The Research On Factors Of Selecting The "Housing Endowment" Mode

With the development of the economy and society and the implement of the family planning policy, China’s aging problem is becoming more and more severe and the traditional family pension has been unable to meet the growing demand for pension, thus establishing a new diversified pension mode is extremely urgent. Fortunately, the "Housing Endowment" mode is an important complement to deal with the aging problem and improve the pension mechanism. However, the mode didn’t develop smoothly since its pilot in 2005, and the factors are diverse. In addition to the external factors such as imperfections of China’s financial market, the lack of the laws and regulations and the house price fluctuation, most important is the influence of the internal factors such as the traditional bequest motives. Therefore, exploring the factors to the "Housing Endowment" mode, especially analyzing the impact of the bequest motives to its selection quantitatively, contributes to understanding the feasibility of the "Housing Endowment" mode and the conditions of it in the current cultural context. And this has important implications to improving the "Housing Endowment" policy and promoting its smooth development.This paper firstly reviews the domestic and abroad researches on the "Housing Endowment" mode. Then it introduces its implementation in our country and its development status and experience in foreign countries. Based on that, this paper analyzes the factors that hinder the smooth implementation of the mode in our country. Then it establishes two models separately from the perspective of the housing wealth effects and the life-cycle consumption, and quantitatively discusses the impact of the bequest motives to selecting the "Housing Endowment" mode. By analyzing it concludes that compared to monetary wealth bequest motives, the property bequest motives has more impact for residents to choose the "Housing Endowment" mode.Through reasonable share of real estate’s expected value-added benefits, the residents’ life-cycle utility under the "Housing Endowment" mode will be better than that under the traditional social security mode. And lowering the housing wealth effects will help the residents improving their selection to the "Housing Endowment" mode. Finally, according to the findings it put forwards policy recommendations to promote the smooth development of the "Housing Endowment" mode. It is more scientific and rational to analyze the residents’selection to the "Housing Endowment" mode and its relationship with bequest motives through the perspectives of housing wealth effects and life-cycle utility. And it helps to understand the various issues during the operation of the policy and provides targeted policy recommendations for the successful implementation of it.