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Researching on Muti-level Exit Mechanism of Low Rent Housing

Author: XiaoZongHui
Tutor: MaYanLin
School: Huazhong University of Science and Technology
Course: Management of land resources
Keywords: Low rent housing security Welfare economics Mutilevel exit mechanism Pareto Optimum
CLC: F293.3
Type: Master's thesis
Year: 2010
Downloads: 196
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Abstract

Our government has established a low rent housing security system, mainly by providing subsidies, which accompanied by providing low rent houses or reducing the rent of some public houses,to solve the the lowest income residents’housing problem. The resources of low rent housing security system is very limited,but the demands of the low rent housing is unlimited. Therefor, how to tackle the conflicts between them has becoming a urgent task. Our governments attach great importance to low rent housing construction and expand the financing channel of it in order to settle the contradiction between the demand and supply. Under this background, we need to explore a method to effectively control the growth in demand or reducing demand. Establishing a exit mechanism of the low rent housing has becoming a solution of this contradiction.Many developed countries have the mature standards of entering and exiting of the housing security system, such as japan and singapore. But the practice of the exit mechanism of low rent housing in our country is at the early stage, which characterized with the researches and the implements are just aimed at the establishing of the standards without any correspondence with the truly needs of the lowest incoming families. In addition, whether the current exit mechanism of low rent housing in our country, which lack the corresponding incentive elements and stringent publish ways, can improve the whole social welfare standards is uncertain.This paper fristly defines the conceptions of low rent housing and the exit mechanism of low rent housing. And on the basis of analyzing the development of the policies of low rent housing as well as the current exit mechanism of low rent housing, we attain a more profound understanding of this problem. It holds the opinion that we should use the incoming level (can use the level of incoming or assets )as the only standard of the exit mechanism of low rent housing. Secondly, as regarding to the other current standard——areas of the housing, when establishing a mutilevel exit mechanism of low rent housing, we could set up a standardized level according to the the conditions of the local places. For the families whose incoming is exceeded the incoming standard, they should use the exceeded money to afford the rent of the area which is calculating by the actual housing area minus the standarded area. And after this, if the incoming of the family is still more than the incoming standard, they should move out from the low rent housing. Furthermore, for thoes families, we should also divide them into various groups with different incoming level, and design appropriate exit mechanism of low rent housing for them. Finally, we are aimed at realize the Pareto Optimum, that is U1[the incoming-the market rent±(rent subsidies-money which afford for the rent of the areas which is calculating by actual housing area minus the standarded area) +standarded housing areas]>U[the incoming of the families who is enjoying the benefits of the low rent housing security system+standarded housing areas]. At the end of this paper, it is endeavoring to establish a mutilevel exit mechanism of low rent housing in Wuhan.

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