Study On Behavior Pattern And Incentive Mechanism Of Local Government In Housing Benefits

The central and local governments play a very important role in housing benefits Since the affordable housing system created. At present, many problems existed in housing benefits, especially on the distribution of government functions. As central government gives local government various task and lack of perfect incentive mechanism, local government’s enthusiasm has be affected to some extent. The article starts from the function orientation of central and local government, analyzes the behavior pattern and incentive mechanism of local governments. First, the article analyzed the housing security mode, the practice of the central and local government and this provides advanced experience to our country. Second, it lists the responsibilities of central and local government in housing benefits and makes the current situation and problems clearly. In addition, this article analyzed central and local government’s behavioral effects from the perspective of the principal-agent relationship and also use Hangzhou as an example analyses its behavior motivation and work efficiency. Most importantly, it focus on evaluating the existing incentive tools and combined with Hangzhou’s implementation differently designed the incentive mechanism.The study shows that there does not exist optimal strategy in central and local government’s behavior utility but depends on the dynamic choosing of both. So central government can strengthen supervision and inspection to govern local government’s behavior. As Hangzhou’s does housing benefits work with enthusiasm and carried out smoothly, central government can reduce the supervision strength and inspire its autonomy with incentive mechanism.