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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