Backyarding
This paper explores the incentives for backyarding, an expanding category of urban land-use in developing countries that has proliferated South Africa. The theoretical model exposes the trade-off faced by the homeowner in deciding how much backyard land to rent out: loss of yard space consumption in return for a gain in rental income. Under common forms for preferences, the homeowner's own-consumption of yard space falls as land rent increases, causing more land to be rented to backyarders. With better job access for backyarders raising land rent by increasing their willingness-to-pay, the analysis then predicts that the extent of backyarding will be higher for parcels with good job access. This hypothesis is tested by combining a satellite- based count of backyard dwellings per parcel with job-access data. The empirical results strongly confirm the prediction that better job access increases the extent of backyarding.
| Main Authors: | , , |
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| Format: | Working Paper biblioteca |
| Language: | English |
| Published: |
World Bank, Washington, DC
2018-11
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| Subjects: | HOUSING, INFORMAL HOUSING, JOB ACCESS, LAND USE, RENTAL INCOME, URBAN HOUSING, |
| Online Access: | http://documents.worldbank.org/curated/en/491081541096912553/Backyarding-Theory-and-Evidence-for-South-Africa https://hdl.handle.net/10986/30842 |
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