Municipal Bond Ratings and Citizens Rights

  title={Municipal Bond Ratings and Citizens Rights},
  author={John Yinger},
  journal={American Law and Economics Review},
  • J. Yinger
  • Published 2010
  • Economics
  • American Law and Economics Review
Municipal bond ratings give investors information about bonds' default probabilities. They also affect societal objectives by altering the cost of public infrastructure but are not regulated. This paper explores the possibility that these ratings involve behavior analogous to redlining, which is discrimination against people in places with a high minority composition. Drawing on our civil rights laws, the paper develops a regulatory framework to balance societal objectives with a rating agency… Expand

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