Analysis On The Local Government’s Economic Behaviour In Land Finance

Since the1994tax system reform, especially after2000, along with the urbanization process moves forward, the housing boom, land finance more and more attention. With successive years of rising house prices and local governments continue to increase in land revenue, local government formation is dependent on land finance has become a society-wide consensus. Coupled with the scarcity of land resources, it is also generally considered unsustainable land finance, yet to establish a sustainable source of income of the local government. Especially in recent years on the land acquisition and resettlement caused by a number of mass incidents, at the same time intensify social contradictions, but also to the public and the media criticism directed against the land of the local government fiscal behavior. How to solve this problem, many scholars have put forward by analyzing their views and suggestions. But still too much focus on the land finance and land on the defects and shortcomings in the system level of the economic behavior of local governments is not deep enough. Because the relationship between government and the land market has changed dramatically with the economic development, land finance some of the problems with the misconduct of local government have a significant relationship. The land finance the premise of the land ownership and land reform issues, analysis and formation mechanism of the economic behavior of local government land use should be the focus of our attention. Of local government in the current period of transition, as a relatively independent of the main interests, control of land resources, the scarcity of resources, local economic growth within the existing institutional framework in order to obtain the impulse to maximize monopoly rental income. Special urban and rural land property rights system for local governments to control urban and rural land property rights, strong involvement of the local economic system of the premise, land resources of local government to achieve optimization of its own goal of the utility function is the most effective resources, thus forming a land with local finance, the central government, local residents and real estate developers and many other main interests of a chain of complex situations, the game is also related to the main caused by the huge profits generated, causing all kinds of irrational behavior in the land market and confusion in order. So the economic behavior of local government in the land financial system areas of in-depth exploration of urban and rural land resources, rational use and land market order and its important. The article will lock analysis point of view of the economic behavior of local governments, no doubt on the financial restructuring of China’s land and land market regulation has a double value and significance of the theoretical and practical.This article explores the theory combing for the specification of the economic behavior of local governments in land finance and policy recommendations on the guidelines. The entry point of the paper is China’s urban and rural land system, in-depth analysis on China’s urban and rural areas both land system, the possibility and necessity of clear local government to intervene on the land market. And then define its role of local government in the determination of urban land and clear economic behavior, the local government was established as a special actors in the land finance, re-classification analysis based on a clear positioning of this role, the local government for land financial the economic behavior of the background, content, performance, characteristics, structure, and other information, in-depth exploration of the interrelationship between the various acts, and then further by the theoretical framework of institutional economics to analyze the formation mechanism of the economic behavior of local governments in land finance. On this basis, the final combined transition of great significance to the property tax reform of the land financial proposal of the behavior of local governments regulate land finance, the economic behavior of local governments in land finance standardized path selection that direction.Specifically, the structure of the paper is as follows:First of all, the first part of the paper is the introduction of the thesis, put forward the basis and background of the study, the synthesis on the basis of past land finance, a clear thesis research ideas, the basic content, possible innovation and deficiencies. Secondly, in the second part of the paper to analyze the role of local government in land finance. Clearly defined the purpose of land based on land finance local governments and their economic behavior, described by the special nature of the performance of the four aspects of local government behavior, that the dual role of land finance; special target utility function; special The design of the Tenants; land supply, and special double-monopolist. Again, in the third part of the economic behavior of local governments in land finance specific analysis. Induction and summarizes the behavior of local government revenue land finance, infrastructure construction practices, nurture the relationship between real estate acts and three acts. In addition, in the fourth part of the principal-agent theory, the use of fuzzy property rights theory to explore the land finance, local government and central government, the microscopic residents of the main interests of local government economic behavior mechanisms. Finally, the fifth part of a comprehensive, specific policy measures of the economic behavior of the specification of local government in land finance.