Carlson, Mark; Hale, Galina - In: Topics in Macroeconomics 6 (2006) 2, pp. 1375-1375
In order to explore how credit ratings may affect financial markets, we analyze a global game model of debt roll-over in which heterogeneous investors act strategically. We find that the addition of the rating agency has a non-monotonic effect on the probability of default and the magnitude of...
