Study On Urban Land Granting Mode In China Based On Auction Theory

With the implementation of land auction policy, land price in urban areas has beenrising rapidly since2003. Under this circumstance, new record-high land pricesappeared more frequently, and urban house prices has been raised at a increasingly highprices, while the land revenues of local government has been greatly increased, whichattracted public’s attention and aroused people’s doubt on land auction policy. But island auction the main reason that lifted the lands and houses prices? Is it reasonableabout the auction that the highest bidder wins? How to solve the problem of therecord-high land price? Therefore, the essay is mainly focused on these problems.(1)Analysis of land transfer system based on auction theoryTo show the type, value and evaluation feature of land, a seal price auction and anEnglish auction model should be respectively established, based on modifying thebenchmark model of assumptions, in order to find the positive relations between theopen market information u and the bidding quotation bi, and finally I illustrate that theexisting land auction has been a main factor for the internal mechanism that can affectland price, and a result that caused by the combined functions between the demand ofoutside market and the internal mechanism."The highest bidder wins" principle isconsistent with the requirement that auctioneers pursuit the maximization of land value.Once the auctioneer objective mode change, bidding rules and auction type willtransform relevantly, so the highest bidder criteria may not apply.(2) Analysis of relationship between bidder enterprises behavior and remising-landsystemFirstly, through studying problem from the bidder enterprises behaviors which canperfect china’s land selling way system, the "record-high land prices” was chosen as the research object."Record-high land prices” and "the illegal land reserves" respectivelyrepresent the irrational bidding of the bidder’s enterprises and speculation which weretwo non-standard behaviors. And we introduce bidder’s risk indexing into thebenchmark model to analysis and solve, and find that bidder’s risk attitude is animportant factor that affecting the results of bidder. Moreover through the research ofpart of illegal land reserves which exists on the subsequent development of therecord-high land, dynamic game analysis model about the illegal land reserves ofrecord-high land was established, the countermeasures and suggestions were putforward to restraining record-high land prices and the illegal land reserves frombeforehand prevention, things in supervision and after the punishment three angles. Atlast rationality and risk of the phenomenon of "flour is more expensive than bread" wereexplained through a numerical simulation.(3) Analysis of land selling way system and government actionThis essay is focused on the influence of the local government behavior to landselling way system. Through researching local government and officials’ interventionbehavior, means and rent-seeking motivation towards urban land selling, I find that landauction is mainly the result of local governments’ intervention. The abstract reason thatthe local government support high land price and high house prices and realizing wayswere found by making government land selling revenue as the objective function, fromthe angle of the corresponding relations between three kinds of local governmenteconomic behavior (basic construction investment, investment promotion and cultivatethe real estate)at selling land with land resources classification for three type (othertypes for land, industrial and mining land, real estate development land),as well as theintrinsic link between the three types of economic behavior. At last three perfect biddingmodes of land bid invitation,auction and list system were obtained based on adjustingaccording to the "highest bidder "bidding rules, from the government control rise inhousing price and land price angles.(4)Perfect the principles of china’s land selling system and suggestionsThree principles of perfecting land bid invitation, auction and list system were putforward which were based on summarizing earlier studies, specific recommendations toperfect land bid invitation, auction and list system were given from several aspects.