-sponsored enterprises. We construct a model with competitive housing and mortgage markets in which the government provides banks with … 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 …

heterogeneous, infinitely lived households and competitive housing and mortgage markets. Households have the option to default on … equilibrium mortgage origination and increases aggregate welfare, but has little effect on foreclosure rates and housing …

-Sponsored Enterprises. We set up an economy with a housing and mortgage market where the government provides banks with insurance against …

heterogeneous, infinitely lived households and competitive housing and mortgage markets. Households have the option to default on … equilibrium mortgage origination and increases aggregate welfare, but has little effect on foreclosure rates and housing …

heterogeneous, infinitely lived households and competitive housing and mortgage markets. Households have the option to default on … equilibrium mortgage origination and increases aggregate welfare, but has little effect on foreclosure rates and housing …

This paper analyses the default option typical to American mortgages. Households borrow to buy durable housing, but … housing; that is, the demand for housing falls upon default. Consequently, when some households default, aggregate demand for … housing is reduced, hence house prices fall more, possibly inciting other households to default. This complementarity is a …

This paper analyses the default option typical to American mortgages. House-holds borrow to buy durable housing, but … housing; that is, the demand for housing falls upon default. Consequently, when some households default, aggregate demand for … housing is reduced, hence house prices fall more, possibly inciting other households to default. This complementarity is a …

looking at the effect of a reduction in the maximum loan-to-value (LTV) ratio on homeownership rates, house prices and housing … is initially loose, allowing households to lever up against the collateral value of their housing. A reduction in the LTV … is the fall in house prices and the greater is the rise in the share of constrained homeowners and housing wealth …