Legal Heritage and Urban Slums

Posted: 15 Jun 2018

See all articles by Per G. Fredriksson

Per G. Fredriksson

University of Louisville - College of Business - Department of Economics; Institute for Corruption Studies

Satyendra Kumar Gupta

Jindal School of Goverment and Public Policy, JIndal Global University

Date Written: May 28, 2018

Abstract

This paper studies the effect of former colonies having inherited British common law vs. civil law on the incidence of slum dwelling in developing countries. While common law favors decentralized markets and stronger property rights, civil law yields more government regulation and weaker property rights. We find that that the common law legal origin is associated with a lower incidence of slum conditions. Property rights and the regulatory framework are two potential mechanisms through which legal origins influence urban slum formation. Finally, we find that the present-day effect of common law vs. civil law is weaker where the colonial administration was to a greater degree delegated to local chiefs (indirect rule). In sum, colonialism has persistent effects on the pattern of contemporary urban housing stocks in developing countries.

Keywords: legal origin, land use, regulation, property rights, urban slum, housing supply

JEL Classification: K15, O15, Q15, R14

Suggested Citation

Fredriksson, Per G. and Gupta, Satyendra Kumar, Legal Heritage and Urban Slums (May 28, 2018). Available at SSRN: https://ssrn.com/abstract=3187428

Per G. Fredriksson

University of Louisville - College of Business - Department of Economics ( email )

Louisville, KY 40292
United States

Institute for Corruption Studies

Stevenson Hall 425
Normal, IL 61790-4200
United States

Satyendra Kumar Gupta (Contact Author)

Jindal School of Goverment and Public Policy, JIndal Global University ( email )

Sonipat
Sonipat
Haryana, 124 001
India

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