An Economic Study On The Indemnificatory Housing System In China

The construction and supply of indemnificatory housing system is a traditional field of economic and law research.It is also a living condition issue of great concerns by the government and the people.In 1998,China terminated the traditional physical distribution system of housing.In urban areas,the physical distribution of housing stopped while the monetization reform of housing distribution was implemented.A supply system based on affordable housing was established and then perfected over time.However,in the implementation process,the construction of indemnificatory housing has not kept up with the demand for housing.Rising housing prices can not satisfy the housing demand of the vast population of low-and middle-income groups.The reason for this is that the research works are not in-depth and effective academic studies on the characteristics of indemnificatory housing and its system,which have led to superficial research and resulted in ineffective supply of the indemnificatory housing system.At the operational level,many problems exist in the construction and distribution of indemnificatory housing.The essence of such problems is that the dialectical unity between equity and efficiency can not be effectively solved.The relationship between equity and efficiency is the core issue of developing and improving the system of indemnificatory housing.The 17 th CPC National Congress proposed that "residents' access to housing" should be the overall objective of housing reforms.The report of the 18 th CPC National Congress has stated clearly that it is necessary to establish a housing system that combines market allocation with government protection,which will enhance the construction and management of indemnificatory housing and meet the basic needs of the disadvanged families.XiJinping proposed the "Chinese Dream" and the five concepts of development,namely,"innovation,coordination,greenness,openness,and sharing." The essence of "sharing" is common prosperity.The report of the 19 th CPC National Congress states clearly that houses are used for living,not for speculation.All hese concepts highlight the status and role of the people and also express the significance that living conditions have on this era and the society.It can be seen that focusing on living conditins has become the regular pattern in the government's operation,the goal of which is to enable every member of the society to share the fruits of the reforms and opening up policies,to realize social equity and justice,to truly realize the healthy and sustainable development of our society,and ultimately to achieve the "Chinese dream".The construction and the supply of the indemnificatory housing system are the key factors that enable the government to accomplish this goal.They also provide an important institutional guarantee for achieving the goal.At present,the construction of indemnificatory housing in China is just unfolding.Both the construction and the design and implementation of its regulations and supervisions have problems,so do the construction and the supply of related institutions.These require urgently further reforms to make progress.If the relationship between equity and efficiency is not handled properly,it will be very difficult to protect the basic housing needs of the people,especially the housing rights of the low-income families.Sharing the fruits of reforms and development among the people is an essential requirement of socialism with Chinese characteristics and a concentrated embodiment of the superiority of the socialist system.Therefore,speeding up and improving the social security housing system is an inevitable choice for promoting the building of a harmonious society.It has also the great practical significance for restricting real estate prices,controlling high housing prices,and enhancing social management capabilities.This paper expounds theoretically the justice and efficiency of the indemnificatory housing system.By incorporating economics with jurisprudence,this paper systematicallyanalyzes and studies the status quo and existing problems of the construction of the indemnificatory housing system in our country.Based on this,it attempts to solve the difficult problem of transform the idealized optimal regulatory mechanism design in economics into specific and operable laws and regulations,to bridge the gap between the "supply" of China's indemnificatory housing system and the "demand" of the social reality so as to promote the equity and justice of the construction of indemnificatory housing,and to expand the field of studies of the economic of law.To carry out the research,firstly,this paper summarizes the connotation and characteristics of indemnificatory housing and its system as well as the related theoretical basis by literature review;secondly,examining the achievements and problems of China's indemnificatory housing and its system from the perspective of historical development and current situation;thirdly,via empirical analysis,the paper reveals the relevant factors that affect the indemnificatory housing system and its satisfaction and their mechanisms;moreover,the paper analyzes the impact of the land finance and the government quality on the supply of indemnificatory housing and on the problems of the supply of indemnificatory housing system.Fourthly,the paper examines the economic effects of the indemnificatory housing system from three perspectives: market,consumer,and government,and reveals the influence of this system on commercial housing price,consumption,and the residents' trust in the government.Finally,this paper has also gained inspirations from developed countries and regions by studying their experience in implementing indemnificatory housing systems.The chapters in this paper are organized as follows:Chapter 1 is Introduction,which introduces in general the logic underlying the studies and the organization of the paper.It clarifies the backgrounds and significance of the topics covered in the paper.In the meantime,it also categorizes all the viewpoints through literature review as the basis for the legal and economic analysis of the indemnificatory housing system and describes the research framework of this paper.Expected innovations and weaknesses of the paper are mentioned,too.Chapter 2 is Connotation of indemnificatory housing and the theoretical basis of its system.This chapter analyzes the connotation and characteristics of indemnificatory housing.It also discusses the connotation of the indemnificatory housing system and the characteristics of law and economics.It explores the theoretical foundations of the system.The theories used here include the Marxist thoughts on housing and living conditions,the new institutional economics theories,theory of social welfare maximization in the welfare economics,and Beveridge's social security theory.Chapter 3 is Supply of China's indemnificatory housing system and the problems.This chapter analyzes and elaborates the history and current situation of the development of indemnificatory housing in China.It summarizes the achievements and problems of the system.Chapter 4 is Factors affecting the indemnificatory housing system.This chapter examines the factors affecting the indemnificatory housing system and those affecting its satisfaction.Using provincial data and the CGSS micro-survey data,it empirically examines the impacts of the land finance and the government quality on indemnificatory housing supply.It analyzes the residents' satisfaction with the system and the factors affecting the satisfaction.It also summarizes the problems associated with the supply of this system.Chapter 5 is Effectc of the indemnificatory housing system.This chapter examines the effects of the system from the perspectives of market,consumers,and government.Employing provincial data and the CGSS micro-survey data,it empirically examines the impact of the system on consumption,commercial housing prices,and the residents' trust in government,and gives the corresponding conclusions.Chapter 6 is International comparasons of indemnificatory housing systems and the lessons.This chapter discusses first the historical development and current situations of the indemnificatory housing system in the developed countries / regions such as Britain,Germany,Hong Kong,Japan,Singapore,and the United States andthen summarizes the their experiences.It also summarizes the lessons and the inspirations to China.Chapter 7 is Objectives of China's indemnificatory housing system reforms and the suggestions.Based on the analysis and studies in the above chapters,it gives the principles and objectives of the reforms of the indemnificatory housing system in our country.It puts forward suggestions on the government functions,the efficiency of implementation,the laws,the supporting measures,supervision of the allocation,and the funding sources of construction associated with the indemnificatory housing in China.This chapter is the conclusion of the whole paper.