Abstract
The paper examines the claim that a virtuous cycle of more secure land rights, more land-saving investments, and denser populations requires the development of institutions that regulate competition over land. We construct a contest model that links the tenure-security-investment relationship to the efforts of land users to enhance land rights themselves and the role of institutional protection. We study the effect of population growth on a close-to-subsistence economy, including the possibility that it weakens institutional protection. We derive sufficient conditions for a positive effect on land investment, but also show that population growth can push the economy into a low-productivity trap.
Original language | English |
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Pages (from-to) | 312-350 |
Number of pages | 39 |
Journal | Journal of Institutional and Theoretical Economics |
Volume | 176 |
Issue number | 2 |
Early online date | 16 Mar 2020 |
DOIs | |
Publication status | Published - Jun 2020 |
Keywords
- Contest model
- Institutions
- Land investment
- Land-rights protection
- Population growth