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., the recording system, awards title to claimants over current possessors, whereas the Torrens registration system awards title to the current owner. In theory, the registration system maximizes property value, all else equal, but in practice, the systems differ depending on the risk of a claim and administrative costs. A natural experiment in Cook County, Illinois, where both systems have existed since 1897, allows a test of the theory. The results, based on commercial and industrial properties, reveal that parcels tend to self-select into the two systems based on the predictions of the theory.
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Bibliographic InfoPaper provided by University of Connecticut, Department of Economics in its series Working papers with number 2008-32.
Length: 25 pages
Date of creation: Aug 2008
Date of revision:
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More information through EDIRC
Land title system; property rights; recording system; Torrens system;
Other versions of this item:
- Miceli, Thomas J. & Munneke, Henry J. & Sirmans, C.F. & Turnbull, Geoffrey K., 2011. "A question of title: Property rights and asset values," Regional Science and Urban Economics, Elsevier, vol. 41(6), pages 499-507.
- 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
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-09-29 (All new papers)
- NEP-LAW-2008-09-29 (Law & Economics)
- NEP-URE-2008-09-29 (Urban & Real Estate Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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