Thread by @SAH16928046

What are the advantages when we compare Quantitative Finance and Quantitative Economics? How likely can a quantitative economics student find a job in the industry compared to quantitative finance?
@ecmaEditors @economics @CQFInstitute @LSEeconomics

Both are different Pathways leading to different roles in the economy!

•QF - Quantitative Finance will make you more employable in the financial services industry and across (Financial Risk, ERM, Insurance, Actuarial Finance and Derivative Modelling) consulting sectors.

•QE - Quantitative Economics will enhance your chances of getting hired across the research arms of the financial services industry or the (Civil services) bureaucracy, & /or it further enables you to do a PhD in Mathematical Economics / Econometrics, etc.

Normally, QF and QE roles interface at Retail Banks, Hedge Funds, Investment banking firms, Pension Funds, Life/ Casualty Insurance and other types of specialized asset management companies, etc.

Hard to say, as to which academic qualification gives you an outright cutting edge, but I guess Quantitative Economics will make you more employable and preferable in the academic sector, whereas the Quantitative Finance Degree / Qualification, will enhance your prospects

Normally many Econ Graduates end up with CQF or a #CFA/ FRM/ CERA qualification, because their education prepares them for a completely contrasting (teaching/research) role, ideally at some university or a civil services department within the Public Sector.

Whereas, QF / Financial Engineering will give you the much needed “hands-on experience “ of readily transferring your knowledge and skillsets at the Micro-enterprise level, which usually could be a Commercial bank or a mutual / hedge fund style investment company.

The taxonomies used by professionals in either of these programs are more or less the same, and they are not mutually exclusive!

There is this cross-fertilization of concepts and ideas taking place across both subjects (QE and QF/ #Financial #Engineering).

It also depends on where you have obtained your degree(your university/ business school) and what courses/electives you have studied. If you do your QE degree with electives such as Game Theory, International Trade Economics, Advanced Microeconomic Theory, Industrial Economics,

Labour Economics, Public Finance, and other peculiar Economic courses such as CGE - Computational General Equilibrium Models and so on; perhaps, you won't be able to justify & simplify your work/analysis in the financial sector with the same level of comfort.

It is easier for #bankers and fund managers to understand financial terms and taxonomies instead of Economic jargon.

This is based on my personal experiences gained over these years.

You, with your highly theoretical and pedagogical terms and taxonomy, in “#Economics”, might also create problems for your unit head aka “reporting line”, who at best might be an #MBA, a Diploma holder in Banking, or some MSc in Finance/ Acct kind of discipline.

Normally, banks and FIs, promote those who are street smart and get things done on time.

That is a different debate for a different day.

Got my hint?

So, choose your electives and specialization path within the two programs in a wise way!

Good Luck.

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