Abstract

Since the beginning of reform and opening up, China's rapid economic growth has led to continuous increase of wealth. The development of the financial market makes citizens' income property income grow fast. Economic reform has brought factors of production such as land, stock, patent knowledge and so on gradually involved in the distribution of income, resulting in the increasing of property income. Since China's reform following the gradual reform process, subject to the relevant policy influence, the asset price volatility is more obvious than the developed countries. The fluctuation of asset prices directly affects the wealth allocation, so as to determine people's property income level. The“Twelfth Five-Year Plan”points out raising labor distribution ratio, making the condition to improve the residents'property income. Therefore, how to improve the residents'property income, and improve wealth allocation have become hotspot and difficult problems.

This book focuses on the effect of assets price fluctuation on residents'wealth allocation in the transformation period.

Firstly, it compares the household wealth allocation in different countries, then it establishes framework of the impact of asset price fluctuations on residents' wealth allocation. Based on portfolio theory and life cycle theory, it sets up a consumer asset allocation model. According to the international experience of the mature market economy, combined with China's experience in gradual transition, it analyzes the market economy development inadequacy, elements of imperfect market and“hidden rules”impact on resource allocation, analysis asset price fluctuation mechanism of the transition period, so as to establish the analysis framework. Secondly, the book lays on China's asset price fluctuation on residents' wealth distribution effect. By government dominant model of economic analysis, the book summarizes the transformation period of our country asset price fluctuation characteristic, and thus formed a unique system of income distribution, thereby affecting the residents'wealth allocation. Again, the book uses panel data regression analysis of gradual reform, assets price fluctuation on residents' property income distribution effect and wealth effect. Finally, it dwells on the improvement of the distribution of wealth, conclusions and policy recommendations based on the urbanization process.

The basic conclusion and innovation of this book embodied in the following six aspects.

（1）By analyzing fluctuation of asset price formation mechanism and characteristics of China's asset price in“emerging and transitional”periods, the book finds that the pricing mechanism has the remarkable non-market characteristics, main reason depending on land supply monopoly and market forces unequal（particularly remarkable in stock market and real estate market）, as well as a variety of hidden rules in resource allocation to the reverse influence of marketing. This manipulation of the pricing mechanism of assets price fluctuation has the remarkable enhancement. Further, advance elements of construction market and the perfection of capital market on the basis of system construction are key factors of promoting our country asset pricing mechanism. This is the breakthrough and development on the asset pricing theory with“emerging and transition”features.

（2）By analyzing real estate prices fluctuation in recent years, the book reveals the influence mechanism of the real estate price fluctuation to the distribution of national income. It finds that capital share of income and price fluctuations have a strong internal strengthening relations, the effect of elastic coefficient of area of the east area 1.06, mid area 0.94, the western region -0.10, which the east midlands capital income is relatively high and real estate investment at the situation very well. At the same time, real estate high profit further strengthens on capital-intensive industries and high profit industry investment, leading the capital income share rise further, not only further distortion of the capital and labor allocation relation, but also making the economic structure adjustment and economic growth mode transformation more difficult. Therefore, curb the rapid rise in prices is not only conducive to the adjustment of economic structure, but also help to optimize the structure of income distribution.

（3）It reveals the residents property income asymmetry impact of the house price and stock price volatility. Due to the difference of the market-oriented reforms, real estate price fluctuations on the property income is more obvious in urban residents than rural residents. From a structural point of view, the high-class residential price fluctuations on property income is stronger than ordinary residential; the impact of fluctuations in real estate prices in high -income groups is more obvious than the low-income groups, but less obvious impact on the lowest income groups. Therefore, the real estate price fluctuations on the property income of residents showed asymmetric characteristics. In the stock market, due to special issue, pricing, refinancing policy make the stock price more severe fluctuations. Different types of investors and wealth scale investor own different information, so the income showed asymmetry. The unilateral rise or unilateral down cycle, the magnitude of losses is greater than the magnitude of the gains, on the other hand, institutional investors gains greater than personal investors.

（4）This book also analyzes on wealth effect of assets price fluctuation and consumption behaviors, finding that the rising asset prices effect of wealth distribution inequality. Urban resident savings and real estate portfolio positive wealth effect is more obvious, rural residential real estate wealth effect is rather small. The stock price changes of the wealth effect in urban and rural between most of the cases are not significant; house and share prices rise on residents'consumption expenditure has the remarkable effect, but this effect in urban residents and rural residents as well as the property market development in different regions has obvious difference.

（5）It analyzes the causes of assets price fluctuation beyond other countries，finding that the government behavior on the volatility of asset prices role is adding fuel to the flames. At the same, because income allocation is more inclining to the government, it blocks growth of wealth of the residents. Therefore, fully playing a role in the market, reducing the government to asset prices and income distribution of adverse effects, contribute to the residents of wealth structure and optimization and consumption upgrade.

（6）Through the analysis of the case of the transformation of villages in China's urbanization process over the years, it reveals the government, villagers and real estate developers interests evolution. Based on the specific case, the subject interpretation of the new fiscal constraints and performance evaluation of incentive, the government gradually withdraws the land market development, then the village collective and rural residents gain more income from property through negotiations and consultations, leading the final multi-game win-win institutional arrangements. How to make an inventory of asset markets, the elimination of excessive asset price fluctuations, and to improve the urban and rural asset allocation is the key point in the post-reform period.