Now the house price is reasonable, because from an economic point of view, turning a commodity into money is the most thrilling leap. The house in the property market has completed this jump, indicating that its price is reasonable. For many people, I am afraid that they will be scolded when they see such a statement. They think that such officials and experts are really worthy of criticism, and if they dare to say such things, they will certainly be able to bear them. However, there are still many such people. Some time ago, many experts frequently made outrageous remarks, citing the high housing prices in China as examples, such as "fiancee theory", "mother-in-law theory" and "parents theory". In a word, they all owe the brilliant contribution of the real estate industry to ordinary people. Needless to say, the official so-called "reasonable housing price theory" does look like that at first glance, because people are engaged in economics and can only analyze problems from the perspective of economics, which is quite reasonable. Yes, if the current housing price is unreasonable, how can anyone buy a house and how can developers live? It seems that this house price is still affordable, which shows that it is reasonable. The root of the problem lies in this "economic angle" and this so-called "commodity", which reveals the big secret of the current high housing prices in China and points out the crux of the high housing prices in China. It is precisely because our government regards housing as a commodity, and analyzes, studies and makes decisions from the perspective of economics. Of course, we can't get out of the strange circle of high housing prices. Because developers, corrupt officials, some interest groups and even the government can get economic benefits from this economic perspective, how can they put their minds on the housing of ordinary people? Why do you say that? Because housing has two basic attributes: first, the land it is attached to is very special and cannot be replaced by ordinary goods. It is a special and limited resource, which cannot be viewed simply from the perspective of economics. Second, housing is a basic necessity for human survival, one of the basic needs of human beings, and should be the minimum livelihood product provided by the government. On the contrary, the government should analyze housing from a sociological perspective rather than an economic perspective, and should regard housing as a necessity for people's livelihood rather than a commodity. Therefore, we are now arguing about the past, and the most important thing is to change our concepts. If the concept is wrong, the direction is wrong. What kind of reform is empty talk, and the "dream of living in peace" of ordinary people may also be an illusion. To solve this problem, we should firmly establish Scientific Outlook on Development and adhere to the people-oriented principle. Only in this way can we solve any problems. The economic analysis of the relationship between land price and house price is of great significance for the government to macro-control the real estate market. This paper analyzes the relationship between land price and house price from the perspective of economics. Firstly, the paper analyzes the causal relationship between land price and house price from the perspective of supply, demand and the transformation of supply and demand in the process of operation. Secondly, the mathematical relationship between land price and house price is discussed. Finally, the corresponding countermeasures are put forward for the government to macro-control the real estate market. In April of 20001year, the State Council's Notice on Strengthening the Management of State-owned Land Assets clearly pointed out: "In order to enhance the government's ability to regulate and control the land market, local governments with conditions should try out the system of purchasing and reserving construction land." In the process of land acquisition and reserve, many cities began to strictly limit the scope of agreed land use and conduct bidding and auction of land use rights. Compared with the agreed land, the price of land use right has increased. To this end, the construction department and real estate developers complain that the land price is too high, which affects the real estate price; Many residents also blame high land prices for high housing prices and inability to buy a house. At the same time, the land department said that the high land price was caused by soaring housing prices. Therefore, only by in-depth analysis of the relationship between house price and land price can we understand the mutual influence between house price and land price and judge whether the land price is too high. From the perspective of economics, this paper discusses the relationship between land price and house price from two aspects: causality and mathematical relationship, and according to the analysis results, puts forward corresponding countermeasures for the government to carry out macro-control on the real estate market. A causal relationship between land price and house price The explanation of the causal relationship between land price and house price is actually to answer whether high house price leads to high land price or high land price leads to high house price. The answer to this question should be analyzed from different angles of demand and supply and market operation. 1. From the demand point of view, the rise of house prices has led to the rise of land prices. The essence of land price and house price is a kind of property right price, which is determined by the relationship between supply and demand. The difference between the two is that under the current situation in China, the land price determined by the land market is more inclined to a demand price. Because the natural supply of land lacks elasticity, its economic supply is limited by natural supply and lacks elasticity; In addition, land supply is monopolized by the government. Therefore, in this case, the land price is mainly determined by the demand side. When the demand rises, the land price will rise, and when the demand falls, the land price will fall. The house price in the incremental market depends not only on the demand but also on the supply price. Because the supply of incremental real estate is different from the simple land supply (no production cost), it is a production process, and it needs to compensate various expenses in the production process through the sales price to obtain reasonable profits in order to maintain the reproduction process. Therefore, as the supply price, the house price in the incremental market is both the price that the buyer is willing to buy and the price that the seller is willing to sell. Further analysis shows that the land price as demand price is actually caused by derivative demand, that is, the demand for land products leads to the demand for land, and the most famous explanation in this regard is "corn legal paradox". [1]1800, Britain issued the corn laws to restrict the import of grain, which led to an increase in domestic demand for corn. Figure 1 shows the influence of corn law on corn market and land market. ① Corn market: The corn method moves the demand curve from d 1 to d2, the domestic corn price rises from P 1 to P2, and the corn yield increases from C 1 to C2. (2) Land market: The increase of domestic corn production leads to the increase of land demand, and the land demand curve rises from D 1 to D2. Because the price elasticity of land supply is very small (it is assumed that the land supply is completely inelastic in the figure), the increase of land demand leads to the increase of land price from R 1 to R2. The "paradox of corn law" shows that the high land price is due to the high price of corn, and the corn law has increased the price of corn, which has stimulated the production of corn in China and the land demand for planting corn. Due to the limited land resources, landlords raised land prices to meet the demand for land. Therefore, the high land price is the result of the high corn price, not the reason for the high corn price. When the "corn legal paradox" is applied to the urban real estate market, we can draw the conclusion that high housing prices stimulate land demand, and the low price elasticity of land supply leads to the rise of land prices, that is, from the perspective of demand, high land prices are the result rather than the cause. Moreover, the regional differences in land prices also stem from the differences in local housing prices, that is, different cities have different land prices due to different demand for real estate [2]. As shown in Figure 2, the incremental real estate demand of 1 city is much greater than that of 2 cities, resulting in its house price being much higher than that of 2 cities. In various regions, due to the openness and competitiveness of the market, the difference between the construction and installation costs and the profits of developers is very small, so it can be considered that the difference in land prices is mainly reflected by the difference in housing prices. In a word, in any city, the increase of incremental real estate demand leads to the increase of land demand, and the price elasticity of land supply is small, which leads to the increase of land price. Therefore, from the perspective of demand, land price is mainly a demand price. At the same time, high land prices are only the result, not the cause. 2. From the supply point of view, the rise of land price is a factor leading to the rise of house price. In the incremental real estate market, real estate is a production product, so the house price is not only the demand price, but also the supply price. In real life, this is mainly manifested in the fact that when there is downward pressure, the change of house prices is very typical, that is, when the market is weak, the first thing to reduce is the supply (developers no longer invest in development and construction funds), not the price [3]. Because from the formation of housing prices, there is land price first, and then the final housing price is formed after a construction cycle. In the process of real estate development, because the development and operation of land is the beginning and foundation of the whole real estate economic activity, developers always obtain the land use right first, and then they can develop and operate houses, that is, land prices are formed first, then housing construction costs are generated, and finally incremental real estate cost costs (including reasonable profits) are formed. This cost price finally formed the real transaction price of incremental real estate through the relationship between supply and demand in the market at that time, which was generally higher than its cost price. As a result, the rise of land price has further promoted the rise of house prices, but at this time, land prices and incremental real estate prices are not at the same time, but have gone through a real estate construction cycle, that is, from the perspective of supply, land prices are one of the costs of house prices, and the rise of land prices is the factor leading to the rise of house prices. 3. In the process of real estate market operation, the conversion of land price and house price is the signal of market supply and demand, and land price and house price reflect the supply and demand relationship of land market and real estate market respectively. In the whole real estate market operation process, the transformation of land price and house price is reflected in the interaction between land market and real estate market. As shown in Figure 3, Quadrant I and Quadrant III are real estate market (referring to incremental real estate market) and land market respectively. The interaction between supply and demand in the two markets determines the size of house prices and land prices. High house price (house price I) represents strong demand in the real estate market (see quadrant I). When the price is higher than the cost price of real estate products, the demand for real estate products will be formed; When the vacant houses in the market cannot meet their demand, the demand for real estate products will be transformed into the demand for land through the function of floor area ratio (see quadrant 2); The developer will decide the demand price (land price I) of the land to be developed according to the price of the incremental market at this time. When the demand price of land is higher than the supply price of land, the transaction price of land (land price II) is determined by the relationship between supply and demand in the land market, and new land is developed (see quadrant III). At this time, through the development process of real estate projects, land price is converted into a new incremental price of real estate (house price II), and land increment is converted into an incremental price of real estate (see quadrant IV). When the house price II as the supply price is less than or equal to the demand price of the house at that time, a transaction occurs in the real estate market. The house price I shown in Figure 3 is equal to the house price II, indicating that the incremental real estate market and the land market have reached an equilibrium state, which is only a theoretical demonstration; In the actual market operation process, house price I and house price II can never be equal, and the real estate market will always fluctuate. Therefore, from the transformation process of land price and house price, it can be seen that land price and house price are determined by the supply and demand of land market and real estate market respectively. In the process of land price and house price conversion, there are two house prices-house price I and house price II and two land prices-land price I and land price II, which are the demand price and supply price of houses and land respectively. In the actual market, land price is mainly a demand price (land price I), which is greatly influenced by house price I. When house price I rises, land price I will also rise. The land department said that "land price is determined by house price, and high house price has nothing to do with land price" is considered from this angle. House price is both the demand price and the supply price (house price II). Land price two is one of its costs, and the rise of land price two will definitely lead to the rise of house price two. Therefore, developers and the public believe that "Beijing's high housing prices are caused by high land prices." These two views only see one aspect of the relationship between land price and house price. In fact, the rise and fall of land price and house price were determined by the supply and demand of land market and real estate market at that time, not by house price, nor by land price. In the final analysis, the rise of land price and house price is caused by the development of social economy and the increase of demand for housing and land. Therefore, generally speaking, it is one-sided that high housing prices decide high land prices, or that high land prices decide high housing prices. The causal relationship between house price and land price should be analyzed from different angles and at different times. The mathematical relationship between land price and house price In the causal analysis of land price and house price, there are two house prices and two land prices, which represent the process of demand conduction and supply conduction respectively. No matter from which process, the main components of house prices are land price, construction cost and various taxes (including management fees, sales expenses, interest, taxes and reasonable profits) [4]. Let P represent the house price (RMB/m2 construction area), PL represents the land price (RMB/m2 land area), C represents the construction and installation cost (RMB/m2 construction area), γ represents the rate (%) of all taxes and fees (including management fees, sales expenses, interest, taxes and reasonable profits), and F represents the floor area ratio (%). Firstly, the land price PL (yuan/square meter land area) is converted into the floor price PL0 (yuan/square meter building area), and the formula is: (1) Secondly, the expression of incremental real estate price is obtained according to the meaning of incremental real estate price: (2) Finally, the formula (1) is substituted into the formula (2), which can be arranged as follows: () If A and B are Thirdly, due to the limitation of social technology level and sustainable development conditions, the adjustment of Jian 'an cost and floor area ratio is limited. Therefore, the tax rate should be the main entry point for the government to regulate the relationship between land price and house price. Third, the policy suggests that the land market is the leader in the development of the real estate market. Through scientific regulation of the land market, the government can coordinate the development of the whole real estate market. Through the discussion of the relationship between land price and house price, the relationship between land market and real estate market is established. From the analysis of the relationship between land price and house price, we can get three inspirations related to land market regulation: 1. Land price is determined by the market and should not be used as an indicator of direct government regulation. From the transformation of land price and house price, we can see the decision process of land price: land price ⅰ is determined by the current house price (house price ⅰ), which reflects the demand of the current land transfer market; Land price II is formed by the supply and demand relationship in the current land market, which determines the supply level of the next house price (house price II). Here, no matter what kind of land price is determined by human factors. Therefore, the land price is determined by the internal operation of the real estate market. To control the land transfer market, land price should not be a direct control factor, but should be determined by the market mechanism. Therefore, in the process of land transfer, we should try our best to adopt the auction method that best reflects the market situation. 2. The amount of land transfer is a direct indicator to regulate the land transfer market and the whole real estate market. The land price II reflecting the supply level is determined by the amount of land sold. The land transfer amount is the current land supply level, and its size is determined by the land price I; Moreover, the operation of the new cycle of the whole real estate market is determined by the land price II. Therefore, the amount of land transfer is related to the supply and demand of the whole real estate market, and it is the source of the real estate market operation in the new cycle. Therefore, the amount of land transfer is a direct factor to regulate the land transfer market and even the whole real estate market. 3. The quantity of land transfer depends on the market situation. From the transformation process of land price and house price, it can be seen that the land transfer amount is determined by the land price I reflecting the market demand level, not by people at will. If the level of land price I in the early stage is much higher than that of land price II, which reflects the strong demand for land in the market, it is necessary to increase the amount of land sold to stabilize the rise of land price. On the other hand, if the level of the previous land price I is much lower than that of the land price II, it is necessary to reduce the amount of land sold to prevent the land price from falling. In short, through the analysis of the causal relationship between land price and house price, we can draw the following conclusions: the size of land price is determined by the real estate market itself, and the main control index for the government to regulate the land transfer market should not be land price, but land transfer quantity; Moreover, the amount of land transfer fees should also be adjusted according to market conditions, and it cannot be decided subjectively. Through the analysis of the quantitative relationship between land price and house price, it can be concluded that there is a linear positive correlation between land price and house price, and the main factors affecting the relationship between them are tax rate, construction and installation cost and floor area ratio. Adjusting the tax rate can be used as the main means to adjust the relationship between land price and house price.