Is High Housing Price the Responsibility of the Government?
- DOI
- 10.2991/icpel-17.2017.6How to use a DOI?
- Keywords
- High housing prices, Game, Land leasing
- Abstract
Nearly 20 municipal governments have issued a house purchase limitation or purchase of upgrades to control housing prices rose too fast. Is it that the high house price is the responsibility of the government? This paper constructs the game model to answer the question. The study obtains the government to choose the latter condition under the two kinds of decision making, which is to maximize the financial income and maximize the social welfare. It also analyzes the policy implications of the land price and the real estate tax rate in order to achieve the stated goal. The study found that the tax rate is greater than the entire social welfare maximization of the real estate tax rate when the government does not consider the interests of real estate developers. When the optimal land leasing that is considered the social welfare maximization by the government is less than or equal to the land leasing without considering the interests of real estate developers land leasing, the government should reduce the collection of land leasing to increase the interests of real estate developers and lower tax rates to increase the interests of consumers. On the contrary, the government should increase the land leasing fee by increasing the land transfer to increase the interests of consumers and higher tax rates to increase government revenue.
- Copyright
- © 2017, the Authors. Published by Atlantis Press.
- Open Access
- This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).
Cite this article
TY - CONF AU - Xuefeng Zhang PY - 2017/07 DA - 2017/07 TI - Is High Housing Price the Responsibility of the Government? BT - Proceedings of the 2017 2nd International Conference on Politics, Economics and Law (ICPEL 2017) PB - Atlantis Press SP - 21 EP - 24 SN - 2352-5428 UR - https://doi.org/10.2991/icpel-17.2017.6 DO - 10.2991/icpel-17.2017.6 ID - Zhang2017/07 ER -