Affordable Housing Agency Relationship Research

Construction of affordable housing is an important step to improve the security system in China is also an important means to meet housing needs of low-and middle-income families. However, in the implementation process of the construction of affordable housing in recent years, all kinds of problems, which the contract itself, the problem of affordable housing in the principal-agent the root cause of many problems. This article is based on this framework relying on principal-agent theory analysis of the two local governments and real estate business in the construction of affordable housing in the principal-agent process, constitute an agency relationship and the issues involved in the main, to find a contract design reasons of their own problems, and made recommendations to improve the construction of affordable housing contract.The affordable housing agency relationship is often asymmetrical, the agent is the possession of the information advantage or private information, client information disadvantage or do not have access to their own information. From the view of the participants in the affordable housing agency relationship, the local government is the principal, that is the agent of the actual implementation of the real estate development companies. Specializes in the fourth principal-agent model of affordable housing under asymmetric information, and its aims through the analysis of the principal-agent model under asymmetric information, to provide a frame of reference for the study of the principal-agent model under asymmetric information conditions. Principal-agent model of affordable housing under asymmetric information, principal-agent model involves correlation function characteristics reservation utility as well as the determination of the efficiency of the operation and management of real estate enterprises. Adverse selection in the affordable housing agency relationship is discussed under the conditions of asymmetric information. Agent to provide for the protection of housing construction mainly depends on the enterprise level of investment and enterprise effort. Adverse selection problem, if the agent’s level of funding there is information asymmetry is impossible to know the the agent specific funding level in the design of the contract, but an agent but clearly, in this information asymmetry case, the principal design of the contract both agents accept the principal, but also to achieve their own utility maximization, the essence of the problem is adverse selection. The fifth chapter focuses on the principal-agent model as well as the presence of adverse selection rent Pareto efficient optimal solution.First of all, on the basis of analysis of the history and current situation of the development of affordable housing, research the main problem of the implementation process of the construction of affordable housing in China. Second, relying on the analysis of the formation conditions of the agency relationship between the local government and real estate development companies in the affordable housing commissioned the construction process in the principal-agent theory. Then, using game analysis method, through the construction of affordable housing construction, commissioned the local government contract with the real estate development enterprises in the process of principal-agent relationship model to explore the problems in this layer of the agency relationship, in order to explore our protection commissioned by the housing contract design itself. Finally, the summary, recommendations and opinions for the smooth implementation of affordable housing commissioned agent.In this thesis in learning research contract theory, game theory, based on principal-agent theory, systems theory, management theory, economic theory as a guide, the application of mathematical modeling, system optimization methods such as the research object, the real estate enterprises, the non-into affordable housing agency relationship under Asymmetric Information reverse multiple-choice questions to discuss, get some valuable findings.The paper generally follows the basic idea of the questions-the analysis of the problem-to solve the problem ". Ask questions, mainly the status and role of government and real estate development companies in which the construction of affordable housing. In the analysis of problems, mainly from real estate companies involved in the construction of affordable housing status quo, the government in the construction of affordable housing and real estate development enterprises contract agency relationship. Earlier analysis concluded solve the problem of affordable housing in the principal-agent specific suggestions.