PHD Economics Personal Statement of Purpose

PHD Economics Personal Statement of Purpose for Graduate School

Economics has long been the principal lens through which I have interpreted what I have learned about human nature and interaction. While working and studying in various parts of the world, I have spent much of my free time generating research ideas based on preliminary observation and studying economic behaviors in a variety of different macro environments. I have chosen monetary economics as my primary research interest, because of the transformational power of money with respect to the roles of households, firms, financial institutions, and governments, especially through the integration of technological inventions that have facilitated and encouraged globalization. The evolution of monetary transmission mechanisms will guide the direction of my empirical research. My research journey has been challenging, especially as far as it coincided with the Covid-19 pandemic. After having to overcome a great deal of turbulence that impacted my academic performance, I have outgrown my sense of frustration, and I am now fully focused on a professional lifetime devoted to academic research.  

____ University is my first choice among PHD programs in Economics because of the sheer excellence of the program. I especially appreciate your small classes, and a focused specialization in macroeconomics. I feel strongly that the guidance and support that I would receive in this environment will inspire me to give my all to becoming a well-trained and qualified economist. Professor ____’s research in firms’ pricing overlaps in numerous areas with my focus on monetary policy. Professor ____’s research in consumption dynamics also coincides with my special interests in Economics, as well as that of Professor ____ in international economics. All three professors are ideal for helping me to refine and prepare to realize my long-term goals.  

I developed a special interest in monetary economics while working in various parts of the Global South, always carefully observing the mix of currencies in use, paying special attention to the ways that multiple currencies served to facilitate local economic transactions, often under harsh economic conditions. Hence, the role played by money in our lives has always loomed especially large in my own consciousness. This interest has only grown stronger since I have had the opportunity to assist with macroeconomic research projects for the International Monetary Fund.  

I have long been aware of the importance of solid math skills to become a great economist. While I have not earned a Mathematics degree, I have excelled at all the math and programming classes required for the PHD Program at Brandeis. One especially exciting project that I completed was a simulation of the Dominant Currency Paradigm (DCP) project. To test the robustness of the economic implication of variations in the value of the dollar on global trade volume, along with two classmates, we adopted a parsimonious VAR model to test these empirical implications using multiple data sets.  

I have come to very much appreciate the way in which economic research depends upon intuition, to bridge the gap between theory and application. I made effective use of my intuition, for example, working with a senior officer to apply a counterbalance equation in assessing the relative trading strength of G7+2 countries. The processes of filling the gaps between theoretical assumptions and empirical results is what I find most intriguing. Soon, I started working on my MA thesis on the Multiple Currency Paradigm (MCP). This independent research has called for a new, higher level of responsibility and commitment. I self-studied the New Keynesian Framework in Gali's textbook and the Cash-in-Advance model. While presenting my research idea to my audience, I engaged in intellectual discussions with my advisors to compensate for the model's deficiencies. Tackling these questions takes a while, but I am experiencing a creative surge in my thinking as never before that I trust will eventually lead me to robust conclusions.  

Paying close attention to historical, academic contributions to the literature dealing with representative agent models, I have learned a great deal about the drawbacks to these historical models as far as they are able to depict how representative agents use their money. Currently, I have been working with a research team at Beijing University to integrate the expenditure reflux formula into an exploration of the economic implications of digital currency, and the impact that it could have on the money circulation of consumers.  

Every day I refine my ideas for doctoral research in my mind, making notes as my thinking develops. One extension based on my MA thesis and current research work would be a focus on the competition between bank-lending vs. non-bank lending, especially with respect to financial technology and the way that it can influence capital allocation. Based on preliminary data collection, most non-bank lenders provide services to more small and medium enterprises. Another special intrigue that I have is the determinacy and pass-through of exchange rates. The movement of exchange rates has been fundamental to many theoretical discussions, and I especially look forward to further exploration in this area as well. 

Thank you for considering my application to the PHD program in Economics at ____ University. 

PHD Economics Personal Statement of Purpose