Financial economics examines topics such as the structure of optimal portfolios, the rate of return to capital, econometric analysis of security returns, and corporate financial behavior.
Credit rating agencies tend to use quantitative econometric models and focus on financial analysis, whereas political risk providers tend to use qualitative methods, focusing on political analysis.
In econometric modeling, he, in association with, developed the structural time-series approach for constructing new models and for checking the adequacy of old models.
