Land Ownership Risk and Urban Development

22 Pages Posted: 12 Apr 2003

See all articles by Thomas J. Miceli

Thomas J. Miceli

University of Connecticut - Department of Economics

C. F. Sirmans

Florida State University - Department of Risk Management, Insurance, Real Estate & Business Law

Geoffrey K. Turnbull

Georgia State University - Department of Economics

Abstract

Under certainty, unlimited duration of private ownership of land provides landowners with efficient development incentives. However, in cases of ownership risk arising from title mistakes, fraud, boundary encroachment, or adverse possession, the statute of limitations sets a limit on how long agents have to establish or defend an ownership claim. This paper demonstrates that such restrictions speed the pace of land development and systematically affect the development density according to site location in the urban land market. It also offers an explanation of why land owners prefer a time limit on the ability to defend their ownership. It shows that the value-maximizing statute varies across sites in the spatial market.

Suggested Citation

Miceli, Thomas J. and Sirmans, C. F. and Turnbull, Geoffrey K., Land Ownership Risk and Urban Development. Journal of Regional Science, Vol. 43, pp. 73-94, 2003. Available at SSRN: https://ssrn.com/abstract=388549

Thomas J. Miceli (Contact Author)

University of Connecticut - Department of Economics ( email )

365 Fairfield Way, U-1063
Storrs, CT 06269-1063
United States
860-486-5810 (Phone)
860-486-4463 (Fax)

C. F. Sirmans

Florida State University - Department of Risk Management, Insurance, Real Estate & Business Law ( email )

Tallahasse, FL 32306
United States
850 644-4076 (Phone)

HOME PAGE: http://www.cob.fsu.edu/rmi

Geoffrey K. Turnbull

Georgia State University - Department of Economics ( email )

P.O. Box 3992
Atlanta, GA 30302-3992
United States
404-651-0419 (Phone)
404-651-2737 (Fax)

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