Housing, mortgage bailout guarantees and the macro economy

• 成果类型: Article
• 署名作者: Jeske, Karsten; Krueger, Dirk; Mitman, Kurt
• 署名单位: University of Pennsylvania; National Bureau of Economic Research
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2013.09.001
• 发表日期: 2013
• 页码: 917-935
• 关键词: housing; Mortgage market; default risk; Government-sponsored enterprises

摘要

What are the macroeconomic and distributional effects of government bailout guarantees for Government Sponsored Enterprises (e.g., Fannie Mae)? A model with heterogeneous, infinitely lived households and competitive housing and mortgage markets is constructed to evaluate this question. Households can default on their mortgages via foreclosure. The bailout guarantee is a tax-financed mortgage interest rate subsidy. Eliminating this subsidy leads to a large decline in mortgage origination and increases aggregate welfare by 0.5% in consumption equivalent variation, but has little effect on foreclosure rates and housing investment. The interest rate subsidy is a regressive policy: it hurts low-income and low-asset households. (C) 2013 Elsevier B.V. All rights reserved.