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The Legacy Effect of Squatter Settlements on Urban Redevelopment

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  • A. Navarro, Ignacio
  • Turnbull, Geoffrey K.

Abstract

The paper presents a theoretical model that seeks to answer the question of why former squatter settlements tend to upgrade/redevelop at a slower pace than otherwise similar settlements originating in the formal sector. We argue that squatter settlers’ initial strategy to access urban land creates a ‘legacy effect’ that curtails settlement upgrading possibilities even after the settlements are granted property titles. We test our model using the case of Cochabamba, Bolivia and obtain results consistent with our theoretical model prediction. Our results suggest that the commonly used ‘benign neglect while keeping the threat of eviction’ policy has profound impacts on how land is developed in the informal sector and this poses costly consequences for local governments after legalization.

Suggested Citation

  • 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).
  • Handle: RePEc:unu:wpaper:wp2010-25
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    File URL: http://www.wider.unu.edu/sites/default/files/wp2010-25.pdf
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    References listed on IDEAS

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    1. Jimenez, Emmanuel, 1985. "Urban squatting and community organization in developing countries," Journal of Public Economics, Elsevier, vol. 27(1), pages 69-92, June.
    2. Wheaton, William C., 1982. "Urban spatial development with durable but replaceable capital," Journal of Urban Economics, Elsevier, vol. 12(1), pages 53-67, July.
    3. Anderson, John E., 1986. "Property taxes and the timing of urban land development," Regional Science and Urban Economics, Elsevier, vol. 16(4), pages 483-492, November.
    4. 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.
    5. Galiani, Sebastian & Schargrodsky, Ernesto, 2004. "Effects of land titling on child health," Economics & Human Biology, Elsevier, vol. 2(3), pages 353-372, December.
    6. 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.
    7. Turnbull, Geoffrey K., 2008. "Squatting, eviction and development," Regional Science and Urban Economics, Elsevier, vol. 38(1), pages 1-15, January.
    8. Geoffrey Turnbull, 2005. "The Investment Incentive Effects of Land Use Regulations," The Journal of Real Estate Finance and Economics, Springer, vol. 31(4), pages 357-395, December.
    9. Fujita, Masahisa, 1982. "Spatial patterns of residential development," Journal of Urban Economics, Elsevier, vol. 12(1), pages 22-52, July.
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    Cited by:

    1. Samwel Alananga, 2017. "The value of formal titles to ownership in residential property transactions: Evidence from Kinondoni municipality Tanzania," ERES eres2017_19, European Real Estate Society (ERES).

    More about this item

    Keywords

    squatters; informal settlements; urban development; neighbourhood upgrading; urban redevelopment;

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