IDEAS home Printed from https://ideas.repec.org/p/luc/wpaper/23-09.html
   My bibliography  Save this paper

Customary Land Conversion in African Cities

Author

Listed:
  • Pierre M. Picard

    (DEM, Université du Luxembourg)

  • Harris Selod

    (The World Bank)

Abstract

We propose an urban land use model to discuss the conversion of customary agricultural land to formal and informal residential land in a developing country city. Because customary land sales are insecure, migrant buyers face a risk of eviction, which affects land markets in non-trivial ways. Both tenure risk and asymmetric information cause the city extent and population to be too small. Empirical tests of the model for Bamako, Mali, confirm the existence of tenure insecurity and information asymmetry in the primary but not in the secondary land market, consistently with information revelation after initial sales by customary holders.

Suggested Citation

  • Pierre M. Picard & Harris Selod, 2023. "Customary Land Conversion in African Cities," DEM Discussion Paper Series 23-09, Department of Economics at the University of Luxembourg.
  • Handle: RePEc:luc:wpaper:23-09
    as

    Download full text from publisher

    File URL: https://hdl.handle.net/10993/57039
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Thierry Bréchet & Pierre M. Picard, 2010. "The Price Of Silence: Markets For Noise Licenses And Airports," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 51(4), pages 1097-1125, November.
    2. Montgomery, W. David, 1972. "Markets in licenses and efficient pollution control programs," Journal of Economic Theory, Elsevier, vol. 5(3), pages 395-418, December.
    3. Jean O. Lanjouw & Philip I. Levy, 2002. "Untitled: A Study of Formal and Informal Property Rights in Urban Ecuador," Economic Journal, Royal Economic Society, vol. 112(482), pages 986-1019, October.
    4. Jan K. Brueckner, 2003. "Airline Traffic and Urban Economic Development," Urban Studies, Urban Studies Journal Limited, vol. 40(8), pages 1455-1469, July.
    5. Simeon Djankov & Edward L. Glaeser & Valeria Perotti & Andrei Shleifer, 2020. "Measuring Property Rights Institutions," NBER Working Papers 27839, National Bureau of Economic Research, Inc.
    6. Brueckner, Jan K. & Rabe, Claus & Selod, Harris, 2019. "Backyarding: Theory and evidence for South Africa," Regional Science and Urban Economics, Elsevier, vol. 79(C).
    7. Jan K. Brueckner & Harris Selod, 2009. "A Theory of Urban Squatting and Land-Tenure Formalization in Developing Countries," American Economic Journal: Economic Policy, American Economic Association, vol. 1(1), pages 28-51, February.
    8. R. H. Coase, 2013. "The Problem of Social Cost," Journal of Law and Economics, University of Chicago Press, vol. 56(4), pages 837-877.
    9. Schipper, Youdi, 2004. "Environmental costs in European aviation," Transport Policy, Elsevier, vol. 11(2), pages 141-154, April.
    10. McMillen, Daniel P., 2004. "Airport expansions and property values: the case of Chicago O'Hare Airport," Journal of Urban Economics, Elsevier, vol. 55(3), pages 627-640, May.
    11. Jimenez, Emmanuel, 1985. "Urban squatting and community organization in developing countries," Journal of Public Economics, Elsevier, vol. 27(1), pages 69-92, June.
    12. Zhang, Anming & Zhang, Yimin, 2001. "Airport charges and cost recovery: the long-run view," Journal of Air Transport Management, Elsevier, vol. 7(1), pages 75-78.
    13. Alves, Guillermo, 2021. "Slum growth in Brazilian cities," Journal of Urban Economics, Elsevier, vol. 122(C).
    14. Baumol,William J. & Oates,Wallace E., 1988. "The Theory of Environmental Policy," Cambridge Books, Cambridge University Press, number 9780521311120.
    15. Akaateba, Millicent Awialie, 2019. "The politics of customary land rights transformation in peri-urban Ghana: Powers of exclusion in the era of land commodification," Land Use Policy, Elsevier, vol. 88(C).
    16. Nilopa Shah, 2014. "Squatting On Government Land," Journal of Regional Science, Wiley Blackwell, vol. 54(1), pages 114-136, January.
    17. Andrea Baranzini & José V. Ramirez, 2005. "Paying for Quietness: The Impact of Noise on Geneva Rents," Urban Studies, Urban Studies Journal Limited, vol. 42(4), pages 633-646, April.
    18. Brueckner, Jan K., 2013. "Urban squatting with rent-seeking organizers," Regional Science and Urban Economics, Elsevier, vol. 43(4), pages 561-569.
    19. Girvin, Raquel, 2009. "Aircraft noise-abatement and mitigation strategies," Journal of Air Transport Management, Elsevier, vol. 15(1), pages 14-22.
    20. Klaus Deininger & Harris Selod & Anthony Burns, 2012. "The Land Governance Assessment Framework : Identifying and Monitoring Good Practice in the Land Sector," World Bank Publications - Books, The World Bank Group, number 2376.
    21. Macours, Karen & Janvry, Alain de & Sadoulet, Elisabeth, 2010. "Insecurity of property rights and social matching in the tenancy market," European Economic Review, Elsevier, vol. 54(7), pages 880-899, October.
    22. Ellerman,A. Denny & Joskow,Paul L. & Schmalensee,Richard & Montero,Juan-Pablo & Bailey,Elizabeth M., 2005. "Markets for Clean Air," Cambridge Books, Cambridge University Press, number 9780521023894.
    23. Morrison, Steven A & Winston, Clifford & Watson, Tara, 1999. "Fundamental Flaws of Social Regulation: The Case of Airplane Noise," Journal of Law and Economics, University of Chicago Press, vol. 42(2), pages 723-743, October.
    24. Ellerman,A. Denny & Joskow,Paul L. & Schmalensee,Richard & Montero,Juan-Pablo & Bailey,Elizabeth M., 2000. "Markets for Clean Air," Cambridge Books, Cambridge University Press, number 9780521660839.
    25. repec:dau:papers:123456789/10174 is not listed on IDEAS
    26. Baumol,William J. & Oates,Wallace E., 1988. "The Theory of Environmental Policy," Cambridge Books, Cambridge University Press, number 9780521322249.
    27. Besley, Timothy, 1995. "Property Rights and Investment Incentives: Theory and Evidence from Ghana," Journal of Political Economy, University of Chicago Press, vol. 103(5), pages 903-937, October.
    28. Cai, Yongyang & Selod, Harris & Steinbuks, Jevgenijs, 2018. "Urbanization and land property rights," Regional Science and Urban Economics, Elsevier, vol. 70(C), pages 246-257.
    29. Zhang, Anming & Zhang, Yimin, 2001. "Airport charges, economic growth, and cost recovery," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 37(1), pages 25-33, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Lucie Letrouit & Harris Selod, 2024. "Informal land markets and ethnic kinship in West African cities [Marchés fonciers informels et cousinage ethnique dans les villes d'Afrique de l'Ouest]," Post-Print hal-04525074, HAL.
    2. Letrouit, Lucie & Selod, Harris, 2024. "Informal land markets and ethnic kinship in West African cities," Regional Science and Urban Economics, Elsevier, vol. 106(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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.
    2. 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.
    3. Letrouit, Lucie & Selod, Harris, 2024. "Informal land markets and ethnic kinship in West African cities," Regional Science and Urban Economics, Elsevier, vol. 106(C).
    4. Lucie Letrouit & Harris Selod, 2024. "Informal land markets and ethnic kinship in West African cities [Marchés fonciers informels et cousinage ethnique dans les villes d'Afrique de l'Ouest]," Post-Print hal-04525074, HAL.
    5. Cai,Yongyang & Selod,Harris & Steinbuks,Jevgenijs, 2015. "Urbanization and property rights," Policy Research Working Paper Series 7486, The World Bank.
    6. Thierry Bréchet & Pierre M. Picard, 2010. "The Price Of Silence: Markets For Noise Licenses And Airports," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 51(4), pages 1097-1125, November.
    7. Stavins, Robert, 2001. "Lessons From the American Experiment With Market-Based Environmental Policies," RFF Working Paper Series dp-01-53, Resources for the Future.
    8. 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).
    9. Stavins, Robert, 2004. "Environmental Economics," Working Paper Series rwp04-051, Harvard University, John F. Kennedy School of Government.
    10. Stavins, Robert, 2003. "Market-Based Environmental Policies: What Can We Learn from U.S. Experience and Related Research?," Working Paper Series rwp03-031, Harvard University, John F. Kennedy School of Government.
    11. Revesz, Richard & Stavins, Robert, 2004. "Environmental Law and Policy," Working Paper Series rwp04-023, Harvard University, John F. Kennedy School of Government.
    12. Richard Schmalensee & Robert N. Stavins, 2019. "Policy Evolution under the Clean Air Act," Journal of Economic Perspectives, American Economic Association, vol. 33(4), pages 27-50, Fall.
    13. Jon Rezek & Benjamin F. Blair, 2005. "Abatement Cost Heterogeneity In Phase I Electric Utilities," Contemporary Economic Policy, Western Economic Association International, vol. 23(3), pages 324-340, July.
    14. 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.
    15. Akira Maeda, 2012. "Setting trigger price in emissions permit markets equipped with a safety valve mechanism," Journal of Regulatory Economics, Springer, vol. 41(3), pages 358-379, June.
    16. Akira Maeda, 2004. "Impact of banking and forward contracts on tradable permit markets," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 6(2), pages 81-102, June.
    17. Harris Selod & Lara Tobin, 2018. "The spatial sorting of informal dwellers in cities in developing countries: Theory and evidence," Working Papers halshs-01703178, HAL.
    18. Cai, Yongyang & Selod, Harris & Steinbuks, Jevgenijs, 2018. "Urbanization and land property rights," Regional Science and Urban Economics, Elsevier, vol. 70(C), pages 246-257.
    19. Brueckner, Jan K. & Rabe, Claus & Selod, Harris, 2019. "Backyarding: Theory and evidence for South Africa," Regional Science and Urban Economics, Elsevier, vol. 79(C).
    20. 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).

    More about this item

    Keywords

    Urbanization; Land Markets; Property Rights; Land Tenure Formalization; Market Failure.;
    All these keywords.

    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • P14 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Property Rights

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:luc:wpaper:23-09. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Marina Legrand (email available below). General contact details of provider: https://edirc.repec.org/data/crcrplu.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.