Professor N
guyen received his bachelor’s degree in computational mathematics and statistics from the University of Waterloo and his Ph.D. in finance from the University of Illinois. As a Ph.D. candidate with a background in applied mathematics, he developed an interest in human behaviors that contradict economists’ assumptions and their effect on decision-making. This prompted Nguyen to explore the divergence between rational decision-making and behaviors influenced by emotion and psychological factors. Nguyen notes, “You cannot model human behaviors very well. People try to do that in economics by making the simplified assumption that behavioral biases will be ironed out in the aggregate. But in reality, this is not the case.” Nguyen’s research focuses on the fact that people tend to repeat behaviors and routines even when they are not optimal. Further understanding of individuals’ flawed decision-making processes will lead to significant progress in accurately modeling human behavior mathematically, which Nguyen points to as the ultimate goal.
I liked the human aspect of it. I was doing applied math, and when I entered the finance program, my default was doing something super technical like option valuation. Then I was introduced to the social and human aspects of the decisions that people make.
Nguyen has also become interested in machine learning, specifically its application in explaining financial decision-making. Many economists and financiers use machine learning to analyze movements in stock prices and predict returns with mixed results. Nguyen’s novel approach uses machine learning to identify behavioral patterns. He is currently working on a project that analyzes the metrics discussed by CEOs on conference calls. Changes in which metrics they present indicate negative performance trends because people generally stick to routines, and something significant is required for CEOs to break from their patterns. Outside of behavioral finance, machine learning has many applications, including credit and hiring decisions. Still, Nguyen stresses the need to mitigate the biases built into these programs, saying, “If we’re not careful, we’ll build in a lot of biases within these systems because we’ll use data and inputs from areas that are inherently biased.”
Nguyen taught at the University of Illinois before joining DePaul in 2018. He is sympathetic to students struggling to navigate the remote learning landscape and recognizes the challenges of not seeing their peers and professors in person. To alleviate this lack of personal connection, Nguyen has implemented a process through which students can schedule a time to talk to him about anything, including internships, job prospects, and the economy. He has found this opportunity to connect on a one-to-one basis has allowed him to get to know his student even better than before the pandemic and encourages students to find different ways to connect with their classmates and professors.
Similarly, Professor Nguyen also appreciates the adversity students face who will soon be graduating into an uncertain job market. Though it is tempting for graduates to accept a second-tier job offer to feel secure, Nguyen suggests students maintain their high standards and consider alternatives such as delaying graduation. Research shows that people who graduate following a financial crisis earn around 20% less over the course of their careers than those who graduate into more stable environments. While the impact of the pandemic has yet to be fully understood, Nguyen encourages students to take comfort in the fact that getting a job immediately may not be in their best interests anyway. Take advantage of everything DePaul has to offer and in the meantime, develop secondary skills that will improve your marketability.
Like many students during the pandemic, Professor Nguyen has picked up new hobbies. He tried his hand at baking sourdough bread, and while his starter has seen better days, he has found it very rewarding. He is also playing the role of dog-sitter for a friend who moved back to Vietnam for the time being.
Fun fact! Professor Nguyen’s work has been featured in the Wall Street Journal and Bloomberg.
By Kevin Albrecht
Quoc Nguyen is an assistant professor in the Department of Finance & Real Estate and a research fellow for the Driehaus Center for Behavioral Finance. *Additional information about Professor Nguyen’s research can be found here.