A Research On The Construction Of Social Credit System In China

As an important institution arrangement of credit management, social credit system (SCS) works to reduce information asymmetry, inhibit moral hazard, and promote transaction. Developing a high-quality SCS will helps to reduce transaction cost, promote credit consumption and credit transaction, as well as build up atmosphere of honesty. In2012, overdue credit card debt in China reached to14.6billion, which counted as high as0.026%of the GDP in2012. More serious, this number increased about71.86%just at the end of June in2013. The rapid development of credit transaction calls for better credit management and credit management arrangement.This paper mainly reviews the30-year history of China to build up SCS. This paper points out some dilemmas of China to simulate the experience of German and the US, and comes up with some suggestions for the optimizing of China SCS. The second chapter builds up an inter-temporal credit consumption model, which studies the optimal behaviors of creditor and debtor, and prove the importance of two kinds of credit information, information disclosure mechanism, and credit service industry. Based on theoretical analysis, the third chapter reviews experience of German and the US in constructing SCS. With consideration of literature and practical experience, Chapter four analyses three important problems:credit philosophy and logic, top-level structural design, and equilibration between German model and the US model. At last, chapter six comes up with policy suggestions to improve and reform China SCS, which depends on theoretical analysis, international experiences, and specific condition of China economy and society.