Econometrics in The London School of Economics

My entry for Knowledge is Great Contest by British Council

London School of Economics Lincoln's Inn Fields - May 2006

Education is the most powerful weapon which you can use to change the world. – Nelson Mandela

Life is what we make of it and the vital ingredient for making any career choice is education. Driven by my passion to make a difference in the lives of people, I have made the decision to pursue higher education in the field of Econometrics from London School of Economics and Political Science (LSE).

What is Econometrics?

Econometric is the application of mathematical and statistical concepts in Economic. It adopts a quantitative approach to find well-defined solutions to economic issues both at local and global levels.

Any decision involving allocation of “scarce resources” becomes a matter of economics. Traditionally the role of econometricians was to test economic theories with statistical data and reject those theories that didn’t comply with real life observations. However, their job came only after a theory was proposed. If the economists did not come up with any theory, the econometricians had no role to play.

In modern day, the role of econometricians is more direct and its importance has increased exponentially over the last two decades with the rise of computer technology. They extract information and provide foundation for any new economic theory. Thus, the decisions and predicted practical implications are more based on real data than theory. Even if no theory exists to back up the decision, econometricians have to provide proper statistical models for the decision process.

Why Econometrics?

This amazing branch of Economics demands mathematical aptitude and a driving interest to analyse and work out problems for a better world. I am in my final year in Indian Institute of Technology, a premier technical institute with a 50-year history of producing notable scientists, engineers, economists, entrepreneurs, businessmen, national and global leaders. Throughout my course curriculum I have become acquainted with different mathematical techniques primarily to understand the concepts of technological world. Along with that I have taken up few projects in Economics and Finance which have given me some idea of how people as individuals, as companies, as organizations and as nations take decisions to maximize their prosperity. Economics all by itself is vague. It needs to incorporate other fields of study such as science, mathematics, history and philosophy to grasp the depth of how things function.

No matter what we as a civilization want to achieve, be it to develop any new technology for a more comfortable lifestyle, revolutionize healthcare, conquer space, promote cultural values or eradicate poverty, it is not possible without the intervention of economic hurdles which must be overcome with great determination and courage.

Economics without Econometric is lame. Unless we design comprehensive mathematical models taking into consideration historical data and human reactions, it is impossible to look at the larger economic scenario. We collectively as human race strive to progress, expand our sphere of knowledge and defeat all those things that hold us back like poverty and ignorance. This cannot be achieved only by political leadership or excellent academic brains. Our efforts need a direction to make strategies for optimization of investments in different fields so as to extract maximum benefits for the betterment of society. We need Economics to find out this direction, and we need Econometrics for a holistic implementation of the right decisions.

The global picture has drastically changed in the past few decades. We at this stage of time are on our way to become the master of technology. But in this revolutionary timeline, we are at a critical point where it is necessary to be extra cautious so that this technology does not turn against us. We must collectively look out for malicious organizations and crony capitalists who are a hindrance to social and economic development. Although the situation in developing and under-developed countries is improving but still there exists inequality in opportunity and education in many parts of the world. In this revolutionary phase of changing times I want to contribute to this world in whatever way I am capable of. I believe this is possible with my enthusiasm in Economics and Econometrics. What I need now is attainment of knowledge and proper grooming by a University that understands my needs.

London School of Economics (LSE)

Why London School of Economics and Political Science (LSE)?

In the field of Economics, the name needs no introduction. The most general impression people have about LSE, is its consistent rankings amongst top universities in the world over the years. For example in 2013 Quacquarelli Symonds (QS) ranked LSE as the third best university to study Economics and Econometrics in the World and the best in Europe. However, LSE is much more than just rankings.

Firstly, LSE has been building a great legacy since 1895. In just over a hundred year it has made to the top as compared to its other peers which have been for a much longer time. This in itself is an apparent proof of the determination and hard-work of visionary founders that have been transferred through generations. In the distinguished history of LSE, its graduates have become highly successful researchers, global leaders, corporate individuals and even some notable Nobel Laureates.

Secondly, LSE is one of the few universities that have excellent programs for students from technical backgrounds like me. MSc Economics and Econometrics can be taken over two years for students without a strong economic and mathematical background. A Diploma is awarded after first year and the student is allowed to proceed to MSc programme if standards are met. The student can complete PhD programme after that if the required grades are met. In the beginning LSE needs only the right aptitude and desire for excellence in the students and not prior knowledge.

Thirdly, the quality of education received in LSE is unparalleled. Its primary objective is to train students who are future leaders and will affect the lives of billions of people around the world. The university regularly organizes interaction sessions and seminars with some of the greatest thinkers and game-changers. It also has the positional advantage of being situated in the heart of London in a walking distance of many major financial institutions.

Last but not the least, as already mentioned Economics all by itself does not make much practical sense. It must incorporate concepts of Geography, Law, Politics, Society, Philosophy and many others for a proper understanding. LSE has a number of such departments with excellent students enrolling in those programmes every year. This is probably the biggest advantage of studying in LSE. It will be ensured that I am not always surrounded by batch mates from a particular field of study. The network developed and friends made will be from diverse academic and cultural backgrounds that will help a long way into the future. It is engaging with the “brightest and the best.”

Studying in the United Kingdom is probably the biggest privilege one can have in his/her academic career. Do visit the following link to know about more universities and courses offered in UK: http://knowledgeisgreat.in/

knowledge_is_great

Pritam Thakur

Pritam Thakur

A 4th year Undergraduate student at IIT Kanpur; movie freak; Internet-addict, Quoraphile and a bigger Blogging addict.

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