- Email: [email protected]
Financial modelling — A practical guide
Book reviews
255
ered methods of improving survey forecast content and accuracy. Dramais develops a very nice generalized LOGIT model to improve the European Economic Community Business Survey results. The presentation of the text is flawed in that the tables are omitted from several of the papers in order to save space. In the case of the paper by Eisner/Albert/Sullivan, the omission of tables makes coherent reading or analysis of the paper almost impossible. A better method of conserving text length would have been for the editors to urge many of the paper authors to write in a more concise and less redundant manner. In summary, this text will be of great interest to all producers or users of survey forecasts. Perhaps the most impressive aspect of the book (and conference) is that survey results from a truly wide variety of nations (the United States, France, West Germany, Italy, Sweden, the United Kingdom, South Africa, and Japan) are analyzed in the conference sessions. Although several of these articles will certainly appear in journals (for example, the paper presented by Zarnowitz appeared in the January-March 1984 issue of Journal of Forecasting), this text will still be a worthwhile addition to a personal or academic library. Daniel T. Walz Trinity University, San Antonio, TX
Dennis 434.
Sherwood,
Financial
Modelling
- A Practical
Guide (Gee, London,
1983) $24X0/&25.75,
pp.
This book is written by a practitioner, seemingly for a managerial audience. The text is lucid, well organised, and, to the extent that technical terms are used, these are carefully explained. Part I deals with the basic context of modelling and model use. Part II gives the reader an overview of relevant technology in the areas of models, languages and equipment. Part III presents a thorough and comprehensive coverage of the methodology of modelling, from model specifications all the way through presentation of model output to management. Part IV gives some detailed examples of models and includes treatment of such things as methods of generating time series of data and applying seasonal patterns to these. In supplementary tables the key features of a fairly extensive selections of modelling languages, time-sharing services and microcomputers are analyzed and compared. The style of the text is pragmatic and authoritative. The author demonstrates an excellent, first-hand knowledge of his subject, and he is an expert communicator. The text will be useful to managers who require a fairly detailed introduction to financial models and modelling. On the other hand, this field is moving so rapidly that any book soon becomes dated. Hence, some of the more recent developments, in such things as micro-languages, are not covered. The book may have a rather limited appeal to academic audiences. This is because it makes no attempt to locate the subject matter within the conceptual structures and research findings of MIS, finance theory, organisation theory, or planning and control, all of which are pertinent. Hence, the book cannot be used as a central text for a graduate course on the subject and, given its nature, the subject is unlikely to be offered in an undergraduate curriculum. The book’s most likely role in an academic context is as a supplementary text for a graduate course in computer-based modelling for corporate financial management, planning and control. Morris, Mclnnes Sloan School, MIT, Boston, MA
255
ered methods of improving survey forecast content and accuracy. Dramais develops a very nice generalized LOGIT model to improve the European Economic Community Business Survey results. The presentation of the text is flawed in that the tables are omitted from several of the papers in order to save space. In the case of the paper by Eisner/Albert/Sullivan, the omission of tables makes coherent reading or analysis of the paper almost impossible. A better method of conserving text length would have been for the editors to urge many of the paper authors to write in a more concise and less redundant manner. In summary, this text will be of great interest to all producers or users of survey forecasts. Perhaps the most impressive aspect of the book (and conference) is that survey results from a truly wide variety of nations (the United States, France, West Germany, Italy, Sweden, the United Kingdom, South Africa, and Japan) are analyzed in the conference sessions. Although several of these articles will certainly appear in journals (for example, the paper presented by Zarnowitz appeared in the January-March 1984 issue of Journal of Forecasting), this text will still be a worthwhile addition to a personal or academic library. Daniel T. Walz Trinity University, San Antonio, TX
Dennis 434.
Sherwood,
Financial
Modelling
- A Practical
Guide (Gee, London,
1983) $24X0/&25.75,
pp.
This book is written by a practitioner, seemingly for a managerial audience. The text is lucid, well organised, and, to the extent that technical terms are used, these are carefully explained. Part I deals with the basic context of modelling and model use. Part II gives the reader an overview of relevant technology in the areas of models, languages and equipment. Part III presents a thorough and comprehensive coverage of the methodology of modelling, from model specifications all the way through presentation of model output to management. Part IV gives some detailed examples of models and includes treatment of such things as methods of generating time series of data and applying seasonal patterns to these. In supplementary tables the key features of a fairly extensive selections of modelling languages, time-sharing services and microcomputers are analyzed and compared. The style of the text is pragmatic and authoritative. The author demonstrates an excellent, first-hand knowledge of his subject, and he is an expert communicator. The text will be useful to managers who require a fairly detailed introduction to financial models and modelling. On the other hand, this field is moving so rapidly that any book soon becomes dated. Hence, some of the more recent developments, in such things as micro-languages, are not covered. The book may have a rather limited appeal to academic audiences. This is because it makes no attempt to locate the subject matter within the conceptual structures and research findings of MIS, finance theory, organisation theory, or planning and control, all of which are pertinent. Hence, the book cannot be used as a central text for a graduate course on the subject and, given its nature, the subject is unlikely to be offered in an undergraduate curriculum. The book’s most likely role in an academic context is as a supplementary text for a graduate course in computer-based modelling for corporate financial management, planning and control. Morris, Mclnnes Sloan School, MIT, Boston, MA