Urbanization and Property Rights

Since the industrial revolution, the economic development of Western Europe and North America was characterized by continuous urbanization accompanied by a gradual phasing-in of urban land property rights over time. Today, however, the evidence in...

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Main Authors:	Cai, Yongyang, Selod, Harris, Steinbuks, Jevgenijs
Format:	Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2015
Subjects:	STATE LAW INSTITUTIONAL REFORMS EMPLOYMENT INSTITUTIONAL CHANGE CITY SIZE SQUATTERS LAND TRANSACTIONS LAND MARKET LOW-INCOME HOUSEHOLDS PROPERTY RIGHT LOCAL AUTHORITIES URBANIZATION WAGES URBAN GROWTH EXHIBITS PARTICIPATION INCOME INTEREST UTILITIES VALUE LAWS BANK URBAN CONGESTION INDUSTRY CREDIT MACROECONOMICS INSTITUTIONAL QUALITY LARGE CITIES LOCAL GOVERNMENTS STRATEGIES REPORTS POLITICAL ECONOMY HOUSING HOUSEHOLD CAPITALIZATION LAND PROPERTY PROPERTY URBAN LAND PRICING HABITAT TRANSACTION COSTS RURAL URBAN MIGRATION CITIES URBAN POOR LAND TENURE URBAN DEVELOPMENT ECONOMICS LAND PRICES LAND TITLE GOVERNANCE POVERTY REDUCTION TAXATION SLUMS SETTLEMENTS PRESENT VALUE PUBLIC POLICY LAND STATES LAND TITLING INCOME ELASTICITY RISK URBAN ECONOMY TRANSPORT RURAL AREAS FIXED COSTS PRODUCTIVITY EXTERNALITIES MIGRATION BUILDING CRITERIA MARKETS LEGISLATION FEES INSTITUTIONAL FRAMEWORK LABOR GOVERNMENTS URBAN POPULATION LAND VALUE LAND MANAGEMENT REAL ESTATE FINANCE ECONOMIC CONDITIONS PUBLIC LAND USE LAND ADMINISTRATION LAND GRABBERS
Online Access:	http://documents.worldbank.org/curated/en/2015/11/25260752/urbanization-property-rights http://hdl.handle.net/10986/23450

id	okr-10986-23450
recordtype	oai_dc
spelling	okr-10986-234502021-04-23T14:04:15Z Urbanization and Property Rights Cai, Yongyang Selod, Harris Steinbuks, Jevgenijs STATE LAW INSTITUTIONAL REFORMS EMPLOYMENT INSTITUTIONAL CHANGE CITY SIZE SQUATTERS LAND TRANSACTIONS LAND MARKET LOW-INCOME HOUSEHOLDS PROPERTY RIGHT LOCAL AUTHORITIES URBANIZATION WAGES URBAN GROWTH EXHIBITS PARTICIPATION INCOME INTEREST UTILITIES VALUE LAWS BANK URBAN CONGESTION INDUSTRY CREDIT MACROECONOMICS INSTITUTIONAL QUALITY LARGE CITIES LOCAL GOVERNMENTS STRATEGIES REPORTS POLITICAL ECONOMY HOUSING HOUSEHOLD CAPITALIZATION LAND PROPERTY PROPERTY URBAN LAND PRICING HABITAT TRANSACTION COSTS RURAL URBAN MIGRATION CITIES URBAN POOR LAND TENURE URBAN DEVELOPMENT ECONOMICS LAND PRICES LAND TITLE GOVERNANCE POVERTY REDUCTION TAXATION SLUMS SETTLEMENTS PRESENT VALUE PUBLIC POLICY LAND STATES LAND TITLING INCOME ELASTICITY RISK URBAN ECONOMY TRANSPORT RURAL AREAS FIXED COSTS PRODUCTIVITY EXTERNALITIES MIGRATION BUILDING CRITERIA MARKETS LEGISLATION FEES INSTITUTIONAL FRAMEWORK LABOR GOVERNMENTS URBAN POPULATION LAND VALUE LAND MANAGEMENT REAL ESTATE FINANCE ECONOMIC CONDITIONS PUBLIC LAND USE LAND ADMINISTRATION LAND GRABBERS Since the industrial revolution, the economic development of Western Europe and North America was characterized by continuous urbanization accompanied by a gradual phasing-in of urban land property rights over time. Today, however, the evidence in many fast urbanizing low-income countries points towards a different trend of “urbanization without formalization”, with potentially adverse effects on long-term economic growth. This paper aims to understand the causes and the consequences of this phenomenon, and whether informal city growth could be a transitory or a persistent feature of developing economies. A dynamic stochastic equilibrium model of a representative city is developed, which explicitly accounts for the joint dynamics of land property rights and urbanization. The calibrated baseline model describes a city that first grows informally, with the growth of individual incomes leading to a phased-in purchase of property rights in subsequent periods. The model demonstrates that land tenure informality does not necessarily vanish in the long term, and the social optimum does not necessarily imply a fully formal city, neither in the transition, nor in the long run. The welfare effects of policies, such as reducing the cost of land tenure formalization, or protecting informal dwellers against evictions are subsequently investigated, throughout the short-term transition and in the long-term stationary state. 2015-12-18T20:01:45Z 2015-12-18T20:01:45Z 2015-11 Working Paper http://documents.worldbank.org/curated/en/2015/11/25260752/urbanization-property-rights http://hdl.handle.net/10986/23450 English en_US Policy Research Working Paper;No. 7486 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	STATE LAW INSTITUTIONAL REFORMS EMPLOYMENT INSTITUTIONAL CHANGE CITY SIZE SQUATTERS LAND TRANSACTIONS LAND MARKET LOW-INCOME HOUSEHOLDS PROPERTY RIGHT LOCAL AUTHORITIES URBANIZATION WAGES URBAN GROWTH EXHIBITS PARTICIPATION INCOME INTEREST UTILITIES VALUE LAWS BANK URBAN CONGESTION INDUSTRY CREDIT MACROECONOMICS INSTITUTIONAL QUALITY LARGE CITIES LOCAL GOVERNMENTS STRATEGIES REPORTS POLITICAL ECONOMY HOUSING HOUSEHOLD CAPITALIZATION LAND PROPERTY PROPERTY URBAN LAND PRICING HABITAT TRANSACTION COSTS RURAL URBAN MIGRATION CITIES URBAN POOR LAND TENURE URBAN DEVELOPMENT ECONOMICS LAND PRICES LAND TITLE GOVERNANCE POVERTY REDUCTION TAXATION SLUMS SETTLEMENTS PRESENT VALUE PUBLIC POLICY LAND STATES LAND TITLING INCOME ELASTICITY RISK URBAN ECONOMY TRANSPORT RURAL AREAS FIXED COSTS PRODUCTIVITY EXTERNALITIES MIGRATION BUILDING CRITERIA MARKETS LEGISLATION FEES INSTITUTIONAL FRAMEWORK LABOR GOVERNMENTS URBAN POPULATION LAND VALUE LAND MANAGEMENT REAL ESTATE FINANCE ECONOMIC CONDITIONS PUBLIC LAND USE LAND ADMINISTRATION LAND GRABBERS
spellingShingle	STATE LAW INSTITUTIONAL REFORMS EMPLOYMENT INSTITUTIONAL CHANGE CITY SIZE SQUATTERS LAND TRANSACTIONS LAND MARKET LOW-INCOME HOUSEHOLDS PROPERTY RIGHT LOCAL AUTHORITIES URBANIZATION WAGES URBAN GROWTH EXHIBITS PARTICIPATION INCOME INTEREST UTILITIES VALUE LAWS BANK URBAN CONGESTION INDUSTRY CREDIT MACROECONOMICS INSTITUTIONAL QUALITY LARGE CITIES LOCAL GOVERNMENTS STRATEGIES REPORTS POLITICAL ECONOMY HOUSING HOUSEHOLD CAPITALIZATION LAND PROPERTY PROPERTY URBAN LAND PRICING HABITAT TRANSACTION COSTS RURAL URBAN MIGRATION CITIES URBAN POOR LAND TENURE URBAN DEVELOPMENT ECONOMICS LAND PRICES LAND TITLE GOVERNANCE POVERTY REDUCTION TAXATION SLUMS SETTLEMENTS PRESENT VALUE PUBLIC POLICY LAND STATES LAND TITLING INCOME ELASTICITY RISK URBAN ECONOMY TRANSPORT RURAL AREAS FIXED COSTS PRODUCTIVITY EXTERNALITIES MIGRATION BUILDING CRITERIA MARKETS LEGISLATION FEES INSTITUTIONAL FRAMEWORK LABOR GOVERNMENTS URBAN POPULATION LAND VALUE LAND MANAGEMENT REAL ESTATE FINANCE ECONOMIC CONDITIONS PUBLIC LAND USE LAND ADMINISTRATION LAND GRABBERS Cai, Yongyang Selod, Harris Steinbuks, Jevgenijs Urbanization and Property Rights
relation	Policy Research Working Paper;No. 7486
description	Since the industrial revolution, the economic development of Western Europe and North America was characterized by continuous urbanization accompanied by a gradual phasing-in of urban land property rights over time. Today, however, the evidence in many fast urbanizing low-income countries points towards a different trend of “urbanization without formalization”, with potentially adverse effects on long-term economic growth. This paper aims to understand the causes and the consequences of this phenomenon, and whether informal city growth could be a transitory or a persistent feature of developing economies. A dynamic stochastic equilibrium model of a representative city is developed, which explicitly accounts for the joint dynamics of land property rights and urbanization. The calibrated baseline model describes a city that first grows informally, with the growth of individual incomes leading to a phased-in purchase of property rights in subsequent periods. The model demonstrates that land tenure informality does not necessarily vanish in the long term, and the social optimum does not necessarily imply a fully formal city, neither in the transition, nor in the long run. The welfare effects of policies, such as reducing the cost of land tenure formalization, or protecting informal dwellers against evictions are subsequently investigated, throughout the short-term transition and in the long-term stationary state.
format	Working Paper
author	Cai, Yongyang Selod, Harris Steinbuks, Jevgenijs
author_facet	Cai, Yongyang Selod, Harris Steinbuks, Jevgenijs
author_sort	Cai, Yongyang
title	Urbanization and Property Rights
title_short	Urbanization and Property Rights
title_full	Urbanization and Property Rights
title_fullStr	Urbanization and Property Rights
title_full_unstemmed	Urbanization and Property Rights
title_sort	urbanization and property rights
publisher	World Bank, Washington, DC
publishDate	2015
url	http://documents.worldbank.org/curated/en/2015/11/25260752/urbanization-property-rights http://hdl.handle.net/10986/23450
_version_	1764453874988482560

Urbanization and Property Rights

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