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Peer effects in the demand for property rights : experimental evidence from urban Tanzania

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  • Collin,Matthew Edward

Abstract

This paper investigates the presence of endogenous peer effects in the adoption of formal property rights. Using data from a unique land titling experiment held in an unplanned settlement in Dar es Salaam, the analysis finds a strong, positive impact of neighbor adoption on the household's choice to purchase a land title. The paper also shows that this relationship holds in a separate, identical experiment held a year later in a nearby community, as well as in administrative data for more than 160,000 land parcels in the same city. Although the exact channel is undetermined, the evidence points toward complementarities in the reduction in expropriation risk, as peer effects are strongest between households living close to each other and there is some evidence that peer effects are strongest for households most concerned with expropriation. The results show that, within the Tanzanian context, households will reinforce each other?s decisions to enter formal tenure systems.

Suggested Citation

  • Collin,Matthew Edward, 2017. "Peer effects in the demand for property rights : experimental evidence from urban Tanzania," Policy Research Working Paper Series 8163, The World Bank.
    • Handle: RePEc:wbk:wbrwps:8163
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    Cited by:

    1. Bet Caeyers, 2014. "Peer effects in development programme awareness of vulnerable groups in rural Tanzania," CSAE Working Paper Series 2014-11, Centre for the Study of African Economies, University of Oxford.
    2. Bet Caeyers, 2014. "Exclusion bias in empirical social interaction models: causes, consequences and solutions," CSAE Working Paper Series 2014-05, Centre for the Study of African Economies, University of Oxford.
    3. Matthew Collin, 2013. "Tribe or title? Ethnic enclaves and the demand for formal land tenure in a Tanzanian slum," CSAE Working Paper Series 2013-12, Centre for the Study of African Economies, University of Oxford.

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