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Cost Allocation, Allocation of Votes and Wealth Transfer between Unit Owners |
LIU Sheng-Huan |
Huazhong Normal University, Wuhan, China |
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Abstract The paper deals with the issue of wealth transfer by applying the theory of new institutional economics and its way of analysis. It also discusses the issues of wealth transfer in the context where different cost allocation is combined with different voting rules and the effects of different levels of voting rules on wealth transfer between unit owners. It is assumed that the larger the difference between the revenue of unit owners and the number of his votes, the more chances that his property will be transferred. It is necessary to choose different voting and decisionmaking rules in the neighborhood where unit owners have houses in different sizes in order to avoid the wealth transfer and make the implementation of program efficiently.
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Received: 16 June 2008
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