| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 967410 | Journal of Monetary Economics | 2016 | 6 Pages |
Abstract
- Government Sponsored Enterprises sell underpriced mortgage guarantees.
- Guarantees were meant to stabilize lending, but a model suggests that they hurt welfare.
- Banks take on more risk due to the moral hazard from the underpriced guarantees.
- Probability of mortgage crises rises.
- Bailout obligations lead to more volatile fiscal policy and consumption.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Jack Favilukis,