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Comments on “Are the government-sponsored enterprises (GSEs) justified?”

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  • Ingrid Gould Ellen
  • Mark Willis

Abstract

In “Are the Government-Sponsored Enterprises (GSEs) Justified?” the authors conclude that the benefits delivered by the GSEs (as structured prior to conservatorship) are minimal and do not exceed their costs. While many of the arguments made in the article have merit and raise serious questions about the structure of the GSEs prior to 2008, the article overlooks several important benefits and costs. More significantly, no one is arguing for a return of the GSEs as they were structured prior to conservatorship. Rather than debate the merits of a model that has already been rejected by policymakers, we argue that the far more important question is what the housing finance market should look like in the future.

Suggested Citation

  • Ingrid Gould Ellen & Mark Willis, 2012. "Comments on “Are the government-sponsored enterprises (GSEs) justified?”," Housing Policy Debate, Taylor & Francis Journals, vol. 22(2), pages 149-152, March.
    • Handle: RePEc:taf:houspd:v:22:y:2012:i:2:p:149-152
    DOI: 10.1080/10511482.2012.656473
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    1. James Vickery & Joshua Wright, 2013. "TBA trading and liquidity in the agency MBS market," Economic Policy Review, Federal Reserve Bank of New York, vol. 19(May), pages 1-18.
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