A question of title: Property rights and asset values
AbstractThis paper examines the impact of land title systems on property values. The predominant system in the U.S. and a few other countries, the recording system, awards title to claimants over current possessors, whereas the predominant system throughout most of the world, the registration system, awards title to the current possessor. The theory illustrates that the title system effect on asset value depends on property-specific factors like the risk of a claim and title system characteristics like transactions costs. A natural experiment in Cook County, Illinois, where both systems existed side-by-side from 1897 through 1996, allows a test of the theory. The evidence for commercial and industrial properties reveals that parcels tend to self-select into the two systems as expected with registration enhancing value once the self-selection effects are removed.
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Bibliographic InfoArticle provided by Elsevier in its journal Regional Science and Urban Economics.
Volume (Year): 41 (2011)
Issue (Month): 6 ()
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Web page: http://www.elsevier.com/locate/regec
Land title system; Property rights; Recording system; Torrens system;
Other versions of this item:
- Thomas J. Miceli & Henry J. Munneke & C. F. Sirmans & Geoffrey K. Turnbull, 2008. "A Question of Title: Property Rights and Asset Values," Working papers 2008-32, University of Connecticut, Department of Economics.
- K11 - Law and Economics - - Basic Areas of Law - - - Property Law
- P14 - Economic Systems - - Capitalist Systems - - - Property Rights
- R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
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