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Do better property rights improve local income?: Evidence from First Nations' treaties

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  • Aragón, Fernando M.

Abstract

This paper examines the effect of an improvement in property rights on a local economy using the case of First Nations' modern treaties. These treaties are an important institutional reform that clarifies ownership of land and natural resources near Aboriginal communities. Using confidential micro-data, I find evidence of a positive impact of modern treaties on real income. The effect is driven by employment income and spreads across workers in industries not directly affected by the reform. I also find an increase in real wages and housing costs. The effects are similar in neighboring communities outside Indian reserves. These results are consistent with property right reforms creating a positive demand shock that affects the whole local economy. This is a yet understudied mechanism through which better property rights can generate positive local spillovers.

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  • Aragón, Fernando M., 2015. "Do better property rights improve local income?: Evidence from First Nations' treaties," Journal of Development Economics, Elsevier, vol. 116(C), pages 43-56.
    • Handle: RePEc:eee:deveco:v:116:y:2015:i:c:p:43-56
    DOI: 10.1016/j.jdeveco.2015.03.004
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    3. Adofu, Ilemona & Okwanya, Innocent & Adofu,Sophia Ojochogwu & Eraye, Micheal, 2024. "Land Tenure Insecurity and Agricultural Recovery: Evidence from Displaced Farmers in North-Central Nigeria," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 12(3), July.
    4. Donn. L. Feir & Maggie E. C. Jones & David Scoones, 2024. "When do nations tax? The adoption of property tax codes by First Nations in Canada," Public Choice, Springer, vol. 199(3), pages 285-318, June.
    5. Donn Feir & Rob Gillezeau & Maggie Jones, 2017. "The Slaughter of the North American Bison and Reversal of Fortunes on the Great Plains," Department Discussion Papers 1701, Department of Economics, University of Victoria.
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    More about this item

    Keywords

    Property rights; Institutions; Local development; First Nations; Treaties;
    All these keywords.

    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • P48 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies

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