Abstract
Having reviewed the various forms of housing market failures and policy interventions, as well as major government failures, in this concluding chapter, we consider how the lessons learned can translate into smart practices for housing finance systems.1 Housing finance systems vary significantly across countries, and a policy that works well in a particular context may not have the same successful outcomes when transplanted to another setting. Thus, instead of the term “best practice”, with its connotation of specific techniques which apply in a blanket fashion across jurisdictions, I have chosen to use Eugene Bardach’s term, “smart practice” instead, as this draws attention to the importance of relevance of the environment and context in which housing policy operates. Looked at in this light, different housing policies will apply in different ways by themselves, as well as in conjunction with other policies, depending on the environment and context concerned. Specific housing outcomes in any given jurisdiction are therefore the result of the dynamic interplay between the general housing policy approach and the social, political, historical, institutional and regulatory contexts.
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Notes
See Eugene Bardach, “Presidential Address — the Extrapolation Problem: How Can We Learn from the Experience of Others”, Journal of Policy Analysis Research and Management, Vol. 23, No. 2, 2004, pp. 205–220.
See, for example, Viral Acharya, Matthew Richardson, Stijn Van Nieuwerburgh and Lawrence White, Guaranteed to Fail: Fannie Mae, Freddie Mac and the Debacle of Mortgage Finance (Princeton, NJ: Princeton University Press, 2011); Thomas M. Hoenig, “Reforming US Housing Finance” (speech at the National Association of Realtors Conference, New Orleans, 5 November 2010); Dwight Jaffee and John Quigley, “The Future of the Government Sponsored Enterprises: The Role of Government in the US Mortgage Market” (NBER working paper 17685, 2011); and US Department of the Treasury and Department of Housing and Urban Development, “Reforming America’s Housing Finance Market: A Report to Congress”, 2011.
Özgür Öner, “Social Housing in Germany” (paper presented at the International Symposium on China’s Social Housing Policy, Beijing, 7 August 2012).
See Vincent DiLorenzo, “Barriers to Market Discipline: A Comparative Study of Mortgage Market Reforms” (St. John’s University Working Paper, 2011).
Ron Harris, “Recourse and Non-recourse Mortgages: Foreclosure, Bankruptcy, Policy” (Tel Aviv University Law School Working Paper, 2010).
Andra C. Ghent and Marianna Kudlyak, “Recourse and Residential Mortgage Default: Evidence from U.S. States”, Review of Financial Studies, Vol. 24, 2011, pp. 3139–3186.
Including John Y. Campbell, “Mortgage Market Design” (NBER Working Paper 18339, 2012); and Richard J. Rosen, “What Are Covered Bonds?” (Chicago Fed Letter, Federal Reserve Bank of Chicago, December 2008, No. 257).
See Edward Glaeser, “The Political Risks of Fighting Market Failures: Subversion, Populism and the Government Sponsored Enterprises” (National Bureau of Economic Research Working Paper 18112, May 2012).
Sagers, for example, argues that the entire debate over privatization has been trapped in formalistic categories of market and government (p. 40). See Chris Sagers, “The Myth of ‘Privatization’”, Administrative Law Review, Vol. 59, No. 1, 2007, pp 37–78.
Lord Norton of Louth, “Who Regulates the Regulators?” (University of Bath School of Management, Occasional Lecture 12, 2004).
Paul Krugman, The Return of Depression Economics and the Crisis of 2008 (New York: Norton, 2009), p. 163.
Financial Stability Board, “Policy Measures to Address Systemically Important Financial Institutions”, 4 November 2011 (http://www.financialstabilityboard.org/publications/r_111104bb.pdf ).
See Michael S. Gibson, “Systemically Important Financial Institutions and the Dodd-Frank Act” (testimony before the Subcommittee on Financial Institutions and Consumer Credit, Committee on Financial Services, U.S. House of Representatives, Washington, DC, 16 May 2012; http://www.federalreserve.gov/newsevents/testimony/gibson20120516a. htm).
See Duncan Watts, “Too Big to fail? How About Too Big to Exist?”. Harvard Business Review, Vol. 16, 2009. See also Mervyn King’s speech to Scottish business organizations, Edinburgh, 20 October 2009 (http://www.bankofengland.co.uk/publications/Documents/speeches/2009 /speech406.pdf ).
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© 2013 Sock-Yong Phang
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Phang, SY. (2013). Smart Practices for Housing Finance Systems. In: Housing Finance Systems. Palgrave Macmillan, London. https://doi.org/10.1057/9781137014030_13
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DOI: https://doi.org/10.1057/9781137014030_13
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