Please use this identifier to cite or link to this item:
Income Smoothing as Rational Equilibrium Behavior? A Second Look
|dc.description.abstract||In this paper I revisit the issue of real income smoothing in the setting used by Lambert (1984). I demonstrate that the particular effect identified in his paper is actually an error: under his assumptions there is no input driven equilibrium income smoothing of the type he suggests. There are, however, several other drivers of equilibrium behavior ignored in that paper. In this paper I identify those and for the particular model structure show that when all effects are considered together there is little support for the suggestion that second-best earnings generally is being smoothed through the equilibrium behavior.|
|dc.title||Income Smoothing as Rational Equilibrium Behavior? A Second Look|
|Appears in Collections:||
11 Financial: Financial Reporting Quality / Credit Ratings / Earnings Smoothing / Earnings Comparability (FAR3)|
Please email firstname.lastname@example.org if you need this content in ADA-compliant format.
Items in ScholarSpace are protected by copyright, with all rights reserved, unless otherwise indicated.