1  Worksheet 01: Being on the same page

1.1 Why is the course difficult?

The material requires you to actually use and apply what you have learned in the math/stat sequence starting from ECOCAL1 until ECOMETR (including LBOMETR). You might actually forget past material, but you should have some minimum base of knowledge which you can reliably draw upon in order to reclaim past material.

The field of financial econometrics faces several challenges not usually encountered in discussions during ECOMETR. You can also compare METELEC (which some students might think is a substitute for ECOFMET, but it is not) and this course, especially their approaches to the content and desired learning outcomes. They may share some similarities but the focus is different. That is because you are supposed to learn general-purpose tools and methods then become able to justify or modify their usage.

1.2 What are the concrete steps you can take?

The point is not just for you to know how, but to know why. Knowing how is slowly being replaced by Google searches, chatting with bots, and paying someone who knows how. But knowing why is more difficult and requires pre-existing knowledge and the capacity to transfer that knowledge to potentially unknown settings. What I just described is application and transfer.

The biggest myth in education is that learning styles exist. There is a need to break free from this myth.

Hiring is going to be more difficult, especially in the age of AI. We need you to be prepared for the next phase of your lives. It is no longer about “navigating the landscape” or “surviving the apocalypse”. It is about something more basic: What do we actually bring to the table that could not easily be replaced?

My personal bottom line is that you should exploit the spacing effect, even if we are on a tight schedule.

1.3 Set goals

Will the course enable me to make money? Will working on something technical actually benefit me in the workplace?

Refer to the course learning outcomes from the syllabus.

1.4 Exercise A

What comes to mind when you hear the phrase “financial econometrics”? What makes it different from econometrics? Why should probability and statistics even play a role in finance?

1.5 Exercise B

Put yourself in the position of a job seeker with a newly conferred degree in Applied Economics Major in Financial Economics. Look for jobs which require experience in econometrics, data analysis, financial econometrics, and other similar keywords. These jobs may be in any area and any location (not just in the Philippines), so be as broad as possible in your search. Collect three to five jobs you actually would want to have and look for patterns in terms of entry requirements and the responsibilities of the job.

  1. Write a short paragraph reporting how you arrived at your collection of jobs and what your realizations are and what you can conclude from your brief search.

  2. Did you find something puzzling or something curious during your search? Describe in some detail what you have found.