Background
Financial Econometrics is about developing quantitative methodologies and applying them to advance understanding of phenomina in dynamic and complex financial and economic systems. Macao’s unique social-economic position, particularly its strengths in tourism, gaming and finance sectors, provides access to timely large-scale dynamic datasets, and stimulates opportunities for novel quantitative research, which offers crucial new insights into key issues in finance and economics such as risk management, investments, forecasting and policy evaluation.
Objectives
The Financial Econometrics team aims to conduct high-quality research in quantitative finance and economics, fostering academic visibility and collaboration in the Greater Bay Area (GBA) and beyond. Members of the team will develop cutting-edge quantitative tools to aide policy making in advancing the financial sector and the whole economy of Macao. Specifically, the team will address the objectives through three key perspectives.
Conduct high-quality quantitative research that highlights Macao’s unique economic landscape.
The Financial Econometrics team aims to produce pioneering quantitative research that highlights the unique economic characteristics, challenges, and opportunities of Macao.
- Quantitative Economics: As Macao’s economy continues to evolve, particularly with its transition towards diversification beyond gaming and tourism, quantitative economic research on its economy becomes vital. It helps better understand the economic dynamics that shape the region, informing both government and business strategies. The Financial Econometrics team emphasizes on quantitative economic research that covers a range of topics such as complex economic time series forecasting, machine learning and AI in economics, network models and panel data econometrics. Well-grounded with local economic relevance, members of the team will provide data-driven insights based on informative databases that track economic indicators, consumer behavior, and market trends that are unique to Macao.
- Quantitative Finance: The financial sector in Macao is increasingly emphasizing non-traditional financial products and services. This shift fosters a growing need for enhanced risk management tools and a deeper understanding of the interactions among major market participants in both local and global financial markets. Focusing on both theoretical and empirical aspects, The Financial Econometrics team will provide quantitative tools to guide investment strategies, risk management, and asset allocation.
Establish Academic Visibility of Macao in Financial Econometrics
The Financial Econometrics team is committed to enhancing Macao’s global profile as a hub of academic excellence and practical innovation in financial econometrics. Members of the team will focus on promoting high-quality research, cultivating collaboration, and engaging with international academic community. In addition to impactful publications in top-tier academic journals, The Financial Econometrics team will organize and host high-end international conferences, symposiums, and workshops that attract scholars, practitioners, and policymakers from across the globe to Macao. These events will elevate the visibility of research by Macao-based researchers and facilitate networking opportunities with international peers.
Support Policy Decision-Making in Macao with Advanced Economic Forecasting Tools
The Financial Econometrics team seeks to bring together academic researchers in economic forecasting, local government authorities, and industrial leaders into vibrate discussions towards resolving pressing Macao economic challenges. Macao faces an urgent yet long-lasting economic risk that is associated with its heavy concentration on a few previlaged industries. Aligning with the government’s economic diversification plan of creating robust and vibrate economy and integrating Macao’s economy into GBA, members of the team will initiate studies of advanced forecasting models and economic analysis that reflect the policy priorities and practical needs such as the forecasting of local GDP growth, industrial output, tourism revenue, and employment rates. Meanwhile, The Financial Econometrics team is dedicated to serving as a think tank, working closely with local authorities to offer support and expertise by integrating quantitative models into responsive decision-making processes.