Computational Finance as a Driver of Economics A Research Agenda for Financial Studies

Finance is the main element for the smooth functioning of the global economy, which needs a new theory to deal with the more dynamic realities of the marketplace. The new theory must accommodate even the unexpected and the apparently irrational so that the full diversity of market participants can be modeled. Predictive services should be developed to turn financial markets into mechanisms that work smoothly, without distorted pricing. Open-domain repository should be accessible both for historical simulation and real-time operation, that means starting collecting tick-by-tick data from all the stock markets around the world and from over-the-counter markets as well. An event-based programming language is needed to create a robust model that can accommodate a rich and far-reaching sequence of reactions. The users have to support the understanding of statistical properties to develop viable forecasts.