Acquiring land from traditional communities: bottlenecks, misallocation and second-best considerations
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Published version
Date
2023-02-01
Authors
Ghatak, Maitreesh
Mookherjee, Dilip
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Published version
OA Version
Citation
M. Ghatak, D. Mookherjee. 2023. "Acquiring Land from Traditional Communities: Bottlenecks, Misallocation and Second-Best Considerations" Oxford Open Economics, Volume 2. https://doi.org/10.1093/ooec/odad006
Abstract
We discuss reasons why traditional rural communities may be reluctant to voluntarily relinquish their access to land despite being compensated at market prices, thereby limiting the scope for reallocating land to more productive uses in agriculture or urban development. Owing to financial market imperfections, insurance and collateral benefits of land ownership imply that welfare-optimal land allocations may not maximize productive efficiency, even if distributive or environmental considerations are ignored. We provide some suggestive evidence and discuss implications for land acquisition policy.
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License
© The Author(s) 2023. Published by Oxford University Press. This is an Open Access article distributed under the terms of the Creative Commons Attribution License (https://creativecommons.org/licenses/by/4.0/), which permits unrestricted reuse, distribution, and reproduction in any medium, provided the original work is properly cited.