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 ()

No 11830, CEPR Discussion Papers from C.E.P.R. Discussion Papers

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; GSEs; monetary policy; mortgage credit; residential investment (search for similar items in EconPapers)
JEL-codes: E44 E52 G28 N22 R38 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-mac and nep-ure
Date: 2017-02
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.cepr.org/active/publications/discussion_papers/dp.php?dpno=11830 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

Related works:
Journal Article: The Macroeconomic Effects of Government Asset Purchases: Evidence from Postwar U.S. Housing Credit Policy (2018) 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
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:cpr:ceprdp:11830

Ordering information: This working paper can be ordered from
http://www.cepr.org/ ... rs/dp.php?dpno=11830

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().

 
Page updated 2019-07-09
Handle: RePEc:cpr:ceprdp:11830