Discussion of Analysis of the Usefulness of Accounting Data for the Portfolio Decision: A Decision-Theory Approach.

The article analyzes economist James Ohlson's paper "Analysis of the Usefulness of Accounting Data for the Portfolio Decision: A Decision-Theory Approach," in order to determine if he's making a model comparison or a model choice. Ohlson's thesis is that he used methods of comparing models, but the author demonstrates the inaccuracies in that thesis. The author tests Ohlson's findings and also considers the portfolio-choice problem and whether the findings are conditional upon the comparison of the forecasting models used.