Operations Management, Compulsory readings for PhD students
2017/2018, (simplified version)
For all those who have not learnt Operations Management formerly, the book Krajewski/Ritzman/Malhotra: Operations Management, 10th edition, Pearson, 2013, is recommended before turning to these readings. The semester paper should be around 5-6 page long and must discuss operations related questions and topics raised by the papers below. The writing style of the semester paper should follow the “Management Science” style, i.e. it must be clear for readers what is the contribution of the author of the semester paper to the topic and what thoughts come from other papers on your reference list. The semester paper should reflect your knowledge and deep understanding of the issues contained in the articles below. (Harvard case studies or articles can be purchased online. Go to: www.hbsp.harvard.edu)
1. Operations Strategy I.:
- Collis-Montgomery: Competing on Resources: Strategy in the 1990s,
Harvard Business Review, 1995, July-August, 118-128
- Porter: What is strategy, HBR, 1996, November-December, 61-78.
- Kaplan, R.S. and D.P. Norton: Mastering the management system, HBR, 2008,
January, 63-78.
- Hayes-Pisano: Beyond World-Class: The New Manufacturing
Strategy, HBR, 1994 Jan-Feb, 77-86.
- Porter, M. E. and J. W. Rivkin: The Looming Challenge to U.S. Competitiveness,
HBR, 2012, March, 55-62.
2. Operations Strategy II. :
- Fisher: What is the Right Supply Chain for Your Product? HBR, 1997, March-April, 105-116
- Pisano, G., You need an innovation strategy, HBR, June 2015, 44-54.
- Wise, R. and P. Baumgartner: Go downstream. The new imperative in manufacturing,
HBR, Sept-Oct, 1999
- Pisano, G. P. and W. C. Shih: Restoring American Competitiveness, HBR, July-Aug,
2009. 114-125
3. Expansion & Growth:
- Siebel Systems: Organizing for the Customer, Harvard Case Study (HCS),
9-103-014
- Porter, M.: The five competitive forces that shape strategy, HBR, 2008, January,
79-94.
- Stalk et al.: Competing on Capabilities: The New Rules of Corporate
Strategy, HBR, 1992 March-April, 57-69
- Christensen et al.: One more time: What is disruptive innovation? HBR, Dec 2015, 44- 53
4. Aggregate planning:
- Dawar, N.: When marketing is strategy, HBR, December, 2013
- Fisher et. al.: Making Supply Meet Demand in an Uncertain World,
HBR, 1994 May-June, 83-93
- Hax-Candea: Production Planning, Irwin, 1986, pages 69-88, (or Vörös:
Termelés management, PTE, 1993, pages 37-71, 80-90)
- Yuan Sun, I.: The world’s next great manufacturing center, HBR, 2017, May-June, 124-129
5. Inventory Management:
- Barilla A, HBCase 9_694-046
- Krajewski-Ritzman-Malhotra: Operations Management, Prentice Hall, 10th ed. 2013.
pages 327-379
- Hax-Candea: Production Planning, Irwin, 1986, pages 88-92, 135-142, 146-147 (or Vörös: Termelés management, PTE, 1993, pages 235-258, 264-277)
- Vörös J.: Economic order and production quantity models without constraint on
the percentage of defective items, 2013, Central European Journal of Operations
Research, December
- Hauck, Zs. and J. Vörös, 2015, Lot sizing in case of defective items with investments to increase the speed of quality control, OMEGA, The International Journal of Management Science 52(2015), 180-189
6. JIT:
- Toyota Manufacturing Company, (HCS)
- Sakakibara at al: Just in Time Manufacturing and Its Infrastructure, Management Science, 1997. Sept., 1246-1258
- Watanabe, K.: Lessons form Toyota’s Long Drive, HBR, 2007, July-Aug, 74-83
- Cole, R. E.: What really happened to Toyota? MIT Sloan Management Review,
Summer 2011
- Vörös, J and G. Rappai: Process quality adjusted lot sizing and marketing interface in JIT
environment, 2016, Applied Mathematical Modelling, 40(13–14), 6708–6724
7. TQM:
- Sadun R, N. Bloom and J. van Reenen: Why do we undervalue competent management?, HBR,
2017, Sept-Oct, 121-127
- Hendricks at al: Does Implementing an Effective TQM Program
Actually Improve Operating Performance?, Management Science,
1997, Sept., 1258-1275
- Vörös, J.: Multi-period models for analyzing the dynamics of process improvement
activities, 2013, European Journal of Operational Journal, 230, pp. 615-623
8. Competing through operations:
- Wheelwright-Hayes: Competing through manufacturing, HBR, 1985 Jan-Feb, 99-108
- Porter, M. and J. Heppelmann,: How smart, connected products are transforrming companies, HBR, Oct 2015, 97- 114
- D’Aveni, R.: The 3-D revolution, HBR, 2015, May, 40-49.
- Pisano, G. P. and W. C. Shih: Does America Really Need Manufacturing? HBR,
March, 2012, 94-102
- Vörös: The Dynamics of Price, Quality and Productivity Improvement
Decisions, European Journal of Operational Research, 2006,
809-823.
9. Service Management:
- Fisher, M., V. Gaur, H. Kleinberger: Curing the addiction to growth, HBR, 2017, January, 66-74
- Haskett et.al.: Putting Service-Profit Chain to Work, HBR, 1994 March-April, 164-174
- Lafley, A.G. and R. L. Martin: Customer loyalty is overrated, HBR, 2017. January, 46-53
- Gunther McGrath, R.: Transient advantage, HBR, 2013. June
- Sawhney, M.: Putting products into services, HBR, Sept, 2016, 82-89
10. Supply Chain Management:
- Wal-Mart, IVEY, 907D01
- Krajewski-Ritzman-Malhotra: Operations Management, Prentice Hall, 10th ed. 2013.
pages 379- 405, 431-483
- Lee, H.: The triple A supply chain, HBR, Oct, 2004, 103-112
- Porter, M. and J. Heppelmann,: Why every organization needs an augmented reality strategy, HBR, Nov-Dec 2017, 46-57
Lecture Guide
Module: Corporate Finance and Monetary Economics III.
Lecturer: Dr. habil Schepp Zoltán, PhD., Associate Professor
Mail: schepp@ktk.pte.hu
Phone: +36-72-501599/23155
Dear Participants,
the main goal of the course is to give you an overview of the research areas in international finance with special focus on the core fields of exchange rates economics with a special emphasis on exchange rate and the newest efforts to solve the „forward discount bias”.
To achieve your credits you have to prepare a semester paper (about 20.000 net characters typed in MS-Word or Acrobat), which enclose one of the major areas of exchange rate economics. (You may find them also on certain PPT-slides of the course.) Three of the listed readings should be handled, and at least ten other citation (e.g. from electronic available journals in EBSCO, ScienceDirect or JSTOR) should be included there. Alternatively you may carry out an out of sample forecasting exercise with previously agreed characteristic (time span, frequency, currencies, forecasting horizon, out of sample window, etc.)
The deadline for the semester papers is 30th June of the next year, and it should be sent (with a mark about the course) as e-mail to iphd-admin@ktk.pte.hu (copy: schepp@ktk.pte.hu).
Selected readings
Basic literature (books):[1]
BEKAERT, G., HODRIVK, R.J., [2009]. International Financial Management. Pearson Prentice Hall
DE GRAUWE, p. [2003]: The Economics of Monetary <st1:place w:st="on">Union</st1:place>. <st1:place w:st="on"><st1:placename w:st="on">Oxford</st1:placename> <st1:placetype w:st="on">University</st1:placetype></st1:place> Press.
Engel, C., [2014]. Exchange Rates and Interest Parity, in Gopinath, G., and Helpman, E. (eds), Handbook of International Economics vol. IV, pp. 453-522, Amsterdam: North Holland.
FRANKEL, J.A.–ROSE, A.K. [2001]: Empirical Research on Nominal Exchange Rates. In: GROSSMAN, G.M.–ROGOFF, K. (ed.): Handbook of International Economics, Volume III., 2. Edition, p.1689-1729., Elsevier, <st1:place w:st="on"><st1:city w:st="on">Amsterdam</st1:city></st1:place>.
ISARD, P. [1995]: Exchange rate economics. <st1:placename w:st="on">Cambridge</st1:placename> <st1:placetype w:st="on">University</st1:placetype> Press, <st1:city w:st="on"><st1:place w:st="on">Cambridge</st1:place></st1:city>.
KRUGMAN, P.R.–OBSTFELD, M. [2000]: International Economics. Addison-Wesley, <st1:place w:st="on"><st1:city w:st="on">Amsterdam</st1:city></st1:place>.
LEWIS, K.K. [2001]: Puzzles in International Financial Markets. In: GROSSMAN, G.M.–ROGOFF, K. (ed.): Handbook of International Economics, Volume III., 2. Edition, pp. 1913-1971., Elsevier.
<st1:city w:st="on"><st1:place w:st="on">LYONS</st1:place></st1:city>, R.K. [2001]: The Microstructure Approach to Exchange Rates. MIT Press.
MCCALLUM, B.T. [1996]: International Monetary Economics. <st1:place w:st="on"><st1:placename w:st="on">Oxford</st1:placename> <st1:placetype w:st="on">University</st1:placetype></st1:place> Press.
MOOSA, I.A.–BHATTI, R.H. [1997]: International Parity Conditions. Macmillan Press,
OBSTFELD, M.–ROGOFF, K. [1996]: Foundations of International Macroeconomics. MIT Press, <st1:city w:st="on"><st1:place w:st="on">Cambridge</st1:place></st1:city>.
SARNO, L.-TAYLOR, M. P. [2002]: The Economics of Exchange Rate. <st1:place w:st="on"><st1:city w:st="on"><st1:placename w:st="on">Cambridge</st1:placename></st1:city> <st1:placetype w:st="on">U.</st1:placetype></st1:place> Press.
Puzzles and basic issues in international finance (selected journal articles):[2]
BACKUS, D.–FORESI, S.–TELMER, C. [2001]: Affine term structure models and the forward premium anomaly. Journal of Finance 56, p.279-304.
DOMINGUEZ, K.M.–FRANKEL, J.A. [1993]: Does Foreign Exchange Intervention Matter? The Portfolio Effect. American Economic Review 83, p.1356-1369.
DORNBUSCH, R. [1976]: Expectations and Exchange Rate Dynamics. Journal of Political Economy 84, p.1161-1176.
EVANS, M.D.D.–LYONS, R.K. [2004]: A New Micro Model of Excahnge rate Dynamics. NBER Working Paper Nr. 10379.
FAMA, E.F. [1984]: Forward and Spot Exchange Rates. Journal of Monetary Economics, p.319-338.
FRENKEL, J.A. [1976]: A Monetary Approach to the Exchange Rate: Doctrinal Aspekts and Empirical Evidence. Scandinavian Journal of Economics 78, p.200-224.
FRENKEL, J.A.–LEVICH, R.M. [1975]: Covered Interest Arbitrage: Unexploited Profits? Journal of Political Economy 83, p.325-338.
FUJII, E.–CHINN, M. [2000]: Fin de Siècle Real Interest Parity. NBER Working Paper Nr.7880.
INCI, A.C.–LU, B. [2004]: Exchange rates and interest rates: can term structure models explain currency movements? Journal of Economic Dynamics & Control, 28. p.1595-1614.
KRUGMAN, P.R. [1991]: Target Zones and Exchange Rate Dynamics. Quarterly Journal of Economics 106, p.669-682.
MCCALLUM, B.T. [1994]: A reconsideration of the uncovered interest parity relationship. Journal of Monetary Economics 33 (1994) p.105-132.
MACDONALD, R.–MARSH, I.W. [1997]: On Fundamentals and Exchange Rates: a Casselian Perspective. Review of Economics and Statistics, vol. 79. p. 655-664.
MEESE, R.A.–ROGOFF, K. [1983]: Empirical Exchange Rate Modells of the Seventies. Journal of International Economics, 14. (1983) p.3-24.
MONGELLI, F.P. [2002]: „New” Viewes on the Optimum Currency Area Theory: What is EMU Telling Us? European Central Bank, Working Paper Nr. 138.
MUSSA, M. [1976]: The Exchange Rate, the Balance of Payment and Monetary and Fiscal Policy under a Regime of Controlled Floating. Scandinavian Journal of Economics 78, p.229-248.
OBSTFELD, M. [1996]: Models of Currency Crisis with Self-Fulfilling Features. European Economic Review 40, p.1037-1048.
OBSTFELD, M.–ROGOFF, K. [1995]: Exchange Rate Dynamics Redux. Journal of Political Economy 103, p.624-660.
ROGOFF, K. [2002]: Dornbusch’s Overshooting Model After Twenty-Five Years. Working Paper 2002/39. International Monetary Fund.
ROGOFF, K. [1996]: The Purchasing Power Parity Puzzle. Journal of Economic Literature 34, p.1-29.
SARNO, L.-TAYLOR, M. P. [1999]: Moral Hazard, Asset Price Bubbles, Capital Flows, and the East Asian Crisis: The First tests. Journal of International Money and Finance 18, p.637-657.
TAYLOR, M.P: [1995]: The Economics of Exchange Rates. Journal of Economic Literature, vol. 33. (march 1995) p.13-47.
<st1:city w:st="on"><st1:place w:st="on">TAYLOR</st1:place></st1:city>, M.P.–PEEL, D.A. [2000]: Nonlinear Adjustment, Long-Run Equilibrium and Exchange Rate Fundamentals. Journal of International Money and Finance 19, p.33-53.
Out of sample exchange rate forecasting (journal articles):
Altavilla, C., De Grauwe, P., 2010. Forecasting and Combining Competing Models of Exchange Rate Determination. Applied Economics 42, 3455-3480.
Balassa, B., 1963. The Purchasing-Power Parity Doctrine: A Reappraisal. Journal of Political Economy 72, 584-596.
Bank for International Settlements, 2016. Triennial Central Bank Survey – Foreign Exchange Turnover in April 2016. Basel: BIS.
Berge, T.J., 2014. Forecasting Disconnected Exchange Rates. Journal of Applied Econometrics 29, 713-735.
Berkowitz, J., Giorgianni, L., 2001. Long-Horizon Exchange Rate Predictability? The Review of Economics and Statistics 83, 81-91.
Brooks, C., Burke, S.P., Stanescu, S., 2016. Finite Sample Weighting of Recursive Forecast Errors. International Journal of Forecasting 32, 458-474.
Cerra. V., Saxena, S.C., 2008. The Monetary Model Strikes Back: Evidence from the World. IMF Working Paper No. 08/73.
Chen, Y., Tsang, K.P., 2013. What Does the Yield Curve Tell Us about Exchange Rate Predictability? Review of Economics and Statistics 95, 185-205.
Cheung, Y-W., Chinn, M.D., Pascual, A.G., 2005. Empirical Exchange Rate Models of the Nineties: Are Any Fit to Survive? Journal of International Money and Finance 24, 1150-1175.
Chinn, M.D. Quayyum, S. 2012. Long Horizon Uncovered Interest Parity Re-Assessed. NBER Working Paper No. 18482
Chinn, M.D., Moore, M.J., 2011. Order Flow and the Monetary Model of Exchange Rates: Evidence from a Novel Data Set. Journal of Money, Credit, and Banking 43, 1599-1624.
Clarida, R.H., Sarno, L., Taylor, M.P., Valente, G., 2003. The Out-of Sample Success of Term Structure Models as Exchange Rate Predictors: A Step Beyond. Journal of International Economics 60, 61-83.
Clarida, R.H., Taylor, M.P., 1997. The Term Structure of Forward Exchange Rate Premiums and the Forecastability of Spot Exchange Rates: Correcting the Errors. The Review of Economics and Statistics 79, 353-361.
Clark, T.E., West, K.D., 2006. Using Out-of-Sample Mean Squared Prediction Errors to Test the Martingale Difference Hypothesis. Journal of Econometrics 135, 155-186.
Clark, T.E., West, K.D., 2007. Approximately Normal Tests for Equal Predictive Accuracy in Nested Models. Journal of Econometrics 138, 291-311.
Dal Bianco, M., Camacho, M., Perez Quiros, G., 2012. Short-Run Forecasting of the Euro-Dollar Exchange Rate with Economic Fundamentals. Journal of International Money and Finance 31, 377-396.
Darvas, Z., Rappai, G., Schepp, Z., 2006. Uncovering Yield Parity: A New Insight into the UIP Puzzle through the Stationarity of Long Maturity Forward Rates. De Nederlandsche Bank Working Paper No. 98.
Darvas, Z., Schepp, Z., 2009. Long Maturity Forward Rates of Major Currencies are Stationary. Applied Economics Letters 16(11), 1175-1181.
Darvas, Zs., Schepp Z. 2017: Forecasting exchange rates of major currencies with long maturity forward rates. Manuscript (pp 1-64.)
Della Corte, P., Sarno, L., Tsiakas, I., 2009. An Economic Evaluation of Empirical Exchange Rate Models. Review of Financial Studies 22, 3491-3530.
Diebold, F.X., Mariano, R.S., 1995. Comparing Predictive Accuracy. Journal of Business and Economics Statistics 13, 253-263.
Engel, C., Mark, N.C., West, K.D., 2005. Exchange Rate Models Are Not as Bad as You Think, NBER Macroeconomics Annual 2007, 381-441.
Engel, C., Mark, N.C., West, K.D., 2015. Factor Model Forecast of Exchange Rates. Econometric Reviews 34, 32–55.
Engel, C., West, K.D., 2005. Exchange Rates and Fundamentals. Journal of Political Economy 113, 485-517.
Faust, J., Rogers, J.H., Wright, J.H., 2003. Exchange Rate Forecasting: The Errors We’ve Really Made. Journal of International Economics 60, 35-59.
Flood, R.P., Rose, A.K., 1999. Understanding Exchange Rate Volatility without the Contrivance of Macroeconomics. The Economic Journal 109, F660-F672.
Froot, K.A., Ito, T., 1989. On the Consistency of Short-Run and Long-Run Exchange Rate Expectations. Journal of International Money and Finance 8, 487-510.
Gourichas, P.O., Rey, H., 2007. International Financial Adjustment. Journal of Political Economy 115, 665-713.
Ince, O., Molodtsova, T., Papell, D.H., 2016. Taylor Rule Deviations and Out-of-Sample Exchange Rate Predictability. Journal of International Money and Finance 69, 22-44.
Kilian, L., 1999. Exchange Rates and Monetary Fundamentals: What do We Learn from Long-Horizon Regressions? Journal of Applied Econometrics 14, 491-510.
Kilian, L., Taylor, M.P., 2003. Why is it so Difficult to Beat the Random Walk Forecasts of Exchange Rates? Journal of International Economics 60, 85-107.
Kouwenberg, R., Markiewicz, A., Verhoeks, R., Zwinkels, R.C.J. 2017. Model Uncertainty and Exchange Rate Forecasting. Journal of Financial and Quantitative Analysis 52, 341-363.
Li, J., Tsiakas, I., Wang, W., 2015. Predicting Exchange Rates Out of Sample: Can Economic Fundamentals Beat the Random Walk? Journal of Financial Econometrics 13, 293-341.
MacDonald, R., Marsh, I.W., 1997. On Fundamentals and Exchange Rates: A Casselian Perspective. The Review of Economics and Statistics 79, 655-664.
Mark, N.C., 1995. Exchange Rates and Fundamentals: Evidence on Long-Horizon Predictability. The American Economic Review 85, 201-218.
Mark, N.C., Sul, D., 2001. Nominal Exchange Rates and Monetary Fundamentals: Evidence from a Small Post-Bretton Woods sample. Journal of International Economics 53, 29-52.
McCracken, M.W., Sapp, S.G., 2005. Evaluating the Predictability of Exchange Rates Using Long-Horizon Regressions: Mind Your p's and q's! Journal of Money, Credit and Banking 37, 473-494.
Molodtsova, T., Papell, D.H., 2009. Out-of-Sample Exchange Rate Predictability with Taylor Rule Fundamentals. Journal of International Economics 77, 167-180.
Moosa, I., 2013. Why Is It So Difficult to Outperform the Random Walk in Exchange Rate Forecasting? Applied Economics 45, 3340-3346.
Park, C., Park, S., 2013. Exchange Rate Predictability and a Monetary Model with Time- Varying Cointegration Coefficients. Journal of International Money and Finance 37, 394-410.
Rime, D., Sarno, L., Sojli, E., 2010. Exchange rate forecasting, order flow and macroeconomic information. Journal of International Economics 80, 72-88.
Rossi, B., 2007. Expectation Hypothesis Tests at Long Horizons. Econometrics Journal 10, 554-579.
Rossi, B., 2013. Exchange Rate Predictability. Journal of Economic Literature 51, 1063-1119.
Samuelson, P., 1964. Theoretical Notes on Trade Problems. The Review of Economics and Statistics 46, 145-154.
Sarno, L., 2005. Viewpoint: Towards a Solution to the Puzzles in Exchange Rate Economics: Where do we Stand? Canadian Journal of Economics 38, 673-708.
Sarno, L., Valente, G., 2009. Exchange Rates and Fundamentals: Footloose or Evolving Relationship? Journal of the European Economic Association 7, 786-830.
Wang, J., Wu, J.J., 2012. The Taylor Rule and Forecast Intervals for Exchange Rates. Journal of Money, Credit, and Banking 44, 103-144.
Wright, J.H., 2008. Bayesian Model Averaging and Exchange Rate Forecasts. Journal of Econometrics 146, 329-341.
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| ECONOMETRIC ANALYSIS | Credit: | 4 | |
| Lecturer: | Gábor Kőrösi, Professor | E-mail: | korosig@ktk.pte.hu | |
| Purpose: | The subject gives an overview of the most important econometric methods, techniques, approaches used in empirical economic analysis. | |||
| Short description: | The main econometric tools are presented through empirical work, analysing various economic problems. The course will demonstrate methodological differences stemming both from the model design and the characteristics of the dataset. Special emphasis is put on specification analysis and model diagnostics. Practical work will be done with two easy to use econometric packages: eviews and gretl. | |||
| Course schedule (each class is two hours long) | ||||
| 1. 18 Oct. | Is it worth to study? Are you discriminated for or against? | |||
| 2. 18 Oct. | Can we forecast demand? | |||
| 3. 19 Oct. | Is the Budapest stock exchange efficient? | |||
| 4. 19 Oct. | How do companies set wages? | |||
| Assessment: | By reporting on an empirical econometric project. Deadline: 4 December 2017 Each student can choose any topic and suitable dataset for the project. The report must include: • the statement of the problem to be analysed; • a very short synthesis of the relevant literature, concentrating on the model specifications; • explanation of the models used; • description of the dataset; • appropriate presentation of the relevant empirical results; and • interpretation of your results and conclusion. The report should not exceed 10 double spaced pages (i.e., about 3000 words), although appendices can be attached (e.g., output of estimation results). Be brief, be precise, and do not waffle. Excessively long reports will be penalized. Attach the dataset to your report. Submit the report and the dataset to: korosig@ktk.pte.hu | |||
| Suggested readings: | Stock and Watson: Introduction to Econometrics, Addison-Wesley, 2011 Wooldridge: Introductory Econometrics, MIT, 2009 Pesaran: Time Series and Panel Data Econometrics, Oxford, 2015. Wooldridge: Econometric Analysis of Cross Section and Panel Data, MIT, 2010 Greene: Econometric Analysis. Prentice Hall, 2008. Berndt: The Practice of Econometrics, Addison-Wesley, 1991 Brooks: Introductory Econometrics for Finance, Cambridge, 2008 Cameron and Trivedi: Microeconometrics, Cambridge, 2005 Kőrösi, Mátyás and Székely: Practical Econometrics, Avebury, 1992 Angrist and Pischke: Mastering "metrics", Princeton, 2015 Papers uploaded to Neptun | |||