Income Smoothing as Rational Equilibrium Behavior? A Second Look: A Response COMMENT
成果类型：
Editorial Material
署名作者：
Lambert, Richard A.
署名单位：
University of Pennsylvania
刊物名称：
ACCOUNTING REVIEW
ISSN/ISSBN：
0001-4826
DOI：
10.2308/TAR-2019-0671
发表日期：
2020
页码：
265-278
关键词：
摘要：
This paper responds to Hemmer's (2020) critique of Lambert's (1984) paper on income smoothing. Lambert develops and analyzes a two-period agency model in which he shows income smoothing, defined as the second-period action being a decreasing function of the first-period outcome, is part of the equilibrium. Hemmer claims Lambert's analysis contains errors, and that income smoothing does not occur in the model for the reasons Lambert claims. Here, I confirm the Lambert results, show why Hemmer's results appear different than mine, and make clearer the economic forces behind why income smoothing occurs.