Various tax policies provide consumers with forms of insurance. Social security has the payoff characteristics of an annuity. Income tax provides consumers with a degree of income insurance because the government shares part of the individual’s income risk. Redistributive taxes can be used to...

In recent years there has been a resurgence of interest in the empirical behavior of inventories. A great deal of this research examines some variant of the production smoothing model of finished goods inventories. The overall assessment of this model that exists in the literature is quite...

The effect of firms’ accounting techniques on firms’ equilibrium values is the general topic considered here. The specific technique examined is the inventory-costing method -- e.g., LIFO or FIFO -- adopted for tax reporting. The connection between firms’ selections of accounting...