The Rental Substitution Effect and Welfare Comparisons in Urban Housing Security System

Abstract:

A bilevel programming model, in which the government could maximize its efficiency and the vulnerable housing group could maximize its utility, was constructed under the market-cleaning assumption in urban housing security, and then the optimal decision by vulnerable housing groups is discussed in government’s price for affordable housing with property right, and the existence of the optimal decision by consumers and government is proved, respectively. And at the same time, the constructed bilevel model is solved through the use of the smoothing method. Finally, the bilevel programming model is constructed under the uncertainty and the non-market-cleaning accordingly. The conclusion shows that it is reasonable to maximize consumer welfare and the efficiency of government in urban housing security system, and it makes recommendations for government decision-making accordingly.

• Periodical: Applied Mechanics and Materials (Volumes 174-177)
• Pages: 3513-3518
• DOI: https://doi.org/10.4028/www.scientific.net/AMM.174-177.3513
• Online since: May 2012
• Authors: Zhi Qing Li, Jin Xin Tian, Yu Ying Cui
• Keywords: Bilevel Programming Model, Rental Substitution Effect, Urban Housing Security System, Welfare Comparisons

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