EconPapers    
Economics at your fingertips  
 

The Macroeconomic Effects of Government Asset Purchases: Evidence from Postwar US Housing Credit Policy

Andrew Fieldhouse, Karel Mertens () and Morten Ravn ()
Additional contact information
Andrew Fieldhouse: Cornell University

No 1707, Discussion Papers from Centre for Macroeconomics (CFM)

Abstract: We document the portfolio activity of federal housing agencies and provide evidence on its impact on mortgage markets and the economy. Through a narrative analysis, we identify historical policy changes leading to expansions or contractions in agency mortgage holdings. Based on those regulatory events that we classify as unrelated to short-run cyclical or credit market shocks, we find that an increase in mortgage purchases by the agencies boosts mortgage lending and lowers mortgage rates. Agency purchases influence prices in other asset markets and stimulate residential investment. Using information in GSE stock prices to construct an alternative instrument for agency purchasing activity yields very similar results as our benchmark narrative identification approach.

Keywords: Credit Policy; Monetary Policy; Mortgage Credit; Residential Investment; Government Sponsored Enterprises (search for similar items in EconPapers)
JEL-codes: E44 E52 N22 R38 G28 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ban and nep-mac
Date: 2017-01
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (4) Track citations by RSS feed

Downloads: (external link)
http://www.centreformacroeconomics.ac.uk/Discussio ... MDP2017-07-Paper.pdf (application/pdf)

Related works:
Working Paper: The Macroeconomic Effects of Government Asset Purchases: Evidence from Postwar US Housing Credit Policy (2017) Downloads
Working Paper: The macroeconomic effects of Government asset purchases: evidence from postwar US housing credit policy (2017) Downloads
Working Paper: The Macroeconomic Effects of Government Asset Purchases: Evidence from Postwar US Housing Credit Policy (2017) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cfm:wpaper:1707

Access Statistics for this paper

More papers in Discussion Papers from Centre for Macroeconomics (CFM) Contact information at EDIRC.
Bibliographic data for series maintained by Martin Hannon ().

 
Page updated 2018-09-23
Handle: RePEc:cfm:wpaper:1707