Encyclopedia of Law and Economics

2019 Edition
| Editors: Alain Marciano, Giovanni Battista Ramello

Credit: Rating Agencies

  • Alessandro RomanoEmail author
Reference work entry
DOI: https://doi.org/10.1007/978-1-4614-7753-2_667

Abstract

Credit rating agencies (CRAs) are pivotal players in financial markets, and in fact their conduct has attracted the attention of scholars, media, and policy analysts. A very common claim is that CRA behavior contributed to the explosion and the propagation of the recent financial crisis. This entry sketches the functioning of the market for ratings and explores the market failures by which it is characterized. Moreover, this entry briefly presents some of the proposals advanced by the law and economics literature to induce CRAs to issue accurate ratings.

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© Springer Science+Business Media, LLC, part of Springer Nature 2019

Authors and Affiliations

  1. 1.China-EU School of LawChina University of Political Science and LawBeijingChina