A STUDY OF BORROWING BEHAVIOR FOR BUSINESS LICENSES IN CONSTRUCTION INDUSTRY

• Main Authors: LEE, YI-JU, 李宜儒
• Other Authors: WANG MING-TEH
• Format: Others
• Language: zh-TW
• Published: 1997
• Online Access: http://ndltd.ncl.edu.tw/handle/00298999402650585905

碩士 === 國立臺灣大學 === 土木工程學系 === 85 === With complex culture and environment, the construction industry has long existed various abnormal situations. The issue of borrowing behavior for business licenses was seldom discussed in literature. Therefore, this research studies this issue by interviewing firms to understand the situations of supply and demand, their types, and reasons behind the behavior. From the economic point of view, this study analyzes the process of how developers borrow the business licenses from contractors and then establishes an analytical model to describe how the developers determine if they will borrow contractor licenses or not. Besides, this study examines the possible effects and losses by the borrowing behavior. Related law regulations are also discussed. Borrowing behavior for business licenses in construction industry did make social losses. These losses include the lowering of construction quality, the damage to the rights and interests of owner and customer, the shortage of tax and so on. Although the developers and contractors take the benefit from the behavior, it will cause a great social loss, especially caused by the externalities of firms. As a result, the construction market cannot reach the economic efficiency, this study establishes a social loss function and, therewith, explains how we can minimize the social loss from the viewpoint of social optimality. At last, in order to solve the problems of borrowing behavior for business licenses, this study suggests that the government adopt some strategies to make the construction industry both equitable and efficient.