Applying physics to economics/finance

[rh2014]

Hello everybody,

I am currently a junior majoring in physics and economics and I am starting to think about my senior projects.
For my senior project next year, I would like to see if I can apply any physics "concept" to economics or finance. Do you know what would be the best approach for this research?

Thanks!

 

[ZapperZ]

You might want to look at C. Schinckus, Am. J. Phys. v.78, p.325 (2010), first, and then do your own search on "econophysics" and why a lot of people are skeptical of it. Rick Bookstaber, a senior policy advisor at the SEC, even have a blog post on this that you might find in your search.

Zz.

 

[houlahound]

I believe "quants" are big on wall street calculating hedge funds.

 

[dkotschessaa]

Yup. Physicists apparently beat out even mathematicians here due to the applied aspects.

 

[houlahound]

I can't quote a source but I heard they use a diffusion type model.