Louis J. Billera, David C. Heath, Robert E. Verrecchia, A Unique Procedure for Allocating Common Costs from a Production Process, Journal of Accounting Research, Vol. 19, No. 1 (Spring, 1981), pp. 185-196

Journal Article An Empirical Method of Approximating the Separable Structure of Consumer Preferences Get access S. E. Pudney S. E. Pudney London School of Economics Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 48, Issue 4, October 1981, Pages 561–577, https://doi.org/10.2307/2297196 Published: 01 October 1981 Article history Received: 01 November 1980 Accepted: 01 July 1981 Published: 01 October 1981

Journal Article Instrumental Variable Estimation of a Characteristics Model of Demand Get access S. E. Pudney S. E. Pudney London School of Economics Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 48, Issue 3, July 1981, Pages 417–433, https://doi.org/10.2307/2297155 Published: 01 July 1981 Article history Received: 01 May 1980 Accepted: 01 February 1981 Published: 01 July 1981

Both the Roll and the Geske equations for the valuation of the American call option on a stock with known dividends are incorrectly specified. This note presents the corrected valuation formula, explains the misspecifications and provides a numerical example.

Although computers have been integrated into a number of accounting courses, there is a lack of empirical evidence supporting their effect on student achievement. This article describes the results of a study that compared the achievement of students in intermediate accounting when taught with/without the aid of computers. The computer was integrated into the intermediate accounting curriculum as a supplemental teaching tool. The students in the treatment group completed their homework assignments with the assistance of prewritten computer programs, while the control group completed assignments without the aid of computers. The present study found that the achievement of the students using the computer was significantly higher than the achievement of the students who did not utilize the computers.

Reviews the book "A Review of Innovative Approaches to College Teaching," by Beatrice Gross and Ronald Gross.

In this article the author remarks on the comments made by researcher Mary Bejan on his article on financial statements. He says that Bejan's comment on his article stems from two fundamental misinterpretations of it. First, she believes that the author limited his concern to the welfare of financial statement users, who she implies are a subset of the set of all individuals in society; in fact, the author's analysis considers all members of society to be users of financial statements. Second, she fails to understand the author's decomposition of the effect of a newly imposed accounting principle on the expected utility of an individual. He says that Bejan next proceeds to use a partial equilibrium analysis to explain what she calls the action and price effects of information. Public information disclosure will perturb an existing state of equilibrium and cause movement toward a new equilibrium. One way to analyze this movement is to assume that it proceeds in stages. Each stage is called a partial equilibrium because it represents an equilibrium only if certain assumptions are made about the absence of one or more effects.

An important purpose in pooling time-series and cross-section data is to control for individual-specific unobservable effects which may be correlated with other explanatory variables, e.g. latent ability in measuring returns to schooling in earnings equations or managerial ability in measuring returns to scale in firm cost functions. Using instrumental variables and the time-invariant characteristics of the latent variable, we derive: 1. (1) a test for the presence of this effect and for the over-identifying restriction we use; 2. (2) necessary and sufficient conditions for identification of all the parameters in the model; and 3. (3) the asymptotically efficient instrumental variables estimator and conditions under which it differs from the within-groups estimator. We calculate efficient estimates of a wage equation from the Michigan income dynamics data which indicate substantial differences from within-groups and Balestra-Nerlove estimates — particularly a significantly higher estimate of the returns to schooling.