An Study On The Welfare Improvement Of Housing Provident Fund

Housing provident funding is an very crucial ingredient of housing financial policies andit is the important access for the lower-middle class to buy housing. Although the housingprovident funding greatly prompted the monetary reform of the housing reform to somedegree and enhanced the residents’ housing affordability, the defects of deposit system,interest rate system, and using system of housing provident fund lead to the low welfare levelof this housing fund, in another word, this fund still has the space for Pareto Improvement.What is noticeable is that these defects exists both on the national level and the city level.This paper firstly introduces the history of the housing provident fund of China, thensummarizes the developing modes of housing fund managing. On the basis of the previouswork, this paper goes on giving the detailed defects of this fund, such as deposit coverage isnarrow, low deposit and low credit, inefficient use of fund pool etc.. Of course the followingis the suggestions of how to improve this system. This paper then discusses the development,organizing, staffing, achievements and problems of the housing provident fund in ChifengCity, and offers the measures which could help enhancing the welfare level of the housingprovident fund in Chifeng City.By analyzing the5808sample data and summarizing the difference of the using andloaning condition of housing provident fund of enterprises and institutions in Chifeng City.Then employs the Gini coefficient methods to paint the differences of the welfare enjoyed bydifferent workers, who deposit the housing provident fund, in different income level. This canexplain the necessity of the housing provident funding reform. The point is that this paperchooses the deposit system as the main contents. Specifically, using the Fuzzy ComprehensiveEvaluation Method to study the welfare difference, in the condition of those whose monthlyaverage income is lower than3500RMB could extract the housing provident funding depositof his own part to rent more comfortable houses. The outcome indicates that the welfare levelrises by0.18%, which means that this policy could improve the housing welfare of thelower-middle class. Besides, this could also improve the efficiency of housing providentfunding and further boost domestic demand then contribute to the sustainable development of housing market.The innovation of this paper is that it breaks the inadequate of previous studies ofhousing provident fund employing not only qualitative research but also quantitative researchusing a relatively large amount of first-hand data to estimate the welfare of housing providentfund. This provides an productive research method for further researches and givesconstructive suggestions for the housing provident funding.