The Social Costs of Credit Reporting Errors
Publisher
Journal of Law, Economics, & Policy
Date
2015
Part I of this essay provides an overview of credit reporting, its regulation, and the nature and frequency of credit report errors. Part II begins by demonstrating that the social costs of credit report errors are zero if strong assumptions are true. Part II then goes on to relax these simplifying assumptions and acknowledge that credit report errors can create significant social costs. Part III establishes the parallel between credit report errors and other risk-classification imperfections such as laws that limit the information that credit bureaus can report. Part IV concludes.
Citation
Rich Hynes, The Social Costs of Credit Reporting Errors, 11 Journal of Law, Economics, & Policy 329–347 (2015).