Income Smoothing as Rational Equilibrium Behavior? A Second Look: A Response
回应Hemmer对Lambert收入平滑论文的批评，确认Lambert的结论正确，并解释为何Hemmer的结果不同，阐明收入平滑发生的经济原因。
ABSTRACT 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.