Housing and Mortgage Market Policies. (RE-ANNOUNCEMENT of PB85-126746-see notes field for explanation)

摘要

This paper develops a theoretical framework that can handle (at least qualitatively) the effects of institutional changes in analyzing the role of financial policy in the housing markets and uses the framework to analyze interactions of the different types of policy. The basic theoretical framework is taken from a paper by Penner and Silber (1973), which argues that mortgage market policies interact, some reinforcing each other and some cancelling out each other. This underscores the importance of coordinating policy; the use of two policies, which taken individually might improve the mortgage market, could, if pursued simultaneously, be much less effective. The next section of the paper develops these interactions in detail. The effect of different mortgage-market policies on the cost availability of mortgage funds is developed under varying supply-and-demand conditions in the mortgage market. A third section discusses specific programs and how these programs fit into the theoretical framework. The Federal programs discussed are classified into each of the three types of policies previously considered: (1) wedge policies, which involve explicit or implicit subsidies to borrowers and shift the demand curve for mortgage funds; (2) portfolio policies, which involve restrictions either on lending or directly supplying mortgage funds; and (3) secondary market policies, which change the nature of the security that the ultimate lenders hold. The final section of the paper interprets empirical evidence relating to the impact of these policies. Nine footnotes and 23 references are provided.