Academic Research

[JohnJohn]

I have the opportunity to do academic research with an economics/finance professor. He said that I could choose the topic to research and get back to him next week. I'm completely lost at what to research. I plan on trying to get into banking after my undergrad studies and have only completed math up to calc 2. Do you guys have any recs?

 

[Tsotne]

If you have enough statistical background, why not do a research on credit risk?! Credit derivatives would involve lots of mathematical issues including fitting complex distributions, copula simulations for CDOs, pricing scenario problems for different credit instruments, etc. That might be a good start for approaching banking from quantitative side.

 

[TBeas]

He said Calc 2 lol

 

[Dwsmith]

He said Calc 2 lol

I don't get it? Many students if not all just say Calc 1, 2, and 3 for short.

 

[TBeas]

My response was to Tsotne because he gave advice that I would place well above a Calc 2 level.

 

[myampol]

Behavioral economics / behavioral finance is becoming a hot area. It doesn't require much calculus.

Look for papers written by the following:

Daniel Kahneman
Amos Tversky
Vernon Smith
Richard Thaler
Matthew Rabin
Colin Camerer
Dan Ariely

Here is a bigger list of names:

http://en.wikipedia.org/wiki/Behavioral_economics#Key_figures

 

[Tsotne]

My response was to Tsotne because he gave advice that I would place well above a Calc 2 level.

That's kinda response I expected but I thought a bit from statistical side. So can you give any topic to research only on the basis of Calc 2?

 

[TBeas]

To be honest, I don't think Calc 2 is enough mathematical ability to do anything you listed. I learned none of that in that class.

Calculus 2 probably isn't really enough math to do any interesting mathematical finance research, but myampol had a good idea with behavioral finance. That field is very hot right now, and sometimes maybe more important than actually knowing how markets work fundamentally. If you know what other people are going to do, sometimes that is all you need. There is still going to be math involved, but I think this way you won't be limited by your math skills.

Have you taken any probs & stats courses? Or just Calc 1 & 2?

 

[jzavala]

Do you have any econometrics? That would help if you are to conduct an empirical study.

 

[Yike Lu]

That field is very hot right now, and sometimes maybe more important than actually knowing how markets work fundamentally. If you know what other people are going to do, sometimes that is all you need.

That's funny, because what other people are going to do is precisely how markets work fundamentally.

 

[TBeas]

That's funny, because what other people are going to do is precisely how markets work fundamentally.

I would say that fundamental analysis and behavioral finance are not the exact same thing.

 

[Yike Lu]

Fundamental analysis and how markets work fundamentally are not the exact same thing either.

 

[TBeas]

Ok, then OP I propose you study the difference between behavioral finance, fundamental analysis, and how markets work fundamentally.