Land titling and its effect on the allocation of public goods: Evidence from Mexico

Abstract

Abstract In this paper, I study the effect of land ownership reforms in the allocation of local public goods in rural Mexico. I estimate the impact of acquiring dominio pleno, the private ownership of areas of land known as ejidos, on the allocation of local public goods (i.e., piped water and electricity). Using a first-differences matching estimator, I show that private property rights can be associated with lower growth of local public goods. During the period I study, there is lower growth in the percentage of households with access to water and electricity in dominio pleno ejidos. I suggest that this result is explained by a deteriorated role of the ejido leader, which is consistent with lower turnout rates in municipal elections observed in these areas.