Tenure insecurity, adverse selection, and liquidity in rural land markets

Arbeitspapier

A theory of land market activity is developed for settings where there is uncertainty and private information about the security of land tenure. Land sellers match with buyers in a competitive search environment, and an illiquid land market emerges as a screening mechanism. As a consequence, adverse selection and an insecure system of property rights stifle land market transactions. The implications of the theory are tested using household level data from Indonesia. As predicted, formally titled land is more liquid than untitled land in the sense that ownership rights are more readily transferable. Additional implications of the theory are verified empirically by constructing a proxy variable for land tenure security and studying the differences between markets for unregistered land across Indonesian provinces. Regional land market activity is appropriately linked to the distribution of the proxy variable.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Queen's Economics Department Working Paper ; No. 1269

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Organizational Behavior; Transaction Costs; Property Rights ; Search; Learning; Information and Knowledge; Communication; Belief; Unawareness ; Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment ; Urban, Rural, Regional, Real Estate, and Transportation Economics: Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics
• Thema: Competitive Search ; Land Markets ; Tenure Security ; Liquidity ; Bodenmarkt ; Eigentumsrecht ; Pacht ; Risiko ; Adverse Selektion ; Indonesien

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Stacey, Derek
• Ereignis: Veröffentlichung
• (wer): Queen's University, Department of Economics
• (wo): Kingston (Ontario)
• (wann): 2011

Weitere Informationen

• Handle: http://hdl.handle.net/10419/67800
• Letzte Aktualisierung: 20.09.2024, 08:21 MESZ