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The effect of a land titling programme on households’ access to credit

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  • Caio Piza
  • Mauricio José Serpa Barros de Moura

Abstract

This paper assesses the effects of property titling on households’ access to and use of credit by focusing on household responses to an exogenous change in their formal ownership status. We isolate the credit effect on legal ownership by comparing households from communities in Osasco, Brazil. Our statistical estimates suggest that land titling increases credit use, decreases reliance on credit borrowed from relatives, and increases credit borrowed from commercial banks. We also find that treated households increased their consumption of time-saving durable goods, which explains an observed reallocation of time among household members, with adults working more and children less.

Suggested Citation

  • Caio Piza & Mauricio José Serpa Barros de Moura, 2016. "The effect of a land titling programme on households’ access to credit," Journal of Development Effectiveness, Taylor & Francis Journals, vol. 8(1), pages 129-155, March.
  • Handle: RePEc:taf:jdevef:v:8:y:2016:i:1:p:129-155
    DOI: 10.1080/19439342.2015.1057859
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    References listed on IDEAS

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    1. 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.
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    Cited by:

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    3. Umar, Bridget Bwalya & Kaluma, Ketiwe & Kapembwa, Julius & Membele, Garikai Martin, 2023. "Does the evidence match the rhetoric? Post-formalization land investments and credit access in Zambia: Cases from informal settlements in Lusaka City region," Land Use Policy, Elsevier, vol. 129(C).
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    5. Shewakena Aytenfisu Abab & Feyera Senbeta & Tamirat Tefera Negash, 2023. "The Effect of Policy and Technological Innovations of Land Tenure on Small Landholders’ Credit-Worthiness: Evidence from Ethiopia," Land, MDPI, vol. 12(5), pages 1-19, May.

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