Housing Finance System

This dissertation lays its foundation on practical needs and theoretical lack of housing finance. This study abides by institutional approach, which mainly concerns as following:(1) Theoretical clue and study approach. This dissertation tries to constitute a systematic institutional approach for housing finance. Institutional economics is its basic theoretical clue. The institutional approach includes: transaction cost is a basic view for housing finance institutions and a certain institution follows the principle of minimum transaction cost; financial deepenness and financial function theories are important ways to understand housing finance institution; a systematic institutional structure of housing finance comes from the interaction of social economy, culture and politics, and institutional bundling and embeddedness are common forms; financial structure theory is a forceful quantitative way to analyses housing finance institutions; minimization of transaction cost is the basic motivation for institutional transformation, and the basic ways are forced transformation and induced transformation; equity and efficiency are basic criteria for evaluating housing finance institutions, which may implement through certain institutions while government acts as leverage between equity and efficiency.(2) Multiformality and transformation of housing finance. This study analyses housing finance institutions with two aspects by institutional approach. One is the institutional arrangement, which focuses on a certain arrangement's reason, advantage and relevant agent and tool; the other is institutional structure, which focuses its reason, development, advantage and possible weakness of a country's systematic institutional arrangements. The two aspects both embody its multiformality and transformation principle of housing finance.(3) Government with housing finance institutions. The government's function and role has been specially discussed as a common topic for housing finance institutions. As for the beneficiary characteristics of housing, governments usually participate in housing finance through direct and indirect ways such as taxation, subsidiary, guarantee and loan, but the tendency is market-orientation and indirect ways.(4) Housing finance institutions of LDCs and transformation economy. Special analysis has been given to housing finance institutions of LDCs and transformation economy. The analysis focuses on transaction cost restraints for housing finance in LDCs. Through institutional transformation, LDCs may improve saving's rate and resource allocation. Transformation economy faces lag-off of housing finance institutions, which causes housing difficulty for residents.(5) Institutional analysis of China's housing finance and its institutional construction. Based on institutional analysis of housing finance from commonly to specially, an analysis on China's housing finance transformation is made, which also points out several issues of its institutional structure and environment. Then an institutional framework is made under constraints, which is market-oriented, commerce-lead, policy-support, multi-formed and vary-institutioned. Also a deep discussion is made on secondary housing finance market as market infrastructure with its essentiality, reality and strategy.