All Rights Reserved
AccessEcon LLC 2006, 2008.
Powered by MinhViet JSC
ralph lauren polo

SingRu Hoe, Srinivas Nippani and John David Diltz
''Should CAMELS ratings be publicly disclosed?''
( 2017, Vol. 37 No.3 )
We explore the optimal disclosure of CAMELS ratings. We employ a Stackelberg leader-follower model to obtain net social welfare from disclosure. We extend the model by incorporating dynamic stochastic optimization, resulting in an optimal stopping problem that we solve using variational inequalities. Optimal disclosure is characterized by an explicit ratio of social benefit to social cost.
Keywords: CAMELS Ratings, Stackelberg Leader-Follower Game, Optimal Stopping, Variational Inequality
JEL: Z0 - Other Special Topics: General
Manuscript Received : Jun 15 2017 Manuscript Accepted : Jul 16 2017

  This abstract has been downloaded 1005 times                The Full PDF of this paper has been downloaded 149689 times