Market System Partition And Reunification

The institution of economic and functional house has really solved the housing differenties of a few medium and low income households since implemented. But as the main body of our country's housing guarantee policy systems, the institution of economic and functional house is far from its expected goal and responsibility of duty. So what is the reason? And how could we improve the situation?The thesis analyzed the behavioral choices of all the participants in the institution and the equilibrated outcome by establishing a game theory model, on the basis illustrated the main problems of the institution, and proved that why the economic and functional house institution did not possess feasibility and rationality of going down.First of all, economic and functional house institution contrary to interests of the local government, so has resistance of carrying out. Under the strong present real estate market, the house price goes up and drives the price of land to go up, so the way so as not to levy the money for selling land is realized to the subsidy of the economic and functional house, causes the bigger losses of the local public revenue directly. However the central government does not offer any financial support for local governments, so the institution of economic and functional house and local government's interests form the conflict. Secondly, the institution of economic and functional house has not offered encouragement for that the developing companies participate in the construction of economic and functional houses, the supreme profit rate of 3% limits not only given up the motive force that a developer undertakes the construction of the economic and functional housing, but also a unfair demand for developer to offer subsidies. And the effect of crowding out from the lower price of economic and functional house causes the direct loss to developer's interests, so the institution can't get the developer's cooperation either. Moreover, as to the house purchasers subsidied, facing the developers' harmful inward behaviour, they have only choice to accept (buy the economic and functional house harmfully transformed ), otherwise giving up buying...