The Economic Analysis On Innovation Of The Low-Rent Housing Institution In China

The Low-Rent Housing Institution is a series of regulations and behaviors of a government aiming at offering low-rent housing to those poverty-stricken families as a part of housing-for-all program. In many countries, this is a field where national housing institution intersected with social security system. The effect of Low-Rent Housing Institution is of great significance for maintaining a country's political, economic and social stability and representing a country's social and living civilization. The Low-Rent Housing Institution in China is just under way. Consequently, there remains a lot of theoretical and practical issues need to be further studied. With a normative analysis approach, the author tries to lay a theoretical ground for advancing, understanding and solving problems. Besides, combining with positive analysis, through collecting relevant cases, data both at home and abroad, the author tries to design an institutional innovation model which is in accordance with China's current situation and put forward reasonable suggestions.This dissertation falls into nine chapters: Chapter one gives an introduction; In Chapters two, the current status of Low-Rent Housing Institution in China is analyzed and evaluated. A conceptual framework of institutional innovation is brought about in Chapter three. Chapter four to Chapter nine sees a series of special studies. The connotations of Low-Rent House and Low-Rent Housing Institution, especially the "Broad Low-Rent Housing" are redefined in Chapter four. From this start-point, some important implementation mechanisms relevant to the Low-Rent Housing Institution, such as goal setting, housing distribution, housing supply, financing and supervision, are discussed preliminarily in succedent chaptersStudy on current situation of the Low-Rent Housing Institution in China involves the background and the meanings of creation of the institution, the importantest policies of the institution, the process and evaluation of carryout of the institution. In a new era, government task has turned into targeting person's developments in everyside. Presently, China suffers from severe urban poverty. Official assistance is in urgent need for vulnerable group. Housing resources are allocated inappropriately after implementation of the Housing System Reform. There exists contradiction between optimized resource allocation and optimized social welfare in the process of urban reconstruction. Under such a historical background, the Low-Rent Housing Institution is coming into being in China. In 2003, Measures for the Administration of Urban Low-Rent Housing for Families with the Lowest Income, in substitute of the old Measures for the Administration of Urban Subsidized Housing in 1999, is put into effect. The new rule, keeping abreast with advancement of the Low-Rent Housing Institution in China, is distinctive in content with more detailed term; Moreover, it is an unambiguous guideline for all parties and is easy to be carried out.Currently, the Low-Rent Housing Institution is actually made up of a set of policies, laws and regulations. It is a closely operated system with two administrative levels, centrally and locally. A few regional patterns are formed in the practice, such as Shanghai Pattern, Beijing Pattern, Tianjin Pattern as well as Chengdu Pattern. From a nationwide perspective, the Low-Rent Housing Institution performs well now. However, the performance is far less satisfied in terms of policy goals. Some problems need to be solved without delay. They are the want of value by local governments, narrow coverage, and ambiguity on the applicability of distribution methods, difficulty of housing, insufficient sources of funds, backwardness of institutional construction of housing legal system, governments' inadequacy of utilizing market and social resources, and the like.Chapter two relates to the conceptual framework of innovation of Low-Rent Housing Institution in China. To begin with, Consumer Economics, Harmonious Social and Development View Theory, New Institutional Economics, and Justice and Efficiency Theory are studied to help to form theoretical base for this work. Then, public housing institution modes practiced in U. S., U. K., Singapore and Hong Kong is summed up to be used for reference. At last, the orientation of innovative study on the Low-Rent Housing Institution in China is made clear. That is, on the basis of redefinition of Low-Rent Housing and Low-Rent Housing Institution, by use of some economics research approaches, an originative study is conducted on following aspects: goal setting, distribution mechanism, supply mechanism, financing mechanism and supervision mechanism.This paper contains unique understanding about the terms Low-Rent Housing and Low-Rent Housing Institution. "Broad Low-Rent Housing" is set forth to extent the coverage of Low-Rent Housing to that of Economical Housing. This breakthrough firstly makes clear the concept of Low-Rent Housing, contributing much to housing supply mix at present.With regard to goal setting, the author refers to the foreign relevant theory to raise measures of improving goal setting approach for domestic Low-Rent Housing Institution. As mentioned in the dissertation, it is vital to establish and perfect Housing Credit System so as to secure to assist target group. Also, it is essential to eliminate Hukou System gradually, establish lowest housing area criteria for special difficult household and well-off household, and set income level in terms of house rent implication coefficient, and so on. Based on these work, a dynamic goal setting model of Broad Low-Rent Housing is set up.In this paper, it is proposed that innovation on distribution mechanism should be studied from three perspectives. Firstly, on the basis of Utility Theory and Supply and Demand Theory, two ways of housing supply, namely rent in kind and rent subsidy, are comprehensively compared in the matter of the effect of these tools on supply and demand of housing lease market, the utilization cost of governmental Low-Rent Funds and the distribution efficiency of governmental Low-Rent Funds. Then, the requirements for using these tools are concluded. Secondly, on the basis of Consumer Economics, vulnerable group dwelling in urban areas are divided into three types in the light of their dependence on Low-Rent Housing for security, totally dependent, temporary dependent and margin. To understand the demand differentiation may be useful for government to choose the most suitable way of housing supply. At last, determinants for the lowest housing area and rent are analyzed. A four-grade rent measure, including free-rent, rent-I, rent- II and rent-III, in terms of house rent implication coefficient of low-rent family is put forward.When it comes to the innovation of housing supply mechanism, strengths and weaknesses of the existing low-rent housing supply mechanism are evaluated. It is thought to be vital to integrate administrative force into market force according to the principle of optimization of housing supply efficiency. The house resource supplied as rent in kind by government should be moderately controlled. Generally speaking, unduly purchasing or building low-rent housing in a great number has many disadvantages. It would be better to adopt penetration approach to promote those low-rent families to dwell with other different income-level families together. After introducing foreign successful experiences, the author brings about some practical ways for Chinese Government to supply low-rent house units with a penetration mode in future. At the same time, the author points out that followings may helpful for the success of that strategy: to mainly activate the housing stock by way of rent subsidy; to adopt joint strategy to supply houses in all the first-level, second-level and third-level market by taking advantage of principle of housing filter.As for the financing mechanism, the sources of funds should be expanded from several ways, say, luxuries tax on top-grade house unit, urban land use earning, urban land requisition earning, urban housing provident funds, and REITs of Low-Rent Housing and so on. Moreover, Low-Rent Housing Funds should be set up for special use.To perfect supervision mechanism, it should be started from intensifying legislation, establishing entry and exit mechanism and strengthening performance appraisal against administrations simultaneously. In addition, indicator system used to measure performance of administrations is designed...