Rexer, Jonah; Kapstein, Ethan B.; Tantravahi, Adityamohan; … - 2023
credit ratings across a wide array of borrower-country characteristics, training machine learning models to estimate ratings …Credit rating agencies collapse high-dimensional borrower characteristics into summaries of creditworthiness …, facilitating capital flows. But biases embedded in rating algorithms may lead to misallocation. We test for bias in sovereign …