There is no government intervention in this economy (Grant & Vidler, 2000, p. 19).
The free market system consists of four main categories of actors. They are “consumers, producers, owners of private property (land and capital) and government” (Economics, 1977). Each actor in the pure market economy is motivated their own self-interest and they take every decision based on their private gain. In this context we make an assumption of rationality. It is a very important assumption that considers that the market actors are rational in the sense that they are both consistent and transitive in the choices that they make. If a person chooses a basket of commodities ‘X’ over a basket of commodities ‘Y’ at a particular point of time, she would choose the same basket of commodities an instant later provided that there are not any alterations made in the baskets. Secondly, if a person chooses ‘X’ over ‘Y’ and ‘Y’ over ‘Z’, he would prefer ‘X’ over ‘Z’. It is also to be noted that a rational individual would want more of a normal good (increases consumption of which gives increased utility) than less of it. In the free market economy, any stability issue is resolved without external intervention and it is made possible through “consistent maximization of a well-ordered function, such as a utility or profit function” (Etzioni, 2010, p. 142) by the two main forces of the market; the consumers and the producers. According to the famous proposition by Adam Smith, an invisible hand works in the free market economy.
The housing system in the United Kingdom is a large and complex system and includes a range of relationships between the owners and occupiers of the homes. The houses might e occupied by the owners or might involve various rental tenures in the private sector including the “not-for profit and local authority sectors” (Diacon, Pattison & Vine, 2009, p. 6). This market consists of millions of existing ...
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(Housing Economics (Housing Studies) Essay Example | Topics and Well Written Essays - 3500 Words - 1)
“Housing Economics (Housing Studies) Essay Example | Topics and Well Written Essays - 3500 Words - 1”, n.d. https://studentshare.net/miscellaneous/566618-housing-economics-housing-studies.
Some of the differences that include are taxation, mobility, benefits, security of tenure, satisfaction and aspiration and effect on the global platform. Question (i) The proportion of households in tenure mix has changed drastically over the last hundred years.
In most countries, this social exclusion has mainly been contributed by private rented sector mainly through costs, accessibility, and discrimination. However, since the government cannot manage to provide adequate housing for every citizen, private rented sector has been seen, from another perspective, as the main conduit for promoting social inclusion in social housing.
In contrast, developing countries often charge higher taxes in order for meeting their rising fund needs. Housing is one of the major necessities on which every nation gives its primary focus. To be specific, adequate housing facility is one of the most potential determinants of a country’s overall growth.
Many authors have conducted researches to determine which sector is dominant in housing sector as well as to identify the primary reasons behind these changes. Some of the most renowned researched covering these aspects have been presented in the subsequent part of this paper.
Consequently, British households will benefit by a slight global warming. Because there are limited European studies conducted in this topic, comparisons are hard to find. Therefore, the results from this study can not be confirmed with certainty, or refused completely.
Every one in the community though understands the issues and problems with the conventional pattern of housing development, the much needed change still eluded the sector. The case study undertaken here illustrates various aspects of housing in a local community, the changes the sector have undergone in the recent years along with the challenges and issues experienced.
Over recent decades, Rutter and Latorre (2009) indicate that there has been a large reduction in social housing stock in many parts of the UK. This is due to existing tenants exercising their right to buy their properties, and a reduction in the building
Housing sector does not function as effectively as the society expects. Due to this, government is expected to interrupt to correct these disorganisation and to make sure that housing markets’ function in a better manner. This may require direct
To achieve such objectives, the report identifies the problems facing the Riverslake Housing Association by providing possible solutions to problems such as the provision of examples of good practices as seen in other similar organizations. Such solutions and examples are then applied within the SMART Plan section to formulate possible recommendations.
nt in the sector as it is meant to ensure increased income collection which is subject to the comfort of tenants among other stakeholders (Lister, Perry and Thornley, 2007). Riverslake Housing Association is one of the leading property management agencies in the country.
13 Pages(3250 words)Essay
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