Accounting and Causal Effects: Econometric Challenges by Douglas A Schroeder

By Douglas A Schroeder

While there's a massive literature in hard work economics and microeconometrics directed towards endogenous causal results, causal results have bought rather restricted cognizance in accounting. This quantity builds on econometric foundations, together with linear, discrete selection, and nonparametric regression types, to deal with tough accounting concerns characterised via microeconomic basics and equilibrium reporting offerings. either classical and Bayesian innovations for selecting and estimating accounting therapy results are mentioned generally. This unique source for researchers and scholars explores interactions between concept, facts, and version specification concerns, and enhances modern econometrics and information, in addition to accounting.

Show description

Read or Download Accounting and Causal Effects: Econometric Challenges PDF

Best managerial books

Government Intervention in Globalization: Regulation, Trade and Devaluation Wars

This ebook presents institutional details and makes use of analytical instruments to explains why governments may still interfere in economies laid low with globalization. With research of present state reviews and concerns, this ebook is an important learn for all attracted to the calls for on fiscal coverage in globalized age.

Managerial Accounting, 8th Edition

Crosson and Needles proceed to assist teachers remain on most sensible of the switch curve with Managerial Accounting. Balanced, versatile content material during this market-leading textual content is supported through an array of built-in print and expertise supplementations. even if an teacher desires to current a consumer or procedural orientation, include new educational techniques, enhance scholars' center talents and talents, or combine know-how into the school room, Managerial Accounting offers a complete resolution, making it the traditional selection for accounting teachers.

Winning CFOs: Implementing and Applying Better Practices

Larger practices that modern-day CFOs can hire to deliver price and potency to the groups that report back to them supporting company accountants from the CFOs to the administration accountant enforce larger practices that might make a distinction to their finance team's functionality, successful CFOs indicates company accountants how one can create everlasting advancements of their organization's procedures.

Value-Based Working Capital Management: Determining Liquid Asset Levels in Entrepreneurial Environments

Value-Based operating Capital administration analyzes the factors and results of fallacious money move administration among entrepreneurial firms with various degrees of probability. This paintings appears on the reasons and standards for decision-making by way of marketers of their efforts to guard the monetary defense in their companies and deal with monetary liquidity.

Extra info for Accounting and Causal Effects: Econometric Challenges

Sample text

3. produces σ 2∗∗ 2 Asymmetric information reduces report precision and lowers the owner’s satisfaction. 3 Regulated precision choice and transaction design Asymmetric information produces a demand or opportunity for regulation. Assuming the regulator can identify the report precision preferred by the owner σ 2∗ 2 , full compliance with regulated inverse-precision ˆb restores the benchmark solution. However, the owner may still exploit her private information even if it is costly to design transactions which appear to meet the regulatory standard when in fact they do not.

1 Y = Γ−1 (Xβ + ε) and Γ−1 ε ∼ (0, I) 22 3. Linear models −1 −1 = I. Now, OLS applied = Γ−1 ΓΓT ΓT since Γ−1 0 = 0 and Γ−1 Σ ΓT −1 to the regression of Γ Y (in place of Y ) onto Γ−1 X (in place of X) yields bGLS bGLS T = Γ−1 X = X T Γ−1 = X T Σ−1 X −1 Γ−1 X T Γ−1 X −1 Γ−1 X −1 T Γ−1 Y X T Γ−1 T Γ−1 Y X T Σ−1 Y (Aitken estimator) Hence, OLS regression of suitably transformed variables is equivalent to GLS regression, the minimum variance linear unbiased estimator for the above DGP. OLS is unbiased for the above DGP (but inefficient), E [b] = β + EX −1 XT X X T E [ε | X] = β However, V ar [b | X] is not the standard one described above.

To see that OLS is inconsistent when the cross-sectional effects are correlated with the errors consider the complementary between-groups estimator. A betweengroups estimator only utilizes the variation among group means. β BG = X T PD X −1 X T PD Y The between-groups estimator is inconsistent if the (cross-sectional) group means are correlated with the regressors. Further, since the OLS estimator can be written as a matrix-weighted average of the within-groups and between-groups estimators, if the between-groups estimator is inconsistent, OLS (without fixed effects) is inconsistent as demonstrated below.

Download PDF sample

Rated 4.03 of 5 – based on 37 votes