Ratings Shopping and Asset Complexity: A Theory of Ratings Inflation
---- Acknowledgements ----
This paper was prepared for the Carnegie-Rochester conference series. Many thanks to David Backus, Ignacio Esponda, Valerie Bencivenga, Dimitri Vayanos and Lawrence White for useful discussions. We also thank participants in the Stern Micro Lunch for their helpful suggestions. The views expressed herein are those of the author(s) and do not necessarily reflect the views of the National Bureau of Economic Research.