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Squatting, eviction and development

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  • Turnbull, Geoffrey K.

Abstract

This paper explains both squatting and preemptive eviction by landowners within the context of incomplete land markets. The model shows that squatting is not inevitable in incomplete property markets; instead, it arises from optimal landowner decisions not to fully exercise property rights. The analysis explains why squatters' housing investments and owners' preemptive eviction rates tend to be higher than efficient and why eviction rates for open property are inefficiently high. It also examines informal land markets comprising potential squatters and owners and shows why they need not fully resolve inefficient squatter investment and landowner eviction decisions.

Suggested Citation

  • Turnbull, Geoffrey K., 2008. "Squatting, eviction and development," Regional Science and Urban Economics, Elsevier, vol. 38(1), pages 1-15, January.
  • Handle: RePEc:eee:regeco:v:38:y:2008:i:1:p:1-15
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    References listed on IDEAS

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    1. 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.
    2. de Meza, David & Gould, J R, 1992. "The Social Efficiency of Private Decisions to Enforce Property Rights," Journal of Political Economy, University of Chicago Press, vol. 100(3), pages 561-580, June.
    3. Jimenez, Emmanuel, 1985. "Urban squatting and community organization in developing countries," Journal of Public Economics, Elsevier, vol. 27(1), pages 69-92, June.
    4. Matthew Baker & Thomas Miceli & C. F. Sirmans & Geoffrey K. Turnbull, 2001. "Property Rights by Squatting: Land Ownership Risk and Adverse Possession Statutes," Land Economics, University of Wisconsin Press, vol. 77(3), pages 360-370.
    5. Turnbull, Geoffrey K., 1994. "Location and housing demand with endogenous consumption risk," Regional Science and Urban Economics, Elsevier, vol. 24(5), pages 543-563, October.
    6. Miceli, Thomas J. & Sirmans, C. F., 1995. "An economic theory of adverse possession," International Review of Law and Economics, Elsevier, vol. 15(2), pages 161-173, June.
    7. Dardanoni, Valentino, 1988. "Optimal Choices under Uncertainty: The Case of Two-Argument Utility Functions," Economic Journal, Royal Economic Society, vol. 98(391), pages 429-450, June.
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    Citations

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    Cited by:

    1. Brueckner, Jan K., 2013. "Urban squatting with rent-seeking organizers," Regional Science and Urban Economics, Elsevier, vol. 43(4), pages 561-569.
    2. Brueckner, Jan K. & Lall, Somik V., 2015. "Cities in Developing Countries," Handbook of Regional and Urban Economics, Elsevier.
    3. Cai,Yongyang & Selod,Harris & Steinbuks,Jevgenijs, 2015. "Urbanization and property rights," Policy Research Working Paper Series 7486, The World Bank.
    4. repec:eee:regeco:v:69:y:2018:i:c:p:38-47 is not listed on IDEAS
    5. Navarro, Ignacio & Turnbull, Geoffrey K., 2010. "Antichresis leases: Theory and empirical evidence from the Bolivian experience," Regional Science and Urban Economics, Elsevier, vol. 40(1), pages 33-44, January.
    6. A. Navarro, Ignacio & Turnbull, Geoffrey K., 2010. "The Legacy Effect of Squatter Settlements on Urban Redevelopment," WIDER Working Paper Series 025, World Institute for Development Economic Research (UNU-WIDER).
    7. Nilopa Shah, 2014. "Squatting On Government Land," Journal of Regional Science, Wiley Blackwell, vol. 54(1), pages 114-136, January.
    8. O'Flaherty, Brendan & Sethi, Rajiv, 2010. "The racial geography of street vice," Journal of Urban Economics, Elsevier, vol. 67(3), pages 270-286, May.
    9. Harris Selod & Lara Tobin, 2018. "The spatial sorting of informal dwellers in cities in developing countries: Theory and evidence," PSE Working Papers halshs-01703178, HAL.
    10. Ignacio Navarro & Geoffrey Turnbull, 2014. "Property Rights and Urban Development: Initial Title Quality Matters Even When it No Longer Matters," The Journal of Real Estate Finance and Economics, Springer, vol. 49(1), pages 1-22, July.

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