Abstract:

From the perspective of economics of law，this paper studies the problems in the present city demolition system which is low in efficiency and weaken the credibility of government public power and thus generate new appeals.Besides，the great profits tend to breed corruption.The authors，therefore，hold a city demolition system led by both the government and the citizens involved will help to solve those problems.They also point out that demolition projects for public welfare and those for commercial purposes should be clearly defined and carried out in different ways so as to prevent demolition projects for commercial purposes from operating in the name of public welfare.

Key words: land retrieval right, house demolition, demolition for public welfare, demolition for commercial purposes, demolition led by both government and citizens involved, nail house