Abstract
Normal 0 21 false false false MicrosoftInternetExplorer4 The Brazilian federal legislation on land subdivision approved in 1979 and its local implementation by municipalities contributed to increase housing informality from 1980 to 2000, a period of marked changes in the economic, demographic, and social scenarios. Econometric analysis of a cross-sectional and time-series panel of censuses data regarding insecure housing tenure suggests that regulations on land subdivision played an important role in the growth of housing informality in Brazil, regardless demographic and economic factors. This was most noticeable when local ordinances overregulated land subdivision parameters. We argue that stricter and more demanding requirements for approval and registration of land developments increased costs and risks for subdividing land formally within a scenario of economic downturn. This constrained formal land supply elasticity for the low-income housing demand which probably forced developers into informality to eliminate the costs and red tape involved in developing land formally.
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