Mathematics and Economics: A Reality Check

6 Pages Posted: 13 Aug 2016 Last revised: 21 Aug 2016

See all articles by Marcos Lopez de Prado

Marcos Lopez de Prado

AQR Capital Management, LLC; Cornell University - Operations Research & Industrial Engineering; RCC - Harvard University

Date Written: August 19, 2016

Abstract

Economics (and by extension finance) is arguably one of the most mathematical fields of research. However, economists’ choice of math may be inadequate to model the complexity of social institutions.

In a constructive spirit, this note offers some advice on how students could increase their chances of having a successful career in 21st century finance. Practitioners seeking to enhance their skillset may also draw some ideas.

Keywords: Graph theory, topology, discrete math, information theory, signal processing, machine learning, parallel processing, quantum supercomputing, experimental techniques

JEL Classification: G0, G1, G2, G15, G24, E44

Suggested Citation

López de Prado, Marcos, Mathematics and Economics: A Reality Check (August 19, 2016). Journal of Portfolio Management, Vol. 43, No. 1, 2016. Available at SSRN: https://ssrn.com/abstract=2819847

Marcos López de Prado (Contact Author)

AQR Capital Management, LLC ( email )

One Greenwich Plaza
Greenwich, CT 06830
United States

HOME PAGE: http://www.aqr.com

Cornell University - Operations Research & Industrial Engineering ( email )

237 Rhodes Hall
Ithaca, NY 14853
United States

HOME PAGE: http://www.orie.cornell.edu

RCC - Harvard University ( email )

1875 Cambridge Street
Cambridge, MA 02138
United States

HOME PAGE: http://www.rcc.harvard.edu

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