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Urban squatting with rent-seeking organizers

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  • Brueckner, Jan K.

Abstract

This paper extends a new line of research on urban squatting that focuses on the role of the squatter organizer. The model replaces the benevolent organizer in the model of Brueckner and Selod (2009) with competing, rent-seeking squatter organizers, a structure that may offer a realistic picture of many cities in less-developed countries. The analysis demonstrates that, compared to the benevolent case, rent-seeking behavior puts more land in the hands of squatters, leading to greater squeezing of the formal housing market, while extracting more defensive expenditures from each squatter household. Additional results show that competition among squatter organizers has much in common with competition in a traditional industry setting, while illustrating how changes in the squatting climate affect the equilibria.

Suggested Citation

  • Brueckner, Jan K., 2013. "Urban squatting with rent-seeking organizers," Regional Science and Urban Economics, Elsevier, vol. 43(4), pages 561-569.
    • Handle: RePEc:eee:regeco:v:43:y:2013:i:4:p:561-569
    DOI: 10.1016/j.regsciurbeco.2013.03.007
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    Cited by:

    1. M. Picard,Pierre & Selod,Harris, 2020. "Customary Land Conversion and the Formation of the African City," Policy Research Working Paper Series 9192, The World Bank.
    2. 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.
    3. Guedes, Ricardo & Iachan, Felipe S. & Sant’Anna, Marcelo, 2023. "Housing supply in the presence of informality," Regional Science and Urban Economics, Elsevier, vol. 99(C).
    4. Brueckner, Jan K. & Lall, Somik V., 2015. "Cities in Developing Countries," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 1399-1455, Elsevier.
    5. Letrouit,Lucie Michele Maya & Selod,Harris, 2020. "Trust or Property Rights ? Can Trusted Relationships Substitute for Costly Land Registration in West African Cities ?," Policy Research Working Paper Series 9310, The World Bank.
    6. Picard, Pierre M. & Selod, Harris, 2023. "Customary Land Conversion in African Cities," IZA Discussion Papers 16462, Institute of Labor Economics (IZA).
    7. Cai,Yongyang & Selod,Harris & Steinbuks,Jevgenijs, 2015. "Urbanization and property rights," Policy Research Working Paper Series 7486, The World Bank.
    8. Yan, Jinming & Zhang, Dongsheng & Xia, Fangzhou, 2021. "Evaluation of village land use planning risks in green concepts: The case of Qiwangfen Village in Beijing," Land Use Policy, Elsevier, vol. 104(C).
    9. Hawley, Zackary & Miranda, Juan José & Sawyer, W. Charles, 2018. "Land values, property rights, and home ownership: Implications for property taxation in Peru," Regional Science and Urban Economics, Elsevier, vol. 69(C), pages 38-47.
    10. Brueckner, Jan K. & Rabe, Claus & Selod, Harris, 2019. "Backyarding: Theory and evidence for South Africa," Regional Science and Urban Economics, Elsevier, vol. 79(C).
    11. Brueckner, Jan K. & Mation, Lucas & Nadalin, Vanessa G., 2019. "Slums in Brazil: Where are they located, who lives in them, and do they ‘squeeze’ the formal housing market?," Journal of Housing Economics, Elsevier, vol. 44(C), pages 48-60.
    12. Celhay, Pablo & Undurraga, Raimundo, 2022. "Location Preferences and Slums Formation: Evidence from a Panel of Residence Histories," Regional Science and Urban Economics, Elsevier, vol. 97(C).
    13. Cai, Yongyang & Selod, Harris & Steinbuks, Jevgenijs, 2018. "Urbanization and land property rights," Regional Science and Urban Economics, Elsevier, vol. 70(C), pages 246-257.
    14. 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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    More about this item

    Keywords

    Squatting; Rent-seeking; Urbanization;
    All these keywords.

    JEL classification:

    • R20 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - General
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General

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