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Uday Rajan

Institution

University of Michigan

PhD Year

1995

Phone

734-764-2310

urajan@umich.edu

FTG Membership

Member

Website

http://webuser.bus.umich.edu/urajan/

Featured Work

Jan 26, 2025

Uday Rajan | Working Paper No. 00148-00

Data Regulation in Credit Markets

We study a credit market in which lending decisions depend on a borrower's digital profile, and the borrower can manipulate their digital profile. When the borrower observes the amount of data collected by the lender, manipulation increases as the lender acquires more data. Such manipulation worsens both the quality of the lender's data and its lending decisions. As a result, the lender endogenously limits its...

Dec 28, 2016

Uday Rajan | Working Paper No. 00012-00

Contracting on Credit Ratings: Adding Value to Public Information

We provide a novel interpretation of the role of credit ratings when contracts between investors and portfolio managers are incomplete. In our model, a credit rating on a bond provides a verifiable signal about an unverifiable state. We show that the rating will be contracted on only if it is sufficiently precise. Moderately precise ratings lead to wage contracts, and highly precise ones to contracts...

Dec 28, 2016

Uday Rajan | Working Paper No. 00003-00

Credit Ratings: Strategic Issuer Disclosure and Optimal Screening

We study a model in which an issuer can manipulate information obtained by a credit rating agency (CRA) seeking to screen and rate its financial claim. Better CRA screening leads to a lower probability of obtaining a high rating but makes a high rating more valuable. Over an intermediate range of manipulation cost, improving screening quality can lead to more manipulation, dampening the CRA's incentive...