Urbanization and Property Rights
Since the industrial revolution, the economic development of Western Europe and North America was characterized by continuous urbanization accompanied by a gradual phasing-in of urban land property rights over time. Today, however, the evidence in many fast urbanizing low-income countries points towards a different trend of “urbanization without formalization”, with potentially adverse effects on long-term economic growth. This paper aims to understand the causes and the consequences of this phenomenon, and whether informal city growth could be a transitory or a persistent feature of developing economies. A dynamic stochastic equilibrium model of a representative city is developed, which explicitly accounts for the joint dynamics of land property rights and urbanization. The calibrated baseline model describes a city that first grows informally, with the growth of individual incomes leading to a phased-in purchase of property rights in subsequent periods. The model demonstrates that land tenure informality does not necessarily vanish in the long term, and the social optimum does not necessarily imply a fully formal city, neither in the transition, nor in the long run. The welfare effects of policies, such as reducing the cost of land tenure formalization, or protecting informal dwellers against evictions are subsequently investigated, throughout the short-term transition and in the long-term stationary state.
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dig-okr-10986234502024-08-07T20:13:17Z Urbanization and Property Rights Cai, Yongyang Selod, Harris Steinbuks, Jevgenijs STATE LAW INSTITUTIONAL REFORMS EMPLOYMENT INSTITUTIONAL CHANGE CITY SIZE SQUATTERS LAND TRANSACTIONS LAND MARKET LOW-INCOME HOUSEHOLDS PROPERTY RIGHT LOCAL AUTHORITIES URBANIZATION WAGES URBAN GROWTH EXHIBITS PARTICIPATION INCOME INTEREST UTILITIES VALUE LAWS BANK URBAN CONGESTION INDUSTRY CREDIT MACROECONOMICS INSTITUTIONAL QUALITY LARGE CITIES LOCAL GOVERNMENTS STRATEGIES REPORTS POLITICAL ECONOMY HOUSING HOUSEHOLD CAPITALIZATION LAND PROPERTY PROPERTY URBAN LAND PRICING HABITAT TRANSACTION COSTS RURAL URBAN MIGRATION CITIES URBAN POOR LAND TENURE URBAN DEVELOPMENT ECONOMICS LAND PRICES LAND TITLE GOVERNANCE POVERTY REDUCTION TAXATION SLUMS SETTLEMENTS PRESENT VALUE PUBLIC POLICY LAND STATES LAND TITLING INCOME ELASTICITY RISK URBAN ECONOMY TRANSPORT RURAL AREAS FIXED COSTS PRODUCTIVITY EXTERNALITIES MIGRATION BUILDING CRITERIA MARKETS LEGISLATION FEES INSTITUTIONAL FRAMEWORK LABOR GOVERNMENTS URBAN POPULATION LAND VALUE LAND MANAGEMENT REAL ESTATE FINANCE ECONOMIC CONDITIONS PUBLIC LAND USE LAND ADMINISTRATION LAND GRABBERS Since the industrial revolution, the economic development of Western Europe and North America was characterized by continuous urbanization accompanied by a gradual phasing-in of urban land property rights over time. Today, however, the evidence in many fast urbanizing low-income countries points towards a different trend of “urbanization without formalization”, with potentially adverse effects on long-term economic growth. This paper aims to understand the causes and the consequences of this phenomenon, and whether informal city growth could be a transitory or a persistent feature of developing economies. A dynamic stochastic equilibrium model of a representative city is developed, which explicitly accounts for the joint dynamics of land property rights and urbanization. The calibrated baseline model describes a city that first grows informally, with the growth of individual incomes leading to a phased-in purchase of property rights in subsequent periods. The model demonstrates that land tenure informality does not necessarily vanish in the long term, and the social optimum does not necessarily imply a fully formal city, neither in the transition, nor in the long run. The welfare effects of policies, such as reducing the cost of land tenure formalization, or protecting informal dwellers against evictions are subsequently investigated, throughout the short-term transition and in the long-term stationary state. 2015-12-18T20:01:45Z 2015-12-18T20:01:45Z 2015-11 Working Paper Document de travail Documento de trabajo http://documents.worldbank.org/curated/en/2015/11/25260752/urbanization-property-rights https://hdl.handle.net/10986/23450 English en_US Policy Research Working Paper;No. 7486 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank application/pdf text/plain World Bank, Washington, DC |
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Banco Mundial |
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DSpace |
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Estados Unidos |
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US |
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Bibliográfico |
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En linea |
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dig-okr |
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biblioteca |
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America del Norte |
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Biblioteca del Banco Mundial |
| language |
English en_US |
| topic |
STATE LAW INSTITUTIONAL REFORMS EMPLOYMENT INSTITUTIONAL CHANGE CITY SIZE SQUATTERS LAND TRANSACTIONS LAND MARKET LOW-INCOME HOUSEHOLDS PROPERTY RIGHT LOCAL AUTHORITIES URBANIZATION WAGES URBAN GROWTH EXHIBITS PARTICIPATION INCOME INTEREST UTILITIES VALUE LAWS BANK URBAN CONGESTION INDUSTRY CREDIT MACROECONOMICS INSTITUTIONAL QUALITY LARGE CITIES LOCAL GOVERNMENTS STRATEGIES REPORTS POLITICAL ECONOMY HOUSING HOUSEHOLD CAPITALIZATION LAND PROPERTY PROPERTY URBAN LAND PRICING HABITAT TRANSACTION COSTS RURAL URBAN MIGRATION CITIES URBAN POOR LAND TENURE URBAN DEVELOPMENT ECONOMICS LAND PRICES LAND TITLE GOVERNANCE POVERTY REDUCTION TAXATION SLUMS SETTLEMENTS PRESENT VALUE PUBLIC POLICY LAND STATES LAND TITLING INCOME ELASTICITY RISK URBAN ECONOMY TRANSPORT RURAL AREAS FIXED COSTS PRODUCTIVITY EXTERNALITIES MIGRATION BUILDING CRITERIA MARKETS LEGISLATION FEES INSTITUTIONAL FRAMEWORK LABOR GOVERNMENTS URBAN POPULATION LAND VALUE LAND MANAGEMENT REAL ESTATE FINANCE ECONOMIC CONDITIONS PUBLIC LAND USE LAND ADMINISTRATION LAND GRABBERS STATE LAW INSTITUTIONAL REFORMS EMPLOYMENT INSTITUTIONAL CHANGE CITY SIZE SQUATTERS LAND TRANSACTIONS LAND MARKET LOW-INCOME HOUSEHOLDS PROPERTY RIGHT LOCAL AUTHORITIES URBANIZATION WAGES URBAN GROWTH EXHIBITS PARTICIPATION INCOME INTEREST UTILITIES VALUE LAWS BANK URBAN CONGESTION INDUSTRY CREDIT MACROECONOMICS INSTITUTIONAL QUALITY LARGE CITIES LOCAL GOVERNMENTS STRATEGIES REPORTS POLITICAL ECONOMY HOUSING HOUSEHOLD CAPITALIZATION LAND PROPERTY PROPERTY URBAN LAND PRICING HABITAT TRANSACTION COSTS RURAL URBAN MIGRATION CITIES URBAN POOR LAND TENURE URBAN DEVELOPMENT ECONOMICS LAND PRICES LAND TITLE GOVERNANCE POVERTY REDUCTION TAXATION SLUMS SETTLEMENTS PRESENT VALUE PUBLIC POLICY LAND STATES LAND TITLING INCOME ELASTICITY RISK URBAN ECONOMY TRANSPORT RURAL AREAS FIXED COSTS PRODUCTIVITY EXTERNALITIES MIGRATION BUILDING CRITERIA MARKETS LEGISLATION FEES INSTITUTIONAL FRAMEWORK LABOR GOVERNMENTS URBAN POPULATION LAND VALUE LAND MANAGEMENT REAL ESTATE FINANCE ECONOMIC CONDITIONS PUBLIC LAND USE LAND ADMINISTRATION LAND GRABBERS |
| spellingShingle |
STATE LAW INSTITUTIONAL REFORMS EMPLOYMENT INSTITUTIONAL CHANGE CITY SIZE SQUATTERS LAND TRANSACTIONS LAND MARKET LOW-INCOME HOUSEHOLDS PROPERTY RIGHT LOCAL AUTHORITIES URBANIZATION WAGES URBAN GROWTH EXHIBITS PARTICIPATION INCOME INTEREST UTILITIES VALUE LAWS BANK URBAN CONGESTION INDUSTRY CREDIT MACROECONOMICS INSTITUTIONAL QUALITY LARGE CITIES LOCAL GOVERNMENTS STRATEGIES REPORTS POLITICAL ECONOMY HOUSING HOUSEHOLD CAPITALIZATION LAND PROPERTY PROPERTY URBAN LAND PRICING HABITAT TRANSACTION COSTS RURAL URBAN MIGRATION CITIES URBAN POOR LAND TENURE URBAN DEVELOPMENT ECONOMICS LAND PRICES LAND TITLE GOVERNANCE POVERTY REDUCTION TAXATION SLUMS SETTLEMENTS PRESENT VALUE PUBLIC POLICY LAND STATES LAND TITLING INCOME ELASTICITY RISK URBAN ECONOMY TRANSPORT RURAL AREAS FIXED COSTS PRODUCTIVITY EXTERNALITIES MIGRATION BUILDING CRITERIA MARKETS LEGISLATION FEES INSTITUTIONAL FRAMEWORK LABOR GOVERNMENTS URBAN POPULATION LAND VALUE LAND MANAGEMENT REAL ESTATE FINANCE ECONOMIC CONDITIONS PUBLIC LAND USE LAND ADMINISTRATION LAND GRABBERS STATE LAW INSTITUTIONAL REFORMS EMPLOYMENT INSTITUTIONAL CHANGE CITY SIZE SQUATTERS LAND TRANSACTIONS LAND MARKET LOW-INCOME HOUSEHOLDS PROPERTY RIGHT LOCAL AUTHORITIES URBANIZATION WAGES URBAN GROWTH EXHIBITS PARTICIPATION INCOME INTEREST UTILITIES VALUE LAWS BANK URBAN CONGESTION INDUSTRY CREDIT MACROECONOMICS INSTITUTIONAL QUALITY LARGE CITIES LOCAL GOVERNMENTS STRATEGIES REPORTS POLITICAL ECONOMY HOUSING HOUSEHOLD CAPITALIZATION LAND PROPERTY PROPERTY URBAN LAND PRICING HABITAT TRANSACTION COSTS RURAL URBAN MIGRATION CITIES URBAN POOR LAND TENURE URBAN DEVELOPMENT ECONOMICS LAND PRICES LAND TITLE GOVERNANCE POVERTY REDUCTION TAXATION SLUMS SETTLEMENTS PRESENT VALUE PUBLIC POLICY LAND STATES LAND TITLING INCOME ELASTICITY RISK URBAN ECONOMY TRANSPORT RURAL AREAS FIXED COSTS PRODUCTIVITY EXTERNALITIES MIGRATION BUILDING CRITERIA MARKETS LEGISLATION FEES INSTITUTIONAL FRAMEWORK LABOR GOVERNMENTS URBAN POPULATION LAND VALUE LAND MANAGEMENT REAL ESTATE FINANCE ECONOMIC CONDITIONS PUBLIC LAND USE LAND ADMINISTRATION LAND GRABBERS Cai, Yongyang Selod, Harris Steinbuks, Jevgenijs Urbanization and Property Rights |
| description |
Since the industrial revolution, the
economic development of Western Europe and North America was
characterized by continuous urbanization accompanied by a
gradual phasing-in of urban land property rights over time.
Today, however, the evidence in many fast urbanizing
low-income countries points towards a different trend of
“urbanization without formalization”, with potentially
adverse effects on long-term economic growth. This paper
aims to understand the causes and the consequences of this
phenomenon, and whether informal city growth could be a
transitory or a persistent feature of developing economies.
A dynamic stochastic equilibrium model of a representative
city is developed, which explicitly accounts for the joint
dynamics of land property rights and urbanization. The
calibrated baseline model describes a city that first grows
informally, with the growth of individual incomes leading to
a phased-in purchase of property rights in subsequent
periods. The model demonstrates that land tenure informality
does not necessarily vanish in the long term, and the social
optimum does not necessarily imply a fully formal city,
neither in the transition, nor in the long run. The welfare
effects of policies, such as reducing the cost of land
tenure formalization, or protecting informal dwellers
against evictions are subsequently investigated, throughout
the short-term transition and in the long-term stationary state. |
| format |
Working Paper |
| topic_facet |
STATE LAW INSTITUTIONAL REFORMS EMPLOYMENT INSTITUTIONAL CHANGE CITY SIZE SQUATTERS LAND TRANSACTIONS LAND MARKET LOW-INCOME HOUSEHOLDS PROPERTY RIGHT LOCAL AUTHORITIES URBANIZATION WAGES URBAN GROWTH EXHIBITS PARTICIPATION INCOME INTEREST UTILITIES VALUE LAWS BANK URBAN CONGESTION INDUSTRY CREDIT MACROECONOMICS INSTITUTIONAL QUALITY LARGE CITIES LOCAL GOVERNMENTS STRATEGIES REPORTS POLITICAL ECONOMY HOUSING HOUSEHOLD CAPITALIZATION LAND PROPERTY PROPERTY URBAN LAND PRICING HABITAT TRANSACTION COSTS RURAL URBAN MIGRATION CITIES URBAN POOR LAND TENURE URBAN DEVELOPMENT ECONOMICS LAND PRICES LAND TITLE GOVERNANCE POVERTY REDUCTION TAXATION SLUMS SETTLEMENTS PRESENT VALUE PUBLIC POLICY LAND STATES LAND TITLING INCOME ELASTICITY RISK URBAN ECONOMY TRANSPORT RURAL AREAS FIXED COSTS PRODUCTIVITY EXTERNALITIES MIGRATION BUILDING CRITERIA MARKETS LEGISLATION FEES INSTITUTIONAL FRAMEWORK LABOR GOVERNMENTS URBAN POPULATION LAND VALUE LAND MANAGEMENT REAL ESTATE FINANCE ECONOMIC CONDITIONS PUBLIC LAND USE LAND ADMINISTRATION LAND GRABBERS |
| author |
Cai, Yongyang Selod, Harris Steinbuks, Jevgenijs |
| author_facet |
Cai, Yongyang Selod, Harris Steinbuks, Jevgenijs |
| author_sort |
Cai, Yongyang |
| title |
Urbanization and Property Rights |
| title_short |
Urbanization and Property Rights |
| title_full |
Urbanization and Property Rights |
| title_fullStr |
Urbanization and Property Rights |
| title_full_unstemmed |
Urbanization and Property Rights |
| title_sort |
urbanization and property rights |
| publisher |
World Bank, Washington, DC |
| publishDate |
2015-11 |
| url |
http://documents.worldbank.org/curated/en/2015/11/25260752/urbanization-property-rights https://hdl.handle.net/10986/23450 |
| work_keys_str_mv |
AT caiyongyang urbanizationandpropertyrights AT selodharris urbanizationandpropertyrights AT steinbuksjevgenijs urbanizationandpropertyrights |
| _version_ |
1807155722770710528 |