Financial-markets

This book seems to have written to cash in on the fame of the authors and the stampede in academia and industry towards financial econometrics.

The book already assumes you are proficent in basic and advanced econometrics, derivatives pricing, fixed income, microstructure, neural networks etc. If you already familiar with those fields, why do you need this book? For example, Chapter 10 on Fixed Income Securities covers a grand total of 28 pages beginning with "Basic Concepts" and ending with "Yield Spreads and Interest Rate forecasts". Meanwhile there are whole tomes devoted to every one of those sections in Chapter 10. Nonparameteric Estimation merits a grand total of 9 pages and Neural networks merits 7 pages in Chapter 12.

The chapter on Microstructure, virtue of the book being published in 1997 is thoroughly dated. Even for its 1997 publication the chapter is thoroughly lacking. It is neither a survey nor a exposition of theory or practial uses of microstructure theory. Today there are excellent theoretical and practical books devoted to every topic covered in this book.

Save your money for one of those.

It is a good book, but there are some aspects which I find lacking in the book which could be helpful. For example, brief outline answers to some of the problems at the end of the chapter will help most readers no doubt. Also, a more comprehensive cover on the rational bubbles and GARCH type models for asset returns will help no doubt, as well as problems that may arise during implementation. This book is aimed at the advance graduate student who is pretty proficient in theoretical finance and advance econometric issues already.

Finally, we have a book like this. It is comprehensive, not so hard to follow, and handsomely structured. It shows you the power of combination of mathematics, statistics, and finance. It is like beer. It makes you dizzy and enchanted simutaneously.

It stimulates you to dream of modeling the stock market and know the tomorrow's price of Amazon.com. At least, I am going to give it a try! You can have fun, make money, and look mysterious at the same time.

Review or learn the math and statistics courses necessary for the book. Read the book three times. Then, you are near the top of mountain.

When is Dr. DeRooy going to publish "More Economic Literacy?"

"Economic Literacy" was just the new coat I needed after over twenty-five years of post-college economic news flowing my way in ever increasing volume and my memory of college macro and mirco economics 101 courses worn threadbare.

Dr. DeRooy put the issues into perspective; he tells what's important. He tells why.

So much has gone on since 1993, what appears to be the last year Dr.DeRooy had all the annual statistics available to him when he wrote "Economic Literacy".

I'll buy, and recommend to all who come across this comment, "More Economic Literacy".

This book is great! I read Economic Literacy once through, and now I find myself returning to it to refresh my memory on econ-related topics I encounter in the news or at the office. De Rooy uses a combination of brief lessons and anecdotes to relay information in a comprehensible form. I can understand best if I think of things in terms of real life experiences--Economic Literacy appeals to somebody like me because it is realistic. It is not at all lofty or overly theoretical. And hey, how many other econ books have cartoons in them? Economic Literacy makes a great gift, too! The friends with whom I shared it really enjoyed it.

This book saved me in multiple economics classes, explaining terms that most books clouded with superfluous rhetoric and boring text. A must for anyone interested in money, and in that case, who isn't?