Study On "Land Finance" Governance Path

Land finance is one of most things talked about by people in recent years.The vast majority of discussions is around a series of negative effects caused by Land finance, and the negative effects, which the people are closely linked with, are high prices and low level of compensation. High prices and low level of compensation seriously damaged the interests of the majority of the State-owned land owner, and is contrary to concept of State-owned land serving the public interests of the people that country should adhere to. At the same time, private ownership of land in many countries is moving towards social private ownership gradually, namely which is based on the public interest, according to the land public, the government restricts on the exercise of land private property right. The trend of development of the national system of land use Contrasts with land financial reality in China. These conditions led us to explore what wrong with land finance running mechanism. Is the land public goods? What are the connection and difference between it and the"common consumption" of public goods defined by the western mainstream economics? How we manage land and income come from public land is desirable?The paper consists of six chapters, which contains the introduction to the paper, specific arrangements are as follows:The Introduction chapter explains the background of the topic of this paper, reviews the related literatures, makes a brief comment, and introduces the research methods and the research ideas of this paper, and points out the possible contributions and deficiencies of the paper.Chapter I is on the theory of public goods nature of public land.The people can not clear up the public goods nature of public land, while land finance caused a lot of problem, these conditions had theirs origins in defective understanding of public goods theory. Therefore, a full recognition of the public goods theory is necessary. Firstly, this chapter makes a review on definition of public goods, characteristics of public goods and classification of public goods,then this chapter redefines the public goods, explains the classification of public goods, which can be divided into consuming public goods and investing public goods, explains the characteristics of public goods, which includes commonality of demand, commonality of benifit, explains the characteristics of consuming public goods, which includes direct way to meet, noncompetitive, nonexclusive, explains the characteristics of investing public goods, which includes indirect way to meet, performance of income, wide range of benefit, explains the relationship of consuming public goods and investing public goods, which mainly includes the link as well as the difference between them. Secondly, this chapter analyzes the public goods nature of public land and explains why public land is resource-based investing public goods.Chapter II introduces the principles that land finance should follow and the problems caused by land finance. First of all, this chapter set out the principles that land finance should follow, which includes principle of income, principle of equity, principles of efficiency, principle of democracy. Secondly, this chapter explains problems caused by land finance from four aspects.Chapter III analyzes the causes of land finance. Land finance is caused by public interest not placed in the first position, instead, self-interested motivation is placed in the first position, while, the related factors did not play a great role of Positive incentivesand constraint. First of all, this chapter analyses why related subjects do not place public interest in the first position from three major areas, which results in land finance. Secondly, this chapter analyses how the related negative incentives under the leading of self-interested motivation cause land finance from seven major areas.Chapter IV introduces the international experience and enlightenment. Private ownership of land in many countries is moving towards social private ownership gradually, which emphasizes the exercise of the land ownership should be to promote the public welfare. These ideas and practices are reflected in land-related systems. It is important to examine these systems. This chapter examines the foreign land-related systems and summarized some of the successful experience and practice, to which land finance governance should make reference.Chapter V explains the basic ideas of land finance governance. Based on causes of land finance and international experience and enlightenment, this chapter proposes the basic ideas of land finance governance, which includes public interest-oriented motivation placed in the first position, follow of the "different" requires contained by public land as public goods, financial and taxation system reform, appraisal system reform of political achievements, consummation of land financing, reform of land leasing fee collection mode, reform of land system, consummation of the budget management, transformation of economy growth way, reform of housing policy.The paper explores the public goods nature of land, causes of land finance and the path choice of land finance governance.The possible contributions are embodied in the followings:1. Extended studies on definition, characteristics and classification of public goodsBased on review of various related literature of definition of public goods,this paper raises and comments on the consumption theory, the supply theory, the property rights theory and common demand theory of definition of public goods, on the basis of the study, this paper redefines the public goods. Pursuant to diversification of meeting models, the public goods are the goods, which meet common demand.As tax revenue is a classic, basic income form of the revenue, as tax revenue and its characteristics are not equal to revenues and its characteristics, also as tax revenue and its characteristics do not take the place of State-owned assets gains, government fees, debt income and their characteristics, public goods of "common consumption "and features of "non-competitive" and "non-exclusive" are similar to tax revenue and its characteristics, therefore, the characteristics of public goods include commonality of demand and commonality of benefit, the diversification of meeting models not only include direct approach, but also cover the indirect approach. The public goods can be divided into consuming public goods and investing public goods. The consuming public goods are in the form of final products, the investing public goods in the form of public investment products. If we continue to classify the consuming public goods, the consuming public goods can be divided into technology consuming public goods, system consuming public goods and external consuming public goods. If we continue to classify the investing public goods, the investing public goods can be divided into resource-based investing public goods and non-resource-based investing public goods. The characteristics of consuming public goods includes direct way to meet, noncompetitive, nonexclusive, the characteristics of investing public goods includes indirect way to meet, performance of income, wide range of benefit.2. Recognition of the public goods nature of public landFor the purposes of State-owned land, some scholars have argued that the State-owned land is public goods, and some scholars think that the State-owned land is not public goods. If we continue to ask why or why not, we might find either the answer is vague or the question is leaved open. Therefore, it gives the resulting in a loss of status.Based on re-definition of public goods,this paper demonstrates public land is public goods from the aspect of public land use system, common needs of members of society meted by land and permanent value of land use. Further, this paper defines public land as resource-based investing public goods. These studies lay the foundation for the new study perspective of land.finance.3. Based on new study perspective, systematical exploration of causes of land finance and the basic ideas of land finance governanceFirstly, the human behavior is affected not only by the self-interested motives but also by other motives, such as public interest. Two motives are of coexistence.The existence of a motivation can not negate the existence of another motivation. The relationship between these two motivations reflects what kind of motivation is in a prime position, what kind of motivation is in a secondary position. The past research of land finance focuses on the primacy of self-interested motivation. Recognition of the public goods nature of public land reminds us that public land and its income bear the public interests of the general public. Compared to self-interested motivation, motivation of public interests first is in primary position. This is precisely the lack of reality of land finance Institute.This paper analyses why motivation of public interests first is not in primary position, how to make it in primary position.,it will make land finance to better serve the public interest and the "different" requires contained by public land as public goods, which should be followed by land finance.Secondly, this paper adds and improves the causes and the governance countermeasures of land finance. In terms of causes of land finance, the paper proposes fiscal decentralization reform-self-interested motivation of local government highlights, land system reform-take the initial conditions of the trade with land and inflation of house price owing to relevant factors. In terms of the governance countermeasures of land finance, this paper proposes the concept of primary residence and the concept of residency duty-free value per capita, reform of land leasing fee collection mode, consummation of the budget management, transform of economic growth mode and reform of housing policy.