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Social and Behavioral Sciences Commons™
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Full-Text Articles in Social and Behavioral Sciences
The Impact Of Wealth And Sentiment On Consumption: Before And After The Great Recession, Joshua Schwartz
The Impact Of Wealth And Sentiment On Consumption: Before And After The Great Recession, Joshua Schwartz
Honors Theses
I study the impact of consumer sentiment and the wealth effect on aggregate U.S. consumption before and after the Great Recession. First I will introduce a background of the 2008 financial crisis and some major factors leading up to it. I will discuss both the Michigan Consumer Sentiment index as well as the Conference Board's Consumer Confidence index. I will also discuss several measures of net worth relevant for my study. Second I will discuss the relevant literature and the main findings that correspond to my thesis. Third I will present the methodology used for my thesis and the several …
Reform In The Credit Rating Industry, Ronald D. Knox
Reform In The Credit Rating Industry, Ronald D. Knox
Honors Theses
Ninety three percent of all AAA-rated subprime mortgage backed securities issued in 2006 were downgraded to junk bond status subsequent to the financial crisis. The credit rating agencies clearly failed to give the early warning signs on these and numerous financial products that went bust. This thesis investigates the role of credit rating agencies in the functioning of financial markets and proposes policy changes to reform this industry. The sources of market failures in this industry can be traced to conflicts of interest, barriers to entry, lack of accountability, and asymmetric information. I propose three possible reforms to improve the …