A study on the principal-agent relationship, structure of property rights,and the contractual relationship of rights transformation system for urban renewal

• Main Authors: Cho, Hui Hua, 卓輝華
• Other Authors: 楊松齡
• Format: Others
• Language: zh-TW
• Published: 2010
• Online Access: http://ndltd.ncl.edu.tw/handle/71024435793902948760

博士 === 國立政治大學 === 地政研究所 === 99 === In the process of rights transformation of urban renewal, the relationships between land owners and the implementers are the typical Principal-Agent Relationship in modern economic activities. Based on the related rights and obligations under the regulations of urban renewal, land owners and the implementers execute urban renewal business. Due to the differences of asymmetric information, inconsistent goals, and risk preference, the decision-making and/or actions of implementers based on the opportunism, will often unfavorable to the benefits of land owners. Therefore, the problem of Principal-Agent Relationship arises that increases agent cost. Both sides cannot generate the foundation of highly mutual trust, and thus creates the major reason of delaying and inefficiency for urban renewal. This paper studies and analyzes the Principal-Agent Relationship of both land owners and the implementers from both sides with their interaction of contract under unban renewal regulation mechanism, and further from the land owners perspective to design ways of monitoring to protect rights and benefits of land owners, to facilitate the implementation of urban renewal business. When the land owners and the implementers organize as a「Production Team」on a very urban renewal unit, the land owners initially hold stronger control rights on both proposing step and agreement step; along the implementers hold agreement letters exceeding the official threshold of urban renewal regulations, they will control better execution rights, and the landowners hold weaker surveillance control rights. The current value allocation of rights transformation for urban renewal employs common sharing of expenses with the implementers. After deducting the common sharing of the discounted price substitute payment of the land and buildings after the rights transformation, the remaining lands and buildings shall be allocated to the original landowners according to the rights value proportion before each piece of land rights was transformed. In so doing, the land owners obtain most of the residual claim. Under such separation of the control rights and the residual claim, whether the value allocation of the rights transformation is as suitable arrangement for property rights? Will it be the incentives to the urban renewal participants? Whether it will facilitate the efficiency of urban renewal promotion? These are the main points of the analysis of this paper. Land owners and the implementers with the same Renewal Unit retain a short-term and once-for-all cooperative nature. According to the regulations of current Urban Renewal Act, both parties of the transaction by signing an agreement as the key contract of implementing urban renewal business. After signing up the contract, due to the different ratio of specific investment input by both sides of the transaction, the initial contract thus normally has been delaying or doubtfully signed. Even worse, after eventually signing the contract, there are still uncertain disputes on rights and obligations. Via the thoughts of Incomplete Contracts Theory, this paper not only analyzes the contractual relationship and the specific investment relationship of land owners and the implementers, but also recommends a new transaction contract model to decrease the opportunism behaviors of both sides, and further more, to facilitate the implement of urban renewal business.