Government Policies, Residential Mortgage Defaults and the Boom and Bust Cycle of Housing Prices
构建了一个微观基础的宏观模型，研究次贷违约对优质借款人的传染效应，并比较了货币政策和财政政策在减少抵押贷款违约和提升房价方面的效果。
We develop a micro‐based macromodel for residential home prices in an economy where defaults on residential mortgages negatively affect housing prices. Our model enables us to study the impact of subprime defaults on prime borrowers and the impact of various government policies on the housing market boom and bust cycle. In this regard, our key conclusions are that (i) there is a contagion effect from subprime defaults to prime defaults due to the negative impact of subprime defaults and (ii) monetary policy is the most effective tool for decreasing mortgage defaults and increasing aggregate home prices in contrast to alternative government fiscal policies designed to loosen mortgage credit.