The Legacy Effect of Squatter Settlements on Urban Redevelopment
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.
|Date of creation:||2010|
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- Galiani, Sebastian & Schargrodsky, Ernesto, 2010.
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- Sebastian Galiani & Ernesto Schargrodsky, 2010. "Property Rights for the Poor: Effects of Land Titling," CEDLAS, Working Papers 0103, CEDLAS, Universidad Nacional de La Plata.
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- 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.
- Sebastian Galiani & Ernesto Schargrodsky, 2004.
"Effects of Land Titling on Child Health,"
Research Department Publications
3184, Inter-American Development Bank, Research Department.
- Jimenez, Emmanuel, 1985. "Urban squatting and community organization in developing countries," Journal of Public Economics, Elsevier, vol. 27(1), pages 69-92, June.
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"Squatters' Rights and Urban Development: An Economic Perspective,"
London School of Economics and Political Science, vol. 58(229), pages 79-92, February.
- Hoy, M. & Jimenez, E., 1988. "Squatters' Right And Urban Development: An Economic Perspective," Working Papers 1988-14, University of Guelph, Department of Economics and Finance.
- Fujita, Masahisa, 1982. "Spatial patterns of residential development," Journal of Urban Economics, Elsevier, vol. 12(1), pages 22-52, July.
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