Analysis On Interest Mechanism Of Urban Renewal

Recently, with the development of national economy and urbanization, Urban renewal under the government has been carried out in great scale among the cities in China. In one hand, urban renewal plays an important role in urban development, Improving the city view of the abandoned areas; increasing the function of the city; Enhance the city competence. In the other hand, with the advance of economic system reform and the raise of the public democracy. Urban renewal shows many negative effects. For example, the loss of urban feature; political projects; expanding the removal amount; meaningless of city plan. The back of these reasons have relation of the game behavior between the interest subjects. Different interest subjects such as local government, the relative departments, investors, community public and so on have many interest demands which lead to many conflicts. In the process of solving the conflicts, the government needs to arrange a series of institution to help the interest expression of social vulnerable groups and security interest and how to coordinate with the investors. In this situation, the government must strongly consider the changing that interest subjects of urban renewal may take the action, and to achieve the maximize social welfare. The law is nearly complete today. However, there are still many social problems in urban renewal which let us to rethink the current interest mechanism. Because there must be an unreasonable interest mechanism in the back of any social problems. Due to the mechanism, the interest subjects take the improper action and the unfair distribution of the interest. Which bring to many social problems.We need to solve above problems by some means. First, we should analyze the status of interest mechanism of urban renewal. Including: dividing the interest subjects; different interest demands; the structure and the method to achieve the interest. Second, the mechanism design theory can help us to understand the behavior choice. To analyze the lack of the designing such as: incentive incompatibility, constraints, information. To provide a new analyses tool and theory to improve the interest mechanism of urban renewal. Lastly, to adjust the pursuing the interest by local government and investors; to reduce the information cost; to develop the community to promote urban governance. In one word, the paper aim to provide the mechanism design theory to the policy making in urban renewal. And to build a well mechanism in interest expression, coordination, security. Therefore, there are important significances both in theory and practice.The creativeness of the paper demonstrates as follow: First, to regard the interest mechanism of urban renewal as the studying object. To understand and analyze the differences of the way how the interest subjects achieve. At the same time, according to the special situation of urban renewal, the paper reports the separated layer in interest of government and the trouble of protecting the interest of removal people. Second, bringing in mechanism design theory. As a method, the theory can find the same features among the different mechanisms; and to apply in the certain issues. To avoid the limits in the traditional study on the behavior and away from the improper assumption. In fact, people always hope to make the decision respectively. Because a man would impossibly to obtain all the information.