The Policy Transition Of Real Estate Subsidies Of China

Due to the housing problem which relates to the livelihood of the people is one of the important factors that maintains the stability of our social, many domestic and foreign experts and scholars study in this field. No matter bases on the costumers behavior theory, welfare economics theory or housing "filter" theory, the scholars almost make a comparative unified conclusion. That is comparing the two forms of the housing subsidies policy, monetary subsidies and physical subsidies, monetary subsidies can make higher utility of costumers and lower cost of the supervision of the government and accelerate the filter of the housing effectively. The longitudinal study of process of reform of housing policy for sixty years, there are only two short periods that the government use the policy of monetary subsidies, the others uses the policy of the physical subsidies. The contradiction between the theory and the reality triggers us think.This paper raises questions based on the contradiction.Why the government choose the policy of physical subsidies which has lower utility, while the government know the policy of monetary subsidies has higher utility? Why the physical subsidies is the most important way, whether in the period of the planned economics which had an acute material shortage or in the period of the market economics which has the speedy development. During the past sixty years, which subsidies can prove the quality of people's live? Which subsidies can promote the development of the economics? Which subsidies has the lower utility comparing with the others?So this paper treat the progress of the change of the housing policy, the background of the evolution, the reason of the evolution and the effect of the policy which had been implemented as the object of study.