Accounting and Causal Effects

1. Front Matter

   Pages 1-23

   PDF

2. Introduction

   • Douglas A. Schroeder

   Pages 1-8

3. Accounting choice

   • Douglas A. Schroeder

   Pages 9-18

4. Linear models

   • Douglas A. Schroeder

   Pages 19-57

5. Loss functions and estimation

   • Douglas A. Schroeder

   Pages 59-76

6. Discrete choice models

   • Douglas A. Schroeder

   Pages 77-95

7. Nonparametric regression

   • Douglas A. Schroeder

   Pages 97-105

8. Repeated-sampling inference

   • Douglas A. Schroeder

   Pages 107-122

9. Overview of endogeneity

   • Douglas A. Schroeder

   Pages 123-156

10. Treatment effects: ignorability

    • Douglas A. Schroeder

    Pages 157-205

11. Treatment effects: IV

    • Douglas A. Schroeder

    Pages 207-273

12. Marginal treatment effects

    • Douglas A. Schroeder

    Pages 275-300

13. Bayesian treatment effects

    • Douglas A. Schroeder

    Pages 301-331

14. Informed priors

    • Douglas A. Schroeder

    Pages 333-412

15. Back Matter

    Pages 430-475

    PDF

In this book, we synthesize a rich and vast literature on econometric challenges associated with accounting choices and their causal effects. Identi?cation and es- mation of endogenous causal effects is particularly challenging as observable data are rarely directly linked to the causal effect of interest. A common strategy is to employ logically consistent probability assessment via Bayes’ theorem to connect observable data to the causal effect of interest. For example, the implications of earnings management as equilibrium reporting behavior is a centerpiece of our explorations. Rather than offering recipes or algorithms, the book surveys our - periences with accounting and econometrics. That is, we focus on why rather than how. The book can be utilized in a variety of venues. On the surface it is geared - ward graduate studies and surely this is where its roots lie. If we’re serious about our studies, that is, if we tackle interesting and challenging problems, then there is a natural progression. Our research addresses problems that are not well - derstood then incorporates them throughout our curricula as our understanding improves and to improve our understanding (in other words, learning and c- riculum development are endogenous). For accounting to be a vibrant academic discipline, we believe it is essential these issues be confronted in the undergr- uate classroom as well as graduate studies. We hope we’ve made some progress with examples which will encourage these developments.

• Accounting
• Bayesian analysis
• Endogeneity
• Nonparametric regression
• econometrics
• statistics

• The Ohio State University, Columbus, USA

  Douglas A. Schroeder

Douglas A. Schroeder has been at The Ohio State University since 1986; previously he was serving as a member of the Purdue University faculty. He has published papers in and served as a reviewer for numerous academic journals. His current scholarly interests involve analysis of accounting choice.

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