Cambridge and LSE – Personal Statements (Accepted)

ECONOMICS

1.

Observing the world around me, it is clear Economics can clarify so much. Take the
stock market: an intricate web of transactions, demand and supply models can explain
it clearly. Using such models has encouraged me to pursue Economics with the hope
of learning about them in greater depth and with increased complexity. It is this
relevance to our lives and the ability to break situations down and analyse them that
has attracted me towards Economics.

Reading "The Worldly Philosophers" by R. Heilbroner, I have seen how economic

theory develops over time. However, a theory is rarely complete and its search for
perfection is perpetual. An area I wish to learn about is game theory. I have read
"Thinking Strategically", learning how players can act in different types of games to
maximise benefits and how pay-off matrices show this; an example being the impact
on profits when firms alter their output in a duopoly. Earlier this year, I undertook work
experience at a consultancy, LEK Consulting, where I often assessed and interpreted
economic data to form conclusions. Extending this, I came second at a competition
where I presented on the economic implications of an ageing population. I also
prepared a mock Target 2.0 presentation. Studying financial markets, I extended my
knowledge of monetary policy and how variables like bonds affect it. From this, I
deduced how the yield curve for UK Gilts affects the base rate decision. I had to
examine and interpret unknown data, as well as work effectively with others. These
activities have made me a stronger economist as I am now better at analysing
situations.

Having studied A-level Further Mathematics, I am keen to expand my knowledge of

Maths and Statistics; as such, the area of Econometrics interests me. Maths has
improved my ability to solve problems and an area that enthrals me is calculus. I would
like to learn about its complex uses in Economics, having seen some basic
applications like calculating total revenue from a marginal revenue function. I have
recently discovered constrained optimisation and how Lagrange multipliers are used
to find stationary points of a function subject to constraints. I am currently in the
process of researching this in greater depth and hope to learn more about its
applications to Economics. Studying Physics, I have developed an ability to assess
the various implications of a situation. With my ability to reason from studying AS
Critical Thinking, I feel these are two skills I could make use of when studying at a
higher level.

As a senior prefect and fully trained peer mentor, I have helped create a safe school
environment. I have organised other prefects, arranged meetings and aided students
with personal issues, as well as taught Maths to younger students. These roles have
made me better at managing time whilst maintaining my academic performances and
I have improved at handling people of all ages, as these roles require effective
communication with both students and staff. These roles have also required me to
gauge unknown situations and I feel I could apply this to Economics as Economics is
reliant on human behaviour which can be unpredictable. As captain of the school
cricket team and member of a men's first team, I have become better at understanding
others and an improved planner. I am also working towards the gold Duke of
Edinburgh award. This has involved over 100 hours of volunteer work, which has led
me to a V50 award. These activities have given me more responsibility and I have
relished this as it has allowed me to explore an aspect of life that cannot be developed
in the classroom.

By studying Economics, I aim to understand how the world operates in greater depth.
My passion combined with my academic potential are but two characteristics that I
believe will aid me for university life.

2.

Every action I have and will ever take in my life can be analysed through the tools of
economics. This is true for many sciences; such as Physics, Chemistry, Biology or
Psychology, to name but a few. However what sets Economics apart is how it is
perhaps the only science that would significantly and consistently improve the quality
of my decisions if applied. Further more, what makes Economics truly outstanding is
its diversity and broad range of application.

I have recently began reading economic literature, it seems as if the more I read the
more enthralling Economics becomes. A novel I have read recently, “Freakonomics"
by Steven Levitt, Stephen Dubner, is about the versatility of data, how data can be
used to solve complex problems and how data can provoke insightful questions. I
remember one night thinking how some lawyers earn a lot of money while others have
an average salary, instantly a torrent of ideas washed over me, I realised that this
discrepancy in wages is proof that the criminal justice system is unfair and biased
towards those who can afford a superior lawyer. So much data could be collected and
collated, so many interesting questions could arrive from this study such as do people
who are wealthier behave more ethically then those less well off.

I enjoy challenges, the more abstract or harder a concept is the more I will try to
understand it fully. As an aside I believe this is why I my GCSE results were not
reflective of my AS level results nor of my natural ability. This drive to understand
unequivocally is fuelled by my desire for knowledge. When I finish college I will have
an A level in Mathematics and Further Mathematics which includes 2 modules of
Statistics. My passion for Economics is paralleled closely to Mathematics, this is the
reason for why, truthfully, I am immoderately excited about studying the more
mathematical facets of Economics such as game theory and econometrics. At AS I
took a wide range of subjects; Physics, Mathematics, Business, Economics and
Critical Thinking, by taking this wide range of subjects I have been able to hone in on
what I am most passionate about. I have always enjoyed learning about Business, but
the same can be said for Science and Mathematics, however last year I learnt that
Economics is what I love. It has changed the way I view the world, I cant fathom any
other course I would rather study. I very often have economic discussions with my
peers, which i relish. These range from the shape of interesting supply demand curves
e.g. that of Veblen goods, to the most efficient way to run an economy. I am yet to
convince my friend that a centrally planned economy will probably never be as efficient
as the free market.

I feel that in order to perform at my best it is very important to stay fit and healthy. I go
to the gym twice a week and swimming regularly. I do my best to maintain a healthy,
balanced diet all of which to my avail and improved academic results. I believe myself
to be personable and capable of working well in a team, although admittedly more so
as a leader than a follower. I think that my personality is so well suited to a university
environment that I will relish all my time there and at the same time, hopefully, I will be
able to enrich the time that is spent there for others as well.

When I finish my course at university, I would like to pursue a job in the financial sector.
Applying economic principles to markets is something I greatly enjoy. I remember
recently reading in “The General Theory” that speculation serves almost no purpose
other than providing liquidity for markets. At first I was saddened to learn that my
career aspirations were essentially selfish and would create no wealth or benefit to the
economy. However on reflection I realised that liquidity certainly has value and is
needed in the markets. Reading and understanding “The General Theory” is probably
one of the hardest things I have ever had to do. I spent weeks reading it and countless
hours thinking over some of Keynes more complex assertions. I cannot posture and
pretend that I fully comprehended all of it but I can proudly claim to have understood
the majority. I believe this will serve me well when I study at university and stand me
in good stead. By already having a greater command of economics than is required at
A level I will possibly find the gap lesser than that of perhaps some of my peers who
have not.

3.

Discussions of economic issues at home and with peers, as well as recent visits to
developing countries such as India, have helped me to comprehend the true role of
economics in society. In India, for instance, I witnessed the remarkable social
implications of economic growth - some of which are not always of benefit to all. My
foremost interest is in the use of statistical analysis in resolving socio-economic issues
- particularly with regards to the role of globalisation. This was clear from my studies
of the more interesting statistics and pure maths covered in further maths at A Level;
here, it became apparent that I would especially enjoy studying the quantitative
aspects of economics, such as econometrics and game theory.

For me, market failure was one of the most interesting parts of AS economics - this
motivated my research into how it may have been linked to the recent global financial
crisis, firstly in reading "How Markets Fail" by John Cassidy. His arguments were
highly convincing - such as his point that the random walk theory's underlying
assumption, that financial markets are informationally efficient, is somewhat
unrealistic. The additional criticisms that Cassidy and other economists have levelled
at orthodox theory, for example in Joseph Stiglitz's "Globalization and Its Discontents",
were also illuminating. The latter further added to my scepticism about trade's
significance to growth; many of the Asian 'tiger economies' grew rapidly by taking a
measured approach to globalisation. In all of my reading, however, I have been
dismayed to see the extent to which political manoeuvring can distort macroeconomic
policy - this has been reaffirmed in the recent US debt crisis. Meanwhile, I also sought
out contrasting free-market economists' views, such as those in Friedman's
"Capitalism and Freedom"; his ideas on the government ideally playing only a
negligible role within the economy were hugely divergent from the beliefs of Cassidy
and Stiglitz. The varying viewpoints seen here embody what is so attractive about
economics to me; it encourages independent thought in appropriating theory to better
match and extrapolate global economic events.

A work experience placement at a commodity-based trading firm helped me to develop

my interest in market behaviour and statistical analysis. Whilst there, I had to absorb
a large volume of new information in little time - primarily, the methods of analysing
graphs and statistics portraying commodity and financial product market activity. The
interplay between technical (mostly mathematical) and fundamental (evaluation of
circumstantial factors) methods was intriguing; focusing solely on the former can be
hazardous - an apt parallel to economics.

I was recently selected by my school to be part of our team for Target 2.0. Following
publications such as The Economist and the FT has not only been a necessity for me
in understanding the widespread effects of changing the base interest rate, such as
the impact on currently vulnerable labour and capital markets, but has also proved
worthwhile - I enjoyed producing similar content in writing for my school's economics
magazine. I have also participated in the TiE Young Entrepreneurs' and Young
Enterprise competitions, both of which helped me to build upon my interpersonal and
organisational skills.

In studying economics, I hope to develop my interest in the theory behind international

trade, in addition to deepening my understanding of the many other intricacies of
national and international economies. I feel that my skills and experiences, both
academic and extra-curricular, have put me in a prime position to achieve my aims
through a degree in this subject.

4.

We live in a world which has undergone remarkable changes - from the fall of
communism to the interlinking of countries through globalisation. Yet, we still live in a
world with remarkable deprivation - from the widespread prevalence of poverty and
inequality to the fears of the sustainability of our resources. Being born and brought
up in India and then coming to live in the UK, my experience of these two economies
epitomises some of these changes. India is a poignant example of extreme poverty
and unimaginable affluence existing side by side. Being a leading economic power,
the concerns in the UK are different - such as sustaining its economic and international
pre-eminence. All these facets ignited an interest in Economics within me, culminating
in my taking up Economics and Maths at A level.
Reading “The Times” has highlighted the fact that economics forms the core of much
news. This has further fuelled my search for more in-depth knowledge, which has lead
to my reading of “The Financial Times” and “The Economist”. I am a voracious reader.
Among the many books I have read, some are related to economics. One such book,
"Black Swan" by N. N. Taleb, is a thought provoking book which gives a new insight
into how the financial models which are used to assess risks, are flawed as they don't
predict the full impact of such risks. Furthermore, I thoroughly enjoyed the book "Fault
Lines" by R. Rajan. Rajan, an economist who predicted the global financial crisis, gave
a compelling view of how it was not just the financial sector that caused the crisis but
also other serious flaws in the economy, which exacerbated this crisis. I find that
Economics and Maths complement each other. As a Maths student, I thoroughly enjoy
solving problems that are challenging. Taking Further Maths has helped me to
appreciate the complexities associated with the subject and the satisfaction gained
from solving the challenges. I have won maths challenges in and out of school, winning
the title of "Maths student of the year" in 2010, due to my perseverance and dedication.

I have had an invaluable experience of working at Kotak Mahindra UK Limited, an

investment bank, as a part of my work experience. During this time, the FSA undertook
their regulatory visit, enabling me to find out more about their role. I helped the
compliance department prepare for the visit - ranging from making spreadsheets to
helping make cliental documents. I shadowed a few departments and gained a deeper
understanding of what each department does and how each department, though
independent, complements each other towards the achievement of the common goal.

This exposure to the financial industry has further reinforced my interest in economics.
In my spare time, I volunteer at my local school which helps adults with learning
disabilities - where I help not only at social events but also training people to develop
their IT skills. This experience has helped me improve my patience and
communications skills. I also volunteer at a charity shop which has helped me to
improve my teamwork and organizational skills. I was also a key contributor in my
school council, helping to organise fundraising events, such as organising non-school
uniform days and bake sales, in order to raise money for charities.

Economics intrigues me; it helps me understand concepts which you hear regularly. I
thoroughly enjoy the subject as not only is it a broad subject with wide practical
applications but is also logical and involves problem solving. I would like to pursue
studying Economics further, as I would like to gain a more in-depth understanding of
the subject. I thoroughly believe that my passion and enthusiasm for this subject will
help me attain my goals