The Land Transfer Behavior And The Financial Strategy Of The Local Government

Along with the acceleration of the social economy growth and the pace of urbanization and modernization speed up, the demand of the urbanization and construction for land increases unceasingly. At present, the government's gains from the land have two main sources: one is the land requisition, namely the value-added come from the agriculture ground turns to be used for construction. The other is the original construction land of the city has changed to be used commercial development, in essence however, is still the income of the land appreciation of the different purposes on the use of land. Since 1994, after the national tax-distribution's reform, land grant fee almostly belong to the local governments, which left a huge space for their operating. Many contradictions caused people to pay more attention to the problems such as the the operate system and the huge number of land revenue. From a behavioral economics perspective, this article try to construct the new theoretical analysis framework, to analyze the forming mechanism of local government behavior, and to understand the effect of unique economic phenomenon and then promote some policy recommendations, which have realy important theoretical and realistic significance.Local government behavior problems has became the academic circles in recent years at home and abroad. Many scholars in this hot has made rich groundbreaking and inspirational job. Based on fully absorb and reference on the existing research results, their observations have bring the local government behavior research some degree of expansion and propulsion. But by the limits of the new classical economics'basic assumptions, most research in explaining the behavior of local government only sting to"perfectly rational person"level. Yet in reality, local governments are not like traditional economics as, make the best "rational choice" after collecting all available information completely. Instead, their judgment and decision are always effected by their own emotions background and the influence of the specific group. Officials rent seeking and the "conspiracy" between government and companies is already became a secrect which has no necessity to tell. Behavioral economics eased restrictions in traditional economic assumptions and assume that person is limited rational, and the selfish is constraint to a certain conditions. In this way, the object becomes more real, more flesh to explain as realistic problems. Obviously, the explanatory ability and the practical are also be enhanced. This paper attempts to use the behavioral economics theory to explore the internal law in land transfer behavior, trying to make efforts in improving government behavior. In reading a lot of domestic and foreign documents about land supply system, price, local government land transfer behavior. After studying the predecessors' results on this existing problem in detail, the analysis of government land transfer and local financial strategies of literature from behavioral economics perspective are not have so much. In the relaxation of rational hypothetical cases, this paper completely described the completely and limited rational selection of performance and the behavior strategy respectively. The objects usually pay attention to short-term results, easy to ignore long-term impact. Thus easy to cause abhorrent behavior in long-term rational planning and short-term irrational practical. Local government for reasons such as trial, examinations and so on are more likely to form short-term limited rational behavior. Then trying to explore the factors affecting the local government behavior. At last, proposed a ideal strategy about local government financial.