Realized extreme quantile: A joint model for conditional quantiles and measures of volatility with EVT refinements

We propose a new framework exploiting realized measures of volatility to estimate and forecast extreme quantiles. Our realized extreme quantile (REQ) combines quantile regression with extreme value theory and uses a measurement equation that relates the realized measure to the latent conditional quantile. Model estimation is performed by quasi maximum likelihood, and a simulation experiment validates this estimator in finite samples. An extensive empirical analysis shows that high‐frequency measures are particularly informative of the dynamic quantiles. Finally, an out‐of‐sample forecast analysis of quantile‐based risk measures confirms the merit of the REQ.     

EDUCATIONAL PRODUCTION IN INDEPENDENT SECONDARY SCHOOLS

This article contributes to an established and growing literature in which a production function is estimated for educational institutions in order to investigate the relationship between school characteristics and performance.
Existing studies in this area have generally met with only limited success. The present study, through its application of a statistical model to comprehensive data drawn from the UK private sector of education identifies a wide range of school characteristics which significantly influence performance.
The article offers meaningful results and guidelines for further development of techniques in the investigation of a topic which is relevant to both producers and consumers of education.     

A model of demand,productivity and foreign location decision among Taiwanese firms

We develop a theoretical framework to examine the relative importance of firm demand and productivity in firm decisions to export and where to locate foreign direct investments. The model shows that the equilibrium firm decision depends on product technology, consumer preference for product quality, fixed investment costs of establishing a foreign subsidiary, transportation costs and relative wages. Our empirical results confirm the predictions of the theoretical model. Firm-level demand and productivity components are important in explaining the decision to participate in foreign markets with their relative importance depending on the firm's organizational form (exports versus FDI) and the destination of the investments. In general, FDI firms are more productive than exporting firms regardless of FDI destinations. FDI firms also have a higher demand component than exporters and this demand component is stronger than productivity. Finally, among FDI firms, while those with a high demand index and productivity have a significantly higher propensity to invest in high-income countries, firm productivity is the sole determinant of firms undertaking FDI in low-income countries.     

Assembly FG: An Educational Case on MRP II Integrated within ERP

This case teaches students how discrete (job order) manufacturing companies use Manufacturing Resource Planning (MRP II) within Enterprise Resource Planning (ERP) systems to plan purchase orders for direct materials and shop orders for work‐in‐process and finished goods. Students simulate MRP II integrated within ERP, using Microsoft Excel to learn MRP II's bill‐of‐materials (BOM) Explosion that plans order quantities and MRP II's scheduling logic that uses lead‐times to determine start dates for planned orders. Students explain why MRP II is most practical and effective when executed within ERP and how MRP II can reduce excess inventories, prevent inventory shortages, and help companies deliver quality products to customers on schedule. Also, students explain why BOM, inventory, and lead‐time inaccuracies can adversely affect the accuracy of MRP II‐planned replenishments and identify controls that reduce the risks of these inaccuracies.