The dynamic effects of land title systems

The question of title concerns which specific individual enjoys the property rights to a particular parcel of land when there are competing claims. This paper examines how the title system affects urban development in a market economy. It considers two alternative title systems, recording and registration. Both hasten the development pace relative to the social planner benchmark, but the registration system is generally closer than the recording system to the benchmark. The effects of the two systems on the capital-land ratio depend on whether the demanded capital-land density is rising or falling over time. (C) 2000 Academic Press.