Empirical research in the social sciences often proceeds in the following manner. First, the researcher formulates an hypothesis regarding a phenomenon of interest. Second, the researcher identifies the empirical predictions of competing hypotheses. Third, the researcher gathers relevant data,...

GAAP mandates a variety of departures from historical cost valuation. We consider a simple model that produces corresponding variety, depending on prevailing regulatory objectives and economic conditions. The model entails entrepreneurial investment in an asset followed by private information...