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A Theory of Urban Squatting and Land-Tenure Formalization in Developing Countries

  • Jan K. Brueckner
  • Harris Selod

This paper offers a new theoretical approach to urban squatting, reflecting the view that squatters and formal residents compete for land within a city. The key implication of this view is that squatters “squeeze” the formal market, raising the price paid by formal residents. The squatter organizer, however, ensures that this squeezing is not too severe, since otherwise the formal price will rise to a level that invites eviction by landowners (defensive expenditures by squatter households also help to forestall eviction). Because eviction is thus absent in equilibrium, the model differs crucially from previous analytical frameworks, where eviction occurs with some probability.

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File URL: http://www.cesifo-group.de/portal/page/portal/DocBase_Content/WP/WP-CESifo_Working_Papers/wp-cesifo-2008/wp-cesifo-2008-06/cesifo1_wp2328.pdf
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Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 2328.

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Date of creation: 2008
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Handle: RePEc:ces:ceswps:_2328
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  1. Lall, Somik V. & Lundberg, Mattias K.A. & Shalizi, Zmarak, 2008. "Implications of alternate policies on welfare of slum dwellers: Evidence from Pune, India," Journal of Urban Economics, Elsevier, vol. 63(1), pages 56-73, January.
  2. Friedman, Joseph & Jimenez, Emmanuel & Mayo, Stephen K., 1988. "The demand for tenure security in developing countries," Journal of Development Economics, Elsevier, vol. 29(2), pages 185-198, September.
  3. Erica Field, 2007. "Entitled to Work: Urban Property Rights and Labor Supply in Peru," The Quarterly Journal of Economics, MIT Press, vol. 122(4), pages 1561-1602, November.
  4. Lanjouw, J.O. & Levy, P.I., 1998. "Untitled: A Study of Formal and Informal Property Rights in Urban Ecuador," Papers 788, Yale - Economic Growth Center.
  5. Zenou, Yves & Boccard, Nicolas, 2000. "Racial Discrimination and Redlining in Cities," Journal of Urban Economics, Elsevier, vol. 48(2), pages 260-285, September.
  6. Jha, Saumitra & Rao, Vijayendra & Woolcock, Michael, 2005. "Governance in the gullies : democratic responsiveness and leadership in Delhi's slums," Policy Research Working Paper Series 3694, The World Bank.
  7. Field, Erica Marie, 2005. "Property Rights and Investment in Urban Slums," Scholarly Articles 3634150, Harvard University Department of Economics.
  8. Robert M. Buckley & Jerry Kalarickal, 2006. "Thirty Years of World Bank Shelter Lending : What Have We Learned?," World Bank Publications, The World Bank, number 7061.
  9. Zenou, Yves, 2002. "How Do Firms Redline Workers?," IZA Discussion Papers 607, Institute for the Study of Labor (IZA).
  10. SPINNEWYN, Frans & SVEJNAR, Jan, . "Optimal membership, employment, and income distribution in unionized and labor-managed firms," CORE Discussion Papers RP -929, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  11. Galiani, Sebastian & Schargrodsky, Ernesto, 2004. "Effects of land titling on child health," Economics & Human Biology, Elsevier, vol. 2(3), pages 353-372, December.
  12. Catherine Farvacque-Vitkovic & Lucien Godin & Hugues Leroux & Florence Verdet & Roberto Chavez, 2005. "Street Addressing and the Management of Cities," World Bank Publications, The World Bank, number 7342.
  13. Erica Field, 2005. "Property Rights and Investment in Urban Slums," Journal of the European Economic Association, MIT Press, vol. 3(2-3), pages 279-290, 04/05.
  14. Gilles Duranton, 2007. "From cities to productivity and growth in developing countries," Working Papers tecipa-306, University of Toronto, Department of Economics.
  15. 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.
  16. Jimenez, Emmanuel, 1985. "Urban squatting and community organization in developing countries," Journal of Public Economics, Elsevier, vol. 27(1), pages 69-92, June.
  17. Jimenez, Emmanuel, 1984. "Tenure Security and Urban Squatting," The Review of Economics and Statistics, MIT Press, vol. 66(4), pages 556-67, November.
  18. Rafael Di Tella & Sebastian Galiani & Ernesto Schargrodsky, 2007. "The Formation of Beliefs: Evidence from the Allocation of Land Titles to Squatters," The Quarterly Journal of Economics, MIT Press, vol. 122(1), pages 209-241, 02.
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