An Innovative Model for the Budget Subsidy to Economical and Decent Housing in China

摘要

This paper brings forth an innovative model of budget subsidy to economical and decent housing based on an analysis of the dilemma of the current subsidy system.It is a two-way subsidy model with concrete methods to grant allowances.Minute comparisons are made between the economic efficiency of the proposed model and that of the current one by the use of an economic model analysis,and between the different effects of the two subsidy models on the two important market participators from the perspective of equity.Finally,the paper analyzes the significance of the new model when it is put into practice.It is the author's opinion that the new model needs fewer subsidy and thus has comparatively higher efficiency in macroeconomic control; and that it is much fairer to both the consumers and builders.The adoption of the new model is bound to play an important role in promoting the reform of economic and decent housing system and to make contribution to building a harmonious society in China.