Tenure Security Premium in Informal Housing Markets : A Spatial Hedonic Analysis

This paper estimates slum residents’ willingness to pay for formalized land tenure in Pune, India. The results show that the legal assurance of slum residents’ occupancy of their lands could benefit them. Previous studies have discussed the legal and non-legal factors that substantially influence th...

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Main Author:	Nakamura, Shohei
Format:	Journal Article
Published:	Elsevier 2018
Subjects:	SLUMS URBAN HOUSING PROPERTY RIGHTS SPATIAL ECONOMICS HEDONIC MODEL LAND TENURE
Online Access:	http://hdl.handle.net/10986/29133

id	okr-10986-29133
recordtype	oai_dc
spelling	okr-10986-291332021-05-25T10:54:42Z Tenure Security Premium in Informal Housing Markets : A Spatial Hedonic Analysis Nakamura, Shohei SLUMS URBAN HOUSING PROPERTY RIGHTS SPATIAL ECONOMICS HEDONIC MODEL LAND TENURE This paper estimates slum residents’ willingness to pay for formalized land tenure in Pune, India. The results show that the legal assurance of slum residents’ occupancy of their lands could benefit them. Previous studies have discussed the legal and non-legal factors that substantially influence the tenure security of residents in informal settlements; however, it remains unclear how and to what extent the assignment of legal property rights through the formalization of land tenure improves the tenure security of residents in informal settlements and living conditions, even in the presence of other legal and non-legal factors that also contribute to their tenure security. To address this question, this study focuses on the city of Pune, India, where government agencies have formalized slums by legally ensuring the occupancy of the residents under the “slum declaration.” Applying a hedonic price model to an original household survey, this paper investigates how slum residents evaluate formalized land tenure. A spatial econometrics method is also applied to account for spatial dependence and spatially autocorrelated unobserved errors. The spatial hedonic analysis shows that the premium of slum declaration is worth 19.2% of the average housing rent in slums. The associated marginal willingness to pay is equivalent to 6.7% of the average household expenditure, although it is heterogeneous depending on a household’s caste and other legal conditions. This finding suggests that the assurance of occupancy rights is a vital component of land-tenure formalization policy even if it does not directly provide full property rights. 2018-01-10T18:00:33Z 2018-01-10T18:00:33Z 2017-01 Journal Article World Development 0305-750X http://hdl.handle.net/10986/29133 CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Elsevier Publications & Research :: Journal Article Publications & Research South Asia India
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
topic	SLUMS URBAN HOUSING PROPERTY RIGHTS SPATIAL ECONOMICS HEDONIC MODEL LAND TENURE
spellingShingle	SLUMS URBAN HOUSING PROPERTY RIGHTS SPATIAL ECONOMICS HEDONIC MODEL LAND TENURE Nakamura, Shohei Tenure Security Premium in Informal Housing Markets : A Spatial Hedonic Analysis
geographic_facet	South Asia India
description	This paper estimates slum residents’ willingness to pay for formalized land tenure in Pune, India. The results show that the legal assurance of slum residents’ occupancy of their lands could benefit them. Previous studies have discussed the legal and non-legal factors that substantially influence the tenure security of residents in informal settlements; however, it remains unclear how and to what extent the assignment of legal property rights through the formalization of land tenure improves the tenure security of residents in informal settlements and living conditions, even in the presence of other legal and non-legal factors that also contribute to their tenure security. To address this question, this study focuses on the city of Pune, India, where government agencies have formalized slums by legally ensuring the occupancy of the residents under the “slum declaration.” Applying a hedonic price model to an original household survey, this paper investigates how slum residents evaluate formalized land tenure. A spatial econometrics method is also applied to account for spatial dependence and spatially autocorrelated unobserved errors. The spatial hedonic analysis shows that the premium of slum declaration is worth 19.2% of the average housing rent in slums. The associated marginal willingness to pay is equivalent to 6.7% of the average household expenditure, although it is heterogeneous depending on a household’s caste and other legal conditions. This finding suggests that the assurance of occupancy rights is a vital component of land-tenure formalization policy even if it does not directly provide full property rights.
format	Journal Article
author	Nakamura, Shohei
author_facet	Nakamura, Shohei
author_sort	Nakamura, Shohei
title	Tenure Security Premium in Informal Housing Markets : A Spatial Hedonic Analysis
title_short	Tenure Security Premium in Informal Housing Markets : A Spatial Hedonic Analysis
title_full	Tenure Security Premium in Informal Housing Markets : A Spatial Hedonic Analysis
title_fullStr	Tenure Security Premium in Informal Housing Markets : A Spatial Hedonic Analysis
title_full_unstemmed	Tenure Security Premium in Informal Housing Markets : A Spatial Hedonic Analysis
title_sort	tenure security premium in informal housing markets : a spatial hedonic analysis
publisher	Elsevier
publishDate	2018
url	http://hdl.handle.net/10986/29133
_version_	1764468576679362560

Tenure Security Premium in Informal Housing Markets : A Spatial Hedonic Analysis

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