Housing and the macroeconomy
Subtitle: the role of implicit  guarantees for government-sponsored enterprises
By: Karsten Jeske and Dirk Krueger.
Contributors: Krueger, Dirk.; Federal Reserve Bank of Atlanta.
Series: Working paper series / Federal Reserve Bank of Atlanta ;; 2005-15; Working paper series (Federal Reserve Bank of Atlanta : Online) ;; 2005-15.
Publisher: Federal Reserve Bank of Atlanta
Published: 2005
Place of publication: [Atlanta, Ga.]
Language: eng
Format: Electronic resource
Description: "This paper studies the macroeconomic effects of implicit government guarantees of the obligations of government-sponsored enterprises. We construct a model with competitive housing and mortgage markets in which the government provides banks with insurance against aggregate shocks to mortgage default risk. We use this model to evaluate aggregate and distributional impacts of this government subsidy of owner-occupied housing. Preliminary findings indicate that the subsidy leads to higher equilibrium housing investment, higher mortgage default rates, and lower welfare. The welfare effects of this policy vary substantially across members of the population with different economic characteristics."--Federal Reserve Bank of Atlanta web site.
Notes: Includes bibliographical references.
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