Fixed link

PhD in Econophysics

posted on 28 November 2012


I'm a student of final year of theoretical physics and I would like to take PhD in area of econophysics.

Could anyone be so kind to reocmend to me a few universities which have group working in this area of physics?

Big Thanks!!!


please info for a PhD program in econophysics

Dear aspiring econophysicist..
How are you. I want to ask you if you are a serious econophysics PhD aspirant, as you are in your final year of theoretical physics. Also are you referring to becoming a PhD 'quant' senior quantitative analyst at a trading firm or a scientist of economics physics...these things are not necessarily mutually inclusive!
Think of funding, salaries and support. Unless you are graduating from the top university(s) of your country, or are a math olympiad or a c++ developer expert with thousands of lines of code or are a major recognized innovator in economics physics (for example you developed an accurate theory of "one of a kind" options pricing that are currently priced by analogy making the big4 self swapping of debt liability currently in the $Trillions more visible, or you developed a simple yet accurate theory of crashes and bubbles from physics applied to markets that produced all of the observed and or stylized facts and was applicable multi scale from seconds to years...) , you will have a difficult time obtaining a qantitative finance position with a markets trading firm(s) ...the reason is simple, though you may know more than your peer(s), the trading firm is selling image as much as it is selling analytics. It is not interested in the really fascinating fact that stochastic resonance and bi-sta ility or n-stability of Lotka Volterra type and phase transitions frustrated glassy type are in certain limits describing the same markets dynamics and large scale transitions as risk of said crashes and bubbles and their statistical transitions dynamics....

So to break into the quantitative finance field, either i) obtain a top 100 universities worldwide degree and focus on showcasing the reputation, or focus on the research innovating science of economics physics:
a) finish your theoretical physics degree,
b) obtain a theoretical physics tenure position through the postdoc track and mentoring by recognized teachers mentors scientists
c) after established at a tenure at a university or institute begin an econophysics group...depending on where you are you will probably study your national economy and markets, perhaps finding new insight and dynamics in your markets, publishing your results and as the numbers of scientists studying markets is large, being ignored for the most this point unless you devote yourself to studying a major problem in increments or in full as a research scientist, you may otherwise or in comjunction seek to apply your interest in econophysics as scientific consulting, somewhat similar to a service or a trade.
d) consult for your local international firms, partner with international groups that consult for banks and trading firms and are active in econophysics, econometrics, financial mathematics, financial engineering (its other names), quantitative finance.
e) start your own company and or trading now you should have made enough capital and allied yourself with enough capital to fund one... in the U.S. $100,000 is a startup fund, a similar $100,000 with twenty other investors is an investment bank chartered on the state and or federal levels...within reach of any salaried professional scientist!

f) 'live' trade your algorithms and trading models...basically put your money where your scientific econophysics're now a quant and a practicing trader econophysicist.

--The trading markets though having hired thousands of PhDs is about 10-15years behind the science! The methods utilized by market live trading are dated to that long ago...advances are in 'automation' that is computerization of the outdated theories utilizing 'new' coding and languages and platforms...concepts such as machine language are agent models and similar that are learning algos utilizing similarly outdated science...what does that mean? everything from statistical PDFs to SDEs to PDEs of assets and equities markets and the 2ndary markets of options and derivatives have been advanced by revolutions in statistics and physics and of complexity...Black-Scholes is now generalized nonextensive derivatives pricing, portfolio theory is similarly written on SDEs processes of nonlinear SDEs of market precise nonlinear random evolution, random matrix statistics are able to precisely quantify fractal or multiscale markets crosscorrelations dynamics from seconds to years as are the moments obtained from the nonextensive statistics...every GARCH and other statistical test is imprecise if not utilizing the nonlinearities+Gaussian (with much computing) or the recently revolutionized power-law statistics (with little computing) dynamically robust from information measures to PDEs to SDEs... to every computation utilizing Monte Carlo for options that now are actually nonextensive Black-Scholes with power-law Monte Carlo, but you know what? the nonextensive Black-Scholes can be solved in exact form...the volatility smiles exactly obtained, without modifying Heston's SV stochastic volatility models as they recently have been to a form that makes it obvious it is merely a special case of the full form of the SDEs of the nonextensive statistics! These assts and instruments are the markets... a random 'asset' evolving as dx=a(x,t)dt+b(x,t)dW(t) with drift+diffusion a,b highly nonlinear, and its insurance policies the 2ndary options and futures markets of Black-Scholes albeit of generalized nonlinear form (of the PDFs of Calls, puts etc..)...
other than that you would be researching interacting traders models...from many points of view, all of which are actually special cases of a generalized superspin field theory (yes, including multiagent and cellular automata and what havve you..). In fact it is simple to see that as these have frustrated phase transitions or multisale transitions or nstable get the point I am sure. One other point, LPOs are precursors to the transition points if critical and are masked if continuous...
The econophysics is then the study of the observed statistical evolutions of markets observables, somewhat similar to the empirical models of observables in physics, and the study of the microscopic interating many-particles or many-body that gives rise to the observed random series of data, here many-traders models.
About 15 years ago this was the promise and the state of the art of complexity in finance, of econophysics, sociophysics , quantitative social psychology, not just the earthquakes and solar irradiance and birds flocking and traffic models and networks ...the human environment interaction complete with psychology...By the way that promise has been fulfilled to a very large just happens that not many scientists much less lay persons know that or comprehend the profound leaps that have been made.
Good luck.

Mack: The Forbes article, which I have a link to on one of my articles, dealt with conference payout. The Big 12 pays each member an equal amount based upon conference income. The ESPN/FoxSports contract pays each team $20 mil per year for 1st and 2nd tier broadcast rights.


Simply implore to say your article is as amazing. The clarity in your post is immediately enormous and i can affect you're an practiced proceeding this subject. Thin with your permission allow me to grab your nourish to keep positive to date with forthcoming send. Recognition a million and please deposit in the lead the acceptable work.

Thank for sharing your childhood story.

U have written everything with a lot of clarity and really very helpful . Can I have your email id . It will be really very helpful for me . i am pretty new in this field and wanna do some research in Management . Right now me going to do my thesis in econophysics but lack a good idea as there its pretty hard to find someone who has an incisive idea about such a topic. looking forward to exchange my views and idea and at the same time will be asking for some help "a much needed one ". thank you