Jeske, Karsten; Krueger, Dirk; Jeske, Karsten; Krueger, Dirk - 2005
-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 … equilibrium housing investment, higher mortgage default rates, and lower welfare. The welfare effects of this policy vary …