The Principles Of Law And Economics Behind"Purchase Restriction" In The Real Estate Market

The price of real estate is closely related to the fact whether every family can get their own house with full ownership; and it’s also the base of the residents’ right of habitation entitled by the constitution,"purchase restriction" is to restrain the fast-rising price in the real estate market, and to lead the price to reasonable return. The price of real estate determines whether the common residents can get the ownership of their house relying on their own financial strength. Too high prices will result in the unreasonable concentration of wealth, and affect social stability and the rapid and sound economic development.The previous literatures on the "purchase restriction" mainly make legal analysis from its rationality and legality. This thesis takes the legal economic view and interprets the principles of legal economics in the real estate "purchase restriction". The instruments in economics is employed to analyse home purchase limits to find theoretical support in legal economics. At the same time, the author analyses the policy trend and gives some suggestions, with the hope to provide implications for the reasonable return of real estate prices, which is also the creative point of this thesis.This thesis can be divided into three parts. This first part reviews the policy of "purchase restriction". The second part adopts the instruments in legal economics to analyse and interpret this policy to find the principles of legal economics behind this policy. Its practical effect and legal rationality are also analysed. The last part provides suggestions for the policy trend and development in response to the reproaches and doubts coming from this policy.To be specific, this thesis is made up of six chapters. Chapter one gives general introduction to the real estate "purchase restriction" policy, and clarifies its nature and position. Chapter two and chapter three analyse this policy from the micro and macro aspects separately.Chapter four makes legal economic theoretical analysis of the practical effects after the implementation of this policy. Chapter five analyses this policy from its rationality and legality, and puts forward the author’s idea. By providing suggestions for the policy trend and development, the last chapteror make an effort to achieve the better development of this policy and the reasonable return of real estate prices.