Higher Level

In today’s complex world, I appreciate that an understanding of economics is not only vital in making financial or management decisions, but also a lens through which to view the world. What makes economics most interesting for me is the interplay of two seemingly contradictory ideas: logical reasoning and inherent uncertainty. Participating in weekly Meet-the-People sessions, a platform for residents to voice their concerns to Members of Parliament, I crafted petition letters to government agencies based on residents’ needs and concerns. This opened my eyes to the wealth disparity in Singapore, and spurred me to consider the irrationality behind decisions undertaken by the poor - choosing to purchase cigarettes over food, for example.

These arguably prevent them from maximising their welfare in the long run, and further entrenches them in the poverty cycle. This prompted me to read Banerjee and Duflo’s “Poor Economics”, which posits that the poor are often imperfect decision making agents for reasons beyond affordability. I realised that poverty is a result of not only multifaceted economic problems, such as differing opportunities due to socio-economic status, but also innate human behaviours. Such exposure made me question the conventional theory of rational decision making, and inspired me to broaden my knowledge by exploring beyond my school syllabi. “Animal Spirits” by Akerlof and Shiller introduced me to the field of behavioural economics. They argue that while animal spirits (driven by human psychology) could destabilise markets and cause economic turmoil, such human emotions can and should be wielded by governments to promote entrepreneurship and healthy capitalism. In doing so, governments should play disciplinary roles to stabilise markets through policy making. However, I believe that such a view is overly idealistic. Though we understand that such animal spirits matter in markets, governments often find it difficult to translate this knowledge into action precisely because of the unpredictable nature of such human perceptions and emotions.

Nonetheless, this book helped me to better appreciate the contrast - and the reasons behind it - between purely theoretical models, and their real-life applications. I have a strong interest in Mathematics and derive satisfaction from solving problems using logical and critical approaches. I am intrigued by how math can be applied in economics - in modelling and quantifying real life phenomena. Through TED talks, I was introduced to Game Theory through the Prisoner’s Dilemma and was intrigued by how relevant it is to real-life situations, such as how oligopolists use it to anticipate competitors’ actions, and choose pricing and non-pricing strategies. I was also fascinated by Elinor Ostrom’s “Governing the Commons”, which applies game theory in explaining the dominant strategy of economic agents, and in evaluating the best way to manage common pool resources.

Through this, I witnessed how math can be applied in economics such as in the Nash Equilibrium. I look forward to applying math in more novel ways in the study of economics. Having represented Singapore at the F1 in Schools World Finals, a multi-disciplinary competition that requires teams to build a miniature car from scratch and pitch sponsorship proposals to organisations, I honed my skills in critical thinking and problem solving through challenges that developed both logical and abstract modes of thinking. I was also part of the Governance and Civics Engagement Programme, a selective enrichment class, where intellectual discourses during tutorials developed my ability to construct and critically assess arguments while considering alternative views, which I believe is essential to being a shrewd economist. Looking ahead, I wish to study economics at a higher level as a means to develop the capacity to better understand the ambiguities of our world, and to make positive contributions to my society.