Date of Award
12-2022
Degree Type
Report
Degree Name
Master of Science (MS)
Department
Economics and Finance
Committee Chair(s)
Lucas Rentschler
Committee
Lucas Rentschler
Committee
T. Scott Findley
Committee
Lynn Rees
Abstract
With ongoing controversy concerning fair value and historical cost accounting, existing accounting theory is focused on intra-firm decision making and is thus deficient in addressing the issue of maximizing social welfare. I propose models of historical cost and fair value accounting regimes which are embedded in models of monopoly and oligopoly. This allows for social welfare implications. I find that historical cost results in greater expected profits for both monopolists and oligopolists. However, if the market is elastic enough, a fair value regimes is welfare enhancing. Whereas, if the market is inelastic enough, historical cost is welfare enhancing.
Recommended Citation
Edholm, Palmer, "A Welfare Comparison of Historical Cost and Fair Value Accounting Regimes" (2022). All Graduate Plan B and other Reports, Spring 1920 to Spring 2023. 1681.
https://digitalcommons.usu.edu/gradreports/1681
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