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A Theory of Urban Squatting and Land-Tenure Formalization in Developing Countries

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Author Info

  • Jan K. Brueckner

    ()
    (Department of Economics, University of California-Irvine)

  • Harris Selod

    ()
    (Paris School of Economics)

Abstract

This paper offers a new theoretical approach to urban squatting, reflecting the view that squatters and formal residents compete for land within a city. The key implication of this view is that squatters ``squeeze" the formal market, raising the price paid by formal residents. The squatter organizer, however, ensures that this squeezing is not too severe, since otherwise the formal price will rise to a level that invites eviction by landowners (defensive expenditures by squatter households also help to forestall eviction). Because eviction is thus absent in equilibrium, the model differs crucially from previous analytical frameworks, where eviction occurs with some probability.

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Bibliographic Info

Paper provided by University of California-Irvine, Department of Economics in its series Working Papers with number 070816.

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Length: 33 pages
Date of creation: Jan 2008
Date of revision:
Handle: RePEc:irv:wpaper:070816

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Keywords: Squatting; Formalization;

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References

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  1. Zenou, Yves, 2002. "How do Firms Redline Workers?," CEPR Discussion Papers 3209, C.E.P.R. Discussion Papers.
  2. Zenou, Yves & Boccard, Nicolas, 2000. "Racial Discrimination and Redlining in Cities," Journal of Urban Economics, Elsevier, vol. 48(2), pages 260-285, September.
  3. Hoy, Michael & Jimenez, Emmanuel, 1991. "Squatters' Rights and Urban Development: An Economic Perspective," Economica, London School of Economics and Political Science, vol. 58(229), pages 79-92, February.
  4. Jimenez, Emmanuel, 1984. "Tenure Security and Urban Squatting," The Review of Economics and Statistics, MIT Press, vol. 66(4), pages 556-67, November.
  5. Jean O. Lanjouw & Philip I. Levy, 2002. "Untitled: A Study of Formal and Informal Property Rights in Urban Ecuador," Economic Journal, Royal Economic Society, vol. 112(482), pages 986-1019, October.
  6. Jimenez, Emmanuel, 1985. "Urban squatting and community organization in developing countries," Journal of Public Economics, Elsevier, vol. 27(1), pages 69-92, June.
  7. Erica Field, 2007. "Entitled to Work: Urban Property Rights and Labor Supply in Peru," The Quarterly Journal of Economics, MIT Press, vol. 122(4), pages 1561-1602, November.
  8. Rafael Di Tella & Sebastian Galiani & Ernesto Schargrodsky, 2007. "The Formation of Beliefs: Evidence from the Allocation of Land Titles to Squatters," The Quarterly Journal of Economics, MIT Press, vol. 122(1), pages 209-241, 02.
  9. Duranton, Gilles, 2008. "From Cities to Productivity and Growth in Developing Countries," CEPR Discussion Papers 6634, C.E.P.R. Discussion Papers.
  10. Spinnewyn, Frans & Svejnar, Jan, 1990. "Optimal Membership, Employment, and Income Distribution in Unionized and Labor-Managed Firms," Journal of Labor Economics, University of Chicago Press, vol. 8(3), pages 317-40, July.
  11. Galiani, Sebastian & Schargrodsky, Ernesto, 2004. "Effects of land titling on child health," Economics & Human Biology, Elsevier, vol. 2(3), pages 353-372, December.
  12. Lall, Somik V. & Lundberg, Mattias K.A. & Shalizi, Zmarak, 2008. "Implications of alternate policies on welfare of slum dwellers: Evidence from Pune, India," Journal of Urban Economics, Elsevier, vol. 63(1), pages 56-73, January.
  13. Erica Field, 2005. "Property Rights and Investment in Urban Slums," Journal of the European Economic Association, MIT Press, vol. 3(2-3), pages 279-290, 04/05.
  14. Jha, Saumitra & Rao, Vijayendra & Woolcock, Michael, 2007. "Governance in the Gullies: Democratic Responsiveness and Leadership in Delhi's Slums," World Development, Elsevier, vol. 35(2), pages 230-246, February.
  15. Field, Erica Marie, 2005. "Property Rights and Investment in Urban Slums," Scholarly Articles 3634150, Harvard University Department of Economics.
  16. Robert M. Buckley & Jerry Kalarickal, 2006. "Thirty Years of World Bank Shelter Lending : What Have We Learned?," World Bank Publications, The World Bank, number 7061, October.
  17. Friedman, Joseph & Jimenez, Emmanuel & Mayo, Stephen K., 1988. "The demand for tenure security in developing countries," Journal of Development Economics, Elsevier, vol. 29(2), pages 185-198, September.
  18. Catherine Farvacque-Vitkovic & Lucien Godin & Hugues Leroux & Florence Verdet & Roberto Chavez, 2005. "Street Addressing and the Management of Cities," World Bank Publications, The World Bank, number 7342, October.
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Citations

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Cited by:
  1. Jan K. Brueckner, 2012. "Urban Squatting with Rent-Seeking Organizers," CESifo Working Paper Series 3920, CESifo Group Munich.
  2. O'Flaherty, Brendan & Sethi, Rajiv, 2010. "The racial geography of street vice," Journal of Urban Economics, Elsevier, vol. 67(3), pages 270-286, May.
  3. Eric Heikkila & Michael Lin, 2014. "An integrated model of formal and informal housing sectors," The Annals of Regional Science, Springer, vol. 52(1), pages 121-140, January.
  4. Duranton, Gilles, 2014. "Growing through cities in developing countries," Policy Research Working Paper Series 6818, The World Bank.

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