Mortgage Insurance Deductibles: An Idea Whose Time Hasn't Come

Abstract

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Productivity and the Financial Services Sector – How to Achieve New Heights

“…In our annual ranking of Canada relative to its peers on several productivity criteria, we are happy to report an improvement in the financial sector's contribution to overall productivity, yet Canada still lags behind. Policy and regulatory challenges remain that hamper competition, Canada's ability to attract foreign investment and achieve an efficient, optimal 20 See Koeppl and MacGee (2017) for more detail on this solution, which for the purposes of their paper, was built around the problem of moral hazard.…”

“…Given that mortgage insurance is an effective tool to insulate the system from a housing crash (see Koeppl and MacGee 2017), how can the incentive structure be changed at the margins?…”