The Credibility Of The Government To Punish The Integrity Of The Housing Developers

The good faith problem of developers in housing market hasattracted our government and consumers' attentions. The implementationof fraud in general, will have to face two fronts: on the one hand, thepenalty is a punishment for repeat purchasing power of the spontaneous,and on the other hand if the government found that it will give them themandatory penalties. This paper on the housing market showed housing isbasically a one-off game. Due to the lack of spontaneous punishment, therole of government is particularly important.Through analysis of the credibility of the government punishment, itproves that the government increases penalties in the long run willincrease the probability of dereliction of duty because of the "incentiveparadox", it could lead developers to deviate from the desire to increasecredibility. In the long run the government should pay more attention tothe supervision of law enforcement and the penalties for dereliction ofduty.Therefore, if we want developers to do business Honesty, it is thebest choice to enhance the credibility of the government. Should bereflected in three aspects: one is legislation, guarantee full legalprotection by laws means that the protection for the legitimate rights andinterests of home buyers is large enough, and gives the developers whoagainst the laws sufficient deterrent effect; The other is enforcement,establish an effective law enforcement mechanism to ensure effectiveimplementation of the law, the law is no longer an "empty threat"; Finallysupervision, establish an effective monitoring mechanism, strengthen themonitoring and enforcement of the punishment for dereliction of duty,and to eliminate corruption and rent-seeking and other illegal activities.