Abstract：This paper introduces the concept of decomposing housing ownership into two fundamental components : consumption and investment . When purchasing a home,most households wouldconsider both functions :if the house provides satisfactory shelter for thefamily and if it is likely toappreciatein value .We show that these two functions have conflicting natures and elaborate that such a conflict can exacerbate housing bubbles . The″full-bundle-of-right″l egal concept implemented in current system requires the bundling of these two conflicting functions in homeownership,which forbids homeowners to choose one or another . This manmade bundling system not only causes inefficiency in utilizing scarce housing resource but also directly contributed to the boom and bust of housing cycle . For example,the expected high house price growth rate,low consumption cost,high leverage financing,would increase the demand of houseinvestment,which would lead to housing boomand housing bubble . While the traditional housing subsidy programs for lower-income people do not have ability to distinguish the consumers with investors,which leads to not only Pareto inefficiency but also severe consequence of bubble burst . We demonstrate that a fundamental way of solving the housing bubble problemis to separate the investment function from the housing consumption function . Using Home Participation Appreciation Note as an example tool of a home consumption finance system stripped of the investment function,we analyzed the housing affordability and sustainability from the homeowner's perspective . The simulation results indicate similar financial engineering tool can effectively improve the household home affordability,control mortgage credit risk,reduce the possibility of housing bubble,and mitigate the impact of housing bubble to the supply and demand of housing consumption .
［美国］杨太乐［美国］刘峰 林晨. 隔离房地产泡沫风险----基于住房增值参与证券（HAPN）的设计模拟[J]. 浙江大学学报(人文社会科学版), 2013, 43(1): 31-42.
Tyler T .Yang Liu Feng Lin Chen. Isolating Bubble Impacts from the Housing Finance System :The Financial Innovation of Home Appreciation Participation Notes. , 2013, 43(1): 31-42.