The Contest for a National System of Home-Mortgage Finance

1941 ◽  
Vol 35 (1) ◽  
pp. 53-69 ◽  
Author(s):  
David M. French
Keyword(s):  
Home Ownership ◽  
Public Investment ◽  
Critical Time ◽  
Private Investment ◽  
Mortgage Debt ◽  
Mortgage Finance ◽  
The Masses ◽  
Home Mortgage ◽  
Administrative Structures ◽  
Public Effort

The Contest for a National Syatem of Home-Mortgage Finance. Since 1932, the federal government has undertaken new responsibilities in regard to housing and home finance which involve a public investment of more than four billion dollars, contingent liabilities for the security of a private investment of three billion dollars, and the creation of a set of administrative structures that cover the entire nation. Yet, despite the magnitude of this public effort, no new “system” of housing has resulted. It is precisely the striking lack of coherence in the government's program that gives a hint of the variety of forces now competing for control and for advantage in this field.Not until 1937, after a stormy period of improvisation, was the first workable formula of public housing agreed upon. Surely it is clear that the nation was not preoccupied throughout the depression years with the cause of those most in need of proper dwellings. By 1937 there had already been enacted the Federal Home Loan Bank Act, the Home Owner's Loan Act, and the National Housing Act, all of which dealt with some aspect of housing and none of which made any serious approach to slum of clearance or housing for the masses.Whereas the depression brought no essentially new crisis for the ill-housed, it did represent a critical time for home tenure. Home ownership in this country has always been extensive, and ownership is usually not achieved without contracting some amount of mortgage debt.

Natural experiments and debt-driven financial crises: mortgage finance booms in the 1920s and 2000s

2015 ◽  
Vol 42 (4) ◽  
pp. 340-355 ◽  
Author(s):  
Charles G. Leathers ◽  
J. Patrick Raines ◽  
Heather R. Richardson-Bono
Keyword(s):  
Financial Crises ◽  
Financial Stability ◽  
Global Economy ◽  
Home Ownership ◽  
Natural Experiments ◽  
Social Goal ◽  
Mortgage Debt ◽  
Content Type ◽  
Mortgage Finance ◽  
Lending Standards

Purpose – The role of debt in episodes of financial stability is a topic of increasing important as the global economy struggles to recover from the worst crisis since the Great Depression of the 1930s. The purpose of this paper is to examine the mortgage finance booms of the 1920s and 2000s as natural experiments, new insights into debt-driven financial crises are gained. Design/methodology/approach – The general methodology is interpreting anomalous historical events as natural experiments. The specific methodology is the approach to natural experiments provided by Joseph A. Schumpeter and Milton Friedman. The hypothesis tested is that laxity in lending standards was the prime contributor to the mortgage debt booms. In each case, we explain why factors other than laxity in lending standards would be secondary factors, with the pre-boom and post-boom lending standards providing the control groups of natural experiments. The two episodes of mortgage debt booms occurring under very different general economic and financial conditions provide an especially strong test of the hypothesized functional relationship. Findings – The results of the two natural experiments support the hypothesis that lax lending standards were the prime contributors to the two episodes of debt-driven financial crisis. Originality/value – From a social economics perspective, the insights gained are important because a major social goal has been to encourage greater opportunities for home ownership. The results of these natural experiments provide guidance for policymakers in the search for a viable balance between achieving that social goal and maintaining financial stability.

scholarly journals Do FDI and Public Investment Crowd in/out Domestic Private Investment in the SADC Region

2021 ◽  
Vol 19 (1) ◽  
pp. 3-25
Author(s):  
Eslon Ngeendepi ◽  
Andrew Phiri
Keyword(s):  
Capital Expenditure ◽  
Public Investment ◽  
Trade Openness ◽  
Government Expenditure ◽  
Private Investment ◽  
Policy Implications ◽  
Domestic Investment ◽  
Government Investment ◽  
Long Run ◽  
Short Run

Our study examines the crowding-in/out effect of foreign direct investment and government expenditure on private domestic investment for 15 members of the Southern African Development Community (SADC) for the period 1991–2019. The study employed the panel Pool Mean Group (PMG)/ARDL technique in estimating the short-run and long-run cointegration relationships between FDI, government capital expenditure and domestic private investment and adds three more variables for control purposes (interest rate, GDP growth rate and trade openness). For the full sample, FDI crowds-in domestic investment whilst government crowds-out domestic investment. However, in performing a sensitivity analysis, in which the sample was segregated into low and high income economies, both FDI and government investment crowd-in domestic investment whilst government expenditure crowds-out domestic investment in lower income SADC countries with no effect of FDI on domestic investment. Policy implications are discussed.

scholarly journals Inversión Pública y sus implicancias en el desarrollo socioeconómico en el Departamento de Puno Perú.

2016 ◽  
Vol 18 (3) ◽  
Author(s):  
Alcides Huamaní Peralta
Keyword(s):  
Economic Development ◽  
Local Governments ◽  
Public Management ◽  
Econometric Model ◽  
Public Investment ◽  
Private Investment ◽  
Regional Government ◽  
The Public ◽  
Socio Economic Development ◽  
National Governments

<p>Se pretende explicar y analizar las implicancias que ha tenido la inversión pública de los gobiernos locales y el gobierno regional en el Departamento de Puno sobre el desarrollo socioeconómico; en los últimos años<a href="file:///C:/Users/FORTUNATO/Desktop/aptos%20ria%2018n3/8-%20INVERSI%C3%92N%20P%C3%99BLICA%20alcides%20huamani%20peralta.doc#_msocom_1">]</a> , la gestión pública es cuestionado principalmente porque éstas no han mostrado mejoras significativas en el desarrollo socioeconómico a pesar del incremento de recursos. Se ha considerado información anual del 2007 al 2014, referida a gobiernos subnacionales; para el primer objetivo se ha realizado la caracterización de gobiernos locales y gobierno regional; para el segundo objetivo, se analiza las implicancias que tiene la inversión pública sobre el desarrollo socioeconómico, mediante un modelo econométrico. Se ha caracterizado a la gestión de los gobiernos locales y el gobierno regional, encontrando problemas en la ejecución de inversiones, como la falta de calidad en proyectos de inversión, hechos de corrupción, limitadas capacidades de autoridades y funcionarios, y problemas de transparencia y procesos participativos; se ha evidenciado que las inversiones públicas tienen efectos muy limitados o marginales sobre el desarrollo socioeconómico en nuestro departamento, esto se infiere de los resultados del modelo econométrico aplicado. Conforme a la evidencia empírica, los gobiernos subnacionales no han generado mejoras significativas en las condiciones de vida de la población y condiciones favorables para el sector privado.</p><p> </p><p> </p><p> </p><p><strong> </strong></p><p align="center"><strong>ABSTRACT.</strong></p><p><strong> </strong></p><p>We  try to explain and analyze the implications that had the public investment of local governments and the regional government in the Department of Puno about the socio-economic development; in recent years, was questioned mainly because they have not shown significant improvements in the socio-economic development despite the increase of resources. It has been considered annual information from 2007 to 2014, referring about sub-national governments; for the first objective it has been taken characterization of local government and regional government; for the second objective, it has been analized the implications that has the public investment on the socio-economic development, using an econometric model. It has been characterized the management local governments and regional government, finding problems in the execution of investments, such as the lack of quality in investment projects, acts of corruption, limited capacities of authorities and civil servants, and problems of transparency and participatory processes;  this shows that public investments have very limited or marginal effects on the socio-economic development in our department, this is the conclussion  from the results of the applied econometric model. According to the empiric evidence, sub-national governments have not generated significant improvements in population’s  living conditions and favourable conditions for the private sector.</p><p> </p><p> </p><p>Key words: public management, private investment, standard of living.<strong></strong></p><p> </p><p> </p><p> </p><p> </p>

scholarly journals Impact of Public Debt, Deficit and Debt Financing on Private Investment in a Large Country: Evidence from the United States

2020 ◽  
Vol 6 (2) ◽  
pp. 139-161
Author(s):  
Amir Kia
Keyword(s):  
Public Debt ◽  
Public Investment ◽  
Government Expenditure ◽  
Private Investment ◽  
Adjustment Costs ◽  
The United States ◽  
Direct Impact ◽  
Large Country ◽  
Long Run ◽  
Short Run

This paper analyses the direct impact of fiscal variables on private investment. The current literature ignores one or more fiscal variables and, in many cases, the foreign financing of debt. In this paper, an aggregate investment function for an economy in which firms incur adjustment costs in their investment process is developed. The developed model incorporates the direct impact of government expenditure, public debt and investment, deficits and foreign-financed debt on private investment. The model is tested on US data. It is found that public investment does not have any impact on private investment, but government expenditure, deficit, debt and foreign-financed debt crowd out private investment over the long run. However, deficit crowds in the private investment over the short run.

Public and Private Investment and Economic Growth: An Empirical Investigation

2018 ◽  
Vol 63 (2) ◽  
pp. 87-106 ◽  
Author(s):  
Garikai Makuyana ◽  
Nicholas M. Odhiambo
Keyword(s):  
Economic Growth ◽  
Positive Impact ◽  
Public Investment ◽  
Private Investment ◽  
Current Debate ◽  
Annual Data ◽  
Public And Private ◽  
Long Run ◽  
Short Run ◽  
Crowd Out

Abstract This paper provides new evidence to contribute to the current debate on the relative impact of public and private investment on economic growth and the crowding effect between the two components of investment in South Africa. Using annual data from 1970 to 2017, the study applies the recently developed Autoregressive Distributed Lag (ARDL)-bounds testing approach to cointegration. The study finds that private investment has a positive impact on economic growth both in the long run and short run, while public investment has a negative effect on economic growth in the long run. Further, in the long run, gross public investment is found to crowd out private investment, while its infrastructural component is found to crowd in private investment. The results of the study also reveal that both gross public investment and non-infrastructural public investment crowd out private investment in the short run. Overall, the study finds private investment to be more important than public investment in the South African economic growth process and that the importance of infrastructural public investment in stimulating private investment in the long run cannot be over-emphasized.

5 The Regulatory Duties Arising from the Provision of Investment Advisory and Management Services

2018 ◽  
Author(s):  
Spangler Timothy
Keyword(s):  
Financial Services ◽  
Public Investment ◽  
Private Investment ◽  
The United States ◽  
Fiduciary Duty ◽  
Regulatory Regime ◽  
Investment Funds ◽  
Investment Advisers ◽  
The Uk ◽  
Management Services

This chapter examines the regulatory duties of investment managers arising from the provision of investment advisory and management services. Managers of private investment funds that are authorised or regulated as investment advisers or managers can owe regulatory duties arising under the Financial Services and Markets Act 2000 (FSMA) in the UK and the Investment Advisers Act of 1940 in the United States. The chapter begins with a discussion of the UK Financial Conduct Authority’s (FCA) regulation of the conduct of firms authorised under the FSMA, including collective investment schemes, public investment funds, and fiduciary duty in the financial services regulatory regime. It then considers the FCA’s regulatory response to private investment funds as well as the U.S. Securities and Exchange Commission’s compliance programme for investment advisers and managers primarily under the Advisers Act. It concludes with an analysis of financial services regulation of fiduciary duties.

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