To implement urbanization strategy and accelerate it at a great speed is an importantly strategic measure in the Outline of the Tenth Five-Year Plan for National Economic and Social Development. Adjusting the beneficial mechanism of land expansion in the small town so that it can sprawl smartly and optimally becomes an urgent question for study at present and in the future.The paper includes five parts as the following. In part 1, the current status, characteristic and paths of land expansion in the small town is introduced. After that, we make Economic analysis on illegal expansion. In part 2,the author analyzes the pushing and stymieing mechanism of land value formation and establishes theoretical model on land value increment. Based on this, influence factor for land value increment is analyzed. In part 3, analyzing the evolution of land benefits distribution, the author compares the land policy and land benefits distribution mode in planned economy system and market economy system. After that, the impact of collective construction land use system reform on land benefits distribution. In part 4, the author explains how the participators' behavior affects land benefits distribution. Based on the analyzing of current allocation structure, the impulse of land benefits distribution for the small town sprawl is discussed and the supervisor-supervisee game of illegal transaction is established. In part 5, According to the policy innovation and incentive contracts, this author restructures the land benefits distribution of small town. |