Op-ed by PETER C B PHILLIPS, JUN YU and ERIC GHYSELS.
"The dot-com bubble, the subsequent US housing bubble and the recent financial crisis all underscore the need for better tools and early-warning systems on market exuberance, which some of the latest research in financial econometrics provides. Singapore is well-placed to join London and New York, which have strong links with the financial econometrics circuit. This article is contributed by Peter C B Phillips, distinguished term professor and co-director of the Centre for Financial Econometrics at SMU's Sim Kee Boon Institute for Financial Economics (SKBI), Professor Jun Yu, co-director of the same centre at SKBI and deputy director of SKBI, and Eric Ghysels, Bernstein distinguished professor of economics and professor of finance at the University of North Carolina."