Although all types of accounting numbers are in theory prone to noise, the concept receives verylittle attention in cost accounting. Motivated by its potentially detrimental consequences fordecision making, we develop a numerical experiment that investigates how random measurementerrors...

There is a divergence in the returns of top-performing (star) firms and the rest of the economy, especially in industries that rely on a skilled labor force, raising concerns of their market power. We show that the divergence is largely explained by the mismeasurement of intangible capital....

We study how changes to the informativeness of signals in Bayesian games and single-agent decision problems affect the distribution of equilibrium actions. A more precise private signal about an unknown state of the world leads to an mean-preserving spread of an agent's beliefs. Focusing on...

The ability to reduce current and future taxable income with prior years' taxable losses is highly relevant for explaining firms' effective and marginal tax rates. Compustat data on the tax loss carryforward (TLCF) are, however, often missing. We propose a method to impute estimated values for...

The occurrence of accounting manipulation and creative accounting practices have consequently reduced the value of accounting numbers in the form of decreased earnings quality. Analysts use these reported earnings to make appropriate predictions and as such the underlining principles of the...

Methodological research has showcased GPS technology as the new gold-standard in land area measurement in large-scale household surveys. Nonetheless, facing budget constraints, survey agencies continue to measure with GPS only plots within sampled enumeration areas or a given radius of dwelling...

In this paper, we conduct simultaneous inference of the non-parametric part of a partially linear model when the non-parametric component is a multivariate unknown function. Based on semi-parametric estimates of the model, we construct a simultaneous confidence region of the multivariate...

The highly mathematical nature of the Arrow-Debreu and other similar models of general equilibrium hide rather than elucidate the nature of equilibrium in a private property market economy where all factors of production may be purchased or rented. It is an empirical commonplace that the...

Active portfolio managers are eager to predict future volatility in the returns of schemes. Returns of each scheme are tracks with the returns of respective bench mark, technically called as tracking error. Ex-ante tracking error plays a crucial role in predicting future performance of the...

The ability to test for statistical causality in linear and non-linear contexts, in stationary or non-stationary settings and to identify whether statistical causality influences trend of volatility forms a piratically important class of problems to explore in multi-modal and multivariate...