The Informal City
This paper proposes a theory of urban land use with endogenous property rights. Socially heterogeneous households compete for where to live in the city and choose the type of property rights they purchase from a land administration which collects fees in inequitable ways. The model generates predictions regarding sorting and spatial patterns of informality consistent with developing country cities. It also highlights non-trivial effects of land administration reforms in the presence of pecuniary externalities, possibly explaining why elites may have an interest in maintaining inequitable land administrations that insulate them from competition for land from the rest of the population.
| Main Authors: | , |
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| Format: | Working Paper biblioteca |
| Language: | English |
| Published: |
World Bank, Washington, DC
2018-06
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| Subjects: | LAND MARKETS, LAND USE, PROPERTY RIGHTS, LAND ADMINISTRATION, TENURE SECURITY, MULTIPLE SALES, URBAN LAND USE, INEQUITY, |
| Online Access: | http://documents.worldbank.org/curated/en/393141529516276247/The-informal-city https://hdl.handle.net/10986/29935 |
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| Summary: | This paper proposes a theory of urban
land use with endogenous property rights. Socially
heterogeneous households compete for where to live in the
city and choose the type of property rights they purchase
from a land administration which collects fees in
inequitable ways. The model generates predictions regarding
sorting and spatial patterns of informality consistent with
developing country cities. It also highlights non-trivial
effects of land administration reforms in the presence of
pecuniary externalities, possibly explaining why elites may
have an interest in maintaining inequitable land
administrations that insulate them from competition for land
from the rest of the population. |
|---|