My Interest In The Dynamic Nature Of Economics
I was intrigued by the combination of theory with mathematical analytics and empirical data in Economics to explain human behaviour and the workings of society. My curiosity in the nature of human behaviour spurred me to read Dan Ariely’s Predictably Irrational and I explored the various situations in which people systematically behave irrationally by traditional economic definition. Through reading widely, I have gained the capability to grasp content and ideas quickly.
A lecture by David Chan on the application of behavioral science in Economics made me realise the dynamic nature of Economics. There is so much yet unknown and for us to discover, and this fascinates me. What makes Economics distinctly attractive to me is its encompassing nature and practical relevance in decision making. Having great interest in public sector decision making, I did some research on cost-benefit analysis. Hence, I better comprehended how cost-benefit analysis, particularly social discount rate, involves not only Economics but also Politics and Ethics. Apart from the technicalities of time inconsistency and heterogeneity, I find the most contentious issue in social discount rate to be intergenerational equity for very long-term projects. A pure time preference represents valuing utility of future generations less than that of the present generation, which, I believe, is ethically indefensible as it violates fundamental equality.
However, I do support social discount rate on the basis of social opportunity cost of capital. When pursuing H3 Economics, the amount of independent learning required has increased my ability to sieve through literature and conduct efficient research. Reading John Kampfner’s Freedom for Sale, I was convinced that in the modern era, many trade political freedom for the promise of security, economic prosperity and personal freedom. Kampfner suggests that observing the current situation worldwide, liberal democracy and capitalism are not natural bedfellows as commonly argued to be. This follows Friedman’s argument that economic freedom is a necessary condition for political freedom, but it is not the only condition. The most influential thought that I gained is that people might actually want less positive freedom than they would like to believe. Freedom provides choice and inflates expectation, both of which can be debilitating in excess.
On the other hand, I believe that freedom is a stimulus for human progress. Being open-minded and much of an abstract thinker, I revel in contemplating conflicting ideas and identifying roots of disputes; I look forward to such challenges in the degree course. Through regularly reading of The Economists and Reuters, I aim to be a better global citizen while expanding my knowledge of Economics. I have attended the online course Think Again: How to Reason and Argue by Duke University to sharpen my ability to make sound and cogent arguments. Knowing the various logical fallacies also allows me to be more critical when listening to politicians’ speeches and analysing arguments. Having a strong foundation in Mathematics and Physics also gives me an edge in comprehending complex relationships and manipulating models.
An applied Mathematics research on cryptography at Temasek Laboratories allowed me to further build on my logical thinking skills, which will enhance my understanding as I pursue Economics at degree level. Having persisted and thoroughly enjoyed 6 years of robotics competitions, I am confident of my time management skills which have been developed through balancing academics and extra-curricular activities during frenetic competition preparations. I also volunteer at my Group Representation Constituency, reviewing responses to residents’ requests from various government bodies and the private sector, and arrange for follow-ups. Recognising the impact of public policies in daily lives, I aim to contribute in this aspect through the knowledge that I will gain from this degree course.
