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Political Economy of Land Acquisition and Holdout

Author

Listed:
  • Sreeparna Saha

    (Deakin University)

  • Prabal Roy Chowdhury

    (Indian Statistical Institute, Delhi)

  • Jaideep Roy

    (Deakin University)

  • Prasad Bhattarcharya

    (Deakin University)

Abstract

Imperfections like bureaucratic corruption and extra-legal influence of various stakeholders – including political parties and civil society organisations – can reinforce one another and distort property rights. We characterise conditions under which holdout in land acquisition arises precisely because of the interplay between these imperfections. Among other results, we develop testable hypotheses suggesting that reducing bureaucratic corruption may in fact increase holdout if these imperfections are significant. In addition, small improvements in institutions can hurt economic surplus. Moreover, sellers are worse off when institutions fail to control excessive opposition, although the fact that there is an opposition to land acquisition benefits the sellers.

Suggested Citation

  • Sreeparna Saha & Prabal Roy Chowdhury & Jaideep Roy & Prasad Bhattarcharya, 2016. "Political Economy of Land Acquisition and Holdout," Discussion Papers 16-07, Indian Statistical Institute, Delhi.
    • Handle: RePEc:alo:isipdp:16-07
    as

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    References listed on IDEAS

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    More about this item

    Keywords

    Land acquisition; bureaucratic corruption; political rent-seeking; opposition; holdout;
    All these keywords.

    JEL classification:

    • K11 - Law and Economics - - Basic Areas of Law - - - Property Law
    • O25 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • R52 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Land Use and Other Regulations

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