Advance pricing agreements (APAs) determine transfer prices for intra-firm transactions in advance. This paper interprets these contracts as a means to overcome a hold-up problem that occurs because governments cannot commit to non-excessive future tax rates. In addition, with private...

Price Earnings- and Market Book-ratios presume a systematic link between financial statement data and company value. We analyze this relationship in a steady state model with overlapping capacity investments where company value is inferred from a constant growth residual income model. We...

We employ residual income as performance measure in a regulatory context utilizing the relative replacement cost rule (Rogerson, 2008, 2011). We find, in line with Rogerson (2008, 2011), that overall welfare is maximized if the regulator is aware of the data required to parameterize the model....

Unbiased accounting is supposed to provide perfect economic information to decision makers. We identify three notions of unbiased accounting in the literature, promoting return-, cost-, or value-disclosure as guiding principle and evaluate them based on the criterion of informational...

In this paper, the world distribution of personal incomes (WDPI) is estimated using a global sample comprising country sample clones. A clone is a random sample that reproduces – with predetermined high probability and precision – an unknown survey sample using information that is 'encoded'...