From "Double Monopolization"to "Moderate Competition"Research On The Reform Of Rural

Rural-urban land conversation is the process, in which with the expansion and the increasing demand for urban land, the demanders change rural land into urban by economic or administrative means. In China, the main way of rural-urban land conversation is: National collection from rural collective land, the land ownership turning into the state, then on behalf of the ownership, local government transfers the land to users free or not. It includes two meanings:first the change of land ownership, second the transformation of land-use.At present, China is on the developing stage of rapid industrialization and urbanization, where the rural-urban land conversation is not only an inevitable economic phenomenon, but also the only legitimate source of urban land increasing. Since The Reform and Opening, rural-urban land has been ensuring the land needs of urban construction and industrial development, but having some impact on social economic stability and Sustainable Development at the same time. The serious imbalance of distribution of land added value is the key and the government’s double monopolization is the deep-seated reason of the adverse impact. Monopolization leads to welfare loss, this article is from the perspective of welfare economics, taking double monopolization as the starting point to study the reform of rural-urban land conversation.Firstly studying the welfare loss caused by double monopolization during the rural-urban land process, then analyzing the behaviors of the stakeholders, at last this article indicates the welfare loss from double monopolization contrasting with the perfectly competitive market. Monopolying of land requisition makes the government get land at a lower price, reducing benefits of farmers, increasing benefits of government, then results into the reducing of net social welfare. Monopolying of land supplyment makes the supplyment at an unreasonable price, eventually leads to social welfare loss.Secondly for removing low efficiency and welfare loss of double monopolization, this paper proposes moderate competition program to break the government’s double monopolization situation, achieve transformation of government function, so making the full paly of market mechanism under the control of the government and the direct flowing into the market of rural collective land. Comparing the double monopolization under the exclusive oligopoly model with moderate competition under the two-headed supplyment Cournot model, this study will found that "moderate competition" program can achieve the Pareto improvement on the base of the increasing of efficiency and equity.Finally to ensure the theoretical advantage of moderate competition and avoid the practical risk, some complementary measures are taken to create its institutional environment.The specific requirements are:defining reasonable way and border of the government’s management, establishment and improving the market mechanism, reforming and optimizing the government’s capacity to optimize the market mechanism. The optimal designing measures include:consummating the property rights system, strengthening the regulation of government planning, designing reasonable income distribution mechanism, cultivating intermediary organizations and so on.