Prduction Of Public Goods By Means Of Public GOODS

The dissertation focuses on the issue of Affordable Housing Problem under the analysis framework of Public-Goods-Chain. The analysis is carried out in line with the application of mainstream theories of public-goods-chain. The conclusion is that insufficient financial policy leads to shortage of affordable housing, and a future plan is presented for financial policy in supporting China’s affordable housing.Public-goods-chain is based on the theory of public goods. Firstly, the course divides the public goods into general and concrete through the perspective of utility. General public goods bears a higher publicity, which only could be perceived by human-beings and includes pure-intangible-national public goods; While concrete one’s is easily felt by and closely connected with ordinary people. Concrete public goods consists of semi-tangible-local pubic goods. Secondly, it divides the public goods into models of (government supply or)solo-supply(correspond to general public goods) and multi-supply(correspond to concrete public goods) by the aspect of supplier. With the deduction of government supply determines multi-supply, we inferred that general public goods leads to concrete public goods.Public Policy is the main product solely supplied by the government. Public policy has its own "policy life", which is the process of conversion from government supply to multi-supply and general public goods into concrete public goods.As the process is connected stage by stage and rule with rule, it presents a structure of diachronic chain as a whole. Furthermore, there also exists a synchronic interaction process in every stage(different action arena) of the chain.Hence, the course defines the syncretic process of both vertical and horizontal as an evolution of action rule’s system. It constructs a public-goods-chain, which is a chain of multiple interaction layers (or stages/arenas)linked with rules from top to bottom. In the very chain, the process begins from input of policy and ends by the output of concrete public goods, which is a de facto procedure of internalization by rules of different levels and interaction in different stages. The public-goods-chain is the framework for the dissertation’s further analysis. The framework indicates that we should explore deficiency throughout the chain but correct it from the top of the chain.In the application of the framework, it proves that in the field of affordable housing exists an extreme relevance between financial policy(locates in the top of the chain) and affordable houses(locates in the bottom of the chain). Today, the disequilibrium between supply and demand of affordable houses in China reflects the imperfection of the financial policy in the top of the chain. In light of public-goods-chain, we conclude the deficiency of the current china’s financial policy as isolation, time-lag, dispersion and blocking. As the current policy only cares the bottom while ignoring the top, it will make a lose-lose-strategy for all the policy participants. The course argues that under the current policy system, it is difficult to complete the task of the planned affordable housing. It is very likely to result in a problem on the consumption side even if it is forcibly implemented.To solve the housing problem, Government should take a viewpoint of public-goods-chain by formulating and improving scientific supportive policy but not the contrary by producing and examining affordable houses. Government ought to return to its original duty—public policy producing.The policy proposals for china’s affordable housing are as follows:Ⅰ.The central government should adjust its focus into national finance supportive policy’s designing, after that could assign the task to local government’s execution;Ⅱ.Clarify subject and object of the policy. Define the location of the payment ability line on the chain, by which make clear the boundary and domain of the public goods; Ⅲ. Improve primary and secondary market of financial products for affordable housing based on a sound "syphonage system" and boost more financial institutions join into the supplying part; Ⅳ.Establish China national housing bank as a policy tool to lead commercial financial institutions investing in affordable housing and eventually realizing the goal of the national policy; Ⅴ.Besides "top layer designing", much attention should also be paid on provincial-municipal-district levels as to circulate the public-goods-chain smoothly and creatively.