The Game Analysis Of Government And Real Estate Developer In The Construction Of Economically Affordable Housing

The governments of all over the world are focusing on housing problem. Residents living level can reflect fully a country's level of socio-economic development and degree of social civilization development. At the same time the housing problem is a strategic factor which affects social stability and Long-term safety of the country. With the marketing economic development, the income and living quality of our country inhabitants is improved. The residential consumer demand is also increasing. But more than 85% in low-income families can not afford to buy their own houses, because housing price in large-middle cities continues to rise in recent years. In order to resolve the middle-low income inhabitants'housing problem, our government put forward a new housing classifying-supply system in 1998 which drew on the experiences of developed countries. The system was mainly establishing and perfecting economically affordable housing (EAH).Economically affordable housing policy is an important component part of our country's housing policies,is a macro-control measure to solve the middle-low income inhabitants'housing problem and to realize the commercialization and socialization of housing. Since 1998, economically affordable housing policy has played a major role in reducing housing price and meeting their housing demand for the middle-low-income families. It also ensures the smooth implementation of housing allocation system reform, cultivates residents'housing consumption custom, stabilizes housing price rising too fast, promotes the reconstruction of old houses and optimizes the layout of urban planning. However, the role has not been fully exploited in the course of construction and sale for economically affordable housing. More importantly, economically affordable housing policy did not really meet the people's wishes and requirements. The current status is that economically affordable housing did not reflect the economic and applicable characteristic. There is no big difference between EAH and ordinary commercial housing, and the low-income people who really need EAH did not have access to their welfare economically affordable housing should be given to. These issues in the process of carrying out and implementation of the economically affordable housing policy are very obvious, so that EAH policy aroused widespread social concerns.Taking the game of government and real estate developer in the construction of economically affordable housing as study object, this thesis will analyze the current EAH supply situation with supply and demand equilibrium theory from an economic point of view and make a description of EAH status. Then it will analyze the effectiveness and defect of EAH policy combined with the central government's macro-control policies objective. Finally, it will describe the game existing in the EAH market with game theory, illustrate the causes for this phenomenon, and put forward policy proposals accordingly to provide the ideal support for the realization of "Home Ownership" and contribute to build a harmonious society.This thesis is divided into five chapters.Chapter 1 is preface, mainly introducing the background of this study and its significance, the previous studies at home and abroad. In addition, it also overview the research ideas,the research content,the research methods,the contribution and lack in this article.Chapter 2 analyzes the present developing conditions and existing problems of EAH in China. Firstly, this chapter explains the concept and characteristics of economically affordable housing, introduces the approach to the allocation of China's EAH, and compares our country's EAH with the United States and Germany's housing security systems. Then it describes the general situation of China's EAH development and construction. Through looking back the condition of development and investment of EAH,the state of completion of EAH,the situation of the new start of EAH,the situation of the transaction of EAH over the years, we find out that 2001 year is a turning point in the supply of EAH. The supply of economically affordable housing tends to decline from the rising trend. The supply is very weak, but the demand to EAH is maintaining strong status in long term. Chapter 3 is the evaluation to macro-control policy about economically affordable housing. It mainly includes the government's macro-control policy goals, the content and the results achieved in the macro-control policy. Through analysis, we sum up the following problems still exist in the building EAH. For example, EAH price is still on the high side; Single-housing area is a little bit; Remote locations have increased the cost of commuting for residents; The sale target is out of control; The supply and demand is in a serious imbalance and so on.Chapter 4 analyzes the main reasons that the government's macro-control policy did not achieve the desired objective. That is because there is a game in the central government,local governments and real estate developers. This chapter describes the game process in the central government,local governments and real estate developers using game theory, and comes to the outcome of the game. This game is due to the different economic interests between central government and local governments. Their objective function and economic behavior also lie to economic interests, together with the asymmetry in the local government's "property" and the "final right" that the central government devolved to. And the expansion of local government finance relies on the development of local enterprises, so that there are deviations in the implementation of the higher authorities for local governments who plays game with the Central Authorities for the benefit of region. However, local governments also can not disregard senior policy, and must take into account the long-term regional economic development and social stability. Therefore, local governments would build economically affordable housing appropriately. Then real estate developers will play game with local governments for their own interests.Combined with EAH policy objectives, Chapter 5 puts forward some policy recommendations for the future macro-control measures in response to the issues raised and the reasons in chapter 3.