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Reverting to Informality Unregistered Property Transactions and the Erosion of the Titling Reform in Peru

Author

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  • Italo A. Gutierrez
  • Oswaldo Molina

Abstract

Titling programs have focused mostly on providing initial tenure security and have not properly addressed maintaining the formality of future property transactions. Our data indicates that properties become de-regularized due to unregistered transactions in urban slums, which threatens to undo the success of the titling program in the long run. We exploit a natural experiment provided by the elimination of a streamlined registration system targeted for the poor residents in Peru to identify how costly and burdensome registration policies can increase de-regularization. Our analysis indicated that the elimination of such a system led to a significant reduction in the probability of registering transactions, including those that involved a change in ownership. Overall, our findings stress the necessity of building specific components aimed at maintaining properties formal into the design of urban titling programs.

Suggested Citation

  • Italo A. Gutierrez & Oswaldo Molina, 2016. "Reverting to Informality Unregistered Property Transactions and the Erosion of the Titling Reform in Peru," Working Papers WR-1156-1, RAND Corporation.
  • Handle: RePEc:ran:wpaper:wr-1156-1
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    References listed on IDEAS

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    1. Michael R. Carter & Pedro Olinto, 2003. "Getting Institutions “Right” for Whom? Credit Constraints and the Impact of Property Rights on the Quantity and Composition of Investment," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(1), pages 173-186.
    2. Galiani, Sebastian & Schargrodsky, Ernesto, 2004. "Effects of land titling on child health," Economics & Human Biology, Elsevier, vol. 2(3), pages 353-372, December.
    3. Galiani, Sebastian & Schargrodsky, Ernesto, 2010. "Property rights for the poor: Effects of land titling," Journal of Public Economics, Elsevier, vol. 94(9-10), pages 700-729, October.
    4. Oswaldo Molina & Mans Söderbom, 2018. "Heterogeneous Effects of Property Rights on Housing Investment in Urban Peru," Working Papers 119, Peruvian Economic Association.
    5. 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.
    6. repec:bpj:maneco:v:3:y:2016:i:2:p:169-188:n:3 is not listed on IDEAS
    7. Rafael Di Tella & Sebastian Galiant & Ernesto Schargrodsky, 2007. "The Formation of Beliefs: Evidence from the Allocation of Land Titles to Squatters," The Quarterly Journal of Economics, Oxford University Press, vol. 122(1), pages 209-241.
    8. Vogl, Tom S., 2007. "Urban land rights and child nutritional status in Peru, 2004," Economics & Human Biology, Elsevier, vol. 5(2), pages 302-321, July.
    9. Field, Erica Marie, 2005. "Property Rights and Investment in Urban Slums," Scholarly Articles 3634150, Harvard University Department of Economics.
    10. Erica Field, 2007. "Entitled to Work: Urban Property Rights and Labor Supply in Peru," The Quarterly Journal of Economics, Oxford University Press, vol. 122(4), pages 1561-1602.
    11. Galiani Sebastian & Schargrodsky Ernesto, 2016. "The Deregularization of Land Titles," Man and the Economy, De Gruyter, vol. 3(2), pages 169-188, December.
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    Cited by:

    1. Oswaldo Molina & Mans Söderbom, 2018. "Heterogeneous Effects of Property Rights on Housing Investment in Urban Peru," Working Papers 119, Peruvian Economic Association.

    More about this item

    Keywords

    titling programs; registration; property transactions; property rights; natural experiment; Peru;

    JEL classification:

    • P14 - Economic Systems - - Capitalist Systems - - - Property Rights
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R20 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - General
    • R28 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Government Policy
    • K0 - Law and Economics - - General

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