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

Nakamura, Shohei

World Bank, Washington, DC

关键词: THREAT OF EVICTION;    HOME OWNERSHIP;    URBAN LAND MANAGEMENT;    LOCAL POLITICIANS;    HOUSING UNITS;   

DOI  :  10.1596/1813-9450-7526
RP-ID  :  WPS7526

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

This paper estimates slum residentswillingness to pay for formalized land tenure in Pune,India. In so doing, it offers evidence that the legalassurance of slum residents occupancy of their lands couldbenefit them. Previous studies have discussed legal andnon-legal factors that substantially influence the tenuresecurity of residents in informal settlements. However, itremains unclear to what extent, and how, the assignment oflegal property rights through the formalization of landtenure improves the tenure security of residents in informalsettlements and living conditions, even in the presence ofother legal and non-legal factors that also contribute totheir tenure security. To address the question, this studyfocuses on the city of Pune, India, where governmentagencies have formalized slums by legally ensuring theoccupancy of the residents under slum declaration. Applyinga hedonic price model to an original household survey, thispaper investigates how slum residents evaluate formalizedland tenure. A spatial econometrics method is also appliedto account for spatially autocorrelated unobserved errors.The spatial hedonic analysis finds that the premium of slumdeclaration is worth 19 percent of the average housing rentin slums. The associated marginal willingness to pay isequivalent to 6 percent of the average householdexpenditure, although it is heterogeneous depending on ahouseholds caste and other legal conditions. This findingsuggests that the assurance of occupancy rights is a vitalcomponent of land-tenure formalization policy even if itdoes not directly provide full property rights.