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-income rental assistance and policies to promote homeownership through interventions in mortgage markets. We describe the rationales …
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partly because the Government Sponsored Enterprises (GSE), which operate in the secondary mortgage market, reduce the … are modeled as an interest rate subsidy applied directly to 30-year mortgages, in the context of a general equilibrium … model with two types of agents, housing and default. The cost of this policy is measured as the minimum subsidy that makes …
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