A Study On Commercial Residential Building Supply And Demand Control Through Macro Economic Policy Adjustment During Price Increase

Along with our national economy fast development, real estate industry has played an important role and become the foundation, driver and pillar of national economy. In the past few years, commercial housing price keeps increasing which has a major impact on construction, material and labor industries, as well as the daily life of people. Real estate has changed the behavior of individual and institutional investment, speculation and hedging are popular from both domestic and internal investors. To certain extent, it has influenced national economy stability and harmonious development.The root cause for these is the unbalanced supply and demand driving commercial housing price deviated from its value. Macro economic control has non-replaceable value for supply and demand, plays complementary role besides market adjustment. However, the effect on housing price is not obvious from various macro economic control policies in past few years. The reasons are to be further studied. This thesis is focusing on macro economic policy control during housing price increase.Based on comparative analysis and statistics sampling method, through analysis of domestic and foreign housing price macro control experience, this thesis studied the macro economic policy control. Various theories were adopted including Game Theory, system dynamics, econometrics, value chain and EViews tool etc.This study conducted analysis on theories involved in macro economic policy control, including primarily the economy growth, balanced and unbalanced supply and demand industry development, increase pole theories, etc. The study also covered basic concepts, subjective and objective relationship, economic principal of housing price increase, price increase process and social protection, etc.The thesis adopted Game Theory to analyze the function and position of respective parties involved in economical control, including their structural relationship. It set up models of Game Theory for controlling body central government and regional government, for government and developers and hedging investors, and further analyzed the policies adopted within each model by various parties involved. The study began with supply variation impact to pricing, analyzed reasons and impact of relatively reduced supply and increased cost of supply. It further analyzed the macro policy influence to relatively reduced supply amount and increased supply cost. It built econometrics model through relative important policies. It also built up the functional relationship equation matrix via research of production and labor and investment relationship, labor and land relationship, investment and interest and money supply relationship.Leveraging systematic dynamics, the study came up the structure of demand and supply and analyzed major factors of each component. Leveraging value chain analysis, the study covered entire process of demand, purchase and transfer, it showed the most effetive macro economic policy. On top of above, through the work on demand function and investment supply as well as econometrics, it built functional relation equation of demand and price, interest, expandable income, savings and exchange rate.From supply/demand balance perspective, it studied the influence of macro economic control and combined supply/demand equation matrix. Comparing pros and cons of various policy combination, the thesis further analyzed quantative relationship between macro economic control and supply/demand during specific period to verify equation matrix. The thesis proposed several methods to adjust the balance of commercial housing supply/demand, including setting up of improved supply/demand architecture, focused control and specifics, control supply and suppress demand combination policy.The thesis built Game Theory model, focused on the relationship between subjective and objective parties as well as internal parties of controlling body. It analyzed and set up quantative modle of macro economic policy and supply, set up supply/demand equation matrix during commercial housing price increase phase. It compared pros and cons of various policy combination and proposed solutions to improve supply/demand system architecture.