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De Facto and De Jure Property Rights: Land Settlement and Land Conflict on the Australian, Brazilian and U.S. Frontiers

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  • Lee J. Alston
  • Edwyna Harris
  • Bernardo Mueller

Abstract

We present a general model of the interaction between settlement and the emergence of de facto property rights on frontiers prior to governments establishing and enforcing de jure property rights. Settlers have an incentive to establish de facto property rights to avoid the dissipation associated with open access conditions. The potential rent associated with more exclusivity drives the “demand’ for commons arrangements. As the potential rental stream from land increases due to enhanced scarcity there is a greater demand for more exclusivity beyond what can be sustained with commons arrangements. In some instances claimants will petition the government for de jure property rights to their claims – formal titles. In other instances it may be cheaper to acquire titles through fraudulent means. To the extent that governments supply property rights to those with first possession, land conflict will generally be minimal, though there may be political protests. But, governments face differing political constituencies and may not allocate de jure rights to the current claimants. Moreover, governments may assign de jure rights but not be willing to enforce the rights. This may generate potential or actual conflict over land depending on the violence potentials held by the de facto and de jure land claimants. We examine land settlement and land conflict on the frontiers of Australia, the U.S. and Brazil. We are particularly interested in examining the emergence, sustainability, and collapse of commons arrangements in specific historical contexts. Our analysis indicates that the emergence of demand driven de facto property rights arrangements was relatively peaceful in Australia and the U.S. where claimants had reasons to organize collectively. The settlement process in Brazil was more prone to conflict because agriculture required fewer collective activities and as a result claimants resorted to periodic violent self-enforcement. In all three cases the movement from de facto to de jure property rights led to potential or actual conflict because of insufficient government enforcement.

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Bibliographic Info

Paper provided by Centre for Economic Policy Research, Research School of Economics, Australian National University in its series CEPR Discussion Papers with number 607.

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Date of creation: May 2009
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Handle: RePEc:auu:dpaper:607

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Keywords: property rights; Australia; Brazil; United States;

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References

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Citations

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Cited by:
  1. Lee J. Alston & Bernardo Mueller, 2010. "Property Rights, Land Conflict and Tenancy in Brazil," NBER Working Papers 15771, National Bureau of Economic Research, Inc.
  2. Gerard Russo & Jaclyn R.K. Lindo & Sang-Hyop Lee & Rui Wang & Thamana Lekprichakul & Abdul Jabbar, 2012. "The Impact of State Children’s Health Insurance Program (SCHIP) Expansion on Health Insurance Coverage in Hawaii," Working Papers 201208, University of Hawaii at Manoa, Department of Economics.
  3. Castañeda Dower, Paul & Pfutze, Tobias, 2013. "Specificity of control: The case of Mexico's ejido reform," Journal of Economic Behavior & Organization, Elsevier, vol. 91(C), pages 13-33.
  4. Lawson-Remer, Terra, 2011. "Security of Property Rights for Whom?," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  5. Alan Dye & Sumner La Croix, 2012. "The Political Economy of Land Privatization in Argentina and Australia, 1810-1850," Working Papers 201207, University of Hawaii at Manoa, Department of Economics.
  6. Edwyna Harris, 2011. "Does franchise extension reduce short-run economic growth? Evidence from New South Wales, 1862-1882," Development Research Unit Working Paper Series 19-11, Monash University, Department of Economics.

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