Research On The Construction Market Credit Mechanism Based On System Dynamics

At present, China's construction industry is faced with serious credit problems which are causing severe damage to society and economy, increasing business costs and risks, making the use of resources inefficient. Ministry of housing and urban-rural development of the People's Republic of China and the local construction administrative departments have made great efforts to put the construction market in order, most of the measures were effective at the time, but have had little success in credit establishment of the construction market in the long term. So system dynamics should be taken as a research tool to probe into the mechanism and law of development of credit problems, identify the root causes of the problems and formulate policies accordingly in order to fundamentally solve the problem.Construction market credit system is a typical complex socio-economic system. In this dissertation, the construction market credit system is taken as research object, system dynamics modeling theory and modeling procedures are used to set up the system dynamics model for quantitative study in order to explore the relationship of its dynamic behavior and the internal structure, and policy suggestions are proposed based on model simulation and scenario analysis.In this dissertation, the following parts are included: Firstly, the related concepts of the construction market credit are described in detail, the basic causes of the construction market credit problems are analyzed from an economic point of view. Then, the basic problem and the system boundary are defined. The whole system is divided into four subsystem, namely, information transfer subsystem, interest-driven subsystem, constitutional constrains subsystem and government regulation subsystem. The causal relationship between the four subsystems are analyzed and corresponding causal loop diagrams as well as integral causal loop diagram are drew. Then all types of variables are determined, system flow charts of each subsystem and intergral one are drew and the establishment of dynamics equations follows. Finally,Vensim is used to make simulation of construction market credit system in China. Later, tests are done against simulation results to discuss the availability and effectiveness of the model. Finally, analyses are done on the existing policy system and current problems of construction market credit system with countermeasures and suggestions put forward.