Distributional Implications of Government Guarantees in Mortgage Markets

• 成果类型: Article
• 署名作者: Gete, Pedro; Zecchetto, Franco
• 署名单位: Georgetown University; IE University; Instituto Tecnologico Autonomo de Mexico
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhx083
• 发表日期: 2018
• 页码: 1064
• 关键词: life-cycle; credit

摘要

We analyze the removal of the credit-risk guarantees provided by the government-sponsored enterprises (GSEs) in a model with agents heterogeneous in income and house price risk. We find that wealth inequality increases, driven by higher mortgage spreads and housing rents. Housing holdings become more concentrated. Foreclosures fall. The removal benefits high-income households, while hurting low-and mid-income households (renters and highly leveraged mortgagors with conforming loans). GSE reform requires compensating transfers, sufficiently high elasticity of rental supply, or linking GSE reform with the elimination of the mortgage interest deduction.