The Method And Adjustment Mechanism For Measuring Income Limit Of Housing Security

Housing provides the most basic elements for the survival and development of human society, and possessory title to appropriate housing is part of the fundamental rights for every citizen in modern society. Since China’s reform and opening up, although the living conditions of urban residents have improved a lot with the rapid growth of economy, the consumption ability of many low-income households is on the decline and housing problem arise due to the rising of house price in recent years. It is the responsibility of the government to improve the housing security system and meet the housing needs of low-income families, since housing is an important livelihood issues. In recent years, the Chinese government has gradually increased the intensity of the housing security to solve the housing problems of low-income families, but there are also some unreasonable problems such as "dislocation", "off-side", "absence" and so on, because of the imperfection of housing system.Since income level is the important factor affecting the demand for housing, income limit of housing security are the key indicators of determining the housing safeguard object. However, the lack of scientific measuring method results in unreasonable criterion of income limit in many cities, which affect the effectiveness of the housing security policy seriously. Therefore, exploring the theoretically method of measuring income limit is of great significance to ensure the smooth implementation of housing policy in China. As a consequence, the measuring theme of housing security income limit is deeply discussed in this paper. The main contents are organized as follows.Firstly, the reality basis of housing policy containing the value orientation, target positioning and government support capability constraints are analyzed, which leads to three determinants of the housing security income limit by residents’ basic living needs, social justice and government guarantee ability, so as to lay the foundations for research angle. In addition, the basis of measuring method is pinpointed based on carding the experience of some developed countries or regions. The principles of measuring the income limit are also summarized in this section.Secondly, from the perspective of government guarantee ability, the measuring frame of income limit by means of income distribution is analyzed. The fitting method suiting the income distribution of Chinese urban residents is confirmed on the basis of method comparison. By building regression model, combined with the IMF data, the relationship of the supply level of housing security with the the level of economic development and financial ability are analyzed, which provide the determination method of the moderate levels of government housing guarantee ability. The measuring of income limit considering the moderate support capability of government is carried on by taking Nanjing as the research object, according to the income function of urban residents and the proper level of housing security investment during 2007 to 2012.Thirdly, from the angle of the residents’ expenditure, combined with the concept of housing affordability, the measuring method of income limit under the condition of meeting the basic needs of residents’ living is analyzed. According to the basic principle of the residual income method to measure the housing affordability, the relevant variables of affecting the income limit are combed. Based upon the defined standard of reasonable consumption, which determined by the perspective of meet the residents’ right to adequate housing, combining with the two indicators of poverty line and average living budget line respectively, the method of measuring the absolute income limit and the relative income limit is discussed. According to the relevant data of Nanjing, the absolute and the relative level of housing security income limit in Nanjing from 2007 to 2012 are measured.Again, from the perspective of social income distribution, the measuring idea of income limit satisfying the requirements of income inequality metrics is analyzed. Concerning the serious situation of income inequality in our country, the significance of housing security policy in alleviating income gap is discussed. By referring to the Hicks equivalent value model, the method of transforming the benefits of housing security into the monetary income is constructed. And then taking the Gini coefficient as reference index, by fitting the effectiveness of income distribution under different income limit level of housing security, the measuring method of income limit to achieve a particular goal of income distribution is analyzed. The feasibility of this method is verified through the empirical analysis by taking Nanjing as an example.Finally, the adjustment mechanism of income limit of housing security is discussed. The adjustment mechanism of the measuring methods built in this paper is firstly discussed based on analyzing the relationship among them. Then the importance of adjusting income limit under different time span is analyzed, and the adjustment cycle, the adjustment measures and the indexation method are also discussed. Lastly, the influence of different famtly structure on income limit is analyzed, and the adjustment mechanism of income limit under different family structure is constructed by using the equivalent method.According to the above research, the main results are organized as followed: three targets including the basic living needs by residents, and then the measurement framework of income limits for housing security is constructed. Combining the regression model of housing security level and the income distribution function, the measuring method for income limits is built based on the government capability. Referring to the residual income method, from the perspective of meet residents’ right to adequate housing, respectively, the method for absolute housing income limits and relative housing income limits is put forward. By introducing Hicks EV model, the method meeting the goal of fair income distribution is analyzed. The adjustment mechanism of housing income limits among three measurement methods, different periods and different population are discussed deeply.The scientific ideas and methods for measuring income limits of housing security are provided in this paper, which is not only beneficial to perfect the housing security theory, but also to provide the implementation method of housing security policy.