HKS Affiliated Authors


The Political Risks of Fighting Market Failures: Subversion, Populism and the Government Sponsored Enterprises. Edward Glaeser, May 2012, Paper. "There are many possible ways of reforming the Government-Sponsored Enterprises that insure mortgages against default, including a purely public option, complete privatization or a hybrid model with private firms and public catastrophic insurance. If the government is sufficiently capable and benign, either public intervention can yield desirable outcomes; the key risks of any reform come from the political process. This paper examines the political risks, related to corruption and..." Link