Abstract

Government intervention providing infrastructure or controlling urban development irregularly across different areas of the city can distort land prices reinforcing or inducing mechanisms of spatial exclusion. This paper presents estimates of the effects on land prices of state-provided infrastructure, property titles, and controls on urban development. The results show that infrastructure and planning controls impose the highest effects on residential land prices, overwhelming the effects of other variables such as titles or plot size. Nonetheless, improvements on the access of poor people to the formal city through regularization policies can play an important role in balancing land prices overall city.

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