Study on game decision of BOT financing model of public-rent housing

Abstract

It is an important measure to construct public-rent housing for our housing security system. Nowadays it is explored to induce civil capital into public-rent housing construction through BOT in a number of areas. In this paper an investment decision model about Government and civil capital is set up by game theoretical method and the relations between public-rent housing and real estate market, concision period and rent as decision variables. It theoretically indicates that it is hard to induce civil capital into construction of public-rent housing owning to prosperity of real estate market and lower return of public-rent housing. We suggest that Government should design incentive mechanism to induce civil capital into public-rent housing. © 2011 Springer-Verlag Berlin Heidelberg.