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Untitled: A Study of Formal and Informal Property Rights in Urban Ecuador

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  • Jean O. Lanjouw

    (Yale University)

  • Philip I. Levy

    (Yale University)

Abstract

We explore the substitutability of formal and informal property rights using new survey data from Ecuador, where households have both formal and informal claims to urban residential property. We develop a model of property transactions that distinguishes between transferable and non--transferable claims, and show how this distinction affects the interpretation of hedonic price regressions. The unconditional effect of title is to raise properties" value by 23.5%. However, we also find that informal property rights can substitute effectively for formal property rights, and suggest that titling programmes should be targeted at young disorganised communities if they are to benefit the recipients. Copyright Royal Economic Society 2002

Suggested Citation

  • Jean O. Lanjouw & Philip I. Levy, 2002. "Untitled: A Study of Formal and Informal Property Rights in Urban Ecuador," Economic Journal, Royal Economic Society, vol. 112(482), pages 986-1019, October.
    • Handle: RePEc:ecj:econjl:v:112:y:2002:i:482:p:986-1019
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • K11 - Law and Economics - - Basic Areas of Law - - - Property Law

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