Seminario: “Distributional Implications of Government Guarantees in Mortgage Markets”
We analyze the removal of the credit-risk guarantees provided by the Government Sponsored Enterprises (GSEs). We obtain .ve new results: 1) Low and mid-income households (renters and high-leveraged mortgagors with conforming loans) lose the most from the removal. High-income households are the main winners; 2) Most households oppose the removal; 3) Wealth inequality increases, driven by higher spreads and housing rents. Housing holdings become more concentrated. 4) Leverage decreases for low-income households but increases for high-income households. 5) GSE reform requires compensat- ing transfers, or to link GSE reform to eliminate the mortgage interest deduction.
Datos del Evento
11 de Enero, 2017 | 13:00 hrs.
Fecha de término
11 de Enero, 2017 | 14:00 hrs.