Publications

December 1989
Article

On the Consistency of Short-Run and Long-Run Exchange Rate Expectations

By: K. A. Froot and T. Ito

This paper examines whether short-term exchange rate expectations 'overreact' by comparing them with long-term expectations. We develop a set of nonlinear restrictions linking expectations at different forecast horizons. The restrictions impose consistency, a property... View Details

Keywords: Currencies; Exchange Rates; International Macroeconomics; Monetary Policy; Currency Controls; Fixed Exchange Rates; Floating Exchange Rates; Currency Bands; Currency Zones; Currency Areas; Rational Expectations; Asset Pricing

November 1989 (Revised June 1995)
Supplement

Westinghouse Electric Corp.: Automating the Capital Budgeting Process (B2)

By: Lynda M. Applegate and Julie H. Hertenstein

Gives the voting results for the Power Systems Division's Vax System upgrade project. View Details

Keywords: Capital Budgeting; Manufacturing Industry

15 Nov 1989 - 16 Nov 1989
Lecture

The Causes and Implications of Japan's High Savings Rate

By: W. Carl Kester

Keywords: Saving; Japan

November 1989 (Revised November 2002)
Case

American Dream, The

By: Donald A. Brown, William J. Poorvu and Richard E Crum

Explores the process of purchasing a single family house through the eyes of a young couple. The couple is trying to determine what type of home to buy as well as how to finance it. View Details

Keywords: Personal Finance; Financing and Loans; Decisions; Real Estate Industry

1989
Chapter

Minguo shiqi Zhongwai jingji jishu hezuo: Meigo zhanshi shengchan quwentuan huan Hua, 1944-1946 [Sino-foreign Economic and Technical Cooporation in Republican China: The U.S. War Production Mission to China, 1944-46]

By: William C. Kirby

Keywords: History; International Finance; International Relations; Cooperation; Developing Countries and Economies; China; United States

October 1989 (Revised August 1995)
Case

Tysons Corner

By: William J. Poorvu

Hollinswood Associates, a joint venture partnership, has developed and operated a Marriott Hotel in Tysons Corner, Virginia. The partnership has been very successful in the past but it is now facing a significant cash flow deficit. Designed to examine how a partnership... View Details

Keywords: Conflict Management; Change Management; Partners and Partnerships; Joint Ventures; Cash Flow; Investment; Accommodations Industry; Real Estate Industry; Virginia

October 1989 (Revised May 1996)
Teaching Note

Walt Disney Co.'s Yen Financing, Teaching Note

By: W. Carl Kester

Teaching Note for (9-287-058). View Details

Keywords: Finance; Motion Pictures and Video Industry

September 1989 (Revised April 1990)
Case

Banc One Corp.--1989

By: Rosabeth M. Kanter

Banc One Corp., an innovative and financially successful super-regional bank holding company, has a track record of upgrading performance of acquisitions while retaining previous management--doing better with the same people. In June 1989 Banc One made its first... View Details

Keywords: Business Growth and Maturation; Banks and Banking; Private Ownership; Human Resources; Mergers and Acquisitions; Performance Evaluation; Management Teams; Banking Industry; United States

September 1989
Background Note

Performance Curves: Costs, Prices, and Value

By: Robert J. Dolan and Benson P. Shapiro

Explains the concept of a family of performance curves. The most well known is the price/performance curve relating the prices of items in a product line to their performance. Also discusses the cost/performance curve and its impact on product positioning, product line... View Details

Keywords: Cost vs Benefits; Price; Product Positioning; Performance; Competition; Value

September 1989
Article

Exchange Rate Pass-Through When Market Share Matters

By: K. A. Froot and P. Klemperer

Keywords: International Trade; Purchasing Power Parity; International Finance

Article

Fly-by-Night Firms and the Market for Product Reviews

By: Gerald R. Faulhaber and Dennis A. Yao

This paper presents a model that permits third-party information provision in a market characterized by information asymmetries and reputation formation. The model is used to examine how the market for information provision affects prices and supply in the primary... View Details

Keywords: Markets; Reputation; SWOT Analysis; Mathematical Methods; Price Bubble; Inflation and Deflation; Duopoly and Oligopoly; Cost; Information; Quality; Price; Competitive Advantage; Information Industry

September 1989
Case

Funding the United States Social Security System

By: Arthur Schleifer Jr.

Keywords: Welfare; Sovereign Finance; United States

fall 1989
Article

How Do Investors Interpret Firms' Financial Decisions

By: Paul M. Healy and Krishna G. Palepu

Keywords: Finance; Decision Making; Investment

Article

Losing to Win: U.S. Steel's Pricing, Investment Decisions, and Market Share, 1901-1938

By: F. L. Reinhardt and T. K. McCraw

Keywords: Price; Investment; Revenue; Steel Industry

August 1989 (Revised May 1991)
Case

Grosvenor Park

By: William J. Poorvu and Katherine Sweetman

Dick Dublin believes he has designed a townhouse development which will appeal to mobile young professionals. Dublin has removed some market risk by locking in a forward commitment for low interest rate loans for future purchasers at Grosvenor Park. The pricing... View Details

Keywords: Financial Management; Projects; Financing and Loans; Property; Financial Strategy; Price; Strategic Planning; Business and Government Relations; Real Estate Industry; Maryland

August 1989 (Revised January 1992)
Case

Prospect Hill

By: William J. Poorvu and Katherine Sweetman

Bill Hassett, a partner in the Nelson Companies, has to make some important decisions regarding the expansion of Prospect Hill Executive Office Park in Waltham, Massachusetts. The pre-development issues concerning him about the Hillside Building include how to position... View Details

Keywords: Expansion; Growth and Development Strategy; Property; Decisions; Interest Rates; Urban Development; Organizational Structure; Real Estate Industry; Massachusetts

July 1989 (Revised April 2001)
Case

Kanthal (A)

By: Robert S. Kaplan

Multinational company needs an improved cost system to determine the profitability of individual customer orders. Its strategy is to have significant sales and profitability growth without adding additional administrative and support people. The new cost system... View Details

Keywords: Cost Accounting; Earnings Management; Cost Management; Financial Management; Multinational Firms and Management; Business or Company Management; Customer Relationship Management; Sales; Business Strategy; Profit; Electronics Industry

July 1989 (Revised May 2004)
Case

Colonial Homes

By: David E. Bell

Colonial Homes supplies a complete raw materials package to build entire homes. The price of the package is guaranteed at the signing of the sales contract, while delivery (and payment) are not effected for up to six months. In an effort to reduce its exposure to... View Details

Keywords: Customer Value and Value Chain; Contracts; Price; Price Bubble; Fluctuation; Monopoly; Problems and Challenges; Sales; Accommodations Industry; Real Estate Industry