My first time independently researching economics was through a topic for my computer science
course. I explored the concept of macroeconomics, inflation and how mathematical concepts are
directly applicable to the day-to-day lives of individuals. I found interesting the classical dogma that
agents within a system make rational decisions strictly based on economic motives.
To further my knowledge, I felt compelled to make it the focus of my computer science
programming project. I decided to develop an algorithm that allows users to have personalised
information on changes in price levels. This carries a more accurate reflection of inflation for
individuals than the average figures provided by the Office for National Statistics. The process of
making the algorithm involved calculations based on everyday transactions of users rather than the
overall consumer price index. I completed deep research into how to program this, which improved
my programming skills and the accuracy of data calculated. I believe that this will allow users of the
program to make more informed decisions based on data that directly applies to them.
This research helped me consider how economic theories and models change when new, more
accurate evidence is discovered and how the application of new discoveries can alter previously
prevalent conclusions. I strongly appreciate the use of mathematical models in understanding
economic theories and this led me to Empirical Economics – a concept I discovered listening to the
Planet Money podcast. This involves quantitative analysis bridging the gap between economic
theories and actual results. The testing of these theories is often conducted to understand how the
economy behaves.
Through reading George A. Akerlof and Robert J. Shiller’s Animal Spirits, I saw the importance of
behavioural economics, which combines economics and psychology. In doing so, I reached the
conclusion that economic theories are limited to constraints of reasoning based on the assumption
that humans are consistently judicious. This explained why there was widespread failure to predict
economic phenomena like the 2008 financial crisis. The book criticizes conventional economic
theories like Adam Smith’s Invisible Hand and incorporates determinants of behaviour called “animal
spirits”. This refers to non-economic incentives that economic agents have and the often irrational
decisions they make in response. Based on this reading, I concluded that whilst these motives cannot
be quantified or consistently predicted, they are still as important to the efficacy of economic
policies. This behavioural side of economics is something I find very intriguing and would like to
research further in my future studies.
Outside of school, I took on summer work experience at Wem&Co Chartered Accountants, where I
learnt how to apply my mathematical skills in solving real world problems. I also had conversations
with the accountants which helped me to realise how volatile the economy can be, particularly when
theories and models of the past are the main tools of economists today. This was my first experience
honing my mathematical skills and economic knowledge to find solutions to problems, and I look
forward to doing more of it during my economics course. My wider experiences include my role as a
house captain as part of a student leadership team where I oversaw the management of extra-
curricular activities, and I received an award for it from the DVS Foundation Programme for the Most
Outstanding Contribution to Life at the school. Additionally, I aspire to become an investment
banker, so I attended Insight and Work Experience days at Goldman Sachs, Allen and Overy, and Jane
Street Capital with the intent of building networks and gaining first-hand experience of how
economic concepts are applied in the corporate world. Hence, I want to continue studying
economics and learn how it amalgamates with other subjects to make it one intriguing field of study.
