This article studies the extent to which governments produce goods for the market (that is, the extent of public enterprise production). It concludes that the current literature dramatically understates the role of public enterprises in many low-productivity countries. The current literature...

The federal government has an interest in the financial stability of Fannie Mae and Freddie Mac because of their importance to financial markets and the government's implicit guarantee of their liabilities. ; In October 2000 these two housing government-sponsored enterprises (GSEs) announced six...

Many of the benefits that the housing government-sponsored enterprises (GSEs) transmit to homebuyers stem from an implied federal guarantee arising from the GSEs’ charter benefits and past supervisory forbearance. But this implicit guarantee also represents a risk to taxpayers if one of these...

Three government-sponsored enterprises (GSEs)-Fannie Mae, Freddie Mac, and the Federal Home Loan Bank System-were created to improve the availability of home mortgage financing by supplementing local funding. But today's more evolved financial markets enable retail lenders to tap national...

2001 Annual Report essay

Fannie Mae and Freddie Mac are two large companies – ‘government-sponsored enterprises' (GSEs) – that are heavily involved in the secondary market for residential mortgages. The GSEs' expansion into lower quality mortgages, especially during the middleyears of the 2000s, was supported by...

What are the macroeconomic and distributional effects of government bailout guarantees for Government Sponsored Enterprises (e.g., Fannie Mae)? A model with heterogeneous, infinitely lived households and competitive housing and mortgage markets is constructed to evaluate this question....

Remarks at the Vanderbilt University Conference on Financial Markets and Financial Policy Honoring Dewey Daane, Nashville, Tennessee.