Matthias is a Departmental Lecturer interested in a deep understanding of machine learning algorithms and their applications to solve real-world problems. He firmly believes that Artificial Intelligence will revolutionise the Economic Sciences and multiply what this discipline can contribute to society. He is a polymath regarding machine learning techniques, studying and applying algorithms from Step-indicator Saturation to LSTMs and natural language processing techniques. 

Matthias' theoretical work focused on the study of the asymptotic theory of the Step-indicator Saturation estimator. This algorithm finds and models location shifts in time-series, which are changes in the mean of time-series. In the wake of significant disruptions of economic systems, such as the Global Financial Crisis or the Brexit transition process, algorithms that can handle structural breaks are more important than ever before. Matthias’ research gives this algorithm strengthened credibility, by proving a set of desirable theoretical properties that the algorithm exhibits.

His empirical work surrounds three markets, namely financial, property and labour markets. First, he builds statistical models of global financial markets, including interest rates, inflation swaps, equity prices and futures. He is particularly interested in unusual phenomena of these time-series. These include the breakdown of the efficient market hypothesis during commodity price crashes or the shift in the geography of price discovery during earning calls of dual-listed firms. Furthermore, he studies the outperformance of LSTM models in predicting financial volatility. He also established the co-integration relationship between deindustrialisation and the real interest rate. Goldman Sachs and several boutique quant funds apply Matthias' algorithms to trade on financial markets. A series of Oxford colleges, including Christ Church, rely on Matthias to evaluate their endowment returns. Overall, this project aims to push the boundaries of our understanding of the financial markets by applying state-of-the-art machine learning methods to shed new light on traditional questions in finance.

Second, Matthias investigates the British residential property market. He combines property and individual level data to get a comprehensive understanding of the market. The project involves the merger of several large-scale datasets, including the public land registry and proprietary individual-level datasets. The project aims to predict which changes in property prices on a neighbourhood and property level and how policy and public investment decisions drive these price dynamics.

Third, Matthias studies the dynamics of labour markets. As part of the ESRC project on English Law and AI, he uses online job vacancies to explain the effect of legislation on demand for labour in the United Kingdom. He also maps out the temporal change in the skill demand across vital service industries, including the legal, insurance and accounting sector. For the Faraday Institution, Matthias mapped out the adoption of Industry 4.0 techniques in battery plants across a range of geographies. The project aims to predict labour market trends using worker-level data.

Matthias is actively looking for collaborators and students who are interested in working on either of the three streams. For collaborators and students interested in working on quant finance, please attend the quant finance reading group which he organises with Dr Jan-Peter Calliess at the Oxford-Man Institute.

Matthias is a passionate and award-winning teacher. For the PPE & EM degree, Matthias is lecturing Econometrics. For the MFE degree at the Said Business School, Matthias is teaching Financial Econometrics. Matthias also teaches tutorials in Macroeconomics at several Oxford colleges. His students have achieved a significantly higher number of firsts than the PPE/E&M average in Economics exams and have gone on to win several exam prizes, including the Gavin Cameron Prize and the Gibbs Prize for highest and second highest cohort-wide exam marks. Other of his tutorial students have also won renown prizes, such as the Nobel Peace Prize, though Matthias has not contributed to this.

Previously, he completed his MPhil and DPhil in Economics under the supervision of Professor Bent Nielsen. His undergraduate degree is from the Humboldt Universität in Berlin. He is an associate member at Nuffield College and the Oxford-Man Institute.