Housing Provident Fund System,House Price And Housing Welfare

Housing problem is an important problem associated with people's life,however,since 2003,house price in our country has been rising constantly.The high price has surely brought a heavy burden to people.Housing problem has become the focus of the government and scholar's attention.As an important part of China's housing security system,does housing provident fund system work in a proper role and what kind of impacts are made to the housing welfare of different groups in the society have been paid more and more attention.Aiming at the insufficiency of the previous research,this article will analyze housing provident fund system's impact on house price,and then it will analyze welfare effects of housing provident fund system on each group of the whole society more comprehensively.Based on the features of housing provident fund system,this article builds a theoretical model which depicts the mechanism that how housing provident fund system affects house price.This model shows that the greater the contribution of the system to the demand for housing is,or the smaller the elasticity of demand and supply of the housing market is,the greater the degree of housing provident fund system promoting house price is.This article uses the panel data of 55 cities in China from 2005 to 2011 to analyze the impact of housing provident fund system on house price,and then analyzes the welfare effects of housing provident fund system.The empirical outcomes show that housing provident fund system promotes house price significantly.If the system is canceled at present,house price will decline by 13.5%.Considering the unexpected effect,the actual contribution of housing provident fund system to buying houses is 25%and the system will make the urban residents without the system pay 13.5%more when buying houses.The article divided urban residents into eight groups according to the three dimensions included whether joining into housing provident fund system,whether having housing demand and the level of income.And this article analyzed welfare effects of housing provident fund system comprehensively based on the theory of welfare economics and the conclusion mentioned above.Relevant conclusions are as follows:First,housing provident fund system increases the housing welfare of the group who have joined into the system and have housing demand,and decreases the housing welfare of the group who have not joined into the system and have housing demand;Second,housing provident fund system isn't a Pareto improvement because it decreases the housing welfare of the group who have not joined into the system and have housing demand;Third,housing provident fund system leads to the inequality obviously that middle and low income groups who haven't joined into the system and don't have housing demand support the high income groups who have joined into the system and have housing demand.