Law And Economics Analysis Of The Problem Of Urban Housing Removal

With the rapid socio-economic development,urbanization and urban transformation of the increased efforts,our country entered the house demolition phase of rapid development.Relocation plays an important role in realizing urban planning,promoting the cityscape,proper land resources utilization and enhancing the living environment.Relocation is also a complex and hard process,which concerning the nation,collective and individual,and the benefit of both the relocate one and the dispersed one are directly involved.Urban relocation has strong relation with the urban planning strategy and becomes a focus of the government and the citizen.Based on the research of relative theories and knowledge,this paper focuses on the history of urban housing removal system development and the related researches in the view of Juristic Economics.It systematically analyzes the relationship of different entities and the problems in the urban relocation.And according to the above, the paper put forward some practical suggestions for performing removal policy more efficiently.There are 4 chapters in this paper,which can be divided into the following sections:Firstly,general economic theories related to the urban relocation.On the researching of urban housing removal system,the author submitted the means for consummate the research from the view of Economics.The first is Economic theory of property rights.Marx and Harold Demsetz both thought property is a relationship of rights which is established among people in the social.Different scholars had different definitions of property rights.In theory of property rights,scholars cited transaction costs which link up with property rights arrangements and the allocation of resources.Coase Theorem depicted that property rights arrangements affect the allocation of resources differently.The second is Land Ownership and Urban Land property rights systems.The clarity of land ownership determines the level of land use, and it can achieve the allocation of resources.So scholars have continuously committed to the reform of land property rights system in the development of research. Now scholars summarized the direction of reform and measures about Land Ownership and Urban Land property rights systems.The third is Game Theory.It depicts and discusses the interaction of strategies between economic actors.And it is applied to political,diplomatic military and other fields.Game Theory analyzes the game rules,decision-making motives and behaviors between the main benefits in the urban housing removal.Secondly,it is relationship of different entities about urban housing removal.The government,the remover and the removed are the main benefit entities.Government is the defender of public interests,and it coordinates the whole removal process.At the same time,it also seeks to its own interests maximized.The remover is the pure "Economic Man",who is in pursuit of profit maximization as the ultimate goal, briberies to obtain government privileges and concessions to achieve self-interest. Thus,they can reduce the operating costs of development.The removed are passive participants in the activity,from beginning to end,they are in a weak position. Because of information asymmetries and unequal status,their benefits tend to be bound by and against.In this situation,the government should not intervene in the commercial housing removal.Instead,it should play the role of supervision and coordination.Thus,it can effectively regulate the deadlock problem happens between the remover and the removed,significantly protect the interests of masses of the people and enhance the public image of its own.At the same time,the government also needs to improve urban housing removal system,eliminate the information asymmetry behavior to ensure the fairness of the game,and safeguard the fundamental interests of the removed.Only in this way,the government can achieve the maximization of social benefits,minimize the social costs and can reduce the negative externalities of the society.Thirdly,it is the history and problems of China's urban housing system.The urban housing removal is an age-old phenomenon,which is with developments of the economic system,the process of urban construction,land-use system and the reform of housing system.This section focuses on the history of urban housing removal system development,including the history of urban land property rights systems and the changes of urban housing removal compensation system.With the reform of urban housing removal system,the land market and real estate market have been made significant improvements.But we must also admit that there are some disadvantages. They are mainly manifested:First one,it is the vulnerability of urban housing removal legislation.Second one,they are the defects of urban land property rights,which mainly refers to the land relationship is unclear.Third one,information is asymmetric and the legal status of the government,the remover and the removed are unequal. Fourth one,relocation compensation standard is too low,so that the low-income are not able to bear.Fifth one,forced evictions exist defects.Fourthly,they are some practical suggestions for performing removal policy. First one is to define the needs of the public interests and the protection of private rights of citizens.Second one is to reform the urban land property rights systems. Third one is to establish and improve housing security system.Fourth one is to establish a rational allocation mechanism and to clear the relationship among the government,the remover and the removed.Fifth one is to make the removal process open and transparent.