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Reassessing the interaction between investment and tenure uncertainty

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  • ROBINSON, ELIZABETH J. Z.

Abstract

A diverse body of empirical literature recognizes that investment can influence tenure security, yet this phenomenon has rarely been examined analytically. This paper develops a theoretical model that demonstrates explicitly conditions under which the probability of eviction is endogenous to investment undertaken on illegally encroached land. By accommodating explicitly the government's objective function and its ability to commit credibly to an eviction policy, the model reveals why both those farmers who under-invest, and those who raise their investment levels to improve tenure security, may be behaving rationally. Indeed, both types of behaviour are accommodated within a single model.

Suggested Citation

  • Robinson, Elizabeth J. Z., 2005. "Reassessing the interaction between investment and tenure uncertainty," Environment and Development Economics, Cambridge University Press, vol. 10(2), pages 143-157, May.
    • Handle: RePEc:cup:endeec:v:10:y:2005:i:02:p:143-157_00
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    Cited by:

    1. Chris D. Arnot & Martin K. Luckert & Peter C. Boxall, 2011. "What Is Tenure Security? Conceptual Implications for Empirical Analysis," Land Economics, University of Wisconsin Press, vol. 87(2), pages 297-311.
    2. Stickler, M. Mercedes & Huntington, Heather & Haflett, Aleta & Petrova, Silvia & Bouvier, Ioana, 2017. "Does de facto forest tenure affect forest condition? Community perceptions from Zambia," Forest Policy and Economics, Elsevier, vol. 85(P1), pages 32-45.
    3. Fenske, James, 2011. "Land tenure and investment incentives: Evidence from West Africa," Journal of Development Economics, Elsevier, vol. 95(2), pages 137-156, July.
    4. Ma, Meilin, 2023. "Interdependent investments in attached and movable assets under insecure land rights," China Economic Review, Elsevier, vol. 77(C).
    5. McGranahan, Gordon, 2015. "Realizing the Right to Sanitation in Deprived Urban Communities: Meeting the Challenges of Collective Action, Coproduction, Affordability, and Housing Tenure," World Development, Elsevier, vol. 68(C), pages 242-253.
    6. Konrad, Kai A., 2017. "Large investors, regulatory taking and investor-state dispute settlement," European Economic Review, Elsevier, vol. 98(C), pages 341-353.
    7. Alemu Mekonnen, 2009. "Tenure Security, Resource Endowments, and Tree Growing: Evidence from the Amhara Region of Ethiopia," Land Economics, University of Wisconsin Press, vol. 85(2), pages 292-307.
    8. Laiyou Zhou & Hua Lu & Jinlang Zou, 2023. "Impact of Land Property Rights Security Cognition on Farmland Quality Protection: Evidence from Chinese Farmers," Land, MDPI, vol. 12(1), pages 1-14, January.

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