In this book, we synthesize a rich and vast literature on econometric challengesassociated with accounting choices and their causal effects. Identification and estimationof endogenous causal effects is particularly challenging as observable dataare rarely directly linked to the causal effect of interest. A common strategy is toemploy logically consistent probability assessment via Bayes’ theorem to connectobservable data to the causal effect of interest. For example, the implications ofearnings management as equilibrium reporting behavior is a centerpiece of ourexplorations. Rather than offering recipes or algorithms, the book surveys our experienceswith accounting and econometrics. That is, we focus on why rather thanhow.